1 - Town Council
December 10, 2025

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11/09/2025 Charles Weakley Digitally signed by Charles
Weakley
Date: 2025.11.09 08:18:40 -08'00'
✔
Charles Weakley
President
Mountain Pacific Surveys
B-11
119
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Consultant Management Conflict of Interest Statement

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Principal
Principal -
Project
Manager
Senior Project CADD Technician Clerical Expenses Total Subconsultant Fee Total Fee & Expenses Estimate # Hrs @ # Hrs @ # Hrs @ # Hrs @ # Hrs @ # Hrs @
$350 $350 $235 $215 $160 $120
Task 3.1 Project Management 12 42 12 40 8 15 129 33,400 $ 200 $ 33,600 $

3.1.1 Meetings, Consultations, and Project Management 12 42 12 40 8 15 129 33,400 $ 200 $ 33,600 $ Task 3.2 Preliminary Engineering 22 21 108 54 12 3 214 54,320 $ 800 $ 11,000 $ 44,638 $ 55,638 $ 110,758 $

3.2.1 Data Collection/Review and Field Reconnaissance 10 8 28 8 54 14,600 $ 400 $ 15,000 $

3.2.2 Topographic Survey 2 4 6 1,070 $ 50 $ 11,000 $ 11,000 $ 12,120 $ 3.2.3 Preliminary H&H Analysis 4 1 64 10 2 81 19,180 $ 200 $ 19,380 $

3.2.4 Preliminary Engineering Concept and Costing 8 8 16 32 8 1 73 17,640 $ 100 $ 17,740 $

3.2.5 Geotechnical Investigation 4 2 1,830 $ 50 $ 44,638 $ 44,638 $ 46,518 $ Task 3.3 3.3.1 Environmental Documentation 39 108 16 284 16 463 89,830 $ 4,900 $ 94,730 $

3.3.1.1 Notice of Exemption 2 4 6 1,340 $ 750 $ 2,090 $ 3.3.1.2 PES/Categorical Exclusion 10 14 40 4 68 13,670 $ 750 $ 14,420 $ 3.3.1.3 Natural Environmental Study 4 16 4 40 2 66 12,660 $ 2,500 $ 15,160 $

3.3.1.4 Section 106 Cultural Report 1 10 40 2 53 9,340 $ 400 $ 9,740 $

3.3.1.5 Aquatic Resources Delineation 4 20 6 40 2 72 14,030 $ 200 $ 14,230 $

3.3.2 Regulatory Agency Coordination

3.3.2.1 CVRWQCB Section 401 Water Quality Certification 6 16 2 36 2 62 12,290 $ 100 $ 12,390 $ 3.3.2.2 CDFW 1600 Application 6 16 2 44 2 70 13,570 $ 100 $ 13,670 $ 3.3.2.3 USACE Section 404 Nationwide Permit Application 6 16 2 40 2 66 12,930 $ 100 $ 13,030 $ Task 3.4 Right of Way and Utility Coordination 2 20 24 28 2 76 17,580 $ 250 $ 17,830 $

3.4.1 Right of Way Determination 4 4 1,400 $ 50 $ 1,450 $

3.4.2 Plats and Legal Descriptions 0- $ $ -

3.4.3 Right of Way Summary Report 4 20 24 4,600 $ 100 $ 4,700 $

3.4.4 Right of Way Certification 2 8 24 34 8,660 $ 50 $ 8,710 $

3.4.5 Utility Coordination 4 8 2 14 2,920 $ 50 $ 2,970 $ Task 3.5 Plans, Specifications & Estimate 32 46 64 140 142 10 388 96,360 $ 500 $ 96,860 $

3.5.1 Plan-set (30% Plans) 4 8 4 18 30 2 66 14,050 $ 100 $ 14,150 $

3.5.2 Plan-set (60% Plans) 8 16 4 32 48 2 110 24,140 $ 100 $ 24,240 $

3.5.3 Plan-set (90% Plans) 8 12 2 24 40 2 88 19,270 $ 100 $ 19,370 $

3.5.4 100% Plans, Specification and Estimate 4 4 2 16 24 2 52 10,790 $ 100 $ 10,890 $

3.5.5 Final Hydraulic Design and Reporting 6 2 52 10 2 72 17,410 $ 50 $ 17,460 $

3.5.6 E-76 for Construction 2 4 40 10,700 $ 50 $ 10,750 $ Task 3.6 Bidding Support 2 8 16 26 6,940 $ 100 $ 7,040 $

3.6.1 Bidding Support Services 2 8 16 26 6,940 $ 100 $ 7,040 $ Task 3.7 Construction Support 4 20 32 56 15,280 $ 200 $ 15,480 $

3.7.1 Construction Support Services 4 20 32 56 15,280 $ 200 $ 15,480 $ Task 3.8 QA/QC 2 8 10 3,500 $ 4,400 $ 4,400 $ 7,900 $

3.8.1 QA/QC for PS&E and FHWA/Caltrans compliance 2 8 10 3,500 $ $ 4,400 $ 7,900 4,400 $ Total 115 165 292 322 474 46 1,362 $ 317,210 $ 6,950 $ 11,000 $ 49,038 $ 60,038 $ 384,198 Town of Moraga Canyon Road Culvert Replacement Project NCE Totals Subconsultants Hours Fee MPS MGE
Town of Moraga Public Works Department/Engineering Division Engineering Design Services, Canyon Road Culvert Replacement Project (CIP 23-201 & ER – 15J9(193)) Fee Estimate
November 13, 2025
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CONSULTANT SERVICES CONTRACT
(For Local Assistance Federal-aid Projects)
Project: Canyon Road Sinkhole Repair and Culvert Replacement Project (CIP 23-201 and ER-15J9)
THIS CONSULTANT SERVICES CONTRACT (the “contract”) is entered into as of the 10 day of December 2025 by and between the TOWN OF MORAGA, herein called the “TOWN”, and NCE, herein called the “CONSULTANT”.

Recitals
A. TOWN desires to obtain professional consultant services in connection with the Canyon Road Sinkhole Repair and Culvert Replacement Project (CIP 23-201 and ER-15J9).

B. CONSULTANT hereby warrants to the TOWN that CONSULTANT is skilled and able to provide such services described in this contract.

C. TOWN desires to retain CONSULTANT pursuant to this contract to provide the services described herein.

Agreement
NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:

ARTICLE I.

INTRODUCTION
A. This contract is between the following named, hereinafter referred to as, CONSULTANT and the following named, hereinafter referred to as, TOWN:

The name of the “CONSULTANT” is as follows: NCE, Incorporated in the State of California
The Project Manager for the “CONSULTANT” will be J. Ryan Shafer, Principal in Charge
The name of the “TOWN” is as follows:

Town of Moraga, a California municipal corporation
The Contract Administrator for TOWN will be Nate Levine, Interim Public Works Director/Town Engineer or their designee.

The work to be performed under this contract is described in Article II entitled Statement of Work and the approved CONSULTANT’s Cost Proposal dated November 122
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13, 2025. The approved CONSULTANT’s Cost Proposal is attached hereto (Attachment I) and incorporated by reference. If there is any conflict between the approved Cost Proposal and this contract, this contract shall take precedence.

B. To the fullest extent permitted by law (including, without limitation, California Civil Code §§2782 and 2872.8), CONSULTANT agrees to the fullest extent permitted by law, to indemnify, protect, defend, and hold harmless TOWN, its officers, officials, agents, employees and volunteers from and against any and all claims, damages, demands, liability, costs, losses and expenses, including without limitation, court costs and reasonable attorneys’ and expert witness fees, arising out of any failure to comply with applicable law, any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise arising out of the performance of the work described herein, to the extent caused by a negligent act or negligent failure to act, errors, omissions, recklessness or willful misconduct incident to the performance of this contract on the part of CONSULTANT, except such loss or damage which was caused by the sole negligence, or willful misconduct of TOWN, as determined by a Court of competent jurisdiction. The provisions of this section shall survive termination or suspension of this contract. In the event that CONSULTANT executes any subconsulting agreements in connection with the services performed under this contract, CONSULTANT shall place in all such subconsulting agreements, and require its subconsultants to be bound to, CONSULTANT’s indemnity and insurance obligations under this contract, in the form and substance of those contained in this contract.

C. CONSULTANT shall at all times be deemed an independent contractor wholly responsible for the manner in which it performs the work and services under this contract, and fully liable for the acts and omissions of its employees, subconsultants and agents. Under no circumstances shall this contract be construed as creating an employment, agency, joint venture, or partnership relationship between TOWN and CONSULTANT, and no such relationship shall be implied from performance of this contract. Terms in this contract referring to direction from TOWN shall be construed as providing for direction as to policy and the result of services only, and not as to means and methods by which such a result is obtained. CONSULTANT shall pay all taxes (including California sales and use taxes) levied upon this contract, the transaction, or the services performed without additional compensation, regardless of which party has liability for such tax under applicable law, and any deficiency, interest or penalty asserted with respect thereto. Without the written consent of TOWN, this contract is not assignable by CONSULTANT either in whole or in part.

D. TOWN is not required to make any deductions or withholdings from the compensation payable to CONSULTANT under the provisions of the contract, and is not required to issue W-2 Forms for income and employment tax purposes for any of CONSULTANT's assigned personnel. CONSULTANT, in the 123
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performance of its obligation hereunder, is only subject to the control or direction of the TOWN as to the designation of tasks to be performed and the results to be accomplished.

E. Any third party person(s) employed by CONSULTANT shall be entirely and exclusively under the direction, supervision, and control of CONSULTANT.

CONSULTANT hereby indemnifies and holds TOWN harmless from any and all claims that may be made against City based upon any contention by any third party that an employer-employee relationship exists by reason of this contract.

F. Except as expressly authorized herein, CONSULTANT's obligations under this contract are not assignable or transferable, and CONSULTANT shall not subcontract any work, without the prior written approval of the TOWN. However, claims for money due or which become due to CONSULTANT from City under this contract may be assigned to a financial institution or to a trustee in bankruptcy, without such approval. Notice of any assignment or transfer whether voluntary or involuntary shall be furnished promptly to the TOWN.

G. CONSULTANT shall be as fully responsible to the TOWN for the negligent acts and omissions of its contractors and subcontractors or subconsultants, and of persons either directly or indirectly employed by them, in the same manner as persons directly employed by CONSULTANT.

H. No alteration or variation of the terms of this contract shall be valid, unless made in writing and signed by the parties hereto; and no oral understanding or agreement not incorporated herein, shall be binding on any of the parties hereto.

I. The consideration to be paid to CONSULTANT as provided herein, shall be in compensation for all of CONSULTANT’s expenses incurred in the performance hereof, including travel and per diem, unless otherwise expressly so provided.

J. CONSULTANT represents and warrants that it has the qualifications, experience and facilities necessary to properly perform the services required under this contract in a thorough, competent and professional manner. CONSULTANT shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein. In meeting its obligations under this contract, CONSULTANT shall employ, at a minimum, generally accepted standards and practices utilized by persons in the same or similar geographical area engaged in providing services similar to those required of CONSULTANT under this contract
K. CONSULTANT shall keep itself informed of and comply with all applicable federal, state and local laws, statutes, codes, ordinances, regulations and rules in effect during the term of this contract. CONSULTANT shall obtain any and all licenses, permits and authorizations necessary to perform the services set forth in this contract. Neither TOWN, nor any elected or appointed boards, officers, officials, employees or agents of TOWN, shall be liable, at law or in equity, as a 124
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result of any failure of CONSULTANT to comply with these requirements.

ARTICLE II.

STATEMENT OF WORK
A. Consultant Services

3. Project Understanding and Technical Approach

3.1 Project Understanding
NCE understands that in 2023, a 60-inch CMP crossing Canyon Road was damaged during high stormwater flows, which resulted in partial roadway failure and reduced drainage capacity. Following the storm event, Contra Costa County secured funding through the FHWA ER Program. Subsequent to the approval of that funding, it was determined that the project site was the responsibility of the Town of Moraga, and revised Damage Assessment Forms were created to transfer the Permanent Repair funding to the Town.

The Town is seeking an experienced consultant to provide engineering and environmental services to replace the existing culvert with a similar-sized reinforced concrete pipe (RCP) and restore the roadway structure and surface, including the construction of a concrete headwall at the entrance of the culvert and placement of rock slope protection at the culvert outfall to prevent future erosion. All design elements and environmental clearances need to be in accordance with the FHWA ER Manual and the Caltrans LAPM.

The scope of services anticipated by the Town includes:
• Engineering Design, to include topographic mapping, right-of-way determination, geotechnical investigations, hydrologic and hydraulic analyses, utility coordination (if any), and preparation of a complete plans, specifications, and estimates (PS&E) package
• Environmental analysis and documentation for compliance with Federal NEPA and CEQA requirements
• Regulatory agency permitting
• Assistance to the Town during the Bidding Phase of the project, and • Construction Engineering Support NCE further understands that the Town anticipates construction to begin in May 2027 with project closeout by December 2027.

3.2 Technical Approach
The NCE team is highly experienced in projects similar to the Canyon Road Culvert Replacement Project. NCE maintains an excellent working relationship with Caltrans District 4 Local Assistance Office, which has led to the successful completion of several local projects in the Bay Area Cities of Newark, Alameda, Pacifica, and Richmond. A key assumption for the defined level of effort for this work is that the baseline scope of 125
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work will involve the removal and replacement of the existing culvert pipe with an RCP of similar size. If, after regulatory consultation, additional alternatives are required, such as an open-bottom culvert with a naturalized substrate channel, we can advise the Town of the additional scope and fee. NCE’s approach to completing this project includes the following tasks, as identified in the Town’s RFP:

Task 3.1 Project Management
As the primary consultant for the Town, NCE understands the importance of communication throughout the entire development of this project. Upon issuance of a Notice to Proceed, NCE’s Project Manager, Scott De Leon, PE, will arrange a virtual Kick-Off Meeting with the Town, Caltrans Local Assistance Office, identified utilities, and other stakeholders (per the Town’s request) to initiate work on the project. The objectives of the Kick-Off Meeting will be:
• Review of the Scope of Work
• Establish Lines of Communication
• Confirm Deadlines
• Establish Project Schedule and Milestones
• Define Design and Operation Criteria
Throughout the project, NCE staff will be available to attend regularly scheduled virtual progress meetings with the Town to maintain good communications. The purpose of the progress meetings will be to identify and resolve design or funding issues that may surface in a timely manner, present design alternatives and recommendations to Town staff, and continue coordination with project stakeholders as necessary. As the Project Manager on behalf of the Town, NCE understands the project management responsibilities.

Deliverables from this task include, but are not limited to:
• Project Work Plan
• Regular Monthly Progress Meetings
• Managing the project schedule (updated monthly)
• Assistance with Caltrans and FHWA ER Program compliance • Overall project coordination, communication, and public outreach Task 3.2 Preliminary Engineering
NCE will begin preliminary engineering with comprehensive site reconnaissance and field data collection. Our subconsultant, MPS, will perform detailed topographic and control surveys covering the project limits to collect all relevant surface features for the development of the design base maps. Right-of-way work – described in Task 3.4 below – will also be initiated at this time. Concurrently, our geotechnical subconsultant, MGE, will perform a geotechnical investigation that includes a single boring to a depth of 25 feet to evaluate subgrade soil characteristics. Laboratory testing of the soil samples collected from the boring will be performed with a letter report prepared that summarizes the results and geotechnical recommendations for the improvements. It should be noted that no geotechnical work will be performed until the required environmental clearances for the test site have been obtained. Using the project base 126
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maps, current computer modeling tools, and local rainfall/runoff data, NCE’s engineers will complete hydrologic and hydraulic analyses to determine optimal culvert sizing, which forms the basis of support for the selected drainage improvements. Finally, during this task, NCE will confirm the final selection of the RCP that will consider cost, constructability, right-of-way, and environmental impacts, resulting in the development of the Preliminary Engineering Report. This step ensures that selected improvements are both feasible and sustainable within FHWA ER and Caltrans requirements. If, after consultation with regulatory agencies and evaluation of impacts, it is determined that regulatory agencies would like consideration of additional culvert repair alternatives, such as an open-bottom culvert with naturalized channel substrate, NCE can evaluate and design this for additional scope and fee.

Deliverables from this task include, but are not limited to:
• Base Maps and Topographic Survey Data
• Preliminary Engineering Technical Memorandum with Costing • Preliminary Right-of-Way needs, if any
Task 3.3 Environmental Documentation
Based on NCE’s evaluation of the culvert and statements made in the RFP, NCE anticipates that the project qualifies as an Emergency Project under CEQA and would be statutorily exempt. Specifically, Section 15269 of the State CEQA Guidelines states that CEQA does not apply to:
• Emergency repairs to publicly or privately owned service facilities are necessary to maintain service essential to public health, safety, or welfare. Emergency repairs include those that require a reasonable amount of planning to address an anticipated emergency.

As such, NCE will prepare a statutory exemption (draft and final) for use by the Town as lead agency under CEQA. NCE understands that for similar, prior efforts, the Town has elected to prepare larger CEQA documents (e.g., Bollinger Canyon Road Culvert Repair Project Initial Study/Mitigated Negative Declaration [IS/MND]; however, the CEQA Guidelines were amended in 2018 to allow for expanded use of the emergency projects statutory exemption for projects like this. Although not required by CEQA Guidelines, NCE recommends the Town file the Notice of Exemption (NOE) form with the Town Clerk and the Office of Planning and Research. The benefit of filing an NOE is that it reduces the statute of limitations for filing a legal challenge to the project from 180 days after project approval to 35 days after filing of the NOE. Thus, filing a NOE reduces the timeframe within which a project is susceptible to legal challenge.

Caltrans (as delegated by FHWA) and the U.S. Army Corps of Engineers (USACE) each have NEPA responsibilities that they are responsible for implementing. In NCE’s experience, both agencies will rely on the Town to provide biological, aquatic, and cultural resources documentation to support their NEPA reviews. Based on the scope of the project, both federal agency actions are anticipated to qualify for Categorical Exclusions. However, as Caltrans has delegated authority, NCE will prepare additional technical information in support of Caltrans’s processes and permitting requirements. 127
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NCE will prepare a Preliminary Environmental Study (PES) form, as supported by technical reports (as identified below) and publicly available data. It is assumed that NCE will prepare a preliminary draft (for Town review prior to submittal to Caltrans), a submittal draft PES for Caltrans review, and a final PES that addresses Caltrans comments on the submittal draft. It is assumed that up to two meetings and an additional 64 hours of technical staff time (not including the technical reports identified below) will be required to complete the PES form and address Caltrans comments. If additional studies or Caltrans exhibits are required beyond what is defined herein, we will advise the Town and complete for additional scope and fee.

Cultural Resources. NCE will complete a cultural resources assessment of the Canyon Road Culvert project to comply with both Section 106 of the National Historic Preservation Act and CEQA. Archival research will be carried out to identify previously recorded cultural resources in the vicinity of the Area of Potential Effect (APE), which is assumed to include a quarter-mile buffer. NCE will assist the Town in conducting Native American consultation consistent with CEQA requirements, and if requested, NCE can assist Caltrans with coordination efforts under Section 106. NCE will perform a field survey of the APE to determine the presence or absence of cultural resources. The results of the cultural resources assessment will be presented within a Caltrans Archaeological Survey Report and associated Historic Properties Survey Report.

Aquatic Resources Delineation. NCE’s aquatic resource specialists will visit the project site and conduct a formal USACE aquatic resources delineation. Based on the results of the field work, NCE will prepare a Draft aquatic resources delineation report for review and comment by the Town. NCE will respond to comments and prepare a Final Aquatic Resource Delineation Report. The final Aquatic Resources Delineation Report will be submitted to the USACE, Regional Water Quality Control Board (RWQCB), and California Department of Fish and Wildlife (CDFW) as a required component of the federal and state permit applications.

Natural Environment Study – Minimal Impact (NES-MI). Based on the PES, NCE will prepare a Natural Environment Study – Minimal Impact (NES-MI). The NES-MI will describe the existing biological environments at the project site and how the project may affect those environments. NCE will complete an assessment of special-status plant and wildlife species and prepare each NES-MI in accordance with Caltrans requirements using the Natural Environment Study Template (August 2022 Caltrans Division of Environmental Analysis, Office of Biological Studies) and guidelines outlined in the LAPM, Chapter 6, and Volume 3: Biological Resources in the Standard Environmental Reference Manual.

The NES-MI will include a map depicting the Biological Study Area (BSA), which includes the direct APE and an indirect effect buffer. The buffer limit is defined by an area where project effects might extend. The NES-MI will include a description of the project, a characterization of the vegetation communities or habitats in the BSA based on field work, a summary of the aquatic resources, a discussion of special status species with potential to occur in the BSA, and an analysis of impacts on sensitive biological resources, including identification of appropriate avoidance, minimization, or 128
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mitigation measures. At this project location, we anticipate the California red-legged frog, Alameda whipsnake, and fish species, particularly the rainbow trout, will be of particular concern.

The NES-MI will provide the technical documentation necessary to support statements made within the CEQA and NEPA documents. NCE will prepare each draft NES-MI and submit it to the Town. NCE will incorporate Town comments and revise the draft NESMIs and resubmit them to the Town, which will submit them to Caltrans. Based on comments received from Caltrans, a final NES-MI may be prepared and submitted to the Town for each project to secure Caltrans approval. Deliverables from this task include, but are not limited to:
• Draft NES-MI
• Revised Draft NES-MI
• Final NES-MI
Permitting. Upon completion of the project’s technical studies, NCE will begin work on the regulatory agency permit applications. This task will begin with agency consultations to discuss the proposed project, scheduling, and special considerations for the project.

Early agency consultations help streamline the permitting process by allowing potential issues to be addressed upfront and early in the process. For this project permitting agencies may require additional justification or consideration of other design solutions such as an open bottom culvert with naturalized channel. NCE staff will proactively engage agency staff during the permit submittal and review process to ensure timely permit delivery.

Because the project is located on Indian Creek and it will result in both temporary and/or permanent impacts to Waters of the State and U.S, a Section 401 Water Quality Certification is required from the RWQCB, A Section 404 Nationwide Permit (NWP) from the USACE, and a Lake or Streambed Alteration Agreement is required from CDFW.

NCE will prepare a Water Board Discharges of Dredged or Fill Material to Waters of the State application (also known as a Water Quality Certification application) and request and attend a pre-filing meeting with the RWQCB. The application will quantify project impacts and will include all necessary information and attachments to provide a complete application per RWQCB requirements.

NCE will prepare a USACE NWP permit application for the use of NWP 14 for linear transportation projects. The application will be prepared and submitted using USACE’s online Regulatory Request System and will include all necessary information and attachments. NCE will prepare and submit a CDFW Notification of Lake or Streambed Alteration application using CDFW’s online Environmental Permit Information Management System. The application package will include all necessary information, including avoidance and/or minimization measures to protect fish, wildlife, and plant resources, and it will quantify impacts to Waters of the State.

Deliverables from this task include, but are not limited to:
• Draft and Final Notification of Water Quality Certification application (electronic, PDF format)
• Draft and Final USACE Section 404 permit application (electronic, PDF format) 129
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• Draft and Final Notification of Lake or Streambed Alteration application (electronic, PDF format)
Assumptions:
• The Town will provide payment of the permit application fees • A dewatering or temporary water diversion plan will not be required as construction will be scheduled when the channel is dry
• A water quality monitoring plan will not be required
• Permit condition compliance, mitigation plan, monitoring, and reporting are not a part of this scope of work because the project-specific permit requirements are currently unknown
• USACE is the lead federal agency and, if required, will initiate Section 7 consultation with the U.S. Fish and Wildlife Service (USFWS)
• The project will meet Nationwide Permit 14 requirements • No Hydrological Study will be required as part of the Streambed Alteration permit through CDFW, nor will a Location Hydraulic Study or Floodplain Encroachment Permit be required.

Task 3.4 Right-of-Way and Utility Coordination
As previously discussed, MPS will perform the necessary ground control surveys to collect all relevant data for the determination of existing right-of-way mapping. It is assumed that the project lies within existing right of way – either dedicated or prescriptive – and that no additional right of way will be required. Should the acquisition of land be necessary, a detailed scope and fee for that additional task will be determined and presented to the Town.

It appears that no underground (UG) utilities are present within the project limits; however, NCE will contact the various utility providers (i.e., PG&E, AT&T, Central Contra Costa County Sanitary District, EBMUD etc.) by sending notification letters (ALetters) with a preliminary project boundary and project construction schedule for the purpose of notifying the utilities of the project and obtaining information on potential conflicts. If UG utilities exist, the utility companies will be requested to provide their utility as-builts and record drawings. NCE will document the utility coordination notifications, conversations, and meetings with utility contacts and information in a matrix format with dates of contacts and mailing details in this matrix. Follow-up calls will be made for each of the above notifications to confirm receipt. NCE will also keep the Town informed of project delays related to utilities.

Deliverables from this task include, but are not limited to:
• Right-of-Way Mapping
• Documentation needed for Caltrans Right-of-Way Certification • Utility Coordination Summary and “A-Letters”
Task 3.5 PS&E
The preliminary design will begin once there is agreement by the agencies on the selected alternative developed in Task 3.2. Preliminary engineered plans, 130
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specifications, and estimates will be prepared to a 30% percent level and submitted to the Town and FHWA/Caltrans, USACE, CDFW, and RWQCB for concurrence of the design. The preliminary design will incorporate any input received from early contacts with the agencies, as well as recommendations provided by technical or investigative reports, and will address all design elements needed for successful construction of the project.

Subsequent PS&E packages will be developed for the 60%, 90% and 100% submittals, with each submittal addressing and incorporating comments from the previous version.

Plan sheets will generally include the following:
• Cover Sheet and General Notes
• Demolition Plan
• Plan and Profile Improvement Plans
• Headwall and Endwall Structural Plans
• Restoration and BMP Plans
• Detail Plans
Special Provisions based on Caltrans’ 2025 Standard Special Provisions and 2025 Standard Specifications will be prepared. These will be modified, where appropriate, to comply with Town standards and requirements. It is anticipated that the Town will provide electronic files of “boilerplate” bidding documents and a sample Contract to be incorporated in the project Specifications. Additionally, all federally required contract forms and documents will be included as required. Internal quality assurance/quality control (QA/QC) will be performed beginning with the 60% PS&E, with a QA/QC Checklist developed in accordance with Caltrans’ LAPM. A Hydraulic Modeling Report on the final design will also be prepared during this process.

NCE will prepare the Request for Authorization to Proceed with Construction (Caltrans E-76 package) for submission to Caltrans. NEPA and ROW Clearance from Caltrans are required before submitting the final Request for Authorization to Proceed with Construction. NCE will complete the following documents for the E-76 package to be submitted to Caltrans:
• Copy of FTIP/FSTIP Project Detail Report
• Finalized PES Form (Exhibit 6-A)
• Civil Rights and Disadvantaged Business Enterprise Agreements (Exhibit 9A-9D) • PS&E Checklist (Exhibit 12-D)
• Local Agency Construction Contract Checklist (Exhibit 15-A) • Project Authorization/Adjustment Request (Exhibit 3-A) • DBE Contract Goal Methodology (Exhibit 9-D, if still required) Deliverables from this task include, but are not limited to:
• PS&E Submittals at 30%, 60%, 90%, and 100%
• Hydraulic Modeling Report on Final Design
• Comment Response Log
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• E-76 Request for Authorization Package containing the above documentation.

Task 3.6 Bidding Support
Once a project is advertised for bidding, NCE provides comprehensive support throughout the bidding phase to ensure a smooth and transparent process. This includes participating in pre-bid meetings, preparing pre-bid agendas and meeting summaries, and responding to Requests for Information (RFIs) from contractors to clarify design intent. NCE’s design staff are available to issue addenda as needed, ensuring that all prospective bidders have the most current and accurate project information. For complicated or unique projects, NCE often recommends hosting a mandatory pre-bid meeting to further facilitate clear communication and understanding among all parties.

Deliverables from this task include, but are not limited to:
• Responses to bidder inquiries
• Draft and Final Addenda (as required)
• Final Conformed PS&E set
Task 3.7 Construction Support
NCE provides comprehensive construction support services designed to ensure successful project delivery from groundbreaking through closeout. Our team of experienced construction managers and inspectors offers a full suite of services, including attendance at pre-construction conferences, review of contractor submittals, and prompt responses to contractor RFIs. We provide recommendations for necessary construction changes due to unforeseen field conditions, assist with the review and preparation of contract change orders, and prepare record drawings based on as-built information. NCE’s proactive approach emphasizes clear communication, effective team building, and anticipation of potential issues to mitigate delays and claims, ensuring that projects remain on schedule and within budget.

Deliverables from this task include, but are not limited to:
• Construction Meeting attendance and notes
• Submittal and RFI Log and reviews
• Record Drawings (PDF and AutoCAD formats)
Task 3.8 Quality Assurance/Quality Control (QA/QC)
NCE provides QA/QC services through a formal Quality Assurance Management Program (QAMP) that is integrated into every phase of project delivery. The QAMP is built on four core principles: client satisfaction, employee participation, problem prevention, and continuous quality improvement. Every NCE employee participates in in-house quality assurance training and must pass a certification exam, ensuring a company-wide commitment to quality. The QAMP includes detailed reviews of all planning documents, technical reports, engineering specifications, drawings, calculations, and design documents before submittal to the client. This process is supported by meticulous record keeping and high standards of field documentation, with 132
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QA/QC conducted at every step—from proposal preparation and fieldwork to final deliverables.

NCE’s QA/QC process begins with self-checks by staff, followed by task and project manager reviews, and concludes with a dedicated QA/QC manager review. The program also incorporates lessons learned, technical expertise, and past performance into daily quality management. Special reviews, such as constructability reviews, are scheduled as needed, and review processes may include advisors who are not involved in day-to-day activities to provide independent oversight. Deliverables from subconsultants are held to the same rigorous standards, requiring a Subconsultant QA/QC Plan or adherence to NCE’s procedures, with all reviews thoroughly documented. This structured and comprehensive approach ensures that all project work meets the highest quality standards, minimizes regulatory scrutiny, and reduces the risk of contractor claims or change orders.

Deliverables from this task include, but are not limited to:
• QA/QC Plan (draft and final)
• Review the checklist and resolution
B. Subsurface Investigations
If borings or other specialized services are to be made by others under the supervision of CONSULTANT, appropriate provisions are to be incorporated.

C. TOWN Obligations
All data applicable to the project and in possession of TOWN or another agency, or government that are to be made available to CONSULTANT are referred to in the contract.

D. Conferences, Visits to Site, Inspection of Work
The contract provides for conferences as needed, visits to the site, and inspection of the work by representatives of the state, or FHWA. Costs incurred by CONSULTANT for meetings, subsequent to the initial meeting shall be included in the fee.

E. Checking Shop Drawings
Payment for checking shop drawings by CONSULTANT may be included in the contract fee, or provision may be made for separate payment.

F. Consultant Services During Construction
The extent, if any, of CONSULTANT’s services during the course of construction as material testing, construction surveys. etc., are specified in the contract together with the method of payment for such services.
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G. Documentation and Schedules
Contracts where appropriate, shall provide that CONSULTANT document the results of the work to the satisfaction of TOWN, and if applicable, the State and FHWA.

This may include preparation of progress and final reports, plans, specifications and estimates, or similar evidence of attainment of the contract objectives.

Title to all final documents, including but not limited to drawings, specifications, data, reports, summaries, correspondences, photographs, computer software (if purchased on the Town’s behalf), video and audio recordings, software output, and any other materials with respect to work performed shall be provided to Town upon completion of the work. Any information obtained by the Consultant as a result of performing the services shall become the property of the Town and shall not be released to others without prior written consent from the Town.

H. Deliverables and Number of Copies
Consultant shall furnish 3 copies of papers or documents to be furnished, such as submittals, updates, reports, brochures, sets of plans, specifications, or Right of Way plots is specified.

ARTICLE III.

CONSULTANT’S REPORTS OR MEETINGS
A. CONSULTANT shall submit progress reports at least once a month regarding the status of services performed under this contract. The report should be sufficiently detailed for the Contract Administrator to determine, if CONSULTANT is performing to expectations, or is on schedule; to provide communication of interim findings, and to sufficiently address any difficulties or special problems encountered, so remedies can be developed.

B. CONSULTANT’s Project Manager shall meet with TOWN’s Contract Administrator, as needed, to discuss progress on the contract.

ARTICLE IV.

PERFORMANCE PERIOD
A. This contract shall go into effect on December 10, 2025, contingent upon approval by TOWN, and CONSULTANT shall commence work after notification to proceed by TOWN’S Contract Administrator. The contract shall end on June 30, 2028, unless extended by contract amendment. TOWN and CONSULTANT expressly agree that time is of the essence in the performance of all obligations under this contract.

B. CONSULTANT is advised that any recommendation for contract award is not binding on TOWN until the contract is fully executed and approved by TOWN.

ARTICLE V.
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ALLOWABLE COSTS AND PAYMENTS
A. The method of payment for this contract will be based on actual cost plus a fixed fee. TOWN will reimburse CONSULTANT for actual costs (including labor costs, employee benefits, travel, equipment rental costs, overhead and other direct costs) incurred by CONSULTANT in performance of the work. CONSULTANT will not be reimbursed for actual costs that exceed the estimated wage rates, employee benefits, travel, equipment rental, overhead, and other estimated costs set forth in the approved CONSULTANT’S Cost Proposal, unless additional reimbursement is provided for by contract amendment. In no event, will CONSULTANT be reimbursed for overhead costs at a rate that exceeds TOWN’s approved overhead rate set forth in the Cost Proposal. In the event, that TOWN determines that a change to the work from that specified in the Cost Proposal and contract is required, the contract time or actual costs reimbursable by TOWN shall be adjusted by contract amendment to accommodate the changed work.

The maximum total cost as specified in Paragraph “H” shall not be exceeded, unless authorized by contract amendment.

B. In addition to the allowable incurred costs, TOWN will pay CONSULTANT a fixed fee of $384,198. The fixed fee is non-adjustable for the term of the contract, except in the event of a significant change in the scope of work and such adjustment is made by contract amendment.

C. Reimbursement for transportation and subsistence costs shall not exceed the rates specified in the approved Cost Proposal.

D. When milestone cost estimates are included in the approved Cost Proposal, CONSULTANT shall obtain prior written approval for a revised milestone cost estimate from the Contract Administrator before exceeding such cost estimate.

E. Progress payments will be made monthly in arrears based on services provided and allowable incurred costs. A pro rata portion of CONSULTANT’s fixed fee will be included in the monthly progress payments. If CONSULTANT fails to submit the required deliverable items according to the schedule set forth in the Statement of Work, TOWN shall have the right to delay payment or terminate this Contract in accordance with the provisions of Article VI Termination.

F. No payment will be made prior to approval of any work, nor for any work performed prior to approval of this contract.

G. CONSULTANT will be reimbursed, as promptly as fiscal procedures will permit upon receipt by TOWN’s Contract Administrator of itemized invoices in triplicate.

Invoices shall be submitted no later than 45 calendar days after the performance of work for which CONSULTANT is billing. Invoices shall detail the work performed on each milestone and each project as applicable. Invoices shall follow the format stipulated for the approved Cost Proposal and shall reference this contract number and project title. Final invoice must contain the final cost 135
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and all credits due TOWN including any equipment purchased under the provisions of Article XI Equipment Purchase of this contract. The final invoice should be submitted within 60 calendar days after completion of CONSULTANT’s work. Invoices shall be mailed to TOWN’s Contract Administrator at the following address:

Nate Levine, Interim Public Works Director/Town Engineer Town of Moraga Public Works Department
329 Rheem Boulevard
Moraga, California 94556
H. The total amount payable by TOWN including the fixed fee shall not exceed $384,198.

I. Salary increases will be reimbursable if the new salary is within the salary range identified in the approved Cost Proposal and is approved by TOWN’s Contract Administrator.

For personnel subject to prevailing wage rates as described in the California Labor Code, all salary increases, which are the direct result of changes in the prevailing wage rates are reimbursable.

J. All subcontracts in excess of $25,000 shall contain the above provisions.

ARTICLE VI.

TERMINATION
A. This contract may be terminated by TOWN, provided that TOWN gives not less than thirty (30) calendar days’ written notice (delivered by certified mail, return receipt requested) of intent to terminate. Upon termination, TOWN shall be entitled to all work, including but not limited to, reports, investigations, appraisals, inventories, studies, analyses, drawings and data estimates performed to that date, whether completed or not.

B. TOWN may temporarily suspend this contract, at no additional cost to TOWN, provided that CONSULTANT is given written notice (delivered by certified mail, return receipt requested) of temporary suspension. If TOWN gives such notice of temporary suspension, CONSULTANT shall immediately suspend its activities under this contract. A temporary suspension may be issued concurrent with the notice of termination.

C. Notwithstanding any provisions of this contract, CONSULTANT shall not be relieved of liability to TOWN for damages sustained by City by virtue of any breach of this contract by CONSULTANT, and City may withhold any payments due to CONSULTANT until such time as the exact amount of damages, if any, due City from CONSULTANT is determined.
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D. In the event of termination, CONSULTANT shall be compensated as provided for in this contract. Upon termination, TOWN shall be entitled to all work, including but not limited to, reports, investigations, appraisals, inventories, studies, analyses, drawings and data estimates performed to that date, whether completed or not.

ARTICLE VII.

COST PRINCIPLES AND ADMINISTRATIVE REQUIREMENTS
A. CONSULTANT agrees that 48 CFR Part 31, Contract Cost Principles and Procedures, shall be used to determine the allowability of individual terms of cost.

B. CONSULTANT also agrees to comply with Federal procedures in accordance with 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

C. Any costs for which payment has been made to the CONSULTANT that are determined by subsequent audit to be unallowable under 48 CFR Part 31 or 2 CFR Part 200 are subject to repayment by the CONSULTANT to TOWN.

D. When a CONSULTANT or Subconsultant is a Non-Profit Organization or an Institution of Higher Education, the Cost Principles for Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards shall apply.

E. All subcontracts in excess of $25,000 shall contain the above provisions.

ARTICLE VIII.

RETENTION OF RECORDS/AUDIT
A. For the purpose of determining compliance with Gov. Code § 8546.7, the CONSULTANT, Subconsultants, and TOWN shall maintain all books, documents, papers, accounting records, Independent CPA Audited Indirect Cost Rate workpapers, and other evidence pertaining to the performance of the contract including, but not limited to, the costs of administering the contract. All parties, including the CONSULTANT’s Independent CPA, shall make such workpapers and materials available at their respective offices at all reasonable times during the contract period and for three (3) years from the date of final payment under the contract. TOWN, Caltrans Auditor, FHWA, or any duly authorized representative of the Federal government having jurisdiction under Federal laws or regulations (including the basis of Federal funding in whole or in part) shall have access to any books, records, and documents of the CONSULTANT, Subconsultants, and the CONSULTANT’s Independent CPA, that are pertinent to the contract for audits, examinations, workpaper review, excerpts, and transactions, and copies thereof shall be furnished if requested 137
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without limitation. Subcontracts in excess of $25,000 shall contain this provision.

B. CONSULTANT shall maintain all documents and records prepared by or furnished to CONSULTANT during the course of performing the services for at least three (3) years following completion of the services. Such records include, but are not limited to, correspondence, internal memoranda, technical reports and investigations, calculations, books and accounts, accounting records documenting its work under its Agreement, and invoices, payrolls, records and all other data related to matters covered by this contract. CONSULTANT shall permit TOWN to audit, examine and make copies, excerpts and transcripts from such records, and CONSULTANT shall in no event dispose of, destroy, alter, or mutilate said books, records, accounts, and data in any matter whatsoever for three (3) years after TOWN makes the final or last payment or within three (3) years after any pending issues between TOWN and CONSULTANT with respect to this contract are closed, whichever is later.

ARTICLE IX.

AUDIT REVIEW PROCEDURES
A. Any dispute concerning a question of fact arising under an interim or post audit of this contract that is not disposed of by agreement, shall be reviewed by TOWN’S Chief Financial Officer.

B. Not later than 30 days after issuance of the final audit report, CONSULTANT may request a review by TOWN’S Chief Financial Officer of unresolved audit issues. The request for review will be submitted in writing.

C. Neither the pendency of a dispute nor its consideration by TOWN will excuse CONSULTANT from full and timely performance, in accordance with the terms of this contract.

D. CONSULTANT and subconsultant contracts, including cost proposals and ICR, are subject to audits or reviews such as, but not limited to, a contract audit, an incurred cost audit, an ICR Audit, or a CPA ICR audit work paper review. If selected for audit or review, the contract, cost proposal and ICR and related work papers, if applicable, will be reviewed to verify compliance with 48 CFR, Part 31 and other related laws and regulations. In the instances of a CPA ICR audit work paper review it is CONSULTANT’s responsibility to ensure federal, state, or local government officials are allowed full access to the CPA’s work papers including making copies as necessary. The contract, cost proposal, and ICR shall be adjusted by CONSULTANT and approved by TOWN contract manager to conform to the audit or review recommendations. CONSULTANT agrees that individual terms of costs identified in the audit report shall be incorporated into the contract by this reference if directed by TOWN at its sole discretion. Refusal by CONSULTANT to incorporate audit or review recommendations, or to ensure that the federal, state or local governments have access to CPA work papers, will be considered a breach of contract terms and cause for termination of the 138
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contract and disallowance of prior reimbursed costs.

E. CONSULTANT’s Cost Proposal may be subject to a CPA ICR Audit Work Paper Review and/or audit by the Independent Office of Audits and Investigations (IOAI). IOAI, at its sole discretion, may review and/or audit and approve the CPA ICR documentation. The Cost Proposal shall be adjusted by the CONSULTANT and approved by the TOWN Contract Administrator to conform to the Work Paper Review recommendations included in the management letter or audit recommendations included in the audit report. Refusal by the CONSULTANT to incorporate the Work Paper Review recommendations included in the management letter or audit recommendations included in the audit report will be considered a breach of the contract terms and cause for termination of the contract and disallowance of prior reimbursed costs.

1. During IOAI’s review of the ICR audit work papers created by the CONSULTANT’s independent CPA, IOAI will work with the CPA and/or CONSULTANT toward a resolution of issues that arise during the review.

Each party agrees to use its best efforts to resolve any audit disputes in a timely manner. If IOAI identifies significant issues during the review and is unable to issue a cognizant approval letter, TOWN will reimburse the CONSULTANT at an accepted ICR until a FAR (Federal Acquisition Regulation) compliant ICR {e.g. 48 CFR Part 31; GAGAS (Generally Accepted Auditing Standards); CAS (Cost Accounting Standards), if applicable; in accordance with procedures and guidelines of the American Association of State Highways and Transportation Officials (AASHTO) Audit Guide; and other applicable procedures and guidelines}is received and approved by IOAI.

Accepted rates will be as follows:
a. If the proposed rate is less than one hundred fifty percent (150%) - the accepted rate reimbursed will be ninety percent (90%) of the proposed rate.
b. If the proposed rate is between one hundred fifty percent (150%) and two hundred percent (200%) - the accepted rate will be eightyfive percent (85%) of the proposed rate. c. If the proposed rate is greater than two hundred percent (200%) - the accepted rate will be seventy-five percent (75%) of the proposed rate.

2. If IOAI is unable to issue a cognizant letter per paragraph E.1. above, IOAI may require CONSULTANT to submit a revised independent CPA-audited ICR and audit report within three (3) months of the effective date of the management letter. IOAI will then have up to six (6) months to review the CONSULTANT’s and/or the independent CPA’s revisions.
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3. If the CONSULTANT fails to comply with the provisions of this paragraph E, or if IOAI is still unable to issue a cognizant approval letter after the revised independent CPA audited ICR is submitted, overhead cost reimbursement will be limited to the accepted ICR that was established upon initial rejection of the ICR and set forth in paragraph E.1. above for all rendered services. In this event, this accepted ICR will become the actual and final ICR for reimbursement purposes under this contract.

4. CONSULTANT may submit to TOWN final invoice only when all of the following items have occurred: (1) IOAI accepts or adjusts the original or revised independent CPA audited ICR; (2) all work under this contract has been completed to the satisfaction of TOWN; and, (3) IOAI has issued its final ICR review letter. The CONSULTANT MUST SUBMIT ITS FINAL INVOICE TO TOWN no later than sixty (60) calendar days after occurrence of the last of these items. The accepted ICR will apply to this contract and all other agreements executed between TOWN and the CONSULTANT, either as a prime or subconsultant, with the same fiscal period ICR.

ARTICLE X.

SUBCONTRACTING
A. Nothing contained in this contract or otherwise, shall create any contractual relation between TOWN and any subconsultant(s), and no subcontract shall relieve CONSULTANT of its responsibilities and obligations hereunder.

CONSULTANT agrees to be as fully responsible to TOWN for the acts and omissions of its subconsultant(s) and of persons either directly or indirectly employed by any of them as it is for the acts and omissions of persons directly employed by CONSULTANT. CONSULTANT’s obligation to pay its subconsultant(s) is an independent obligation from TOWN’S obligation to make payments to the CONSULTANT.

B. CONSULTANT shall perform the work contemplated with resources available within its own organization and no portion of the work pertinent to this contract shall be subcontracted without written authorization by TOWN’s Contract Administrator, except that, which is expressly identified in the approved Cost Proposal.

C. CONSULTANT shall pay its subconsultants within ten (10) calendar days from receipt of each payment made to CONSULTANT by TOWN.

D. Any subcontract in excess of $25,000 entered into as a result of this contract shall contain all the provisions stipulated in this contract to be applicable to subconsultants.

E. Any substitution of subconsultant(s) must be approved in writing by TOWN’s Contract Administrator prior to the start of work by the subconsultant(s). 140
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F. Prompt Progress Payment
CONSULTANT or subconsultant shall pay to any subconsultant, not later than fifteen (15) days after receipt of each progress payment, unless otherwise agreed to in writing, the respective amounts allowed CONSULTANT on account of the work performed by the subconsultants, to the extent of each subconsultant’s interest therein. In the event that there is a good faith dispute over all or any portion of the amount due on a progress payment from CONSULTANT or subconsultant to a subconsultant, CONSULTANT or subconsultant may withhold no more than 150 percent of the disputed amount. Any violation of this requirement shall constitute a cause for disciplinary action and shall subject the licensee to a penalty, payable to the subconsultant, of 2 percent of the amount due per month for every month that payment is not made.

In any action for the collection of funds wrongfully withheld, the prevailing party shall be entitled to his or her attorney’s fees and costs. The sanctions authorized under this requirement shall be separate from, and in addition to, all other remedies, either civil, administrative, or criminal. This clause applies to both DBE and non-DBE subconsultants.

G. Prompt Payment of Withheld Funds to Subconsultants
The TOWN may hold retainage from CONSULTANT and shall make prompt and regular incremental acceptances of portions, as determined by the TOWN, of the contract work, and pay retainage to CONSULTANT based on these acceptances.

For this Contract, no retainage will be held by the TOWN from progress payments due to CONSULTANT. CONSULTANTS and subconsultants are prohibited from holding retainage from subconsultants. Any delay or postponement of payment may take place only for good cause and with the TOWN’s prior written approval. Any violation of these provisions shall subject the violating CONSULTANT or subconsultant to the penalties, sanctions, and other remedies specified in Section 3321 of the California Civil Code.

This requirement shall not be construed to limit or impair any contractual, administrative or judicial remedies, otherwise available to CONSULTANT or subconsultant in the event of a dispute involving late payment or nonpayment by CONSULTANT, deficient subconsultant performance and/or noncompliance by a subconsultant. This clause applies to both DBE and non-DBE subconsultants.

Any violation of these provisions shall subject the violating CONSULTANT or subconsultant to the penalties, sanctions and other remedies specified therein. These requirements shall not be construed to limit or impair any contractual, administrative, or judicial remedies otherwise available to CONSULTANT or subconsultant in the event of a dispute involving late payment or nonpayment by CONSULTANT, deficient subcontract performance, or noncompliance by a subconsultant.

ARTICLE XI.
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EQUIPMENT PURCHASE AND OTHER CAPITAL EXPENDITURES
A. Prior authorization in writing, by TOWN’s Contract Administrator shall be required before CONSULTANT enters into any unbudgeted purchase order, or subcontract exceeding $5,000 for supplies, equipment, or CONSULTANT services. CONSULTANT shall provide an evaluation of the necessity or desirability of incurring such costs.

B. For purchase of any item, service or consulting work not covered in CONSULTANT’s Cost Proposal and exceeding $5,000 prior authorization by TOWN’s Contract Administrator; three competitive quotations must be submitted with the request, or the absence of proposal must be adequately justified.

C. Any equipment purchased as a result of this contract is subject to the following:
“CONSULTANT shall maintain an inventory of all nonexpendable property.

Nonexpendable property is defined as having a useful life of at least two years and an acquisition cost of $5,000 or more. If the purchased equipment needs replacement and is sold or traded in, TOWN shall receive a proper refund or credit at the conclusion of the contract, or if the contract is terminated, CONSULTANT may either keep the equipment and credit TOWN in an amount equal to its fair market value, or sell such equipment at the best price obtainable at a public or private sale, in accordance with established TOWN procedures; and credit TOWN in an amount equal to the sales price. If CONSULTANT elects to keep the equipment, fair market value shall be determined at CONSULTANT’s expense, on the basis of a competent independent appraisal of such equipment.

Appraisals shall be obtained from an appraiser mutually agreeable to by TOWN and CONSULTANT, if it is determined to sell the equipment, the terms and conditions of such sale must be approved in advance by TOWN.” Regulation 2 CFR Part 200 requires a credit to Federal funds when participating equipment with a fair market value greater than five thousand dollars ($5,000) is credited to the project.

D. All subcontracts in excess $25,000 shall contain the above provisions.

ARTICLE XII.

STATE PREVAILING WAGE RATES
A. The State of California’s General Prevailing Wage Rates are not applicable to this contract.

B. No CONSULTANT or Subconsultant may be awarded an contract containing public work elements unless registered with the Department of Industrial Relations (DIR) pursuant to Labor Code §1725.5. Registration with DIR must be maintained throughout the entire term of this contract, including any subsequent amendments.

C. The CONSULTANT shall comply with all of the applicable provisions of the 142
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California Labor Code requiring the payment of prevailing wages. The General Prevailing Wage Rate Determinations applicable to work under this contract are available and on file with the Department of Transportation's Regional/District Labor Compliance Officer (https://dot.ca.gov/programs/construction/laborcompliance). These wage rates are made a specific part of this contract by reference pursuant to Labor Code §1773.2 and will be applicable to work performed at a construction project site. Prevailing wages will be applicable to all inspection work performed at TOWN construction sites, at TOWN facilities and at off-site locations that are set up by the construction contractor or one of its subcontractors solely and specifically to serve TOWN projects. Prevailing wage requirements do not apply to inspection work performed at the facilities of vendors and commercial materials suppliers that provide goods and services to the general public.

D. General Prevailing Wage Rate Determinations applicable to this project may also be obtained from the Department of Industrial Relations website at http://www.dir.ca.gov.

E. Payroll Records

1. Each CONSULTANT and Subconsultant shall keep accurate certified payroll records and supporting documents as mandated by Labor Code §1776 and as defined in 8 CCR §16000 showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by the CONSULTANT or Subconsultant in connection with the public work. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
a. The information contained in the payroll record is true and correct. b. The employer has complied with the requirements of Labor Code §1771, §1811, and §1815 for any work performed by his or her employees on the public works project.

2. The payroll records enumerated under paragraph (1) above shall be certified as correct by the CONSULTANT under penalty of perjury. The payroll records and all supporting documents shall be made available for inspection and copying by TOWN representatives at all reasonable hours at the principal office of the CONSULTANT. The CONSULTANT shall provide copies of certified payrolls or permit inspection of its records as follows:
a. A certified copy of an employee's payroll record shall be made available for inspection or furnished to the employee or the employee's authorized representative on request.
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b. A certified copy of all payroll records enumerated in paragraph (1) above, shall be made available for inspection or furnished upon request to a representative of TOWN, the Division of Labor Standards Enforcement and the Division of Apprenticeship Standards of the Department of Industrial Relations. Certified payrolls submitted to TOWN, the Division of Labor Standards Enforcement and the Division of Apprenticeship Standards shall not be altered or obliterated by the CONSULTANT.
c. The public shall not be given access to certified payroll records by the CONSULTANT. The CONSULTANT is required to forward any requests for certified payrolls to the TOWN Contract Administrator by both email and regular mail on the business day following receipt of the request.

3. Each CONSULTANT shall submit a certified copy of the records enumerated in paragraph (1) above, to the entity that requested the records within ten (10) calendar days after receipt of a written request.

4. Any copy of records made available for inspection as copies and furnished upon request to the public or any public agency by TOWN shall be marked or obliterated in such a manner as to prevent disclosure of each individual's name, address, and social security number. The name and address of the CONSULTANT or Subconsultant performing the work shall not be marked or obliterated.

5. The CONSULTANT shall inform TOWN of the location of the records enumerated under paragraph (1) above, including the street address, city and county, and shall, within five (5) working days, provide a notice of a change of location and address.

6. The CONSULTANT or Subconsultant shall have ten (10) calendar days in which to comply subsequent to receipt of written notice requesting the records enumerated in paragraph (1) above. In the event the CONSULTANT or Subconsultant fails to comply within the ten (10) day period, he or she shall, as a penalty to TOWN, forfeit one hundred dollars ($100) for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. Such penalties shall be withheld by TOWN from payments then due. CONSULTANT is not subject to a penalty assessment pursuant to this section due to the failure of a Subconsultant to comply with this section.

F. When prevailing wage rates apply, the CONSULTANT is responsible for verifying compliance with certified payroll requirements. Invoice payment will not be made until the invoice is approved by the TOWN Contract Administrator.

G. Penalty
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1. The CONSULTANT and any of its Subconsultants shall comply with Labor Code §1774 and §1775. Pursuant to Labor Code §1775, the CONSULTANT and any Subconsultant shall forfeit to the TOWN a penalty of not more than two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the Director of DIR for the work or craft in which the worker is employed for any public work done under the contract by the CONSULTANT or by its Subconsultant in violation of the requirements of the Labor Code and in particular, Labor Code §§1770 to 1780, inclusive.

2. The amount of this forfeiture shall be determined by the Labor Commissioner and shall be based on consideration of mistake, inadvertence, or neglect of the CONSULTANT or Subconsultant in failing to pay the correct rate of prevailing wages, or the previous record of the CONSULTANT or Subconsultant in meeting their respective prevailing wage obligations, or the willful failure by the CONSULTANT or Subconsultant to pay the correct rates of prevailing wages. A mistake, inadvertence, or neglect in failing to pay the correct rates of prevailing wages is not excusable if the CONSULTANT or Subconsultant had knowledge of the obligations under the Labor Code. The CONSULTANT is responsible for paying the appropriate rate, including any escalations that take place during the term of the contract.

3. In addition to the penalty and pursuant to Labor Code §1775, the difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate shall be paid to each worker by the CONSULTANT or Subconsultant.

4. If a worker employed by a Subconsultant on a public works project is not paid the general prevailing per diem wages by the Subconsultant, the prime CONSULTANT of the project is not liable for the penalties described above unless the prime CONSULTANT had knowledge of that failure of the Subconsultant to pay the specified prevailing rate of wages to those workers or unless the prime CONSULTANT fails to comply with all of the following requirements:
a. The contract executed between the CONSULTANT and the Subconsultant for the performance of work on public works projects shall include a copy of the requirements in Labor Code §§ 1771, 1775, 1776, 1777.5, 1813, and 1815.
b. The CONSULTANT shall monitor the payment of the specified general prevailing rate of per diem wages by the Subconsultant to the employees by periodic review of the certified payroll records of the Subconsultant.
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c. Upon becoming aware of the Subconsultant’s failure to pay the specified prevailing rate of wages to the Subconsultant’s workers, the CONSULTANT shall diligently take corrective action to halt or rectify the failure, including but not limited to, retaining sufficient funds due the Subconsultant for work performed on the public works project.
d. Prior to making final payment to the Subconsultant for work performed on the public works project, the CONSULTANT shall obtain an affidavit signed under penalty of perjury from the Subconsultant that the Subconsultant had paid the specified general prevailing rate of per diem wages to the Subconsultant’s employees on the public works project and any amounts due pursuant to Labor Code §1813.

5. Pursuant to Labor Code §1775, TOWN shall notify the CONSULTANT on a public works project within fifteen (15) calendar days of receipt of a complaint that a Subconsultant has failed to pay workers the general prevailing rate of per diem wages.

6. If TOWN determines that employees of a Subconsultant were not paid the general prevailing rate of per diem wages and if TOWN did not retain sufficient money under the contract to pay those employees the balance of wages owed under the general prevailing rate of per diem wages, the CONSULTANT shall withhold an amount of moneys due the
Subconsultant sufficient to pay those employees the general prevailing rate of per diem wages if requested by TOWN.

H. Hours of Labor
Eight (8) hours labor constitutes a legal day's work. The CONSULTANT shall forfeit, as a penalty to the TOWN, twenty-five dollars ($25) for each worker employed in the execution of the contract by the CONSULTANT or any of its Subconsultants for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of the Labor Code, and in particular §§1810 to 1815 thereof, inclusive, except that work performed by employees in excess of eight (8) hours per day, and forty (40) hours during any one week, shall be permitted upon compensation for all hours worked in excess of eight (8) hours per day and forty (40) hours in any week, at not less than one and one-half (1.5) times the basic rate of pay, as provided in §1815.

I. Employment of Apprentices

1. Where either the prime contract or the subagreement exceeds thirty thousand dollars ($30,000), the CONSULTANT and any subconsultants under him or her shall comply with all applicable requirements of Labor 146
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Code §§ 1777.5, 1777.6 and 1777.7 in the employment of apprentices.

2. CONSULTANTs and subconsultants are required to comply with all Labor Code requirements regarding the employment of apprentices, including mandatory ratios of journey level to apprentice workers. Prior to commencement of work, CONSULTANT and subconsultants are advised to contact the DIR Division of Apprenticeship Standards website at https://www.dir.ca.gov/das/, for additional information regarding the employment of apprentices and for the specific journey-to- apprentice ratios for the contract work. The CONSULTANT is responsible for all subconsultants’ compliance with these requirements. Penalties are specified in Labor Code §1777.7.

ARTICLE XIII.

CONFLICT OF INTEREST
A. CONSULTANT shall disclose any financial, business, or other relationship with TOWN that may have an impact upon the outcome of this contract, or any ensuing TOWN construction project. CONSULTANT shall also list current clients who may have a financial interest in the outcome of this contract, or any ensuing TOWN construction project, which will follow.

B. CONSULTANT hereby certifies that it does not now have, nor shall it acquire any financial or business interest that would conflict with the performance of services under this contract.

C. Any subcontract in excess of $25,000 entered into as a result of this contract, shall contain all of the provisions of this Article.

D. CONSULTANT hereby certifies that neither CONSULTANT, its employees, nor any firm affiliated with CONSULTANT providing services on this project prepared the Plans, Specifications, and Estimate for any construction project included within this contract. An affiliated firm is one, which is subject to the control of the same persons through joint- ownership, or otherwise.

E. CONSULTANT further certifies that neither CONSULTANT, nor any firm affiliated with CONSULTANT, will bid on any construction subcontracts included within the construction contract. Additionally, CONSULTANT certifies that no person working under this contract is also employed by the construction contractor for any project included within this contract.

F. Except for subconsultants whose services are limited to materials testing, no subconsultant who is providing service on this contract shall have provided services on the design of any project included within this contract. 147
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ARTICLE XIV.

REBATES, KICKBACKS OR OTHER UNLAWFUL CONSIDERATION
CONSULTANT warrants that this contract was not obtained or secured through rebates kickbacks or other unlawful consideration, either promised or paid to any TOWN employee. For breach or violation of this warranty, TOWN shall have the right in its discretion; to terminate the contract without liability; to pay only for the value of the work actually performed; or to deduct from the contract price; or otherwise recover the full amount of such rebate, kickback or other unlawful consideration.

ARTICLE XV.

PROHIBITION OF EXPENDING TOWN STATE OR FEDERAL FUNDS FOR

LOBBYING
A. CONSULTANT certifies to the best of his or her knowledge and belief that:

1. No state, federal or TOWN appropriated funds have been paid, or will be paid by-or-on behalf of CONSULTANT to any person for influencing or attempting to influence an officer or employee of any state or federal agency; a Member of the State Legislature or United States Congress; an officer or employee of the Legislature or Congress; or any employee of a Member of the Legislature or Congress, in connection with the awarding of any state or federal contract; the making of any state or federal grant; the making of any state or federal loan; the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any state or federal contract, grant, loan, or cooperative agreement.

2. If any funds other than federal appropriated funds have been paid, or will be paid to any person for influencing or attempting to influence an officer or employee of any federal agency; a Member of Congress; an officer or employee of Congress, or an employee of a Member of Congress; in connection with this federal contract, grant, loan, or cooperative agreement; CONSULTANT shall complete and submit Standard FormLLL, “Disclosure Form to Report Lobbying”, in accordance with its instructions.

B. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

C. CONSULTANT also agrees by signing this document that he or she shall require that the language of this certification be included in all lower-tier subcontracts, which exceed $100,000 and that all such sub recipients shall certify and disclose 148
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accordingly.

ARTICLE XVI.

NON-DISCRIMINATION CLAUSE AND STATEMENT OF COMPLIANCE
A. The CONSULTANT’s signature affixed herein and dated shall constitute a certification under penalty of perjury under the laws of the State of California that the CONSULTANT has, unless exempt, complied with the nondiscrimination program requirements of Gov. Code §12990 and 2 CCR § 8103.

B. During the performance of this contract, CONSULTANT and its subconsultants shall not deny the contract’s benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. CONSULTANT and subconsultants shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment.

C. CONSULTANT and subconsultants shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12990 et seq.), the applicable regulations promulgated there under (2 CCR §11000 et seq.), the provisions of Gov. Code §§11135-11139.5, and the regulations or standards adopted by TOWN to implement such article. The applicable regulations of the Fair Employment and Housing Commission implementing Gov. Code §12990 (a-f), set forth 2 CCR §§8100-8504, are incorporated into this contract by reference and made a part hereof as if set forth in full.

D. CONSULTANT shall permit access by representatives of the Department of Fair Employment and Housing and the TOWN upon reasonable notice at any time during the normal business hours, but in no case less than twenty-four (24) hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or TOWN shall require to ascertain compliance with this clause.

E. CONSULTANT and its subconsultants shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other Agreement.

F. CONSULTANT shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under this contract. 149
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G. The CONSULTANT, with regard to the work performed under this contract, shall act in accordance with Title VI of the Civil Rights Act of 1964 (42 U.S.C. §2000d et seq.). Title VI provides that the recipients of federal assistance will implement and maintain a policy of nondiscrimination in which no person in the United States shall, on the basis of race, color, national origin, religion, sex, age, disability, be excluded from participation in, denied the benefits of or subject to discrimination under any program or activity by the recipients of federal assistance or their assignees and successors in interest.

H. The CONSULTANT shall comply with regulations relative to non-discrimination in federally-assisted programs of the U.S. Department of Transportation (49 CFR Part 21 - Effectuation of Title VI of the Civil Rights Act of 1964). Specifically, the CONSULTANT shall not participate either directly or indirectly in the discrimination prohibited by 49 CFR §21.5, including employment practices and the selection and retention of Subconsultants.

I. CONSULTANT, subrecipient or subconsultant will never exclude any person from participation in, deny any person the benefits of, or otherwise discriminate against anyone in connection with the award and performance of any contract covered by 49 CFR 26 on the basis of race, color, sex, or national origin. In administering the TOWN components of the DBE Program Plan, CONSULTANT, subrecipient or subconsultant will not, directly, or through contractual or other arrangements, use criteria or methods of administration that have the effect of defeating or substantially impairing accomplishment of the objectives of the DBE Program Plan with respect to individuals of a particular race, color, sex, or national origin.

ARTICLE XVII.

DEBARMENT AND SUSPENSION CERTIFICATION
A. The CONSULTANT’s signature affixed herein shall constitute a certification under penalty of perjury under the laws of the State of California, that the CONSULTANT or any person associated therewith in the capacity of owner, partner, director, officer or manager:

1. Is not currently under suspension, debarment, voluntary exclusion, or determination of ineligibility by any federal agency;

2. Has not been suspended, debarred, voluntarily excluded, or determined ineligible by any federal agency within the past three (3) years;

3. Does not have a proposed debarment pending; and

4. Has not been indicted, convicted, or had a civil judgment rendered against it by a court of competent jurisdiction in any matter involving fraud or official misconduct within the past three (3) years.
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B. Any exceptions to this certification must be disclosed to TOWN. Exceptions will not necessarily result in denial of recommendation for award, but will be considered in determining responsibility. Disclosures must indicate the party to whom the exceptions apply, the initiating agency, and the dates of agency action.

C. Exceptions to the Federal Government Excluded Parties List System maintained by the U.S. General Services Administration are to be determined by FHWA.

ARTICLE XVIII.

FUNDING REQUIREMENTS
A. It is mutually understood between the parties that this contract may have been written before ascertaining the availability of funds or appropriation of funds, for the mutual benefit of both parties, in order to avoid program and fiscal delays that would occur if the contract were executed after that determination was made.

B. This contract is valid and enforceable only, if sufficient funds are made available to TOWN for the purpose of this contract. In addition, this contract is subject to any additional restrictions, limitations, conditions, or any statute enacted by the Congress, State Legislature, or TOWN governing board that may affect the provisions, terms, or funding of this contract in any manner.

C. It is mutually agreed that if sufficient funds are not appropriated, this contract may be amended to reflect any reduction in funds.

D. TOWN has the option to void the contract under the 30-day termination clause pursuant to Article VI, or by mutual agreement to amend the contract to reflect any reduction of funds.

ARTICLE XIX.

CHANGE IN TERMS
A. This contract may be amended or modified only by mutual written agreement of the parties.

B. CONSULTANT shall only commence work covered by an amendment after the amendment is executed and notification to proceed has been provided by TOWN’s Contract Administrator.

C. There shall be no change in CONSULTANT’s Project Manager or members of the project team, as listed in the approved Cost Proposal, which is a part of this contract without prior written approval by TOWN’s Contract Administrator.

ARTICLE XX.

DISADVANTAGED BUSINESS ENTERPRISES
A. A Disadvantaged Business Enterprise (“DBE”) as defined under 49 CFR, Part 26 may be terminated only with prior written approval from TOWN and only for the 151
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reasons specified in 49 CFR 26.53(f). Prior to requesting TOWN consent for the termination, CONSULTANT must meet the procedural requirements specified in 49 CFR 26.53(f).

ARTICLE XXI.

CONTINGENT FEE
CONSULTANT warrants, by execution of this contract that no person or selling agency has been employed, or retained, to solicit or secure this contract upon an agreement or understanding, for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees, or bona fide established commercial or selling agencies maintained by CONSULTANT for the purpose of securing business. For breach or violation of this warranty, TOWN has the right to annul this contract without liability; pay only for the value of the work actually performed, or in its discretion to deduct from the contract price or consideration, or otherwise recover the full amount of such commission, percentage, brokerage, or contingent fee.

ARTICLE XXII.

DISPUTES
A. Prior to either party commencing any legal action under this contract, the parties agree to try in good faith, to settle any dispute amicably between them. If a dispute has not been settled after forty-five (45) days of good-faith negotiations and as may be otherwise provided herein, then either party may commence legal action against the other.

B. Any dispute, other than audit, concerning a question of fact arising under this contract that is not disposed of by agreement shall be decided by a committee consisting of TOWN’s Contract Administrator and Nate Levine, Interim Public Works Director/Town Engineer, who may consider written or verbal information submitted by CONSULTANT.

C. Not later than 30 days after completion of all work under the contract, CONSULTANT may request review by TOWN Governing Board of unresolved claims or disputes, other than audit. The request for review will be submitted in writing.

D. Neither the pendency of a dispute, nor its consideration by the committee will excuse CONSULTANT from full and timely performance in accordance with the terms of this contract.

ARTICLE XXIII.

INSPECTION OF WORK
CONSULTANT and any subconsultant shall permit TOWN, the state, and the FHWA if federal participating funds are used in this contract; to review and inspect the 152
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project activities and files at all reasonable times during the performance period of this contract including review and inspection on a daily basis.

ARTICLE XXIV.

SAFETY
A. CONSULTANT shall comply with OSHA regulations applicable to CONSULTANT regarding necessary safety equipment or procedures. CONSULTANT shall comply with safety instructions issued by TOWN Safety Officer and other TOWN representatives. CONSULTANT personnel shall wear hard hats and safety vests at all times while working on the construction project site.

B. Pursuant to the authority contained in Section 591 of the Vehicle Code, TOWN has determined that such areas are within the limits of the project and are open to public traffic. CONSULTANT shall comply with all of the requirements set forth in Divisions 11, 12, 13, 14, and 15 of the Vehicle Code. CONSULTANT shall take all reasonably necessary precautions for safe operation of its vehicles and the protection of the traveling public from injury and damage from such vehicles.

C. Any subcontract entered into as a result of this contract, shall contain all of the provisions of this Article.

D. CONSULTANT must have a Division of Occupational Safety and Health (CALOSHA) permit(s), as outlined in California Labor Code Sections 6500 and 6705, prior to the initiation of any practices, work, method, operation, or process related to the construction or excavation of trenches which are five feet or deeper.

ARTICLE XXV.

INSURANCE
A. Prior to commencement of the work described herein, CONSULTANT shall furnish TOWN Certificates of Insurance stating that there is general comprehensive liability insurance presently in effect for CONSULTANT with a combined single limit (CSL) of not less than one million dollars ($1,000,000) per occurrence, automobile liability insurance presently in effect for CONSULANT with a CSL of not less than one million ($1,000,000) per occurrence, professional liability insurance in effect for CONSULTANT with a CSL not less than two million ($2,000,000) per occurrence, and workers compensation insurance in effect for CONSULTANT as required by state and federal law. If CONSULTANT maintains higher limits than the minimums shown above, TOWN requires, and shall be entitled to, coverage at the higher limits maintained by CONSULTANT and any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to TOWN.

B. The Certificate of Insurance will provide:

1. That the insurer will not cancel the insured’s coverage without 30 days 153
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prior written notice to TOWN.

2. That TOWN, its officers, agents, employees, and servants are included as additional insureds, but only insofar as the operations under this contract are concerned.

3. That TOWN will not be responsible for any premiums or assessments on the policy.

4. This policy shall be considered primary insurance as respects any other valid and collectible insurance the TOWN may possess, including any selfinsured retention the TOWN may have, and any other insurance the TOWN does possess shall be considered excess insurance only and shall not contribute with it.

5. This insurance shall act for each insured and additional insured as though a separate policy had been written for each. This, however, will not act to increase the limit of liability of the insuring company.

6. CONSULTANT’s commercial general liability, automobile liability, and workers’ compensation policies shall be endorsed with a waiver of subrogation against TOWN, its agents, officers, officials, employees and volunteers for losses paid under the terms of CONSULTANT’s insurance policies arising out of the services performed under this contract.

C. CONSULTANT agrees that the liability insurance coverage herein provided for shall be in effect at all times during the term of this contract. In the event said insurance coverage expires at any time or times during the term of this contract, CONSULTANT agrees to provide at least thirty (30) days prior notice to said expiration date, as noted above; and a new Certificate of Insurance evidencing insurance coverage as provided for herein, for not less than either the remainder of the term of the contract, or for a period of not less than one (1) year. New Certificates of Insurance are subject to the approval of TOWN. In the event CONSULTANT fails to keep in effect at all times insurance coverage as herein provided, TOWN may, in addition to any other remedies it may have, terminate this contract upon occurrence of such event.

D. Insurance is to be placed with insurers A Best’s rating of no less than A:VII.

ARTICLE XXVI.

OWNERSHIP OF DATA
A. It is mutually agreed that all materials prepared by CONSULTANT under this contract shall become the property of City, and CONSULTANT shall have no property right therein whatsoever. Immediately upon termination, City shall be entitled to, and CONSULTANT shall deliver to City, reports, investigations, appraisals, inventories, studies, analyses, drawings and data estimates 154
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performed to that date, whether completed or not, and other such materials as may have been prepared or accumulated to date by CONSULTANT in performing this contract which is not CONSULTANT’s privileged information, as defined by law, or CONSULTANT’s personnel information, along with all other property belonging exclusively to City which is in CONSULTANT’s possession.

Publication of the information derived from work performed or data obtained in connection with services rendered under this contract must be approved in writing by City.

B. Additionally, it is agreed that the Parties intend this to be an contract for services and each considers the products and results of the services to be rendered by CONSULTANT hereunder to be work made for hire. CONSULTANT acknowledges and agrees that the work (and all rights therein, including, without limitation, copyright) belongs to and shall be the sole and exclusive property of City without restriction or limitation upon its use or dissemination by City.

C. Nothing herein shall constitute or be construed to be any representation by CONSULTANT that the work product is suitable in any way for any other project except the one detailed in this Contract. Any reuse by City for another project or project location shall be at City’s sole risk.

D. Applicable patent rights provisions regarding rights to inventions shall be included in the contracts as appropriate (48 CFR 27 Subpart 27.3 - Patent Rights under Government Contracts for federal-aid contracts).

E. TOWN may permit copyrighting reports or other agreement products. If copyrights are permitted; the contract shall provide that the FHWA shall have the royalty-free nonexclusive and irrevocable right to reproduce, publish, or otherwise use; and to authorize others to use, the work for government purposes.

F. Any subcontract in excess of $25,000 entered into as a result of this contract, shall contain all of the provisions of this Article.

ARTICLE XXVII.

CLAIMS FILED BY TOWN’S CONSTRUCTION CONTRACTOR
A. If claims are filed by TOWN’s construction contractor relating to work performed by CONSULTANT’s personnel, and additional information or assistance from CONSULTANT’s personnel is required in order to evaluate or defend against such claims; CONSULTANT agrees to make its personnel available for consultation with TOWN’S construction contract administration and legal staff and for testimony, if necessary, at depositions and at trial or arbitration proceedings.

B. CONSULTANT’s personnel that TOWN considers essential to assist in defending against construction contractor claims will be made available on reasonable notice from TOWN. Consultation or testimony will be reimbursed at the same 155
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rates, including travel costs that are being paid for CONSULTANT’s personnel services under this contract.

C. Services of CONSULTANT’s personnel in connection with TOWN’s construction contractor claims will be performed pursuant to a written contract amendment, if necessary, extending the termination date of this contract in order to resolve the construction claims.

D. Any subcontract in excess of $25,000 entered into as a result of this contract, shall contain all of the provisions of this Article.

ARTICLE XXVIII.

CONFIDENTIALITY OF DATA
A. All financial, statistical, personal, technical, or other data and information relative to TOWN’s operations, which are designated confidential by TOWN and made available to CONSULTANT in order to carry out this contract, shall be protected by CONSULTANT from unauthorized use and disclosure.

B. Permission to disclose information on one occasion, or public hearing held by TOWN relating to the contract, shall not authorize CONSULTANT to further disclose such information, or disseminate the same on any other occasion.

C. CONSULTANT shall not comment publicly to the press or any other media regarding the contract or TOWN’s actions on the same, except to TOWN’s staff, CONSULTANT’s own personnel involved in the performance of this contract, at public hearings or in response to questions from a Legislative committee.

D. CONSULTANT shall not issue any news release or public relations item of any nature, whatsoever, regarding work performed or to be performed under this contract without prior review of the contents thereof by TOWN, and receipt of TOWN’S written permission.

E. Any subcontract entered into as a result of this contract shall contain all of the provisions of this Article.

ARTICLE XXIX.

NATIONAL LABOR RELATIONS BOARD CERTIFICATION
In accordance with Public Contract Code Section 10296, CONSULTANT hereby states under penalty of perjury that no more than one final unappealable finding of contempt of court by a federal court has been issued against CONSULTANT within the immediately preceding two-year period, because of CONSULTANT’s failure to comply with an order of a federal court that orders CONSULTANT to comply with an order of the National Labor Relations Board.

ARTICLE XXX.
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EVALUATION OF CONSULTANT
CONSULTANT’s performance will be evaluated by TOWN. A copy of the evaluation will be sent to CONSULTANT for comments. The evaluation together with the comments shall be retained as part of the contract record.

ARTICLE XXXI.

PROMPT PAYMENT FROM THE TOWN TO CONSULTANT
A. The TOWN shall make any progress payment within 30 days after receipt of an undisputed and properly submitted payment request from CONSULTANT on a professional service contract. If the TOWN fails to pay promptly, the TOWN shall pay interest to the contractor, which accrues at the rate of 10 percent per annum on the principal amount of a money judgment remaining unsatisfied. Upon receipt of a payment request, the TOWN shall act in accordance with both of the following:

1. Each payment request shall be reviewed by the TOWN as soon as practicable after receipt for the purpose of determining that the payment request is a proper payment request.

2. Any payment request determined not to be a proper payment request suitable for payment shall be returned to CONSULTANT as soon as practicable, but not later than seven (7) days, after receipt. A request returned pursuant to this paragraph shall be accompanied by a document setting forth in writing the reasons why the payment request is not proper.

ARTICLE XXXII.

NOTIFICATION
All notices hereunder and communications regarding interpretation of the terms of this contract and changes thereto, shall be effected by the mailing thereof by registered or certified mail, return receipt requested, postage prepaid, and addressed as follows:

CONSULTANT:
_________________________
_________________________
_________________________
_________________________
TOWN:

TOWN OF MORAGA
Nate Levine, Contract Administrator
329 Rheem Boulevard
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ARTICLE XXXIII.

CONTRACT
The two parties to this contract, who are the before named CONSULTANT and the before named TOWN, hereby agree that this contract constitutes the entire agreement which is made and concluded in duplicate between the two parties. Both of these parties for and in consideration of the payments to be made, conditions mentioned, and work to be performed; each agree to diligently perform in accordance with the terms and conditions of this contract as evidenced by the signatures below. If any term, condition or covenant of this contract is declared or determined by any court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this contract shall not be affected thereby and the contract shall be read and construed without the invalid, void or unenforceable provision(s).

Waiver by any party to this contract of any term, condition, or covenant contained herein shall not constitute a waiver of any other term, condition, or covenant. Waiver by any party of any breach of the provisions of this contract shall not constitute a waiver of any other provision, nor a waiver of any subsequent breach or violation of any provision of this contract. Neither TOWN’s acceptance of any work or services performed by CONSULTANT nor TOWN’s payment to CONSULTANT for any such work or services shall not constitute a waiver of any of the provisions of this contract.

ARTICLE XXXIV.

NEWS RELEASES / INTERVIEWS
All CONSULTANT and subconsultant news releases, media interviews, testimony at hearings and public comment shall be prohibited unless expressly authorized by the TOWN.

ARTICLE XXXV.

VENUE
In the event that suit shall be brought by either party hereunder, the parties agree that trial of such action shall be held exclusively in a state court in the County of Contra Costa, California, without reference to choice of laws principles.

ARTICLE XXXVI.

THIRD PARTY BENEFICIARIES
CONSULTANT’s subconsultants, if any, shall agree to be bound to the terms of the contract to the extent of their scope of services, including but not limited to, terms regarding indemnity, insurance, and dispute resolution, and shall agree that TOWN is deemed an express, intended third party beneficiary of their subconsultant agreements.

Nothing contained in this contract, however, shall operate to confer any such or similar rights or benefits on persons or entities not party to this contract. 158
Attachment D
Canyon Road Sinkhole
Repair and Culvert
Replacement Project
38 Consultant Services Contract
4903-2032-9852 v1
IN WITNESS WHEREOF, the Town and Consultant have executed this Agreement as of the date first above written.

TOWN OF MORAGA: CONSULTANT:

By: ______________________________ By:

Scott Mitnick,
Town Manager
Title:

APPROVED AS TO FORM:

By:

Michelle Marchetta Kenyon,
Town Attorney
FUNDING:

By:

Katie Bruner,
Administrative Services Director
159

U.S. Department of Transportation
Federal Highway AdministrationCalifornia Division- Title 23 Damage Assessment Form (DAF)
DAF No. - - -
Sheet # 1 of Federal Project # EO ER - ( )
Disaster No. CA - PR ER - ( )
Applicant County Incident Date (mm/dd/yyyy) Inspection
Congressional districts
Location of Damage: Per Site or Per Mile Federal-aid Highway? Name of Road/Bridge: Y for yes, if no, ineligible for ER funds PM Begin: PM Length: Map No
(in feet) PM End: Functional Classification Type:

Road/Bridge
Data:

Bridge
No Type: Route #
Traveled Way: Width Type: PCC AC Gravel Forest Hwy? Y/N Interstate? Y/N Shoulder: Width Type: PCC AC Gravel Existing ADT:

Description
of
Damage:

COST ESTIMATE
Emergency Opening (EO)
Type of Repair Description of Work Cost Summary

EO- AGENCY FORCES
CT Work Order #(s):________________
________________________________
EA(s):___________________________
PE
CE
Construction

EO- CONTRACT
EO EA(s):

PE
CE
Construction
NOTE: Environmental documentation for EO is required. It is generally started after work has begun. R/W Subtotal Emergency Opening
PermanentRestoration(PR)

PR- CONSTRUCTION
FA requires an approved PIF PE
Contract FA
PR EAs
CE
Construction
NOTE:PRIOR AUTHORIZATION (APPROVED E-76) IS REQUIRED TO PROCEED WITH

PERMANENT RESTORATION R/W & CONSTRUCTION R/W
NOTE: Environmental clearance for permanent restoration is Subtotal Permanent Restoration conducted through normal Federal-aid procedures Eligible Signature Date PE Total
Yes N
o
Local Agency (if applicable): CE Total
Yes N
o
Caltrans: R/W Total
Yes N
o
FHWA*: Construction Total

TOTAL ESTIMATE
FHWA Sig. Name (print):

CT signature Name (print):

Agency sig. Name (print):

DAF Prepared by (print):

Original: Caltrans District Copies: FHWA, Division of Local Assistance(local roads), Federal Resources (state hwy), HQ Major Damage Engineer (state hwy) *Write “N/A” in FHWA signature block if the project has no Federal ER funding or Federal ER funding delegated to the State.

FHWA Signature: REQUIRED for all Federal Funded State projects. REQUIRED for any Local Agency projects with 1) any BETTERMENT, 2) more than 2 ROW takes or 3) when paving is more than 50% of the Total Estimated Cost. Reminder: This DAF must be accompanied by photos of the damage. 160
Canyon Road Culvert Replacement
Category
Project Canyon Road
Creeks & Drainage
Project No: 23-201
Public Works
Location:

Responsible
Department:
2025-26 2026-27 2027-28 2029-30

PROJECT
TOTAL

EXPENDITURES
(Thousands of Dollars)
2028-29
FY 24/25
Carryover
Prior FY
Actuals
FY2024 -
FY2025
Expenses
071 - Administration 45 51 96
072 - Construction 41 311 352
073 - Const Mgmt/Inspection 7 47 54
074 - Contingency 31 31
075 - Design 446 23 469
076 - Engineering 36 41 77
077 - Environmental 17 17
079 - Permits 50 50
082 - Other 140 140
EXPENDITURE TOTALS 642 644 1,286
FUNDING SOURCES
-FHWA ER Grant 127 68 195
-FHWA ER Grant 357 289 646
205-RMRA (Gas Tax) 140 140
205-RMRA (Gas Tax) 158 147 305
FUNDING TOTALS 642 644 1,286
Account Number & Status:   700-722-XXX-22 - New
Project Objective:   Repair and rehabilitate failing storm drainage infrastructure. This project addresses FY 25- 26 and FY 26-27 Town Goal #3 and Priority #3.

Project Description:   During the 2023 rainy season, heavy storm damage to the 60-inch diameter culvert beneath the Canyon Road resulted in a large sinkhole and partial roadway collapse. The Town was approved for $727,528 FHWA Permanent Restoration (PR) funds for design/environmental permitting services. Town is requesting additional FHWA funding for Emergency Opening (EO) and PR work.

Basis for Schedule:   Pending project extension and funding increases, FHWA approvals, the project would complete Environmental Permit approvals in December 2026: Final Engineering Design in February 2027; Construction award in June 2027; Construction in August 2027; and project closeout in December 2027.

Basis for Cost:   Revised project cost based on the project update outlined in the December 10, 2025, Town Council Staff Report, pending FHWA project cost increase requests.

Project Balance Note:

Attachment F
161
CONSENT CALENDAR: 6.6
To: Honorable Mayor and Councilmembers
From: Katie Bruner, Administrative Services Director
Subject: FY 2024-25 Development Impact Fee Annual Report Meeting Date: December 10, 2025

TOWN OF MORAGA STAFF REPORT

RECOMMENDATION
Adopt a Resolution to accept and file the Development Impact Fee Annual Report for the fiscal year ended June 30, 2025, in conformance with Government Code Sections 66000-66008 and make findings regarding funds collected but not expended.

BACKGROUND
Many cities and towns charge fees on new development in order to fund public improvements and services necessary to serve those development projects such as streets, park facilities, water distribution system, wastewater system, and storm drains. These fees are commonly known as “Development Impact Fees" (also called AB 1600 fees). Development Impact fees are defined by Government Code section 66000(b) to include fees imposed in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project.

To ensure that these fees are spent in a timely manner and on projects for which they are being collected, the State Legislature passed AB 1600, the Mitigation Fee Act. This bill applies to developer fees that were increased or imposed on or after January 1, 1989. AB 1600 includes Sections 66000-66008 of the Government Code, which contain the following four requirements:

1. A local jurisdiction must follow the process outlined in the Mitigation Fee Act, make certain determinations regarding the purpose and use of the fees, and establish a nexus between a development project or class of projects and public improvement.

2. The fee revenues must be segregated from other funds, including the general fund, to avoid blending development impact fees and other revenues.

3. Every five years, the local jurisdiction shall make findings regarding any revenues collected 162
that remain unexpended regarding the continuing need for those funds. In addition, an annual report must be made of fees collected, interest earned, projects on which fees were expended, and any transfers for loans from the fee account. This report is to be reviewed by the local agency assessing the fees.

4. If a local jurisdiction does not make the five-year findings required under paragraph 3, it must refund the fees collected.

The information presented in this report is required by Sections 66006-66008 of the California Government Code to be made available to the public 180 days after the last day of each fiscal year.

DISCUSSION
The Town generally collects development impact fees at the time of issuance of building permits for new construction. These fees are deposited into separate development impact fee funds. The pace of development activity affects the level of development fees. Consequently, this source of funding is subject to considerable variation and dependent upon the progress of development projects.

On May 11, 2016, Town Council adopted resolution 42-2016, which approved an updated Development Impact Fee Nexus Study, to better reflect current demographic data, land use assumptions, and revised cost estimates. This resolution also discontinued the Traffic Impact Fee. These fees became effective July 25, 2016.

State law requires the Town to review and report the status of the development fees collected to finance public improvements. This report covers activity that occurred in these funds during FY 2024-25 (July 1, 2024 through June 30, 2025).

Attachment A, Development Impact Fees Annual Report, provides details of last year’s expenditures, a brief description of the Development Impact Fees, and the fee schedules applicable during FY 2024-25, as excerpted from the Town’s Fee Schedule. Fees are adjusted annually based on the Engineering News-Record (ENR) Construction Cost Index as of April, as allowed in Moraga Municipal Code Section 17.04.030(A).

The Development Impact Fee Annual Report also includes a five-year collection and expenditure schedule, a list of scheduled projects, and a list of current-year expenditures by project.

The FY 2024-25 Development Impact Fee Annual Report was published on November 25, 2025, and notice of publication was mailed at least 15 days before this Town Council meeting to members of the public who requested notice, complying with Cal. Gov. Code § 66006(b)(2).

FISCAL IMPACT
There are no direct financial impacts, however, if the report is not adopted by Council in a timely manner the Town may be at risk for penalties or returning collected impact fees.

CEQA COMPLIANCE
Approval of the proposed Development Impact Fee Annual Report is not subject to review 163
under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.), because it constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment.

ALTERNATIVES

1. Adopt the resolution with changes, or

2. Do not adopt the resolution and provide direction to staff.

NEXT STEPS
The Development Impact Fee Annual Report is already posted on the Town’s website. If Council requests changes to the report, the report will be re-posted with changes as adopted.

ATTACHMENTS
Attachment A - Reso AB 1600 Report FY25
Attachment B - AB 1600 Annual Report FY 2024-25
164
Attachment A
Resolution No. XX-2025 1 December 11, 2025

TOWN OF MORAGA

TOWN COUNCIL
RESOLUTION NO. xx-2025

RESOLUTION REVIEWING, ACCEPTING, AND FILING DEVELOPMENT IMPACT FEES ANNUAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2025 AND

MAKING FINDINGS REGARDING FUNDS COLLECTED BUT NOT EXPENDED WHEREAS, the Town of Moraga imposes development fees that are subject to the Mitigation Fee Act (Gov. Code §§ 66000 et seq.);
WHEREAS, pursuant to Government Code sections 66006 and 66013, the City is required to prepare an annual report regarding the collection and use of the Impact Fees within 180 days after the close of each fiscal year;
WHEREAS, pursuant to Government Code section 66001, the City is required to make findings with respect to any unexpended Impact Fee funds every fifth fiscal year following the first deposit into the Impact Fee accounts; WHEREAS, staff has prepared the Town of Moraga’s Development Impact Fee Annual Report (“Report”);
WHEREAS, the Report satisfies the reporting requirements stated in Government Code sections 66001, 66006, and 66013;
WHEREAS, notice was provided to the extent required by Government Code section 66006; and
WHEREAS, pursuant to Government Code section 66006(b)(2), the Report has been made available to the public not less than fifteen (15) days from the date of the next regularly scheduled public meeting. The report has been available for public review at the Clerk’s office and on the Town’s website since November 25, 2025.

NOW, THEREFORE, BE IT RESOLVED that the Town Council of the Town of Moraga that the foregoing recitals are true and correct.

BE IT FURTHER RESOLVED that the Town Council has reviewed the Development Impact Fee Annual Report for the Fiscal Year Ended June 30, 2025 and finds and adopts as follows:

1. In accordance with Government Code Section 66000 et seq., the Town has conducted an annual and five-year review of its Impact Fees and capital infrastructure programs and the Council has reviewed the Development Impact Fee Annual Report for the Fiscal Year 2024-25 attached hereto (“Report”), which is hereby accepted and adopted as the report required pursuant to Government Code sections 66001, 66006, and 66013.
165
Attachment A
Resolution No. XX-2025 2 December 11, 2025

2. The Council makes the necessary findings set forth in Government Code section 66001 as set forth in the Report attached hereto and funds have been used for the purposes stated in said Report and are necessary to mitigate impacts resulting from development in the Town and there is a reasonable relationship between the use of the fees and the type of development project upon which the fee is imposed.

BE IT FURTHER RESOLVED that this Resolution shall take effect immediately upon its adoption and the Clerk of the Town is directed to file the AB 1600 Report in the official records of the Town.
166
Category
Residential Development:

Single Family Detached
Single Family Attached/Townhouse
Multi-Family/Mixed Use
Senior Housing
Miscellaneous (Residential)
Non-Residential Development:

Retail/Entertainment
Office
B&B/Hotel
Miscellaneous (Non-Residential)
Five Year Collection and Expenditure Schedule FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Project Status Beginning Balance 7/1 200,730 201,458 167,999 95,993 85,398 Revenue
Impact Fees (Includes Administrative Charge) - 1,501 187 1,679 Interest 728 505 2,610 4,300 3,575
Total Revenue 728 2,005 2,610 4,487 5,254
Expenditures
Vehicle Replacement #153 - 35,464 - - - Complete
Transfer Out - CIP 17-501 Central Video Surveillance System - - 33,000 - - Complete Transfer Out - Fund 101 traffic equipment - - 18,000 - - Complete Traffic Equipment - - 23,616 - - Complete
Mobile Radios - - - 8,655 - Complete
Transfer Out - CIP 23-414 Central Video Surveillance System - - - 6,427 - In Progress, Began FY 2023-24 Total Expenditures - 35,464 74,616 15,082 -
Ending Balance 6/30 201,458 167,999 95,993 85,398 90,652 NOTE: There are no interfund loans, or refunds
Project Status
Project Name
Vehicle Replacement
23-414 Central Video Surveillance System
Scheduled Projects
Project Name
Anticipated
Project Start
Projected
Project End
Estimated
Project Costs
Total Impact
Fees Other Sources Other Sources
23-414 Central Video Surveillance System FY 2023-24 FY 2025-26 $58,000 $33,000 $25,000 Donations Replace Expedition police vehicle with small 4x4 pickup FY 2024-25 FY 2025-26 $85,000 $85,000 $0 Crime Scene Investigation equipment FY 2025-26 FY 2026-27 $3,000 $3,000 $0 Radar trailer/mobile units (including cameras for trailer) FY 2025-26 FY 2026-27 $20,000 $20,000 $0 $483
$27
Total Project Cost
$85,000 $0 100%
Per 1,000 Sq. Ft.

Per 1,000 Sq. Ft.

Per 1,000 Sq. Ft.

Per Person
Town of Moraga
Development Impact Fees
AB 1600 Annual Report
Fund 720 -- Public Safety Impact Fee
Description of Fees
The Public Safety Impact Fee was established for the purpose of creating a fair and equitable method of securing some of the revenues necessary to fund public safety enhancements and/or facilities, vehicles or equipment to enable the police department to serve new development. Fund 720 is used to record revenues and expenditures of the Public Safety Impact Fee. There is a reasonable relationship between the amount of the fee and the purpose for which it is charged because the fee represents the Town's proportionate costs of constructing and acquiring public safety facilities and equipment to serve the new development and the fee revenues will be used for the purpose of constructing and acquiring public safety facilities and equipment to serve the new development.

Schedule of Fees
Fee Basis
The Town of Moraga's Impact Fee Program, set forth in Moraga Municipal Code 17.04.030, provides for the imposition of impact fees on development projects for the purpose of mitigating the impact that development projects have on the Town's ability to provide public facilities.

Fiscal Year 2024-25
$987 Per Dwelling Unit
$987 Per Dwelling Unit
$638 Per Dwelling Unit
$493
$290
Per Dwelling Unit
Per Resident
$145
FY 2024-25 Expenditures
% of Total Projects Funded with Development
Fee
$58,000 $0 57%
$323

Attachment B
167
Town of Moraga
Development Impact Fees
AB 1600 Annual Report
The Town of Moraga's Impact Fee Program, set forth in Moraga Municipal Code 17.04.030, provides for the imposition of impact fees on development projects for the purpose of mitigating the impact that development projects have on the Town's ability to provide public facilities.

Fiscal Year 2024-25
Residential Development:

Single Family Detached
Single Family Attached/Townhouse
Multi-Family/Mixed Use
Senior Housing
Miscellaneous (Residential)
Non-Residential Development:

Retail/Entertainment
Office
B&B/Hotel
Miscellaneous (Non-Residential)
Five Year Collection and Expenditure Schedule FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Project Status Beginning Balance 7/1 475,196 476,920 384,989 163,509 173,436 Revenue
Impact Fees (Includes Administrative Charge) - 3,241 74 752 Interest 1,724 1,328 7,520 9,853 7,191
Total Revenue 1,724 4,569 7,520 9,927 7,943
Expenditures
Transfer Out - CIP 16-201 Laguna Creek Restoration - 22,000 - - - Complete Transfer Out - CIP 21-207 Moraga Rd Roadway & Drainage - 74,500 229,000 - - In progress, began FY 2021-22 Total Expenditures - 96,500 229,000 - -
Ending Balance 6/30 476,920 384,989 163,509 173,436 181,380 NOTE: There are no interfund loans, or refunds
Current Expenditure By Project
Project Name
Scheduled Projects
Project Name
Anticipated
Project Start
Projected
Project End
Estimated 5-
Year Project
Total Impact
Fees Other Sources Other Sources
21-207 Moraga Rd Roadway & Drainage FY 2021-22 FY 2025-26 $621,000 $476,000 $145,000 Measure K $486 Per 1,000 Sq. Ft. of Impervious Surface
$486 Per 1,000 Sq. Ft. of Impervious Surface
Total Project Cost FY 2024-25 Expenditures
% of Total Projects Funded with Development
Fee
Per 1,000 Sq. Ft. of Impervious Surface
$486 Per 1,000 Sq. Ft. of Impervious Surface
Fund 770 -- Storm Drain Impact Fee
$486 Per 1,000 Sq. Ft. of Impervious Surface
$486
Schedule of Fees
Category Fee Basis
Description of Fees
Established for the purpose of creating a fair and equitable method of securing some of the revenue necessary to fund the construction and implementation of improvements to the Town’s storm drainage system sufficient to accommodate storm drainage generated by new development. Fund 770 is used to record revenues and expenditures of Storm Drain Impact Fees. There is a reasonable relationship between the amount of the fee and the purpose for which it is charged because the fee represents the Town's proportionate costs of constructing and improving the Town’s storm drainage system sufficient to accommodate storm drainage generated by new development and the fee revenues will be used for the purpose of constructing and improving the Town’s storm drainage system sufficient to accommodate storm drainage generated by new development. $486 Per 1,000 Sq. Ft. of Impervious Surface
$486
$486 Per 1,000 Sq. Ft. of Impervious Surface
$486 Per 1,000 Sq. Ft. of Impervious Surface
Per 1,000 Sq. Ft. of Impervious Surface

168
Town of Moraga
Development Impact Fees
AB 1600 Annual Report
The Town of Moraga's Impact Fee Program, set forth in Moraga Municipal Code 17.04.030, provides for the imposition of impact fees on development projects for the purpose of mitigating the impact that development projects have on the Town's ability to provide public facilities.

Fiscal Year 2024-25
Residential Development:

Single Family Detached
Single Family Attached/Townhouse
Multi-Family/Mixed Use
Senior Housing
Miscellaneous (Residential)
Non-Residential Development:

Retail/Entertainment
Office
B&B/Hotel
Miscellaneous (Non-Residential)
Five Year Collection and Expenditure Schedule FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Project Status Beginning Balance 7/1 578,680 527,668 375,766 332,840 340,951 Revenue
Transfer In - - 50,000
Impact Fees (Includes Administrative Charge) - 8,618 1,691 15,207 Interest 2,099 1,479 7,073 9,843 14,499
Total Revenue 2,099 10,097 7,073 61,534 29,706
Expenditures
Transfer Out - CIP 16-305 Minor Imp. Gov. Facilities 23,448 - - - - Complete Transfer Out - CIP 19-103 Hacienda ADA Restroom - - - 8,756 - Complete Transfer Out - CIP 19-104 Hacienda ADA Pathway Expansion - 84,000 - - - Complete Transfer Out - CIP 20-103 Electric Vehicle Charging Stations 29,664 - - - - Complete Transfer Out - CIP 21-109 Town Facility Energy Generation Study - 78,000 - 10,556 - Complete Transfer Out - CIP 22-113 Back Generators/Solar - - 50,000 Project became CP 23-108 Transfer Out - CIP 23-107 329 Rheem Police Dept Floor - - - - 1,040 In Progress, Began FY 2024-25 Transfer Out - CIP 23-108 Town Facility Energy Reliablilty - - - - 33,309 In Progress, Began FY 2024-25 Transfer Out - CIP 23-304 Hacienda Creek Fence - - - 34,112 - Complete Total Expenditures 53,111 162,000 50,000 53,423 34,349
Ending Balance 6/30 527,668 375,765 332,839 340,951 336,308 NOTE: There are no interfund loans or refunds.

Current Expenditure By Project
Project Name
23-107 329 Rheem Police Dept Floor
23-108 Town Facility Energy Reliablilty
Scheduled Projects
Project Name
Anticipated
Project Start
Projected
Project End
Estimated 5-
Year Project
Costs
Total Impact
Fees Other Sources Other Sources
23-107 329 Rheem Police Dept Floor FY 2024-25 FY 2025-26 $34,000 $18,000 $16,000 Asset Replacement 23-108 Town Facilities Energy Reliability FY 2024-25 FY 2026-27 $1,195,000 $236,000 $959,000 ARPA, Measure J, Measure K, PEG
Per 1,000 Sq. Ft.

Schedule of Fees
$2,631
Fund 780 -- General Government Impact Fee
Description of Fees
$2,071 Per 1,000 Sq. Ft.
$1,195,000 $33,309
Per Dwelling Unit
$5,788 Per Dwelling Unit
53%
Total Project Cost FY 2024-25 Expenditures
% of Total Projects Funded with Development
Fee
Per Resident
$115 Per 1,000 Sq. Ft.

Category Fee Basis
$1,382
$4,472 Per Dwelling Unit
Established for the purpose of creating a fair and equitable method of securing some of the revenues necessary to fund general government operations and equipment sufficient to enable the Town government to serve new development. Fund 780 is used to record revenues and expenditures of General Government Impact Fees. There is a reasonable relationship between the amount of the fee and the purpose for which it is charged because the fee represents the Town's proportionate costs of constructing and improving the Town’s government facilities and equipment sufficient to accommodate new development and the fee revenues will be used for the purpose of constructing and improving the Town’s government facilities and equipment sufficient to accommodate new development. 20%
$1,040
Per Person
$8,945
$34,000
$621
$8,945 Per Dwelling Unit

169
Town of Moraga
Development Impact Fees
AB 1600 Annual Report
The Town of Moraga's Impact Fee Program, set forth in Moraga Municipal Code 17.04.030, provides for the imposition of impact fees on development projects for the purpose of mitigating the impact that development projects have on the Town's ability to provide public facilities.

Fiscal Year 2024-25
Residential Development:

Single Family Detached
Single Family Attached/Townhouse
Multi-Family/Mixed Use
Senior Housing
Miscellaneous (Residential)
Five Year Collection and Expenditure Schedule FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Project Status Beginning Balance 7/1 194,731 195,437 201,026 63,463 74,114 Revenue
Impact Fees (Includes Administrative Charge) - 5,039 2,102 18,898 Interest 706 549 4,545 8,549 3,564
Total Revenue 706 5,588 4,545 10,651 22,462
Expenditures
Transfer Out - 19-302 Commons Park Picnic Area Renovation - - 95,108 - - Complete Transfer Out - 21-301 Commons Park Restroom Replacement - - 26,000 - - Complete Transfer Out - Fund 101 for gopher abatement - - 16,000 - - Complete Transfer Out - Fund 101 for playground mulch - - 5,000 - - Complete Total Expenditures - - 142,108 - -
Ending Balance 6/30 195,437 201,026 63,463 74,114 96,576 NOTE: There are no interfund loans or refunds
Current Expenditure By Project
Project Name
Scheduled Projects
Project Name
Anticipated
Project Start
Projected
Project End
Year Project
Costs
Total Impact
Fees Other Sources Other Sources
23-305 Mulholland Ridge Slide Rehabilitiation FY 2025-26 FY 2026-27 $2,523,000 $96,576 $2,426,424 Grants, Asset Replacement Schedule of Fees
Category Fee Basis
Per Dwelling Unit
$3,269 Per Resident
Fund 790 -- Park Development Impact Fee
$11,115 Per Dwelling Unit
$11,115 Per Dwelling Unit
Description of Fees
Established for the purpose of creating a fair and equitable method of securing some of the revenue necessary to fund the construction and implementation of improvements to the Town’s park facilities sufficient to accommodate the demand generated by new development and preserve acceptable levels of service throughout the Town. Fund 790 is used to record revenues and expenditures of Park Development Fees. There is a reasonable relationship between the amount of the fee and the purpose for which it is charged because the fee represents the Town's proportionate costs of constructing and improving park facilities to serve the new development and the fee revenues will be used for the purpose of constructing and improving park facilities to serve the new development.

Total Project Cost FY 2024-25 Expenditures
% of Total Projects Funded with Development
Fee
$7,193 Per Dwelling Unit
$5,558

170
CONSENT CALENDAR: 6.7
To: Honorable Mayor and Councilmembers
From: Katie Bruner, Administrative Services Director
Subject: FY 2024-25 Annual Comprehensive Financial Report Meeting Date: December 10, 2025

TOWN OF MORAGA STAFF REPORT

RECOMMENDATION
Review and accept the Annual Comprehensive Financial Report, Memorandum on Internal Control, Required Communications, and Annual Gann Act Budget Appropriations Limit Calculation reports for the year ending June 30, 2025.

BACKGROUND
As required by government code, each year the Town of Moraga undergoes an independent audit of the Town’s basic financial statements to ensure that the financial statements are in conformity with generally accepted accounting principles (GAAP), including the standards set forth by the Governmental Accounting Standards Board (GASB). GASB is the independent organization that establishes and improves standards of accounting and financial reporting for U.S. state and local governments. GASB is recognized by governments, the accounting industry, and the capital markets as the official source of GAAP. The standards issued by GASB are used by auditors rendering opinions on the fairness of financial statement presentations in conformity with GAAP.

The independent audit of the Town’s financial statements for the year ending June 30, 2025, was conducted by Maze & Associates Accountancy Corporation. Maze & Associates was selected as the Town’s auditor following a Request for Proposals process in March 2025.

DISCUSSION
The FY 2024-25 ACFR was presented to and reviewed by the Audit and Finance Committee (AFC) on December 2, 2025. AFC voted 4-0 to recommend Town Council accept the FY 2024- 25 ACFR.

Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2025. 171
The Annual Comprehensive Financial Report (ACFR) is provided as Attachment A. Within the ACFR, the Letter of Transmittal, and the Management’s Discussion and Analysis reports serve to provide an executive summary of the ACFR. The ACFR includes Maze & Associates’ determination that the financial statements are presented fairly, in all material respects, and in conformity with generally accepted accounting principles.

The primary reason for preparing an ACFR is to include more comprehensive and detailed information about the Town’s finances and provide a statistical section that shows current and historical information on financial trends, revenue capacity, debt capacity, economic and demographic information, and operating information. This information is required, under the Town’s 2023 Certificates of Participation for Infrastructure Improvements, for compliance with the Securities and Exchange Commission (SEC) and specifically for annual continuing disclosure compliance.

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Moraga for its ACFR since 2013. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Town staff believes that the current ACFR continues to meet the Certificate of Achievement Program requirements and will submit the document to GFOA to determine eligibility for another certificate.

Financial Highlights
The financial statements present information on the financial health of the Town. Highlights for the year ended June 30, 2025, are noted as follows:

1. The Town’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources at the close of Fiscal Year (FY) 2024-25 with a Total Net Position of $95.26 million (Statement of Net Position, page 22). Of this amount, $7.61 million represents Unrestricted Net Position, which may be used to meet the government’s ongoing obligations to citizens and creditors.

2. As of the close of the current fiscal year, the Town’s Governmental Funds reported a combined ending fund balance of $19.17 million (Governmental Funds - Balance Sheet, pages 26-27), consisting of the following components:

Non-spendable $ 0
Restricted 4,378,726
Committed 13,026,334
Assigned 1,392,386
Unassigned 367,873
Total Fund Balance at June 30, 2025 $ 19,165,319

3. The Town’s General Fund has a combined Total Fund Balance of $10.33 million (General Fund Combining Balance Sheets, page 82), of which $7.53 million is General Purpose and $2.78 million is Palos Colorados Developer Fees Fund. The Palos Colorados fund was 172
established through a settlement agreement and classified as committed based on and subject to Town Council action on its use.

As a result of the annual independent audit of the Town’s financial records and statements, the Auditor has rendered an unmodified opinion, the optimal opinion issued by independent auditors, on the Town’s financial statements for the fiscal year ended June 30, 2025. In their opinion, “the financial statements present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Town as of June 30, 2025, and the respective changes in financial position and the respective budgetary comparisons listed in the table of contents as part of the basic financial statements for the year then ended in accordance with accounting principles generally accepted in the United States of America.”
Memorandum on Internal Control and Required Communications (MOIC) The Memorandum on Internal Control (MOIC) is provided as Attachment B, and the Required Communications is provided as Attachment C to this report. The Town’s internal control over financial reporting (internal control) is considered as a basis for the design of the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on the financial statements. 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 Town’s financial statements will not be prevented or detected and corrected on a timely basis.

The audit did not identify any deficiencies in internal control that are considered as material weaknesses.

Independent Accountant’s Report on Appropriation Limit
Attachment D to this report is the Independent Accountant’s Report on Applying Agreed Upon Procedures for Compliance with the Proposition 111, FY 2024-25 Appropriation Limit Increment. The independent auditor has opined that the Town’s calculation of the FY 2024-25 appropriation limit meets the requirements of Article XIII B of the State Constitution, also referred to as the Gann Limit.

FISCAL IMPACT
There is no fiscal impact associated with the review of this report. However, several agencies with which the Town has financial associations require that the audited financial reports be completed and submitted by December 31 each year, including the State Controller’s Office, Standard and Poor’s Financial Services, Metropolitan Transportation Commission, and Wilmington Trust, the Trustee for the 2023 Certificates of Participation.

CEQA COMPLIANCE
Acceptance of the FY 2024-25 Annual Comprehensive Financial Report is not subject to review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.), because it constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. 173

ALTERNATIVES

1. Do not accept the audited financial reports for the year ending June 30, 2025, and provide direction to staff.

NEXT STEPS
After acceptance of the ACFR, staff and Maze will finalize the ACFR and provide copies of the Town’s ACFR to the necessary agencies by required deadlines.

ATTACHMENTS
Attachment A - Moraga ACFR FY2025 FINAL Draft
Attachment B - Moraga MOIC
Attachment C - Moraga RC
Attachment D - Moraga Gann Limit AUP FY2025
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Pr
FY 2024-25
Annual Comprehensive
Financial Report
Town of Moraga
Attachment A
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Town of Moraga, California

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Prepared by the Administrative Services Department
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For the Year Ended June 30, 2025

TABLE OF CONTENTS

INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................................ v List of Officials, Advisory Committee and Administration ................................................................................ xiv Organization Chart ................................................................................................................................................. xv Location Map ........................................................................................................................................................ xvi GFOA Certificate of Achievement for Excellence in Financial Reporting ......................................................... xvii

FINANCIAL SECTION
Independent Auditor’s Report ............................................................................................................................. 1 Management Discussion and Analysis ................................................................................................................ 5 Basic Financial Statements
Government-wide Financial Statements:

Statement of Net Position ............................................................................................................ 22 Statement of Activities ................................................................................................................ 23 Fund Financial Statements:

Governmental Funds:

Balance Sheet ................................................................................................................. 26 Reconciliation of the Governmental Funds – Balance Sheet with the Statement of Net Position ........................................................................ 29 Statement of Revenues, Expenditures and Changes in Fund Balances ...................... 30 Reconciliation of the Net Change in Fund Balances – Total Governmental Funds with the Statement of Activities .................................................................. 32 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual:

General Fund ................................................................................................... 33 Measure K Local Funding ............................................................................... 34 i
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TABLE OF CONTENTS
FINANCIAL SECTION (Continued)
Proprietary Funds:

Statement of Net Position .......................................................................................... 36 Statement of Revenues, Expenses and Changes in Net Position ............................... 37 Statement of Cash Flows ........................................................................................... 38 Fiduciary Funds:

Statement of Fiduciary Net Position ............................................................................. 40 Statement of Changes in Fiduciary Net Position ........................................................... 41 Notes to Financial Statements .................................................................................................................. 43 Required Supplementary Information
Miscellaneous and Safety Plan, a Cost-Sharing Multiple-Employer Defined Pension Plan:

Schedule of Changes in the Net Pension Liability and Related Ratios .................................. 74 Schedule of Contributions ...................................................................................................... 76 Supplemental Information
General Fund:

Combining Balance Sheets ......................................................................................................... 82 Combining Schedules of Revenues, Expenditures and Changes in Fund Balances ................ 83 Other Governmental Funds:

Combining Balance Sheets ......................................................................................................... 88 Combining Statements of Revenues, Expenditures and Changes in Fund Balances ............... 92 Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ................................................................................................................ 96 ii
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TABLE OF CONTENTS
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STATISTICAL SECTION
Financial Trends
Net Position by Component - Last Ten Fiscal Years ............................................................................ 109 Changes in Net Position - Last Ten Fiscal Years .................................................................................. 110 Fund Balances of Governmental Funds - Last Ten Fiscal Years ......................................................... 113 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years ...................................... 114 Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years .............. 116 Assessed Value of Property by Use Code, Townwide - Last Ten Fiscal Years .................................. 117 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years ................................................. 118 Principal Property Tax Payers - Last Fiscal Year and Nine Years Ago .............................................. 119 General Fund Property Tax Levies and Collections - Last Ten Fiscal Years ...................................... 120 Sales Tax Rates ....................................................................................................................................... 121 Principal Sales Tax Producers - Last Fiscal Year and Nine Years Ago .............................................. 122 Sales Tax Revenues - Last Ten Fiscal Years ........................................................................................ 123 Taxable Retail Sales ................................................................................................................................ 124 Debt Capacity
Ratio of Outstanding Debt by Type - Last Ten Fiscal Years ............................................................... 125 Computation of Direct and Overlapping Debt ...................................................................................... 126 Computation of Legal Bonded Debt Margin ......................................................................................... 127 Demographic and Economic Information
Demographic and Economic Statistics - Last Ten Fiscal Years ........................................................... 128 Principal Employers - Last Fiscal Year and Nine Years Ago .............................................................. 129

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TABLE OF CONTENTS
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STATISTICAL SECTION (Continued)
Operating Information
Full-Time Equivalent Town Employees by Function - Last Ten Fiscal Years ................................... 130 Operating Indicators by Function – Last Ten Fiscal Years .................................................................. 131 Capital Asset Statistics by Function - Last Ten Years .......................................................................... 132 182
_____________________________________________________________________________ 329 Rheem Boulevard • Moraga, CA 94556 • www.moraga.ca.us 2 November 26, 2025
Dear Honorable Mayor and Members of Town Council:

Re: Town of Moraga’s Fiscal Year 2024-25 Annual Comprehensive Financial Report On behalf of the Town organization, we are pleased to submit the Town of Moraga’s Annual Comprehensive Financial Report (ACFR) for Fiscal Year (FY) 2024-25 (July 1, 2024 to June 30, 2025). This report aims to provide a full and transparent understanding of the Town’s financial activities and satisfy the continuing disclosure requirement under the Securities and Exchange Commission (SEC) related to the Town’s debt issuance. We are pleased to report that the Town’s independent auditor issued a “clean” and unqualified opinion for this year’s audit.

Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with Town management. To the best of staff’s knowledge and belief, the data used throughout this report is accurate in all material respects and is reported in a manner designed to present fairly the Town’s financial position and results of operations.

The Town’s financial statements were audited by Maze & Associates, a full-service independent and certified public accounting firm based in Pleasant Hill, California. The purpose of the independent audit is to provide reasonable assurance that the Town’s financial statements are free of material misstatement. This independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the adequacy of internal accounting controls, and evaluating the overall quality of financial reporting.

This letter of transmittal is intended to be read in conjunction with the Management’s Discussion and Analysis and the Basic Financial Statements.

Town Profile
The Town of Moraga is located in Contra Costa County, approximately 22 miles east of San Francisco. The Town encompasses an area of approximately 9.5 square miles. It was originally part of the Rancho Laguna de Los Palos Colorados, granted in 1835 by the Mexican government to cousins Joaquin Moraga and Juan Bernal for military services rendered. The Town has a population of approximately 16,700.
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Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

TRANSMITTAL LETTER
_____________________________________________________________________________ 329 Rheem Boulevard • Moraga, CA 94556 • www.moraga.ca.us The Town is predominantly residential with two clusters of community-serving retail and commercial spaces. The Town is home to Saint Mary’s College, a prestigious private Catholic university with a combined enrollment of approximately 3,000 undergraduate and graduate students. In 2025, Saint Mary's College of California ranked #7 in Regional Universities West by U.S. News and World Report. The Town’s one public high school, Campolindo High School, is ranked #263 in the nation and #30 in California. Town residents enjoy award-winning elementary and middle schools, access to open space, walking trails, an array of recreational opportunities, and diverse employment opportunities throughout the San Francisco Bay Area.

Form of Government
The Town of Moraga was incorporated as a General Law City, as the “City of the Town of Moraga,” on November 12, 1974. The Town operates under a Council-Manager Form of Government and is governed by a Town Council of five community members elected at-large.

Each Councilmember position has a term of four years. Council elections are held biennially in November of even-numbered years, with the number of open seats to be filled alternating between two and three seats each election cycle. The position of Mayor is filled by one of the members of the Council who is selected annually by the full Town Council to serve in that position for one year.

With each biennial budget cycle, Town Council establishes overall goals and objectives for the Town through the formal adoption of “Five Broad Goals” and “Top Ten Policies” aimed at enhancing the community and benefiting the public. The Town Council’s work is further guided by the land use and planning policies established in the General Plan. The Town Council sets priorities for the development and implementation of programs and services, determines the overall needs of the community, sets and monitors financial and administrative activities, and develops and prioritizes goals. The Town Council also confers with officials from other public agencies and associations to advance the goals of the Town.

The Town Council established the Audit and Finance Committee (AFC) to consider and make recommendations on matters relating to finance, budget, and audits. This Committee is comprised of two members of the Town Council and three Town Council-appointed citizens, one of whom serves as an informal Town Treasurer. Staff provides the Town Council and AFC with reports, such as the ACFR and biennial budget, and specifically requested financial analysis.

Town Services
The Town provides a range of municipal services including police, public works (including:
construction and maintenance of streets, storm drains, public buildings, and other public infrastructure), parks and recreation (including: recreational programming, park acquisition and improvements, and maintenance of parks), planning and general administrative services. The Moraga-Orinda Fire District (MOFD) provides fire protection, fire suppression, and paramedic vi
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Annual Comprehensive Financial Report
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TRANSMITTAL LETTER
_____________________________________________________________________________ 329 Rheem Boulevard • Moraga, CA 94556 • www.moraga.ca.us service. The Central Contra Costa Sanitary District (Central San) provides wastewater collection and treatment services. Water treatment and distribution services are provided by the East Bay Municipal Utility District (EBMUD). RecyleSmart oversees solid waste and residential recycling services provided by Republic Services. Contra Costa County provides library services which are housed within the Town owned and maintained library building.

Economic Condition and Outlook
The Town continues to face financial and budget challenges, as the cost of providing services continues to rise faster than local revenues. Until new in-fill land use development takes place in a more expeditious manner, the Town will continue to struggle to sustain existing services, retain existing employees, and plan for the future. Town capital improvement projects focus primarily on street reconstruction projects, pedestrian safety improvements, storm drain projects, and a few essential public infrastructure projects that are funded by dedicated funding sources (such as Measure K (Town dedicated 1% local sales tax), Measure J (Town’s share of a dedicated County local sales tax), State Gas Tax, State and federal grants, and Developer Impact Fees). Over the next budget cycle, the Town will embark on implementing Town Council’s Mission Statement, Five Broad Goals, and Top Ten Priorities, as adopted in February 2025.

Property Tax
Property tax revenue is the single largest source of revenue for the Town. Property taxes have remained relatively stable even during the historic upswings and downturns in the economy.

Moraga is a desirable and financially well-off community with a stable assessed valuation of property. However, the growth of property tax is limited by certain economic trends and Proposition 13. Under Proposition 13, property tax increases on any given property are limited to no more than 2% of assessed value per year if a property is not sold. Property taxes continued to grow in FY 2024-25, with revenues coming in about 4% higher than the prior fiscal year.

The Town receives among the lowest proportional share of property tax dollars paid of any municipality in Contra Costa County, approximately 5.2% of every property tax dollar paid by its property owners. Moraga’s proportional share with the County was established as part of the Town’s incorporation process. To increase the Town’s proportional share of property tax, the other agencies (including cities and towns) receiving a share of property tax revenue would need to agree to reduce their proportional shares. The State legislature would also need to approve the changes.

Sales Tax
Sales tax revenue is the second largest revenue source for the Town. The Town receives two different categories of sales tax revenues. The first source is the “Bradley-Burns” Local 1.0% Sales Tax share that flows into the General Fund. The second source is the “Measure K” local 1.0% Sales Tax that was approved by Moraga voters in November 2012. This general sales tax is vii
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Fiscal Year Ended June 30, 2025

TRANSMITTAL LETTER
_____________________________________________________________________________ 329 Rheem Boulevard • Moraga, CA 94556 • www.moraga.ca.us scheduled to sunset on March 31, 2033. To extend this revenue source will require a vote of Moraga residents.

In FY 2024-25, the Town’s Bradley-Burns 1% Sales Tax receipts totaled just under $1.3 million, while Measure K receipts totaled approximately $2.7 million. The Town’s Sales Tax revenues have remained relatively flat since 2022, with the trend continuing through FY2024-25 compared to prior years. This is in part due to the following factors:
• Price (inflation) becoming a growing concern for consumers Statewide • Federal Fund’s interest rate increases throughout 2023 • Supply chain issues continued to disrupt sales
• Business challenges include finding and retaining employees, with food service, hospitality, and retail trade most impacted
• Potential impacts of federal government tariffs (de-facto national taxes on consumers) FY 2024-25 Year End Results
For FY 2024-25, the General Fund ended the year with a net decrease in fund balance of $811,993.

This is primarily due to the transfer out of $1 million of General Fund to the Asset Replacement Fund, and the contribution of $500,000 from the General Fund to the Town’s Section 115 Pension Trust. The unassigned fund balance (revenues in excess of expenditures, after transfers, encumbrances, and contributions to reserves) reflected in Note 9 totaled $367,873. Factors contributing to this are explained as follows:
• Revenues came in lower than budget by $100,469. While Public Works and Police Department revenues exceed budgeted amounts, other revenues such as Sales Tax, Parks & Recreation and Planning Department revenues, and Other Revenues came in under budget.
• Expenditures came in lower than budget by $999,351, with expenditure savings resulting from vacancies and operations and maintenance expenditure savings.

As of June 30, 2025, the Town’s Emergency Reserve totaled $6,824,996, which equals 50% of FY 2026-27 adopted General Fund budget (adopted by Town Council on June 25, 2025). In March 2025, the Town Council updated the Town’s reserve policy to establish the emergency reserve within the Town’s committed fund balance designation and established that the reserve should be based on the General Fund adopted budget.

In summary, Town revenues continue to remain relatively flat. Inflationary costs continue to warrant a cautious balance of concern and optimism. Rising expenditures over time may begin to outpace revenues as pension and personnel costs continue to rise over the next several years. viii
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Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

TRANSMITTAL LETTER
_____________________________________________________________________________ 329 Rheem Boulevard • Moraga, CA 94556 • www.moraga.ca.us Pension (CalPERS) Liability
Pension costs remain one of the Town’s most significant cost drivers and financial challenges.

Since 2012, CalPERS continued to adjust its funding methodology in an attempt to stabilize its pension portfolio, primarily around the assumed rate of return and demographic assumptions (including life expectancy). Changes to these assumptions have a direct impact on employer costs.

The Town’s net pension liability increased in FY 2024-25 from $10 million to $10.1 million (Note 8 to the Financial Statements). While the Town makes all required contributions, including payments on the unfunded liability, assumption changes and investment returns on plan assets also impact the Town’s liability.

In October 2022, the Town Council established an IRS Section 115 Irrevocable Pension Trust with an initial contribution of $1.5 million. Town Council authorized a contribution of $500,000 in March 2025. The market value of the Pension Trust was $2.4 million as of June 30, 2025.

Investments in the Trust will be used by the Town in future years to help mitigate the impact of projected pension contribution increases.

Town Goals & Priorities
The Town Council establishes goals and priorities on an annual basis. On May 8, 2024, the Town Council adopted the following Top Priorities for FY 2024-25:

1. Work with local property owners, Chamber of Commerce, and the community to create a mix of housing, revitalize the Town’s commercial areas, implement the Town’s Housing Element, and continue the General Plan 2040 update effort.

2. Maintain a balanced Biennial Budget, 50% General Fund Reserve, AAA Credit Rating, and develop a Ten-Year Financial Strategic Plan to provide long-term fiscal sustainability and core municipal services.

3. Complete construction of the 2023-2025 Townwide “Worst Streets First” Street Reconstruction Projects, implement the revised Street Rehabilitation Cost Sharing Policy, and improve the Town’s overall Pavement Condition Index.

4. Complete construction of the 2023-2025 Storm Drain Capital Improvement Projects and continue the Town’s Storm Drain Operations and Maintenance Program.

5. Maintain high-quality public safety services by providing responsive law enforcement, continuing to coordinate with Moraga-Orinda Fire District, and completing the Lamorinda Evacuation Study.

6. Commence preparation of a Recreation and Open Space Master Plan.

7. Implement measures to improve pedestrian and bicycle safety along streets and roads, especially near schools, and address congestion.
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Fiscal Year Ended June 30, 2025

TRANSMITTAL LETTER
_____________________________________________________________________________ 329 Rheem Boulevard • Moraga, CA 94556 • www.moraga.ca.us

8. Lessen the Town’s impact on the environment by implementing environmental sustainability and resiliency initiatives; including those contained in the Town’s Climate Action Plan and Facility Energy Generation Study.

9. Review the Town’s Fee Schedule, development fees, and other potential fees that would benefit the community (such as a fee for the arts, landscaping, stormwater, drainage, Transient Occupancy Tax, etc.).

10. Continue to improve town-gown relationship with Saint Mary’s College.

11. Update the Townwide Noise Ordinance.

Town Accomplishments
Over Fiscal Year 2024-25, the Town accomplished the following notable achievements:
• Completed the Town’s first ten-year General Fund Financial Forecast and updated the Town’s 50% General Fund Reserve Policy.
• Complied with AB2561, holding a Public Hearing regarding Townwide vacancies, recruitment, and employee retention.
• Successfully negotiated multi-year compensation resolutions and Memorandums of Understanding with the Town’s four bargaining units.
• In November 2024, Town Council approved the 2040 General Plan Update. • Applied for (and received) a Pro Housing Designation from the California Housing & Community Development Departments (HCD) in November 2024. • Obtained Town Council approval of a comprehensive Street Rehabilitation Cost-Sharing Policy.
• Parks and Recreation staff coordinated with community groups, non-profits, and Saint Mary’s College to complete community service projects.
• In partnership with the community, celebrated the Town’s 50th Anniversary of incorporation, including a 2075 time capsule and parade. • Facilitated review and approval of two multi-unit housing projects, including the 49-unit Park Street Affordable Apartment Project in March 2025. • The Public Works Department made considerable progress completing the Town’s “WorstFirst” pavement management project, funded by Measure K, designed to rehabilitate all residential streets with a Pavement Condition Index of under 50. • Upgraded the Police Department’s body worn cameras to the newest model to ensure quality recordings of enforcement stops and citizen contacts as part of continuing transparency and accountability efforts.
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Fiscal Year Ended June 30, 2025

TRANSMITTAL LETTER
_____________________________________________________________________________ 329 Rheem Boulevard • Moraga, CA 94556 • www.moraga.ca.us Financial Policies and Practices
Budgetary Policy and Control
The Town’s biennial budget serves as the foundation for planning and controlling the Town’s finances. The budget development process begins in January with the Town Council goal-setting meeting. Relative to the established Town Council goals, Town staff evaluates existing programs, services, and staffing levels; analyzes revenue sources; and prepares a balanced budget based on priorities that fit within the constraints of projected revenue assumptions. The Audit and Finance Committee reviews the budget proposal before submission to the Town Council. The Town Council deliberates on the proposed budget in May/June and adopts a balanced biennial budget before July 1 of each budget cycle.

As of July 1, 2023, the Town transitioned from an Annual Budget format to a Biennial Budget format. Advantages of moving to a two-year budget include a more thoughtful and deliberate approach to budgeting, creating greater staffing efficiencies and time savings that would add capacity to provide core services for the community, and dedicating more time to plan for and implement Town Council goals and priorities and other major initiatives.

The Town Council has the legal authority to amend the budget at any time during the fiscal year.

Budget amendments that increase a fund’s appropriations require majority approval by the Town Council. Certain budgetary reallocations within departments require approval by the Administrative Services Director and department directors. Budget amendments between departments are approved by the Administrative Services Director and Town Manager.

The Town Manager has the authority to administratively adjust the budget if changes do not result in a significant policy impact, or the adjustment does not affect budgeted year-end fund balances.

Further, the Town Manager’s contract signing authority is capped at $25,000. All contracts over $25,000 require Town Council authorization. A mid‐year budget status report and a long‐term financial forecast for the next five years are presented to the Town Council as part of an ongoing assessment and evaluation of budgetary performance, with special attention to the General Fund and certain other major funds.

Internal Controls
The Town maintains an internal control structure designed to provide reasonable assurance that the Town’s assets are protected from loss, theft, or misuse as well as to ensure that these objectives are consistently met. The concept of reasonable assurance recognizes that: (1) The cost of control should not exceed the benefits likely to be derived, and (2) The valuation of costs and benefits requires estimates and judgments by management.
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Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

TRANSMITTAL LETTER
_____________________________________________________________________________ 329 Rheem Boulevard • Moraga, CA 94556 • www.moraga.ca.us Town management believes that the existing internal control systems are adequate to provide reasonable assurance the Town’s assets are safeguarded against loss, theft, or misuse; and that the financial records are reliable for the preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP). This is supported by the independent auditor’s “clean” and unqualified report of the Town’s financial statements for the year ended June 30, 2025.

Long-Term Financial Planning
Long-term financial planning is an integral part of the Town’s fiscal management. Each of the Town’s operating funds, including the General Fund, maintains a long-term financial model. This model takes a strategic approach to ensure long-term financial health including a comprehensive analysis of the local, state, and federal economic conditions, short and long-term revenue, and expense trends as well as the challenges such as funding infrastructure needs and long-term pension liabilities. Long-term financial planning is a tool that allows policymakers an opportunity to prioritize funding needs over time and sets the tone for the budget development process.

As part of the budget process, the Town Council reviews and approves a Long-Term Financial Plan that serves as a strategic tool to manage the Town’s financial resources. The Plan considers historical trends, known and projected economic factors, and the Town’s fiscal management policies to determine the financial outlook in the coming years.

Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Moraga for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2024. The Town has continued to receive this recognition since 2013. To be awarded the Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy generally accepted accounting principles, applicable legal requirements, and standards established by GFOA.

A Certificate of Achievement is valid for one year only. Town staff believes that the current Annual Comprehensive Financial Report (ACFR) continues to meet the Certificate of Achievement Program requirements and will again submit its ACFR to the GFOA to determine eligibility for another certificate.

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Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

TRANSMITTAL LETTER
_____________________________________________________________________________ 329 Rheem Boulevard • Moraga, CA 94556 • www.moraga.ca.us Acknowledgments
The preparation of this Annual Comprehensive Financial Report was made possible by the yearround and dedicated efforts of the entire Administrative Services Department working in conjunction with Maze & Associates, the Town’s independent auditors. Special thanks are extended to Sylvia Wells, Senior Accountant, Beth Walker, Administrative Services Technician, and Steven Thomason, Accounting Technician, for their work on the preparation of this report.

We are grateful to the Audit and Finance Committee for their contributions to this report and finally. In addition, the full support and cooperation of the Town’s Executive Team (Department Directors) and a variety of employees from all the operating departments is greatly appreciated and valued. And finally, we would like to thank the Town Council for its continued political leadership, direction, and support in planning and conducting the financial operations of the Town responsibly and prudently.

Respectfully submitted,
Scott Mitnick Katie Bruner
Town Manager Administrative Services Director
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Town of Moraga

LIST OF OFFICIALS, ADVISORY

COMITTEE,AND ADMINISTRATION

TOWN COUNCIL
Steve Woehleke, Mayor
Kerry Hillis, Vice-Mayor
Brian Dolan, Councilmember
Lisa Maglio, Councilmember
Graham Thiel, Councilmember

AUDIT & FINANCE COMMITTEE
Bob Kennedy, Town Treasurer/Chair
Amy McLellan, Committee Member
Minshu Liu, Committee Member
Steve Woehleke, Mayor
Kerry Hillis, Vice-Mayor

TOWN MANAGER
Scott Mitnick

TOWN ATTORNEY
Michelle Marchetta Kenyon

DEPARTMENT DIRECTORS
Katie Bruner, Administrative Services Director
Jon King, Chief of Police
Mackenzie Brady, Parks and Recreation Director
Sonia Urzua, Planning Director
Shawn Knapp, Public Works Director/Town Engineer
Amy Heavener, Town Clerk
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Organization Chart
Fiscal Year 2024-25
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Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

LOCATION MAP
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Moraga
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the Town Council of the
Town of Moraga, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Moraga (Town)Town of Moraga, California, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the Town’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, each major fund, and the aggregate remaining fund information of the Town as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparisons listed in the Table of Contents as part of the basic financial statements for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 1 197
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 Town’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 Town’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.

2 198
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other required supplementary information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplemental Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated DATE, on our consideration of the Town’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Town’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s internal control over financial reporting and compliance.

Pleasant Hill, California
DATE
4 200

TOWN OF MORAGA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

MANAGEMENT DISCUSSION AND ANALYSIS
Introduction
As management of the Town of Moraga (Town), we offer readers this narrative overview of the Town’s financial statements for the fiscal year ended June 30, 2025. The accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures in this report, are the responsibility of the Town. In accordance with Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments, this Management’s Discussion and Analysis are designed to:
• Highlight information readers may need to assess the Town's financial position, • Make comparisons of current year to prior year financial activity, • Explain any significant deviation in funds and budget variances, • Describe capital assets and long-term debt activity during the year, and • Describe currently known facts, decisions, or conditions that are expected to have a significant effect on financial position and the Town’s ability to address future challenges.

The Town’s financial statements serve the purpose of reporting all revenues and all costs of providing services each year, not just those received or paid in the current year. In addition, the financial statements report current and long-term assets and liabilities.

Overview of the Annual Comprehensive Financial Report
This Annual Comprehensive Financial Report consists of the following parts:
• Introductory section, which includes the Transmittal Letter and general information, • Management’s Discussion and Analysis,
• Basic Financial Statements,
• Required Supplementary Information, and
• Statistical information and other schedules.

Basic Financial Statements
The Basic Financial Statements are comprised of three components: (1) Government-wide Financial Statements, (2) Fund Financial Statements, and (3) Notes to the Financial Statements.

Government-Wide Financial Statements
The Statement of Net Position and the Statement of Activities report information about the Town’s finances as a whole. These statements report consolidated financial information on the Town’s primary activities, which include police, public works, parks and recreation, planning and general administration. While some of these activities are supported in part by charges for services and grants, the majority are financed by property taxes, sales taxes, franchise fees, and other governmental taxes and assessments such as the State Gas Tax, State Public Safety Sales Tax, and County-wide National Pollutant Discharge Elimination System (NPDES) Assessment.
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TOWN OF MORAGA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

MANAGEMENT DISCUSSION AND ANALYSIS
These statements report all assets, liabilities, and deferred inflows/outflows of resources using the full accrual basis of accounting similar to the accounting model used by private sector firms. Under this accounting model, all assets and all liabilities, including revenues and expenses for providing services, are recognized within the reporting period or soon after (60 days).

The Statement of Net Position – the difference between assets and liabilities – is one way to measure the Town’s financial health. Over time, increases or decreases in the Town’s net position is one indicator of whether its financial health is improving or declining. However, other non-financial factors must also be considered, such as changes in the Town’s property tax base, sales tax, and condition of the Town’s physical assets, including roads, facilities, and other infrastructure.

The Statement of Activities presents the Town’s revenue and expenses incurred for the year ended June 30, 2025. All financial activities of the Town are recorded here, including operational costs, capital project costs, depreciation, and accrued liabilities such as vacation, administrative leave, and comp time.

Fund Financial Statements
The Fund Financial Statements provide detailed information about the Town’s most significant funds, called major funds. The concept of major funds, and the determination of which are major funds, was established by Governmental Accounting Standards Board (GASB) Statement No. 34 and replaced the concept of combining like funds and presenting them in total. Therefore, each major fund is presented individually, with all non‐major funds combined in a single column on each fund statement. Subordinate schedules display these non‐major funds in more detail. Major funds present the major activities of the Town for the year. The General Fund is always considered a major fund, but other funds may change from year to year, due to the changes in the pattern of the Town’s activities.

The Fund Financial Statements, which include Governmental, Proprietary, and Fiduciary Funds, display the Town’s operations in more detail than the Government‐wide Financial Statements and focus primarily on the short‐term activities of the Town’s General Fund and other major funds.

Notes to the Financial Statements
The notes provide additional information that is necessary to acquire a full understanding of the data provided in the Government-wide and Fund Financial Statements. The Notes to the Financial Statements can be found on pages 43-72 of this report.

Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required and other supplementary information, such as the budgetary comparison information on the Town’s General Fund and each of the Town’s special revenue funds. The schedule of changes in the Town’s proportion of netpension liability, and schedules of the Town’s pension contributions to each plan are also included in this section.

This information is intended to provide additional details to support the basic financial statements. 6 202

TOWN OF MORAGA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

MANAGEMENT DISCUSSION AND ANALYSIS
Financial Highlights
Highlights for the fiscal year ended June 30, 2025 are noted as follows:

1. The Town’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources at the close of Fiscal Year (FY) 2024-25 with a Total Net Position of $95.26 million (Statement of Net Position, page 22). Of this amount, $7.61 million represents Unrestricted Net Position, which may be used to meet the government’s ongoing obligations to citizens and creditors.

2. As of the close of the current fiscal year, the Town’s Governmental Funds reported a combined ending fund balance of $19.17 million (Governmental Funds - Balance Sheet, pages26-27), consisting of the components detailed in Table 1:

Table 1.

Governmental Funds Balance FY2024-25
Non-spendable $0
Restricted 4,378,726
Committed 13,026,334
Assigned 1,392,386
Unassigned (Reserve) 367,873
Total Fund Balance at June 30, 2025 $19,165,319

3. The Town’s General Fund has a combined Total Fund Balance of $10.33 million (General Fund Combining Balance Sheets, page 82), of which $7.53 million is General Purpose and $2.78 million is Palos Colorados Developer Fees Fund. The Palos Colorados fund was established through a settlement agreement and classified as committed based on and subject to Town Council action on its use.

Government-Wide Activities
This section focuses on the Town’s net position and changes in net position of its governmental activities for the fiscal year ending June 30, 2025. As noted earlier, the Town’s total assets and deferred outflows of resources exceeded total liabilities and deferred inflows of resources by $95.26 million. This compares to a net position of $90.99 million in the prior year ended June 30, 2024, an increase of $4.29 million, or 4.7%. This increase is attributed primarily to capital projects.

Statement of Net Position
The detailed Statement of Net Position (Basic Financial Statements, page 22) is a snapshot of the Town’s financial position at the end of the FY 2023-25. Table 2 provides a summary of the Town’s net position at June 30, 2025 compared to the prior year.

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TOWN OF MORAGA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

MANAGEMENT DISCUSSION AND ANALYSIS
Table 2.

Statement of Net Position, FY 2023-24 Compared to FY 2024-25 FY 2023-24 FY 2024-25 % Change
Assets
Capital Assets $77,453,349 $84,931,163 9.65%
Other Assets 30,774,746 26,832,984 -12.81%
Total Assets 108,228,095 111,764,147 3.27%

Deferred Outflow of Resources
Related to Pensions 4,201,842 3,284,930 -21.82%
Total Deferred Outflow 4,201,842 3,284,930 -21.82%

Liabilities
Current Liabilities 2,666,489 1,979,481 -25.76%
Noncurrent Liabilities 14,481,985 14,349,466 -0.92%
Total Liabilities 17,148,474 16,328,947 -4.78%

Deferred Inflow of Resources
Related to Leases 3,527,698 3,154,834 -10.57%
Related to Pensions 757,086 301,409 -60.19%
Total Deferred Inflow 4,284,784 3,456,243 -19.34%

Net Position
Invested in Capital 72,922,208 80,859,614 10.88%
Restricted 6,822,097 6,808,095 -0.21%
Unrestricted 11,252,374 7,596,178 -32.49%
Total Net Position $90,996,679 $95,263,887 4.69%

Of the Town’s Total Net Position, 85% or $80.86 million is invested in capital assets (e.g., land, buildings, machinery, and equipment) and is reported net of related debt. Since these capital assets are used to provide services to the community, they may not be readily used to liquidate liabilities. An additional 7% or $6.79 million of the net position is restricted for future pension costs, capital projects, debt service and special revenue projects, and 8% or $7.61 million of the Town’s net position is unrestricted.

The governmental activities total liabilities of $16.33 million represent outstanding obligations for operations, capital projects, deposits held for development projects, long-term debt and net pension liability. A portion of the governmental activities net position represents resources that are subject to restrictions on how they may be used. Total liabilities decreased by about $820,000 or less than 5% from FY 2023-24 compared to FY 2024-25.

At the end of the current fiscal year, the Town reported a positive and improved overall financial position. 8 204

TOWN OF MORAGA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

MANAGEMENT DISCUSSION AND ANALYSIS
Statement of Activities
The Statement of Activities demonstrates how much each activity is funded through special revenues and assessments, fees, and grants. It illustrates the relative expense supported by the Town’s general discretionary revenues (i.e., property taxes, sales tax, and franchise fees). Table 3 is information from the Statement of Activities presented in an alternative format and comparing the Town’s activities at the end of FY 2024-25 with that of prior year.

Table 3.

Statement of Activities FY 2023-24 Compared to FY 2024-25 FY 2023-24 FY 2024-25 % Change
Program Revenues:

Charges for Services $2,896,454 $2,978,356 2.83%
Operating Grants and Contributions 2,210,181 2,081,706 -5.81% Capital Grants and Contributions 975,495 2,492,007 155.46% Total Program Revenues 6,082,130 7,552,069 24.17%
General Revenues:

Property Taxes 6,504,022 6,735,840 3.56%
Sales Taxes 4,042,457 4,032,280 -0.25%
Franchise Fees 953,909 975,829 2.30%
Interest 1,096,121 1,159,144 5.75%
Other
Total General Revenues 12,596,509 12,903,092 2.43%
Total Revenues 18,678,639 20,455,161 9.51%

Program Expenses:

General Administration 3,536,993 3,971,341 12.28%
Planning 891,736 923,104 3.52%
Public Safety 3,677,948 3,781,249 2.81%
Public Works 4,686,815 5,076,784 8.32%
Parks and Recreation 2,154,818 2,289,775 6.26%
Interest on Long Term Debt 94,504 145,700 54.17%
Total Expenses 15,042,814 16,187,953 7.61%

Change in Net Position 3,635,825 4,267,208 17.37%

Net Position, Beginning of the Year 87,360,854 90,996,679 4.16% Net Position, End of the Year $90,996,679 $95,263,887 4.69% 9 205

TOWN OF MORAGA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

MANAGEMENT DISCUSSION AND ANALYSIS
Revenues
When compared to the previous year, overall total revenues increased by $1.78 million or approximately 9.5%.

A significant portion of the increase is in Capital Grants and Contributions. One-time capital grants and grant revenue can fluctuate from year to year depending on the timing of grant funded projects. Total General Revenues increased by 2.5% from the prior year. Significant changes in General Revenues compared to prior years include:
• Property taxes increased by about $232,000 or 3.6%, due to increases in assessed property values, and • Interest revenues increased by approximately $65,000 or 6%, due to favorable interest rates on the Town’s bank accounts.

Expenditures
Overall expenses as shown in the Statement of Activities increased by $1.13 million or 7.5%. General Administration and Public Works had the largest increases in expenditures. Increases in expenditures are due to Departments being fully staffed during FY 2024-25, increases in insurance premiums and pension costs, and expenditures related to the update of the Town’s General Plan. Additionally, interest on long term debt increased by $52,000 or 54.17% due to the refinancing of the Town’s 2013 Certificates of Participation in December 2023.

Fund Financial Statements and Financial Analysis
Fund Financial Statements provide more information about the Town’s finances by fund group. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town can be divided into three categories: governmental, proprietary, or fiduciary. When considering the relative health of the Town’s finances, it is useful to look more closely at the fund balances for each group.

Governmental Funds
Governmental Funds include the General Fund group, which is comprised of the Town’s discretionary resources (e.g., property taxes, sales and use taxes, franchise fees) and functions as the general operating fund. The General Fund group includes the General Purpose Fund, One-Time Developer Fee Fund (i.e., Palos Colorados funds) and Deposit Funds.

In addition to General Fund, Town of Moraga recognizes the following funds as Major Funds:
• Measure K – established to separately account for the use of the one-cent added local sales tax approved by the voters in 2012 for 20 years.
• Construction in Progress Fund – established to capture all capital project expenditures and corresponding revenues.
• Debt Service Funds – accounts for the proceeds from and the annual debt service payments for the 2013 and 2023 Certificates of Participation.
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TOWN OF MORAGA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

MANAGEMENT DISCUSSION AND ANALYSIS
• Other Governmental Funds - include the COPS/SLESF (Citizens Option for Public Safety/Supplemental Law Enforcement Services Fund), Gas Tax, Measure J, Park Dedication, Lighting Assessment District, Traffic Safety, NPDES (Clean Water Act – National Pollutant Discharge Elimination System), Asset Forfeiture, Public Safety Sales Tax (Proposition 172), Street Lighting, Pavement Management Program, Refuse Vehicle Impact Fees, Public Safety Grants, Art in Public Spaces, Comcast PEG Restricted, ARPA, Grants, Advance Planning Fees, and Developer Impact Fees funds.

Fund Balance
Beginning with the fiscal year ended June 30, 2011, the Town implemented GASB Statement Number 54, Fund Balance Reporting and Governmental Fund Type Definitions. GASB 54’s intent is to provide more clearly defined fund balance classifications to make the nature and extent of the constraints placed on a government’s fund balances more transparent. Town Council adopted Resolution No. 24-2011 on June 22, 2011, adopting the GASB 54 fund balance classification definitions.

GASB 54 places fund balance under five possible classifications: non-spendable, restricted, committed, assigned, and unassigned. Only the fund balance in the General Fund can be classified as unassigned because all other funding sources come with restrictions for use by legislative action at the local, state or federal level.

As shown in the Balance Sheet on pages 26-27, as of the fiscal year ended June 30, 2025, the Town’s Governmental Fund types included combined ending fund balance of $19.17 million. Of that total, 23% or $4.38 million is classified as restricted (i.e., Certificates of Participation, debt service, grants, or restricted by legislative action at the local, state or federal level), 68% or $13.03 million is committed (i.e., constrained by formal action of the Town Council and includes the required reserve), 7% or $1.39 million is classified as assigned, and 2% or $367,872 is classified as unassigned as of June 30, 2025.

The detailed Statement of Revenues, Expenditures and Changes in Fund Balances (Basic Financial Statements, pages 30-31) presents changes to fund balances resulting from the FY 2024-25 actual revenue and expenditure activity. A summary of net changes by fund group is shown in Table 4.

Table 4.

Summary of Net Changes to Fund Balance by Fund Group
Fund Balance General
Fund
Measure K
Local Funding
Construction
in Progress
Debt
Service
Other Gov’t
Funds
Total Gov’t
Funds
Beginning
Fund Balance $ 11,142,019 $ 2,755,954 $ 3,084,297 $ 29,429 $ 5,747,736 $ 22,759,435 Ending Fund
Balance 10,330,026 1,057,482 2,048,520 - 5,729,291 19,165.319 Net Change $ (811,993) $ (1,698,472) $ (1,035,777) $ (29,429) $ (18,445) $ (3,594,116) 11 207

TOWN OF MORAGA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

MANAGEMENT DISCUSSION AND ANALYSIS
The total fund balance of the Town decreased by $3.59 million or 16%. The decrease can be attributed in part to a decrease in all fund groups, but primarily due to Measure K and Construction in Progress funds, due to the completion of large capital projects in FY 2024-25.

The fund balance of the General Fund decreased by approximately $812,000 due to the transfer out of $1 million to the Asset Replacement Fund, and $500,000 to the Section 115 Pension Trust, which was offset by lower than budgeted operating expenditures.

The fund balance of the Debt Service Fund decreased by 100% or $29k due to the refinancing of the 2013 Certificates of Participation in December 2023.

The fund balance of the Other Government Funds decreased by less than 1% or about $18,000 due to decreases in Gas Tax, Refuse Vehicle Impact Fee, ARPA and LFFA Funds and offset by an increase in the Asset Replacement Fund.

Proprietary Funds
The Town’s single Proprietary Fund is an Internal Service Fund used to account for funds deposited into an irrevocable trust for the purpose of funding pension costs. While the Town established its Section 115 Pension Trust in December 2022, this fund was established in FY 2023-24. As of June 30, 2025, this fund had an ending net position of $2,429,368. The entire net position is classified as restricted, as the funds can only be used for pension costs.

General Fund Budgetary Highlights
General Fund actual revenues were under budget when compared to the final amended budget by about $100,000 (less than 1%) primarily due to Sales Tax, Department Revenues, and Other revenues coming in lower than budgeted. General Fund expenditures were under budget when compared to the final amended budget by about $999,000 (7.76%) due primarily to savings in General Government, Public Works, Planning and Public Safety.

FY 2024-25 General Fund Revenues
The Town’s general operations depend heavily on property taxes, department revenues (charges for services), and sales taxes. The chart below shows the history of Property Tax, Charges for Services, Sales Tax and Franchise Fees for the Town’s General Fund.

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TOWN OF MORAGA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

MANAGEMENT DISCUSSION AND ANALYSIS
Chart 1.

History of General Fund Revenues
Property Taxes
Historically, property tax revenues remain stable with a slight increase annually. Table 5 provides a three-year history of the Town’s property tax revenue receipts. Property tax revenues include ad valorem, homeowner’s property tax relief, and real property transfer taxes. For FY 2024-25, the 4% increase is attributed to an increase in property assessed valuations and real estate transfer taxes that are dependent upon real estate sales activity.

Table 5.

History of Property Tax Revenues
FY 2022-23 FY 2023-24 % Change
FY23 to FY24 FY 2024-25 % Change FY24 to FY25
Property Tax $ 5,485,603 $ 5,712,517 4.14% $ 5,951,804 4.19% Charges for Services
Charges for Services comprise about 21% of General Fund Revenues and have continued to increase since FY 2022-23. Charges for services are revenues received by Town Departments to cover the cost of services provided.

Planning & Public Works revenues include recovery for staff time related to the issuance of permits, development activities, and capital projects. Parks & Recreation revenues are related to special events and fees for classes and activities, and Police department revenues are from various fees and permits. In FY 2024-25, Police department revenues also included Tobacco Grant revenue which offset the cost of a police officer providing tobacco prevention education and related services. Table 6 provides a three year history of charges for services revenue by Department.
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TOWN OF MORAGA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

MANAGEMENT DISCUSSION AND ANALYSIS
Table 6.

History of Charges for Services Revenues
FY 2022-23 FY 2023-24 % Change FY23
to FY24 FY 2024-25 % Change FY24 to FY25
Planning $ 525,967 $ 498,978 -5.13% $ 561,408 12.5%
Public Safety 111,755 66,645 -40.37% 219,924 230.0%
Public Works 438,211 507,203 15.74% 667,546 31.6%
Parks and Recreation 778,405 969,184 24.51% 995,489 2.7% Charges for Services $1,854,338 $2,042,010 10.12% $2,444,367 19.7% Sales Taxes
Sales tax revenue makes up 11% of General Fund revenues. The Town receives two types of sales taxes: BradleyBurns Uniform Local Sales and Use Tax, and a Local Transactions and Use Tax (add-on or locally controlled Measure K). The Bradley-Burns Uniform Local Sales and Use Tax is generated from the sales transactions located within the Town, and also includes a portion of sales from the County pool, and sales tax in-lieu. The Town’s sales and use tax revenues have experienced modest changes during economic downturns and overall have remained relatively stable, declining just over 1.5% in FY 2024-25. Table 7 provides a three-year history of the Town’s Bradly Burns sales tax revenue.

Table 7.

History of Sales Tax Revenues
FY 2022-23 FY 2023-24 % Change
FY23 to FY24 FY 2024-25 % Change FY24 to FY25
Bradley-Burns Sales Tax $ 1,295,778 $ 1,300,382 0.36% $ 1,279,510 -1.61% The Town’s Measure K one-cent transactions and use tax is accounted for in a separate fund, outside of the General Fund.
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TOWN OF MORAGA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

MANAGEMENT DISCUSSION AND ANALYSIS
Franchise Fees
Franchise fees comprise about 9% of the Town’s General Fund revenues. Franchise fees include those from Central Contra Costa Solid Waste Authority (also known as RecycleSmart), Pacific Gas & Electric (PG&E) and Comcast Cable. Table 8 provides a three-year history of the Town’s franchise fees by source.

Table 8.

History of Franchise Fee Revenues
FY 2022-23 FY 2023-24 % Change
FY23 to FY24 FY 2024-25 % Change FY24 to FY25
RecycleSmart $ 373,862 $ 396,583 6.08% $ 426,724 7.60%
PG&E 251,137 273,475 8.89% 290,275 6.14%
Comcast 292,591 283,852 -2.99% 258,829 -8.82%
Franchise Fees $ 917,590 $ 953,910 3.96% $ 975,829 2.30% Other revenues and sources used to support general operations include charges for services for planning and public works fees and projects, and user charges for parks and recreation programs. Transfers-in, based upon their respective restrictions include gas tax, and NPDES (Clean Water Act - National Pollutant Discharge Elimination System) funds.

Specific to the General Fund, Chart 2 illustrates the major revenues sources (using figures from the Statement of Revenues, Expenditures and Changes in Fund Balances on pages 30-31).

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TOWN OF MORAGA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

MANAGEMENT DISCUSSION AND ANALYSIS
Chart 2.

FY 2024-25 General Fund Revenues ($11.60 million)
The Town proactively addresses issues that it has some measure of control over; however, external factors exist over which the Town has little or no control. While the Town relies heavily on property tax for ongoing operations, it receives a much lower portion of property tax as compared to other communities. Most homeowners may know that Proposition 13, passed by California voters in 1978, fixed the property tax rate at 1% of the assessed value of a home, plus any assessment bond approved by popular vote. Proposition 13 also froze how the property tax dollars are distributed among all the benefactors including the Town government, Moraga-Orinda Fire District, schools, Central Contra Costa Solid Waste Authority, East Bay Municipal Utility District, East Bay Regional Park District, BART and Contra Costa County. The distribution of property tax dollars set under Prop. 13 was based on what existed in 1976. At that time, the Town was a young "minimal government" jurisdiction, which meant that the Town government was not spending, or receiving, a lot of tax dollars. Based on these conditions the Town’s proportion of the property tax was set at 5.2%.

FY 2024-25 General Fund Expenditures
The Town strives to keep its operating expenses low. Chart 3 illustrates the relative distribution of the Town’s General Fund expenditures (using figures from the Statement of Revenues, Expenditures, and Changes in Fund Balances on pages 28-29). Expenditures under General Administration include the Town Council, Town Manager, Town Clerk, and Administrative Services departments. General Administration also includes the Town’s insurance premiums, CalPERS unfunded accrued liability payments, and contracted services for legal and information technology.

Property Tax,
$5,951,804 , 51%
Sales
Tax,$1,279,510, 11%
Franchise Fees,
$975,829 , 9%
Charges for Services,
$2,444,367 , 21%
Interest & Others,
$949,419 , 8%
16 212

TOWN OF MORAGA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

MANAGEMENT DISCUSSION AND ANALYSIS
Chart 3.

FY 2023-24 General Fund Expenditures ($11.88 million)
The Town contracts with Contra Costa County for a variety of services including animal control services, police dispatch, forensics, jail and booking services, Cal-ID, and ARIES maintenance. These contracted services are part of the Police Department expenditures. Expenditures for signal and streetlight maintenance services provided by the Contra Costa County are part of the Public Works Department. Table 9 shows the historical costs of services provided by Contra Costa County.

General Administation,
$3,344,697 , 28%
Planning & Permits ,
$786,520 , 7%
Public Safety,
$3,699,124 , 31%
Public Works,
$2,056,147 , 17%
Parks & Recreation,
$1,994,172 , 17%
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Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

MANAGEMENT DISCUSSION AND ANALYSIS
Table 9.

Cost of Services Provided by Contra Costa County
Service Type FY 2022-23 FY 2023-24 % Change
FY23 to FY24 FY 2024-25 % Change FY24 to FY25
Animal Services $ 134,055 $ 151,250 12.8% $ 184,464 22.0% Police Dispatch 171,586 165,197 -3.7% 192,559 16.6%
Cal-ID 24,161 26,561 9.9% 29,044 9.3%
ARIES Maintenance 8,770 9,770 11.4% 8,770 -10.2%
Forensic Services 17,826 16,246 -8.9% 20,355 25.3%
Traffic Signal Maintenance 34,528 38,392 11.2% 97,370 153.6% Total Expenditures $ 390,926 $ 407,416 4.2% $ 532,562 30.7% Capital Assets & Long-Term Debt
Capital Assets
The Town had a total capital outlay of $10.29 million in the Governmental Funds (Statements of Revenues, Expenditures, and Changes in Fund Balances, pages 30-31). Table 10 details the major capital projects during FY 2024-25.

Table 10.

FY 2024-25 Major Capital Projects
Project Number Project Name Amount
023-401 2023 Pavement Rehabilitation $ 6,742,242
021-205 Creeks & Drainage Design 715,968
023-411 Moraga and Canyon Road 511,402
023-415 Safety Improvements - HSIP 390,077
Total $ 8,359,688
The Town’s investment in capital assets as of June 30, 2025 totaled $84.93 million as compared to $77.45 million in FY 2023-24 (Basic Financial Statements, Note 5, page 57). This investment in capital assets includes land, buildings and improvements, roadways, storm drains, parks and recreation, and equipment and furniture.

18 214

TOWN OF MORAGA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025

MANAGEMENT DISCUSSION AND ANALYSIS
Long-Term Debt
The Town’s debt totals $4.07 million as of June 30, 2025, compared to $4.49 million in the prior year (Basic Financial Statements, Note 6, page 58). The debt is attributed to $3.97 million Certificates of Participation issued in 2023 for Infrastructure Improvements, including streets and related infrastructure.

Table 11.

Long Term Debt
Governmental Activities Original
Issue
Balance June
30, 2023 Retirements Balance June 30, 2024
Current
Portion
2023 Certificate of Participation $ 3,970,000 $ 3,970,000 $ 360,000 $ 3,610,000 $ 380,000 Add: Unamortized Bond Premium 542,898 515,749 54,200 461,549 Total Debt $4,512,898 $4,485,749 $414,200 $4,071,549 $380,000 Request for Information
In this Management’s Discussion and Analysis, we have attempted to provide the reader with a narrative overview and analysis of the Town’s financial statements for the fiscal year ended June 30, 2025. Readers are encouraged to examine the Basic Financial Statements, Notes and Supplemental Information contained in this report for additional detail.

Questions concerning any information provided in this report or requests for additional financial information should be directed to:

Town of Moraga
Administrative Services Director
Administrative Services Department
329 Rheem Boulevard
Moraga, CA 94566
19 215
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216

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

GOVERNMENT-WIDE FINANCIAL STATEMENTS
The Statement of Net Position and the Statement of Activities summarize the entire Town’s financial activities and financial position. They are prepared on the same basis as is used by most businesses, which means they include all the Town’s assets and all its liabilities, as well as all its revenues and expenses. This is known as the full accrual basis - the effect of all the Town’s transactions is taken into account, regardless of whether or when cash changes hands, but all material internal transactions between Town funds have been eliminated.

The Statement of Net Position reports the difference between the Town’s total assets and the Town’s total liabilities, including all the Town’s capital assets and all its long-term debt. The Statement of Net Position presents information in a way that focuses the reader on the composition of the Town’s net position, by subtracting total liabilities from total assets.

The Statement of Net Position summarizes the financial position of all of the Town’s Governmental Activities in a single column.

The Town’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue and Capital Projects Funds.

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

The Statement of Activities presents the Town’s expenses first, listed by program. Program revenues—that is, revenues which are generated directly by these programs—are then deducted from program expenses to arrive at the net expense of each governmental program. The Town’s general revenues are then listed in the Governmental Activities and the Change in Net Position is computed and reconciled with the Statement of Net Position.
21 217

TOWN OF MORAGA

STATEMENT OF NET POSITION
JUNE 30, 2025
Governmental
Activities
ASSETS
Current assets:

Cash and investments (Note 3) $16,711,191
Restricted cash and investments (Note 3) 3,368,018
Accounts receivable 3,556,172
Total current assets 23,635,381
Noncurrent assets:

Leases receivable (Note 7) 3,197,603
Capital assets (Note 5)
Capital assets, not being depreciated 22,924,115
Capital assets, being depreciated, net of accumulated depreciation 62,007,048 Total capital assets, net 84,931,163
Total noncurrent assets 88,128,766
Total Assets 111,764,147

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions (Note 8) 3,284,930

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 502,428
Deposits payable 951,320
Unearned revenue 15,850
Accrued compensated absences - due within one year (Note 1G) 129,883 Certificates of participation - due within one year (Note 6) 380,000 Total current liabilities 1,979,481
Noncurrent liabilities:

Accrued compensated absences - due in more than one year (Note 1G) 519,534 Certificates of participation - due in more than one year (Note 6) 3,691,549 Net pension liability (Note 8) 10,138,383
Total noncurrent liabilities 14,349,466
Total Liabilities 16,328,947

DEFERRED INFLOWS OF RESOURCES
Related to leases (Note 7) 3,154,834
Related to pensions (Note 8) 301,409
Total Deferred Inflows of Resources 3,456,243
NET POSITION (Note 9)
Net investment in capital assets 80,859,614
Restricted for:

Pension costs 2,429,368
Capital projects 1,465,482
Special revenue projects:

Streets and roads 2,639,068
Public safety 188,774
Other projects 68,882
Unrestricted 7,612,699
Total Net Position $95,263,887
See accompanying notes to financial statements
22 218

TOWN OF MORAGA

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

General administration $3,971,341 $477,869 $915,098 ($2,578,374) Planning 923,104 601,267 503,465 181,628
Public safety 3,781,249 232,445 234,594 (3,314,210)
Public works 5,076,784 645,086 428,549 $2,492,007 (1,511,142) Parks and recreation 2,289,775 1,021,689 (1,268,086)
Interest on long-term debt 145,700 (145,700)
Total 16,187,953 2,978,356 2,081,706 2,492,007 (8,635,884) Total $16,187,953 $2,978,356 $2,081,706 $2,492,007 (8,635,884) General revenues:

Taxes:

Property tax 6,735,839
Sales tax 4,032,280
Franchise tax 975,829
Interest 1,159,144
Total General Revenues 12,903,092
Change in Net Position 4,267,208
Net Position - Beginning 90,996,679
Net Position - Ending $95,263,887
See accompanying notes to financial statements
23 219
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220

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

FUND FINANCIAL STATEMENTS

GOVERNMENTAL FUNDS
Major funds are defined generally as having significant activities or balances in the current year.

The funds described below were determined to be Major Funds by the Town for fiscal year 2025.

Individual Other Governmental Funds may be found in the Supplemental Section.

GENERAL FUND
The General Fund is the Town’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

MEASURE K LOCAL FUNDING SPECIAL REVENUE FUND
This fund was established to separately account for Measure K, the one-cent added local sales tax approved by the voters in 2012 for 20 years. The revenues have been earmarked for pavement management.

CONSTRUCTION IN PROGRESS
The Construction In Progress Fund is a fund used to capture all capital project expenditures and corresponding revenues.

DEBT SERVICE FUND
The Debt Service Fund was established to account for the proceeds from the issuance of long-term debt, as well as annual debt service payments.
25 221

TOWN OF MORAGA

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2025
Debt
General Measure K Construction Service
Fund Local Funding In Progress Fund
ASSETS
Cash and investments (Note 3) $9,970,495 $575,291 $980,786 Restricted cash and investments (Note 3) 938,650
Accounts receivable 509,632 482,191 1,952,547
Lease receivable (Note 7) 3,197,603
Total Assets $14,616,380 $1,057,482 $2,933,333

LIABILITIES
Accounts payable and accrued liabilities $180,200 $255,098 Deposits payable 951,320
Unearned revenue 15,850
Total Liabilities 1,131,520 270,948

DEFERRED INFLOWS OF RESOURCES
Related to leases (Note 7) 3,154,834
Unavailable revenue 613,865
Total Deferred Inflows of Resources 3,154,834 613,865
FUND BALANCES (Note 9)
Nonspendable
Restricted 16,520
Committed 9,610,729 2,048,520
Assigned 334,904 $1,057,482
Unassigned 367,873
Total Fund Balances 10,330,026 1,057,482 2,048,520
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $14,616,380 $1,057,482 $2,933,333 See accompanying notes to financial statements
26 222
Other Total
Governmental Governmental
Funds Funds
$5,184,619 $16,711,191
938,650
611,802 3,556,172
3,197,603
$5,796,421 $24,403,616
$67,130 $502,428
951,320
15,850
67,130 1,469,598
3,154,834
613,865
3,768,699
4,362,206 4,378,726
1,367,085 13,026,334
1,392,386
367,873
5,729,291 19,165,319
$5,796,421 $24,403,616
27 223
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224

TOWN OF MORAGA

RECONCILIATION OF THE

GOVERNMENTAL FUNDS - BALANCE SHEET

WITH THE

STATEMENT OF NET POSITION
JUNE 30, 2025
Total fund balances - governmental funds $19,165,319
Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds above because of the following:

CAPITAL ASSETS TRANSACTIONS
Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental Funds. 84,931,163

NON-CURRENT REVENUES
Revenues which are unavailable on the Fund Balance Sheets because they are not available currently are taken into revenue in the Statement of Activities 613,865

LONG-TERM ASSETS, LIABILITIES AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES The assets, deferred outflows of resources, liabilities and deferred inflows of resources below are not due and payable in the current period and therefore are not reported in the Funds:

Deferred outflows of resources related to pensions 3,284,930 Compensated absences (649,417)
Net pension liability (10,138,383)
Certificates of participation (4,071,549)
Deferred inflows of resources related to pensions (301,409) Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds. The assets and liabilities of the internal service funds must be added to the Statement of Net Position 2,429,368 NET POSITION OF GOVERNMENTAL ACTIVITIES $95,263,887
See accompanying notes to financial statements
29 225
Debt
General Measure K Construction Service
Fund Local Funding In Progress Fund

REVENUES
Property taxes and assessments $3,342,459
Property tax - in lieu 2,457,473
Sales and use tax 1,279,510
Sales tax - public safety
Sales tax - 1% local add-on (Measure K) $2,669,802
Franchise fees 975,829
Real property transfer fees 151,872
Motor vehicle license fees 27,282
Planning and permits 561,408
Interest 484,929 78,106 ($1)
Property rentals 120,256
Parks and recreation 995,489
Police services 219,924
Public works services 667,546
Intergovernmental 24,500 $2,392,396
Fines, forfeitures and penalties
Other revenues 292,452
Total Revenues 11,600,929 2,747,908 2,392,396 (1)

EXPENDITURES
Current operations:

General administration 3,344,697
Planning 786,520
Public safety 3,699,124
Public works 2,056,147 139,286
Parks and recreation 1,994,172
Debt service:

Principal 360,000
Interest 199,900
Capital outlay 9,998,091
Total Expenditures 11,880,660 139,286 9,998,091 559,900

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (279,731) 2,608,622 (7,605,695) (559,901)

OTHER FINANCING SOURCES (USES)
Debt issuance proceeds
Transfers in (Note 4) 967,738 480,372 7,206,467 553,840 Transfers out (Note 4) (1,500,000) (4,787,466) (636,549) (23,368) Total Other Financing Sources (Uses) (532,262) (4,307,094) 6,569,918 530,472 NET CHANGE IN FUND BALANCES (811,993) (1,698,472) (1,035,777) (29,429) BEGINNING FUND BALANCES 11,142,019 2,755,954 3,084,297 29,429 ENDING FUND BALANCES $10,330,026 $1,057,482 $2,048,520

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS

TOWN OF MORAGA
FOR THE YEAR ENDED JUNE 30, 2025
See accompanying notes to financial statements
30 226
Other Total
Governmental Governmental
Funds Funds
$935,907 $4,278,366
2,457,473
1,279,510
82,968 82,968
2,669,802
975,829
151,872
27,282
561,408
236,953 799,987
120,256
995,489
12,520 232,444
667,546
2,049,319 4,466,215
39,931 39,931
$119,346 411,798
3,476,944 20,218,176
36,426 3,381,123
15,112 801,632
29,340 3,728,464
351,838 2,547,271
11,731 2,005,903
360,000
199,900
289,908 10,287,999
734,355 23,312,292
2,742,589
(3,094,116)
1,202,277 10,410,694
(3,963,311)(10,910,694)
(2,761,034)(500,000)
(18,445)(3,594,116)
5,747,736 22,759,435
$5,729,291 $19,165,319
31 227

TOWN OF MORAGA

RECONCILIATION OF THE

NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS

WITH THE

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

NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS ($3,594,116) Governmental funds report capital outlays as expenditures while governmental activities reports depreciation as expense to allocate those expenditures over the life of the assets:

The capitalized expenditures are therefore added back to fund balance 10,406,188 Depreciation and amortization expense is deducted from fund balance (2,928,374) Long-Term Debt Proceeds and Payments:

Amortization of bond premium is an expenditure in the governmental funds, but the amortization reduces long-term liabilities in the Statement of Net Position. 54,200 Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. 360,000 Some expenses reported in the Statement of Activities do not require the use of the current financial resources and therefore are not reported as expenditures in governmental funds:

Change in accrued compensated absences (238,418)
Change in subscription asset 45,392
Net pension liability and deferred outflows/inflows of resources related to pensions (572,181) Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds. The assets and liabilities of the internal service funds must be added to the Statement of Net Position 734,517
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $4,267,208 See accompanying notes to financial statements
32 228

TOWN OF MORAGA

GENERAL FUND

STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

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

REVENUES
Property taxes and assessments $3,206,945 $3,397,420 $3,342,459 ($54,961) Property tax - in lieu 2,349,162 2,349,162 2,457,473 108,311 Sales and use tax 1,382,350 1,382,350 1,279,510 (102,840) Franchise fees 979,338 979,338 975,829 (3,509)
Real property transfer fees 206,000 206,000 151,872 (54,128) Motor vehicle license fees 20,200 20,020 27,282 7,262
Planning and permits 619,545 614,945 561,408 (53,537)
Interest 250,000 450,000 484,929 34,929
Property rentals 103,000 103,000 120,256 17,256
Parks and recreation 883,521 1,058,041 995,489 (62,552) Police services 95,941 95,941 219,924 123,983
Public works services 450,400 585,400 667,546 82,146
Intergovernmental 5,000 24,500 19,500
Other revenues 391,181 454,781 292,452 (162,329)
Total Revenues 10,937,583 11,701,398 11,600,929 (100,469) EXPENDITURES:

Current operations:

General government 3,472,864 3,705,812 3,344,697 361,115 Planning 908,475 915,388 786,520 128,868
Public safety 3,944,148 3,996,207 3,699,124 297,083
Public works 2,016,151 2,250,792 2,056,147 194,645
Parks and recreation 1,792,536 2,011,812 1,994,172 17,640 Total Expenditures 12,134,174 12,880,011 11,880,660 999,351

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,196,591) (1,178,613) (279,731) 898,882

OTHER FINANCING SOURCES (USES)
Transfers in 1,377,903 1,494,122 967,738 (526,384)
Transfers out (116,219) (1,626,219) (1,500,000) 126,219 Total Other Financing Sources (Uses) 1,261,684 (132,097) (532,262) (400,165) NET CHANGE IN FUND BALANCE $65,093 ($1,310,710) (811,993) $498,717 BEGINNING FUND BALANCE 11,142,019
ENDING FUND BALANCE $10,330,026
See accompanying notes to financial statements
33 229

TOWN OF MORAGA

MEASURE K LOCAL FUNDING

STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

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

REVENUES
Sales tax - 1% local add-on (Measure K) $2,653,000 $2,653,000 $2,669,802 $16,802 Interest 78,106 78,106
Total Revenues 2,653,000 2,653,000 2,747,908 94,908
EXPENDITURES:

Current operations:

Public Works 200,000 139,286 60,714
Total Expenditures 200,000 139,286 60,714

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 2,653,000 2,453,000 2,608,622 155,622

OTHER FINANCING SOURCES (USES)
Transfers in 480,372 480,372
Transfers out * (5,593,000) (4,787,466) 805,534
Total Other Financing Sources (Uses) (5,593,000) (4,307,094) 1,285,906 NET CHANGE IN FUND BALANCE $2,653,000 ($3,140,000) (1,698,472) $1,441,528 BEGINNING FUND BALANCE 2,755,954
ENDING FUND BALANCE $1,057,482
See accompanying notes to financial statements
* Funds received by this fund are primarily transferred to other funds for capital projects eligible for Measure K funding. See Note 4.A. in the Notes to Basic Financial Statements for further details. 34 230

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

PROPRIETARY FUNDS
Proprietary funds account for Town operations financed and operated in a manner similar to a private business enterprise. The Town only has one Internal Service Fund, used to account for funds deposited into an irrevocable trust for the purpose of funding pension costs. 35 231

TOWN OF MORAGA

PROPRIETARY FUND - INTERNAL SERVICE

STATEMENT OF NET POSITION
JUNE 30, 2025
Governmental
Activities
Internal Service
Fund -
PARS Section
115
ASSETS
Restricted cash and investments (Note 3) $2,429,368
Total Assets 2,429,368

NET POSITION
Restricted for pension benefits $2,429,368
See accompanying notes to financial statements
36 232

TOWN OF MORAGA

PROPRIETARY FUND - INTERNAL SERVICE

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR THE YEAR ENDED JUNE 30, 2025
Governmental
Activities
Internal Service
Fund -
PARS Section
115

NONOPERATING REVENUES
Interest $238,901
Total Revenues 238,901

NONOPERATING EXPENSES
Interest fees 4,384
Total Expenses 4,384
Transfers in from other funds 500,000
Total Other Financing Sources (Uses) 500,000
NET CHANGE IN FUND BALANCES 734,517
BEGINNING NET POSITION 1,694,851
ENDING NET POSITION $2,429,368
See accompanying notes to financial statements
37 233

TOWN OF MORAGA

PROPRIETARY FUND - INTERNAL SERVICE

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2025

CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:

Interfund receipts $500,000
Interest fees (4,384)
Cash flows from noncapital financing activities 495,616

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 238,901
Cash flows from investing activities 238,901
Net increase in cash and cash equivalents 734,517
Cash and investments, beginning of year 1,694,851
Cash and investments, end of year $2,429,368
See accompanying notes to financial statements
38 234

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

FUND FINANCIAL STATEMENTS

FIDUCIARY FUNDS
Custodial Funds report resources, not in a trust, that are held by the Town for other parties outside of the Town’s reporting entity. Specific activities in the Custodial Funds include the contributions and expenses related to Commons Park and memorial benches, skatepark maintenance, and the Moraga Youth Involvement Committee.
39 235

TOWN OF MORAGA

FIDUCIARY FUNDS

STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2025
Custodial
Funds
ASSETS
Cash and investments (Note 3) $169,908
Accounts receivable 501
Total Assets 170,409

LIABILITIES
Deposits payable 3,086
Total Liabilities 3,086

NET POSITION
Restricted for:

Held for community programs $167,323
See accompanying notes to financial statements
40 236

TOWN OF MORAGA

FIDUCIARY FUNDS

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2025
Custodial
Funds
ADDITIONS:

Community donations $14,636
Commons patio bricks 8,282
Other revenue 4,621
Total Additions 27,539
DEDUCTIONS:

Contributions to others 100,000
Other expenses 2,333
Total Deductions 102,333
Change in Net Position (74,794)
BEGINNING NET POSITION 242,117
ENDING NET POSITION $167,323
See accompanying notes to financial statements
41 237
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238

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Town of Moraga was incorporated in November 1974. The Town operates under a Council-Manager form of government and provides the following services: public safety (police), highways and streets, culture-recreation, public improvements, planning and zoning, and general administrative services.

A. Reporting Entity
The Basic Financial Statements of the Town include only the financial activities of the Town, which has no component units.

B. Basis of Presentation
The Town’s Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.

These Statements require that the financial statements described below be presented.

Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the reporting government as a whole. These statements include the financial activities of the overall Town government, except for fiduciary activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions.

The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the Town’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function.

Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

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

C. Major Funds
The Town’s major governmental funds are identified and presented separately in the fund financial statements. All other funds, called other governmental funds, are combined and reported in a single column, regardless of their fund-type.

43 239

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Major Funds (Continued)
Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The Town may also select other funds it believes should be presented as major funds.

The Town reported the following major governmental funds in the accompanying financial statements:

The General Fund is the primary operating fund of the Town and is always classified as a major fund.

It is used to account for all financial resources of the general government, except those required to be accounted for in the other funds.

The Measure K Local Funding Special Revenue Fund was established in FY 2020-21 to separately account for Measure K, the one-cent added local sales tax approved by the voters in 2012 for 20 years.

The Construction In Progress Fund is a capital project fund used to capture all capital project expenditures and corresponding revenues.

The Debt Service Fund was established to account for the proceeds from the issuance of long-term debt, as well as annual debt service payments.

In addition, the Town reports the following funds:

Proprietary Fund Type - Internal Service Funds are used to account for the financing of goods or services provided by one department of the Town to other departments. The Town has one Internal Service Fund, the PARS Section 115 Fund, used to accumulate funding for future pension costs. This fund is to provide annual payments to PERS that are needed to offset the impact of smoothing or negative amortization of the City’s Unfunded Pension Liability.

Fiduciary Funds – are used to report assets held in a custodial capacity for others and therefore are not available to support Town programs. The reporting focus is on net position and changes in net position and is reported using accounting principles similar to proprietary funds. Since these assets are being held for the benefit of a third party, these funds are not incorporated in the government-wide statements.

The Town reports the following fiduciary funds:

Custodial Funds is a clearing type funds for the collection of taxes or deposits held, on behalf of individuals, private organizations and other governments. Specific activities in the Custodial Funds include the contributions and expenses related to Commons Park and memorial benches, skatepark maintenance, and the Moraga Youth Involvement Committee. The financial activities of these funds are excluded from the Government-wide financial statements, and are presented in a separate Fiduciary Fund financial statements.

44 240

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Basis of Accounting
The government-wide, propriety fund and fiduciary fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

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

Proceeds of governmental long-term debt and acquisitions under leases are reported as other financing sources.

Those revenues susceptible to accrual are property taxes, sales taxes, real property transfer taxes, interest revenue and charges for services. Licenses, use of property and permit revenues are not susceptible to accrual because they are not measurable until received in cash.

Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the Town may fund certain programs with a combination of costreimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position may be available to finance program expenditures. The Town’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.

Non-exchange transactions, in which the Town gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations.

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

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

45 241

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Capital Assets
Contributed capital assets are valued at their estimated fair market value on the date contributed.

Donated capital assets, donated works of art and similar items, and similar items, and capital assets received in a service concession arrangement are recorded at acquisition value rather than fair value.

All other capital assets are valued at historical cost or estimated, if historical cost is not available.

Infrastructure, improvements and equipment purchased or acquired with an original cost of $100,000, $50,000, and $5,000 or more, respectively, are capitalized. Additions, improvements and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. Depreciation on all assets is provided on the straight-line basis over the following estimated useful lives:

Buildings and improvements 50 Years
Equipment and furniture 3 - 25 Years
Infrastructure 7 - 100 Years
F. Property Taxes
Property tax revenue is recognized in the fiscal year for which the tax and assessment are levied. The County of Contra Costa levies, bills, and collects property taxes and special assessments for the Town.

Under the County’s “Teeter Plan,” the County remits the entire amount levied and handles all delinquencies, retaining interest and penalties.

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

The term “unsecured” refers to taxes on personal property other than real estate, land, and buildings.

These taxes are secured by liens on the property being taxed.

46 242

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Compensated Absences
Compensated absences are comprised of unused vacation leave, sick leave, and compensatory time off, which are accrued as earned. The Town’s liability for compensated absences is determined annually. The liability for these compensated absences in the government-wide statements has been estimated by management to be 20% current and 80% non-current liabilities.

The activities of the compensated absences for the year ended June 30, 2025 were as follows:

Beginning balance $410,999
Net Change 238,418
Ending Balance $649,417
Current Portion $129,883
H. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

I. Cash and Investments
The Town maintains a cash and investments pool that is available for use by all funds. Each fund’s portion of this pool is displayed on the Balance Sheets for the governmental funds and Statement of Fiduciary Net Position for the Agency Fund as cash and investments. Investments are stated at fair value. Fair value is estimated based on quoted market prices at year end.

J. Prepaids
The Town uses the consumption method to report prepaid items.

K. Leases
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. The Town records leases exceeding $25,000 at commencement of the lease. 47 243

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) L. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Town has one item that qualifies for reporting in this category related to pensions as discussed in Note 8.

In addition to liabilities, the statement of net position or balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow or resources (revenue) until that time. The Town has two items that qualify for reporting in this category, unavailable revenue and leases, which arise under the modified accrual basis of accounting. Accordingly, unavailable revenue is reported only in the governmental funds balance sheet. The Construction in Progress Fund reports unavailable revenue related to amounts due from other governments for grants. The General Fund reports deferred inflows related to lease receivable. The Town also has deferred inflow of resources related to pensions on the statement of net position as discussed in Note 9. These amounts are deferred and recognized as an inflow of resources in the period that the amount becomes available.

M. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Town categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

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

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

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

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

N. Closed Funds
During fiscal year ended June 30, 2025, the Town closed two funds, the American Rescue Plan Act Special Revenue fund, the Public Safety Grants Special Revenue fund and the Pavement Management Program Special Revenue fund.

48 244

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) O. Subscription-Based Information Technology Arrangements (SBITAs) Accounting A Subscription-Based Information Technology Arrangement (SBITA) is a contract that conveys control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction.

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

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

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

Subscription assets are reported with other capital assets and subscription liabilities are reported with liabilities on the statement of net position. As of June 30, 2025, the Town has updated its policy requiring agreements to be 5 years or more or the dollar value greater than or equal to $250,000. The Town did not have any agreements that meet the requirements to be recorded as of June 30, 2025.

P. New Accounting Principles
In June 2022, GASB issued Statement No. 101, Compensated Absences. The Statement requires that liabilities for compensated absences be recognized for leave that has not been used but not yet paid in cash or settled through noncash means. The provision of this Statement were implemented during the fiscal year 2025. The implementation had no material effect on the financial statements. 49 245

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) P. New Accounting Principles (Continued)
In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. The primary objective of this Statement is to provide users of government financial statements with essential information about risks related to a government's vulnerabilities due to certain concentrations or constraints. A concentration is defined as a lack of diversity related to an aspect of a significant inflow of resources or outflow of resources. A constraint is a limitation imposed on a government by an external party or by formal action of the government's highest level of decision-making authority. The requirements of this statement are effective for the Town's fiscal year ending June 30, 2025.

NOTE 2 – BUDGET AND BUDGETARY ACCOUNTING
A. Budgeting Procedures
The Town follows a biennial budget cycle, adopting a budget for two fiscal years at one time. The Town follows these procedures:

1. In May/June, the Town Manager submits to the Town Council a proposed budget for the fiscal year commencing July 1. The proposed budget includes proposed expenditures and the revenues expected to finance them. General Fund and Special Revenue Funds are budgeted on an annual basis. Capital Projects Funds and Debt Service Funds are budgeted on project basis.

2. The Town Council conducts deliberations on the proposed budget, including receipt of public comment at an open meeting.

3. The Town Council formally adopts the budget by resolution before July 1. The proposed budget becomes the adopted budget.

4. The Town Council may amend the budget at any time during the fiscal year. Amendments to the adopted budget become the adjusted budget.

The Town Manager is authorized to adjust the budget to include prior year budgeted amounts that are encumbered for contracts or unspent for multi-year capital projects. All other unexpended appropriations lapse at year end and must be re-appropriated in the budget for the new fiscal year. The Town Manager may also transfer budgeted amounts within or between departments at the fund level, which is the legal level of budgetary control. The Town Council must approve all budget amendments between funds or increases and decreases to a fund’s overall budget.

50 246

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 2 – BUDGET AND BUDGETARY ACCOUNTING (Continued)
B. Budgetary Accounting
Budgets are adopted on a basis consistent with generally accepted accounting principles. The Town Council approves total appropriations for the General Fund on a departmental basis. The Town Council also approves total appropriations for Other Governmental Funds and the Capital Projects Fund on a fund level to be used for operating activities or for capital projects included in the Capital Improvement Program.

The budget is reflected in the financial statements. A budgetary comparison schedule is presented for the General Fund, including both the original adopted budget and the adjusted budget, and is presented in comparison to actual charges to appropriations.

The Town’s Administrative Services Department maintains budget appropriations detail using a computerized financial management system. The system contains an on-going record of budget balances throughout the year based on actual expenditures.

C. Excess of Expenditures over Appropriations
The following Special Revenue funds incurred expenditures in excess of appropriations:

Lighting District $69,774
Art in Public Spaces 3,250
Sufficient resources were available in each fund to fund these excesses.

NOTE 3 – CASH AND INVESTMENTS
The Town pools cash from all sources and all funds except cash held with fiscal agents so that it can be invested at the maximum yield, consistent with safety and liquidity, while individual funds can make expenditures at any time.

A. Policies
The Town and its fiscal agents invest only in those instruments authorized by the California Government Code.

The Town and its fiscal agents invest in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system.

51 247

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 3 – CASH AND INVESTMENTS (Continued)
A. Policies (Continued)
California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the Town’s cash on deposit, or first trust deed mortgage notes with a market value of 150% of the deposit, as collateral for these deposits. Under California Law this collateral is held in a separate investment pool by another institution in the Town’s name and places the Town ahead of general creditors of the institution.

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

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

Statement of Net Position:

Cash and investments $16,711,191
Restricted cash and investments 3,368,018
Fiduciary Funds:

Cash and investments 169,908
Total Cash and Investments $20,249,117
Cash and investments as of June 30, 2025 consist of the following:

Cash on hand and in banks $10,387,046
Investments with fiscal agents 2,429,368
California Local Agency Investment Fund 7,432,703
Total Cash and Investments $20,249,117
C. Cash Deposits With Financial Institutions – Custodial Credit Risk-Deposits In the case of deposits, this is the risk that in the event of a bank failure, the government’s deposits may not be returned to it. The government does not have a deposit policy for custodial credit risk. As of June 30, 2025, the Town’s bank balance was $1,914,160 and $1,664,160 of that amount was exposed to custodial credit risk because it was uninsured and collateralized with securities held by the pledging or financial institution’s trust department or agent, but not in the Town’s name.

52 248

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 3 – CASH AND INVESTMENTS (Continued)
D. Investments Authorized by the California Government Code and the Town of Moraga’s Investment Policy
The table below identifies the investment types that are authorized for the Town of Moraga by the California Government Code. The table also identifies certain provisions of the California Government Code that address 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 Town of Moraga, rather than the general provisions of the California Government Code.

Minimum Maximum Maximum
Maximum Credit in Investment
Authorized Investment Type Maturity Quality Portfolio In One Issuer N/A N/A 25% 10%
Certificate of Deposit (collateralized or
insured) 2 years N/A 25% 10%
U.S. Treasury Securities 5 years N/A None None
Federal Agency Obligations 5 years N/A 50% 20%
Local Agency Investment Fund (LAIF) N/A N/A None None
Banker’s Acceptances 180 days N/A 20% 10%
Commercial Paper (rated P1) 270 days P-1, A-1 20% 10%
Negotiable Certificates of Deposit 2 years N/A 25% 10%
Medium-Term Corporate Notes 5 years Aa, AA 25% 10%
Bank Savings Accounts and Demand
Deposits (collateralized or insured)
E. Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreements of the Town which follows the California Government Code and the Town’s investment policy.

F. Section 115 Pension Trust
In December 2022, the Town Council authorized the establishment of a Section 115 Pension Trust with the Public Agency Retirement Services (PARS). The trust is an irrevocable trust, and is used to set aside funds for future pension contributions. During the fiscal year ended June 30, 2024, the town transferred most of its assets from the PARs trust account to an irrevocable trust with Charles Schwab.

As of June 30, 2025, the Charles Schwab trusts held $2,429,368.

53 249

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 3 – CASH AND INVESTMENTS (Continued)
G. Interest Rate Risk
Interest rate risk is the risk that changes in economic markets 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. One of the ways that the Town manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the Town’s investments (including investments held with fiscal agents) to market interest rate fluctuations is provided by the following table that shows the distribution of the Town’s investments by maturity:
12 months
Investment Type or less Total
Cash and Investments in City Treasury:

California Local Agency Investment Fund $7,432,703 $7,432,703 Held by Fiscal Agents:

Money Market Fund 2,429,368 2,429,368
Total Investments $9,862,071 9,862,071
Cash deposits in banks and petty cash 10,387,046
Total Cash and Investments $20,249,117
H. Fair Value Hierarchy
The Town categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

The Town’s investments with the California Local Agency Investment Fund (LAIF) and Money Market Fund are classified as exempt in the fair value hierarchy, as they are valued at amortized cost, which is exempt from being classified under GASB 72.

54 250

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 3 – CASH AND INVESTMENTS (Continued)
I. 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 Town of Moraga’s actual Moody’s rating as of June 30, 2025 for each investment type:

Investment Type Not rated Total
Not rated:

Money Market Fund $2,429,368 $2,429,368
California Local Agency Investment Fund 7,432,703 7,432,703 Total Investments $9,862,071 9,862,071
Cash deposits in banks and petty cash 10,387,046
Total Cash and Investments $20,249,117
J. Concentration of Credit Risk
The Town’s investment policy regarding the amount that can be invested in any one issuer is stipulated by the California Government Code. However, the Town is required to disclose investments that represent a concentration of five percent or more of investments in any one issuer other than U.S.

Treasury Securities, mutual funds and external investment pools.

At June 30, 2025, the Town only had investments in LAIF and money market funds.

K. Investment in State Investment Pool
The Town is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The Town reports its investment in LAIF at the amortized costs provided by LAIF, which is the same as the value of the pool share. The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Each regular LAIF account is permitted to have up to 15 transactions per month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75 million and at least 24 hours advance notice for withdrawals of $10 million or more. Bond proceeds accounts are subject to a one‐time deposit with no cap and are set up with a monthly draw down schedule. Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage‐backed securities, other asset‐backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government‐sponsored enterprises, United States Treasury Notes and Bills, and corporations. At June 30, 2025, these investments matured in an average of 248 days.

55 251

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 4 – INTERFUND ACTIVITIES
A. Transfers Between Town Funds
With Council approval, resources may be transferred from one Town fund to another. Transfers are used to (1) move revenues from the fund that statute or budget requires collecting them to the fund that statute or budget requires to expend them, and (2) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.

With respect to the Town’s current operations, the General-Purpose Fund serves as the primary operating fund for the Town. Transfers of revenue from other funds occur throughout the year to cover operating expenses that meet statutory and/or budgetary requirements of each respective fund.

Transfers between funds also occur to support capital activities. Specific capital projects are typically supported by multiple funding sources. However, for improved transparency and efficiency, a capital project is budgeted and expensed in one fund. At the end of the year and at the completion of the project, transfers of revenue occur to cover the capital expenses, subject to statutory and/or budgetary requirements of the respective funds.

Transfers between Town funds during fiscal year 2024-25 were as follows:

Amount
Transfer From Transfer To Transferred
General Fund Other Governmental Funds $1,000,000 C
Internal Service Fund 500,000 D
Debt Service Fund Debt Service Fund 23,368 B
Measure K Local Funding Debt Service Fund 530,472 B
Construction in Progress Fund 4,256,994 A
Construction in Progress Fund Other Governmental Funds 156,177 A Measure K Local Funding 480,372 E
Other Governmental Funds General Fund 967,738 D
Other Governmental Funds 46,100 D
Construction in Progress Fund 2,949,473 A
Total Interfund Transfers $10,910,694
A. To fund capital projects: labor and materials
B. To fund debt service payments
C. To fund asset replacement
E. To return CIP project funds to source
D. To fund Police services, transportation and street related programs, pension and labor costs, purchase of equipment and storm drain maintenance

56 252

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 5 – CAPITAL ASSETS
In accordance with GASB Statement No. 34, the Town has reported all capital assets including infrastructure in the Government-wide Statement of Net Position. The Town elected to use the basic approach as defined by GASB Statement No. 34 for all infrastructures reporting, whereby depreciation expense and accumulated depreciation has been recorded.

A. Capital Assets Activities
The following table presents the capital assets activity for the year ended June 30, 2025:

Balance Retirements Balance
June 30, 2024 Additions & Transfers June 30, 2025
Governmental Activities
Capital assets not being depreciated:

Land and easements $10,680,212 $10,680,212
Construction in progress 20,420,366 $10,177,919 ($18,354,382) 12,243,903 Total capital assets, not being depreciated 31,100,578 10,177,919 (18,354,382) 22,924,115 Depreciable capital assets:

Building and improvements 8,932,047 6,650 8,938,697
Roadway and related 66,014,144 18,288,916 84,303,060
Storm drains 5,017,390 5,017,390
Parks and recreation 4,052,958 58,816 4,111,774
Equipment and furniture 2,004,051 228,269 (204,149) 2,028,171 Subscription based assets 126,679 (126,679)
Total capital assets, being depreciated 86,147,269 228,269 18,023,554 104,399,092 Accumulated depreciation and Amortization:

Building and improvements (2,905,802) (194,604) (3,100,406) Roadway and related (29,790,183) (2,342,397) (32,132,580) Storm drains (2,937,829) (71,185) (3,009,014)
Parks and recreation (2,271,341) (129,983) (2,401,324)
Equipment and furniture (1,804,891) (147,978) 204,149 (1,748,720) Subscription based assets (84,452) (42,227) 126,679
Total accumulated depreciation and amortization (39,794,498) (2,928,374) 330,828 (42,392,044) Depreciable capital assets, net 46,352,771 (2,700,105) 18,354,382 62,007,048 Governmental capital assets, net $77,453,349 $7,477,814 $84,931,163 B. Depreciation Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets.

The amounts allocated to each function or program are as follows:

Governmental Activities:

General Administration $259,204
Planning 16,820
Public Safety 52,785
Public Works 2,446,008
Parks and Recreation 153,557
Total Governmental Activities $2,928,374
57 253

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 6 – LONG-TERM DEBT
The Town generally incurs long-term debt to finance projects, which will have useful lives equal to or greater than the related debt. The Town’s debt issues and transactions are related to governmental-type activities are discussed below.

A. Current Year Transactions and Balances
Original Issue Balance Balance Current
Amount June 30, 2024 Retirements June 30, 2025 Portion
2023 Certificates of Participation $3,970,000 $3,970,000 ($360,000) $3,610,000 $380,000 Add: Unamortized Bond Premium 542,898 515,749 (54,200) 461,549 Total Governmental Activity $4,485,749 ($414,200) $4,071,549 $380,000 B. 2023 Certificates of Participation – Infrastructure Improvements Certificates of Participation were issued and delivered pursuant to a trust agreement dated December 1, 2023 by and among the Town, the Public Property Financing Corporation of California, and Wilmington Trust, North America (the Trustee) for the purposes of financing improvements to the Town’s infrastructure including streets and storm drains and to pay off the 2013 Certificates of Participation. Principal is payable annually on May 1. Interest is payable semiannually on May 1 and November 1. Interest on the Certificates of Participation is 5.0% with a final maturity in 2033.

C. Debt Service Requirements
Annual debt service requirements are shown below for all long-term debt with specified repayment terms:

Year ending June 30 Principal Interest
2026 $380,000 $180,500
2027 395,000 161,500
2028 415,000 141,750
2029 440,000 121,000
2030 460,000 99,000
2031-2033 1,520,000 154,250
Total 3,610,000 $858,000
Unamortized Premium 461,549
$4,071,549

58 254

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 7 – LEASES
The Town is a party to three lease agreements as the lessor that require recognition. The Town recognizes a lease receivable and a deferred inflow of resources in the General Fund and Government-Wide financial statements, as was in the applicable funds.

At the commencement of a lease, the Town initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key estimates and judgments include how the Town determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as follows:
• The Town uses its estimated incremental borrowing rate as the discount rate for leases, when an explicit rate is not available.
• The lease term includes the noncancellable period of the lease. • Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

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

A summary of lease activities for the year ended June 30, 2025 are as follows:

Governmental Activities:

Lessor
Original
Lease Date
Expiration Date
Including
Options
Monthly
Revenue
as of
June 30, 2025
Lease
Receivable
Balance at
June 30, 2025
Deferred
Inflow of
Resources at
June 30, 2025
Moraga Country Club 9/30/87 3/31/40 $7,231 $1,376,768 $1,368,642 Growing Light Montessori
School of Moraga 7/1/80 6/30/26 2,776 34,280 32,906
Z Golf Food & Beverage
Services 11/1/21 10/31/31 21,855 1,786,555 1,753,286
Totals Reported in General Fund $3,197,603 $3,154,834

59 255

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 7 – LEASES (Continued)
Moraga Country Club Homeowners’ Association
In September 1987, the Town of Moraga agreed to sublease 60 acres of property adjacent to a golf course, that was leased from the State of California, to the Moraga Country Club Homeowners’ Association (Association). The initial term of the lease was twenty years. The property was subsequently acquired by the Town from the State, and the lease agreement between the Town and the Association was amended three times in 1991, 1994 and 2014, respectively. The latest amendment dated December 10, 2014, extended the term of the land lease for an additional twenty-five years commencing April 1, 2015 and expiring March 31, 2040. Monthly rent as of June 30, 2025 is $7,231 and increases annually by CPI.

Growing Light Montessori School of Moraga
In September 1981, the Town entered into a ground lease with an individual operating a preschool for real property located at 1455 St. Mary’s Road in Moraga. In October 2021, the lease was assigned to the Growing Light Montessori School of Moraga, who assumed the terms of the original lease and subsequent amendments. The current lease will expire on June 30, 2026. The monthly rent as of June 30, 2025 is $2,776, and increase annually by CPI.

Hacienda de Las Flores
In July 2021, the Town entered into a lease agreement with Z Golf Food & Beverage Services, LLC to lease real property and improvements commonly known as the Hacienda de Las Flores, commencing November 1, 2021, with an initial expiration date of October 31, 2031. The lessee has the right to extend two 5-year additional terms. Rent of $60,000 is to be paid to the Town quarterly, for a total of $240,000 in the first year, with 1.5% increases each subsequent year.

The future lease payments to be received as of June 30, 2025 are as follows:

Year ending June 30 Principal Interest
2026 $362,194 $27,047
2027 341,569 24,002
2028 355,668 20,870
2029 370,225 17,610
2030 385,009 14,217
2031-2035 887,487 35,473
2036-2040 495,451 10,559
Total 3,197,603 $ 149,778 $

60 256

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 8 – PENSION PLAN
A. General Information
Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the Town’s Safety and Miscellaneous (all other) Employee Pension Rate Plans. The Town’s Miscellaneous and Safety Rate Plans are part of the public agency cost-sharing multiple-employer defined benefit pension plan (PERF C), which is administered by the California Public Employees’ Retirement System (CalPERS). PERF C consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Individual employers may sponsor more than one miscellaneous and safety rate plan. The employer participates in one cost-sharing multiple-employer defined benefit pension plan regardless of the number of rate plans the employer sponsors. The Town sponsors four rate plans (two miscellaneous and two safety). Benefit provisions under the Plans are established by State statute and Town resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. The Town does not provide any post-retirement health benefits (OPEB).

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

Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

61 257

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 8 – PENSION PLAN (Continued)
A. General Information (Continued)
The Plans’ provisions and benefits in effect at June 30, 2025, are summarized as follows:

Hire date
Prior to
January 1, 2013
On of after
January 1, 2013
Benefit formula 2.0% @ Age 55 2.0% @ Age 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 63 52 - 67
Monthly benefits, as a % of eligible compensation 1.426% to 2.418% 1.000% to 2.500% Required employee contribution rates 7% 7.75%
Required employer contribution rates 11.880% 7.870%
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.0% @ Age 50 2.7% @ Age 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 55 50-57
Monthly benefits, as a % of eligible compensation 2.000% to 2.700% 2.000% to 2.700% Required employee contribution rates 9% 13.75%
Required employer contribution rates 20.090% 13.760%
Miscellaneous
Safety
Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability and side fund. The dollar amounts are billed on a monthly basis. The Town’s required contribution for the unfunded liability was $765,675 in fiscal year 2025.

Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS.

The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The Town is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

For the year ended June 30, 2025, the contributions recognized as part of pension expense for the Plan were as follows.

Miscellaneous Safety Total
Contributions - employer $691,062 $623,733 $1,314,795
62 258

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 8 – PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

As of June 30, 2025, the Town reported a net pension liability for its proportionate share of the net pension liability of the Plan as follows:

Proportionate Share
of Net Pension Liability
Miscellaneous $5,795,621
Safety 4,342,762
Total Net Pension Liability $10,138,383
The Town’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2024, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. The Town’s proportion of the net pension liability was based on a projection of the Town’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The Town’s proportionate share of the net pension liability for the Plan as of June 30, 2023 and 2024 was as follows:

Safety
Proportion - June 30, 2023 0.11259% 0.05883%
Proportion - June 30, 2024 0.11983% 0.05956%
Change - Increase (Decrease) 0.00724% 0.00073%
Miscellaneous

63 259

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 8 – PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
For the year ended June 30, 2025, the Town recognized pension expense of $572,181. At June 30, 2025, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $691,062 Differences between actual and expected experience 501,085 ($19,552) Changes in assumptions 148,959
Change in employer's proportion and differences between the employer’s contributions and the employer’s
proportionate share of contributions 95,284 (165,953)
Net differences between projected and actual earnings on plan investments 333,647
Total Miscellaneous $1,770,037 ($185,505)
Safety
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $623,733 Differences between actual and expected experience 354,408 ($11,523) Changes in assumptions 106,997
Change in employer's proportion and differences between the employer’s contributions and the employer’s
proportionate share of contributions 219,846 (104,381)
Net differences between projected and actual earnings on plan investments 209,909
Total Safety $1,514,893 ($115,904)
Grand Total $3,284,930 ($301,409)
64 260

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 8 – PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
$1,314,795 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
2026 $502,051
2027 1,305,747
2028 47,085
2029 (186,157)
$1,668,726
Year Ended
June 30
Annual
Amortization
Actuarial Assumptions – For the measurement period ended June 30, 2024, the total pension liability was determined by rolling forward the June 30, 2023 total pension liability. The June 30, 2023 total pension liability was based on the following actuarial methods and assumptions:

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

Discount Rate 6.90%
Inflation 2.30%
Salary Increase Varies by entry age and service
Mortality Rate Table
Post Retirement Benefit Increase
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.
(2) Net of Plan investment expenses, including inflation.

Derived using CalPERS’ membership data for all funds (2) The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter

65 261

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 8 – PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Discount Rate – The discount rate used to measure the total pension liability for each Plan was 6.90%.

The projection of cash flows used to determine the discount rate for each Plan assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, each Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability for each Plan.

The long-term expected rate of return on pension plan investments was determined using a buildingblock method in which future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach.

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

The expected real rates of return by Asset Class are as follows:

Asset Class (1)
Assumed asset
allocation
Real return
(1),(2)
Global Equity - Cap weighted 30.0% 4.54%
Global Equity - Non-Cap weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100.0%
(1) An expected inflation of 2.30% used for this period (2) Figures are based on the 2021 Asset Liability Management study 66 262

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 8 – PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the Town’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the Town’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability $8,667,807 $6,567,979
Current Discount Rate 6.90% 6.90%
Net Pension Liability $5,795,621 $4,342,762
1% Increase 7.90% 7.90%
Net Pension Liability $3,431,389 $2,522,847
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

C. Deferred Compensation Plan
Town employees may defer a portion of their compensation under a Town sponsored deferred compensation plan created in accordance with Internal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation until distributed to them; distributions may be made only at termination of employment, retirement, death or in an emergency as defined by the plan.

The laws governing deferred compensation plan assets require plan assets to be held by a Trust for the exclusive benefit of plan participants and their beneficiaries. The funds have been placed in a trust administered by Mission Square (formerly known as ICMA-RC) and are not available to the Town's general creditors. Accordingly, the Town does not report the assets in the financial statements.

As established by the plan, any Town employee can contribute to the plan. During fiscal year 2025, the employees contributed $254,107 to the plan.

67 263

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 8 – PENSION PLAN (Continued)
D. Defined Contribution Plan
The Town sponsors a defined contribution plan created in accordance with Internal Revenue Code Section 401(a). Under this plan, the Town may make discretionary contributions to the plan each year on behalf of designated employees up to the maximum allowed by law. Town employees are fully vested in amounts contributed to the plan. Town employees may also contribute to the plan on an aftertax basis as long as the combined employer and employee contributions do not exceed the maximum allowed by law. During fiscal year 2025, the Town and its employees made $59,467 contributions to the plan.

Contributions to the plan are held by a Trust, administered by Mission Square, for the exclusive benefit of plan participants and their beneficiaries. The assets are not available to the Town’s general creditors and thus, the Town does not report the assets in the financial statements.

NOTE 9 – NET POSITION AND FUND BALANCES
Net Position is measured on the full accrual basis, while Fund Balance is measured on the modified accrual basis.

A. Net Position
Net Position is the excess of all the Town’s assets and deferred outflows over all its liabilities and deferred inflows, regardless of fund. Net Position is divided into three captions. These captions apply only to Net Position, which is determined only at the Government-wide level, and are described below:

Net Investment in Capital Assets, describes the portion of net position which is represented by the current net book value of the Town’s capital assets, less the outstanding balance of any debt issued to finance these assets. At June 30, 2025, the breakout of this calculation is reflected as follows:

Total Capital Assets at June 30, 2025 $84,931,163
Related Debt at June 30, 2025:

Certificates of Participation (COP) (4,071,549)
Net Investment in Capital Assets $80,859,614
Restricted describes the portion of net position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the Town cannot unilaterally alter.

Unrestricted describes the portion of net position which is not restricted to use.

68 264

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
B. Fund Balance
Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund’s cash and receivables, less its liabilities.

The Town’s fund balances are classified based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the Town prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:

Nonspendables represents balances set aside to indicate items that are not available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.

Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose.

Nonspendable amounts subject to restrictions are included along with spendable resources.

Committed fund balances are established, modified and rescinded by resolution of the Town Council.

Nonspendable amounts subject to council commitments are included along with spendable resources.

Assigned fund balances are amounts constrained by the Town’s intent to be used for a specific purpose but are neither restricted nor committed. Intent is expressed by the Town Council or its designee and may be changed at the discretion of the Town Council or its designee. The Town Manager is authorized to assign amounts to a specific purpose in accordance with the Municipal Code, Chapter 3.04 – Purchasing System approved by the Town Council under Ordinance No. 231. This category includes unspent capital project balances for active projects; Nonspendables, when it is the Town’s intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue and Capital Projects Funds which have not been restricted or committed.

Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.

69 265

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
B. Fund Balance (Continued)
Detailed classifications of the Town’s Fund Balances, as of June 30, 2025, are as follows:

Other
General Measure K Construction Governmental
Fund Local Funding In Progress Funds Total
Restricted for:

Streets and roads $2,639,068 $2,639,068
Public safety 188,774 188,774
Future projects 191,798 191,798
Capital projects 1,273,684 1,273,684
Deposits $16,520 16,520
Future projects 68,882 68,882
Total Restricted 16,520 4,362,206 4,378,726
Committed to:

Future projects
(Palos Developer Fees) 2,785,733 2,785,733
Emergency Reserves 6,824,996 6,824,996
Capital projects $2,048,520 2,048,520
Asset replacements 1,367,085 1,367,085
Total Committed 9,610,729 2,048,520 1,367,085 13,026,334 Assigned
Encumbrances 334,904 334,904
Capital projects $1,057,482 1,057,482
Total Assigned 334,904 1,057,482 1,392,386
Unassigned
Fund balance deficits
Residual fund balance 367,873 367,873
Total Unassigned 367,873 367,873
Total fund balances $10,330,026 $1,057,482 $2,048,520 $5,729,291 $19,165,319 C. General Purpose Fund Reserve Policy
In fiscal year 2015, the Town adopted resolution 5-2015 which establishes a Town Council policy of achieving and maintaining a fifty percent (50%) General Purpose Fund Reserve relative to General Purpose Fund operating expenditures of the most recent fiscal year end. In March 2025, the Town adopted resolution 12-2025, which allows Council to commit any excess fund balance to one-time uses.

D. Fund Deficit
As of June 30, 2025, the Town did not have any fund deficits to report. 70 266

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 10 – RISK MANAGEMENT
The Town is a member of the Municipal Pooling Authority (MPA) based in Walnut Creek, California. The MPA provides coverage against the following types of loss risks under the terms of a joint-powers agreement with the Town and several other cities and governmental agencies as follows:

Participating Cities Total Deductible
Coverage (Aggregate) (Town Portion)
All risk fire and property $1,000,000,000 $25,000
Flood 25,000,000 100,000
Cyber liability 2,000,000 50,000
Public entity pollution liability 25,000,000 250,000
Boiler and machinery 75,000,000 10,000
Government crime 5,000,000 2,500
General liability 29,000,000 100,000
Employment liability 2,000,000 50,000
Workers' compensation 50,000,000 500,000
Deadly weapons response 500,000 10,000
Vehicle physical damage
All other police vehicles 250,000 2,000
Police department vehicles 250,000 3,000
The MPA is governed by a Board consisting of representatives from member municipalities. The Board controls the operations of the MPA, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the Board.

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

Audited financial statements for the Authority are available from MPA, 1911 San Miguel Drive, Suite 200, Walnut Creek, CA 94596.

The total coverage includes the Town’s deductible, the portion underwritten by MPA, and the portion underwritten by other insurance companies. Management believes such coverage is sufficient to preclude any significant uninsured losses to the Town. Settled claims have not exceeded this insurance coverage in any of the past three fiscal years by any significant amount.

The Town did not record a liability for outstanding claims at fiscal year-end, as management believes that the claims were minimal.

71 267

TOWN OF MORAGA
Basic Financial Statements
For the Year Ended June 30, 2025

NOTES TO FINANCIAL STATEMENTS
NOTE 11 – LAMORINDA FEE AND FINANCING AUTHORITY
The Lamorinda Fee and Financing Authority (LFFA) is the result of the Town of Moraga entering into a Joint Powers Agreement (JPA) with the cities of Lafayette and Orinda, to administer an adopted sub-regional transportation and traffic impact fee for the Lamorinda region under the authority of the Contra Costa County half cent sales tax measure adopted in 1988. The fees collected under the LFFA from new development are used to mitigate increased traffic in the region. Complete financial statements of the LFFA are available at the City of Lafayette, 3675 Mt. Diablo Blvd., #210, Lafayette, CA 94549.

NOTE 12 – COMMITMENT AND CONTINGENT LIABILITIES
The Town participates in several Federal and State grant programs. These programs have been subjected to audits by the Town’s independent accountants in accordance with the provisions of the Federal Single Audit Act as amended and applicable State requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The Town expects such amounts, if any, to be immaterial.

The Town is subject to litigation arising in the normal course of business. In the opinion of the Town Attorney there is no pending litigation which is likely to have a material adverse effect on the financial position of the Town.

Encumbrances
The Town utilized an encumbrance system during fiscal year 2025 to assist in controlling expenditures. Under this system, governmental funds are encumbered when purchase orders, contracts or other commitments are signed or approved. The following are encumbrances at June 30, 2025, that will be carried over to fiscal year 2026:

General Fund $51,904
Construction in Progress Fund 1,564,731
Non-major Governmental Funds 181,684
Total $1,798,319
Developer Fees
In 2007, the Town was the recipient of a Golf Course Fee as part of the settlement agreement related to the Palos Colorados Project. The Town received the remaining principal of the Golf Course Fee of $2,250,000 in November 2021. The related Golf Course Fee interest receivable as of November 2021 was $1,541,563, which the Town expects to collect over the next few years. $14,500,000 of the remaining General Plan Fee portion of the settlement will be paid to the Town when and if development occurs. 72 268

REQUIRED SUPPLEMENTARY INFORMATION
269

REQUIRED SUPPLEMENTARY INFORMATION
Town of Moraga Cost-Sharing Multiple-Employer Defined Pension Plan Last 10 Years

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Measurement Date as of June 30 2015 2016 2017
Plan's Proportion of the Net Pension Liability/(Asset) 0.04235% 0.06040% 0.06208% Plan's Proportionate Share of the Net Pension Liability/(Asset) $3,840,323 $5,226,347 $6,156,875 Plan's Covered Payroll* $3,044,571 $3,214,375 $3,467,455 Plan's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of its Covered Payroll 126.14% 162.59% 177.56%
Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 82.25% 77.29% 76%
Notes to Schedule:
* Covered Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered payroll as the total payroll of employees that are provided pensions through the pension plan.
74 270

REQUIRED SUPPLEMENTARY INFORMATION
2018 2019 2020 2021 2022 2023 2024

0.06367% 0.06884% 0.07162% 0.08821% 0.08008% 0.08038% 0.08360% $6,135,349 $7,053,906 $7,792,118 $4,770,439 $9,249,452 $10,027,437 $10,138,383 $3,357,567 $3,924,854 $3,919,586 $4,167,504 $4,240,201 $4,926,959 $4,918,820 182.73% 179.72% 198.80% 114.47% 218.14% 203.52% 206.11% 77% 76% 74% 84% 72% 71% 78.08%

75 271

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30 2016 2017 2018
Actuarially determined contribution $314,989 $308,628 $274,211 Contributions in relation to the actuarially determined contributions 314,989 308,628 274,211 Contribution deficiency (excess) $0 $0 $0
Covered payroll $3,214,375 $3,467,455 $3,357,567
Contributions as a percentage of covered payroll 9.80% 8.90% 8.17% Town of Moraga Miscellaneous and Safety Rate Plans, a Cost-Sharing Multiple-Employer Defined Pension Plan Last 10 Years

SCHEDULE OF CONTRIBUTIONS

76 272

REQUIRED SUPPLEMENTARY INFORMATION
2019 2020 2021 2022 2023 2024 2025
$280,636 $333,366 $849,609 $390,289 $1,087,337 $1,160,243 $1,314,795 280,636 333,366 849,609 390,289 1,087,337 1,160,243 1,314,795 $0 $0 $0 $0 $0 $0 $0
$3,924,854 $3,919,586 $4,167,504 $4,240,201 $4,926,959 $4,918,820 $5,369,877

7.15% 8.51% 20.39% 9.20% 22.07% 23.59% 24.48%
77 273
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274

SUPPLEMENTAL INFORMATION
275
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276

TOWN OF MORAGA
Supplemental Information
For the Year Ended June 30, 2025

GENERAL FUND
The General Fund is the Town’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The General Fund is comprised of the following:

The General Purpose Fund is the general operating fund of the Town. It is used to account for most discretionary resources except those that require separate accounting for local, state or federal reporting and accountability purposes. Primary sources of General Purpose Fund revenue include property tax, sales tax, franchise fees, parks and recreation fees, as well as transfers in from other funds for eligible uses.

The One Time Developer Fees Fund (Palos Colorados) accounts for revenue as the result of a settlement agreement related to the Palos Colorados development project. Through action of the Town Council in approving the settlement agreement, the funds are committed for future projects. Since receipt of the initial deposits, the Town has used these funds for one-time expenditures such as payment of the CalPERS unfunded liability and promissory note due on the purchase of the 335 Rheem Boulevard property, and various capital improvement projects.

The Deposits Fund accounts for park facility rental deposits, planning deposits and public works performance bonds. Deposits are drawn upon if the Town provides services related to the deposits. Any remaining deposits are returned to the residents or contractors once events or projects are completed.

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TOWN OF MORAGA

GENERAL FUND

COMBINING BALANCE SHEETS
JUNE 30, 2025
General Purpose Developer Fees Deposits Total
ASSETS
Cash and investments $7,184,762 $2,785,733 $9,970,495
Restricted cash $938,650 938,650
Accounts receivable 509,632 509,632
Due from other funds
Lease receivable 3,197,603 3,197,603
Total Assets $10,891,997 $2,785,733 $938,650 $14,616,380

LIABILITIES
Accounts payable and accrued expenses $209,390 $23,759 $233,149 Deposits payable 898,371 898,371
Total Liabilities 209,390 922,130 1,131,520

DEFERRED INFLOWS OF RESOURCES
Related to leases 3,154,834 3,154,834

FUND BALANCES
Nonspendable
Restricted 16,520 16,520
Committed 6,824,996 $2,785,733 9,610,729
Assigned 334,904 334,904
Unassigned 367,873 367,873
Total Fund Balances 7,527,773 2,785,733 16,520 10,330,026 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $10,891,997 $2,785,733 $938,650 $14,616,380 82 278

TOWN OF MORAGA

GENERAL FUND

COMBINING SCHEDULES OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2025
General Purpose Developer Fees Deposits Total

REVENUES
Property taxes and assessments $3,342,459 $3,342,459
Property tax - in lieu 2,457,473 2,457,473
Sales and use tax 1,279,510 1,279,510
Franchise fees 975,829 975,829
Real property transfer fees 151,872 151,872
Motor vehicle license fees 27,282 27,282
Planning and permits 561,408 561,408
Interest 484,929 484,929
Property rentals 120,256 120,256
Parks and recreation 995,489 995,489
Police services 219,924 219,924
Public works services 667,546 667,546
Intergovernmental 24,500 24,500
Other revenues 292,452 292,452
Total Revenues 11,600,929 11,600,929

EXPENDITURES
Current operations:

General administration 3,344,697 3,344,697
Planning 786,520 786,520
Public safety 3,699,124 3,699,124
Public works 2,056,147 2,056,147
Parks and recreation 1,994,172 1,994,172
Total Expenditures 11,880,660 11,880,660

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (279,731) (279,731)

OTHER FINANCING SOURCES (USES)
Transfers in 967,738 967,738
Transfers out (1,500,000) (1,500,000)
Total Other Financing Sources (Uses) (532,262) (532,262) NET CHANGE IN FUND BALANCES (811,993) (811,993)
BEGINNING FUND BALANCES 8,339,766 $2,785,733 $16,520 11,142,019 ENDING FUND BALANCES $7,527,773 $2,785,733 $16,520 $10,330,026 83 279
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280

TOWN OF MORAGA
Supplemental Information
For the Year Ended June 30, 2025

OTHER GOVERNMENTAL FUNDS
The Town maintains the following Other Governmental Funds:

Special Revenue Funds
Gasoline Tax – This fund accounts for revenues and expenditures received from the State of California under Street and Highways Code Section 2105, 2106, 2107, 2107.5, and 7360. Revenue allocations are based on population. Eligible expenditures include the construction and maintenance of streets.

Transportation Measure J – This fund accounts the Town’s share of the proceeds of a one-half cent sales tax increase approved by Contra Costa County voters in 2004. Funds can be used for transportation purposes including transportation planning and street construction and maintenance.

Park Dedication – This fund accounts for revenues and expenditures of fees in lieu of park dedication pursuant to State of California Government Code Section 66475-66478 also known as the Quimby Act.

The Town’s Ordinance No. 221 provides the requirement of three acres per one thousand persons.

Lighting Assessment District – This fund accounts for revenues and expenditures of the Moraga Street Lighting Assessment District 1979-1 in accordance with the Landscaping and Lighting Act of 1972 (California Streets & Highways Code Sections 22500-22509). The fund covers the costs to operate the district, which covers a significant portion of the Town, including utilities, repairs, engineering services, administrative cost, and capital improvements. The current annual assessment levied is $58 for a single detached family residence within the district.

COPS/AVA – This fund accounts for COPS funds from the state that are allocated among cities and counties and special districts that provide law enforcement services in proportion to population.

Traffic Safety – This fund accounts for restricted funds derived from traffic fines and forfeitures, and must be used to support police activities.

National Pollution Discharge Elimination System District (NPDES) – This fund accounts for revenues and expenditures associated with the annual assessment for the National Pollutant Discharge Elimination System created countywide in response to the 1972 Clean Water Act.

Asset Forfeiture – Section 309 of Public Law 98-473 (The Comprehensive Crime Control Act of 1984) as implemented by the Attorney General’s Guidelines on Seized and Forfeited Property (July 1990) allows the Drug Enforcement Administration (DEA) to share federally forfeited property with participating law enforcement agencies. The Town’s Asset Forfeiture Fund was set up to receive and expend these funds. Allowable uses include activities calculated to enhance future investigations, law enforcement training, and law enforcement equipment and operations.

Public Safety Sales Tax – This fund accounts for the revenues received from a statewide half-cent sales tax for public safety. Revenues in this special revenue fund must only be spent on public safety activities.

Street Lighting – This fund accounts for a special allocation of the Basic 1% Property Tax paid by Town property owners. The revenues are intended to cover street lighting activities not included in the Town of Moraga Lighting Assessment District.
85 281

TOWN OF MORAGA
Supplemental Information
For the Year Ended June 30, 2025
Pavement Management Program - The Pavement Management Program Fund was established to account for all capital activities related to the rehabilitation of the Town’s streets. This fund was closed in fiscal year 2025.

Refuse Vehicle Impact Fees – This Fund accounts for the Refuse Vehicle Impact Fee (through RecycleSmart). This revenue is restricted for repair and maintenance of local streets and roads.

Art in Public Spaces – This fund was established by the Town Council Resolution No. 91-2015 to dedicate funding for Art in Public Spaces. This account may be credited annually, with any funds allocated by the Town Council through the budgetary process and monies received through donations or grants or otherwise obtained.

American Rescue Plan Act – This fund was established in FY 2021-22 to separately account for federal grant funds received for specific purposes as designated under the American Rescue Plan Act. This fund was closed in fiscal year 2025.

Grants – This fund was established in FY 2023-24 to record the activity for various state, federal and other outside grant funds.

Advance Planning Fees – This fund was established in FY 2023-24 to accumulate the Advance Planning Surcharge on planning activity to be used for updating the Town’s long term planning initiatives, such as the General Plan, Housing Element, and related activities.

Asset Replacement – This fund is used for the purchase of replacement vehicles, technology, and building and park improvements such as new roofs and replacement play structures.

Comcast PEG Restricted – This fund has limitations on how the Town may use these monies in accordance with the franchise agreement. Generally, Comcast funds are to be used for capital costs associated with Public, Educational and Governmental channel access.

Development Impact Fee Funds -
Public Safety Impact Fees, Storm Drain Impact Fees, General Government Facilities Impact Fees, and Park Development Impact Fee Funds are all funds whose revenues derive from development and use of these funds is restricted.

Lamorinda Fee and Financing Authority (LFFA) – This fund is used to record activity of the LFFA which is a joint exercise of powers agreement comprised of the jurisdictions of Lafayette, Moraga and Orinda to establish a development mitigation fee program. The program assesses regional and local transportation fees and distributes them back to the member jurisdictions as governed by the Joint Exercise of Powers Agreement. This fund is established to account for both the LFFA regional and local set aside fees distributed to the Town. The use of the funds is also governed by the Joint Exercise of Powers Agreement.

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283

TOWN OF MORAGA

OTHER GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS
JUNE 30, 2025
Lighting
Gasoline Transportation Park Assessment
Tax Measure J Dedication District COPS/AVA
ASSETS
Cash and investments $144,929 $947,158 $167,857 $573,890 $90,859 Accounts receivable 82,990 465,759 768 2,627 416
Total Assets $227,919 $1,412,917 $168,625 $576,517 $91,275

LIABILITIES
Accounts payable $37,298
Total Liabilities 37,298

FUND BALANCE
Restricted $227,919 $1,412,917 $168,625 539,219 $91,275 Committed
Unassigned

Total Fund Balances (Deficits) 227,919 1,412,917 168,625 539,219 91,275 Total Liabilities and Fund Balances $227,919 $1,412,917 $168,625 $576,517 $91,275 88 284
Pavement Refuse
Traffic Asset Public Safety Street Management Vehicle Impact Safety NPDES Forfeiture Sales Tax Lighting Program Fee
$72,022 $11,433 $6,632 $3,404 $234,711 $140,151
18,815 809 30 15,800 1,074 2,792
$90,837 $12,242 $6,662 $19,204 $235,785 $142,943
$12,241
12,241
$90,837 1 $6,662 $19,204 $235,785 $142,943
90,837 1 6,662 19,204 235,785 142,943
$90,837 $12,242 $6,662 $19,204 $235,785 $142,943
(Continued)
89 285
Art in Public Advance Asset
Spaces ARPA Grants Planning Fees Replacement
ASSETS
Cash and investments $23,067 $73,181 $60,803 $1,374,086 Accounts receivable 106 278 6,290
Total Assets $23,173 $73,181 $61,081 $1,380,376

LIABILITIES
Accounts payable $4,300 $13,291
Total Liabilities 4,300 13,291

FUND BALANCE
Restricted $23,173 68,881 $61,081
Committed 1,367,085
Unassigned

Total Fund Balances (Deficits) 23,173 68,881 61,081 1,367,085 Total Liabilities and Fund Balances $23,173 $73,181 $61,081 $1,380,376 JUNE 30, 2025

COMBINING BALANCE SHEETS

OTHER GOVERNMENTAL FUNDS

TOWN OF MORAGA
90 286
General Total
Comcast Government Park Nonmajor
PEG Public Safety Storm Drain Facilities Development Governmental Restricted Impact Fees Impact Fees Impact Fees Impact Fees LFFA Funds $510,848 $90,238 $180,553 $334,616 $96,137 $48,044 $5,184,619 7,872 413 826 1,689 440 2,008 611,802
$518,720 $90,651 $181,379 $336,305 $96,577 $50,052 $5,796,421 $67,130
67,130
$518,720 $90,651 $181,379 $336,305 $96,577 $50,052 4,362,206 1,367,085
518,720 90,651 181,379 336,305 96,577 50,052 5,729,291
518,720 $90,651 $181,379 $336,305 $96,577 $50,052 $5,796,421 91 287

TOWN OF MORAGA

OTHER GOVERNMENTAL FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2025
Lighting
Gasoline Transportation Park Assessment
Tax Measure J Dedication District COPS/AVA

REVENUES
Taxes and assessment $488,787 $198,695
Sales tax - public safety
Intergovernmental 428,549 $465,394 $194,663
Interest 23,713 38,081 $6,869 21,531 6,743
Public safety
Other revenue
Fines, forfeitures and penalties
Total Revenues 941,049 503,475 6,869 220,226 201,406

EXPENDITURES
Current operations:

General government
Public safety
Planning
Public works 308,134
Parks and recreation 7,981
Capital outlay
Total Expenditures 7,981 308,134

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 941,049 503,475 (1,112) (87,908) 201,406

OTHER FINANCING SOURCES (USES)
Transfers in 101,926 46,100
Transfers (out) (1,053,441) (300,703) (160,000)
Total Other Financing Sources (Uses) (1,053,441) (198,777) 46,100 (160,000) NET CHANGE IN FUND BALANCES (112,392) 304,698 (1,112) (41,808) 41,406 BEGINNING FUND BALANCES (DEFICITS) 340,311 1,108,219 169,737 581,027 49,869 ENDING FUND BALANCES (DEFICITS) $227,919 $1,412,917 $168,625 $539,219 $91,275 92 288
Pavement Refuse
Traffic Asset Public Safety Street Management Vehicle Impact Safety NPDES Forfeiture Sales Tax Lighting Program Fees $202,325 $46,100
$82,968
$915,098
$2,734 1,679 $264 2,058 10,352 22,534
12,520
39,931
55,185 204,004 264 85,026 56,452 937,632
25,040
38,805
25,040 38,805
30,145 165,199 264 85,026 56,452 937,632
(165,198) (95,700) (46,100) ($48,828) (1,505,933)
(165,198) (95,700) (46,100) (48,828) (1,505,933)
30,145 1 264 (10,674) 10,352 (48,828) (568,301)
60,692 6,398 29,878 225,433 48,828 711,244
$90,837 $1 $6,662 $19,204 $235,785 $142,943
93 289

TOWN OF MORAGA

OTHER GOVERNMENTAL FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2025
Art in Advance Asset
Public Spaces ARPA Grants Planning Fees Replacement

REVENUES
Taxes and assessment
Sales tax - public safety
Intergovernmental $38,071
Interest $607 $35,752
Public safety
Other revenue 26,200 $29,036 4,500
Fines, forfeitures and penalties
Total Revenues 26,807 38,071 29,036 40,252

EXPENDITURES
Current operations:

General government $9,391
Public safety 4,300
Planning 15,112
Public works 4,899
Parks and recreation 3,750
Capital outlay 289,908
Total Expenditures 3,750 9,391 19,412 294,807

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 23,057 (9,391) 18,659 29,036 (254,555)

OTHER FINANCING SOURCES (USES)
Transfers in 54,251 1,000,000
Transfers (out) (162,516)
Total Other Financing Sources (Uses) (162,516) 54,251 1,000,000 NET CHANGE IN FUND BALANCES 23,057 (171,907) 72,910 29,036 745,445 BEGINNING FUND BALANCES (DEFICITS) 116 171,907 (4,029) 32,045 621,640 ENDING FUND BALANCES (DEFICITS) $23,173 $68,881 $61,081 $1,367,085 94 290
General
Comcast Government Park Total Other
PEG Public Safety Storm Drain Facilities Development Governmental Restricted Impact Fees Impact Fees Impact Fees Impact Fees LFFA Funds $935,907
82,968
$7,544 2,049,319
$17,645 $3,575 $7,190 $14,499 $3,564 17,563 236,953
12,520
23,074 1,679 752 15,207 18,898 119,346
39,931
40,719 5,254 7,942 29,706 22,462 25,107 3,476,944
7,035 20,000 36,426
29,340
15,112
351,838
11,731
289,908
7,035 20,000 734,355
33,684 5,254 7,942 29,706 22,462 5,107 2,742,589
1,202,277
(34,349) (390,543) (3,963,311)
(34,349) (390,543) (2,761,034)
33,684 5,254 7,942 (4,643) 22,462 (385,436) (18,445)
485,036 85,397 173,437 340,948 74,115 435,488 5,747,736 $518,720 $90,651 $181,379 $336,305 $96,577 $50,052 $5,729,291 95 291
Gasoline Tax Transportation Measure J
Variance with Variance with
Final Budget Final Budget
Final Actual Positive Final Actual Positive
Budget Amounts (Negative) Budget Amounts (Negative)

REVENUES
Taxes and assessment $496,831 $488,787 ($8,044)
Sales tax - public safety
Intergovernmental 426,968 428,549 1,581 $472,000 $465,394 ($6,606) Interest 23,713 23,713 38,081 38,081
Parks and recreation
Police services
Planning and permits
Other revenue
Fines, forfeitures and penalties
Total Revenues 923,799 941,049 17,250 472,000 503,475 31,475

EXPENDITURES
Current operations:

General government
Public safety
Planning
Public works
Parks and recreation
Capital outlay
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 923,799 941,049 17,250 472,000 503,475 31,475

OTHER FINANCING SOURCES (USES)
Transfers in 101,926 101,926
Transfers (out) (1,053,441) (1,053,441) (1,584,125) (300,703) 1,283,422 Total Other Financing Sources (Uses) (1,053,441) (1,053,441) (1,584,125) (198,777) 1,385,348 NET CHANGE IN FUND BALANCES ($129,642) (112,392) $17,250 ($1,112,125) 304,698 $1,416,823 BEGINNING FUND BALANCES (DEFICITS) 340,311 1,108,219
ENDING FUND BALANCES (DEFICITS) $227,919 $1,412,917

AND CHANGES IN FUND BALANCES

TOWN OF MORAGA

OTHER GOVERNMENTAL FUNDS

COMBINING SCHEDULES OF REVENUES, EXPENDITURES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
96 292
Park Dedication Lighting Assessment District COPS/AVA
Variance with Variance with Variance with
Final Budget Final Budget Final Budget
Final Actual Positive Final Actual Positive Final Actual Positive Budget Amounts (Negative) Budget Amounts (Negative) Budget Amounts (Negative) $200,000 $198,695 ($1,305)
$160,000 $194,663 $34,663
$6,869 $6,869 21,531 21,531 6,743 6,743
6,869 6,869 200,000 220,226 20,226 160,000 201,406 41,406 238,360 308,134 (69,774)
7,981 (7,981)
7,981 (7,981) 238,360 308,134 (69,774)
(1,112) (1,112) (38,360) (87,908) (49,548) 160,000 201,406 41,406 (49,100) 46,100 95,200
($19,106) 19,106 (10,000) 10,000 (160,000) (160,000)
(19,106) 19,106 (59,100) 46,100 105,200 (160,000) (160,000) ($19,106) (1,112) $17,994 ($97,460) (41,808) $55,652 41,406 $41,406 169,737 581,027 49,869
$168,625 $539,219 $91,275
(Continued)
97 293

TOWN OF MORAGA

OTHER GOVERNMENTAL FUNDS

COMBINING SCHEDULES OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Traffic Safety NPDES
Variance with Variance with
Final Budget Final Budget
Final Actual Positive Fiscal Actual Positive
Budget Amounts (Negative) Budget Amounts (Negative)

REVENUES
Taxes and assessment $256,800 $202,325 ($54,475)
Sales tax - public safety
Intergovernmental
Interest $2,734 $2,734 1,679 1,679
Parks and recreation
Police services 12,520 12,520
Planning and permits
Other revenue
Fines, forfeitures and penalties $30,000 39,931 9,931
Total Revenues 30,000 55,185 25,185 256,800 204,004 (52,796)

EXPENDITURES
Current operations:

General government
Public safety 25,040 (25,040)
Planning
Public works 38,805 (38,805)
Parks and recreation
Capital outlay
Total Expenditures 25,040 (25,040) 38,805 (38,805)

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 30,000 30,145 50,225 256,800 165,199 (13,991)

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out) (27,563) 27,563 (256,800) (165,198) 91,602 Total Other Financing Sources (Uses) (27,563) 27,563 (256,800) (165,198) 91,602 NET CHANGE IN FUND BALANCES $2,437 30,145 $77,788 1 $77,611 BEGINNING FUND BALANCES (DEFICITS) 60,692
ENDING FUND BALANCES (DEFICITS) $90,837 $1
98 294
Asset Forfeiture Public Safety Sales Tax Street Lighting Variance with Variance with Variance with
Final Budget Final Budget Final Budget
Final Actual Positive Final Actual Positive Final Actual Positive Budget Amounts (Negative) Budget Amounts (Negative) Budget Amounts (Negative) $46,100 $46,100
$95,700 $82,968 ($12,732)
$264 $264 2,058 2,058 10,352 $10,352
264 264 95,700 85,026 (10,674) 46,100 56,452 10,352
264 264 95,700 85,026 (10,674) 46,100 56,452 10,352
(95,700) (95,700) (46,100) (46,100)
(95,700) (95,700) (46,100) (46,100)
264 $264 (10,674) ($10,674) 10,352 $10,352
6,398 29,878 225,433
$6,662 $19,204 $235,785
(Continued)
99 295

TOWN OF MORAGA

OTHER GOVERNMENTAL FUNDS

COMBINING SCHEDULES OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Pavement Management Program Refuse Vehicle Impact Fees
Variance with Variance with
Final Budget Final Budget
Final Actual Positive Final Actual Positive
Budget Amounts (Negative) Budget Amounts (Negative)

REVENUES
Taxes and assessment
Sales tax - public safety
Intergovernmental $842,000 $915,098 $73,098
Interest 22,534 22,534
Parks and recreation
Police services
Planning and permits
Other revenue
Fines, forfeitures and penalties
Total Revenues 842,000 937,632 95,632

EXPENDITURES
Current operations:

General government
Public safety
Planning
Public works
Parks and recreation
Capital outlay
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 842,000 937,632 95,632

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out) ($48,828) ($48,828) (1,405,933) (1,505,933) (100,000) Total Other Financing Sources (Uses) (48,828) (48,828) (1,405,933) (1,505,933) NET CHANGE IN FUND BALANCES (48,828) ($48,828) ($563,933) (568,301) $95,632 BEGINNING FUND BALANCES (DEFICITS) 48,828 711,244
ENDING FUND BALANCES (DEFICITS) $142,943
100
296
Art in Public Spaces ARPA Grants
Variance with Variance with Variance with
Final Budget Final Budget Final Budget
Final Actual Positive Final Actual Positive Final Actual Positive Budget Amounts (Negative) Budget Amounts (Negative) Budget Amounts (Negative) $38,071 $38,071
$607 $607
26,200 26,200
26,807 26,807 38,071 38,071
$10,000 $9,391 $609
54,251 4,300 49,951
15,112 (15,112)
$500 3,750 (3,250)
500 3,750 (3,250) 10,000 9,391 609 54,251 19,412 34,839 (500) 30,057 23,057 (10,000) (9,391) (609) (54,251) 3,232 18,659 54,251 54,251
(162,516) (162,516)
(162,516) (162,516) 54,251 54,251
($500) 23,057 $30,057 ($172,516) (171,907) ($609) ($54,251) 72,910 $57,483 116 171,907 (4,029)
$23,173 $68,881
(Continued)
101
297

TOWN OF MORAGA

OTHER GOVERNMENTAL FUNDS

COMBINING SCHEDULES OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Advance Planning Fees Asset Replacement
Variance with Variance with
Final Budget Final Budget
Final Actual Positive Final Actual Positive
Budget Amounts (Negative) Budget Amounts (Negative)

REVENUES
Taxes and assessment
Sales tax - public safety
Intergovernmental
Interest $35,752 $35,752
Parks and recreation
Police services
Planning and permits
Other revenue $29,036 $29,036 4,500 4,500
Fines, forfeitures and penalties
Total Revenues 29,036 29,036 40,252 40,252

EXPENDITURES
Current operations:

General government
Public safety
Planning
Public works 4,899 (4,899)
Parks and recreation
Capital outlay $388,635 289,908 98,727
Total Expenditures 388,635 294,807 93,828

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 29,036 29,036 (388,635) (254,555) (53,576)

OTHER FINANCING SOURCES (USES)
Transfers in 1,007,000 1,000,000 (7,000)
Transfers (out) (199,906) 199,906
Total Other Financing Sources (Uses) 192,906 1,000,000
NET CHANGE IN FUND BALANCES 29,036 $29,036 ($388,635) 745,445 $139,330 BEGINNING FUND BALANCES (DEFICITS) 32,045 621,640
ENDING FUND BALANCES (DEFICITS) $61,081 $1,367,085
102
298
Comcast PEG Restricted Public Safety Impact Fees Storm Drain Impact Fees Variance with Variance with Variance with
Final Budget Final Budget Final Budget
Final Actual Positive Final Actual Positive Final Actual Positive Budget Amounts (Negative) Budget Amounts (Negative) Budget Amounts (Negative) $17,645 $17,645 $3,575 $3,575 $7,190 $7,190
$44,558 23,074 (21,484) $44,000 1,679 (42,321) $42,000 752 (41,248) 40,719 44,558 (3,839) 44,000 5,254 (38,746) 42,000 7,942 (34,058) 7,035 (7,035)
85,000 85,000
7,035 (7,035) 85,000 85,000
44,558 33,684 3,196 (41,000) 5,254 (123,746) 42,000 7,942 (34,058) (140,000) 140,000 (120,500) 120,500
(140,000) (120,500) 120,500
($95,442) 33,684 $3,196 ($41,000) 5,254 ($123,746) ($78,500) 7,942 $86,442 485,036 85,397 173,437
$518,720 $90,651 $181,379
(Continued)
103
299

TOWN OF MORAGA

OTHER GOVERNMENTAL FUNDS

COMBINING SCHEDULES OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
General Government Facilities Impact Fees Park Development Impact Fees Variance with Variance with
Final Budget Final Budget
Final Actual Positive Final Actual Positive
Budget Amounts (Negative) Budget Amounts (Negative)

REVENUES
Taxes and assessment
Sales tax - public safety
Intergovernmental
Interest $14,499 $14,499 $3,564 $3,564
Parks and recreation
Police services
Planning and permits
Other revenue $402,000 15,207 (386,793) $473,000 18,898 (454,102) Fines, forfeitures and penalties
Total Revenues 402,000 29,706 (372,294) 473,000 22,462 (450,538)

EXPENDITURES
Current operations:

General government
Public safety
Planning
Public works
Parks and recreation
Capital outlay
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 402,000 29,706 (372,294) 473,000 22,462 (450,538)

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out) (306,000) (34,349) 271,651
Total Other Financing Sources (Uses) (306,000) (34,349) 271,651 NET CHANGE IN FUND BALANCES $96,000 (4,643) ($100,643) $473,000 22,462 ($450,538) BEGINNING FUND BALANCES (DEFICITS) 340,948 74,115
ENDING FUND BALANCES (DEFICITS) $336,305 $96,577
104
300
LFFA
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
$266,000 $7,544 ($258,456)
17,563 17,563
266,000 25,107 (240,893)
20,000 20,000
20,000 20,000
246,000 5,107 (240,893)
(688,121) (390,543) 297,578
(688,121) (390,543) 297,578
($442,121) (385,436) $56,685
435,488
$50,052
105
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302

TOWN OF MORAGA

STATISTICAL SECTION
This part of the Town’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Town’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.

Financial Trends
These schedules contain trend information to help the reader understand how the Town’s financial performance and wellbeing have changed over time:

1. Net Position by Component - Last Ten Fiscal Years

2. Changes in Net Position - Last Ten Fiscal Years

3. Fund Balances of Governmental Funds - Last Ten Fiscal Years

4. Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years Revenue Capacity
These schedules contain information to help the reader assess the Town’s most significant local revenue sources, the property tax and sales tax:

1. Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years

2. Assessed Value of Property by Use Code, Townwide - Last Ten Fiscal Years

3. Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years

4. Principal Property Tax Payers - Last Fiscal Year and Ten Years Ago

5. General Fund Property Tax Levies and Collections - Last Ten Fiscal Years

6. Sales Tax Rates

7. Principal Sales Tax Producers - Last Fiscal Year and Nine Years Ago

8. Sales Tax Revenues - Last Ten Fiscal Years

9. Taxable Retail Sales
Debt Capacity
These schedules present information to help the reader assess the affordability of the Town’s current levels of outstanding debt and the Town’s ability to issue additional debt in the future:

1. Ratio of Outstanding Debt by Type - Last Ten Fiscal Years

2. Computation of Direct and Overlapping Debt

3. Computation of Legal Bonded Debt Margin
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the Town’s financial activities take place:

1. Demographic and Economic Statistics - Last Ten Fiscal Years

2. Principal Employers - Last Fiscal Year and Nine Years Ago Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the Town’s financial report relates to the services the Town provides and the activities it performs:

1. Full-Time Equivalent Town Employees by Function - Last Ten Fiscal Years

2. Operating Indicators by Function - Last Ten Fiscal Years

3. Capital Asset Statistics by Function - Last Ten Years 107
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304

TOWN OF MORAGA

NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental activities:

Net investment
in capital assets $37,271,687 $41,118,856 $49,000,379 $57,692,665 $57,692,665 $63,165,320 $66,515,433 $71,923,018 $72,922,208 $80,859,614 Restricted 5,358,218 4,209,026 4,582,338 4,395,963 4,379,364 6,123,811 7,819,983 4,405,314 6,822,097 6,739,212Unrestricted 1,471,051 2,260,694 143,487 3,412,059 3,377,561 1,258,395 3,828,762 9,437,269 11,252,374 7,665,061 Total governmental activities
net position $44,100,956 $47,588,576 $53,726,204 $65,500,687 $65,449,590 $70,547,526 $78,164,178 $85,765,601 $90,996,679 $95,263,887 Source: Town of Moraga: Basic Financial Statements
Fiscal Year Ended June 30,
$0.0
$90.0$80.0$70.0$60.0$50.0$40.0$30.0$20.0$10.0
$100.0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Net Investment in Capital Assets Restricted Unrestricted 109
305

TOWN OF MORAGA

CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year Ended June 30
2016 2017 2018 2019
Expenses
Governmental activities:

General administration $2,026,707 $2,032,953 $2,297,903 $2,252,928 Planning 705,286 841,860 615,531 635,537
Public safety 3,329,382 2,976,211 2,902,846 2,871,971
Public works 2,273,923 2,481,231 2,459,023 2,846,105
Parks and recreation 1,545,628 1,517,572 1,360,153 1,451,004 Interest and long-term debt 360,963 349,969 338,241 323,272 Total Governmental activities expenses 10,241,889 10,199,796 9,973,697 10,380,817 Total Primary Government Expenses $10,241,889 $10,199,796 $9,973,697 $10,380,817 Program Revenues
Governmental activities:

Charges for services:

General administration $243,025 $274,488 $221,143 $213,827 Planning 535,714 476,409 812,217 454,244
Public safety 83,766 69,027 71,631 88,024
Public works 253,065 584,804 570,987 382,365
Parks and recreation 287,884 436,948 381,256 362,251
Operating Grants and Contributions 3,569,566 1,173,070 5,457,409 5,442,037 Capital Grants and Contributions 1,050,101 2,978,412 503,124 136,933 Total Governmental activities program revenues 6,023,121 5,993,158 8,017,767 7,079,681 Net Revenues / (Expenses)
Governmental activities (4,218,768) (4,206,638) (1,955,930) (3,301,136) Total Primary Government Net Expense ($4,218,768) ($4,206,638) ($1,955,930) ($3,301,136) General Revenues and Other Changes in Net Position
Governmental activities:

Taxes:

Property tax $3,673,444 $3,888,623 $4,130,507 $4,680,092 Sales tax 2,698,602 2,715,945 2,795,331 3,113,516
Franchise tax 1,007,135 1,023,529 1,079,525 1,252,102
Motor vehicle in-lieu
Gas tax
Assessment
Interest and use of property 66,919 66,161 88,195 124,066 Other 343,695
Total Governmental activities 7,789,795 7,694,258 8,093,558 9,169,776 Change in Net Position
Governmental activities 3,571,027 3,487,620 6,137,628 5,868,640 Total Primary Government Change in Net Position $3,571,027 $3,487,620 $6,137,628 $5,868,640 Source: Town of Moraga: Basic Financial Statements
110
306
Fiscal Year Ended June 30
2020 2021 2022 2023 2024 2025
$2,817,369 $2,825,163 $3,030,241 $3,313,148 $3,536,993 $4,110,627 855,304 688,562 777,618 631,532 891,736 923,104
3,606,434 3,229,627 3,830,814 2,836,278 3,677,948 3,781,249 3,278,173 3,198,868 3,957,682 3,499,822 4,686,815 4,937,498 1,653,945 1,527,039 1,754,878 1,727,601 2,154,818 2,289,775 308,171 292,572 241,853 228,053 94,504 145,700
12,519,396 11,761,831 13,593,086 12,236,434 15,042,814 16,187,953 $12,519,396 $11,761,831 $13,593,086 $12,236,434 $15,042,814 $16,187,953 $306,087 $461,538 $482,986 $659,061 $368,286 $477,869
480,145 515,217 600,562 532,625 543,524 601,267
55,535 50,337 70,127 111,755 66,646 232,445
354,416 393,586 422,751 443,211 948,816 645,086
421,936 499,750 608,328 778,403 969,182 1,021,689
6,134,177 1,942,601 2,066,595 2,418,050 2,210,181 2,081,706 375,722 2,740,338 6,033,911 4,583,510 975,495 2,492,007 8,128,018 6,603,367 10,285,260 9,526,615 6,082,130 7,552,069 (4,391,378) (5,158,464) (3,307,826) (2,709,819) (8,960,684) (8,635,884) ($4,391,378) ($5,158,464) ($3,307,826) ($2,709,819) ($8,960,684) ($8,635,884) $5,350,049 $5,588,458 $5,827,476 $6,239,991 $6,504,022 $6,735,839 3,107,449 3,677,440 4,043,356 4,057,799 4,042,457 4,032,280 1,521,963 834,981 871,755 917,590 953,909 975,829
266,663 138,986 192,697 680,309 1,096,121 1,159,144
10,246,124 10,239,865 10,935,284 11,895,689 12,596,509 12,903,092 5,854,746 5,081,401 7,627,458 9,185,870 3,635,825 4,267,208 $5,854,746 $5,081,401 $7,627,458 $9,185,870 $3,635,825 $4,267,208 111
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308

TOWN OF MORAGA

FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Fund
Nonspendable $327 $3,051 $1,719 $116,880 $242 $23,424 $3,150 $46,482Restricted 16,535 16,535 1,611,788 16,520 $16,520Committed 3,193,822 $928,948 1,912,602 2,873,303 2,514,013 2,491,873 4,512,876 4,286,024 2,785,733 9,610,729Assigned 3,763,132 212,668 809,668 24,380 165,000 334,904Unassigned 4,116,870 2,309,276 3,375,320 4,530,170 4,992,784 5,040,079 6,135,614 5,353,029 8,293,284 367,873 Total General Fund $7,311,019 $7,001,356 $5,503,641 $8,214,860 $7,648,057 $7,713,729 $10,688,449 $11,253,991 $11,142,019 $10,330,026 All Other Governmental Funds
Restricted $6,277,032 $5,364,954 $3,708,786 $4,427,999 $4,888,214 $5,268,386 $5,229,746 $4,388,779 $5,110,726 $4,293,325 Committed 1,649,665 1,742,264 1,963,992 695,928 2,033,363 98,586 1,069,968 5,432,465 3,754,765 3,415,605 Assigned 1,229,115 2,160,861 438,799 2,755,954 1,057,482Unassigned (1,020,094) (541,440) (1,530,987) (472,276) (4,029) 68,881 Total All Other Governmental Funds $7,926,697 $7,107,218 $4,652,684 $4,582,487 $5,390,590 $6,123,811 $8,460,575 $10,260,043 $11,617,416 $8,835,293 (a) The General Fund balance includes monies derived from the Palos Colorado's development. The Town Council has committed these funds for future projects.Source: Town of Moraga: Basic Financial Statements $5.0$0.0
$25.0$20.0$15.0$10.0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Reserved Unreserved Nonspendable Restricted Committed Assigned Unassigned 113
309

TOWN OF MORAGA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30
2016 2017 2018 2019
Revenues
Property taxes and assessments $2,916,958 $3,001,995 $3,181,741 $3,285,156 Property taxes - in lieu (motor vehicle) 1,533,346 1,622,029 1,712,049 1,811,813 Sales taxes 930,860 1,072,512 1,098,280 1,220,022
Sales & use tax - in lieu 201,338
Sales tax - 1% local add-on 1,629,441 1,709,325 1,766,158 1,965,304 Franchise fees 1,007,135 1,023,530 1,079,526 1,252,102
Real property transfer fees 157,140 155,746 191,523 145,553 Motor vehicle license fees 6,644 7,398 9,365 8,156
Planning and permits 535,714 476,409 812,218 427,719
Parks and recreation 561,284 457,350 613,817 362,254
Police services 83,766 69,026 71,631 88,023
Public works services 333,965 231,808 221,741 322,141
Intergovernmental 745,120 1,990,524 5,162,434 3,842,903 Fines, forfeitures and penalties 32,408 47,615 41,688 40,328 Interest 66,920 66,146 88,194 124,062
Property rentals 89,867 92,653 95,851 99,277
Other revenues 3,081,010 589,364 619,048 276,302
Total Revenues 13,912,916 12,613,430 16,765,264 15,271,115 Expenditures
Current operations:

General administration 1,610,798 1,676,824 2,191,396 2,044,802 Planning 550,689 686,417 554,658 617,689
Police 2,537,267 2,564,426 2,706,935 2,805,252
Public works 1,067,553 1,213,060 1,257,506 1,589,154
Parks and recreation 1,187,549 1,220,187 1,158,078 1,304,221 Debt service:

Principal 355,375 365,842 381,321 375,000
Interest 373,960 362,966 351,238 336,269
Capital outlay 5,101,145 7,287,905 9,731,814 2,679,406
Total Expenditures 12,784,336 15,377,627 18,332,946 11,751,793 Revenues over (under) expenditures 1,128,580 (2,764,197) (1,567,682) 3,519,322 Other Financing Sources (Uses)
Transfers in 5,365,999 5,114,321 5,673,699 5,723,806
Transfers (out) (5,365,999) (5,114,321) (5,673,699) (5,723,806) Proceeds from loan / debt issuance
Total Other Financing Sources (Uses) 0 0 0 0
Net Change in Fund Balance $1,128,580 ($2,764,197) ($1,567,682) $3,519,322 Debt service as a percentage of
noncapital expenditures 8.0% 9.3% 9.2% 7.9%
Source: Town of Moraga: Basic Financial Statements
114
310
Fiscal Year Ended June 30
2020 2021 2022 2023 2024 2025
$3,440,576 $3,582,193 $3,741,016 $4,004,094 $4,145,502 $4,278,366 1,909,473 2,006,265 2,086,460 2,235,897 2,358,520 2,457,473 1,108,728 1,237,112 1,379,392 1,387,894 1,390,457 1,362,478 1,998,721 2,440,328 2,663,964 2,669,905 2,652,000 2,669,802 1,521,963 834,981 871,755 917,590 953,909 975,829
159,559 283,269 302,425 158,215 133,681 151,872
13,406 12,429 19,431 17,704 21,335 27,282
418,252 514,939 599,684 525,967 531,023 561,408
557,868 499,750 608,327 778,405 969,184 995,489
72,973 50,337 70,128 111,755 66,645 232,444
354,417 393,586 364,298 438,211 507,203 667,546
4,867,848 6,438,549 5,953,009 6,941,931 3,580,969 4,466,215 32,475 21,998 25,374 36,029 33,783 39,931
166,535 39,880 73,639 559,496 977,463 799,987
100,130 99,106 119,058 120,813 121,770 120,256
490,374 209,290 2,467,402 518,398 249,004 411,798
17,213,298 18,664,012 21,345,362 21,422,304 18,692,448 20,218,176 2,521,018 2,542,246 2,748,297 3,201,897 3,191,868 3,520,409 760,404 653,360 676,692 740,576 836,848 801,632
3,016,816 3,030,934 3,231,081 3,603,086 3,636,363 3,728,464 1,622,055 1,637,962 1,784,367 1,834,810 1,943,436 2,407,985 1,421,420 1,357,792 1,530,762 1,734,210 1,972,489 2,005,903 390,000 1,245,000 345,000 355,000 4,650,000 360,000
321,168 305,569 254,850 241,050 251,630 199,900
8,738,446 6,097,565 5,462,829 7,473,344 3,782,460 10,287,999 18,791,327 16,870,428 16,033,878 19,183,973 20,265,094 23,312,292 (1,578,029) 1,793,584 5,311,484 2,238,331 (1,572,646) (3,094,116) 5,415,525 6,041,418 7,138,461 11,625,458 4,576,663 10,410,694 (5,415,525) (6,041,418) (7,138,461) (11,625,458) (6,271,514) (10,910,694) 4,512,898 0
0000 2,818,047 (500,000)
($1,578,029) $1,793,584 $5,311,484 $2,238,331 $1,245,401 ($3,594,116)

7.8% 7.0% 14.4% 5.6% 29.5% 4.3%
115
311
Fiscal Year End
Residential
Property
Commercial
Property
Industrial
Property
Other
Property*
Unsecured
Property
Less TaxExempt
Property
Taxable Assessed
Value
Total Tax
Rate (1)
Estimated Actual
Taxable Value (2)
Factor of
Taxable
Assessed
Value (2)
2015-16 $3,376,268,618 $101,893,597 $10,267,743 $315,176,410 $19,911,343 $242,201,114 $3,581,316,597 1.087400 $7,899,958,887 2.2058812016-17 3,568,968,130 104,795,692 8,643,428 336,112,559 20,181,060 247,929,016 3,790,771,853 1.077900 9,010,566,135 2.3769742017-18 3,770,046,544 105,160,237 8,800,562 275,390,226 20,247,588 176,617,350 4,003,027,807 1.102700 7,046,621,918 1.7603232018-19 4,004,575,572 110,735,016 8,967,631 349,250,799 19,800,159 255,005,861 4,238,323,316 1.097200 8,928,229,131 2.1065472019-20 4,250,814,732 112,829,167 9,136,909 341,567,058 19,568,271 265,511,717 4,468,404,420 1.118000 7,467,886,537 1.6712652020-21 4,471,323,704 117,453,317 9,309,888 343,427,969 21,332,231 266,306,530 4,696,540,579 1.092200 6,722,163,499 1.4313012021-22 4,667,510,410 119,323,796 9,396,051 340,730,586 21,012,256 272,412,354 4,885,560,745 1.097900 10,767,038,162 2.2038492022-23 5,014,784,887 121,089,073 9,578,363 343,403,296 23,857,373 274,819,848 5,237,893,144 1.091800 13,693,237,873 2.6142642023-24 5,286,469,483 132,047,072 9,769,795 361,452,522 27,292,843 290,152,967 5,526,878,748 1.088600 10,252,545,113 1.8550332024-25 5,516,489,988 134,435,803 9,962,905 367,017,141 27,085,170 294,811,074 5,760,179,933 1.113900 11,501,781,212 1.996775 *Other value includes unitary amount of $209,994(2.) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices. Based on these calculations a multiplier value was extrapolated and applied to current assessed values. (1.) Total tax rate is represented by TRA 15-002.

Town of Moraga
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Source: Contra Costa County Assessor data, Neumo / MuniServices, LLC 116
312
Category 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Residential $3,376,268,618 $3,568,968,130 $3,770,046,544 $4,004,575,572 $4,250,814,732 $4,471,323,704 $4,667,510,410 $5,014,784,887 $5,286,469,483 $5,516,489,988 Institution 234,248,426 240,107,445 182,977,401 255,492,713 263,942,279 267,786,192 275,051,429 275,348,452 290,321,319 293,395,579 Commercial 101,893,597 104,795,692 105,160,237 110,735,016 112,829,167 117,453,317 119,323,796 121,089,073 132,047,072 134,435,803 Vacant 55,391,943 69,413,408 65,179,598 65,628,242 48,909,262 46,034,727 36,475,742 36,881,257 39,413,141 45,063,943 Recreation 16,725,492 17,647,225 17,938,305 18,203,687 18,482,002 19,115,198 18,558,386 18,900,656 19,264,318 18,336,708 Industrial 10,267,743 8,643,428 8,800,562 8,967,631 9,136,909 9,309,888 9,396,051 9,578,363 9,769,795 9,962,905 Professional 3,761,444 3,818,802 4,237,495 4,748,861 4,843,835 4,996,621 5,093,154 5,035,177 5,075,795 5,141,146 Rural 3,350,060 3,401,144 3,300,255 3,366,256 3,433,578 3,502,244 3,538,523 2,965,669 3,024,980 3,192,566Miscellaneous 784,230 796,602 812,532 828,772 845,345 862,249 871,178 888,598 906,408 924,533Agriculture 791,024 804,142 820,849 836,808 965,297 985,278 996,714 3,173,493 3,236,567 752,672 Unitary 123,791 123,791 123,791 145,460 145,460 145,460 145,460 209,994 209,994 209,994 Gross Secured Value 3,803,606,368 4,018,519,809 4,159,397,569 4,473,529,018 4,714,347,866 4,941,514,878 5,136,960,843 5,488,855,619 5,789,738,872 6,027,905,837 Unsecured 19,911,343 20,181,060 20,247,588 19,800,159 19,568,271 21,332,231 21,012,256 23,857,373 27,292,843 27,085,170 Less: All Exemptions 242,201,114 247,929,016 176,617,350 255,005,861 265,511,717 266,306,530 272,412,354 274,819,848 290,152,967 294,811,074 Net Assessed Value $3,581,316,597 $3,790,771,853 $4,003,027,807 $4,238,323,316 $4,468,404,420 $4,696,540,579 $4,885,560,745 $5,237,893,144 $5,526,878,748 $5,760,179,933 Source: Contra Costa County Assessor data, Neumo / MuniServices, LLC Use code categories are based on Contra Costa County Assessor's data Town of Moraga
Assessed Value of Property by Use Code, Townwide
Last Ten Fiscal Years
Residential

91.5%
Institution

4.9%
Commercial

2.2% Vacant

0.7% Industrial

0.2%
ResidentialInstitutionCommercialVacantRecreationIndustrialProfessionalRuralMiscellaneousAgricultureUnitary 117
313
2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 2021‐22 2022‐23 2023‐24 2024‐25 Basic City and County Levy
TOWN OF MORAGA 0.052732 0.052732 0.052732 0.052732 0.052732 0.052732 0.052732 0.052732 0.052732 0.052732 COUNTY OF CONTRA COSTA 0.947268 0.947268 0.947268 0.947268 0.947268 0.947268 0.947268 0.947268 0.947268 0.947268 TOTAL 1% BREAKOUT 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 Override Assessments
BART 0.002600 0.008000 0.008400 0.007000 0.012000 0.013900 0.006000 0.014000 0.013400 0.014800EAST BAY REG PK BD 0.006700 0.003200 0.002100 0.002100 0.009400 0.001400 0.002000 0.005800 0.005700 0.001300ACALANES UNION 0.033200 0.032300 0.032500 0.032300 0.032600 0.032700 0.033600 0.032500 0.031500 0.031000MORAGA ELEM BON 0.022900 0.022400 0.048300 0.044800 0.045200 0.028100 0.038700 0.023300 0.023400 0.052600COMMUNITY COLLEGE 0.022000 0.012000 0.011400 0.011000 0.018800 0.016100 0.017600 0.016200 0.014600 0.014200 TOTAL OVERRIDE RATE 0.087400 0.077900 0.102700 0.097200 0.118000 0.092200 0.097900 0.091800 0.088600 0.113900 TOTAL TAX RATE 1.087400 1.077900 1.102700 1.097200 1.118000 1.092200 1.097900 1.091800 1.088600 1.113900 Source: County Auditor/Controller data, Neumo / MuniServices, LLC Rates are not adjusted for ERAF.TRA 15‐002 is represented for this report.

Town of Moraga
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
118
314
Taxpayer Taxable Value ($)
Percent of
Total City
Taxable
Value (%) Taxable Value ($)
Percent of
Total City
Taxable
Value (%)
Rheem Valley Property Owner LP $48,378,600 0.84%
Russell J Bruzzone Inc 28,094,918 0.49% $21,844,443 0.61% ASC Moraga LLC 14,487,390 0.25% 12,295,328 0.34%
Vanguard Apartments LLC 13,099,907 0.23% 3,868,552 0.11% S4 Nest LLC 11,071,140 0.19%
Gage Investment Properties LLC 10,302,099 0.18% 8,743,318 0.24% Luxor Moraga LLC 9,690,000 0.17%
Markets Angelos 9,687,209 0.17% 6,705,000 0.19%
Bigbury Company N V 9,467,364 0.16% 8,035,275 0.22%
Moraga Country Club HOA 9,249,804 0.16% 17,073,314 0.48% Moraga Royale LLC 8,625,627 0.15%
Comcast Of California I Inc 8,356,709 0.15%
NKS Property LLC 6,319,493 0.11%
KN Productions Inc 6,095,072 0.11% 5,172,844 0.14%
Logos Property Investment W 5,806,721 0.10%
Vrionis Michael G & Maria TRE 4,669,614 0.08% 3,963,067 0.11% Outdo Country Club Drive LLC 4,441,506 0.08%
Moraga Creekside LLC 4,435,673 0.08% 3,774,557 0.11%
348 Rheem Boulevard LLC 4,395,829 0.08%
Gage Deborah S Tre 4,304,735 0.07% 3,653,397 0.10%
Zimring Dov & Jennifer TRE 4,131,710 0.07%
Conn Robert Alan & Lauren J 4,073,000 0.07%
2157 Donald Dr Assoc LLC 4,071,641 0.07%
Kimball Andrew E & Rachel S 4,011,088 0.07% 3,404,183 0.10% AAAAA Rent‐A‐Space & Moraga Ltd 3,995,561 0.07% 3,470,527 0.10% PK I Rheem Valley LP 35,198,963 0.98%
Summerhill Rl LLC 16,310,000 0.46%
GKHB Royale Investments LP 7,644,992 0.21%
Jaber Philip J TRE 5,262,750 0.15%
Moraga Builders Corp 5,111,070 0.14%
CT Operating Partnership LP 3,608,905 0.10%
Puri Mahesh K Minoo 3,378,745 0.09%
Wang Judy 3,209,760 0.09%
Ansari Mohammadali TRE 3,053,000 0.09%
Doyle Patrick K TRE 3,050,349 0.09%
Beeri Giora 2,842,391 0.08%
Qi Xiaoxuan 2,813,343 0.08%
Total Top 25 Taxpayers 241,262,410 4.19% 193,488,073 5.40% Total Taxable Value $5,760,179,933 100.00% $3,581,316,597 100.00% Source: County Assessor data, Neumo / MuniServices, LLC 2024‐25 2015‐16
Town of Moraga
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
119
315
212
212
213
Percent of
Property Tax Total Tax
Levied and Collections
Fiscal Year Collected (a) to Tax Levy (b)
2016 $3,516,304 100%
2017 3,732,878 100%
2018 3,939,215 100%
2019 4,162,058 100%
2020 4,374,049 100%
2021 4,729,061 100%
2022 4,862,942 100%
2023 5,327,388 100%
2024 5,578,836 100%
2025 5,799,932 100%
(a) Property tax levied and collected includes secured, unsecured and supplemental property tax revenue, as well as property tax in lieu, and homeowner's property tax relief revenue receipts. (b) The Town participates in the County's Teeter Plan and thus receives 100% of secured property taxes levied in exchange for foregoing any interest and penalties collected on delinquent taxes.

Source: Town of Moraga: Basic Financial Statements, General Fund Statement of Revenues Expenditures and Changes in Fund Balance

TOWN OF MORAGA

GENERAL FUND PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
120
316
Rate
California State Tax 6.00%
Contra Costa County Tax 0.25%
Town of Moraga Tax 1.00% (b)
Bay Area Rapid Transit (BART) 0.50%
Contra Costa Transportation Authority (CCTA) 0.50%
County of Contra Costa Transactions and Use Tax (CCTU) 0.50% Town of Moraga Local Transaction and Use Tax (a) 1.00%
Total 9.75%
(a) November 2012 Measure K voter-approved local add-on sales tax. (b) Sales tax imposed within the Town are distributed by the State to various agencies, with the Town receiving 1.0% of the amount collected less 0.25% shifted to the State pursuant to a mechanism commonly known as “Triple Flip.” The 0.25% reduction in local sales tax is used to pay State economic recovery bonds, but cities and counties are then provided with ad valorem property tax revenues in lieu of these revenues.

Source: State of California Board of Equalization

TOWN OF MORAGA

SALES TAX RATES
Effective January 1, 2021
121
317
Taxpayer Business Type Taxpayer Business Type
7‐Eleven Food Stores Food Markets 7‐Eleven Food Stores Food Markets Arco AM/PM Mini Marts Service Stations Arco AM/PM Mini Marts Service Stations Bay Area Drainage Business Services Argo Hospitality Services RestaurantsCanyon Club Brewery Food Processing Eqp Barnes & Noble Bookstores Miscellaneous Retail Chevron Service Stations Service Stations Chevron Service Stations Service Stations CVS/Pharmacy Drug Stores CVS/Pharmacy Drug Stores
Dollar Tree Stores Department Stores Dollar Tree Stores Department StoresHacienda De Las Flores Restaurants Dover Saddlery Recreation Products Homegoods Furniture/Appliance Homegoods Furniture/ApplianceLa Penne Pizza Pub & Pizza Restaurants La Penne Pizza Pub & Pizza Restaurants Moraga Country Club Miscellaneous Retail Mccaulou Deparment Store Department Stores Moraga Gas And Mart Service Stations Moraga Auto Care & Service Auto Parts/Repair Moraga Hardware & Lumber Bldg.Matls‐Retail Moraga Country Club Miscellaneous RetailMoraga Service Center Service Stations Moraga Hardware & Lumber Bldg.Matls‐RetailMoraga Star Service Stations Service Stations Moraga Service Center Service Stations Moraga Wines & Spirits Liquor Stores Moraga Star Service Stations Service Stations Mountain Mike's Pizza Restaurants Moraga Wines & Spirits Liquor Stores Nations Giant Hamburgers Restaurants Nations Giant Hamburgers Restaurants Outdoor Supply Hardware Bldg.Matls‐Retail Orchard Supply Hardware Bldg.Matls‐RetailSafeway Stores Food Markets Proforma Element3 Business ServicesSodexo America Restaurants Ristorante Amoroma Restaurants Sushi Fighter Miscellaneous Other Safeway Stores Food Markets Taco Bell Restaurants Sodexo America Restaurants
Tj Maxx Apparel Stores Tj Maxx Apparel Stores
Town Bakery & Cafe Restaurants Valero Service Stations Service Stations Source: Neumo / MuniServices, LLC
Last Fiscal Year and Nine Years Ago
2024‐25 2015‐16
Town of Moraga
Principal Sales Tax Producers
122
318
Fiscal Year Sales & Use Tax (a) Sales Tax In-Lieu (a) Transactions & Use Tax (b) All Sales Tax Total Percent Change 2016 $867,823 $201,338 $1,629,441 $2,698,602 -2.1%2017 1,006,620 0 1,709,325 2,715,945 0.6%2018 1,029,173 0 1,766,158 2,795,331 2.9%2019 1,148,212 0 1,965,304 3,113,516 11.4%2020 1,042,050 0 1,998,721 3,040,771 -2.3%2021 1,153,003 0 2,440,328 3,593,330 18.2%2022 1,285,130 0 2,663,964 3,949,094 9.9%2023 1,295,778 0 2,669,905 3,965,683 0.4%2024 1,300,382 0 2,652,000 3,952,382 -0.3%2025 1,285,510 0 2,669,802 3,955,312 0.1% (a) The Town of Moraga's Sales Tax is comprised of 0.75% of the Bradley Burns 1% base share from Contra Costa County and 0.25% in Sales Tax In Lieu (e.g., the State "Triple Flip"). Excludes State Sales Tax for Public Safety (Proposition 172). (b) In November 2012, the voters of Moraga approved the 1% Measure K Local Add-On Sales Tax, technically called a Transactions and Use Tax.Source: Town of Moraga: Basic Financial Statements, Governmental Funds Statement of RevenuesExpenditures and Changes in Fund Balance

TOWN OF MORAGA

SALES TAX REVENUES
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
$0
$500,000
$4,500,000$4,000,000$3,500,000$3,000,000$2,500,000$2,000,000$1,500,000$1,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Fiscal Year Sales & Use Tax Sales Tax In-Lieu Transactions & Use Tax 123
319
Year Number of Permits Taxable Transactions Number of Permits Taxable Transactions 2015 (a) 211 $80,531 335 $90,281
2016 (a) 210 78,532 340 88,058
2017 (a) 207 78,332 333 90,380
2018 (a) 202 82,664 347 97,946
2019 (a) 192 79,379 343 92,499
2020 (a) 188 69,443 343 80,657
2021 (a) 188 86,297 329 97,652
2022 (a) 199 95,575 349 107,939
2023 (a) 183 93,600 325 107,734
2024 (a) 178 92,306 321 105,174
(a) Data not comparable to years prior to 2009. "Retail" category now includes "Food Services." Source: State of California Board of Equalization. Taxable Sales in California (Sales & Use Tax).

TOWN OF MORAGA

TAXABLE RETAIL SALES
(Dollars in Thousands)
Retail Stores Total All Outlets
124
320

TOWN OF MORAGA

RATIO OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Notes Total Percentage
Fiscal Certificates of and Loans Governmental of Personal Per Year Participation Payable Activities Income (a) Capita (a) 2014-15 $8,648,952 $47,537 $8,696,489 0.91% $528
2015-16 8,295,956 32,162 8,328,118 0.82% 504.34
2016-17 7,932,959 16,321 7,949,280 0.74% 476.69
2017-18 7,554,962 0 7,554,962 0.65% 444.64
2018-19 7,166,965 0 7,166,965 0.58% 423.18
2019-20 6,763,968 0 6,763,968 0.53% 399.15
2020-21 5,505,971 0 5,505,971 0.40% 327.35
2021-22 5,147,974 0 5,147,974 0.32% 300.96
2022-23 4,779,977 0 4,779,977 0.26% 282.96
2023-24 4,485,749 0 4,485,749 0.22% 265.90
2024-25 4,071,549 0 4,071,549 0.19% 244.73
(a) See Schedule "Demographic and Economic Statistics" for personal income and population data. 2013 was the Town of Moraga's first ACFR publication, certain prior year data is unavailable.

Source: Town of Moraga: Basic Financial Statements
Governmental Activities
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 125
321

REVISED COPY

TOWN OF MORAGA
2024-25 Assessed Valuation: $5,783,083,939
Total Debt Town’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/25 % Applicable (1) Debt 6/30/25 Bay Area Rapid Transit District $2,391,260,000 0.552% $13,199,755 Contra Costa Community College District 591,875,000 2.076 12,287,325 Acalanes Union High School District 144,764,229 11.794 17,073,493 Moraga School District 45,510,000 97.858 44,535,176
Orinda Union School District 79,455,000 0.252 200,227
East Bay Regional Park District 145,930,000 0.861 1,256,457 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $88,552,433
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Contra Costa County General Fund Obligations $150,845,000 2.070% $ 3,122,492 Moraga School District General Fund Obligations 6,483,234 97.858 6,344,363 Orinda Union School District General Fund Obligations 2,095,000 0.252 5,279 Town of Moraga Certificates of Participation 4,071,459 100. 4,071,459 (2) Moraga-Orinda Fire Protection District General Fund Obligations 1,800,000 36.837 663,066 Contra Costa Mosquito District General Fund Obligations 8,050,000 2.070 166,635 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $14,373,294 Less: Contra Costa County Obligations supported by revenue funds 716,941 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $13,656,353 TOTAL DIRECT DEBT $4,071,459
TOTAL GROSS OVERLAPPING DEBT $98,854,268
TOTAL NET OVERLAPPING DEBT $98,137,327
GROSS COMBINED TOTAL DEBT $102,925,727 (3)
NET COMBINED TOTAL DEBT $102,208,786
(1) The percentage of overlapping debt applicable to the town is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the town divided by the district's total taxable assessed value. (2) Includes 6/30/25 unamortized premium of $461,459.
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Ratios to Assessed Valuation:

Total Overlapping Tax and Assessment Debt ............................. 1.53% Total Direct Debt ($4,071,459) ................................................ 0.07% Gross Combined Total Debt ....................................................... 1.78% Net Combined Total Debt ........................................................... 1.77% Source: Avenu Insights & Analytics
California Municipal Statistics, Inc
126
322
ASSESSED VALUATION:

Secured property assessed value, net of exempt real property $5,760,179,933 BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) $216,006,747 AMOUNT OF DEBT SUBJECT TO LIMIT:

Total Bonded Debt $0 (b)
Amount of debt subject to limit 0
LEGAL BONDED DEBT MARGIN $216,006,747
(a) California Government Code, Section 43605 sets the debt limit at 15%. The section was enacted prior to the change in basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is one-fourth the limit to account for the adjustment of showing assessed valuation at full cash value. (b) The Town of Moraga's debt under the 2010 and 2013 Certificates of Participation (COP) are not subject to the computation of bonded debt under the California Government Code, Section 43605.

COMPUTATION OF LEGAL BONDED DEBT MARGIN
JUNE 30, 2025

TOWN OF MORAGA
127
323
Fiscal Year
Population
(1) Personal Income
Per Capita
Personal
Income (2)
Median
Age
Public School
Enrollment (3)
County
Unemployment
Rate (%) (4)
City
Unemployment
Rate (%) (4)
County
Population
2015‐16 16,513 $1,016,816,873 $61,577 44.7 1,886 5.0 3.5 1,123,429 2016‐17 16,676 1,076,279,379 64,541 44.1 1,898 4.4 4.3 1,139,513 2017‐18 16,991 1,166,384,745 68,647 43.4 1,832 3.1 3.3 1,149,363 2018‐19 16,939 1,226,520,298 72,408 42.8 1,851 2.6 3.3 1,155,879 2019‐20 16,946 1,276,182,925 75,309 43.4 1,855 13.6 8.7 1,153,561 2020‐21 16,820 1,367,263,487 81,288 43.2 1,769 8.9 5.2 1,153,854 2021‐22 17,105 1,597,078,969 93,369 42.2 1,724 2.7 2.5 1,156,555 2022‐23 16,893 1,839,740,780 108,906 41.4 1,735 3.7 3.4 1,147,653 2023‐24 16,870 2,053,059,600 121,699 41.3 1,775 3.9 3.5 1,165,927 2024‐25 16,637 2,183,007,817 131,214 41.4 1,805 4.2 4.4 1,158,225

Town of Moraga
Demographic and Economic Statistics
Last Ten Fiscal Years

3.) Student Enrollment reflects the total number of students enrolled in the Moraga Elementary School District only. Any other school districts within the City are not accounted for in this statistic.

Source: Neumo / MuniServices, LLC

1.) Population Projections are provided by the California Department of Finance Projections.

2.) Income Data is provided by the U.S. Census Bureau.

4.) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department. 128
324
Business Name
Number of
Employees
Percent of Total
Employment (%)
Number of
Employees
Percent of Total
Employment (%)
Saint Mary's College of California 1,032 13.58% 824 11.61% Moraga Unified School District* 318 4.18%
Moraga Country Club 287 3.78% 67 0.94%
Bright Star Care Home Care 180 2.37% 170 2.39%
Safeway Grocery Store** 131 1.72% 118 1.66%
Campolindo High School* 101 1.33% 91 1.28%
Aegis Living Moraga 86 1.13% 63 0.89%
Moraga Post Acute 67 0.88% 59 0.83%
TJ Maxx** 61 0.80% 42 0.59%
Home Goods** 44 0.58%
Moraga Gardens Farm 50 0.70%
Outdoor Supply Hardware 47 0.66%
Total Top Employers 2,307 30.36% 1,531 21.56%
Total Labor Force (1) 7,600 7,100
Source: FY2019‐20 Comprehensive Annual Financial Report (Historical data not available) (1) Total City Labor Force provided by EDD Labor Force Data * Includes all classified, certificated, admin, full‐time. ** Includes Full & Part Time Employees
2019‐20
Town of Moraga
Principal Employers
Last Fiscal Year and Nine Years Ago
Results based on direct correspondence with city’s local businesses. 2024‐25
Source: Neumo / MuniServices, LLC
129
325
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function
General Government 5.50 5.50 5.75 5.75 6.20 6.20 6.20 6.20 6.45 6.45 Planning 5.00 5.00 5.00 5.00 4.50 4.70 4.70 4.70 4.70 4.70 Police 14.00 14.00 13.75 13.75 13.75 13.75 13.75 14.75 14.75 14.75 Public Works/Engineering 6.80 5.80 5.86 5.86 7.61 7.61 7.96 8.06 9.06 9.06 Parks & Recreation 6.20 6.20 6.14 6.14 6.39 6.04 6.04 6.39 6.39 6.39 Total FTE 37.50 36.50 36.50 36.50 38.45 38.30 38.65 40.10 41.35 41.35 Source: Town of Moraga Adopted Budget Documents

TOWN OF MORAGA

FULL-TIME EQUIVALENT TOWN EMPLOYEES BY FUNCTION
Last Ten Fiscal Years

0.00 5.00

10.00 15.00

20.00 25.00

30.00 35.00

40.00 45.00
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
FTE
General Government Planning Police Public Works/Engineering Parks & Recreation 130
326

TOWN OF MORAGA

OPERATING INDICATORS BY FUNCTION
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
FUNCTIONPolice
Crime by type: (a)
Homicide 0 0 1 0 0 0 0 0 1 0Forcible Rape 1 1 2 0 0 2 1 2 2 1Robbery 2222002330Assault 20 14 14 5 9 14 34 19 27 12Burglary 41 24 12 19 10 17 38 37 37 18Larceny 136 95 72 36 64 66 101 78 64 41Motor Vehicle Theft 24 24 8 4 8 6 8 20 13 2 Total crime by type 224 160 111 66 91 105 184 159 147 74 Public Works
Potholes repaired (square miles) 140 140 140 140 121 104 100 200 150 104Street Sweeping (miles) 104 104 112 112 112 112 112 112 224 224 Volume of material removed (cubic yards) 75 75 80 80 90 80 80 70 120 120Storm Drains: Catch basins cleaned 18 15 18 18 19 15 16 16 21 10 Volume of material removed (cubic yards) 10 10 11 11 12 9 10 10 12 6 Community Facilities
Parks and recreation class offerings (b) 165 165 119 137 166 102 166 226 351 374Parks and recreation class participants (b) 1,843 1,713 1,135 1,611 2,073 963 2,299 3,361 4,051 3,738 (a) Crime statistics as reported to the Department of Justice.(a) Parks and recreation data is based on an "academic year" of Fall through Summer.Source: Town Departments 131
327
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
FUNCTIONPublic Safety
Police stations 1111111111Fire stations (a) 2222222222
Public Works
Streets (miles of) 56 56 56 56 56 56 56 56 56 56
Street lights 1,054 1,054 1,054 1,054 1,054 1,054 1,054 1,054 1,054 1,054Traffic signals (b) 9.5 9.5 9.5 9.5 9.5 9.5 9.5 9.5 9.5 9.5Storm drains pipes (miles of) 45 45 45 45 45 45 45 45 45 45 Storm drainage inlets 2,350 2,350 2,350 2,350 2,350 2,350 2,350 2,350 2,350 2,350High Visibility Crosswalks 2222222222 Community Facilities
Parks 3333333444Park acreage 57 57 57 57 57 57 57 60 60 60 Open space acreage 250 250 250 250 250 250 250 250 250 250Libraries (c) 1111111111 (a) The Moraga-Orinda Fire District provides fire services.(b) Moraga shares responsibility of one traffic signal located at Moraga Way @ Ivy Drive with the City of Orinda.(c) Contra Costa County leases the Town's building and operates library services.Source: Various Town documents, including Adopted Budgets, General Plan, Parks & Recreation Master Plan, Lighting Assessment District Engineer's Report, GASB 34Implementation Study

TOWN OF MORAGA

CAPITAL ASSET STATISTICS BY FUNCTION
Last Ten Years
132
328

TOWN OF MORAGA

MEMORANDUM ON INTERNAL CONTROL

FOR THE YEAR ENDED
JUNE 30, 2025
Attachment B
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330

TOWN OF MORAGA

MEMORANDUM ON INTERNAL CONTROL
For the Year Ended June 30, 2025
Table of Contents
Page
Memorandum on Internal Control .................................................................................................................... 1 Schedule of Other Matters .............................................................................................................................. 3 Attachment B
331
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Attachment B
332

MEMORANDUM ON INTERNAL CONTROL
To the Honorable Mayor and Members of the Town Council of the Town of Moraga
Moraga, California
In planning and performing our audit of the basic financial statements of the Town of Moraga (Town), as of and for the year ended June 30, 2025, in accordance with auditing standards generally accepted in the United States of America, we considered the Town’s internal control over financial reporting (internal control) as a basis for designing our auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Town’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Town’s financial statements will not be prevented, or detected and corrected, on a timely basis.

Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error or fraud may occur and not be detected by such controls. 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 have not been identified.

Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we believe are opportunities for strengthening internal controls and operating efficiencies.

This communication is intended solely for the information and use of management, Town Council, others within the organization, and agencies and pass-through entities requiring compliance with Government Auditing Standards and is not intended to be and should not be used by anyone other than these specified parties.

Pleasant Hill, California
DATE
Attachment B
333
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334

TOWN OF MORAGA

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS

NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE The following comment represents new pronouncements taking affect in the next few years. We cite them here to keep you informed of developments:

EFFECTIVE FISCAL YEAR 2025/26:

GASB 103 – Financial Reporting Model Improvements
The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement also addresses certain application issues.

Management’s Discussion and Analysis - This Statement continues the requirement that the basic financial statements be preceded by management’s discussion and analysis (MD&A), which is presented as required supplementary information (RSI). MD&A provides an objective and easily readable analysis of the government’s financial activities based on currently known facts, decisions, or conditions and presents comparisons between the current year and the prior year. This Statement requires that the information presented in MD&A be limited to the related topics discussed in five sections: (1) Overview of the Financial Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset and Long-Term Financing Activity, and (5) Currently Known Facts, Decisions, or Conditions.

Furthermore, this Statement stresses that the detailed analyses should explain why balances and results of operations changed rather than simply presenting the amounts or percentages by which they changed.

This Statement emphasizes that the analysis provided in MD&A should avoid unnecessary duplication by not repeating explanations that may be relevant to multiple sections and that “boilerplate” discussions should be avoided by presenting only the most relevant information, focused on the primary government.

In addition, this Statement continues the requirement that information included in MD&A distinguish between that of the primary government and its discretely presented component units.

GASB 103 – Financial Reporting Model Improvements (Continued) Unusual or Infrequent Items - This Statement describes unusual or infrequent items as transactions and other events that are either unusual in nature or infrequent in occurrence. Furthermore, governments are required to display the inflows and outflows related to each unusual or infrequent item separately as the last presented flow(s) of resources prior to the net change in resource flows in the government-wide, governmental fund, and proprietary fund statements of resource flows.

Presentation of the Proprietary Fund Statement of Revenues, Expenses, and Changes in Fund Net Position - This Statement requires that the proprietary fund statement of revenues, expenses, and changes in fund net position continue to distinguish between operating and nonoperating revenues and expenses.

Operating revenues and expenses are defined as revenues and expenses other than nonoperating revenues and expenses. Nonoperating revenues and expenses are defined as (1) subsidies received and provided, (2) contributions to permanent and term endowments, (3) revenues and expenses related to financing, (4) resources from the disposal of capital assets and inventory, and (5) investment income and expenses.

Attachment B
335

TOWN OF MORAGA

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 103 – Financial Reporting Model Improvements (Continued) In addition to the subtotals currently required in a proprietary fund statement of revenues, expenses, and changes in fund net position, this Statement requires that a subtotal for operating income (loss) and noncapital subsidies be presented before reporting other nonoperating revenues and expenses. Subsidies are defined as (1) resources received from another party or fund (a) for which the proprietary fund does not provide goods and services to the other party or fund and (b) that directly or indirectly keep the proprietary fund’s current or future fees and charges lower than they would be otherwise, (2) resources provided to another party or fund (a) for which the other party or fund does not provide goods and services to the proprietary fund and (b) that are recoverable through the proprietary fund’s current or future pricing policies, and (3) all other transfers.

Major Component Unit Information - This Statement requires governments to present each major component unit separately in the reporting entity’s statement of net position and statement of activities if it does not reduce the readability of the statements. If the readability of those statements would be reduced, combining statements of major component units should be presented after the fund financial statements.

Budgetary Comparison Information - This Statement requires governments to present budgetary comparison information using a single method of communication—RSI. Governments also are required to present (1) variances between original and final budget amounts and (2) variances between final budget and actual amounts. An explanation of significant variances is required to be presented in notes to RSI.

How the Changes in This Statement Will Improve Financial Reporting The requirements for MD&A will improve the quality of the analysis of changes from the prior year, which will enhance the relevance of that information. They also will provide clarity regarding what information should be presented in MD&A.

The requirements for the separate presentation of unusual or infrequent items will provide clarity regarding which items should be reported separately from other inflows and outflows of resources.

The definitions of operating revenues and expenses and of nonoperating revenues and expenses will replace accounting policies that vary from government to government, thereby improving comparability.

The addition of a subtotal for operating income (loss) and noncapital subsidies will improve the relevance of information provided in the proprietary fund statement of revenues, expenses, and changes in fund net position.

The requirement for presentation of major component unit information will improve comparability.

The requirement that budgetary comparison information be presented as RSI will improve comparability, and the inclusion of the specified variances and the explanations of significant variances will provide more useful information for making decisions and assessing accountability.

Attachment B
336
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Attachment B
337

TOWN OF MORAGA

REQUIRED COMMUNICATIONS

FOR THE YEAR ENDED
JUNE 30, 2025
Attachment C
338

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Attachment C
339

TOWN OF MORAGA

REQUIRED COMMUNICATIONS
For the Year Ended June 30, 2025
Table of Contents
Page

Required Communications ................................................................................................................................. 1 Significant Audit Matters: .............................................................................................................................. 1 Qualitative Aspects of Accounting Practices ......................................................................................... 1 Difficulties Encountered in Performing the Audit ................................................................................. 2 Corrected and Uncorrected Misstatements ............................................................................................. 2 Disagreements with Management ........................................................................................................... 2 Management Representations ................................................................................................................... 2 Management Consultations with Other Independent Accountants ........................................................ 3 Other Audit Findings or Issues ................................................................................................................. 3 Other Matters .................................................................................................................................................. 3 Attachment C
340
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Attachment C
341

REQUIRED COMMUNICATIONS
To the Honorable Mayor and Members of the Town Council of the Town of Moraga
Moraga, California
We have audited the basic financial statements of the Town of Moraga, California, for the year ended June 30, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our engagement letter and communications dated June 4, 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
Accounting Policies - Management is responsible for the selection and use of appropriated accounting policies. The significant accounting policies used by the Town of Moraga 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 the year. The following pronouncements became effective, but did not have a material effect on the financial statements:

GASB 100 – Accounting for Changes and Error Corrections Unusual Transactions, Controversial or Emerging Areas – We noted no transactions entered into by the Town 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 – 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 significances 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 Town’s financial statements were:

Estimate Net Pension Liabilities (Assets) and Pension-Related Deferred Outflows and Inflows of Resource: Management’s estimate of the net pension liabilities (assets) and deferred outflows/inflows of resources are disclosed in Note 8 to the financial statements and are based on actuarial studies determined by a consultant, which are based on the experience of the Town. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Attachment C
342
Estimate of Depreciation: Management’s estimate of depreciation is based on useful lives determined by management. These lives have been determined by management based on the expected useful life of assets as disclosed in Note 1E. We evaluated the key factors and assumptions used to develop the depreciation estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Estimate of Compensated Absences: Accrued compensated absences which are comprised of accrued vacation, holiday, and certain other compensating time is estimated using accumulated unpaid leave hours and hourly pay rates in effect at the end of the fiscal year as disclosed in Note 1G to the financial statements. We evaluated the key factors and assumptions used to develop the accrued compensated absences and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Estimated Lease Receivable and Lease-Related Deferred Inflow of Resources: Management’s estimate of lease related receivables and deferred inflows of resources are based on the net present value of lease receipts, using an estimated incremental borrowing rate, and amortized over the life of the lease. The factors have been disclosed in Note 7 to the financial statements. We evaluated the key factors and assumptions used to develop the lease-related estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole.

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

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.

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

Professional standards require us to accumulate all known and likely uncorrected misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We have no such misstatements to report to the Town Council.

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

Management Representations
We have requested certain representations from management that are included in a management representation letter dated DATE.

Attachment C
343
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the Town's financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Town’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 required supplementary information that accompanies and 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 required supplementary information and do not express an opinion or provide any assurance on the required supplementary information.

We were engaged to report on the supplementary information which accompany the financial statements, but are not required supplementary information. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the Introductory and Statistical Sections which accompany the financial statements, but are not required supplementary information. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
******
This information is intended solely for the information and use of the Audit and Finance Committee, Town Council, and management and is not intended to be and should not be used by anyone other than these specified parties.

Pleasant Hill, California
DATE
Attachment C
344
INDEPENDENT ACCOUNTANT’S REPORT ON

APPLYING AGREED UPON PROCEDURES FOR
COMPLIANCE WITH THE PROPOSITION 111
2024-2025 APPROPRIATIONS LIMIT INCREMENT
Honorable Mayor and Members of the Town Council
Town of Moraga, California
We have performed the procedures enumerated below on the Appropriations Limit Worksheet (Worksheet) of the Town of Moraga, California, for the year ended June 30, 2025. The Town’s management is responsible for the Worksheet.

The Town has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of these procedures, which were suggested by the League of California Cities and presented in their Article XIIIB Appropriations Limitation Uniform Guidelines, were performed solely to assist you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

A. We obtained the Worksheet and determined that the 2024-2025 Appropriations Limit of $19,813,373 and annual adjustment factors were adopted by Resolution of the Town Council. We also determined that the population and inflation options were selected by a recorded vote of the Town Council.

B. We recomputed the 2024-2025 Appropriations Limit by multiplying the 2023-2024 Prior Year Appropriations Limit by the Total Growth Factor. We recomputed the Total Growth Factor by multiplying the population option by the inflation option.

C. For the Worksheet, we agreed the Per Capita Income Factor, Town Population Factor and County Population Factor to California State Department of Finance Worksheets.

We were engaged by the Town to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Worksheet.

Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the Town and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of management and the Town Council and is not intended to be and should not be used by anyone other than those specified parties; however, this restriction is not intended to limit the distribution of this report, which is a matter of public record.

Pleasant Hill, California
June 23, 2025
Attachment D
345
CONSENT CALENDAR: 6.8
To: Honorable Mayor and Councilmembers
From: Katie Bruner, Administrative Services Director
Subject: Updated Employee Salary Schedule (Effective January 1, 2026) Meeting Date: December 10, 2025

TOWN OF MORAGA STAFF REPORT

RECOMMENDATION
Adopt a Resolution approving the Employee Salary Schedule dated and effective January 1, 2026.

BACKGROUND
The Town maintains a master pay schedule, salary schedule, which includes the pay rates for all positions in the Town’s classification plan, including permanent and hourly and temporary employee classes. The salary schedule is revised and updated periodically based upon various Town Council actions and modifications of classes in the Town’s classification plan and posted for public review on the Town’s website. The Town’s most recent salary schedule was dated and effective June 29, 2025, pursuant to Resolution 45-2025.

DISCUSSION
The proposed salary schedule (Attachment B), which will be effective January 1, 2026, incorporates updates to the pay rates for hourly classifications, based on updates to the State’s minimum wage which will go into effect on January 1, 2026.

In 2016, California Senate Bill 3 was signed into law and raised the State minimum wage by set amounts annually. The minimum wage can be subsequently increased annually based on the Consumer Price Index (inflation) up to 3.5% per year. Effective on January 1, 2026, the hourly rate increase will be 2.49%, which will establish a minimum wage of $16.90 per hour.

To comply with the State’s minimum wage rate law, the Town needs to amend the salary schedule to adjust the hourly wage for classifications with pay rates that fall below $16.50 per 346
hour. This change impacts the Recreation Leader I (PT), Facilities Attendant (PT), and Intern (PT) classifications. Additionally, because of the increase in Recreation Leader I, the salary schedule for Recreation Leader II (PT) is adjusted to maintain the salary difference between the top step of the Recreation Leader I classification and the lowest step of the Recreation II classification.

FISCAL IMPACT
No direct fiscal impacts are associated with this action. The proposed salary range adjustments have been incorporated into the adopted Fiscal Year 2025-26 budget.

CEQA COMPLIANCE
Approval of the proposed Salary Schedule effective January 1, 2026 is not subject to review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.), because it constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment.

ALTERNATIVES

1. Adopt the proposed resolution with changes; or

2. Do not adopt the proposed resolution and provide direction to staff.

NEXT STEPS
If approved, the new minimum wages will go into effect on January 1, 2026.

ATTACHMENTS
Attachment A - DRAFT Salary Schedule Resolution - JAN 01 2026.docx Attachment B - Salary Schedule FY26 Eff 01.01.2026 Min Wage.pdf 347
Attachment A
Resolution No. XX-2025 1 December 10, 2025

TOWN OF MORAGA

TOWN COUNCIL
RESOLUTION NO. xx-2025

APPROVING THE SALARY SCHEDULE DATED AND EFFECTIVE AS OF JANUARY 1, 2026
WHEREAS, the salary schedule establishes the salary ranges and steps for each classification within the Town’s classification plan;
WHEREAS, the Town Council approves the salary schedule for Town of Moraga employees;
WHEREAS, the Salary Schedule is immediately accessible and available for public review and is posted on the Town of Moraga’s website;
WHEREAS, in 2016, California Senate Bill 3 (SB3) raised the State minimum wage and set future minimum wage increases based on annual changes in the Consurmer Price Index (CPI);
WHEREAS, the California Department of Finance calculated the increase in CPI from July 1, 2024 to June 30, 2025 as 2.49%, raising the State minimum wage to $16,90 per hour;
WHEREAS, the Town’s salaries for positions currently falling under the State minimum wage need to be adjusted to meet State minimum wage; WHEREAS, staff is recommending that the Town Council consider and approve the updated Salary Schedule data and effective as of January 1, 2026; and WHEREAS, adoption of the updated salary schedule does not require additional allocation of funds for Fiscal Year 2025-26.

NOW, THEREFORE, BE IT RESOLVED that the Town Council of the Town of Moraga does hereby approve the Town of Moraga Salary Schedule dated and effective as of January 1, 2026, included herein by reference.
348
Classification Employee
Group Step A Step B Step C Step D Step E
Hourly 46.12 48.43 50.86 53.40 56.06
Monthly 7,995 8,395 8,815 9,255 9,718
Annual 95,939 100,739 105,780 111,063 116,614
Hourly 35.98 37.78 39.66 41.65 43.73
Monthly 6,237 6,549 6,875 7,220 7,580
Annual 74,843 78,582 82,500 86,642 90,963
Hourly 31.15 32.71 34.35 36.06 37.87
Monthly 5,400 5,670 5,954 6,251 6,564
Annual 64,799 68,044 71,444 75,013 78,763
Hourly 23.17 24.32 25.54 26.82 28.16
Monthly 4,016 4,216 4,427 4,649 4,881
Annual 48,190 50,593 53,124 55,785 58,575
Hourly 87.71 92.09 96.69 101.53 106.61
Monthly 15,203 15,963 16,760 17,599 18,479
Annual 182,431 191,555 201,125 211,192 221,744
Hourly 40.35 42.37 44.49 46.71 49.04
Monthly 6,994 7,344 7,711 8,096 8,501
Annual 83,929 88,127 92,532 97,156 102,012
Hourly 50.96 53.51 56.19 58.99 61.95
Monthly 8,834 9,275 9,739 10,225 10,738
Annual 106,003 111,299 116,866 122,704 128,852
Hourly 43.37 45.54 47.82 50.21 52.72
Monthly 7,518 7,894 8,289 8,703 9,138
Annual 90,220 94,727 99,468 104,440 109,659
Hourly 55.24 58.00 60.91 63.95 67.15
Monthly 9,576 10,054 10,557 11,085 11,639
Annual 114,908 120,650 126,684 133,024 139,670
Hourly 49.69 52.18 54.78 57.52 60.40
Monthly 8,613 9,044 9,496 9,970 10,469
Annual 103,357 108,525 113,948 119,639 125,625
Hourly 33.27 34.93 36.67 38.51 40.44
Monthly 5,766 6,054 6,357 6,676 7,009
Annual 69,192 72,654 76,283 80,106 84,110
Hourly 43.69 45.88 48.17 50.58 53.11
Monthly 7,574 7,952 8,349 8,767 9,206
Annual 90,882 95,430 100,194 105,201 110,466
Hourly 41.56 43.64 45.82 48.11 50.52
Monthly 7,204 7,565 7,942 8,340 8,757
Annual 86,448 90,775 95,309 100,075 105,086
Hourly 31.01 32.56 34.19 35.90 37.69
Monthly 5,375 5,644 5,926 6,222 6,533
Annual 64,504 67,733 71,117 74,669 78,401

TOWN OF MORAGA
SALARY SCHEDULE EFFECTIVE January 1, 2026
Accountant (Confidential) MidMgmt/Prof
Administrative Assistant MEA
Assistant Engineer MEA
Assistant Planner MEA
Associate Engineer MidMgmt/Prof
Administrative Clerk MEA
Administrative Services Director
(Confidential) Dept Dir
Administrative Services
Technician MEA
Lead Maintenance Worker MEA
Maintenance Worker MEA
Associate Planner MidMgmt/Prof
Community Services Officer MEA
Engineering Technician/Inspector MEA
Accounting Technician
(Confidential) MEA
1 Attachment B
349
Classification Employee
Group Step A Step B Step C Step D Step E

TOWN OF MORAGA
SALARY SCHEDULE EFFECTIVE January 1, 2026
Hourly 79.38 83.35 87.52 91.89 96.49
Monthly 13,760 14,448 15,170 15,928 16,724
Annual 165,119 173,373 182,042 191,140 200,692
Hourly 85.61 89.89 94.39 99.11 104.06
Monthly 14,839 15,581 16,361 17,179 18,038
Annual 178,073 186,977 196,328 206,153 216,451
Hourly 105.46 110.73 116.27 122.09 128.19
Monthly 18,280 19,194 20,154 21,162 22,220
Annual 219,365 230,328 241,844 253,938 266,638
Hourly 55.05 57.80 60.69 63.73 66.91
Monthly 10,019 10,519 11,045 11,598 12,178
Annual 120,226 126,232 132,545 139,179 146,135
Hourly 57.79 60.68 63.71 66.91 70.25
Monthly 10,518 11,044 11,596 12,177 12,785
Annual 126,218 132,531 139,151 146,121 153,425
Hourly 56.86 59.70 62.69 65.82 69.12
Monthly 10,348 10,866 11,410 11,980 12,579
Annual 124,179 130,394 136,917 143,760 150,953
Hourly 82.71 86.84 91.19 95.74 100.53
Monthly 14,336 15,053 15,806 16,596 17,425
Annual 172,029 180,632 189,667 199,149 209,102
Hourly 51.88 54.47 57.19 60.05 63.06
Monthly 9,442 9,913 10,409 10,929 11,476
Annual 113,299 118,955 124,905 131,148 137,713
Hourly 54.47 57.18 60.04 63.05 66.20
Monthly 9,913 10,408 10,928 11,475 12,049
Annual 118,955 124,891 131,134 137,699 144,584
Hourly 53.58 56.26 59.07 62.03 65.13
Monthly 9,752 10,240 10,751 11,289 11,853
Annual 117,028 122,880 129,011 135,464 142,238
Hourly 59.66 62.64 65.77 69.06 72.51
Monthly 10,858 11,400 11,971 12,569 13,197
Annual 130,296 136,805 143,649 150,827 158,370
Hourly 62.63 65.76 69.05 72.50 76.13
Monthly 11,399 11,968 12,567 13,195 13,855
Annual 136,791 143,621 150,800 158,342 166,261
Hourly 61.45 64.52 67.75 71.14 74.69
Monthly 11,184 11,743 12,330 12,947 13,594
Annual 134,207 140,911 147,964 155,367 163,132
Hourly 31.84 33.44 35.11 36.86 38.70
Monthly 5,519 5,796 6,085 6,389 6,709
Annual 66,232 69,547 73,022 76,669 80,502
Parks & Recreation Director Dept Dir
Police Corporal, Advanced MPOA
Police Corporal, Intermediate MPOA
Police Lieutenant MidMgmt/Prof
Planning Director Dept Dir
Police Chief Dept Dir
Police Corporal MPOA
Police Patrol Officer MPOA
Police Patrol Officer, Advanced MPOA
Police Patrol Officer,
Intermediate MPOA
Police Sergeant MPOA
Police Sergeant, Advanced MPOA
Police Sergeant, Intermediate MPOA
Police Services Technician MEA
2 350
Classification Employee
Group Step A Step B Step C Step D Step E

TOWN OF MORAGA
SALARY SCHEDULE EFFECTIVE January 1, 2026
Hourly 65.54 68.82 72.27 75.87 79.67
Monthly 11,361 11,929 12,526 13,151 13,810
Annual 136,328 143,154 150,313 157,818 165,721
Hourly 90.60 95.12 99.88 104.88 110.12
Monthly 15,704 16,488 17,313 18,178 19,088
Annual 188,447 197,858 207,751 218,141 229,052
Hourly 52.28 54.89 57.63 60.51 63.54
Monthly 9,061 9,514 9,989 10,489 11,013
Annual 108,734 114,170 119,873 125,869 132,158
Hourly 35.99 37.79 39.67 41.65 43.74
Monthly 6,237 6,550 6,877 7,220 7,582
Annual 74,849 78,595 82,522 86,642 90,982
Hourly 58.56 61.49 64.56 67.79 71.18
Monthly 10,151 10,658 11,191 11,751 12,338
Annual 121,808 127,898 134,293 141,008 148,058
Hourly 44.08 46.28 48.60 51.03 53.58
Monthly 7,641 8,023 8,424 8,845 9,287
Annual 91,688 96,273 101,086 106,140 111,447
Hourly 55.35 58.12 61.02 64.08 67.28
Monthly 9,594 10,074 10,577 11,107 11,661
Annual 115,125 120,892 126,926 133,279 139,937
Hourly 39.57 41.56 43.64 45.82 48.11
Monthly 6,860 7,203 7,564 7,941 8,338
Annual 82,315 86,435 90,762 95,296 100,062
Hourly 66.94 70.29 73.81 77.50 81.37
Monthly 11,603 12,184 12,793 13,433 14,104
Annual 139,239 146,206 153,520 161,194 169,254
Hourly 50.60 53.13 55.79 58.58 61.50
Monthly 8,770 9,209 9,670 10,153 10,660
Annual 105,241 110,511 116,039 121,839 127,922
Hourly 35.90 37.70 39.59 41.56 43.64
Monthly 6,223 6,535 6,862 7,204 7,565
Annual 74,681 78,414 82,341 86,448 90,775
Hourly 54.20 56.91 59.75 62.74 65.88
Monthly 9,394 9,864 10,357 10,875 11,418
Annual 112,731 118,371 124,278 130,503 137,022
Hourly 54.20 56.91 59.75 62.74 65.88
Monthly 9,394 9,864 10,357 10,875 11,418
Annual 112,731 118,371 124,278 130,503 137,022
Hourly 43.24 45.41 47.68 50.06 52.57
Monthly 7,496 7,870 8,264 8,678 9,111
Annual 89,948 94,443 99,171 104,130 109,336
Public Works Director/Town
Engineer Dept Dir
Senior Planner/Econ Dev Coord MidMgmt/Prof
Support Services Coordinator MEA
Recreation Coordinator MEA
Recreation Supervisor MidMgmt/Prof
Principal Planner MidMgmt/Prof
Senior Engineer MidMgmt/Prof
Senior Construction Inspector MEA
Senior Maintenance Worker MEA
Senior Planner MidMgmt/Prof
PW/Parks Maint Supervisor MidMgmt/Prof
Senior Accountant (Confidential) MidMgmt/Prof
Senior Administrative Assistant MEA
Recreation Manager MidMgmt/Prof
3 351
Classification Employee
Group Step A Step B Step C Step D Step E

TOWN OF MORAGA
SALARY SCHEDULE EFFECTIVE January 1, 2026
Hourly 71.29 74.85 78.59 82.52 86.65
Monthly 12,356 12,974 13,622 14,304 15,019
Annual 148,275 155,687 163,469 171,651 180,232
Hourly - - - - 151.24
Monthly - - - - 26,215
Annual - - - - 314,579
Facilities Attendant (PT) Unrepresented Hourly 16.90 17.75 18.63 19.56 20.54 Intern (PT) Unrepresented Hourly 16.90 17.75 18.63 19.56 20.54 Maintenance Worker (PT) Unrepresented Hourly 31.01 32.56 34.19 35.90 37.69 Recreation Leader I (PT) Unrepresented Hourly 16.90 17.75 18.63 19.56 20.54 Recreation Leader II (PT) Unrepresented Hourly 21.46 22.53 23.66 24.84 26.08 Town Manager Contractual
Town Clerk/ Assistant to Town
Manager Dept Dir
4 352
DEPARTMENT REPORTS: 9B.

To: Honorable Mayor and Councilmembers
From: Amy Heavener, Town Clerk
Subject: Reorganization of the Town Council - Nomination and Election of Mayor and Vice Mayor
Meeting Date: December 10, 2025

TOWN OF MORAGA STAFF REPORT

RECOMMENDATION
Reorganize the Town Council and elect a Mayor and Vice Mayor for the ensuing twelve (12) month period.

BACKGROUND
The Town of Moraga Town Council Protocols, most recently amended on October 9, 2024, established the procedures for the Council election of the Mayor and Vice Mayor. The relevant section follows:

3. COUNCIL OFFICERS

3.1 Election of Council Officers
“The election or removal of the Mayor or Vice Mayor requires at least three affirmative votes of the five members of Town Council. A Councilmember may not succeed themself in the office of Mayor or Vice Mayor. Historically, the Town Council rotates the offices of Mayor and Vice Mayor on an annual basis to facilitate organizational stability. Annually, the outgoing Mayor is typically succeeded by the Vice Mayor, subject to ratification by at least three affirmative votes of the Town Council.

In years when members of the Town Council are to be elected, or appointed, to their seats during a general election time frame, Town Council shall attend to the election of a Mayor and Vice Mayor for one year terms at the first regular meeting after certification of the general election results, or effective appointment dates, have been received by the Town, and only after newly elected or appointed Town Councilmembers have been installed. In years when no members of the Town Council are elected or appointed, Town Council shall consider the election of Mayor and Vice Mayor for one-year terms at the first regular meeting in December.

An election of a Councilmember to fill a vacancy as Mayor or Vice Mayor occurring mid-term shall be for the remaining portion of the one-year term for that office.

All Councilmembers may vote for Mayor and Vice Mayor, and may consider seniority, 353
experience, leadership, willingness to collaborate, efficiency, the number of votes received when elected, or any other relevant and legal factor.

A Councilmember who does not wish to accept the position of Mayor or Vice Mayor may decline the position and Town Council will conduct nominations for the position among the other remaining Councilmembers.”

DISCUSSION
To assist Town Council, the following outlines the Town’s past practice for nominating and selecting presiding officers, which is consistent with Robert’s Rules of Order for nominating and selecting presiding officers:

1. The nomination/election of the next Mayor is conducted by the current presiding Mayor or Vice Mayor.

In this case, this would be done by the current Mayor, Steve Woehleke.

2. Once the next Mayor has been elected by Town Council, the new Mayor will then preside over and conduct the remainder of the business items on the agenda, including the election of Vice Mayor.

3. The method of nomination is an open nomination solely by and from within the membership of the seated Town Council. Nominations cannot be accepted from members of the public.

4. No “second” is required for a nomination, although sometimes one or more Councilmembers may “second” a nomination to indicate endorsement.

5. When it appears no one else wishes to make a nomination, the presiding Mayor of the meeting asks one final time if there are additional nominations. If there is no response, the presiding officer then declares that “the nomination for (Mayor, Vice Mayor, as applicable) is closed.”

6. It is unnecessary to have a motion to officially close the nominations. Yet, if such a motion is made, that motion requires at least three affirmative votes. After nominations are closed, a majority vote is required to re-open them.

7. Nominees are voted on in the order in which they are nominated. As soon as one of the nominees receives a majority vote (three or more votes), the presiding officer then declares that person elected to that respective office, and no vote is taken on the remaining nominee(s).

Staff recommends that Town Council proceed with the nominations and election for the position of Mayor first and then take a brief five minute recess to reorganize to allow the new Mayor to conduct the nomination and election of Vice Mayor. The new Mayor and Vice Mayor shall serve in those positions for the next 12 months.

FISCAL IMPACT
There is no direct fiscal impact to re-organizing and selecting the positions of Mayor and Vice Mayor.
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CEQA COMPLIANCE
The selection of Town Council Officers is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment.

ALTERNATIVES
There are no alternatives as a Mayor and Vice Mayor must be appointed during the last meeting of 2025.

NEXT STEPS
Upon the election of Mayor and Vice Mayor, the reorganization of Town Council will be completed, and the new Council term will go into effect right away.

ATTACHMENTS
Attachment A - OCT 09 2024 - Council Protocols
Attachment B - 53-2024 Revise Town Council Protocols 3.1 355
1 TOWN OF MORAGA

TOWN COUNCIL PROTOCOLS
Adopted Effective October 23, 2019 (Resolution 72-2019) Amended Effective July 8, 2020 (Resolution 42-2020)
Amended Effective March 10, 2021 (Resolution 13-2021)
Amended Effective August 25, 2021 (Resolution 43-2021)
Amended Effective September 27, 2023 (Resolution 62-2023) Amended Effective June 26, 2024 (Resolution 39-2024)
Amended Effective October 9, 2024 (Resolution 53-2024)

TABLE OF CONTENTS

1. AUTHORITY 1

2. ROLE OF TOWN COUNCIL 1

2.1 Responsibilities............................................................................................ 1

2.2 Considerations............................................................................................. 2

2.3 Fiscal/Negotiating Authority ......................................................................... 3

2.4 Civility ........................................................................................................ 3

2.5 Maintaining and Enhancing Functionality..................................................... 3

3. COUNCIL OFFICERS 3

3.1 Election of Council Officers.......................................................................... 3

3.2 Role of Mayor and Vice Mayor..................................................................... 4

4. COUNCIL APPOINTMENTS 4

4.1 Town Manager and Town Attorney.............................................................. 4

4.2 Councilmember Appointments..................................................................... 5

4.3 Ad Hoc Committees..................................................................................... 5

5. MEETINGS 5

5.1 Meeting Dates and Times ......................................................................... 6

5.1.1 Dates .................................................................................................... 6

5.1.2 Starting Time and Location................................................................... 6 Attachment A
356
2 5.1.3 Ending Time..........................................................................................6

5.2 Closed Session Meetings ............................................................................6

5.3 Special Meetings .........................................................................................6

5.4 Quorum........................................................................................................7

5.5 Teleconferencing .........................................................................................7

5.6 Adjournment ................................................................................................7

5.7 Minutes of Proceedings ...............................................................................7

5.8 Attendance...................................................................................................7

5.8.1 Councilmembers...................................................................................7

5.8.2 Town Manager......................................................................................8

5.8.3 Town Attorney.......................................................................................8

5.8.4 Town Clerk............................................................................................8

5.8.5 Department Heads and Employees ......................................................8

5.9 Recording of Meetings.................................................................................8

5.10 Brown Act Compliance...............................................................................8

6. MEETING AGENDA 9

6.1 Order of Business ........................................................................................9

6.1.1 Call to Order/Roll Call ...........................................................................9

6.1.2 Pledge of Allegiance .............................................................................9

6.1.3 Presentations........................................................................................9

6.1.4 Public Communication ..........................................................................9

6.1.5 Adoption of Meeting Agenda.................................................................9

6.1.6 Consent Calendar:................................................................................9

6.1.7 Councilmember and Staff Announcements, Reports on Activities or Special Announcements........................................................................................... 10

6.1.8 Public Hearing Items........................................................................... 10

6.1.9 Department Reports ........................................................................... 10 357
3 6.1.10 Council Requests for Future Agenda Items ...................................... 10

6.1.11 Communications ............................................................................... 11

6.1.12 Town Manager Follow Up and Announcements ............................... 11

6.1.13 Adjournment ..................................................................................... 11

6.1.14 Closed Session (if applicable)........................................................... 11

6.2 Agenda Preparation................................................................................... 12

6.3 Agenda Materials....................................................................................... 12

6.4 Agenda Posting ......................................................................................... 13

7. PUBLIC PARTICIPATION 13

7.1 Safety and Order ....................................................................................... 13

7.2 Addressing Town Council .......................................................................... 14

7.2.1 Public Comments................................................................................ 14

7.2.2 Councilmember Questions.................................................................. 14

7.2.3 Speaking Time Limits ......................................................................... 14

7.3 Speakers’ Conduct .................................................................................... 14

7.4 Written Communication.............................................................................. 15

8. PUBLIC HEARINGS 15

8.1 Ex Parte Communication ........................................................................... 15

8.2 Procedures ................................................................................................ 15

8.2.1 Item Announced by Presiding Officer ................................................. 15

8.2.2 Presiding Officer Reviews Order of Procedure ................................... 15

8.2.3 Staff Summarizes Issue...................................................................... 15

8.2.4 Councilmembers Ask Questions of Staff ............................................ 15

8.2.5 Presiding Officer Opens the Public Hearing........................................ 15

8.2.6 Presiding Officer Closes Public Hearing ............................................. 16

8.2.7 Council Deliberates............................................................................. 16 358
4 8.2.8 Council Action..................................................................................... 16

8.3 Absence During Public Hearing................................................................. 16

9. MEETING RULES OF CONDUCT 16

9.1 Presiding Officer ........................................................................................ 16

9.2 Actions Limited to Posted Agenda ............................................................. 17

9.3 Continuance of an Item.............................................................................. 17

9.4 Standards of Decorum............................................................................... 17

9.4.1 Town Council...................................................................................... 17

9.4.2 Use of Electronic Devices................................................................... 17

9.4.3 Staff Members .................................................................................... 17

9.5 Debate ...................................................................................................... 18

9.5.1 Right to the Floor ................................................................................ 18

9.5.2 Interruptions........................................................................................ 18

9.5.3 Points of Order.................................................................................... 18

9.5.4 Result of a Vote .................................................................................. 18

9.5.5 Appeals............................................................................................... 18

9.5.6 Precedence of Motions ....................................................................... 18

9.5.7 Motions Not Subject to Debate ........................................................... 19

9.5.8 Reconsideration.................................................................................. 20

9.5.9 Conflict of Interest and Bias................................................................ 20

9.5.10 Protests............................................................................................. 20

9.5.11 Voting................................................................................................ 20

9.5.12 Division of the Question.................................................................... 21

10. ADMINISTRATIVE MATTERS 21

10.1 Correspondence ...................................................................................... 21

10.1.1 Electronic Correspondence............................................................... 21 359
5 10.1.2 Other Correspondence ..................................................................... 21

10.2 Communication with the Public................................................................ 21

10.3 Relations with Staff .................................................................................. 22

11. FAILURE TO OBSERVE PROTOCOLS 22

12. AMENDMENT OR SUSPENSION OF THESE PROTOCOLS 22

12.1 Amendment of Protocols.......................................................................... 22

12.2 Suspension of Protocols .......................................................................... 23 360
1 1. AUTHORITY
As the Town of Moraga’s governing body, the Town Council established these protocols to provide for continuity of responsibility in its decision-making process, and to allow sufficient time and opportunity for full consideration and discussion of important public policy issues and matters that fall within the Town Council’s jurisdiction. Adopting protocols which establish procedural rules for matters such as the election of the Town Council officers (Mayor and Vice Mayor) and the manner of conducting the Town Council meetings helps to facilitate these goals. The following provisions shall be in effect upon adoption by the Town Council and until such time as they are amended, or new provisions are adopted in the manner provided by these protocols.

2. ROLE OF TOWN COUNCIL
The Town Council serves as the elected governing body for the Town. In performing its duties, the Town Council represents all Moraga residents, local businesses, and interested parties.

In executing its duties, the Town Council shall take into account, among other considerations, needs and desires of the community, financial, legal, health, environment, and safety impacts. The Town Council will welcome new ideas and innovative approaches, as appropriate, and aim to provide a high level of communication and transparency in its activities and decision making. Furthermore, the Councilmembers will strive to treat each other, staff, and other parties with dignity and respect.

2.1 Responsibilities
The Town Council responsibilities include the following:
• Faithfully comply with applicable state laws, the Moraga Municipal Code, and Moraga General Plan, and make revisions to the Municipal Code and General Plan as needed;
• Perform due diligence prior to making decisions, including as identified in Section 2.2;
• Develop and approve policies, make decisions, and guide the Town Manager in their management of the Town organization, taking into consideration the promotion of efficiency and effectiveness in operations while maintaining sustainable service levels;
• Develop and approve the organization’s annual goals; monitor progress of such goals during the year; and, receive an annual report from the Town Manager on the outcomes of the goals;
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2 • Recruit, hire, and provide an annual performance review of the Town Manager, as set forth in Section 4.1;
• Recruit, hire, and provide an annual performance review of the Town Attorney, as set forth in Section 4.1;
• Review, revise, and approve ordinances, resolutions, planning decisions, meeting minutes, and related documents;
• Review, revise, and approve the biennial operating and capital improvement program budget, as prepared by the Town Manager, and conduct mid-year budget reviews as submitted by the Town Manager;
• Communicate with residents to receive input from, and provide information to, residents;
• Represent the Town on local, county, regional, state, and national boards and committees; and,
• Represent the Town at public functions.

2.2 Considerations
The Town Council may consider any matter it deems relevant, material, and/or helpful in performing its duties. Examples include:
• Perspectives of each Councilmember;
• Substantive materials related to the question, especially reports presented by staff;
• Consistency with the Municipal Code, General Plan, and applicable laws; • Input provided by applicants, residents, staff, and other parties on each question;
• Availability of Town funds, if needed, and impact on Town’s financial health; • Availability of required Town resources, especially personnel; • Consistency with Town Council’s annual goals; and,
• Town’s risk tolerance and potential impact of safety, environmental, commercial, and operational risks.
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3 2.3 Fiscal/Negotiating Authority
The Town Council as a whole, in a duly noticed meeting, may provide direction to staff regarding the budget, authorize expenditures, and approve agreements and contracts.

However, no individual Councilmember, subcommittee, or Ad Hoc committee shall have authority to do the following on behalf of the Town, unless expressly granted that authority by the Town Council: (i) expend (or authorize the expenditure of) funds; or, (ii) negotiate or approve the drafting or execution of agreements, contracts, memorandums of understanding, and/or related documents.

2.4 Civility
The Councilmembers will strive to conduct themselves in an appropriate professional manner when dealing with each other, staff, and all parties. Except as otherwise set forth in these protocols, the Town Council meetings will be governed by Robert’s Rules of Order for the purpose of maintaining proper decorum and order.

To the extent feasible, the Councilmembers are encouraged to ask staff questions before a meeting and/or communicate with staff in advance as to what questions will be asked during the public meeting. (See also Section 10.3, Relations with Staff.)

2.5 Maintaining and Enhancing Functionality
Part of the role of the Town Council is to ensure that organizational functionality (as described by above Sections 2.1–2.4) is maintained and enhanced for the benefit of the Town. The Town Council is encouraged to hold periodic meetings that are focused on the functioning, productivity, and efficiency of the Town Council as a whole.

3. COUNCIL OFFICERS

3.1 Election of Council Officers
The election or removal of the Mayor or Vice Mayor requires at least three affirmative votes of the five members of Town Council. A Councilmember may not succeed themself in the office of Mayor or Vice Mayor. Historically, the Town Council rotates the offices of Mayor and Vice Mayor on an annual basis to facilitate organizational stability. Annually, the outgoing Mayor is typically succeeded by the Vice Mayor, subject to ratification by at least three affirmative votes of the Town Council.

In years when members of the Town Council are to be elected, or appointed, to their seats during a general election time frame, Town Council shall attend to the election of a Mayor and Vice Mayor for one year terms at the first regular meeting after certification of the general election results, or effective appointment dates, have been received by the Town, and only after newly elected or appointed Town Councilmembers have been installed. In years when no members of the Town Council are elected or appointed, Town Council shall consider the election of Mayor and Vice Mayor for one-year terms at the first regular meeting in December. An election of a Councilmember to fill a vacancy as Mayor or Vice Mayor occurring mid-term shall be for the remaining portion of the one-year term for that office. 363
4 All Councilmembers may vote for Mayor and Vice Mayor, and may consider seniority, experience, leadership, willingness to collaborate, efficiency, the number of votes received when elected, or any other relevant and legal factor.

A Councilmember who does not wish to accept the position of Mayor or Vice Mayor may decline the position and Town Council will conduct nominations for the position among the other remaining Councilmembers.

3.2 Role of Mayor and Vice Mayor
The Mayor shall be recognized as the official head of the Town Council, including representing the Town at all official and ceremonial events. The Mayor presides over Town Council meetings, and shall strive to ensure that there is sufficiently broad and in-depth communication on meeting agenda items. The Mayor shall sign all ordinances, resolutions, meeting minutes, and other documents adopted by the Town Council when the Mayor is presiding. The Vice Mayor shall serve all functions of the Mayor when the Mayor is unable or unavailable to fulfill those functions.

The Mayor and Vice Mayor will be provided annual media relations training to be able to effectively represent the Town during applicable emergencies and events which will require media interaction, noting that the Town Manager will continue to serve as the primary Town official for traditional and routine media relations and public communication purposes.

4. COUNCIL APPOINTMENTS

4.1 Town Manager and Town Attorney
The Town Council shall appoint the Town Manager in accordance with Municipal Code Section 2.08.010 and approve the employment contract and any amendments. The Town Council shall evaluate the Town Manager’s performance annually, and in compliance with the Town Manager’s employment agreement. The Town Council and the Town Manager will agree on performance expectations which will form the primary basis for measuring performance-related successes and opportunities at completion of each year of service.

The Town Manager’s responsibilities are set forth in Municipal Code Section 2.08.070 and/or determined by the Town Council. Examples include: (i) managing the organization’s day-to-day activities; (ii) developing and proposing the biennial budget; (iii) executing Town Council direction, goals, and priorities; (iv) serving as the principal spokesperson for the Town with the media and public; (v) managing and directing Town staff; and, (vi) managing other duties as assigned by the Town Council during duly noticed meetings.

The Town Manager will continue to manage routine media releases. However, the Town Manager will seek review of emergency and more substantial media releases by the Mayor or their designee before media releases are made public. 364
5 The Town Council shall appoint and approve the contract for the Town Attorney services, and any amendments, and shall review the Town Attorney’s performance on an annual basis. Councilmembers may interface directly with the Town Attorney, as needed.

4.2 Councilmember Appointments
As soon as practicable following the annual reorganization meeting, the Mayor shall announce their nominations of Councilmembers to serve in various roles requiring a Town Council representative. These nominations are subject to the review and approval by the Town Council as a whole.

The Town Council may, by a majority vote: (i) expand the number of bodies to which it appoints Town representatives to additional regional boards and commissions; and (ii) create additional commissions, committees, and other groups to advise the Town Council. In such cases, at least three (3) affirmative votes of the Town Council are required to appoint each representative to a regional board or commission, and/or appoint each member to a new subordinate advisory body.

4.3 Ad Hoc Committees
From time to time, the Town Council may create Ad Hoc committees. These committees are temporary in nature, generally lasting up to 18 months or less and are established to address a specific issue and bring a recommendation to the Town Council as a whole. Ad Hoc committees generally dissolve once the assigned project/task has been completed. Membership of an Ad Hoc committee is at the discretion of the Town Council and must contain fewer than a quorum of Councilmembers.

The Town Council shall provide direction at the time of creation of an Ad Hoc committee to identify the committee’s composition, scope of authority, duties, expected output, report-back schedule, term, staff liaison, and budget (if any).

Councilmembers may also discuss methods for an Ad Hoc committee to report back to the Town Council on their progress. No Ad Hoc committee shall operate outside the original scope of authority granted, except upon a formal vote of approval by the Town Council during a duly noticed meeting.

5. MEETINGS
The Town Council is subject to compliance with the State of California Ralph M. Brown Act Open Meetings Law (“Brown Act”) [Government Code Section 54950 et seq]. All meetings of the Town Council are open to the public, except for closed session meetings, which are authorized by the Brown Act to be held in private. 365
6 5.1 Meeting Dates and Times

5.1.1 Dates
Regular meetings will be held on the 2nd and 4th Wednesday of each month (unless canceled by majority vote of the Town Council or due to a lack of items for consideration or a quorum) or as set by calendar adopted by the Town Council in January of each calendar year. Adjourned regular, workshop, or special meetings may be called by the Mayor or by a majority of the Town Council. If the meeting date should fall on a legal holiday, the Town Council may cancel the meeting or reschedule for an alternate date and time designated by the Town Council. All meetings of the Town Council (except closed session meetings) shall be open to the public.

5.1.2 Starting Time and Location
All regular Town Council meetings shall begin at 5:30 p.m. Meetings will be held at the Council Chambers located at 335 Rheem Boulevard, Moraga, California 94556, unless stated otherwise in the meeting notice. Meetings may be preceded or followed by special meetings, including closed session meetings.

5.1.3 Ending Time
Unless otherwise adjourned, all Town Council meetings shall automatically be adjourned at 9:30 PM, except that a majority vote of the Town Council may extend the adjournment to 10:00 PM. Adjournment of the meeting may be further postponed after 10:00 PM after receiving unanimous consent of the Town Council to adjourn not later than a specified time. More than one such unanimous postponement of adjournment may be adopted.

5.2 Closed Session Meetings
A closed session meeting may be held before, during, or after any regular or special meeting for any purpose authorized by the Brown Act. Following the closed session meeting, the presiding officer shall report any actions taken in closed session that are subject to public disclosure under the Brown Act, and based on guidance provided by the Town Attorney, before moving on to the rest of the regular or special meeting agenda (if any). A closed session meeting, when held, will appear on the agenda as such, and will conform to the Brown Act. It is a violation of the Brown Act to disclose information obtained or presented in anticipation of or during a closed session meeting. All information provided and discussed in closed session shall be confidential. Public comment shall be received in open session prior to a closed session meeting.

5.3 Special Meetings
Special meetings may be called by the Mayor, a majority of Councilmembers, Town Attorney, or Town Manager. The call for a special meeting must specify the day, hour, location, and subject(s) to be considered. Twenty-four hours’ notice must be given prior to holding a special meeting. The agenda must be made available to members 366
7 of the public consistent with the requirements of the Brown Act. Only matters specified in the meeting notice may be discussed at special meetings. The public shall be given an opportunity to address the Town Council before or during consideration of any matter described in the notice for the special meeting.

5.4 Quorum
A quorum must exist in order for the Town Council to conduct business. Three (3) members of the Town Council shall constitute a quorum. In the event a quorum is not achieved within 30 minutes after the time noticed for commencement of the meeting, no meeting shall be held on the noticed date, and the noticed meeting will adjourn to the next regular meeting or to a later set date, time, and location, if so declared by the Town Clerk.

5.5 Teleconferencing
Teleconferencing during the Town Council meetings shall be permitted in accordance with the procedures set out in State Government Code Section 54953, as amended.

5.6 Adjournment
The Town Council may adjourn any regular, adjourned regular, special or adjourned special meeting to a time and place specified in the order of adjournment. If all Councilmembers are absent from any regular or adjourned regular meeting, the Town lerk may declare the meeting adjourned to a stated date, time, and place. The Town Clerk shall post a copy of the order or notice of adjournment at the Town offices and other places designated by the Town Council, as required by law. Whenever a regular or adjourned regular meeting is adjourned, as provided in this section, the resulting adjourned meeting will be considered a regular meeting. When an “Order of Adjournment” of any meeting fails to state the hour at which the adjourned meeting shall be held, it shall be held at the hour specified for regular meetings.

5.7 Minutes of Proceedings
An account of all public proceedings of the Town Council shall be recorded by the Town Clerk and entered into Town records as official meeting minutes following approval by the Town Council, and shall thereafter be kept, published, and/or distributed in compliance with applicable Town policy.

5.8 Attendance

5.8.1 Councilmembers
Councilmembers are encouraged to inform the Town Clerk, Town Manager, and/or Mayor when they are unable to attend an upcoming meeting. The presiding officer shall announce absences and reasons for such absences (if publicly known) during the roll call at the beginning of a meeting.
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8 5.8.2 Town Manager
The Town Manager shall attend all Town Council meetings, unless excused. The Town Manager’s designee shall substitute for the Town Manager during a Town Council meeting for which the Town Manager is absent.

5.8.3 Town Attorney
The Town Attorney, or Assistant Town Attorney, shall attend all Town Council meetings, unless excused. The Town Attorney or Assistant Town Attorney, whichever is present, shall act as the Town Council parliamentarian.

5.8.4 Town Clerk
The Town Clerk shall attend all regular Town Council meetings, unless excused.

The Town Clerk’s designee shall substitute for the Town Clerk during a Town Council meeting for which the Town Clerk is absent. The Town Clerk (or his/her designee, as appropriate) shall record, prepare, and maintain the official record of each Town Council meeting, and perform other related duties as prescribed by the Town Council or directed by the Town Manager, or both.

5.8.5 Department Heads and Employees
Department heads and employees shall attend Town Council meetings, as directed by the Town Manager.

5.9 Recording of Meetings
All regular meetings of the Town Council shall, to the extent feasible, be recorded by an electronic recording device and streamed live during the course of the meeting.

The recording shall be coordinated by the Town Clerk and retained in accordance with the Town’s records retention schedule. The Town Clerk shall post electronic recordings of meetings, as available, on the Town’s website.

The use of other recording, videotaping, or other electronic equipment/devices by members of the audience is permitted from the back row of the Council Chamber or side aisles, as designated by Town staff, in a manner so as not to block emergency exit paths, obstruct the view of the audience, create consistent noise, or illumination that would constitute a persistent disruption of the proceedings. The Town Council may further restrict or prohibit the recording of proceedings upon a finding by the Town Council that the recording cannot continue without noise, illumination, or obstruction of view that constitutes a persistent disruption of the proceedings.

5.10 Brown Act Compliance
Councilmembers, and staff, shall comply with the requirements of the Brown Act, including those in California State Government Code Section 54952.2, to avoid potential violations relating to attendance at meetings such as conferences; meetings conducted by the Town staff/consultants; meetings presented by organizations other than the Town; and meetings of other legislative bodies. 368
9 6. MEETING AGENDA

6.1 Order of Business
The business for a regular meeting shall generally be shown on the agenda in the following order:

6.1.1 Call to Order/Roll Call

6.1.2 Pledge of Allegiance

6.1.3 Presentations

6.1.4 Public Communication
This item is intended to permit the public an opportunity to share their views on items not on the meeting agenda and to advise the Town Council of items of interest in the community. The Town Council will listen to comments from the audience on items that are not listed on the meeting agenda. However, the Town Council cannot discuss details or vote on non-agendized items. Any concerns may be referred to staff or placed on a future agenda (as set forth in Section in 6.1.12).

6.1.5 Adoption of Meeting Agenda
The Town Council, by majority vote, shall adopt the meeting agenda as final before proceeding to the consideration of the first matter. Following adoption, agenda items may not be added or removed, or their order changed unless by consent of three (3) or more Councilmembers present at the time the agenda was adopted.

An agenda item not considered or completed for lack of time shall become an agenda item at the following meeting, unless the item is expressly continued to another time.

6.1.6 Consent Calendar:

6.1.6a Consideration of Consent Item Removed for Discussion Any member of the Town Council may remove a Consent Agenda item for consideration and discussion by the Town Council. The removed item shall be placed on the regular meeting agenda and recorded in the minutes under “Consideration of Consent Items Removed for Discussion.”

6.1.6b Acceptance of Consent Items
The Town Council may adopt a “Consent Agenda” as part of the regular meeting agenda. A Consent Agenda may consist of items of a noncontroversial and routine nature submitted by the Town Manager. The Town Manager shall propose specific action on each Consent Agenda item and such recommendation will become the action of the Town Council upon adoption. Consent Agenda items are adopted in total and under one (1) motion by the Town Council and are not subject to 369
10 individual debate and discussion. Items typically placed on the Consent Agenda include, but are not limited to, the following:

Receive Warrants & Accounts Payable
The Town Manager may submit routine expenditures made by the Town during a specified period for Town Council review and approval. The Accounts Payable Claims Report will reflect all checks/electronic payments issued for regular payment. A request to receive and file the financial demands (warrants) of the Town Council are considered routine in nature and will be placed early on the Consent Agenda.

Approval of Minutes
The Town Council review and approval of previous Town Council meeting minutes will be placed next on the Consent Agenda. Once previous minutes are approved, they will stand as the official written record of the Town Council's actions.

6.1.7 Councilmember and Staff Announcements, Reports on Activities or Special Announcements
Councilmembers and the Town Manager shall use this section of the meeting agenda to provide brief verbal reports on activities undertaken in their official capacities since the last scheduled Town Council Meeting (e.g., attendance as a Town representative at committee or community meetings), and other items of significant interest to the Moraga community as a whole. Council member AB1234 Reports.

6.1.8 Public Hearing Items
This section of the agenda is for official public hearings required by law or for subjects that are in the public interest. See Section 8 for information about conducting a public hearing.

6.1.9 Department Reports
Ordinances, resolutions, and “Requests for Action” subject to Town Council approval will usually be placed in this section of the meeting agenda. Occasionally, resolutions and the first reading of ordinances will be placed under public hearings.

When this is the case, the Town Council will consider these matters where appropriate.

6.1.10 Council Requests for Future Agenda Items
When an individual Councilmember desires to place an item on a future Town Council meeting agenda, they are encouraged to start by working with the Town Manager to see if it is possible to add the item to an upcoming agenda. The Town Manager will determine if the item should be placed on the agenda. If the Town Manager determines not to place the item on the agenda, the Councilmember may bring the item forward during the “Council Requests for Future Agenda Items” 370
11 portion of the meeting agenda for a determination by a majority vote by the Town Council.

Per CA Government Code Section 54954.2(a)(3), no discussion of the subject or merits of the proposed future agenda item may occur in connection with the motion, except to explain the general nature of the item. A successful motion (proposed, seconded and passed by a majority vote of the Council) shall be placed on a future agenda. If a motion passes to place the matter on a future agenda, the Town Council will then provide direction to staff to do one of the following:
1) Place the matter as a "Discussion Item" at a future meeting (thus allowing the Town Council to discuss whether the issue warrants further exploration with staff resources);
2) Place the matter as an agenda item at a future meeting with limited staff report and resources; or
3) Place the matter as an agenda item at a future meeting with full staff report and resources.

If a successful motion is silent regarding timing, the proposed item will be placed on a future meeting agenda at the earliest appropriate time, as determined by the Town Manager, working in consultation with the Mayor. If a motion provides specific direction regarding timing or any other parameter for the item, the proposed item will be placed on a future meeting agenda consistent with that direction, to the extent feasible (as determined by the Town Manager, working in consultation with the Mayor).

6.1.11 Communications
Communication submitted at least 24 hours in advance of a Town Council meeting will be considered by the Town Council, unless considered as part of a noticed agenda item earlier.

6.1.12 Town Manager Follow Up and Announcements
Town Manager follow-up announcements.

6.1.13 Adjournment
The Town Council meeting agenda shall note the next regular meeting date and specify if it is other than a regular meeting.

6.1.14 Closed Session (if applicable)
Town Council may move into closed session pursuant to applicable law, including the Brown Act (GC Section 54960, et seq.) for the purposes of conferring with the Town’s Real Property negotiator; and/or conferring with the Town Attorney on potential and/or existing litigation; and/or discussing matters covered under GC Section 54957 (Personnel); and/or conferring with the City’s Labor Negotiators. 371
12 6.2 Agenda Preparation
The Town Manager and Town Clerk, working with the Mayor, shall prepare the Town Council meeting agenda, sequence of agenda items, and other procedural matters.

Except as set forth in Section 6.1.4, this provision does not empower a Mayor to add an item to the agenda without complying with the process described in Section 6.1.12.

6.3 Agenda Materials
A staff report shall be prepared for each Town Council meeting agenda item, except in unusual circumstances authorized by the Town Manager or directed by the Town Council. Attached to the staff report shall be necessary supporting documents received by or developed by staff that are pertinent to the subject matter. Members of the public and other interested parties (e.g., applicants/developers) may submit documents related to an agenda item to the Town Clerk and shall be included in the meeting agenda materials, if received in time for inclusion in the agenda packet.

Councilmembers shall refrain from attempting to submit documents (or have their spouse or children submit documents at the request of a Councilmember) to the Town Clerk or Town Manager for inclusion in the agenda packet. Rather, they may bring printed copies of such materials to the meeting for distribution during the discussion period for the relevant agenda item.

To facilitate the efficient progression of the Town Council through the meeting agenda, and to maintain a clear distinction between the staff presentation and recommendation versus individual Councilmember opinions, during the staff presentation, Councilmembers shall not be permitted to use the Town’s technological infrastructure to broadcast printed materials on a display screen to the Town Council or public, except for responding during the discussion period for an agendized item. This prohibition also precludes Councilmembers from drafting and/or submitting communication regarding an agendized item to the Town Clerk or Town Manager for inclusion in the agenda packet for a meeting at which the Councilmember will be absent.

Correspondence pertaining to an agenda item received after the agenda packet has been distributed, but two hours prior to meeting time on a Town Council meeting day, will be copied and presented to the Town Council and the public at the meeting, to the extent possible.

Councilmembers shall refrain from circulating or causing to be circulated to more than one (1) other Councilmember, any written or recorded information relating to any agendized item before that item is publicly heard at a Town Council meeting, though such information may be distributed during the discussion period for such item. The only exception to this rule is for communication received by a Councilmember from residents not serving on the Town Council, which may be forwarded to the Town Clerk (without editorialization) for circulation to the rest of Town Council. 372
13 Copies of materials distributed by staff and others at the meeting shall be made available to members of the public as soon as possible. Changes and additions to staff reports and correspondence received will be provided to Councilmembers before the meeting and made available to the public at the meeting, when possible.

6.4 Agenda Posting
The Town Clerk shall post the Town Council meeting agenda, and supporting agenda materials, at least 72 hours before a regular meeting, and at least 24 hours before a special meeting via the following locations, which are freely accessible to members of the public: Moraga Town Offices, Moraga Library, Commons Park, and Hacienda de las Flores. The agenda will also be posted on the Town’s website. At the meeting, a copy of the agenda will be available for public review.

The agenda packet will be delivered, no later than the Friday preceding each regular meeting, to the Mayor and Councilmembers, and made available to the public consistent with the requirements of the Brown Act. The agenda shall specify the time and location of the meeting and contain a brief general description of each item of business to be transacted or discussed at the meeting, including items to be discussed in closed session.

7. PUBLIC PARTICIPATION

7.1 Safety and Order
When the Town Council is in session, all persons present must preserve safety and order, and should strive to conform their conduct civilly. Members of the public should sit in the audience seating area, unless addressing the Town Council or entering or leaving the Council Chamber, should not block the aisles with personal belongings, and should silence audible equipment (including all electronic devices). Members of the public may not, except when testifying on or participating in an agenda item, enter the open area directly in front of the dais or speak from the audience.

The audience should refrain from conduct which is disruptive to the meeting, including:
clapping, booing, cheering, jeering, etc.

Any person who disrupts the meeting shall be called to order by the presiding officer.

Disruption shall include, but not be limited to, speaking without being recognized by the presiding officer, clapping, booing, cheering, jeering, interrupting a speaker with the floor, yelling, physically assaulting another person (or threatening to do so), inciting others to disruptive conduct, and/or blocking the audience or camera view of the proceedings. If disruptive conduct continues, the presiding officer, may request:
1) Restraint and civil behavior from all members of the public; 2) a short break in the proceedings; or,
3) Remove a member of the public from the Council Chambers if the person continues to disrupt the proceedings, as defined in Government Code 54957.95 and after being warned, and after consulting with the Town 373
14 Attorney, the Sergeant at Arms will remove the person from the Council Chambers.

7.2 Addressing Town Council
No person may address the Town Council without the permission of the presiding officer or a majority of the quorum. A person addressing the Town Council will be asked, but not required, to complete a speaker card providing his/her name and community of residence in writing, as well as orally, for the record at the beginning of their comments. Each person addressing the Town Council shall do so from the podium, speaking into the microphone. Members of the public shall address only the Town Council, and not the audience or staff. A Councilmember, through and at the discretion of the presiding officer, may request staff to answer questions or address issues raised.

7.2.1 Public Comments
During the “Public Comments and Suggestions” portion of the meeting, any person may address the Town Council on an item that is not otherwise on the agenda.

7.2.2 Councilmember Questions
Following the remarks of each speaker on an agendized item, Councilmembers, through and at the discretion of the presiding officer, shall have the opportunity to question the speaker. However, Councilmembers shall not comment or question a speaker about an item that is not on the meeting agenda.

7.2.3 Speaking Time Limits
In general, public participants are encouraged to limit their comments to three (3) minutes. The presiding officer may impose strict time limits (including reduced time limits) on persons addressing the Town Council when appropriate and in the spirit of permitting all present an opportunity to address the Town Council.

7.3 Speakers’ Conduct
Statements by a member of the public shall be related to the agenda item at hand, except during the “Public Comments and Suggestions” segment of the meeting. No person shall use loud, profane, threatening, or personally abusive language, or engage in any other disorderly conduct so as to disrupt, disturb, or otherwise impede the orderly conduct of any Town Council meeting. Persons who violate this rule may be barred from attendance for the remainder of the Town Council meeting, provided that the presiding officer has notified the person to conduct themselves in a manner consistent with this provision, and warned the person that they will be removed if they continue to disrupt the Town Council meeting. If after notification and warning the person persists in disrupting the meeting the presiding officer, after consulting with the Town Attorney, may order the person to leave the Town Council meeting. If the person does not remove themself, the presiding officer, after consulting with the Town Attorney, may request the Sergeant at Arms remove the person from the Council Chambers.
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15 7.4 Written Communication
Town Council will consider any written communication submitted at least 24 hours prior to the Town Council meeting. Correspondence received sufficiently in advance of a meeting, including communications relating to a specific matter on the Town Council meeting agenda, will be handled as described in Section 6.3.

8. PUBLIC HEARINGS

8.1 Ex Parte Communication
When required by State law for land use and/or other applicable agenda items that involve a public hearing, the presiding officer shall first ask all Councilmembers to disclose on the record any material communication (e.g., email, other written correspondence, conversations, and site visits) that they had outside the public hearing that relate to the subject matter. Councilmembers shall identify with whom they had such communication, general nature of the communication, and if a site visit was conducted.

8.2 Procedures
Presentations at public hearings shall normally be in the following order:

8.2.1 Item Announced by Presiding Officer
The presiding officer will also request information with respect to possible Ex Parte Communications.

8.2.2 Presiding Officer Reviews Order of Procedure

8.2.3 Staff Summarizes Issue

8.2.4 Councilmembers Ask Questions of Staff
This is for the purpose of eliciting information relevant or useful to the Town Council’s determination of the item at hand.

8.2.5 Presiding Officer Opens the Public Hearing
The purpose of this portion of the public hearing is to provide an opportunity for persons interested in the subject to share their views, ask questions, as well as testify in support of or opposition to the matter being heard. The order of testimony shall be as follows:

A. Applicant, and/or appellant, where appropriate, presents arguments in favor of application or appeal.

B. Statements from persons desiring to speak in support of or opposition to the application or appeal.

C. Applicant and/or appellant offers concluding remarks. 375
16 D. Questions from the Town Council to applicant and/or appellant, and (where appropriate) to the opponent(s) to the application or appeal.

E. Subject to the discretion of the presiding officer, Councilmembers may ask questions of speakers for clarification during the public testimony portion and during deliberations.

8.2.6 Presiding Officer Closes Public Hearing
Following the public portion of the hearing, the presiding officer shall declare the public portion of the meeting closed.

8.2.7 Council Deliberates
After the presiding officer has closed the public comment period, the matter shall be taken up by the Town Council. Each Councilmember shall be given an opportunity to speak to the subject. When Town Council discussion is concluded, the Town Council shall proceed to make a decision.

8.2.8 Council Action
The Town Council may, at this time, continue a matter to a specific future date to obtain additional information. Continuing a public hearing to a specific date does not require additional notice. When Town Council discussion is concluded, the Town Council shall make its decision and vote on the item making findings of fact as required by law.

8.3 Absence During Public Hearing
A Councilmember otherwise qualified to vote may not vote on a matter if the Councilmember was absent from all or part of the public hearing on the matter, unless the Councilmember both: (1) reviews the minutes and the staff report or views/listens to the taping of the entire portion of the hearing they missed, if the minutes are not available; and (2) reviews all physical and written evidence introduced at the hearing before the meeting at which the decision is to be rendered.

9. MEETING RULES OF CONDUCT

9.1 Presiding Officer
The Mayor, or Vice Mayor, if the Mayor is absent or unavailable, shall act as the presiding officer and shall preside and call the meeting to order at the hour appointed.

In the absence of both, the meeting shall be called to order by the Town Clerk and those Councilmembers present shall proceed to elect a temporary presiding officer.

The presiding officer may move, second, and debate from the chair, and shall not be deprived of any rights and privileges of a Councilmember. The presiding officer is responsible for maintaining order during the meeting and for facilitating efficient progression through the meeting agenda by avoiding unnecessarily cumulative or repetitive debate and the presentation of irrelevant matter. 376
17 9.2 Actions Limited to Posted Agenda
The Town Council shall not take action on any item not appearing on the posted meeting agenda except when there is an emergency, there is a need for immediate action, and/or the item was posted for a prior meeting less than five (5) days before and was continued, as prescribed more fully in State Government Code Section 54954.2.

9.3 Continuance of an Item
A meeting agenda item may be continued by the Town Council via receiving a majority vote.

9.4 Standards of Decorum
Procedurally, when a meeting agenda item is addressed, the presiding officer shall first ask for a staff presentation. The presiding officer shall then ask for clarifying questions from Councilmembers of staff for the purpose of eliciting information relevant or useful to the Town Council’s determination of the item. After that, the Town Council shall receive public comment. After public comment, the presiding officer shall close the public comment portion and open the item for discussion by the Town Council.

The following additional standards of decorum shall apply during every meeting:

9.4.1 Town Council
While the Town Council is in session, Councilmembers will preserve order and decorum, and will not (by conversation or otherwise) delay or interrupt the proceedings or the peace of the Town Council meeting, nor disturb another Councilmember while speaking, or refuse to obey the requests and/or orders of the presiding officer.

9.4.2 Use of Electronic Devices
While the Town Council is in session, to satisfy due process requirements, Councilmembers shall give their full attention to the proceedings. Councilmembers are permitted to use laptop computers and other electronic devices, such as tablets/iPads, while the Town Council is in session. However, electronic devices may not be used while the Town Council is in session to communicate with other Councilmembers, staff, residents, and/or other interested parties regarding any item on the Town Council meeting agenda.

9.4.3 Staff Members
Staff members will observe the same rules of order and decorum applicable to the Town Council.
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18 9.5 Debate

9.5.1 Right to the Floor
Each Councilmember desiring to speak on a meeting agenda item will refrain from doing so until they gain recognition by the presiding officer and is given the floor, at which time they will confine themselves to the question under debate. The presiding officer shall have the discretion, unless overruled by a majority vote of the Town Council present, to terminate a Councilmember’s right to the floor, upon the presiding officer’s determination that doing so is reasonably necessary to enforce the protocols set forth herein.

9.5.2 Interruptions
A Councilmember, once recognized, shall not be interrupted when speaking except to be called to order by the presiding officer, unless a point of order has been raised by another Councilmember or unless the speaker chooses to yield to a question by another Councilmember. If a Councilmember, while speaking, is called to order, the Councilmember shall cease speaking until the question of order is determined.

If determined to be in order, the Councilmember shall be permitted to proceed.

9.5.3 Points of Order
The presiding officer will determine all points of order subject to the right of any Councilmember to appeal to the Town Council. If an appeal is taken, the question will be, “Will the decision of the presiding officer be sustained?” A majority vote of Town Council conclusively determines the question of order.

9.5.4 Result of a Vote
The presiding officer shall announce the result of the vote. A roll call vote shall be taken upon the request of any Councilmember or as legally required. No action shall be taken by secret ballot.

9.5.5 Appeals
Any ruling of the presiding officer may be appealed at the request of a Councilmember. The presiding officer shall call for a roll call vote to determine if the ruling is upheld.

9.5.6 Precedence of Motions
When a motion is before the Town Council, no other motion shall be entertained except:
a) Motion to Amend
A motion to amend, which modifies the original motion, is in order but is debatable only if it has been accepted by both the maker and seconder of the motion. Amendments are voted on first. The main motion vote is last. A motion may be amended more than once with each amendment being voted on 378
19 separately. There shall only be one (1) amending motion on the floor at any one time.
b) Substitute Motions
A substitute motion is for the purpose of taking out the main motion altogether and replacing it with a new and different motion. A substitute motion must be voted on before an amendment of the main motion. If the substitute motion is adopted the main motion dies, so does any amendment of the main motion. c) Motion to Postpone
A motion to postpone to a definite time is subject to debate and amendment as it relates to propriety of the postponement and time set. A motion to postpone a public hearing must set a definite date for the hearing. If a motion to postpone indefinitely is adopted, the agenda item shall be carried forward by the Town Clerk.
d) Motion to Table
A motion to table is not debatable and not subject to amendment. The purpose of a motion to table is to suspend the item for an indefinite time. If the agenda has been adopted, the motion to table should include a motion to amend the meeting agenda. If a motion to table passes, consideration of the matter during the same meeting may be resumed only upon the motion of a member voting with the majority on the motion to table.
e) Motion to Close Debate
When a motion to close debate is made and seconded, there shall be no further debate except on whether to close debate. If the question carries, the presiding officer shall put pending amendments to a vote without debate in the inverse order.of their introduction before putting the main question. If the question is decided negatively, the main question and its amendments remain before the Town Council.

9.5.7 Motions Not Subject to Debate
All motions are debatable except for the following, which shall be put to an immediate vote:

A. Motion to adjourn, which requires a simple majority.

B. Motion to recess, which requires a simple majority.

C. Motion to table, which requires a simple majority.

D. Motion to limit debate (“I move the question” or “I move to limit debate of this item to __ minutes”).
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20 9.5.8 Reconsideration
Providing that no intervening rights will be prejudiced, a Councilmember who voted with the majority on that question may move the reconsideration of that question at the same meeting in which the original decision was made or at the next following meeting. After a motion for reconsideration is acted upon, no other similar motion regarding the same matter at the same meeting may succeed without unanimous consent.

9.5.9 Conflict of Interest and Bias
A conflict of interest, or even the appearance of a conflict of interest, can diminish the public’s confidence in the integrity of the governmental process. Therefore, a Councilmember who has a conflict of interest under the Political Reform Act or State Government Code §1090 et seq., may not participate in the meeting agenda item causing the conflict, unless an exception to the conflict exists which allows participation. Councilmembers should contact the Town Attorney for advice if a potential conflict of interest may exist, or if there is a question as to whether or not their participation in a particular agenda item is appropriate.

9.5.10 Protests
Following the success of a motion carried by the majority of the Town Council, a dissenting Councilmember shall have the right to enter into the public record any additional reasons for dissent or protests against the motion which the Councilmember was precluded from articulating during debate on the motion. The presiding officer has the discretion to limit a Councilmember’s entry into the public record of reasons for dissent or protests against any motion carried by the majority when reasonably necessary to facilitate the efficient progression through the meeting agenda by avoiding unnecessarily cumulative or repetitive statements and the presentation of irrelevant matter.

9.5.11 Voting
At least three (3) affirmative votes are required to enact an ordinance, adopt a resolution, approve a motion granting a franchise or authorizing the payment or expenditure of money or incurring of a debt, amend these protocols, or place a new matter on a future agenda. Some actions, such as the passage of an urgency ordinance or adoption of a resolution of necessity, require an affirmative vote of a super-majority of the total Town Council (4/5).The majority of the quorum present at a meeting is required to adopt other motions, except as otherwise indicated herein. A "majority" refers to a majority of the quorum present.

Every ordinance shall be adopted by a roll call vote. All other matters may be referred to a voice vote, unless a roll call is requested by a councilmember or is required by law. On all matters for which a voice vote is authorized, the presiding officer may ask for "all those in favor?", or words of similar import. The presiding officer shall then request for “all those opposed?" The presiding officer shall report out the results of the vote, and the name of those Councilmembers who opposed 380
21 the item. If a Councilmember objects to the procedure, a roll call vote shall be called in the normal manner with the “ayes” and “noes” recorded in the minutes.

9.5.12 Division of the Question
If a matter properly put before the Town Council contains two (2) or more separable propositions, a Councilmember may, with the consent of one other Councilmember, divide the question into its separable parts for consideration.

Separable propositions shall mean two separate questions or issues which if acted on together might create ambiguity as to the effect of the vote, and which if acted on separately, contain two or more separate issues or questions.

10. ADMINISTRATIVE MATTERS

10.1 Correspondence

10.1.1 Electronic Correspondence
Councilmembers shall use communication accounts issued to them by the Town for all email correspondence regarding Town business. Councilmembers shall not use accounts issued to them by the Town for personal correspondence.

Councilmembers may elect to forward (without editorialization) copies of emails they receive from non-Councilmember residents to the Town Clerk, who will include such emails in the staff reports for relevant Agenda items as set forth in Section 6.3.

10.1.2 Other Correspondence
Written correspondence received by a Councilmember at the Town offices by postal service, personal delivery, and/or messenger service will be opened by staff and handled consistent with the Town Records Retention Program, which may require the Town to retain a copy. Councilmembers may elect to forward copies of written correspondence they receive to the Town Clerk, who will include such correspondence in Town Council meeting reports for relevant meeting agenda items.

10.2 Communication with the Public
Councilmembers shall be clear in all their communication with members of the public and media that the opinions and positions they convey are their own individual positions, and whether they have been authorized by the Town Council to speak for the Town Council as a whole on any topic of discussion.

The Town Council recognizes that there are inherent risks associated with the wide dissemination of information posted on social media platforms (e.g., Facebook, Nextdoor, Twitter, etc.) and the fact that Councilmembers do not have the ability to ensure their posts on social media platforms are understood by everyone in the manner in which they were originally intended to be understood. Given these risks, Councilmembers are encouraged to limit their posts on social media platforms 381
22 regarding issues that may come before the Town Council to providing relevant logistical or factual information pertaining to such issues.

10.3 Relations with Staff
In compliance with Municipal Code Section 2.08.080, the Town Council interfaces with staff only through the Town Manager, except for simple factual and logistical inquiries and routine communications which do not involve requesting action. These communications should normally be in written format, and the Councilmember shall copy the Town Manager or otherwise ensure the Town Manager is informed.

Neither the Town Council as a whole, nor individual Councilmembers, shall give orders or instructions to subordinates of the Town Manager. The Town Manager shall take orders and instructions from Town Council as a whole, and only when Town Council is sitting in a duly convened public meeting.

11. FAILURE TO OBSERVE PROTOCOLS
These protocols, along with state law and the Moraga Municipal Code, govern the conduct of Councilmembers in general, and their conduct at public meetings in particular. These protocols are intended to expedite the transaction of Town Council business in an orderly fashion and are deemed to be procedural only. Failure to strictly observe these protocols shall not affect the overall jurisdiction of the Town Council or invalidate any action taken at a meeting that otherwise conforms to law.

For the purpose of maintaining order of Town Council meetings, the Chief of Police, or such member or members of the Police Department as they may designate, shall serve as Sergeant at Arms of the Town Council, and shall carry out all orders given by the presiding officer through legal advice provided by the Town Attorney. Any Councilmember may move to require the presiding officer to enforce the protocols, and the affirmative vote of a majority of the Town Council shall require them to do so.

Each Councilmember is responsible for adhering to these protocols, and violations of these protocols should be addressed by the Town Council as a whole.

12. AMENDMENT OR SUSPENSION OF THESE PROTOCOLS

12.1 Amendment of Protocols
These protocols may be amended by an affirmative vote of at least three (3) Councilmembers, except as follows:

Where a provision of these protocols requires action by a specific affirmative vote which is greater than three (3) Town Councilmembers, then an amendment to that provision requires the same vote required for that provision. 382
23 12.2 Suspension of Protocols
Any provision of these protocols not required by California State law or the Moraga Municipal Code may be temporarily suspended by a vote of at least three (3) Councilmembers.
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