Pinole City Council
January 20, 2026

To the Honorable Mayor and Members
of the City Council of the City of Pinole
Pinole, California

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

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary Comparison Schedules, Schedule of City’s Proportionate Share of the Net Pension Liability, Schedules of Contributions – Pension Plans, and Schedule of the City’s Net OPEB Liability and Related Ratios, as listed in the accompanying table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

To the Honorable Mayor and Members
of the City Council of the City of Pinole
Pinole, California

3 Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Combining and Individual Fund Financial Statements and Budgetary Comparison Schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.

Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the Combining and Individual Fund Financial Statements and Budgetary Comparison Schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 17, 2025, on our consideration of City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Santa Ana, California
December 17, 2025

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City of Pinole
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
5 This section of the City of Pinole’s (City) Annual Comprehensive Financial Report presents a narrative overview and analysis of the City’s financial activities for the fiscal year (FY) ended June 30, 2025 (FY 2024/25). We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal and the City’s basic financial statements which follow this section.

FINANCIAL HIGHLIGHTS
 The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of FY 2024/25 by $35.7 million (net position). The City’s favorable net position reflects its fiscal health and ability to meet its obligations. Of this total, $29.3 million is restricted for specific purposes (restricted net position), $42.1 million is the net investment in capital assets and $35.7 million represents a deficit in unrestricted net position. The deficit is caused primarily by the pension and other post-employment benefits liabilities.
 The City’s net position decreased by $3.2 million, an 8.4% decrease at the close of FY 2024/25 as compared to FY 2023/24, which $0.6 million is attributable to the restatement as a result of issuing GASB 101. The decrease is primarily the net of the decrease in cash and investments with fiscal agents in governmental activities and the increase in accounts payable in business activities. Overall, governmental activities’ net position decreased by $5.4 million while business-type activities increased by $2.2 million.  Governmental funds reported ending balances of $51.1 million, a decrease of $2.7 million compared to the prior fiscal year.
 The General Fund balance closed at $28.5 million, of which $5.6 million is unassigned.

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other required supplementary information and related notes, combining statements for non-major governmental funds, and individual fund financial statements and schedules.

Government-wide Financial Statements
Government-wide Financial Statements are designed to provide readers with a broad overview of City finances, in a manner similar to a private-sector business. The government-wide financial statements include the City (primary government); the City does not have any component units.

The Statement of Net Position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as an indicator of whether the financial position of the City is improving or deteriorating.

The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows (accrual basis of accounting).

City of Pinole
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
6 Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes and expenses pertaining to interest on long-term debt.

Both of these government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a substantial portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public services, recreation, and community development. The business-type activities of the City include wastewater utility. As of February 1, 2012, the activity of the Successor Agency to Pinole Redevelopment Agency (Successor Agency) is reported with the City’s fiduciary funds, which is not included in the government-wide statements since the resources of those funds are not available to support the City’s own programs. The Successor Agency is included as a fiduciary fund as the activities are under the control of an Oversight Board. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency.

Fund Financial Statements
Fund Financial Statements use fund accounting to segregate accounts for specific activities or objectives, including demonstrating finance-related legal compliance. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds, as described below.

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental funds financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.

The governmental funds focus is narrower than that of the government-wide financial statements. It is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. This comparison facilitates a better understanding of the long-term impact associated with the government’s near-term financing decisions. The governmental funds balance sheet and the governmental funds statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains several individual governmental funds organized according to their type (general, special revenue, debt service, and capital projects). Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures and changes in fund balances for the major funds (see Notes to Basic Financial Statements).

Data from the remaining non-major governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided as supplementary information in the form of combining statements.

Proprietary funds are generally used to account for services for which the City charges customers – either outside customers or internal units of departments in the City. Proprietary funds provide the same type of information as shown in the government-wide financial statements, only in more detail. The City maintains two types of proprietary funds, enterprise funds and internal service funds, as described below.  Enterprise funds are used to report the same functions presented as business-type activities in the governmentwide financial statements. The City uses enterprise funds to account for the wastewater utility.

City of Pinole
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
7  Internal service funds are used by the City to establish reserves and account for employee benefits, equipment replacement, liability insurance, and retiree medical benefits. These funds serve both governmental and business-type functions and so they are allocated accordingly in the government-wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided as supplementary information in the form of combining statements.

Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Since the resources of these funds are not available to support the City’s own programs, they are not reflected in the government-wide financial statements. The fiduciary funds for the City consist of the Successor Agency to the Pinole Redevelopment Agency Private-Purpose Trust Fund.

Notes to Basic Financial Statements
Notes to Basic Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Required Supplementary Information
Required Supplementary Information includes budgetary comparison schedules that have been provided for the major governmental funds to demonstrate compliance with the budget. Required supplementary information also includes schedules showing the City’s progress towards funding its pension plan and other post-employment benefits (OPEB).

The City participates in California’s Public Employees Retirement System (CalPERS) for its pension plan and provides its employees with post-retirement health care benefits (OPEB).

Supplementary Information
Supplementary Information includes information for non-major governmental, non-major enterprise, internal service, and agency funds, and is presented immediately following the required supplementary information.

City of Pinole
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
8 GOVERNMENT-WIDE FINANCIAL ANALYSIS
The following section provides a comparative analysis of government-wide data for FY 2024/25 and FY 2023/24. The Statement of Net Position will be discussed first, followed by a discussion of the Changes in Net Position.

The following table is a summary of the Statement of Net Position as of June 30, 2025 and June 30, 2024.

Summary of Net Position

Governmental Activities Business-type Activities Totals 2025 2024 2025 2024 2025 2024
Total %
Change
Assets:

Current and other assets $54,392,182 $56,203,777 $20,937,493 $21,628,078 $75,329,675 $77,831,855 -3.2% Capital assets

30,530,309

31,233,589 39,269,171 36,344,156 69,799,480 67,577,745 3.3% Total assets

84,922,491 87,437,366 60,206,664 57,972,234 145,129,155 145,409,600 -0.2% Deferred outflows of resources

17,061,849

23,248,917 1,736,511 2,210,810 18,798,360 25,459,727 -26.2%

Liabilities:

Current liabilities

4,676,094

3,981,193 3,073,655 2,016,583 7,749,749 5,997,776 29.2% Long-Term liabilities

74,069,027

74,400,891 33,381,202 34,444,412 107,450,229 108,845,303 -1.3% Total liabilities

78,745,121 78,382,084 36,454,857 36,460,995 115,199,978 114,843,079 0.3% Deferred inflows of resources 11,786,247

15,431,110 1,277,852 1,673,985 13,064,099 17,105,095 -23.6%

Net position:

Net Investment in capital assets

30,299,344

30,973,001 11,802,776 7,975,522 42,102,120 38,948,523 8.1% Restricted

29,261,144

29,675,938 - - 29,261,144 29,675,938 -1.4%
Unrestricted (deficit)

(48,107,516)

(43,775,850) 12,407,690 14,072,542

(35,699,826)

(29,703,308) 20.2%
Total net position $11,452,972 $16,873,089 $24,210,466 $22,048,064 $35,663,438 $38,921,153 -8.4% Analysis of Net Position
Net position may serve as a useful indicator of a government’s financial position. The City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows by $35.7 million at the close of FY 2024/25. The City’s combined net position decreased 8.4%, or $3.2 million from the prior fiscal year. This is primarily a result of changes in governmental activities due to a decrease in current assets and changes in business activities due to an increase in current liabilities.
 Net investment in capital assets (e.g. infrastructure, land, buildings, improvements other than buildings, construction in progress, and equipment), less any related debt used to acquire assets still outstanding, is $42.1 million (118% of the total). The City uses these capital assets to provide services to the community; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since generally capital assets are not used to liquidate these liabilities. The City's net investment in capital assets increased by $3.1 million (Note 6).

City of Pinole
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
9  Restricted net position of $29.3 million (82.1% of the total) represents resources that are subject to external restrictions on how they may be used. Of this amount, $8.3 million represents housing net position with $0.4 million representing properties held for housing resale or redevelopment (Note 5).  Unrestricted net position, the part of net position that can be used to finance day-to-day operations without constraints established by debt covenants, enabling legislation, or other legal requirements, increased by $6 million to negative $35.7 million. The deficit is primarily attributable to the pension and other post-employment benefits obligations. Governmental activities unrestricted net position was a negative $48.1 million and business-type activities net position was a positive $12.4 million.

Analysis of Activities
The following table reflects the summary of changes in net position for governmental and business-type activities for the years ended June 30, 2025 and June 30, 2024.

Governmental Activities Business-type Activities Totals 2025 2024 2025 2024 2025 2024
Total %
Change
Revenues: Program revenues:

Charges for services $5,378,548 $5,068,161 $8,823,158 $8,114,292 $14,201,706 $13,182,453 7.7% Operating grants and contributions 3,132,891 2,939,589 - - 3,099,430 2,939,589 5.4% Capital grants and contributions

461,263 500,258 - - 461,263 500,258 -7.8%
Total Program Revenue

8,972,702 8,508,008 8,823,158 8,114,292 17,762,399 16,622,300 6.9%

General revenues: Taxes: Property tax 6,130,151 5,910,711 - - 6,130,151 5,910,711 3.7% Sales tax 10,065,998 9,430,219 - - 10,065,998 9,430,219 6.7% Franchise tax 910,745 901,209 - - 910,745 901,209 1.1%
Utility tax 2,657,157 2,445,715 - - 2,657,157 2,445,715 8.6% Other taxes 915,021 911,622 - - 915,021 911,622 0.4%
Motor Vehicle in Lieu 2,405,165 2,319,153 - - 2,405,165 2,319,153 3.7% Investment earnings (loss) 2,256,092 2,449,243 454,276 483,402 2,710,368 2,932,645 -7.6% Miscellaneous 102,057 124,132 102,057 124,132 -17.8%
Total General Revenues 25,442,386 24,492,004 454,276 483,402 25,896,662 24,975,406 3.7% Total Revenues 34,415,088 33,000,012 9,277,434 8,597,694 43,659,061 41,597,706 5.0%

Expenses: General government 6,320,536 5,439,951 - - 6,320,536 5,439,951 16.2% Public safety

21,039,278

20,226,459 - - 21,039,278 20,226,459 4.0%
Public services

5,824,745

5,734,403 - - 5,824,745 5,734,403 1.6%
Recreation

2,662,821

2,275,235 - - 2,662,821 2,275,235 17.0%
Community development

2,994,841

2,968,511 - - 2,994,841 2,968,511 0.9%
Interest and fiscal charges

451,069 424,186 - - 451,069 424,186 6.3%
Wastewater utility - - 7,051,724 6,812,685 7,051,724 6,812,685 3.5% Total expenses

39,293,290

37,068,745 7,051,724 6,812,685 46,345,014 43,881,430 5.6% Revenues over (under) expenses (4,878,202) (4,068,733) 2,225,710 1,785,009 (2,652,492) (2,283,724) 16.1% Changes in Net Position (4,878,202) (4,068,733) 2,225,710 1,785,009 (2,652,492) (2,283,724) 16.1% Net position, beginning of year,
restated 16,873,089 20,941,822 22,048,064 20,263,055 38,921,153 41,204,877 -5.5% Change in accounting principle
(GASB 101) (541,915) (63,308) (605,223) 0.0%
Beginning of the year, as restated
(Note 19)

16,331,174 21,984,756 20,263,055 38,315,930 41,204,877 -7.0% Net position, end of year $11,452,972 $16,873,089 $24,210,466 $22,048,064 $35,663,438 $38,921,153 -8.4%

City of Pinole
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
10 Governmental Activities
Governmental activities encompass the core public services that the City provides to its residents and are primarily funded through taxes, intergovernmental revenues, and other sources. These activities reflect the essential functions that support community well-being, including public safety, infrastructure, and community services.

Governmental activities net position decreased by $5.4 million. Key elements of the change in net position are as follows:
 Program revenues, mainly charges for services and grants and contributions, reflected an increase of $0.5 million, or 4.7% more than FY 2023/24. The increase was primarily attributable to receipts of grant monies for community development and capital projects.
 General revenues, mainly property tax and investment earnings, reflected an increase of $0.95 million, or 3.9% combined over FY 2023/24. The increase was mostly due to additional sales tax revenue received following voter approval of the Measure I—an additional half-cent local sales tax, which went into effect on April 1, 2025.  Expenses increased by $2.2 million, or 5.6% over the prior fiscal year. The most significant changes were in general government, public safety, and recreation.

Business-type Activities
The City’s sole business-type activity is the operation of its Water Pollution Control Plant (WPCP) Wastewater Utility, which is accounted for in a proprietary-type enterprise fund. The WPCP accounts for the collection, treatment and disposal of wastewater generated by city residents and businesses. The operation and maintenance of the City’s Wastewater Utility should be a self-supporting enterprise that is paid for by monthly service charges to all residential and commercial users. The City’s business-type activities provide the same type of information as the proprietary fund financial statements, but are presented in a more summarized format.

Business-type activities net position increased by $2.2 million. Key elements of the change in net position are as follows:
 Program revenues increased $0.7 million, or 8.6% over the prior fiscal year due to an increase in wastewater rates.
 Expenses increased $0.3 million, or 4.4% over the prior fiscal year. This was due to the normal increase in operating expenses. Depreciation expense is considered a cost of service in proprietary funds, which accounted for $1.0 million in FY 2024/25 (Note 6).

In addition, the City of Pinole is financing its share of the Water Pollution Control Plant Upgrade project through a low interest loan from the State Revolving Loan Fund. The City was approved for a loan in the amount of $26.7 million by the State Water Resources Control Board. In order to repay the loan, the City Council approved Resolution Number 2013-47 with scheduled rate increases over a five-year period, beginning July 1, 2013. The rate plan was amended July 17, 2018 by Resolution Number 2018-66. The 2025 annual rate for single family residents was $954.13 and $720.42 for multi-family residents.

Fund Financial Analysis
The City uses fund accounting to segregate accounts for specific activities or objectives, including demonstrating finance-related legal compliance.

City of Pinole
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
11 Governmental Funds
The following table presents the Governmental Funds’ balances as of June 30, 2025:

Governmental Fund Balances

General Fund
Housing
Programs
Special Revenue
Fund
Building &
Planning
Fund
Non-Major
Governmental
Funds
Total
Governmental
Funds
Nonspendable $ 79,756 $ - $ - $ 320,552 $ 400,308
Restricted 12,559,159 8,251,073 - 12,507,466 33,317,698 Committed 10,236,705 - - - 10,236,705
Assigned - - - 4,455,979 4,455,979
Unassigned 5,619,093 - (2,545,964) (391,272) 2,681,857
Total Fund Balances $ 28,494,713 $ 8,251,073 $ (2,226,680) $ 16,892,725 $ 51,092,547 The City implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions in fiscal year 2010-11 (Note 12). This Statement provides more clearly defined fund balance categories to make the nature and extent of the constraints placed on a government’s fund balances more transparent.

At June 30, 2025, the City’s governmental funds reported combined fund balances of $51.1 million, which is an decrease of $2.7 million (5.3%) when compared to the prior fiscal year, FY 2023/24. This largely results from a decrease in the unassigned fund balance due to the funding of capital projects, special one-time initiatives, and increased General Fund operating subsidies the Recreation and PCTV funds.

Nonspendable fund balances constitute $400,308 (0.8%) of the combined governmental fund balance and cannot be spent either because the underlying resources are not in a spendable form or because the government is legally or contractually required to maintain the resources intact.

Restricted fund balances constitute $33.3 million, (65%) of the combined governmental fund balance and are constrained for a specific purpose by external parties, constitutional provision, or enabling legislation.

Committed fund balances constitute $10.2 million (20%) of the combined governmental fund balance and are constrained by City Council for reserves for economic uncertainty as well as certain capital projects.

Assigned fund balances constitute $4.5 million (9%) of the combined governmental fund balance and are intended to be used for specific purposes and have been identified as such by the City Council or the City Manager who has been delegated authority by the City Council to assign amounts.

Unassigned fund balances constitute $2.7 million (5%) of the combined governmental fund balance and consist of amounts that have not been classified as nonspendable, restricted, or assigned.

City of Pinole
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
12 Analysis of Governmental Funds
General Fund
The designated major Governmental funds in FY 2024/25 are the General Fund, Housing Fund, and the Building & Planning Fund. A major fund is defined as those funds whose revenues, expenditures/expenses, assets or liabilities are at least 10 percent of the total for their fund category (governmental or enterprise) and 5 percent of the aggregate of all governmental and enterprise funds in total.

The General Fund is the primary operating fund of the City. The General Fund is used to report the financial results of the daily operations of the City. The major revenue sources are Property Tax, Sales Tax, and Utility Users’ Tax. The major expenditures are salaries and administrative expenses.

The fund balance for the General Fund decreased by $3.8 million, or -11.8% compared to FY 2023/24, as a net result of expenditures in excess of revenues, resulting from an increase in the use of unassigned fund balance capital projects, special initiatives, and additional operating expenditures and subsidies to the recreation and PCTV funds.

General Fund revenue increased by $1 million, or 3.8% compared to FY 2023/24. The largest component of this increase was higher taxes and assessments revenues due to the additional sales tax revenue from Measure I, combined with an increase in interest income resulting from higher returns on investments.

General Fund expenditures increased $0.5 million, or 1.7% compared to FY 2023/24. This is increase in mainly due to increases in general government, public safety, and capital outlay expenses.

The following charts provide a breakdown of General Fund revenues and expenses, highlighting the primary sources and uses of funds.

City of Pinole
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
13 Revenues
The following table and chart highlight the General Fund revenue by source for the year ended June 30, 2025.

Revenue by Source
Source Amount % of Total
Taxes and assessments $23,084,237 83.6%
Intergovernmental revenues 196,826 0.7%
Investment earnings 1,740,629 6.3%
Rents and ground leases 93,218 0.3%
Charges for services 2,427,448 8.8%
Fines, forfeitures and penalties 34,535 0.1%
Other revenues 46,798 0.2%
Total $27,623,691 100.0%
Taxes and
assessments,
$23,084,237 , 84%
Intergovernmental
revenues, 196,826 ,
1%
Investment earnings,
1,740,629 , 6%
Rents and ground
leases, 93,218 , 0%
Charges for services,
2,427,448 , 9%
Fines, forfeitures and
penalties, 34,535 ,
0% Other revenues,
46,798 , 0%

City of Pinole
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
14 Expenditures
The following table and chart highlight the General Fund expenditures by function for the year ended June 30, 2025.

Expenditures By Function
Function Amount % of Total
General Government $5,565,434 19.1%
Public Safety 18,427,142 63.2%
Public Services 2,436,095 8.4%
Recreation 408,986 1.4%
Community Development 556,232 1.9%
Capital Outlay 957,330 3.3%
Debt Service 789,543 2.7%
Total $29,140,762 100.0%
Other Governmental Funds
These funds, which include the Housing Fund, Planning and Building Fund, and other Non-Major Governmental Funds are presented individually in the Fund Financial Statements.

Other governmental funds revenue increased by $0.2 million, or 3.1% compared to FY 2023/24. This is largely due to normal increases in operating revenues, such as fees, permits, and interest income.

Other governmental funds expenditures increased by $0.2 million, or 2.3% compared to FY 2023/24. This is largely due to normal increases in operating expenses, such as salaries, benefits, and other expenses.

General
Government,
$5,565,434 , 19%
Public Safety,
18,427,142 , 63%
Public Services ,
2,436,095 , 8%
Recreation,
408,986 , 2%
Community
Development,
556,232 , 2%
Capital Outlay,
957,330 , 3%
Debt Service ,
789,543 , 3%

City of Pinole
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
15 Proprietary Fund
Wastewater Utility
The Wastewater Utility Funds net position increased by $2.2 million, or 10% over the prior fiscal year to a total of $24.2 million. Program revenues were $8.8 million, as revenues increased by $0.7 million and expenses increased by $0.3 million.

The Fund’s Net Position is comprised of $11.8 million net investment in capital assets and $12.4 million in unrestricted net assets at June 30, 2025. The increased rates for the sewage collection and treatment fees have continued to generate positive cash flows to the City’s Business-type Activities, stabilizing the fiscal condition of this enterprise activity.

Fiduciary Fund
The Successor Agency to the Pinole Redevelopment Agency Private Purpose Trust Fund On December 29, 2011, the California Supreme Court upheld Assembly Bill 1x-26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. In accordance with the timeline set forth in the bill, all redevelopment agencies in the State of California were dissolved and ceased to operate as legal entity as of February 1, 2012.

The Successor Agency is a separate legal entity which was formed to hold the assets of the former Redevelopment Agency pursuant to City Council action. The activity of the Successor Agency is overseen by an Oversight Board comprised of individuals appointed by various government agencies (Note 15). Dissolution of the Successor Agency is planned to be completed in FY 2025/26 as all outstanding debt from former redevelopment obligations have been paid and retired, and all former redevelopment properties have been either sold or transferred to the City.

City of Pinole
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
16 CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets:

As of June 30, 2025, the City’s net investment in capital assets for its governmental and business-type activities was $69.8 million, up $2.9 million from the prior year. This investment in capital assets includes: infrastructure, land, construction-in-progress, buildings, and improvements, equipment, vehicles, streets and roads, storm drains, bridges, parks, and sewer lines. Infrastructure assets are items that are normally immovable and of value to the City such as roads, bridges, streets and sidewalks, drainage systems, lighting systems, and similar items (Note 6).

Capital assets for the governmental and business-type activities are presented below to illustrate changes from the prior year:

Capital Assets at Year-end

2025 2024 Net Change
Governmental Activities
Land and Construction-in-progress $8,047,433 $9,164,522 ($1,117,089) Buildings and improvements 16,638,872 16,156,929 481,943 Machinery, equipment and vehicles 9,445,593 9,323,223 122,370 Infrastructure 62,465,306 61,222,765 1,242,541
Leased assets 81,627 103,931 (22,304)
Subscription assets 1,214,101 1,155,303 58,798
Less accumulated depreciation and amortization (67,362,623) (65,893,084) (1,469,539) Totals 30,530,309 31,233,589 (703,280)
Business-type activities
Construction in Progress 4,206,577 367,638 3,838,939
Buildings and improvements 40,946,105 40,857,072 89,033 Equipment 1,141,677 1,229,931 (88,254)
Vehicles 789,200 789,200 0
Infrastructure 7,474,337 7,474,337 0
Less accumulated depreciation (15,288,725) (14,374,022) (914,703) Totals $39,269,171 $36,344,156 $2,925,015

City of Pinole
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
17 Debt Administration:

Each of the City’s debt issues is discussed in detail in Note 7 to the financial statements. At June 30, 2025, the City’s total remaining long-term debt related to governmental and business-type activities is as follows:

Outstanding Debt

Balance Balance
Governmental Activity Debt June 30, 2025 June 30, 2024 Net Change 2006 Pension Obligation bonds $1,886,188 $2,089,509 (203,321) Leases payable 77,290 30,976 46,314
Subscription payable 135,095 199,399 (64,304)
Claims Payable 30,022 21,652 8,370
Compensated absences 1,356,987 1,387,723 (30,736)
Total Governmental Activity Debt 3,485,582 3,729,259 (243,677)

Business-Type Activity Debt
2016 Wastewater Revenue Refunding Bond 5,271,000 5,633,000 (362,000) 2016 Clean Water State Revolving Fund 22,032,956 22,735,634 (702,678) Compensated absences 283,873 278,478 5,395
Total Business-Type Activity Debt 27,587,829 28,647,112 (1,059,283)

Total Debt Outstanding $31,073,411 $32,376,371 ($1,302,960)

ECONOMIC OUTLOOK AND MAJOR INITIATIVES
The economy of the City and its major initiatives for the coming year are discussed in the accompanying Transmittal Letter (page i-v). The most significant financial initiatives facing the City are as follows:
 Fiscal Year (FY) 2025/26 Operating and Capital Budget. The budget adopted by the City Council on June 17, 2025. It is a status quo budget, meaning that ongoing revenues are mostly sufficient to cover ongoing expenditures, and that service levels and revenue mechanisms in the budget are essentially the same as those in the FY 2024/25 budget. The budget does include the use of a portion of the City’s unassigned fund balance to fund several capital projects and special one-time initiatives.  City’s Strategic Plan 2020-2025. The plan identifies 22 individual strategies (special projects) for staff to complete over a five-year timeframe to position the City to achieve the vision, mission, and goals. Most initiatives have been completed, and the remaining strategies are expected to be finalized in the FY 2025/26.

In addition, the City intends to develop a new strategic plan to guide the next five years.  Long-Term Financial Planning. As a part of its financial planning efforts, the City maintains a 20-year financial forecast that is updated annually to reflect changes in revenues, expenditures, and other economic factors. This forecast serves as a tool for identifying potential future opportunities and challenges. By proactively analyzing these trends, the City is able to align resources with community priorities and address issues through the annual budget process and capital improvement planning.

City of Pinole
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
18  Capital Facility and Public Infrastructure Projects. The City maintains a Capital Improvement Plan (CIP), which is a multi-year planning tool that identifies and prioritizes capital needs over the upcoming five-year horizon. The CIP aligns capital projects with appropriate funding sources, schedules, and implementation strategies. The plan serves as a working blueprint for building and sustaining publicly funded physical infrastructure. In coordination with the CIP, the City has also developed master plans that address high-priority areas, such as roads, transportation, and stormwater.
 Economic Development Strategies. The City will continue to support major development and reinvestment activities throughout Pinole. Staff will perform inspections and process permits for Appian Village and continue working with the developer of the former Kmart site to either implement the approved Pinole Vista entitlements or re-envision the site for new economic activity. The City will also advance permitting for the proposed 120,000-square-foot Pinole Shores II industrial project and collaborate with the new owner of Pinole Square/Appian 80 to expedite revitalization efforts, including through potential Brownfields assistance.

Additionally, the City plans to advance the potential disposition of two key City-owned downtown sites to catalyze reinvestment and further the Economic Development Strategy’s goal of sustained downtown activation.
 Successor Agency Dissolution. The formal dissolution is planned to occur in FY 2025/26 as the former Redevelopment Agency’s outstanding debt service has been paid off and all remaining properties have been either sold or transferred to the City. After dissolution, property tax revenue will flow directly to the General Fund rather than through the Redevelopment Property Tax Trust Fund (RPTTF).  Sales Tax Measure. During the November 2024 municipal election, Pinole voters passed Measure I, an additional half-cent local sales tax. It is projected to generate approximately $2.6 million annually and the additional funds will go into the City’s General Fund primarily to maintain critical services.

REQUESTS FOR INFORMATION
This financial report is designed to provide our residential and business community, taxpayers, customers, investors, and creditors with a general overview of the City’s finances. Questions concerning any information provided in this report or requests for additional information should be addressed to the City of Pinole, Finance Department, 2131 Pear Street, Pinole, CA 94564. Alternatively, you may send your inquiries via email to [email protected].

BASIC FINANCIAL STATEMENTS
19

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20

GOVERNMENT-WIDE FINANCIAL STATEMENTS
21

Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 31,973,701 $ 17,918,844 $ 49,892,545 $ Cash and investments with fiscal agents 12,442,949 1,123,342 13,566,291 Accounts receivable, net 4,204,774 816 4,205,590
Notes receivable, net 4,380,001 - 4,380,001
Interest receivable 151,798 138,039 289,837
Lease receivable, current 99,203 - 99,203
Due from other government - 516,024 516,024
Prepaid items 382,081 1,230,534 1,612,615
Inventory 9,894 18,227 28,121
Land held for resale 355,062 - 355,062
Total current assets 54,007,796 20,937,493 74,945,289
Noncurrent assets:

Lease receivable - noncurrent 384,386 - 384,386
Capital assets:

Land and construction in progress 8,047,433 4,206,577 12,254,010 Capital assets being depreciated/amortized, net 22,482,876 35,062,594 57,545,470 Total capital assets 30,530,309 39,269,171 69,799,480
Total noncurrent assets 30,914,695 39,269,171 70,183,866 Total assets 84,922,491 60,206,664 145,129,155

DEFERRED OUTFLOWS OF RESOURCES
Pension related amounts 12,100,243 1,185,222 13,285,465 OPEB related amounts 4,961,606 551,289 5,512,895
Total deferred outflows of resources 17,061,849 1,736,511 18,798,360 June 30, 2025
Statement of Net Position
City of Pinole
Primary Government
See accompanying Notes to the Basic Financial Statements. 22

Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 1,659,375 1,140,604 2,799,979
Accrued payroll 663,117 59,594 722,711
Interest payable 44,875 425,873 470,748
Unearned revenue 80,682 - 80,682
Retention payable 18,580 162,439 181,019
Deposits payable 262,385 - 262,385
Compensated absences, due within one year 140,688 33,732 174,420 Claims payable, due within one year 30,022 - 30,022
Long-term debt, due within one year 293,274 1,086,624 1,379,898 Total OPEB liability, due within one year 1,483,096 164,789 1,647,885 Total current liabilities 4,676,094 3,073,655 7,749,749 Noncurrent liabilities:

Compensated absences, due in more than one year 1,216,299 250,141 1,466,440 Long-term liabilities, due in more than one year 1,805,299 26,217,332 28,022,631 Net pension liability 41,151,793 3,591,992 44,743,785
Total OPEB liability, due in more than one year 29,895,636 3,321,737 33,217,373 Total noncurrent liabilities 74,069,027 33,381,202 107,450,229 Total liabilities 78,745,121 36,454,857 115,199,978

DEFERRED INFLOWS OF RESOURCES
Lease related 444,567 - 444,567
Pension related amounts 1,352,611 167,955 1,520,566
OPEB related amounts 9,989,069 1,109,897 11,098,966
Total deferred inflows of resources 11,786,247 1,277,852 13,064,099

NET POSITION
Net investment in capital assets 30,299,344 11,802,776 42,102,120 Restricted:

Community development 7,635 - 7,635
Public works 7,762,871 - 7,762,871
Public safety 796,616 - 796,616
Housing activities 8,251,073 - 8,251,073
Pension 12,442,949 12,442,949 -
Total restricted 29,261,144 29,261,144 -
Unrestricted (deficit) (48,107,516) 12,407,690 (35,699,826) Total net position $ 11,452,972 $ 24,210,466 $ 35,663,438 Primary Government
City of Pinole
Statement of Net Position (Continued)
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 23

Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Primary government:

Governmental activities:

General government $ 767,359 6,331,078 $ 19,301 $ 155,294 $ 941,954 $ Public safety 2,017,514 21,039,278 596,097 - 2,613,611
Public services 5,824,745 479,192 1,880,021 305,969 2,665,182 Recreation 2,662,821 799,884 41,722 - 841,606
Community development 1,314,599 2,994,841 595,750 - 1,910,349 Interest expense 440,527 - - - -
Total Governmental Activities 5,378,548 39,293,290 3,132,891 461,263 8,972,702 Business-type activities:

Wastewater utility 8,823,158 7,051,724 - - 8,823,158
Total Business-Type Activities 8,823,158 7,051,724 - - 8,823,158 Total primary government $ 14,201,706 46,345,014 $ 3,132,891 $ 461,263 $ 17,795,860 $

City of Pinole
Statement of Activities
For the Year Ended June 30, 2025
Program Revenues
See accompanying Notes to the Basic Financial Statements. 24

Governmental Business-type
Functions/Programs Activities Activities Total
Primary government:

Governmental activities:

General government $ (5,389,124) $ (5,389,124) - $
Public safety - (18,425,667) (18,425,667)
Public services (3,159,563) - (3,159,563)
Recreation (1,821,215) - (1,821,215)
Community development (1,084,492) (1,084,492) -
Interest expense (440,527) - (440,527)
Total Governmental Activities (30,320,588) (30,320,588) - Business-type activities:

Wastewater utility 1,771,434 - 1,771,434
Total Business-Type Activities 1,771,434 - 1,771,434
Total primary government 1,771,434 (30,320,588) (28,549,154) General Revenues:

Taxes:

Property taxes 6,130,151 - 6,130,151
Sales taxes 10,065,998 - 10,065,998
Franchise taxes 910,745 - 910,745
Utility taxes 2,657,157 - 2,657,157
Other taxes 915,021 - 915,021
Total taxes 20,679,072 - 20,679,072
Unrestricted motor vehicle in lieu taxes 2,405,165 - 2,405,165 Investment earnings revenue 2,256,092 454,276 2,710,368 Miscellaneous 102,057 - 102,057
Total General Revenues 454,276 25,442,386 25,896,662
Change in Net Position (4,878,202) 2,225,710 (2,652,492) Net Position:

Beginning of year, as previouly reported 22,048,064 16,873,089 38,921,153 Change in accounting principle (GASB 101) (541,915) (63,308) (605,223) Beginning of year, as restated (Note 19) 16,331,174 21,984,756 38,315,930 End of year $ 24,210,466 11,452,972 $ 35,663,438 $
For the Year Ended June 30, 2025
Statement of Activities (Continued)
City of Pinole
Net (Expense) Revenue
and Changes in Net Position
See accompanying Notes to the Basic Financial Statements. 25

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26

FUND FINANCIAL STATEMENTS
27

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28

Governmental Fund Financial Statements
General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds, and the related expenditures. The major revenue sources for this fund are property taxes, sales taxes, utility users tax, franchise fees, business licenses, unrestricted revenues from the State, fines and forfeitures and interest income.

Expenditures are made for public safety, recreation, and the other services described above.

Housing Programs Fund receives tax increment funds through Redevelopment Property Tax Trust Funds, representing 20% set-aside for housing activities. Funds are expended for approved housing activities.

Building and Planning Fund - This fund is used to account for fees collected for building permits and plan check fees.

Fees collected are used to cover the cost involved in plan checks and inspections performed. 29

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30

Housing
Programs Building Non-major Total
General Special Revenue & Planning Governmental Governmental Fund Fund Fund Funds Funds
ASSETS
Cash and investments $ 11,547,020 $ 3,501,281 $ 16,925,350 50 $ $ 31,973,701 Accounts receivable 3,491,589 302,291 - 410,894 4,204,774 Notes receivable 4,380,001 - - 4,380,001 -
Lease receivable 472,203 - - 11,386 483,589
Interest receivable 30,616 25,509 6,632 89,041 151,798
Due from other funds 5,675,590 - - 5,675,590 -
Prepaid items and supplies 61,529 - 320,552 - 382,081
Inventory 18,227 - - - 18,227
Land held for redevelopment 355,062 - - 355,062 -
Cash and investments with fiscal agents 12,442,949 - - 12,442,949 - Total assets $ 33,739,723 $ 8,261,853 $ 308,973 $ 17,757,223 $ 60,067,772

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable 1,262,697 $ 10,780 $ 152,647 $ 251,831 $ 1,677,955 $ Accrued liabilities 602,097 - 26,866 34,154 663,117
Unearned revenue 80,624 - - 58 80,682
Deposits payable 96,920 - 79,820 85,645 262,385
Due to other funds 2,612,328 - 2,595,604 467,658 5,675,590 Total liabilities 10,780 4,654,666 2,854,937 839,346 8,359,729

DEFERRED INFLOWS OF RESOURCES
Leases related 444,567 - - - 444,567
Unavailable revenue 145,777 - - 25,152 170,929
Total deferred inflows of resources - 590,344 - 25,152 615,496

Fund Balances (Deficit):

Nonspendable 79,756 - - 320,552 400,308
Restricted 12,559,159 8,251,073 - 12,507,466 33,317,698 Committed 10,236,705 - - - 10,236,705
Assigned - - - 4,455,979 4,455,979
Unassigned (deficit) 5,619,093 - (2,545,964) (391,272) 2,681,857 Total fund balances (deficit) 8,251,073 28,494,713 (2,545,964) 16,892,725 51,092,547 Total liabilities, deferred inflows of
resources, and fund balances $ 8,261,853 33,739,723 $ 308,973 $ 17,757,223 $ 60,067,772 $ Major Funds
City of Pinole
Balance Sheet
Governmental Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 31

Total Fund Balances - Total Governmental Funds $ 51,092,547 Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet.

Nondepreciable $ 8,047,433
Depreciable/amortizable 22,482,876
Total capital assets 30,530,309
Long-term liabilities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the Statement of Net Position.

Amount reported in Government-Wide Statement of Net Position Compensated absences - due within one year $ (140,688)
Compensated absences - due in more than one year (1,216,299) Claim payable - due within one year (30,022)
Long-term debt - due within one year (293,274)
Long-term debt - due in more than one year (1,805,299)
Total long-term liabilities (3,485,582)
Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in the governmental funds. (44,875) Revenue reported as unavailable revenue in the governmental funds when it is not received soon enough after year-end to be considered available. The availability criteria does not apply to the Government-Wide Financial Statements and, therefore, the revenue is recognized when eligibility requirements are met and earned. 170,929
Aggregate net pension liability and total OPEB liability used in the governmental activities were not financial resources and therefore were not reported in the Governmental Funds Balance Sheet.

Net pension liability $ (41,151,793)
Total OPEB liability (31,378,732)
Total OPEB and Pension (72,530,525)
Deferred outflows of resources related to OPEB and pensions are not available for current period and, therefore, are deferred in the governmental funds or not recorded in the governmental funds.

Amount reported in Government-Wide Statement of Net Position Deferred outflows of resources related to pensions $ 12,100,243 Deferred outflows of resources related to OPEB 4,961,606 Total deferred outflows of resources 17,061,849
Deferred inflows of resources related to OPEB and pensions are not available for current period and, therefore, are deferred in the governmental funds or not recorded in the governmental funds.

Amount reported in Government-Wide Statement of Net Position Deferred inflows of resources related to pensions (1,352,611) $ Deferred inflows of resources related to OPEB (9,989,069) Total deferred inflows of resources (11,341,680)
Net Position of Governmental Activities $ 11,452,972
Amounts reported for Governmental Activities in the Statement of Net Position were different because:

City of Pinole
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 32

Housing
Programs Building Non-major Total
General Special Revenue & Planning Governmental Governmental Fund Fund Fund Funds Funds
REVENUES:

Taxes and assessments $ 23,084,237 $ 488,477 - $ $ 539,369 $ 24,112,083 Intergovernmental revenues 196,826 391,360 - 2,096,704 2,684,890 Investment earnings 1,740,629 176,892 500 596,056 2,514,077 Rents and ground leases 93,218 - 56,624 - 149,842
Charges for services 2,427,448 769,169 - 729,933 3,926,550 Fines, forfeitures and penalties 34,535 41,652 - 19,470 95,657 Other revenues 46,798 - 714,262 - 761,060
Total revenues 27,623,691 176,892 1,691,158 4,752,418 34,244,159

EXPENDITURES:

Current:

General government 5,565,434 - 521,705 - 6,087,139
Public safety 18,427,142 - 612,976 - 19,040,118
Public services 2,436,095 - 1,681,179 - 4,117,274
Recreation 408,986 - 2,141,278 - 2,550,264
Community development 556,232 193,590 2,010,442 2,760,662 398 Capital outlay 957,330 - 789,806 - 1,747,136
Debt service:

Principal 348,148 - - 348,148 -
Interest and fiscal charges 441,395 - - 441,395 -
Total expenditures 29,140,762 193,590 2,010,442 5,747,342 37,092,136 Excess (deficiency) of
revenues over expenditures (1,517,071) (16,698) (319,284) (994,924) (2,847,977) OTHER FINANCING SOURCES (USES):

Proceeds from sale of asset 1,327 - - - 1,327
Issuance of leases and subscription liabilities 126,837 - - 126,837 - Transfers in 3,928,488 - 2,455,258 - 6,383,746
Transfers out (6,383,746) - - (6,383,746) -
Total other financing sources (uses) (2,327,094) - 2,455,258 - 128,164 NET CHANGE IN FUND BALANCES (3,844,165) (16,698) (319,284) 1,460,334 (2,719,813) FUND BALANCES (DEFICIT):

Beginning of year 32,338,878 8,267,771 (2,226,680) 15,432,391 53,812,360 End of year $ 28,494,713 $ 8,251,073 $ (2,545,964) $ 16,892,725 $ 51,092,547 Major Funds
For the Year Ended June 30, 2025
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances City of Pinole
See accompanying Notes to the Basic Financial Statements. 33

Net Change in Fund Balances - Total Governmental Funds $ (2,719,813) Capital outlay $ 1,213,107
Depreciation/amortization expense (1,916,387)
Total capital assets (703,280)
868
170,929
Proceeds from issuance of debt $ (126,837)
Repayment of debt and lease principal 348,148
Total 221,311
Accrued compensated absences $ 30,736
Claims payable (8,370)
Net difference between pension expense and contributions subsequent to the measurement date (2,814,899) Net difference between OPEB expense and contributions subsequent to the measurement date 944,316 Total (1,848,217)
Change in Net Position of Governmental Activities $ (4,878,202) Capital assets used in governmental activities are not financial resources and therefore are not reported in governmental funds:

Debt proceeds are reported as financing sources in governmental funds and thus contribute to the liabilities and not affect the statement of activities. Similarly, repayment of principal is an expenditure in the governmental funds, but reduces the liability in the statement of net position.

Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds:

Amounts reported for Governmental Activities in the Statement of Net Position were different because:

City of Pinole
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities For the Year Ended June 30, 2025
Interest accrued on long-term debt is reported in the Statement of Activities, but does not require the use of current financial resources. Therefore, accrued interest is not reported as an expenditure in governmental funds. This amount represents the change in accrued interest from the prior year.

Revenue reported as unavailable revenue in the governmental funds when it is not received soon enough after year-end to be considered available. The availability criteria does not apply to the Government-Wide Financial Statements and, therefore, the revenue is recognized when eligibility requirements are met and earned.

See accompanying Notes to the Basic Financial Statements. 34

Proprietary Funds Financial Statements
Wastewater Utility Fund - this fund accounts for wastewater utility services provided by the City and it is the City's intent that the cost of providing these services be financed primarily through user charges. 35

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36

Business-type
Activities
Wastewater Utility
Enterprise Fund
ASSETS
Current assets
Cash and investments $ 17,918,844
Restricted cash and investment 1,123,342
Interest receivable 138,039
Other receivable 816
Due from other governments 516,024
Prepaid items 1,230,534
Inventory 9,894
Total current assets 20,937,493
Noncurrent assets
Capital assets not being depreciated 4,206,577
Capital assets being depreciated, net 35,062,594
Total capital assets 39,269,171
Total noncurrent assets 39,269,171
Total assets 60,206,664

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflow pension-related items 1,185,222
Deferred outflow OPEB-related items 551,289
Total deferred outflows of resources 1,736,511

LIABILITIES
Current liabilities
Accounts payable 1,140,604
Accrued liabilities 59,594
Retention payable 162,439
Interest payable 425,873
Compensated absences - current 33,732
Long-term debt, due within one year 1,086,624
Total OPEB liability, due within one year 164,789
Total current liabilities 3,073,655
Noncurrent liabilities
Compensated absences - noncurrent 250,141
Long-term debt, due in more than one year 26,217,332
Net pension liability 3,591,992
Total OPEB liability, due in more than one year 3,321,737 Total noncurrent liabilities 33,381,202
Total liabilities 36,454,857

DEFERRED INFLOWS OF RESOURCES
Deferred inflow pension-related items 167,955
Deferred inflow OPEB-related items 1,109,897
Total deferred inflows of resources 1,277,852

NET POSITION
Net investment in capital assets 11,802,776
Unrestricted 12,407,690
Total net position $ 24,210,466
City of Pinole
Statement of Net Position
Proprietary Fund
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 37

Business-type
Activities
Wastewater Utility
Enterprise Fund
OPERATING REVENUES:

Charges for services $ 8,806,617
Other revenue 16,541
Total operating revenues 8,823,158
OPERATING EXPENSES:

Sewer treatment plant 4,929,897
Sewer maintenance 1,118,870
Depreciation 1,002,957
Total operating expenses 7,051,724
OPERATING INCOME (LOSS) 1,771,434
NONOPERATING REVENUES (EXPENSES):

Interest revenue 986,146
Interest expense (531,870)
Total nonoperating revenues (expenses) 454,276
Changes in net position 2,225,710
NET POSITION:

Beginning of year, as previouly reported 22,048,064
Change in accounting principle (GASB 101) (63,308)
Beginning of year, as restated (Note 19) 21,984,756
End of year $ 24,210,466
City of Pinole
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Fund
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 38

Business-type
Activities
Wastewater Utility
Enterprise Fund
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers $ 8,571,453
Cash paid to suppliers (2,509,699)
Cash paid to employees (2,751,075)
Net cash provided by operating activities 3,310,679
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets (3,765,533) Principal payment of long-term debt (1,064,678)
Interest paid on debt (547,340)
Net cash (used in) capital and related financing activities (5,377,551) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest and dividends 1,018,377
Net cash provided by investing activities 1,018,377
Net change in cash and cash equivalents (1,048,495)
CASH AND CASH EQUIVALENTS:

Beginning of year 20,090,681
End of year $ 19,042,186

RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:

Operating income $ 1,771,434
Adjustments to reconcile operating to net
cash provided by operating activities:

Depreciation 1,002,957
Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Other receivables (1)
Due from other governments (251,704)
Prepaid items (141,350)
Inventory 2,914
Deferred outflow pension-related items 292,033
Deferred outflow OPEB-related items 182,266
Accounts payable 898,694
Compensated absences 5,396
Net pension liability (44,717)
Total OPEB liability (11,110)
Deferred inflows - pension related (120,053)
Deferred inflows - OPEB related (276,080)
Total adjustments 1,539,245
Net cash provided by operating activities $ 3,310,679
City of Pinole
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 39

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40

FIDUCIARY FUND FINANCIAL STATEMENTS
41

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42

Total
Private-Purpose Custodial
Trust Fund Funds
ASSETS
Cash and cash equivalents $ 203,479 1,814,140 $
Interest receivable 13,136 215
Notes receivable, net of allowance 10,054 -
Easement 272,040 -
Land held for redevelopment 2,469,715 -
Capital assets not being depreciated 2,429,793 -
Capital assets being depreciated, net 6,707,506 -
Total assets 13,716,384 203,694

LIABILITIES
Accounts payable 7,405 14,097
Deposits payable 56,238 139,721
Unearned revenue 18 26,297
Total liabilities 63,661 180,115

NET POSITION
Restricted for:

Held in trust for dissolution of RDA 13,652,723 -
Individuals, organizations, and other governments - 23,579 Total net position $ 13,652,723 $ 23,579
City of Pinole
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 43

Total
Private-Purpose Custodial
Trust Fund Funds
ADDITIONS:

Investment income $ 1,480 90,228 $
Total additions 90,228 1,480
DEDUCTIONS:

Operating costs 19,662 -
Depreciation 255,670 -
Total deductions 275,332 -
Change in net position (185,104) 1,480
NET POSITION:

Beginning of year 13,837,827 22,099
End of period $ 13,652,723 $ 23,579
City of Pinole
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 44

45 NOTES TO THE BASIC FINANCIAL STATEMENTS

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City of Pinole
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
47 Page
Note 1 – Summary of Significant Accounting Policies ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 51 A. The Reporting Entity ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 51 B. Basis of Presentation ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 52 C. Property Taxes ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 54 D. Cash and Investments ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 55 E. Cash and Investments with Fiscal Agents ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 55 F. Fair Value Measurement ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 55 G. Accounts and Interest Receivable ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 55 H. Prepaid Items and Inventory ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 56 I. Leases Receivable ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 56 J. Capital Assets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 57 K. Subscription-Based Information Technology Arrangements (SBITAs) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 57 L. Lease Liabilities ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 58 M. Long-Term Liabilities ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 59 N. Compensated Absences ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 59 O. Pension ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 59 P. Other Postemployment Benefits (OPEB) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 59 Q. Deferred Outflows/Inflows of Resources ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 60 R. Interfund Transactions ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 60 S. Net Position and Fund Balances ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 61 T. Spending Policy ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 62 U. Grant Funding ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 62 V. Deferred Compensation ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 62 W. Use of Estimates ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 63 X. Implementation of Governmental Accounting Standards Board (GASB) Pronouncements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 63 Z. New GASB Pronouncements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 63 Note 2 – Cash and Investments ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 64 A. Summary of Cash and Investments ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 64 B. Deposits ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 64 C. Investments Authorized by the California Government Code and the City's Investment Policy ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 65 D. Investments Authorized by Debt Agreements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 66 E. Investment Valuation ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 66 F. Disclosure Relating to Interest Rate Risk ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 67 G. Disclosures Relating to Credit Risk ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 67 H. Investment in Local Agency Investment Fund (LAIF) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 68 I. Investment in CalTRUST ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 68 Note 3 – Notes Receivable ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 68 Note 4 – Lease Receivablesꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 70 Note 5 – Land Held For Resaleꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 70 Note 6 – Capital Assetsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 71 A. Governmental Activities ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 71 B. Business-Type Activities ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 72

City of Pinole
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025
48 Page
Note 7 – Long-Term Liabilities ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 72 A. Governmental Activities ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 72 B. Business-Type Activities ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 74 Note 8 – Interfund Transactionsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 75 A. Interfund Transfers to/from Other Funds ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 75 B. Due to/from Other Funds ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 76 Note 9 – Defined Benefit Pension Planꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 76 A. General Information about the Pension Plans ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 76 B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 78 Note 10 – Other Post-Employment Benefits (OPEB)ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 81 A. Summaryꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 81 B. Description of the Plan ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 81 C. Employees Covered ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 82 D. Contributions ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 82 E. Total OPEB Liability ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 83 F. Discount Rate ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 83 G. Changes in the Total OPEB Liability ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 83 H. Expected Average Remaining Service Lives (EARSL) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 84 I. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 84 Note 11 – Deferred Compensation Plan ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 85 A. 457 Plan ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 85 Note 12 – Fund Balanceꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 86 Note 13 – Risk Managementꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 87 Note 14 – Stewardship, Compliance, and Accountability ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 87 A. Deficit Fund Balances/Net Position ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 87 B. Expenditures in Excess of Appropriations ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 88 Note 15 – Successor Agency Private Purpose Trust for Assets of Former Redevelopment Agency ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 88 A. Capital Assets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 89 Note 16 – Contingencies and Commitmentsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 89 Note 17 – Net Investment in Capital Assets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 89

City of Pinole
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025
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Note 18 – Joint Powers Agreementsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 90 A. Pinole/Hercules Wastewater Treatment Plant ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 90 Note 19 – Restatement of Beginning Net Position and Fund Balanceꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 90

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City of Pinole
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
51 Note 1 – Summary of Significant Accounting Policies
The City of Pinole, California (the “City”) was incorporated June 25, 1903. The City is primarily a residential community located in Contra Costa County, twenty-four miles east of San Francisco on Interstate 80. The City provides the following services: public safety (police), parks, streets and highways, sanitation, culture-recreation, public improvements, planning and zoning, and general administration services.

The City operates under the Council-Manager form of government, with five elected Council members served by a full-time City Manager and staff. At June 30, 2025, the City's staff comprised 100 full-time and 31 part-time employees who are responsible for the following City-provided services:

Public Safety - The City employs 25 sworn and 20 non-sworn police personnel to provide round-the-clock police services from a central station.

Sanitation - The City maintains a sewage treatment plant with 13 employees, the plant provides wastewater treatment services to the residents of the City of Pinole and the City of Hercules.

Parks, Streets and Highways - The City builds and maintains its streets, curbs, gutters, parks and related public property with a force of 13 employees. Major projects may be contracted out to reduce costs.

Recreation, Public Improvements, Planning, Zoning, Administration - Recreation, Public Improvements, Planning, Zoning, Administration and other services are provided by a total of 60 employees.

The financial statements and accounting policies of the City conform with accounting principles generally accepted in the United States of America ("U.S. GAAP") applicable to governments. The Governmental Accounting Standards Board (“GASB”) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Significant accounting policies are summarized below:

A. The Reporting Entity
The accompanying basic financial statements present the financial activities of the City along with the financial activities of its blended component unit, which is an entity for which the City is financially accountable. Together these entities comprise the primary government for reporting purposes. Although they are separate legal entities, a blended component unit is in substance part of the City's operations and is reported as an integral part of the City's financial statements. The City's component unit, which is described below, is blended.

Pinole Joint Powers Financing Authority
The Pinole Joint Powers Financing Authority (the “Authority”) is a separate government entity whose purpose is to assist with the financing or refinancing of public capital facilities within the City. The Authority has the power to purchase bonds issued by any local agency and may sell such bonds to public or private purchasers. The Authority is controlled by the City and has the same governing body as the City, which also performs all accounting and administrative functions for the Authority. The financial activities of the Authority are included in the Wastewater Utility Fund and the Private-Purpose Trust Fund.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
52 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

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

Government-wide Financial Statements:

The Government-Wide Financial Statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. On an accrual basis, revenue from sales taxes is recognized in the period in which the taxable sale takes place. Revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. Fiduciary activities are not included in these statements.

Certain types of transactions are reported as program revenues for the City in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
 Due from and to other funds
 Transfers in and out
Governmental Fund Financial Statements
A Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances are presented for all major governmental funds and aggregated nonmajor funds. Accompanying schedules are presented to reconcile and explain the differences in fund balances as presented in these statements, to the net position presented in the government-wide financial statements. The City has presented all major funds that met the applicable criteria.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
53 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation (Continued)
All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Change in Fund Balances presents increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both “measurable” and “available” to finance expenditures of the current period.

Revenues are recognized as soon as they are both “measurable” and “available”. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

The City reports the following major governmental funds:
 General Fund – The general fund is the general operating fund of the City and is always classified as a major fund. It is used to account for all activities except those legally or administratively required to be accounted for in other funds.
 Housing Program Special Revenue Fund – The housing program special revenue fund is used to account for the proceeds tax increment funds through Redevelopment Property Tax Trust Funds that are restricted or committed to expenditure for approved housing activities.  Building and Planning Fund – The building and planning fund is used to account for fees collected for building permits and plan check fees. Fees collected are used to cover the cost involved in plan checks and inspections performed.

Proprietary Fund Financial Statements
Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Sewer fund are charges to customers for services. Operating expenses for the proprietary funds include the costs of services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

The City reports one major proprietary fund:
 Wastewater Utility Fund – The Wastewater Utility Fund is used to account for the collection of sewer service fees and the related cost of maintenance and repair of the sewer treatment plant.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
54 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation (Continued)
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent custodial funds and private purpose trust funds. Both custodial funds and the private purpose trust funds are accounted for on the full accrual basis of accounting where the assets associated with the activity are controlled by the City and the assets are not derived 1) solely from the government’s own-source revenues or 2) from government-mandated nonexchange transactions or voluntary nonexchange transactions.

The City reports the following two types of fiduciary funds:
 Custodial Funds – Custodial Funds are clearing type funds for the collection of taxes or deposits held in trust, on behalf of individuals, private organizations, and other governments for which the City has a custodial responsibility. This fund is used to account for funds collected from asset seizure and private donations received for the community assistance program.  Private-Purpose Trust Fund – Private purpose trust fund is used to report all other trust arrangements under which principal and income benefit individuals, private organizations, or other governments. This fund was created as a result of the State order to dissolve California Redevelopment Agencies. As a Successor Agency, this fund is used to track the activity by the Oversight Board and the State Department of Finance to dissolve the Agency.

C. Property Taxes
California Constitution Article XIII A, limits the combined property tax rate to one percent of a property's assessed valuation. Additional taxes may be imposed with voter approval. Assessed value is calculated at one hundred percent of a property's fair value, as defined by Article XIII A, and may be increased no more than two percent per year unless a change in ownership occurs. The state legislature has determined the method of distributing the one percent tax levy among the various taxing jurisdictions.

Property tax revenues are recognized in the fiscal year for which taxes and assessments are levied. The County of Contra Costa levies, bills and collects property taxes and special assessments for the City under the County's "Teeter Plan." The County remits the entire amount levied and handles all delinquencies, retaining interest and penalties.

Tax collections are the responsibility of the County Tax Collector. Taxes and assessments on secured and utility rolls which constitute a lien against the property, may be paid in two installments; the first is due November 1 of the fiscal year and is delinquent if not paid by December 10; and the second is due on February 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against real property unless the tax becomes delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payment.

Tax levy dates are attached annually on January 1 preceding the fiscal year for which the taxes are levied. The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured and personal property, as it exists at that time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
55 Note 1 – Summary of Significant Accounting Policies (Continued) D. Cash and Investments
The City pools the cash of all funds, except for monies deposited with fiscal agents in accordance with related bond indentures. The cash and investments balance in each fund represents that fund's equity share of the City's cash and investment pool. As the City places no restrictions on the deposit or withdrawal of a particular fund's equity in the pool, the pool operates like a demand deposit account for the participating funds.

Interest income earned on pooled cash and investments is allocated quarterly to the various funds based on month-end balances and is adjusted at fiscal year-end. Interest income on restricted cash and investments with fiscal agents is credited directly to the related funds.

The City's investments are carried at fair value. The fair value of equity and debt securities is determined based on sales prices or bid-and-asked quotations from SEC-registered securities exchanges or NASDAQ dealers. The Local Agency Investment Fund ("LAIF") determines the fair value of their portfolio quarterly and reports a factor to the City; the City applies that factor to convert its share of LAIF from amortized cost to fair value. This amount is included in cash and cash equivalents in the balance sheet of the governmental funds. Changes in fair value are allocated to each participating fund.

For purposes of the statement of cash flows, the City has defined cash and cash equivalents to be change and petty cash funds, equity in the City's cash and investment pool, and restricted non-pooled investments with initial maturities of three months or less.

E. Cash and Investments with Fiscal Agents
Cash and investments with fiscal agents are restricted for the redemption of bonded debt, for acquisition and construction of capital projects, and pension contributions.

F. Fair Value Measurement
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosure about fair value measurement. Investments, unless otherwise specified at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:
 Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
 Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.  Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

G. Accounts and Interest Receivable
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received.

Receivables are recorded in the financial statements net of any allowance for doubtful accounts if applicable, and estimated refunds due. Major receivable balances for the governmental activities include sales and use taxes, franchise taxes, grants, police fines and other fees. Federal and state grants are considered receivable and accrue as revenue when reimbursable costs are incurred. Business-type activities report utilities and interest earnings as their major receivables.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
56 Note 1 – Summary of Significant Accounting Policies (Continued) G. Accounts and Interest Receivable (Continued)
In the fund financial statements, material receivables in governmental funds include revenue accruals such as sales tax, franchise tax, and grants and other similar intergovernmental revenues since they are usually both measurable and available. Nonexchange transactions collectible but not available are recorded as deferred inflows of resources in the fund financial statements in accordance with modified accrual, but not in the government-wide financial statements in accordance with the accrual basis. Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available. Long-term loans in governmental funds are treated as expenditures in the year advanced and as revenues in the year repayment is measurable and available. Proprietary fund material receivables consist of all revenues earned at year-end and not yet received. Utility accounts receivable and interest earnings compose the majority of proprietary fund receivables.

H. Prepaid Items and Inventory
Inventories are stated at cost (average cost per unit) for governmental and proprietary funds. Supplies of the General Fund consist of expendable supplies held for consumption. The cost is recorded as an expenditure/expense in the General Fund at the time individual items are consumed, rather than purchased.

Inventories of governmental funds are offset by nonspendable fund balance to indicate they do not constitute resources available for future appropriation. Enterprise Fund supplies consist primarily of items held for internal use.

Prepaid items are also recognized under the consumption method. Payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items in both government-wide and fund financial statements.

I. Leases Receivable
The City is a lessor for leases of buildings and recognizes lease receivables and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable.

At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. The City established a threshold of $5,000 for lease receivables. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are 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 inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.  The City uses incremental borrowing rate (IBR) provided by the financial institution at July 1, 2021 for existing leases or the current rate at the time a new lease is executed.  The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised.
 Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
57 Note 1 – Summary of Significant Accounting Policies (Continued) I. Leases Receivables (Continued)
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

J. Capital Assets
In the government-wide financial statements, capital assets with a historical cost over $5,000 are accounted for as capital assets. All capital assets are valued at historical cost, or estimated historical cost if actual is unavailable.

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 capital assets received in a service concession arrangement are reported at acquisition value on the date donated.

The City defines infrastructure assets as the basic physical assets that allow the City to function. The assets include the street system, wastewater system, park and recreation lands and improvement system, and buildings combined with the site amenities such as parking and landscaped areas used by the City in the conduct of its business.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Capital assets acquired under finance purchase are capitalized at the net present value of the total finance payments.

Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method.

The lives used for depreciation purposes are as follows:

Asset Type Years
Infrastructure 50-75
Buildings and improvement 50-100
Machinery, equipment, and vehicles 5-10
K. Subscription-Based Information Technology Arrangements (SBITAs) The City has a policy to recognize a subscription liability and a right‐to‐use subscription asset (subscription asset) in the financial statements. The City recognizes subscription liabilities with an initial, individual value of $5,000 or more with a subscription term greater than one year. Variable payments based on future performance of the City, usage of the underlying IT asset, or number of user seats are not included in the measurement of the subscription liability, rather, those variable payments are recognized as outflows of resources (expenses) in the period the obligation for those payments is incurred.

At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made.

Subscription assets are recorded at the amount of the initial measurement of the subscription liabilities, less any payments made to the SBITA vendor before the commencement of the subscription term, and capitalizable initial implementation cost, less any incentives received from the SBITA vendor at or before the commencement of the subscription term.
 Preliminary Project Stage: Outlays are expensed as incurred.  Initial Implementation Stage: Outlays are capitalized as an addition to the subscription asset.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
58 Note 1 – Summary of Significant Accounting Policies (Continued) K. Subscription-Based Information Technology Arrangements (SBITAs) (Continued) Upon adoption, the City elected to exclude the capitalizable outlays associated with the initial implementation stage and the operation and additional implementation stage that were incurred prior to the implementation of this Statement in the measurement of subscription assets as of July 1, 2022.

Subscription assets are reported within capital assets and subscription liabilities are reported with long-term liabilities on the statement of net position. Subscription assets are amortized using the straight-line method over the shorter of the subscription term or the useful life of the underlying IT asset, unless the subscription contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the subscription asset is amortized over the useful life of the underlying IT asset.

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

L. Lease Liabilities
The City recognizes lease liabilities with an initial, individual value of $5,000 or more with a lease term greater than one year in the government-wide and proprietary fund financial statements. Variable payments based on future performance of the City or usage of the underlying asset are not included in the measurement of the lease liability. Lease assets are reported within capital assets and lease liabilities are reported with long-term liabilities on the statement of net position.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.

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

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

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
59 Note 1 – Summary of Significant Accounting Policies (Continued) M. Long-Term Liabilities
In the Government-Wide Financial Statements and Proprietary Fund Financial Statements, long-term debt and other long-term obligations are reported as liabilities in the appropriate activities. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs except for any portion related to prepaid insurance were recognized as expense in the period incurred. Premium or discount not considered as part of the reacquisition price was amortized over the life of the bond.

The governmental fund financial statements do not present long-term liabilities. Consequently, long-term debt is shown as a reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the GovernmentWide Statement of Net Position.

N. Compensated Absences
Compensated absences comprise vested accumulated vacation and sick leave. The City's liability for compensated absences is recorded in governmental or business-type activities as appropriate. The liability for compensated absences is determined annually. For all governmental funds, amounts expected to be "permanently liquidated," such as what is due to be paid because of a realized employment action, are recorded as fund liabilities; the longterm portion is recorded in the Statement of Net Position.

The liability for compensated absences is recognized as leave is earned, based on the employee’s pay rate in effect at the financial statement date, including any applicable salary-related costs. The liability includes only leave attributable to services already rendered and that is more likely than not to be paid.

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

The following timeframes are used for pension reporting:

CalPERS
Valuation date June 30, 2023
Measurement date June 30, 2024
Measurement period July 1, 2023 to June 30, 2024
P. Other Postemployment Benefits (OPEB)
For the purpose of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments, which are reported at amortized cost.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
60 Note 1 – Summary of Significant Accounting Policies (Continued) P. Other Postemployment Benefits (OPEB) (Continued)
General Fund is typically used to liquidate OPEB liabilities for governmental funds.

The following timeframes are reported OPEB reporting:

OPEB
Valuation date June 30, 2023
Measurement date June 30, 2024
Measurement period July 1, 2023 to June 30, 2024
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the sources of gain or loss. The difference between projected and actual earnings is amortized on a straight-line basis over 5 years. All other amounts are amortized on a straight-line basis over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) at the beginning of the measurement period.

Q. Deferred Outflows/Inflows of Resources
The statement of net position and balance sheet – governmental funds reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable.

Deferred Outflows of Resources represent outflows of resources (consumption of net assets) that applies to future periods and that, therefore, will not be recognized as an expense until that time.

Deferred Inflows of Resources represent inflows of resources (acquisition of net assets) that applies to future periods and that, therefore, are not recognized as revenue until that time.

R. Interfund Transactions
Interfund transactions are reflected as either loans, services provided, reimbursements, or transfers. Loans are reported as receivables and payables as appropriate and are subject to elimination upon consolidation and are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as "internal balances". Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources.

Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
61 Note 1 – Summary of Significant Accounting Policies (Continued) S. Net Position and Fund Balances
In the Government-Wide Financial Statements and proprietary fund financial statements, net position is classified as follows:

Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation and amortization, reduced by the outstanding balances of retention payable and debt that are attributable to the acquisition, construction, or improvement of those assets, and related deferred outflows and inflows of resources, net of unspent debt proceeds.

Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

In the Governmental Fund Financial Statements, fund balances are classified as follows:

Nonspendable – Nonspendable fund balances are items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, or items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds.

Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.

Committed – Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body, and that remain binding unless removed in the same manner. The City Council is considered the highest authority for the City. Adoption of a resolution by the City Council is required to commit resources or to rescind the commitment.

Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the City’s intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has authorized by resolution the City Manager or the City Fiscal Officer for that purpose.

Unassigned – This amount is for any portion of the fund balances that do not fall into one of the above categories. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount.

However, in governmental funds other than General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
62 Note 1 – Summary of Significant Accounting Policies (Continued) T. Spending Policy
Government-Wide Financial Statements and the Proprietary Fund Financial Statements When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed.
 Restricted
 Committed
 Assigned
 Unassigned
Government-Wide Financial Statements and the Proprietary Fund Financial Statements When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed.

Governmental Fund Financial Statements
When expenditures are incurred for purposes for which all restricted, committed, assigned and unassigned fund balances are available, the City’s policy is to apply in the following order, except for instances wherein an ordinance specifies the fund balance:
 Restricted
 Committed
 Assigned
 Unassigned
U. Grant Funding
Under the terms of grant agreements, the City funds certain programs by a combination of specific costreimbursement grants, categorical block grants, and general revenues. Thus, when program expenses are incurred, there are both restricted and unrestricted net position available to finance the program. The City's policy is to first apply cost-reimbursement grant resources to such programs, followed by general revenues.

V. Deferred Compensation
City employees may defer a portion of their compensation under a City sponsored Deferred Compensation Plan created in accordance with Internal Revenue Code Section 457. Under these Plans, participants are not taxed on the deferred portion of their compensation until distributed to them; distributions may be made only at termination, 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. Since the assets held under these plans are not the City's property and are not subject to City control, they have been excluded from these financial statements.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
63 Note 1 – Summary of Significant Accounting Policies (Continued) W. Use of Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from these estimates.

X. Implementation of Governmental Accounting Standards Board (GASB) Pronouncements GASB Statement No. 101 – In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Implementation of this Statement had a significant effect on the City's financial statements for the fiscal year ended June 30, 2025. See Note 19.

GASB Statement No. 102 – In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued.

Implementation of this Statement did not have a significant effect on the City's financial statements for the fiscal year ended June 30, 2025.

Y. New GASB Pronouncements
The City is currently evaluating its accounting practices to determine the potential impact on the financial statements for the following GASB Statements:

GASB Statement No. 103 – In April 2024, GASB issued Statement No. 103, Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. Application of this statement is effective for the City’s fiscal year ending June 30, 2026.

GASB Statement No. 104 – In September 2024, GASB issued Statement No. 104, Disclosure of Certain Capital Assets. This Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital assets note disclosures. Subscription assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class.

Application of this statement is effective for the City’s fiscal year ending June 30, 2026.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
64 Note 2 – Cash and Investments
The City maintains a cash and investment pool for all funds. Certain restricted funds that are held and invested by independent outside custodians through contractual agreements are not pooled. These restricted funds include cash and investment held by trustees.

A. Summary of Cash and Investments
Cash and investments as of June 30, 2025 were classified in the accompanying financial statements as follows:

Fiduciary Funds
Governmental Business-Type Statement of
Activities Activities Total Net Position Total
Cash and investments 31,973,701 $ 17,918,844 $ 49,892,545 $ 2,017,619 $ 51,910,164 $ Cash and investments with fiscal agents 12,442,949 1,123,342 13,566,291 - 13,566,291 Total cash and investments $ 19,042,186 44,416,650 $ 63,458,836 $ 2,017,619 $ 65,476,455 $ Government-Wide Statement of Net Position
Cash and investments for the City at June 30, 2025, consisted of the following:

Cash:

Cash on hand 1,920 $
Deposits with financial institution 3,807,731
Total cash 3,809,651
Investments:

Local Agency Investment funds 24,015,846
CalTrust 3,631,411
Money Market Fund 11,710,666
Mutual Funds 7,891,363
Corporate Notes 977,070
Negotiable Certificates of Deposit 997,499
Restricted cash and investment with PARS 12,442,949
Total investments 61,666,804
Total cash and investments $ 65,476,455
B. Deposits
The carrying amount of the City’s cash deposits were $3,807,731 at June 30, 2025. Balance before reconciling amounts was $4,057,909 at June 30, 2025. The City has waived collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The remaining amount was collateralized with securities pledged by the pledging financial institution in the City’s name.

The California Government Code (Code) requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. The Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
65 Note 2 – Cash and Investments (Continued)
B. Deposits (Continued)
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

C. Investments Authorized by the California Government Code and the City's Investment Policy Investments are reported at fair value. California statutes authorize Cities to invest idle or surplus funds in a variety of credit instruments as provided for in the California Government Code, Section 53600, Chapter 4 – Financial Affairs. The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restricted) that address interest rate risk, credit risk, and concentration of credit risk. The table does not address investments of debt proceeds held by the bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. The City’s permissible investments are described below.

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Types Maturity of Portfolio One Issuer* U.S. Treasury Obligations 5 Years None None
U.S. Agency Securities 5 Years 40% None
Repurchases Agreements 30 days 10% None
Banker's Acceptances 180 days 40% 10%
Commercial Paper (Minimum rating of "A" or higher) 180 days 15%*** None Medium Term corporate Notes (Minimum rating of
"AA" or higher) 5 Years 15% 5%
Negotiable Certificates of Deposit issued in California 5 Years 10% None Negotiable Certificates of Deposit 5 Years 30% None
Local Agency Investment Fund (LAIF)** N/A None None
Mutual Funds N/A 15% None
** Limit set by LAIF governing Board not California Government Code *** An additional l5 percent or a total of 30 percent of the City’s investment portfolio may be invested only if the dollar weighted average of the entire amount does not exceed 3l days. * Based on state law requirements or City investment policy requirements, whichever is more restrictive.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
66 Note 2 – Cash and Investments (Continued)
D. Investments Authorized by Debt Agreements
Investment of debt issuances held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized by bond trustees. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Types Maturity of Portfolio One Issuer U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
State of Municipal Bonds or Notes rated "AA" or better None None None Repurchase Agreements rated "A" or better 30 days None None Investment Agreements and Contracts None None None
Money Market Funds rated "AA-m" or better None None None Certificates of Deposit None None None
Commercial Paper rated "A-1" or better None None None
Federal Funds or Bankers Acceptances 1 Year None None
Local Agency Investment fund (LAIF) None None None
E. Investment Valuation
Investments (except money market accounts that are included as part of restricted cash and investments) are measured at fair value on a recurring basis. Recurring fair value measurements are those that GASB Statements require or permit in the statement of net position at the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to measure an asset’s fair value. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Investments’ fair value measurements are as follows at June 30, 2025:

Investments measured by fair value level: Total Level 2 Uncategorized Corporate Notes 977,070 $ 977,070 $ $ -
Negotiable Certificates of Deposits 997,499 997,499 -
Investments not subject to the fair value hierarchy:

Local Agency Investment Fund 24,015,846 24,015,846 -
CalTrust 3,631,411 3,631,411 -
Restricted cash and investment with PARS 12,442,949 12,442,949 - Mutual Funds 7,891,363 7,891,363 -
Money market funds 11,710,666 11,710,666 -
Total $ 61,666,804 $ 59,692,235 1,974,569 $
Level 2 inputs are valued based on matrix pricing which use observable market inputs such as yield curves and market indices that are derived principally from or corroborated by observable market data by correlation to other means.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
67 Note 2 – Cash and Investments (Continued)
F. Disclosure Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City's interest rate risk is mitigated 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.

The sensitivity of the fair values of the City's investments (including investments held by bond trustees) to market rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity as of June 30, 2025:
12 Months 13 to 24
Investment Type or less Months Total
Held by City:

Money Market 11,710,666 $ - $ 11,710,666 $
Local Agency Investment Fund 24,015,846 - 24,015,846 $
Caltrust 3,631,411 - 3,631,411 $
Securities of U.S. Government:

Corporate Notes - 977,070 977,070
Mutual Funds 7,891,363 - 7,891,363
Negotiable certificates of deposits 746,547 250,952 997,499 Held by Trustees:

Restricted cash & investments with PARS 12,442,949 - 12,442,949 Total investments $ 1,228,022 60,438,782 $ 61,666,804 $ G. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code or debt agreements, and the actual rating as of the fiscal year for each investment type.

Investment Type Total
Minium
Legal Rating AA+ Not Rated
Held by City:

Securities of U.S. Government:

Corporate notes 977,070 $ AA+ 977,070 $ - $
Local Agency Investment Fund 24,015,846 N/A - 24,015,846 CalTrust 3,631,411 N/A - 3,631,411
Mutual Funds 7,891,363 N/A - 7,891,363
Money market fund 11,710,666 N/A - 11,710,666
Negotiable certificates of deposits 997,499 N/A - 997,499 Restricted Cash-PARS 12,442,949 N/A - 12,442,949
Total investments $ 977,070 61,666,804 $ 60,689,734 $

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
68 Note 2 – Cash and Investments (Continued)
G. Disclosures Relating to Credit Risk (Continued)
Concentration of Credit Risk – The City complies with the limitations on the amount that can be invested in any one issuer as stipulated by the California Government Code. There were no investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City investments at June 30, 2025.

Custodial Credit Risk – Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, a government will not be able to recover the value for its investment or collateral securities that are in the possession of another party.

H. Investment in Local Agency Investment Fund (LAIF)
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. As of June 30, 2025, the City had $24,015,846 invested in LAIF. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. LAIF is reported at amortized cost, which approximates fair value.

I. Investment in CalTRUST
The Investment Trust of California, doing business as CalTRUST, is a California joint powers authority which provides California Public Agencies with investment management services for surplus funds to consolidate investment activities of its Participants and thereby reduces duplication, achieves economies of scale and carries out coherent and consolidated investment strategies through the issuance of shares of beneficial interest in investments purchased by CalTRUST. CalTRUST currently offers three accounts or series as a means for Public Agencies to invest their funds. The City participates in the CalTRUST Short-Term Fund Series and CalTRUST Medium-Term Fund Series. The City had $3,631,411 invested in CalTRUST at June 30, 2025.

Note 3 – Notes Receivable
Notes receivables of the City as of June 30, 2025, were:

Housing Rehabilitation $ 29,929
First time Home-Buyer 229,623
Bridge Housing Loan 1,103,908
Alvarez Court 1,931,058
Eastbluff Apartment Loan 1,120,868
811 San Pablo Ave 4,380,000
Subtotal 8,795,386
Less: Allowance for uncollectible loans (4,415,385)
Total $ 4,380,001

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
69 Note 3 – Notes Receivable (Continued)
Housing Rehabilitation The City has provided loans to various homeowners for rehabilitation of property. These loans are secured by second deeds of trust on the property and have a range of interest rates from 2% to 6% with a maximum fifteen-year term. The balance of these notes receivable totaled $29,929 at June 30, 2025.

First Time Home-Buyer In 1995, the City implemented a first time homebuyer program designed to encourage home ownership among low-income persons by providing down payment assistance. Under this program, loans are provided at no interest and are due upon sale or transfer of the property, refinance or payoff of the first mortgage, recordation of a third mortgage or default of the first mortgage. At the time of the loan repayment, the City shares in equity appreciation based on the City's loan share of the original purchase price. The balance of the notes receivable arising from this program at June 30, 2025 was $229,623.

Bridge Housing The Agency assisted Bridge Housing Corporation with its acquisition and development of the Pinole Grove Senior Housing Project by providing $900,000 in the form of land and cash in return for a note bearing simple interest at a rate of 3% per year, secured by a deed of trust on the Project. Principal and interest are due annually but are payable only from surplus cash flow as defined in the note. The Project is not expected to generate a surplus cash flow and under the terms of the note. The total amount of principal plus accrued interest is due and payable on September 30, 2066. As of June 30, 2025, the outstanding balance was $1,103,908.

Alvarez Court In August 2000, the City approved a loan of up to $609,000 to assist the Resources for Community Development with the development of a housing project for persons with disabilities. In August 2002 the City amended the loan agreement, increasing the loan amount to $988,000. The term of the loan is 40 years from the date of final closing by Housing and Urban Development, bearing a simple interest at a rate of 4% and is secured by first deed of trust. As of June 30, 2025, the total outstanding balance was $1,931,058.

Eastbluff Apartments In 1996, the Pinole Redevelopment Agency assisted Eastbluff Associates with its development of the Eastbluff Apartments by providing $975,000 in exchange for a note. The note was renegotiated in April 2016 and is secured by a deed of trust. The note bears an annual compound interest rate of 2.25% for a term of 55 years or until full repayment of the principal balance of the loan. Payments are the greater of $63,375 per year or 50% of the surplus cash flow as defined in the terms of the Note. As of June 30, 2025, the outstanding balance was $1,120,868.

Disposition and Development Agreement In 2021, the City entered into an agreement with Satellite Affordable Housing Associates (Developer) to develop, construct and operate the Thirty-Three unit affordable rental apartment project and provided the purchase loan and construction loan to Developer in amount of $3,180,000 with a veering a simple interest rate of 3%. In March, 2023, both parties entered into an amendment of the agreement to increase the loan to $4,380,000 and lower the interest rate from 3% to 0%. As of June 30, 2025, the outstanding balance was $4,380,000.

Allowance for doubtful accounts
The City has several programs under which it extends loans to qualifying individuals or groups for the purpose of improving the City's housing stock and/or its supply of low-and-moderate income housing. Some of these loans provide for the eventual forgiveness of the loan balance if the borrower complies with all the terms of the loan over its full term. The City has provided a 100% allowance for all notes receivable subject to long-term deferral and/or payment from future refinancing as well as all notes receivable having subordination provisions, except for those accounts that have current payment activity and are not delinquent at June 30, 2025.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
70 Note 4 – Lease Receivables
The City leases various types of property including land and buildings. Leases receivable consist of agreements with other entities for the “right–to–use” the underlying assets at various locations owned by the City. The remaining terms of the agreements range from 1 to 7 years. The interest rates used to calculate the net present value of the lease receivable ranged from 1.39% to 2%.

For the fiscal year ended June 30, 2025, the City recognized $86,045 and $7,434 in lease revenue and interest income, respectively, and the outstanding net present value of the lease receivable amount is $483,589.

A summary of changes in lease receivable for the governmental activities for the year ended June 30, 2025 is as follows:

Balance Balance Due within Due in More
July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Leases receivable $ 564,381 $ (80,792) - $ $ 483,589 $ 99,203 $ 384,386 Classification
The future payments on the leases as of June 30, 2025 were as follows:

Year Ending
June 30, Principal Interest Total
2026 $ 99,203 $ 6,012 $ 105,215
2027 90,234 4,770 95,004
2028 91,496 3,507 95,003
2029 92,776 2,227 95,003
2030 94,074 930 95,004
2031-2032 15,806 27 15,833
Total $ 483,589 $ 17,473 $ 501,062
The amortization of deferred inflow-lease related future revenue were as follows:

Year Ending Amortization
June 30, Schedule
2026 $ 86,045
2027 86,045
2028 86,045
2029 86,045
2030 86,045
2031-2032 14,342
Total $ 444,567
Note 5 – Land Held For Resale
At June 30, 2025, the City and successor agency fund held the properties at 2100/2150 San Pablo Ave for resale or redevelopment with a total value of $355,062 and $2,469,715, respectively.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
71 Note 6 – Capital Assets
A. Governmental Activities
The following is a summary of changes in capital assets for the governmental activities for the year ended June 30 2025:

Balance Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated
Land $ 6,313,621 $ - $ (364,415) - $ $ 5,949,206
Construction in progress 2,850,901 489,867 (1,242,541) - 2,098,227 Total capital assets, not being depreciated 9,164,522 489,867 (1,606,956) - 8,047,433 Capital assets, being depreciated
Building and improvements 16,156,929 118,640 (1,112) 364,415 16,638,872 Machinery, equipment and vehicles 9,323,223 472,232 (349,862) 9,445,593 - Infrastructure 61,222,765 - 1,242,541 - 62,465,306
Total capital assets, being depreciated 86,702,917 590,872 (350,974) 1,606,956 88,549,771 Accumulated depreciation:

Building and improvements (11,880,229) (272,084) 1,112 (12,151,201) - Machinery, equipment and vehicles (7,582,315) (534,140) 349,862 (7,766,593) - Infrastructure (45,678,951) (835,522) - (46,514,473) -
Total accumulated depreciation (65,141,495) (1,641,746) 350,974 (66,432,267) - Total capital assets, being depreciated, net 21,561,422 (1,050,874) 1,606,956 - 22,117,504 Right to use assets, being amortized
Lease assets - machinery, equipment and vehicles 103,931 73,570 (95,874) - 81,627 Subscription assets 1,155,303 58,798 - 1,214,101 -
Total right to use assets, being amortized 1,259,234 132,368 (95,874) 1,295,728 - Accumulated amortization:

Lease assets - machinery, equipment and vehicles (73,920) (26,806) 95,874 - (4,852) Subscription assets (677,669) (247,835) - (925,504) -
Total accumulated amortization (751,589) (274,641) 95,874 (930,356) - Total right to use assets, being amortized, net 507,645 (142,273) - 365,372 - Total capital assets, net $ 31,233,589 $ (703,280) $ - $ 30,530,309 - $ Depreciation and amortization expense for capital assets was charged to functions as follows:

General government $ 142,339
Public safety 307,810
Public works 1,185,720
Recreation 96,318
Community development 184,200
Total depreciation/amortization expense $ 1,916,387

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
72 Note 6 – Capital Assets (Continued)
B. Business-Type Activities
The following is a summary of changes in capital assets for the business-type activities for the year ended June 30, 2025:

Balance Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated
Construction in progress $ 367,638 $ 3,838,939 $ - $ 4,206,577 - $ Total capital assets, not being depreciated 367,638 3,838,939 - 4,206,577 - Capital assets, being depreciated
Building and improvements 40,857,072 89,033 - 40,946,105 - Equipment 1,229,931 (88,254) - 1,141,677 -
Vehicles 789,200 - - 789,200 -
Infrastructure 7,474,337 - - 7,474,337 -
Total capital assets, being depreciated 50,350,540 89,033 (88,254) 50,351,319 - Accumulated depreciation:

Building and improvements (7,855,030) (781,685) - (8,636,715) - Equipment (924,655) (13,715) 88,254 (850,116) -
Vehicles (465,367) (126,707) - (592,074) -
Infrastructure (5,128,970) (80,850) - (5,209,820) -
Total accumulated depreciation (14,374,022) (1,002,957) 88,254 (15,288,725) - Total capital assets, being depreciated, net 35,976,518 (913,924) - 35,062,594 - Total capital assets, net $ 36,344,156 $ 2,925,015 $ - $ 39,269,171 - $ Depreciation expense for capital assets was charged to the wastewater fund in amount of $1,002,957 for the year ended June 30, 2025.

Note 7 – Long-Term Liabilities
A. Governmental Activities
The following is a summary of changes in the City's long-term liabilities related to governmental activities for the fiscal year ended June 30, 2025:

Balance
July 1, 2024 Balance Due within Due in More
As Restated Additions Retirements June 30, 2025 One Year Than One Year Public Offering:
2006 Pension Obligation Bonds 2,089,509 $ $ (203,321) - $ $ 1,886,188 $ 195,585 $ 1,690,603 Other long-term liabilities:

Leases payable: 30,976 73,570 (27,256) 77,290 14,529 62,761 Subscription payable: 199,399 53,267 (117,571) 135,095 83,160 51,935 Claims payable 21,652 5,549,575 (5,541,205) 30,022 30,022 - Compensated absences * 1,387,723 (30,736) 1,356,987 - 140,688 1,216,299 Total long-term liabilities $ 5,645,676 3,729,259 $ (5,889,353) $ 3,485,582 $ 463,984 $ 3,021,598 $ * The change in the compensated absences liability is presented as a net change.

Classification

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
73 Note 7 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Pension Obligation Bonds
In June 2006 the City authorized the issuance of $16,800,000 of 2006 Series A-1 and A-2 Bonds. The Taxable Pension Obligation Bonds in the aggregate principal of $6,214,630 were issued to finance the City's unfunded accrued actuarial liability with CalPERS. Repayment on the Bonds will be from General Fund revenues Nonvoter-approved debt. Principal payments are due annually in June until 2036. As of June 30, 2025, the principal balance of outstanding bonds was $1,886,188.

The annual debt service requirements (principal and interest) to maturity for the 2006 Pension Obligation Bonds are as follows:

Year Ending
June 30, Principal Interest Total
2026 195,585 $ 454,415 $ 650,000 $
2027 191,228 483,773 675,001
2028 186,704 513,296 700,000
2029 180,806 539,194 720,000
2030 174,958 565,042 740,000
2031-2035 808,705 3,291,295 4,100,000
2036 148,202 751,798 900,000
Total $ 6,598,813 1,886,188 $ 8,485,001 $
Leases payable
The City has entered leases for the right of way leases. The terms of the agreements are 60 months. The calculated interest rate used range from 2% to 6.66%. As of June 30, 2025, the outstanding balance of the leases is $77,290.

Principal and interest payments to maturity at June 30, 2025 are as follows:

Year Ending
June 30, Principal Interest Total
2026 14,529 $ 4,717 $ 19,246 $
2027 15,526 3,721 19,247
2028 16,115 2,655 18,770
2029 15,742 1,598 17,340
2030 15,378 517 15,895
Total $ 13,208 77,290 $ 90,498 $
Subscription payable
The City entered into subscription agreements with various vendors for software. The terms of the agreements are ranging from 24 months to 48 months. The calculated interest rates range from 0.55% to 7.02%. As of June 30, 2025, the capitalized right-to-use assets related to SBITAs were $288,597 and the total subscription liability was $135,095 of which $83,160 is reported as a current liability representing the amount due within the next fiscal year.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
74 Note 7 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Subscription payable (Continued)
The future subscription payments are as follows:

Year Ending
June 30, Principal Interest Total
2026 83,160 $ 9,233 $ 92,393 $
2027 40,707 3,541 44,248
2028 11,228 772 12,000
Total $ 13,546 135,095 $ 148,641 $
B. Business-Type Activities
The following is a summary of changes in the City's long-term liabilities related to business-type activities for the fiscal year ended June 30, 2025:

Balance
July 01, 2024 Balance Due within Due in More
As Restated Additions Retirements June 30, 2025 One Year Than One Year Public offerings:
2016 Wastewater Revenue Refunding Bond 5,633,000 $ - $ (362,000) $ 5,271,000 $ 372,000 $ 4,899,000 $ 2016 Clean Water State Revolving Fund 22,735,634 - (702,678) 22,032,956 714,624 21,318,332 Total Public offerings - 28,368,634 (1,064,678) 27,303,956 1,086,624 26,217,332 Other long-term liabilities:

Compensated absences 278,478 5,395 * 283,873 - 33,732 250,141 Total long-term liabilities $ 28,647,112 $ 5,395 $ (1,064,678) $ 27,587,829 $ 1,120,356 $ 26,467,473 * The change in the compensated absences liability is presented as a net change.

Classification
2016 Wastewater Revenue Refunding Bonds
On June 30, 2016, the City issued an $8,251,000 2016 Wastewater Revenue Refunding Bond (Bank Qualified) to redeem its 2006 Wastewater Revenue Bonds. The bonds bear annual interest at 2.95% which is payable semiannually on March 1 and September 1 of each year through 2036. Principal payments are due annually beginning on September 1, 2016 through 2036. The bond is secured with pledged net wastewater revenues. As of June 30, 2025, the principal balance of outstanding bonds was $5,271,000.

Future debt service payments are as follows:

Year Ending
June 30, Principal Interest Total
2026 372,000 $ 150,008 $ 522,008 $
2027 381,000 138,901 519,901
2028 395,000 127,455 522,455
2029 404,000 115,670 519,670
2030 416,000 103,575 519,575
2031-2035 2,287,000 322,656 2,609,656
2036-2037 1,016,000 30,238 1,046,238
Total $ 988,503 5,271,000 $ 6,259,503 $

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
75 Note 7 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
2016 Clean Water State Revolving Fund
In May 2016, the City entered into a loan agreement with the State of California Water Resources Control Board to provide funding for its 50% share of upgrades to the Pinole-Hercules Wastewater Pollution Control Plant to achieve compliance with Regional Water Quality Board NPDES. Funds are drawn on the agreement as work is completed up to a maximum amount of $26.7 million plus any construction period interest. The loan accrues interest at a rate of 1.7 percent annually. Annual principal payments are due each July 1, commencing July 1, 2020. Final payment is due July 2049. Net revenues, defined as all sewer enterprise fund revenues less operations and maintenance costs (excluding depreciation and amortization expenses), is pledged for future debt service. As of June 30, 2025, the total debt outstanding on the loan is $22,032,956.

Future debt service payments are as follows:

Year Ending
June 30, Principal Interest Total
2026 714,624 $ 374,560 $ 1,089,184 $
2027 726,772 362,412 1,089,184
2028 739,127 350,057 1,089,184
2029 751,693 337,491 1,089,184
2030 764,471 324,713 1,089,184
2031-2035 4,021,772 1,424,147 5,445,919
2036-2040 4,375,445 1,070,475 5,445,920
2041-2045 4,760,220 685,700 5,445,920
2046-2050 5,178,832 267,089 5,445,921
Total $ 5,196,644 22,032,956 $ 27,229,600 $
Note 8 – Interfund Transactions
A. Interfund Transfers to/from Other Funds
Transfers between funds during the fiscal year ended June 30, 2025 were as follows:

Transfers In General Fund1,2 Total
General Fund 3,928,488 $ 3,928,488 $
Nonmajor Governmental Funds 2,455,258 2,455,258
Total 6,383,746 $ $ 6,383,746
Transfers Out
1 Pension Trust and General Reserve and Measure I contribution to the General Fund. 2 General Fund and Measure S Fund support of recreation, PCTV, and certain capital projects: General fund contribution to community development information system.
3 Measure I Fund, General Reserve Fund and Pension Fund as part of General Funds transfer the funds to General Fund to support the City’s operation.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
76 Note 8 – Interfund Transactions (Continued)
B. Due to/from Other Funds
These balances represent short term loans between funds which are expected to be reimbursed within one year.

The composition of due to/from balances at June 30, 2025 consisted of the following:

Due From Due To Description Amount
General Fund Storm Water Fund Deficit cash balance $ 341,623 General Fund Building and Planning Fund Deficit cash balance 2,595,604 General Fund * General Fund Deficit cash balance 2,612,328 General Fund Public Works Capital Projects Funds Deficit cash balance 82,515 General Fund Refuse Management Deficit cash balance 43,520 Total $ 5,675,590
* This is due to and due from between General Fund and Measure S Fund(as part of General Fund).

Note 9 – Defined Benefit Pension Plan
A. General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (“Plan”) administered by the California Public Employees' Retirement System (“CalPERS”). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the safety and miscellaneous pools. The City sponsors five rate plans (two miscellaneous and three safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 (age 52 for Miscellaneous Plan members if membership date is on or after January 1, 2013) with statutorily reduced benefits. All members are eligible for non- duty disability benefits after 5 years of service. The death benefit is one of the following: the Special Death Benefit (Safety only), 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.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
77 Note 9 – Defined Benefit Pension Plan (Continued)
A. General Information about the Pension Plans (Continued) The rate plan provisions and benefits in effect for the year ended June 30, 2025, are summarized as follows:

Hire Date Classic PEPRA
Benefit formula 2% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Retirement age 55 62
Monthly benefits, as a % of eligible compensation 2.0% to 2.5% 2.0% Required employee contribution rates 8.000% 7.750%
Required employer contribution rates 14.060% 7.680%
Final Annual Compensation 1 year 3 year
Hire Date Classic PEPRA Police PEPRA Fire
Benefit formula 3% @ 55 2.7% @ 57 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 55 50 - 57 50 - 57
Monthly benefits, as a % of eligible compensation 3.000% 2.700% 2.700% Required employee contribution rates 9.00% 13.750% 13.750% Required employer contribution rates 24.150% 13.540% 13.540% Final Annual Compensation 1 year 3 years 3 years
Miscellaneous Cost- Sharing Plans
Safety Cost-Sharing Plans
Employees Covered
At June 30, 2023, the valuation date, the following employees were covered by the benefit terms for the Plan:

Miscellaneous Plans Safety Plans
Active employees 74 26
Transferred and terminated employees 97 54
Retired employees and beneficiaries 128 108
Total 299 188
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance an unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contract 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.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
78 Note 9 – Defined Benefit Pension Plan (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions Actuarial Methods and Assumptions Used to Determine Total Pension Liability 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, 2024 total pension liabilities were based on the following actuarial methods and assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Price Inflation Salary Increases
Salary Increases
Mortality Rate Table1
Post Retirement Benefit Increase
Entry Age Actuarial Cost Method

6.90%

2.30%
Varies by Entry Age and Service
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.

Derived using CalPERS’ Membership Data for all Funds. .

The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter.

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

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points. The expected real rates of return by asset class are as follows:

Assumed Asset Real
Asset Class (1) Allocation Return (1),(2)
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.00%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Management study.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
79 Note 9 – Defined Benefit 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 was 6.90% as of the measurement date of June 30, 2024. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members.

Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the plans as of the measurement date of June 30, 2024, calculated using the discount rate of 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90%) or 1 percentage-point higher (7.90%) than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90%)
Miscellaneous Plan $ 27,489,612 $ 18,905,222 $ 11,839,002 Safety Plan 38,585,550 25,838,563 15,413,320
$ 66,075,162 $ 44,743,785 $ 27,252,322
Plan's Aggregate Net Pension Liability/(Asset)
Pension Plan Fiduciary Net Position
Detailed information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report.

Proportionate Share of Net Pension Liability and Pension Expense The following table shows the plan’s proportionate share of the risk pool collective net pension liability over the measurement period:

Plan Total Pension Plan Fiduciary Net Plan Net Pension
Miscellaneous Liability Position Liability/(Asset)
Balance at: 6/30/23 (Valuation date) 60,135,008 $ 40,994,438 $ 19,140,570 $ Balance at: 6/30/24 (Measurement date) 63,616,178 44,710,956 18,905,222 Net Changes during 2023-2024 3,481,170 3,716,518 (235,348) Safety
Balance at: 6/30/23 (Valuation date) 89,674,397 $ 63,368,786 $ 26,305,611 $ Balance at: 6/30/24 (Measurement date) 93,316,809 67,478,246 25,838,563 Net Changes during 2023-2024 3,642,412 4,109,460 (467,048) Increase (Decrease)

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
80 Note 9 – Defined Benefit Pension Plan (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) The City's net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2024, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City's proportionate share of the net pension liability for the Plan as of measurement date June 30, 2023 and 2024 was as follows:

Miscellaneous Safety
Proportion June 30, 2023 0.38278% 0.35192%
Proportion June 30, 2024 0.39088% 0.35440%
Change - Increase (Decrease) 0.00810% 0.00248%
For the year ended June 30, 2025, the City recognized pension expense in the amounts of $3,118,202 and $4,984,934 for the miscellaneous plan and safety plan, respectively, for a total amount of $8,103,136.

As of June 30, 2024, the measurement date, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows of Resources of Resources of Resources of Resources
Pension contributions made subsequent
to measurement date $ 2,448,395 $ - $ 2,712,580 $ -
Difference between expected and actual
experience 1,634,530 (63,778) 2,108,656 (68,561)
Changes in assumptions 485,903 - 636,609 -
Differences difference between projected
and actual investment earnings 1,088,350 - 1,248,918 -
Adjustment due to differences in proportions - (796,237) 312,613 (184,572) Difference between the City's contributions
and proportionate share of contributions 580,832 (23,958) 28,079 (383,460) Total $ 6,238,010 $ (883,973) $ 7,047,455 $ (636,593)
Miscellaneous Plan Safety Plan

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
81 Note 9 – Defined Benefit Pension Plan (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
$2,448,395 and $2,712,580 reported as deferred outflows of resources related to pensions for miscellaneous plan and safety plan, respectively, resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the collective net pension liability in the year ending June 30, 2026. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in the future pension expense as follows:

Year Ended June 30, Miscellaneous Plan Safety Plan
2026 725,981 $ 1,414,094 $
2027 2,507,284 2,809,123
2028 45,342 (97,612)
2029 (372,965) (427,323)
2030 - -
Thereafter - -
$ 3,698,282 2,905,642 $
Deferred Outflows/(Inflows) of Resources
Note 10 – Other Post-Employment Benefits (OPEB)
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

Employer contributions made
subsequent to the measurement date 1,656,982 $ 184,109 $ 1,841,091 $ Difference between expected and actual experience 2,039,844 226,649 2,266,493 Changes in assumptions 1,264,780 140,531 1,405,311
Total deferred outflows of resources $ 551,289 4,961,606 $ 5,512,895 $ Total OPEB liability:

Total OPEB liability, due within one year 1,483,096 $ 164,789 $ 1,647,885 $ Total OPEB liability, due in more than one year 29,895,636 3,321,737 33,217,373 Total OPEB liability $ 3,486,526 31,378,732 $ 34,865,258 $ Deferred inflows of resources:

Difference between expected and actual experience 1,369,486 $ 152,165 $ 1,521,651 $ Changes in assumptions 8,619,583 957,732 9,577,315
Total deferred inflows of resources $ 1,109,897 9,989,069 $ 11,098,966 $ OPEB Expense $ 100,377 903,392 $ 1,003,769 $
B. Description of the Plan
The City sponsors and administers a single-employer health care plan for its employees. The plan includes healthcare coverage to long-service retirees. At retirement, City employees can elect Blue Shield, Kaiser, PERS Care, or PERS Choice medical coverage through the City at the City's expense. As the City's OPEB benefits are administered by City personnel, no separate financial statements are issued. There are no assets accumulated in a GASB-compliant trust.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
82 Note 10 – Other Post-Employment Benefits (OPEB) (Continued) C. Employees Covered
As of the June 30, 2024, measurement date (June 30, 2023 valuation date), the following current and former employees were covered by the benefit terms under the Plan:

Active employees 102
Retired employees and beneficiaries 104
Total 206
D. Contributions
Employees hired before July 1, 2010 receive a City contribution toward their retiree health premium equal to that provided to current active employees. Employees shall be offered the option to opt into the vesting program as soon after the program implementation as allowed per CalPERS regulations.

Employees hired on or after July 1, 2010 receive a City contribution toward their retiree health premium in an amount as described by Government Code Section 22893 (the PERS vesting schedule). Government Code Section 22893 currently reads that the percentage of employer contribution payable for postretirement health benefits for an employee of a contracting agency subject to this section shall, except as provided in subdivision (b) be based on the member's completed years of credited state service at retirement as shown in the following table:

Credited Years of
Service
Percentage of
Employer
Contributions
10 50
11 55
12 60
13 65
14 70
15 75
16 80
17 85
18 90
19 95
20 or more 100

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
83 Note 10 – Other Post-Employment Benefits (OPEB) (Continued) E. Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2024, and the total OPEB liability was determined by an actuarial valuation as of June 30, 2023. The total OPEB liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement date.

Measurement Date June 30, 2023 June 30, 2024
Discount Rate 3.86% 4.09%
Inflation 2.30% 2.30%
Healthcare Trend Rate
Pre-Medicare 7.40% 6.80% *
Medicare 4.20% 4.17% *
Salary Increase 2.80% 2.80% *
Mortality rate
* Trending down to 4.14% over 51 years. Applies to calendar years. **Additional merit-based increases based on CalPERS merit salary increase tables.

Based on CalPERS Tables
F. Discount Rate
The discount rate used to measure the total OPEB liability increased to 4.09% from 3.86%. The City’s OPEB Plan is an unfunded plan, therefore the discount rate was set to the rate of tax-exempt, high quality 20-year municipal bonds, as of the valuation date.

G. Changes in the Total OPEB Liability
Total OPEB
Liability
Balance at June 30, 2023 (Measurement Date) $ 34,976,356 Changes Recognized for the Measurement Period:

Service Cost 1,223,695
Interest on the total OPEB liability 1,363,994
Difference between expected and actual experience 74,705 Changes of assumptions (1,046,662)
Implicit Subsidy Credit (383,474)
Benefit payments (1,343,356)
Net Changes during July 1, 2023 to June 30, 2024 (111,098) Balance at June 30, 2024 (Measurement Date) $ 34,865,258 Sensitivity of the Liability to Changes in the Discount Rate and Healthcare Cost Trend Rate – Sensitivity of the total OPEB liability to changes in the discount rate. The total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (3.09%) or one percentage point higher (5.09%) follows:

Discount Rate - 1% Current Discount Discount Rate + 1%
(3.09%) Rate (4.09%) (5.09%)
$ 34,865,258 39,822,238 $ 30,853,682 $
Plan's Total OPEB Liability

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
84 Note 10 – Other Post-Employment Benefits (OPEB) (Continued) G. Changes in the Total OPEB Liability (Continued)
Sensitivity of the Total OPEB liability to Changes in the Healthcare Cost Trend Rate – The healthcare trend for this valuation started at 6.80% and decreased to 4.14% over 51 years. The total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower (5.80%) or one percentage point higher (7.80%) than current healthcare cost trend rates follows:

Healthcare Cost
-1% Trend Rates 1%
(5.80%) (6.80%) (7.80%)
$ 34,865,258 30,259,564 $ 40,621,655 $
Plan's Total OPEB Liability
H. Expected Average Remaining Service Lives (EARSL)
The effects on the total OPEB liability of (1) changes of economic and demographic assumptions or of other inputs and (2) differences between expected and actual experience are required to be included in the OPEB Expense in a systematic and rational manner over a closed period equal to the average of the expected remaining service lives of all employees that are provided with benefits through the OPEB plan (active employees and inactive employees), beginning in the current period. The expected average remaining service lives (EARSL) for the current period follows. Note, however, that for calculation purposes, we use 1 when calculating amortizations if the EARSL is less than 1 year.

EARSL: 5.9 years.

I. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2025, the City recognized OPEB expense of $1,003,769. For the fiscal year ended June 30, 2025, the City reported deferred outflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Employer contributions made
subsequent to the measurement date $ 1,841,091 $ -
Difference between expected and actual experience 2,266,493 (1,521,651) Changes of assumptions 1,405,311 (9,577,315)
Total $ (11,098,966) 5,512,895 $

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
85 Note 10 – Other Post-Employment Benefits (OPEB) (Continued) I. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB (Continued) The $1,841,091 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2024 measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ending June 30, 2026. Other amounts reported as deferred inflows of resources related to OPEB will be recognized as expense as follows:

Fiscal Year Deferred Outflows/
Ended June 30 (Inflows) of Resources
2026 (1,537,736) $
2027 (2,943,047)
2028 (2,222,951)
2029 (575,166)
2030 (148,262)
Thereafter -
$ (7,427,162)
Note 11 – Deferred Compensation Plan
A. 457 Plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The Plan is available to full-time employees. The Internal Revenue Service regulations allow an employer to designate a 457(b) Deferred Compensation Plan as an alternative to social security. The plan permits employees to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) held in trust by Mission Square, the City’s third-party administrator, for the exclusive benefit of the plan participants and their beneficiaries as prescribed by Internal Revenue Code Section 457(g). Accordingly, these assets have been excluded from the City’s Annual Comprehensive Financial Report.

In the year 2021, the City evaluated the requirements of GASB Statement No. 84, Fiduciary Activities and GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans and determined that plan didn’t meet the criteria to be reported as a fiduciary activity, as required by the above mentioned GASB Statements. Moreover, the plan is classified as other employee benefits for financial reporting purposes.

As of June 30, 2025, the amount held by the Trustee for the City employees is $9,956,526.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
86 Note 12 – Fund Balance
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions provides more clearly defined fund balance categories to make the nature and extent of the constraints placed on a government’s fund balances more transparent.

The accounting policies of the City consider restricted fund balance to have been spent first when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts, and unassigned amounts.

The City classifies fund balances, as shown on the Balance Sheet – Governmental Funds, as follows as of June 30, 2025:

Housing Building Non-major
General Programs & Planning Governmental
Fund Fund Fund Funds Total
Nonspendable
Prepaid items $ 61,529 $ - $ 320,552 - $ $ 382,081
Inventory 18,227 - - - 18,227
Total nonspendable 79,756 - 320,552 - 400,308
Restricted
Housing Redevelopment 8,251,073 - - 8,251,073 -
Real estate maintenance 116,210 - - 116,210 -
Public safety - - 796,616 - 796,616
Growth impact - - 3,462,184 - 3,462,184
Gas Tax - - 2,188,100 - 2,188,100
Parkland Dedication - - - 122 122
Measure C - - 2,461,871 - 2,461,871
Community development - - - 7,635 7,635
Solid Waste - - 3,306,892 - 3,306,892
CASP Certification - - - 56,831 56,831
Rate Stabilization - - 227,215 - 227,215
Pension Fund 12,442,949 - - 12,442,949 -
Total restricted 12,559,159 8,251,073 12,507,466 - 33,317,698 Committed
General reserve 9,907,357 - - 9,907,357 -
Equipment reserve 229,348 - - 229,348 -
Emergency reserve 100,000 - - 100,000 -
Total committed 10,236,705 - - 10,236,705 -
Assigned
Capital projects - - 4,455,979 - 4,455,979
Total assigned - - 4,455,979 - 4,455,979
Unassigned (deficit) 5,619,093 (2,545,964) - (391,272) 2,681,857 Total fund balances $ 28,494,713 $ 8,251,073 $ (2,545,964) $ 16,892,725 $ 51,092,547

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
87 Note 13 – Risk Management
The City manages risk of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters by participating in the public entity risk pools described below and by retaining certain risks.

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

Risk Coverage - The City is a member of the Municipal Pooling Authority of Northern California (MPA). MPA provides coverage against the following types of loss risks under terms of joint-powers agreement with the City and several other cities and governmental agencies as follows:

Type of Coverage (Deductible) Coverage Limits
Liability ($25,000) including errors and omissions for Public Officials $ 34,500,000 All Risk Fire and Property ($25,000) 1,000,000,000
Workers' Compensation (no deductible) 50,000,000
Vehicle Physical Damage ($3,000 for police, $2,000 all others) 250,000 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 City'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.

During the fiscal year ended June 30, 2025, the City contributed $1,975,333 for coverage.

Financial statements may be obtained from Municipal Pooling Authority of Northern California, 1911 San Miguel Drive, Suite 200, Walnut Creek, CA 94596.

Note 14 – Stewardship, Compliance, and Accountability
A. Deficit Fund Balances/Net Position
As of June 30, 2025, the following funds had a fund deficit:

Fund Fund Type Deficit
Building & Planning Fund Major Fund $ (2,545,964)
Non-major governmental funds:

Storm Water Fund Special Revenue Fund (333,733)
Refuse Management Fund Special Revenue Fund (33,477)
Cable TV Fund Special Revenue Fund (682)
Recreation Fund Special Revenue Fund (18,380)

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
88 Note 14 – Stewardship, Compliance, and Accountability (Continued) B. Expenditures in Excess of Appropriations
The following funds had expenditures in excess of appropriations:

Excess Expenditures
Fund Appropriations Expenditures over Appropriations
Major Governmental Funds:

General Fund
General administration 4,743,497 $ 5,565,434 $ (821,937) $ Debt Service - Principal 203,321 348,148 (144,827)
Debt Service - Interest and fiscal charges 432,786 441,395 (8,609) Nonmajor Governmental Funds:

Gas Tax Special Revenue Fund
Public works 572,107 594,441 (22,334)
Storm Water Special Revenue Fund
Public works 379,829 442,586 (62,757)
Police Special Revenue Fund
Public safety 599,587 612,976 (13,389)
Recreation Special Revenue Fund
General administration 7,500 8,049 (549)
Solid Waste Special Revenue Fund
Public works 173,666 241,110 (67,444)
CASP Certification & Training Special Revenue Fund
Community development - 398 (398)
Note 15 – Successor Agency Private Purpose Trust for Assets of Former Redevelopment Agency The Pinole Redevelopment Agency (the "former RDA") was formed in 1972 to finance redevelopment projects in the Agency of Pinole pursuant to the State of California Health and Safety Code, Section 3300. On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 that provided for the dissolution of all redevelopment agencies in the State of California as of February 1, 2012, at which time the City of Pinole elected to take over as the Successor Agency (the "Agency").

The asset and liabilities of the former RDA were transferred to the Successor Agency on February 1, 2012 as a result of the dissolution. The Successor Agency acts in a fiduciary capacity to wind down affairs of the former RDA which includes disposing of the assets and liabilities, and its activities are reported in the fiduciary private-purpose trust fund.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
89 Note 15 – Successor Agency Private Purpose Trust for Assets of Former Redevelopment Agency (Continued) A. Capital Assets
Capital asset activity for the fiscal year ended June 30, 2025 was as follows:

Balance Balance
July 1, 2024 Additions June 30, 2025
Capital assets, not being depreciated
Land $ 2,429,793 $ 2,429,793 - $
Total capital assets, not being depreciated 2,429,793 2,429,793 - Capital assets, being depreciated
Building and improvements 9,193,612 9,193,612 -
Infrastructure 3,617,484 3,617,484 -
Total capital assets, being depreciated 12,811,096 12,811,096 - Accumulated depreciation:

Building and improvements (3,897,772) (188,954) (4,086,726) Infrastructure (1,950,148) (66,716) (2,016,864)
Total accumulated depreciation (5,847,920) (255,670) (6,103,590) Total capital assets, being depreciated, net 6,963,176 (255,670) 6,707,506 Total capital assets, net $ 9,392,969 $ (255,670) $ 9,137,299 Note 16 – Contingencies and Commitments
The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney there is no pending litigation which is likely to have a material adverse effect on the financial position of the City.

Grant Awards – The City participates in certain Federal and State assisted grant programs. These programs are subject to program compliance audits by the grantors or their representatives. Any liability for reimbursement which may arise as the result of these audits is not believed to be material.

Note 17 – Net Investment in Capital Assets
Net investment in capital assets at June 30, 2025 consisted of the following:

Governmental Business-Type
Activities Activities
Net investment in capital assets:

Capital assets, nondepreciable 8,047,433 $ 4,206,577 $
Capital assets, depreciable/amortizable, net 22,482,876 35,062,594 Retention payable (18,580) (162,439)
Long-term debt:

Leases payable (77,290) -
Subscription payable (135,095) -
2016 Wastewater Revenue Refunding Bond - (5,271,000)
2016 Clean Water State Revolving Fund - (22,032,956)
Total net investment in capital assets 30,299,344 $ 11,802,776 $

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
90 Note 18 – Joint Powers Agreements
The City is a member of the joint powers agency described below. This agency is governed by a board, which controls their operation, including selection of management and approval of operating budgets, independent of influence by member municipalities beyond their representation on the board.

A. Pinole/Hercules Wastewater Treatment Plant
On January 23, 2001, the cities of Pinole and Hercules entered into a joint powers agreement for the operation and ownership of the Pinole/Hercules Wastewater Treatment Plant (Plant). The City of Hercules retains responsibility for the operation and maintenance of its wastewater collection system. The City of Hercules has an undivided fifty percent (50%) ownership interest in the Plant. The City of Pinole has the right and responsibility to manage and operate the Plant. Also, the City of Pinole maintains the records and accounts for all the transactions.

Note 19 – Restatement of Beginning Net Position and Fund Balance During fiscal year 2025, restatements of beginning net position are as follows:

June 30,2024 Change in Accounting June 30, 2024
As Previously Reported Principle (a) As Restated
Government-Wide
Governmental Activities 16,873,089 $ $ (541,915) $ 16,331,174 Business-Type Activities 22,048,064 (63,308) 21,984,756 Total primary government 38,921,153 (605,223) 38,315,930 Enterprise Fund:

Water Utility Enterprise Fund $ 22,048,064 $ (63,308) $ 21,984,756 Total Enterprise Funds $ 22,048,064 $ (63,308) $ 21,984,756 Implementation of GASB Statement No. 101, Compensated Absences Effective for the fiscal year ended June 30, 2025, the City implemented GASB Statement No. 101, Compensated Absences. This statement establishes accounting and financial reporting standards for compensated absences, including vacation, sick leave, and other paid time off. The implementation of GASB 101 resulted in a change in accounting principle, and prior year amounts have been restated accordingly.

Under GASB 101, a liability must be recognized for leave that is attributable to services already rendered, accumulates and carries forward to future periods, and is more likely than not to be used or paid. This represents a shift from previous guidance, particularly in how likelihood and eligibility are assessed. The effect of the restatement is as shown above.

REQUIRED SUPPLEMENTARY INFORMATION
91

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92

1 Annually, the City Manager submits to the City Council a proposed operating budget for the following fiscal year. This budget includes proposed expenditures, by fund and department, and the revenues expected to finance them. Public hearings are conducted to obtain taxpayer comments and the budget is legally enacted through passage of a resolution. Any revisions which alter total expenditures of any fund must be approved by the City Council.
2 Budgets are adopted on a basis consistent with generally accepted accounting principles. Budget to actual comparisons in this report use this budgetary basis. Unexpended appropriations lapse at year-end and must be re-appropriated in the following year. 3 Budgeted amounts are as originally adopted, or as amended by the City Council. 4 Budgeted appropriations for the various governmental funds become effective each July 1. The City Council may amend the budget during the fiscal year. The legal level of budgetary control has been established at function level. Appropriations generally lapse at the end of the fiscal year to the extent they have not been expended.

The City followed these procedures in establishing the budgetary data reflected in the General-Purpose Financial Statements:

City of Pinole
Required Supplementary Information
Notes to the Budgetary Comparison Schedules
For the Year Ended June 30, 2025
Budget and Budgetary Accounting
93

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94

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Taxes and assessments 22,328,775 $ 22,729,495 $ 23,084,237 $ 354,742 $ Intergovernmental revenues 142,907 176,368 196,826 20,458 Investment earnings 1,209,000 1,209,000 1,740,629 531,629 Rents and ground leases 118,266 118,266 93,218 (25,048) Charges for services 2,167,536 2,167,536 2,427,448 259,912 Fines, forfeitures and penalties 15,550 26,050 34,535 8,485 Other revenues 16,600 16,600 46,798 30,198
Total revenues 26,443,315 25,998,634 27,623,691 1,180,376 EXPENDITURES:

Current:

General administration 4,670,349 4,743,497 5,565,434 (821,937) Public safety 22,071,498 22,068,070 18,427,142 3,640,928 Public works 2,434,766 2,575,226 2,436,095 139,131
Recreation 426,865 435,699 408,986 26,713
Community development 585,788 600,338 556,232 44,106
Capital outlay 5,109,816 4,980,771 957,330 4,023,441
Debt Service:

Principal 203,321 203,321 348,148 (144,827)
Interest and fiscal charges 432,786 432,786 441,395 (8,609) Total expenditures 36,039,708 35,935,189 29,140,762 6,898,946 Excess (deficiency) of revenues over expenditures (9,596,393) (9,936,555) (1,517,071) 8,079,322 OTHER FINANCING SOURCES (USES):

Proceeds from sale of asset 1,000 1,000 1,327 327
Issuance of leases and subscription liabilities - - 126,837 126,837 Transfers in 3,418,790 4,018,790 3,928,488 (90,302)
Transfers out (4,830,090) (6,474,048) (6,383,746) 90,302 Total other financing sources (uses) (2,454,258) (1,410,300) (2,327,094) 127,164 NET CHANGES IN FUND BALANCE $ (11,346,855) $ (12,050,651) (3,844,165) $ 8,206,486 FUND BALANCE:

Beginning of year 32,338,878
End of year $ 28,494,713
City of Pinole
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual General Fund
For the Year Ended June 30, 2025
Budgeted Amounts
95

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment earnings 50,000 $ 50,000 $ 176,892 $ 126,892 $ Other revenues 5,000 5,000 - (5,000)
Total revenues 55,000 55,000 176,892 121,892
EXPENDITURES:

Current:

Community development 323,243 323,243 193,590 129,653
Total expenditures 323,243 323,243 193,590 129,653
NET CHANGES IN FUND BALANCE $ (268,243) (268,243) $ (16,698) 251,545 $ FUND BALANCE:

Beginning of year 8,267,771
End of year $ 8,251,073
City of Pinole
Budgetary Comparison Schedule
Housing Programs Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
96

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Taxes and assessments 476,916 $ 476,916 $ 488,477 $ 11,561 $ Intergovernmental revenues 40,000 40,000 391,360 351,360 Investment earnings 7,000 7,000 500 (6,500)
Charges for services 865,610 831,110 769,169 (61,941)
Fines, forfeitures and penalties 20,000 20,000 41,652 21,652 Other revenues 6,000 6,000 - (6,000)
Total revenues 1,381,026 1,415,526 1,691,158 310,132
EXPENDITURES:

Current:

Community development 2,037,558 2,141,158 2,010,442 130,716 Capital outlay 2,000 2,000 - 2,000 - Total expenditures 2,143,158 2,039,558 2,010,442 132,716 Excess (deficiency) of revenues over expenditures (762,132) (624,032) (319,284) 442,848 OTHER FINANCING SOURCES (USES):

Transfers in 67,000 67,000 - (67,000)
Total other financing sources (uses) 67,000 67,000 - (67,000) NET CHANGE IN FUND BALANCE $ (695,132) (557,032) $ (319,284) 375,848 $ FUND BALANCE (DEFICIT):

Beginning of year (2,226,680)
End of year $ (2,545,964)
City of Pinole
Budgetary Comparison Schedule
Building and Planning Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
97

Measurement period, year ended 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Plan's proportion of the net pension liability 0.2642100% 0.2649900% 0.2655100% 0.2659200% 0.2713000% Plan's proportionate share of
the net pension liability 18,905,222 $ 19,140,570 $ 18,093,979 $ 10,920,678 $ 16,004,315 $ Plan's covered payroll 7,862,831 $ 7,462,350 $ 5,876,649 $ 5,330,477 $ 4,879,830 $ Plan's proportionate share of
the net pension liability as a percentage
of covered-employee payroll 240.44% 256.50% 307.90% 211.80% 334.60% Plan's fiduciary net position 44,710,956 $ 40,994,438 $ 38,857,645 $ 42,169,171 $ 35,326,833 $ Plan's fiduciary net position as a percentage
of the total pension liability 70.28% 68.17% 68.23% 79.43% 68.82% Miscellaneous Plan
City of Pinole
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2025
Cost-Sharing Multiple Employer Miscellaneous Plan
98

Measurement period, year ended 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Plan's proportion of the net pension liability 0.2715300% 0.2770700% 0.2846100% 0.2849400% 0.2990880% Plan's proportionate share of
the net pension liability 15,121,848 $ 14,125,442 $ 14,317,779 $ 12,368,264 $ 10,147,708 $ Plan's covered payroll 4,196,794 $ 4,073,566 $ 4,081,438 $ 3,473,271 $ 3,762,767 $ Plan's proportionate share of
the net pension liability as a percentage
of covered-employee payroll 348.11% 339.74% 350.80% 356.10% 269.69% Plan's fiduciary net position 33,710,618 $ 32,674,876 $ 31,266,917 $ 28,655,555 $ 30,646,409 $ Plan's fiduciary net position as a percentage
of the total pension liability 69.03% 69.82% 68.59% 69.85% 75.12% City of Pinole
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios (Continued) Miscellaneous Plan
Cost-Sharing Multiple Employer Miscellaneous Plan
For the Year Ended June 30, 2025
99

Measurement period, year ended 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Plan's proportion of the net pension liability 0.298680% 0.301440% 0.303110% 0.297990% 0.304450% Plan's proportionate share of
the net pension liability 25,838,563 $ 26,305,611 $ 24,214,798 $ 12,714,382 $ 20,693,050 $ Plan's covered payroll 3,652,162 $ 3,473,176 $ 4,754,358 $ 4,359,543 $ 4,197,326 $ Plan's proportionate share of
the net pension liability as a percentage
of covered-employee payroll 707.49% 555.32% 509.32% 129.11% 241.00% Plan's fiduciary net position 67,478,246 $ 63,368,786 $ 60,886,598 $ 65,389,834 $ 54,757,252 $ Plan's fiduciary net position as a percentage
of the total pension liability 72.31% 70.67% 71.55% 83.72% 72.57% Safety Plan
City of Pinole
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios (Continued) Cost-Sharing Multiple Employer Safety Plan
For the Year Ended June 30, 2025
100

Measurement period, year ended 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Plan's proportion of the net pension liability 0.311100% 0.308530% 0.310790% 0.315420% 0.318363% Plan's proportionate share of
the net pension liability 18,793,747 $ 17,290,615 $ 17,051,864 $ 14,755,488 $ 11,004,090 $ Plan's covered payroll 4,144,060 $ 5,496,056 $ 3,655,556 $ 3,827,739 $ 3,931,175 $ Plan's proportionate share of
the net pension liability as a percentage
of covered-employee payroll 224.74% 213.58% 219.99% 196.37% 161.75% Plan's fiduciary net position 54,136,140 $ 50,751,672 $ 48,664,063 $ 45,052,163 $ 46,720,579 $ Plan's fiduciary net position as a percentage
of the total pension liability 74.23% 74.59% 74.05% 75.33% 80.94% Cost-Sharing Multiple Employer Safety Plan
City of Pinole
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2025
Safety Plan
101

Fiscal Year: 2024-25 2023-24 2022-23 2021-22 2020-21
Contractually determined
contribution (actuarially determined) 2,448,395 $ 2,209,061 $ 2,148,835 $ 1,888,941 $ 1,689,822 $ Contributions in relation to the
actuarially determined contributions (2,448,395) (2,209,061) (2,148,835) (1,888,941) (1,689,822) Contribution deficiency (excess) $ - - $ - $ - $ - $
Covered payroll 8,082,990 $ 7,862,831 $ 7,462,350 $ 5,876,649 $ 5,330,477 $ Contributions as a percentage of
covered payroll 30.29% 28.09% 28.80% 32.64% 32.77%
Notes to Schedule
Methods and assumptions used to determine contribution rates:

Methods and assumptions used to determine contribution rates: Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortization method/period
Asset valuation method
Inflation
Salary increases
Payroll growth 2.80%
Investment rate of return
Retirement age
Mortality
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2023-24 were derived from the June 30, 2021 funding valuation report.

Fair Value of Assets. For details, see June 30, 2021, funding valuation report.

City of Pinole
Required Supplementary Information
Schedule of Contributions - Pensions
For the Year Ended June 30, 2025
Miscellaneous Plan
Cost-Sharing Multiple Employer Miscellaneous Plan
Varies by entry age and service
Entry Age Actuarial Cost Method
For details, see June 30, 2021, funding valuation report.

2.30%
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.

The probabilities of retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

6.90% Net of pension plan investment and administrative expenses; includes Inflation. 102

Fiscal Year: 2019-20 2018-19 2017-18 2016-17 2015-16
Contractually determined
contribution (actuarially determined) 1,503,913 $ 1,302,704 $ 1,058,603 $ 941,653 $ 853,299 $ Contributions in relation to the
actuarially determined contributions (1,503,913) (1,302,704) (1,058,603) (941,653) (853,299) Contribution deficiency (excess) $ - - $ - $ - $ - $
Covered payroll 4,879,830 $ 4,196,794 $ 4,073,566 $ 4,081,438 $ 3,473,271 $ Contributions as a percentage of
covered payroll 31.45% 29.99% 25.99% 23.07% 24.57%
Miscellaneous Plan
City of Pinole
Required Supplementary Information
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2025
Cost-Sharing Multiple Employer Miscellaneous Plan
103

Fiscal Year: 2024-25 2023-24 2022-23 2021-22 2020-21
Contractually determined
contribution (actuarially determined) 2,712,580 $ 2,401,947 $ 2,584,516 $ 2,386,694 $ 2,099,289 $ Contributions in relation to the
actuarially determined contributions (2,712,580) (2,401,947) (2,584,516) (2,386,694) (2,099,289) Contribution deficiency (excess) $ - - $ - $ - $ - $
Covered payroll 3,754,423 $ 3,652,162 $ 3,473,176 $ 4,754,358 $ 4,359,543 $ Contributions as a percentage of
covered payroll 72.25% 65.77% 74.41% 50.20% 48.15%
Notes to Schedule
Methods and assumptions used to determine contribution rates:

Methods and assumptions used to determine contribution rates: Methods and assumptions used to determine contribution rates:

Actuarial cost method
Entry Age Actuarial
Cost Method
Amortization method/period
Asset valuation method
Inflation
Salary increases
Payroll growth 2.80%
Investment rate of return
Retirement age
Mortality
Safety Plan
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.

Varies by entry age and service
For details, see June 30, 2021, funding valuation report.

2.30%
The probabilities of retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

6.90% Net of pension plan investment and administrative expenses; includes Inflation.

The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2023-24 were derived from the June 30, 2021 funding valuation report.

Fair Value of Assets. For details, see June 30, 2021, funding valuation report.

City of Pinole
Required Supplementary Information
Schedule of Contributions - Pensions (Continued)
Cost-Sharing Multiple Employer Safety Plan
For the Year Ended June 30, 2025
104

Fiscal Year: 2019-20 2018-19 2017-18 2016-17 2015-16
Contractually determined
contribution (actuarially determined) 1,863,419 $ 1,584,004 $ 1,239,511 $ 1,125,572 $ 1,027,403 $ Contributions in relation to the
actuarially determined contributions (1,863,419) (1,584,004) (1,239,511) (1,125,572) (1,027,403) Contribution deficiency (excess) $ - - $ - $ - $ - $
Covered payroll 4,197,326 $ 4,144,060 $ 5,496,056 $ 3,655,556 $ 3,827,739 $ Contributions as a percentage of
covered payroll 44.40% 38.22% 22.55% 30.79% 26.84%
For the Year Ended June 30, 2025
Safety Plan
City of Pinole
Required Supplementary Information
Schedule of Contributions - Pensions (Continued)
Cost-Sharing Multiple Employer Safety Plan
105

Measurement period, year ending: 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Total OPEB liability
Service cost 1,223,695 $ 1,435,271 $ 1,960,338 $ 2,241,980 $ 1,615,428 $ Interest 1,363,994 1,311,164 984,103 1,063,633 1,308,423 Changes of benefit terms - - - - -
Differences between expected and actual
experience 3,334,938 74,705 (343,035) (4,050,407) -
Changes of assumptions (1,046,662) (6,025,520) (9,270,071) (270,144) 8,431,861 Benefit payments, including
refunds of member contributions (1,343,356) (1,221,107) (1,283,772) (1,258,835) (1,223,092) Implicit Subsidy Credit (383,474) (144,415) - - -
Change in total OPEB liability (1,309,669) (111,098) (7,952,437) (2,273,773) 10,132,620 Total OPEB liability - beginning 36,286,025 34,976,356 44,238,462 46,512,235 36,379,615 Total OPEB liability - ending (a) $ 34,976,356 34,865,258 $ 36,286,025 $ 44,238,462 $ 46,512,235 $ Covered-employee payroll $ 13,547,474 13,203,606 $ 11,487,256 $ 10,998,667 $ 10,708,319 $ Plan net OPEB liability as a
percentage of covered-employee payroll 264.06% 258.18% 315.88% 402.22% 434.36% Notes to Schedule
No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. 1 Information only presented from the implementation year Change of assumptions:

June 30, 2020, discount rate was updated based on municipal bond rate and ACA Excise Tax removed June 30, 2021, discount rate has decreased from 2.21% to2.16% based on updated municipal bond index June 30, 2022, discount rate has increased from 2.16% to 3.54% based on updated municipal bond index June 30, 2023, discount rate has increased from 3.54% to 3.86% based on updated municipal bond index June 30, 2024, discount rate has increased from 3.86% to 4.09% based on updated municipal bond index City of Pinole
Required Supplementary Information
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios For the Year Ended June 30, 2025
106

Measurement period, year ending: 6/30/2019 6/30/2018 1
Total OPEB liability
Service cost $ 1,274,335 1,227,488 $
Interest 1,298,734 1,391,794
Changes of benefit terms - -
Differences between expected and actual
experience - (2,333,030)
Changes of assumptions (1,655,481) 1,956,937
Benefit payments, including
refunds of member contributions (1,199,486) (1,169,676) Implicit Subsidy Credit - -
Change in total OPEB liability (252,088) 1,043,703
Total OPEB liability - beginning 35,588,000 35,335,912
Total OPEB liability - ending (a) $ 35,335,912 36,379,615 $ Covered-employee payroll $ 9,399,404 10,199,027 $
Plan net OPEB liability as a
percentage of covered-employee payroll 356.70% 375.94%
Notes to Schedule
No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. 1 Information only presented from the implementation year Change of assumptions:

June 30, 2020, discount rate was updated based on municipal bond rate and ACA Excise Tax removed June 30, 2021, discount rate has decreased from 2.21% to2.16% based on updated municipal bond index June 30, 2022, discount rate has increased from 2.16% to 3.54% based on updated municipal bond index June 30, 2023, discount rate has increased from 3.54% to 3.86% based on updated municipal bond index June 30, 2024, discount rate has increased from 3.86% to 4.09% based on updated municipal bond index City of Pinole
Required Supplementary Information
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios (Continued) For the Year Ended June 30, 2025
107

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108

SUPPLEMENTARY INFORMATION
109

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110

Capital Projects Funds:

Public Works Capital Projects Fund - This fund is used to account for financial resources that are restricted, committed, or assigned for expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets.

Special Revenue Funds:

Growth Impact Fund - This fund is used to account for development fees collected to mitigate the impact of new development. Specifically, it provides for the expansion, design, construction, or upgrade to facilities, roadways, and equipment. The City collects impact fees for police, fire protection, municipal, community, water, roadways and drainage.

Gas Tax Fund - This fund is used to account for the receipt and subsequent expenditure of the City’s share of the State levied tax on gasoline and other vehicle fuels.

Parkland Dedication Fund - This fund is used to account for development fees collected to mitigate the impact of new development on parks and open space.

Measure C Fund - This fund is used to account for special override sales tax revenues collected by the Contra Costa Transportation Authority (CCTA) and reapportioned to the cities for local street projects.

Storm Water Fund - This fund is used to account for moneys received from the Contra Costa County Flood Control and Water Conservation District for use in funding the National Pollutant Discharge Elimination System Program and Drainage System Maintenance activities.

Refuse Management Fund - This fund is used to account for funds received from Republic Services, Inc. from a surcharge it assesses on customer rates for solid waste services.

Adjudicated Asset Seizure Fund - This fund is used to account for receipt and subsequent expenditure of various asset seizure moneys.

Police Fund - This fund is used to account for various grants received to augment law enforcement services and traffic safety.

Cable TV Fund - This fund is used to account for revenues and expenditures related to the operation of the Pinole Community Television (PCTV). Revenue is received from video production charges to other cities, Public, Educational, and Governmental (PEG) access fees and the General Fund. PEG fees are designated for equipment purchases.

Recreation Fund - This fund is used to account for program fees, fundraising proceeds, and donations for Recreation programs. Resources are used towards staffing and maintenance costs to operate the programs.

Rate Stabilization Fund - This fund is used to account for funds received from Republic Services, Inc. from a surcharge it assesses on customer rates for solid waste services. The portion in of revenue allocated to this fund is set aside as a rate stabilization fund.

Development Services Fund - This fund is used to account for developer deposits.

Solid Waste Fund - This fund is used to account for funds received from Republic Services, Inc. from a surcharge it assesses on customer rates for solid waste services. These funds are set aside for future solid waste capital projects and for a rate stabilization fund. This fund accounts for the capital projects portion.

Non-Major Governmental Funds
111

Special Revenue Funds (Continued):

CASP Certification and Training Fund - This fund is used to account for moneys collected from business license applicants. The funds will be used for increased certified access specialists (CASp) training and certification and to facilitate compliance with construction-related accessibility requirements.

Non-Major Governmental Funds (Continued)
112

Capital
Projects Fund
Public Works
Capital Growth Gas Parkland
Projects Impact Tax Dedication Measure C
ASSETS
Cash and investments 4,590,288 $ 3,500,843 $ 2,083,857 $ 122 $ 2,443,871 $ Accounts receivable - - 136,368 - -
Lease receivable - - - - -
Interest receivable 403 25,517 14,459 - 18,000
Prepaid items and supplies - - - - 315,552
Total assets $ 4,590,691 $ 3,526,360 $ 2,234,684 $ 122 $ 2,777,423

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 52,197 64,176 46,584 - -
Accrued liabilities - - - - -
Unearned revenue - - - - -
Deposits payable - - - - -
Due to other funds 82,515 - - - -
Total liabilities 134,712 64,176 46,584 - -
Deferred inflows of resources:

Unavailable revenue - - - - -
Total deferred inflows
of resources - - - - -
Fund Balances (Deficits):

Nonspendable - - - 315,552 -
Restricted 3,462,184 - 2,188,100 122 2,461,871
Assigned 4,455,979 - - - -
Unassigned (deficit) - - - - -
Total fund balances (deficits) 4,455,979 3,462,184 2,188,100 122 2,777,423 Total liabilities, deferred
inflows of resources,
and fund balances $ 4,590,691 $ 3,526,360 $ 2,234,684 $ 122 $ 2,777,423 (Continued)
June 30, 2025
Non-Major Governmental Funds
City of Pinole
Combining Balance Sheet
Special Revenue Funds
113

Adjudicated
Storm Refuse Asset Cable
Water Management Seizure Police TV
ASSETS
Cash and investments - $ - $ 20,988 $ 734,161 $ 1,278 $ Accounts receivables 14,204 10,043 - 62,976 24,243
Lease receivable - - - - -
Interest receivable 49 - 150 5,309 -
Prepaid items and supplies - - - - -
Total assets $ 10,043 14,253 $ 21,138 $ 802,446 $ 25,521 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 2,363 - 884 7,456 11,609
Accrued liabilities - - - - 8,070
Unearned revenue - - - - -
Deposits payable 4,000 - - - -
Due to other funds 341,623 43,520 - - -
Total liabilities 43,520 347,986 884 7,456 19,679
Deferred inflows of resources:

Unavailable revenue - - - 18,628 6,524
Total deferred inflows
of resources - - - 18,628 6,524
Fund Balances (Deficits):

Nonspendable - - - - -
Restricted - - 20,254 776,362 -
Assigned - - - - -
Unassigned (deficit) (333,733) (33,477) - - (682)
Total fund balances (deficits) (333,733) (33,477) 20,254 776,362 (682) Total liabilities, deferred
inflows of resources,
and fund balances $ 14,253 $ 10,043 $ 21,138 $ 802,446 $ 25,521 (Continued)
City of Pinole
Combining Balance Sheet (Continued)
June 30, 2025
Non-Major Governmental Funds
Special Revenue Funds
114

CASP
Rate Development Solid Waste Certification
Recreation Stabilization Services Fund & Training
ASSETS
Cash and investments 8,763 $ 225,582 $ 73,804 $ 3,184,891 $ 56,902 $ Accounts receivables 43,108 - - 119,952 -
Lease receivable 11,386 - - - -
Interest receivable - 1,633 534 22,987 -
Prepaid items and supplies 5,000 - - - -
Total assets $ 227,215 68,257 $ 74,338 $ 3,327,830 $ 56,902 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 37,971 - 7,582 20,938 71
Accrued liabilities 26,084 - - - -
Unearned revenue 58 - - - -
Deposits payable 22,524 - 59,121 - -
Due to other funds - - - - -
Total liabilities - 86,637 66,703 20,938 71
Deferred inflows of resources:

Unavailable revenue - - - - -
Total deferred inflows
of resources - - - - -
Fund Balances (Deficits):

Nonspendable 5,000 - - - -
Restricted 227,215 - 7,635 3,306,892 56,831
Assigned - - - - -
Unassigned (deficit) (23,380) - - - -
Total fund balances (deficits) (18,380) 227,215 7,635 3,306,892 56,831 Total liabilities, deferred
inflows of resources,
and fund balances $ 68,257 $ 227,215 $ 74,338 $ 3,327,830 $ 56,902 (Continued)
City of Pinole
June 30, 2025
Non-Major Governmental Funds
Special Revenue Funds
Combining Balance Sheet (Continued)
115

Total
Nonmajor
Governmental
Funds
ASSETS
Cash and investments $ 16,925,350
Accounts receivables 410,894
Lease receivable 11,386
Interest receivable 89,041
Prepaid items and supplies 320,552
Total assets $ 17,757,223

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 251,831
Accrued liabilities 34,154
Unearned revenue 58
Deposits payable 85,645
Due to other funds 467,658
Total liabilities 839,346
Deferred inflows of resources:

Unavailable revenue 25,152
Total deferred inflows
of resources 25,152
Fund Balances (Deficits):

Nonspendable 320,552
Restricted 12,507,466
Assigned 4,455,979
Unassigned (deficit) (391,272)
Total fund balances (deficits) 16,892,725
Total liabilities, deferred
inflows of resources,
and fund balances $ 17,757,223
City of Pinole
June 30, 2025
Non-Major Governmental Funds
Combining Balance Sheet (Continued)
116

Capital
Projects Fund
Public Works
Capital Growth Gas Parkland
Projects Impact Tax Dedication Measure C
REVENUES:

Taxes and assessments 59,561 $ - $ - $ - $ - $
Intergovernmental revenues 190,167 - 1,050,778 - 552,403 Investment earnings 176 178,624 93,339 6 113,177
Rents and ground leases - - - - -
Charges for services 383 - - - -
Fines, forfeitures and penalties - - - - -
Other revenues - - 49,432 - -
Total revenues 178,624 250,287 1,193,549 6 665,580
EXPENDITURES:

Current:

General administration - - - - -
Public safety - - - - -
Public works 36,786 - 594,441 - 233,523
Recreation - - - - -
Community development - - - - -
Capital outlay 114,282 220,000 68 - 11,828
Total expenditures 220,000 151,068 594,509 - 245,351
Excess (deficiency)
of revenues over expenditures 99,219 (41,376) 599,040 420,229 6 OTHER FINANCING SOURCES:

Transfers in 500,000 - - - -
Total other financing sources 500,000 - - - -
NET CHANGES IN FUND BALANCES 599,219 (41,376) 599,040 420,229 6 FUND BALANCES (DEFICITS):

Beginning of year 3,856,760 3,503,560 1,589,060 2,357,194 116 End of year $ 4,455,979 $ 3,462,184 $ 2,188,100 $ 2,777,423 122 $ (Continued)
City of Pinole
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2025
Special Revenue Funds
117

Adjudicated
Storm Refuse Asset Cable
Water Management Seizure Police TV
REVENUES:

Taxes and assessments 232,332 $ - $ - $ 233,909 $ 13,567 $ Intergovernmental revenues - 66,971 - 194,663 -
Investment earnings 147 90 1,027 39,354 -
Rents and ground leases - - - - -
Charges for services - - - - 160,459
Fines, forfeitures and penalties - - 392 19,078 -
Other revenues - - - - 150
Total revenues 67,061 232,479 1,419 487,004 174,176
EXPENDITURES:

Current:

General administration - - - - 513,656
Public safety - - - 612,976 -
Public works 442,586 131,958 - 775 -
Recreation - - - - -
Community development - - - - -
Capital outlay - - - 122,365 97,612
Total expenditures 131,958 442,586 - 736,116 611,268
Excess (deficiency)
of revenues over expenditures (64,897) (210,107) 1,419 (249,112) (437,092) OTHER FINANCING SOURCES:

Transfers in - - - 434,289 -
Total other financing sources - - - 434,289 -
NET CHANGES IN FUND BALANCES (210,107) (64,897) 1,419 (249,112) (2,803) FUND BALANCES (DEFICITS):

Beginning of year (123,626) 31,420 18,835 1,025,474 2,121 End of year $ (333,733) $ (33,477) $ 20,254 $ 776,362 $ (682) (Continued)
City of Pinole
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Special Revenue Funds
Non-Major Governmental Funds
For the Year Ended June 30, 2025
118

CASP
Rate Development Solid Waste Certification
Recreation Stabilization Services Fund & Training
REVENUES:

Taxes and assessments - $ - $ - $ - $ - $
Intergovernmental revenues 41,722 - - - -
Investment earnings - 11,168 3,654 155,294 -
Rents and ground leases 56,624 - - - -
Charges for services 561,301 - - - 7,790
Fines, forfeitures and penalties - - - - -
Other revenues 187,786 - - 476,894 -
Total revenues 11,168 847,433 3,654 632,188 7,790
EXPENDITURES:

Current:

General administration 8,049 - - - -
Public safety - - - - -
Public works - - - 241,110 -
Recreation 2,141,278 - - - -
Community development - - - - 398
Capital outlay 223,651 - - - -
Total expenditures - 2,372,978 - 241,110 398
Excess (deficiency)
of revenues over expenditures 11,168 (1,525,545) 3,654 391,078 7,392 OTHER FINANCING SOURCES:

Transfers in 1,520,969 - - - -
Total other financing sources 1,520,969 - - - -
NET CHANGES IN FUND BALANCES (4,576) 11,168 3,654 391,078 7,392 FUND BALANCES (DEFICITS):

Beginning of year (13,804) 216,047 3,981 2,915,814 49,439 End of year $ (18,380) $ 227,215 $ 7,635 $ 3,306,892 $ 56,831 (Continued)
City of Pinole
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2025
Special Revenue Funds
119

Total
Nonmajor
Funds
Total
REVENUES:

Taxes and assessments $ 539,369
Intergovernmental revenues 2,096,704
Investment earnings 596,056
Rents and ground leases 56,624
Charges for services 729,933
Fines, forfeitures and penalties 19,470
Other revenues 714,262
Total revenues 4,752,418
EXPENDITURES:

Current:

General administration 521,705
Public safety 612,976
Public works 1,681,179
Recreation 2,141,278
Community development 398
Capital outlay 789,806
Total expenditures 5,747,342
Excess (deficiency)
of revenues over expenditures (994,924)
OTHER FINANCING SOURCES:

Transfers in 2,455,258
Total other financing sources 2,455,258
NET CHANGES IN FUND BALANCES 1,460,334
FUND BALANCES (DEFICITS):

Beginning of year 15,432,391
End of year $ 16,892,725
City of Pinole
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) For the Year Ended June 30, 2025
Non-Major Governmental Funds
120

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Taxes and assessments 56,411 $ 56,411 $ 59,561 $ 3,150 $ Intergovernmental revenues 1,814,683 1,814,683 190,167 (1,624,516) Investment earnings - - 176 176
Rents and ground leases 15,000 15,000 - (15,000)
Charges for services - - 383 383
Other revenues 7,500 7,500 - (7,500)
Total revenues 1,893,594 1,893,594 250,287 (1,643,307)
EXPENDITURES:

Current:

Public works 194,397 194,397 36,786 157,611
Capital outlay 4,558,024 4,558,024 114,282 4,443,742
Total expenditures 4,752,421 4,752,421 151,068 4,601,353 Excess (deficiency) of revenues over expenditures (2,858,827) (2,858,827) 99,219 2,958,046 OTHER FINANCING SOURCES:

Transfers in 500,000 500,000 500,000 -
Total other financing sources 500,000 500,000 500,000 - NET CHANGE IN FUND BALANCE $ (2,358,827) (2,358,827) $ 599,219 2,958,046 $ FUND BALANCE:

Beginning of year 3,856,760
End of year $ 4,455,979
City of Pinole
Budgetary Comparison Schedule
Public Works Capital Projects
For the Year Ended June 30, 2025
Budgeted Amounts
121

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment earnings - $ - $ 178,624 $ 178,624 $
Charges for services 1,039,594 - - -
Total revenues - 1,039,594 178,624 178,624
EXPENDITURES:

Current:

Capital outlay 1,623,000 1,623,000 220,000 1,403,000 - Total expenditures 1,623,000 1,623,000 220,000 1,403,000 NET CHANGE IN FUND BALANCE $ (1,623,000) (583,406) $ (41,376) 1,581,624 $ FUND BALANCE:

Beginning of year 3,503,560
End of year $ 3,462,184
City of Pinole
Budgetary Comparison Schedule
Growth Impact Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
122

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental revenues 1,033,764 $ 1,033,764 $ 1,050,778 $ 17,014 $ Investment earnings 5,000 5,000 93,339 88,339
Other revenues 7,636 7,636 49,432 41,796
Total revenues 1,046,400 1,046,400 1,193,549 147,149
EXPENDITURES:

Current:

Public works 572,107 572,107 594,441 (22,334)
Capital outlay 1,631,082 1,631,082 68 1,631,014
Total expenditures 2,203,189 2,203,189 594,509 1,608,680 NET CHANGE IN FUND BALANCE $ (1,156,789) (1,156,789) $ 599,040 1,755,829 $ FUND BALANCE:

Beginning of year 1,589,060
End of year $ 2,188,100
City of Pinole
Budgetary Comparison Schedule
Gas Tax Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
123

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment earnings - $ - $ 6 $ 6 $
Total revenues - - 6 6
NET CHANGE IN FUND BALANCE $ - - $ 6 6 $
FUND BALANCE:

Beginning of year 116
End of year $ 122
City of Pinole
Budgetary Comparison Schedule
Parkland Dedication Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
124

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental revenues 1,144,257 $ 1,144,257 $ 552,403 $ (591,854) $ Investment earnings 8,000 8,000 113,177 105,177
Total revenues 1,152,257 1,152,257 665,580 (486,677)
EXPENDITURES:

Current:

Public works 283,476 283,476 233,523 49,953
Capital outlay 1,421,650 1,421,650 11,828 1,409,822
Total expenditures 1,705,126 1,705,126 245,351 1,459,775 NET CHANGE IN FUND BALANCE $ (552,869) (552,869) $ 420,229 973,098 $ FUND BALANCE:

Beginning of year 2,357,194
End of year $ 2,777,423
City of Pinole
Budgetary Comparison Schedule
Measure C Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
125

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Taxes and assessments $ 253,272 $ 253,272 $ 232,332 $ (20,940) Investment earnings - - 147 147
Total revenues 253,272 253,272 232,479 (20,793)
EXPENDITURES:

Current:

Public works 379,829 379,829 442,586 (62,757)
Total expenditures 379,829 379,829 442,586 (62,757)
NET CHANGE IN FUND BALANCE $ (126,557) $ (126,557) (210,107) $ (83,550) FUND BALANCE (DEFICIT):

Beginning of year (123,626)
End of year $ (333,733)
City of Pinole
Budgetary Comparison Schedule
Storm Water Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
126

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental revenues 60,060 $ 60,060 $ 66,971 $ 6,911 $ Investment earnings 6,000 6,000 90 (5,910)
Total revenues 66,060 66,060 67,061 1,001
EXPENDITURES:

Current:

Public works 187,102 187,102 131,958 55,144
Total expenditures 187,102 187,102 131,958 55,144
NET CHANGE IN FUND BALANCE $ (121,042) (121,042) $ (64,897) 56,145 $ FUND BALANCE (DEFICIT):

Beginning of year 31,420
End of year $ (33,477)
City of Pinole
Budgetary Comparison Schedule
Refuse Management Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
127

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment earnings $ - $ - $ 1,027 $ 1,027
Fines, forfeitures and penalties - - 392 392
Total revenues - - 1,419 1,419
EXPENDITURES:

Current:

Public safety 20,544 20,544 - 20,544 - Total expenditures 20,544 20,544 - 20,544 NET CHANGE IN FUND BALANCE $ (20,544) $ (20,544) 1,419 $ 21,963 FUND BALANCE:

Beginning of year 18,835
End of year $ 20,254
City of Pinole
Budgetary Comparison Schedule
Adjudicated Asset Seizure Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
128

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Taxes and assessments 239,855 $ 239,855 $ 233,909 $ (5,946) $ Intergovernmental revenues 165,000 165,000 194,663 29,663 Investment earnings 21,500 21,500 39,354 17,854
Fines, forfeitures and penalties 45,000 45,000 19,078 (25,922) Total revenues 471,355 471,355 487,004 15,649
EXPENDITURES:

Current:

Public safety 598,887 599,587 612,976 (13,389)
Public works 35,000 35,000 775 34,225
Capital outlay 264,333 263,633 122,365 141,268
Total expenditures 898,220 898,220 736,116 162,104
NET CHANGE IN FUND BALANCE $ (426,865) (426,865) $ (249,112) 177,753 $ FUND BALANCE:

Beginning of year 1,025,474
End of year $ 776,362
City of Pinole
Budgetary Comparison Schedule
Police Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
129

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Taxes and assessments 26,486 $ 26,486 $ 13,567 $ (12,919) $ Charges for services 179,047 179,047 160,459 (18,588)
Other revenues 3,000 3,000 150 (2,850)
Total revenues 208,533 208,533 174,176 (34,357)
EXPENDITURES:

Current:

General administration 624,463 599,463 513,656 85,807
Capital outlay 205,000 149,420 97,612 51,808 - Total expenditures 748,883 829,463 611,268 137,615 Excess (deficiency) of revenues over expenditures (540,350) (620,930) (437,092) 103,258 OTHER FINANCING SOURCES:

Transfers in 160,000 434,289 434,289 -
Total other financing sources 434,289 160,000 434,289 - NET CHANGE IN FUND BALANCE $ (106,061) (460,930) $ (2,803) 103,258 $ FUND BALANCE (DEFICIT):

Beginning of year 2,121
End of year $ (682)
City of Pinole
Budgetary Comparison Schedule
Cable TV Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
130

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental revenues 81,983 $ 81,983 $ 41,722 $ (40,261) $ Rents and ground leases 19,013 19,013 56,624 37,611
Charges for services 367,860 367,860 561,301 193,441
Other revenues 35,500 212,550 187,786 (24,764)
Total revenues 681,406 504,356 847,433 166,027
EXPENDITURES:

Current:

General administration 7,500 7,500 8,049 (549)
Recreation 2,275,756 2,339,756 2,141,278 198,478
Capital outlay 97,000 264,050 223,651 40,399 - Total expenditures 2,611,306 2,380,256 2,372,978 238,328 Excess (deficiency) of revenues over expenditures (1,929,900) (1,875,900) (1,525,545) 404,355 OTHER FINANCING SOURCES:

Transfers in 751,300 1,520,969 1,520,969 -
Total other financing sources 1,520,969 751,300 1,520,969 - NET CHANGE IN FUND BALANCE $ (408,931) (1,124,600) $ (4,576) 404,355 $ FUND BALANCE (DEFICIT):

Beginning of year (13,804)
End of year $ (18,380)
City of Pinole
Budgetary Comparison Schedule
Recreation Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
131

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment earnings - $ - $ 11,168 $ 11,168 $
Total revenues - - 11,168 11,168
NET CHANGE IN FUND BALANCE $ - - $ 11,168 11,168 $
FUND BALANCE:

Beginning of year 216,047
End of year $ 227,215
City of Pinole
Budgetary Comparison Schedule
Rate Stabilization Fund
For the Year Ended June 30, 2025
Budgeted Amounts
132

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment earnings - $ - $ 3,654 $ 3,654 $
Total revenues - - 3,654 3,654
NET CHANGE IN FUND BALANCE $ - - $ 3,654 3,654 $
FUND BALANCE:

Beginning of year 3,981
End of year $ 7,635
City of Pinole
Budgetary Comparison Schedule
Development Services Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
133

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment earnings 8,000 8,000 155,294 147,294
Other revenues 360,000 360,000 476,894 116,894
Total revenues 368,000 368,000 632,188 264,188
EXPENDITURES:

Current:

Public works 173,666 173,666 241,110 (67,444)
Total expenditures 173,666 173,666 241,110 (67,444)
NET CHANGE IN FUND BALANCE $ 194,334 194,334 $ 391,078 196,744 $ FUND BALANCE:

Beginning of year 2,915,814
End of year $ 3,306,892
City of Pinole
Budgetary Comparison Schedule
Solid Waste Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
134

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services - $ - $ 7,790 $ 7,790 $
Total revenues - - 7,790 7,790
EXPENDITURES:

Current:

Community development - - 398 (398)
Total expenditures - - 398 (398)
NET CHANGE IN FUND BALANCE $ - - $ 7,392 7,392 $
FUND BALANCE:

Beginning of year 49,439
End of year $ 56,831
City of Pinole
Budgetary Comparison Schedule
CASP Certification & Training Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
135

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136

FIDUCIARY FUNDS
Custodial Funds:

Unadjudicated Asset Seizure Fund - This fund is used to account for receipt of various asset seizure moneys awaiting adjudication.

Developer Fees - This fund is used to account for receipt of developer deposits.

Pinole Public School Fund - This fund is used to account for receipt and subsequent expenditure of donations to fund public school projects or programs.

Community Assistance Program Fund - This fund is used to account for receipt and subsequent expenditure of donations for community assistance programs or events.

Police Evidence Fund - This fund is used to account for moneys collected as police evidence. 137

Unadjudicated Asset Developer
Seizure Fund Fees Fund
ASSETS
Cash and investments $ 4,869 27,755 $
Interest receivable - 201
Total assets 4,869 27,956

LIABILITIES
Accounts payable - 11,449
Deposit payable - -
Unearned Revenue - -
Total liabilities - 11,449

NET POSITION
Restricted for:

Individuals, organizations, and other governments 4,869 16,507 Total net position $ 4,869 16,507 $
June 30, 2025
City of Pinole
Combining Statement of Fiduciary Net Position
Custodial Funds
138

Community
Pinole Public Assistance Police
School Funds Program Fund Evidence Fund Total
ASSETS
Cash and investments $ 28,945 1,945 $ 139,965 $ 203,479 $ Interest receivable 14 - - 215
Total assets 28,945 1,959 139,965 203,694

LIABILITIES
Accounts payable - 2,648 - 14,097
Deposit payable - - 139,721 139,721
Unearned Revenue - 26,297 - 26,297
Total liabilities 28,945 - 139,721 180,115

NET POSITION
Restricted for:

Individuals, organizations, and other governments - 1,959 244 23,579 Total net position $ - 1,959 $ 244 $ 23,579 $
June 30, 2025
City of Pinole
Combining Statement of Fiduciary Net Position (Continued) Custodial Funds
139

Unadjudicated Asset Developer
Seizure Fund Fees Fund
ADDITIONS:

Investment income $ - 1,373 $
Total additions - 1,373
Change in net position - 1,373
NET POSITION:

Beginning of year 4,869 15,134
End of year $ 4,869 16,507 $
For the Year Ended June 30, 2025
City of Pinole
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
140

Community
Pinole Public Assistance Program Police Total Custodial School Funds Fund Evidence Fund Funds
ADDITIONS:

Investment income 96 $ - $ 11 $ 1,480 $
Total additions - 96 11 1,480
Change in net position - 96 11 1,480
NET POSITION:

Beginning of year 1,863 233 22,099 -
End of year $ 1,959 $ 244 - $ 23,579 $
For the Year Ended June 30, 2025
City of Pinole
Combining Statement of Changes in Fiduciary Net Position (Continued) Custodial Funds
141

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142

STATISTICAL SECTION
(Unaudited)
143

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144

Financial Trends:

Net Position by Component – Last Ten Fiscal Years 146
Changes in Net Position – Last Ten Fiscal Years 148
General Fund Tax Revenue by Source – Last Ten Fiscal Years 151 Fund Balances Governmental Funds – Last Ten Fiscal Years 152 Changes in Fund Balances Governmental Funds – Last Ten Fiscal Years 154 Revenue Capacity:

Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years 157 Direct and Overlapping Governments – Last Ten Fiscal Years 158 Principal Property Taxpayers – Last Ten Fiscal Years 159 Property Tax Levies and Collections – Last Ten Fiscal Years 161 Taxable Sales by Category – Last Ten Fiscal Years 162
Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years 164 Top 25 Sales Tax Producers – Last Ten Fiscal Years 165
Debt Capacity:

Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 166 Ratios of Net General Bonded Debt Outstanding – Last Ten Fiscal Years 167 Direct and Overlapping Governmental Activities Debt 168 Computation of Legal Debt Margin – Last Ten Fiscal Years 169 Revenue Bond Coverage – Last Ten Fiscal Years 170
Demographic and Economic Information:

Demographic Statistics – Last Ten Fiscal Years 171
Principal Employers – Current Year and Ten Years Ago 173 Operating Information:

Operating Indicators by Function/Program – Last Ten Fiscal Years 174 Full-Time Equivalent City Government Employees by Function/Program – Last Ten Fiscal Years 177 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years 178 City of Pinole
Statistical Section
For the Year Ended June 30, 2025
145

2016 2017 2018 2019 2020
Governmental activities
Net investment in capital assets $ 32,700,833 33,764,294 $ 31,758,414 $ 29,977,958 $ 30,774,116 $ Restricted 17,755,625 2,591,393 17,938,328 31,048,458 32,045,457 Unrestricted (deficit) (31,148,654) (17,014,950) (34,044,994) (41,104,957) (41,984,038) Total governmental activities net position $ 19,307,804 19,340,737 $ 15,651,748 $ 19,921,459 $ 20,835,535 $ Business-type activities
Net investment in capital assets $ 14,364,860 13,869,394 $ 13,381,134 $ 13,088,528 $ 12,452,490 $ Unrestricted 5,649,110 4,584,135 6,241,700 7,883,837 10,243,444 Total business-type activities net position $ 20,013,970 18,453,529 $ 19,622,834 $ 20,972,365 $ 22,695,934 $ Primary government
Net investment in capital assets $ 47,065,693 47,633,688 $ 45,139,548 $ 43,066,486 $ 43,226,606 $ Restricted 17,755,625 2,591,393 17,938,328 31,048,458 32,045,457 Unrestricted (deficit) (25,499,544) (12,430,815) (27,803,294) (33,221,120) (31,740,594) Total primary government net position $ 39,321,774 37,794,266 $ 35,274,582 $ 40,893,824 $ 43,531,469 $ Source: City of Pinole Finance
*For the fiscal year ended June 30, 2025, the City implemented GASB Statement no. 101, Compensated Absences. The implementation of GASB 101 resulted in a change in accounting principle, and prior year amounts have been restated accordingly.

City of Pinole
Net Position by Component
Last Ten Fiscal Years
146

2021 2022 2023 2024 2025
Governmental activities
Net investment in capital assets $ 31,695,972 31,008,808 $ 30,207,077 $ 30,973,001 $ 30,299,344 $ Restricted 34,342,971 33,528,931 29,854,090 29,675,938 29,261,144 Unrestricted (deficit) (52,223,172) (44,487,476) (39,009,363) (43,775,850) (48,107,516) Total governmental activities net position $ 13,815,771 20,050,263 $ 21,051,804 $ 16,873,089 $ 11,452,972 $ Business-type activities
Net investment in capital assets $ 12,863,679 12,783,593 $ 7,718,239 $ 7,975,522 $ 11,802,776 $ Unrestricted 11,022,842 10,795,126 12,544,816 14,072,542 12,407,690 Total business-type activities net position $ 23,886,521 23,578,719 $ 20,263,055 $ 22,048,064 $ 24,210,466 $ Primary government
Net investment in capital assets $ 44,559,651 43,792,401 $ 37,925,316 $ 38,948,523 $ 42,102,120 $ Restricted 34,342,971 33,528,931 29,854,090 29,675,938 29,261,144 Unrestricted (deficit) (41,200,330) (33,692,350) (26,464,547) (29,703,308) (35,699,826) Total primary government net position $ 37,702,292 43,628,982 $ 41,314,859 $ 38,921,153 $ 35,663,438 $ City of Pinole
Net Position by Component (Continued)
Last Ten Fiscal Years
147

2016 2017 2018 2019 2020
Expenses
Governmental Activities:

General government 4,368,671 $ 5,952,688 $ 3,482,534 $ 4,931,705 $ 4,596,909 $ Public safety 10,086,963 10,326,947 12,202,527 12,060,171 14,937,597 Public services 3,878,498 2,568,265 3,217,759 3,416,574 3,488,882 Recreation 1,067,952 1,151,760 1,145,227 1,069,375 1,146,587 Community development 1,184,385 1,065,848 1,642,031 2,338,177 1,365,580 Interest and fiscal changes 305,569 338,507 331,464 287,729 304,844 Total government activity expenses 20,892,038 $ 21,404,015 $ 22,021,542 $ 24,103,731 $ 25,840,399 $ Business-type activities:

Wastewater utility 5,316,022 4,597,454 5,193,994 4,930,113 5,704,747 Total business-type activities expenses 5,316,022 4,597,454 5,193,994 4,930,113 5,704,747 Total primary government expenses $ 26,001,469 26,208,060 $ 27,215,536 $ 29,033,844 $ 31,545,146 $ Program Revenues
Governmental Activities:

Charges for services:

General government 236,512 $ 354,357 $ 648,409 $ 643,524 $ 678,065 $ Public safety 461,330 640,785 1,435,741 1,186,008 1,388,295 Public services 545,273 310,073 153,810 169,758 66,676
Recreation 871,497 783,783 846,822 770,397 501,860
Community development 244,449 162,634 1,153,907 2,368,209 736,346 Operating grants and contributiions 1,464,456 227,184 11,483,081 2,136,212 1,790,729 Capital grants and contributions 1,094,371 1,262,813 - - - Total governmental program revenues 4,917,888 3,741,629 15,721,770 7,274,108 5,161,971 Business-type activities:

Charges for services:

Wastewater utility 7,541,964 6,315,563 6,524,537 7,211,834 7,093,734 Capital grants and contributions - - - - -
Total business-type program revenues 7,541,964 6,315,563 6,524,537 7,211,834 7,093,734 Total primary government program revenues 12,459,852 $ 10,057,192 $ 22,246,307 $ 14,485,942 $ 12,255,705 $ Net (Expense)/Revenue
Net (Expense)/Revenue Governmental (15,974,150) (17,662,386) (6,299,772) (16,829,623) (20,678,428) Net (Expense)/Revenue Business-type 2,225,942 1,718,109 1,330,543 2,281,721 1,388,987 Total primary government net (Expense)/Revenue (15,944,277) (13,748,208) (4,969,229) (14,547,902) (19,289,441) General revenues and Transfers
Governmental activities 18,362,326 17,629,453 19,009,791 19,703,801 20,627,635 Business-type activities 20,137 3,570 58,958 129,641 284,574 Total primary government 18,382,463 17,633,023 19,068,749 19,833,442 20,912,209 Change in Net Position
Governmental activities 2,388,176 (32,933) 12,710,019 2,874,178 (50,793) Business-type activities 2,246,079 1,721,679 1,389,501 2,411,362 1,673,561 Total primary government $ 1,688,746 4,634,255 $ 14,099,520 $ 5,285,540 $ 1,622,768 $ Source: City of Pinole Finance
City of Pinole
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
148

2021 2022 2023 2024 2025
Expenses
Governmental Activities:

General government 4,957,477 $ 5,539,414 $ 4,226,526 $ 5,439,951 $ 6,331,078 $ Public safety 15,895,381 19,255,147 12,985,795 20,226,459 21,039,278 Public services 4,541,157 3,943,251 4,391,992 5,734,403 5,824,745 Recreation 949,734 1,878,342 1,926,541 2,275,235 2,662,821 Community development 1,275,333 2,271,609 2,982,917 2,968,511 2,994,841 Interest and fiscal changes 331,218 388,876 410,766 424,186 440,527 Total government activity expenses 27,950,300 $ 33,276,639 $ 26,924,537 $ 37,068,745 $ 39,293,290 $ Business-type activities:

Wastewater utility 6,688,530 7,266,212 5,787,622 6,812,685 7,051,724 Total business-type activities expenses 6,688,530 7,266,212 5,787,622 6,812,685 7,051,724 Total primary government expenses $ 40,542,851 34,638,830 $ 32,712,159 $ 43,881,430 $ 46,345,014 $ Program Revenues
Governmental Activities:

Charges for services:

General government 686,519 $ 2,106,826 $ 936,883 $ 752,366 $ 767,359 $ Public safety 1,440,572 1,925,962 1,840,283 1,908,034 2,017,514 Public services 74,897 739,693 365,748 502,517 479,192
Recreation 172,486 378,787 711,156 481,813 799,884
Community development 503,324 902,764 1,236,488 1,423,431 1,314,599 Operating grants and contributiions 1,795,055 2,020,534 5,594,961 2,939,589 3,132,891 Capital grants and contributions - 712,728 865,743 500,258 461,263 Total governmental program revenues 4,672,853 8,787,294 11,551,262 8,508,008 8,972,702 Business-type activities:

Charges for services:

Wastewater utility 7,527,056 7,770,772 7,831,703 8,114,292 8,823,158 Capital grants and contributions - - - - -
Total business-type program revenues 7,527,056 7,770,772 7,831,703 8,114,292 8,823,158 Total primary government program revenues 12,199,909 $ 16,558,066 $ 19,382,965 $ 16,622,300 $ 17,795,860 $ Net (Expense)/Revenue
Net (Expense)/Revenue Governmental (23,277,447) (24,489,345) (15,373,275) (28,560,737) (30,320,588) Net (Expense)/Revenue Business-type 838,526 504,560 2,044,081 1,301,607 1,771,434 Total primary government net (Expense)/Revenue (23,984,785) (22,438,921) (13,329,194) (27,259,130) (28,549,154) General revenues and Transfers
Governmental activities 22,492,175 18,254,852 22,535,526 24,492,004 25,442,386 Business-type activities 44,259 (196,758) (174,689) 483,402 454,276 Total primary government 22,536,434 18,058,094 22,360,837 24,975,406 25,896,662 Change in Net Position
Governmental activities (785,272) (6,234,493) 7,162,251 (4,068,733) (4,878,202) Business-type activities 882,785 307,802 1,869,392 1,785,009 2,225,710 Total primary government $ (5,926,691) 97,513 $ 9,031,643 $ (2,283,724) $ (2,652,492) $ City of Pinole
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
149

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150

(b) (a) ( c )
Fiscal Year Property Tax Sales Tax
Franchise
Tax Transfer Tax
Occupancy
Tax Utility Tax Other Total
2016 3,333,712 $ 7,859,195 $ 687,737 $ 79,181 $ 459,393 $ 1,876,318 $ 1,826,513 $ 16,122,050 $ 2017 3,392,870 7,411,905 717,013 98,593 478,940 2,066,623 1,942,511 16,108,455 2018 4,555,300 8,162,816 747,625 90,328 513,368 1,926,796 2,068,842 18,065,075 2019 3,775,074 8,281,048 735,311 91,954 485,499 1,812,844 2,205,899 17,387,628 2020 4,473,828 7,689,917 750,002 70,764 444,453 1,809,832 2,304,932 17,543,727 2021 4,001,411 8,927,361 751,598 119,254 446,105 1,939,726 2,354,617 18,540,071 2022 4,182,262 9,613,625 788,146 124,946 487,687 2,063,773 2,550,587 19,811,026 2023 4,985,909 9,328,351 875,058 69,881 456,288 2,312,830 2,689,580 20,717,898 2024 5,883,627 9,430,219 901,208 65,183 378,622 2,445,715 2,814,056 21,918,629 2025 6,103,492 10,065,999 910,745 105,788 322,889 2,657,156 2,918,168 23,084,237 (c) Includes Business License Taxes
Source: City of Pinole Finance
City of Pinole
General Fund Tax Revenue by Source
Last Ten Fiscal Years
(a) City of Pinole utility tax went into effect July 1991. This tax was repealed by the voters in November 1997 and reinstated in November 1998, and reaffirmed by voters in November 2004, November 2012, and November 2018. (b) Voter ratification November 2006 of 1/2-cent local user tax applied to retail sales effective April 2007. Voter ratification November 2014 of additional 1/2-cent local user tax applied to retail sales effective April 2015. Voter ratification November 2024 of additional 1/2-cent local user tax applied to retail sales effective April 2025.
$10,000
$100,000
$1,000,000
$10,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Fiscal Year Property Tax Sales Tax Franchise Tax Transfer Tax Occupancy Tax Utility Tax Other
151

2016 2017 2018 2019 2020
General Fund
Nonspendable 7,275 $ 6,712 $ 12,669 $ 13,178 $ 463,067 $ Restricted - - 133,586 17,346,090 18,255,487
Assigned - - 2,531,677 2,531,677 7,672,065
Committed - - - - 579,257
Unassigned 9,062,287 11,700,289 23,249,204 14,909,608 10,828,937 Total General Fund 9,069,562 $ 11,707,001 $ 25,927,136 $ 34,800,553 $ 37,798,813 $ All Other Governmental Funds
Nonspendable 2,591,393 $ 6,882,968 $ - $ - $ 315,552 $
Restricted 11,665,834 10,872,657 18,250,952 14,306,945 13,756,009 Assigned - - 2,366,429 2,800,614 2,751,350
Committed - 2,304,515 - - -
Unassigned reported in:

Special revenue funds 4,248,108 (371,162) (43,673) (29,052) (35,900) Capital project funds - - - - -
Debt service funds - - - - -
Total all other governmental funds 18,505,335 $ 19,688,978 $ 20,573,708 $ 17,078,507 $ 16,787,011 $ Source: City of Pinole Finance
City of Pinole
Fund Balances Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
152

2021 2022 2023 2024 2025
General Fund
Nonspendable 18,782 $ 45,296 $ 243,904 $ 33,987 $ 79,756 $ Restricted 19,623,678 17,271,818 14,775,559 13,718,620 12,559,159 Assigned 7,836,178 8,533,768 - - -
Committed - - 9,412,029 10,744,838 10,236,705
Unassigned 12,488,562 9,406,554 12,123,654 7,841,433 5,619,093 Total General Fund 39,967,200 $ 35,257,436 $ 36,555,146 $ 32,338,878 $ 28,494,713 $ All Other Governmental Funds
Nonspendable 315,552 $ 315,552 $ 328,952 $ 320,552 $ 320,552 $ Restricted 13,905,253 17,236,034 18,590,427 19,665,280 20,758,539 Assigned 2,526,571 2,069,093 3,280,685 3,856,760 4,455,979 Committed - - - - -
Unassigned reported in:

Special revenue funds (137,880) (600,971) (1,560,650) (2,369,110) (2,937,236) Capital project funds - - - - -
Debt service funds - - - - -
Total all other governmental funds 16,609,496 $ 19,019,708 $ 20,639,414 $ 21,473,482 $ 22,597,834 $ City of Pinole
Fund Balances Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
153

2016 2017 2018 2019 2020
Revenues
Taxes 15,111,374 $ 15,453,213 $ 16,599,387 $ 15,853,006 $ 15,874,731 $ Intergovernmental 3,462,621 877,090 1,460,655 2,188,347 1,860,599 Loan repayments 85,849 145,457 15,023 1,656,645 544,892 Contributions 65,317 146,112 30,595 22,746 24,889
Investment earnings 188,790 16,188 88,092 1,529,630 1,790,740 Rents and ground leases 224,952 300,441 303,618 274,153 185,594 Charges for service 3,892,535 3,997,423 5,307,234 4,616,561 4,726,675 Fines, forfeitures and penalties 41,564 48,442 75,670 89,911 68,576 Other revenues 365,857 532,173 834,086 746,909 709,677
Total revenues 23,438,859 21,516,539 24,714,360 26,977,908 25,786,373 Expenditures
General administration 3,007,506 3,035,822 3,257,220 3,802,406 4,029,981 Public safety 9,635,264 10,067,977 10,535,903 11,801,897 12,975,773 Public services 2,460,827 1,712,315 1,485,090 1,648,377 1,680,617 Recreation 906,302 1,042,006 960,325 1,069,375 1,000,400 Community development 945,646 935,276 1,596,240 1,237,892 1,333,476 Debt service - Principal 369,177 363,151 361,674 356,117 301,709 Debt service - Interest 305,569 338,507 331,464 287,729 304,844 Capital outlay 1,289,967 200,403 1,098,789 1,419,264 1,466,664 Total expenditures 18,920,258 17,695,457 19,626,705 21,623,057 23,093,464 Other financing sources (uses)
Bond, note and loan proceeds - - - - -
Gain (loss) on sale of property 1,909 - 10,017,210 3,140 13,855 Transfers in 446,000 671,364 826,926 7,135,205 1,170,058 Transfers out (446,000) (671,364) (826,926) (7,135,205) (1,170,058) Total other financing sources 1,909 - 10,017,210 3,140 13,855 Net change in fund balance 4,520,510 $ 3,821,082 $ 15,104,865 $ 5,357,991 $ 2,706,764 $ Debt service as a % of
noncapital expenditures 3.8% 4.0% 3.7% 3.2% 2.8%
City of Pinole
Changes in Fund Balances Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
154

2021 2022 2023 2024 2025
Revenues
Taxes 19,055,833 $ 20,403,637 $ 21,782,789 $ 23,075,158 $ 24,112,083 $ Intergovernmental 1,856,343 2,837,951 6,204,016 2,737,265 2,684,890 Loan repayments 107,912 11,658 - - -
Contributions 14,274 10,574 - - -
Investment earnings 2,888,309 (2,754,154) 1,508,707 2,680,347 2,514,077 Rents and ground leases 131,335 121,141 116,688 111,947 149,842 Charges for service 2,444,899 5,581,014 3,930,060 3,728,715 3,926,550 Fines, forfeitures and penalties 41,236 39,392 52,592 75,765 95,657 Other revenues 541,679 515,174 491,936 590,815 761,060
Total revenues 27,081,820 26,766,387 34,086,788 33,000,012 34,244,159 Expenditures
General administration 4,319,504 4,775,249 4,800,746 5,081,926 6,087,139 Public safety 13,889,090 15,143,959 17,104,181 18,236,794 19,040,118 Public services 1,448,818 2,448,651 3,069,163 3,985,102 4,117,274 Recreation 820,918 1,573,083 1,930,222 2,192,027 2,550,264 Community development 1,205,200 2,143,148 3,218,011 2,962,260 2,760,662 Debt service - Principal 227,389 244,820 338,125 336,809 348,148 Debt service - Interest 331,218 388,876 401,206 418,148 441,395 Capital outlay 2,932,020 2,627,507 1,447,983 3,185,518 1,747,136 Total expenditures 25,174,157 29,345,293 32,309,637 36,398,584 37,092,136 Other financing sources (uses)
Bond, note and loan proceeds - - 165,695 126,215 126,837 Gain (loss) on sale of property 83,209 279,354 944,424 139 1,327 Transfers in 1,681,841 2,129,233 8,886,672 5,441,907 6,383,746 Transfers out (1,681,841) (2,129,233) (8,886,672) (5,441,907) (6,383,746) Total other financing sources 83,209 279,354 1,110,119 126,354 128,164 Net change in fund balance 1,990,872 $ (2,299,552) $ 2,887,270 $ (3,272,218) $ (2,719,813) $ Debt service as a % of
noncapital expenditures 2.5% 2.4% 2.4% 2.3% 2.2%
City of Pinole
Changes in Fund Balances Governmental Funds (Continued) Last Ten Fiscal Years
(modified accrual basis of accounting)
155

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156

Total Real
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Total Direct Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate (b) 2016 1,607,057,208 $ 373,896,531 $ 2,669,901 $ 71,708,925 $ 2,055,332,565 $ 57,423,148 $ 2,112,755,713 $ 2,510,798,889 $ 0.1884% 2017 1,712,024,334 424,465,946 2,710,613 40,142,846 2,179,343,739 52,646,667 2,231,990,406 2,652,497,398 0.1884% 2018 1,815,946,452 437,410,538 2,764,822 52,717,127 2,308,838,939 50,669,026 2,359,507,965 2,804,039,266 0.1884% 2019 1,930,860,892 481,974,623 21,572,321 17,844,755 2,452,252,591 54,318,451 2,506,571,042 2,978,809,026 0.1884% 2020 2,054,262,264 510,162,994 22,004,780 17,718,345 2,604,148,383 55,881,828 2,660,030,211 3,161,179,903 0.1884% 2021 2,156,140,583 520,189,147 22,444,868 19,105,066 2,717,879,664 58,104,679 2,775,984,343 3,298,979,793 0.1884% 2022 2,243,018,566 523,349,776 25,857,496 20,790,834 2,813,016,672 56,076,525 2,869,093,197 3,409,630,355 0.1884% 2023 2,420,638,572 535,935,832 28,005,918 23,417,929 3,007,998,251 59,630,604 3,067,628,855 3,645,570,131 0.1884% 2024 2,536,358,260 549,704,741 28,566,028 22,939,428 3,137,568,457 63,987,571 3,201,556,028 3,804,729,184 0.1884% 2025 2,628,488,757 555,414,956 29,137,341 36,133,224 3,249,174,278 63,310,998 3,312,485,276 3,936,557,502 0.1884% Source: Contra Costa County Assessor Combined Tax Rolls-HdL Coren & Cone report.

City of Pinole
Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
[b] California cities do not set their own direct tax rate. The State Constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area.

Real Property
[a] The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local overrides. These values are considered to be full market values. 157

Fiscal Year
Basic County
Wide Levy
Bay Area Rapid
Transit
East Bay Regional
Park District
Community
College District
West Contra Costa
Unified School
District
Total Direct and
Overlapping Tax
Rates [1]
2016 1.0000 0.0026 0.0067 0.0220 0.2781 1.3094
2017 1.0000 0.0080 0.0032 0.0120 0.2604 1.2836
2018 1.0000 0.0084 0.0021 0.0114 0.2397 1.2616
2019 1.0000 0.0070 0.0021 0.0110 0.2390 1.2591
2020 1.0000 0.0120 0.0094 0.0188 0.2379 1.2781
2021 1.0000 0.0139 0.0014 0.0161 0.2432 1.2746
2022 1.0000 0.0060 0.0020 0.0176 0.2939 1.3195
2023 1.0000 0.0140 0.0058 0.0162 0.2564 1.2924
2024 1.0000 0.0134 0.0057 0.0146 0.2464 1.2801
2025 1.0000 0.0148 0.0013 0.0142 0.2489 1.2792
Source : Contra Costa County Auditor-Controller Office
[1] Rates are per $100 of assessed value.

Last Ten Fiscal Years
City of Pinole
Property Tax Rates
Direct and Overlapping Governments
Per $100 of Assessed Value

0.0010

0.0100

0.1000

1.0000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Basic County Wide Levy Bay Area Rapid Transit
East Bay Regional Park District Community College District West Contra Costa Unified School District Total Direct and Overlapping Tax Rates [1] 158

Taxpayer
Taxable Assessed
Value
Percent of Total City
Taxable Assessed
Value
Taxable Assessed
Value
Percent of Total City
Taxable Assessed
Value
AMFP III Bayside $ 1.06% 22,369,920
Alexandra J and Bryon P Schard 0.73% 15,362,947
Appian Associates 0.75% 15,786,521
Che Chen and Shu Fen Liu Trust 24,961,660 $ 0.77% 21,184,754 1.00% Fairfield Bayside LLC 41,429,775 1.28% - 0.00%
Gateway Pinole Vista LLC 77,714,840 2.39% 63,238,755 2.99% Kaiser Foundation Health Plan 37,988,428 1.17% 36,863,816 1.74% NHI-Reit of Next House LLC 21,512,694 0.66% 19,472,447 0.92% Pinole Ridge Mall LLC 21,788,556 0.67% - 0.00%
ROIC Pinole Vista LLC 44,118,223 1.36% 31,480,827 1.49% SCG Pinole Valley Shopping Center 45,830,693 1.41% 38,807,126 1.84% Target Corporation 21,230,034 0.65% 19,621,250 0.93%
Thomas Fitzgerald Trust 18,182,750 0.56% - 0.00%
$ 10.92% 284,188,363 354,757,653 $ 13.45%
Total Net Assessed Valuation:

Fiscal Year 2024-25 3,249,174,278 $
Fiscal Year 2015-16 2,112,755,713 $
Source: Contra Costa County Assessor Combined Tax Rolls-HdL Coren & Cone reports.

Note: Information is shown in alphabetical order.
2024-25 2015-16
City of Pinole
Principal Property Taxpayers
Current and Nine Years Prior
159

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160

Redevelopment/ Value of Effective
Successor Agency Total Percent Value of City Redevelopment Local Tax Rate Effective Taxrate for Fiscal City Property Tax Property Tax Property Tax of Levy Property Subject to Property Subject to Applied to Taxrate for Redevelopment Year Levied & Collected Levied & Collected Levied & Collected Collected Local Tax Rate Local Tax Rate Assessed Value City Levy Agency Levy 2016 1,967,011 $ 105,121 $ [1] $ 100% 1,048,130,045 2,072,131 $ 1,037,786,268 $ 2,085,916,313 $ 0.19% 0.01% 2017 2,059,786 104,251 [1] 2,164,037 100% 1,105,435,408 1,100,258,798 2,205,694,206 0.19% 0.01% 2018 2,185,033 104,295 [1] 2,289,328 100% 1,170,940,384 1,162,783,781 2,333,724,165 0.19% 0.01% 2019 2,321,597 104,321 [1] 2,425,918 100% 1,242,741,110 1,238,557,132 2,481,298,242 0.19% 0.01% 2020 2,493,410 104,354 [1] 2,597,764 100% 1,332,924,560 1,302,307,451 2,635,232,011 0.19% 0.01% 2021 2,635,767 104,548 [1] 2,740,315 100% 1,404,683,713 1,346,717,824 2,751,401,537 0.19% 0.01% 2022 2,736,121 104,569 [1] 2,840,690 100% 1,457,104,818 1,387,850,611 2,844,955,429 0.19% 0.01% 2023 2,949,258 104,569 [1] 3,053,827 100% 1,568,575,641 1,475,686,706 3,044,262,347 0.19% 0.01% 2024 3,073,266 99,078 [1] 3,023,486 100% 1,640,416,041 1,538,201,879 3,178,617,920 0.19% 0.01% 2025 6,013,243 - [1] 6,013,243 100% 1,707,992,043 1,581,861,725 3,289,853,768 0.35% 0.00% Source: Contra Costa County
Notes:

City of Pinole
Property Tax Levies and Collections
Last Ten Fiscal Years
[1] The City of Pinole serves as the Successor Agency to the Pinole Redevelopemnt Agency which dissolved effective 02/01/2012 pursuant to State Law (ABx1-26). $1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Levied & Collected
$0.80
$1.30
$1.80
$2.30
$2.80
$3.30
$3.80
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Billions
Assessed Value
161

2015-16 2016-17 2017-18 2018-19 2019-20
Major Business Groups
Autos and Transportation 143,531 $ 142,634 $ 129,758 $ 149,328 $ 125,285 $ Building and Construction 235,399 256,743 252,433 248,668 240,333 Business and Industry 74,664 69,064 68,148 81,173 80,562 Food and Drugs 354,347 366,064 376,151 408,251 422,665
Fuel and Service Stations 393,583 355,390 362,450 482,117 370,686 General Consumer Goods 1,298,176 1,343,309 1,347,691 1,323,599 1,110,168 Restaurants and Hotels 711,659 715,966 715,885 813,411 724,290 Adjustments & Others [a] 24,448 - 506 5,972 1,211
Point of Sale s/totals 3,235,807 3,249,170 3,253,022 3,512,519 3,075,200 County Pool Allocations 431,500 499,708 490,660 519,400 747,782 State Pool Allocations 2,400 2,637 1,903 1,829 1,710
Local Transaction Tax 3,789,711 3,953,872 4,089,586 4,402,698 3,944,917 Administrative Cost - SBE (82,268) (95,537) (90,183) (87,797) (79,691) Fiscal Year Totals 7,377,150 $ 7,609,850 $ 7,744,988 $ 8,348,649 $ 7,689,918 $ City Direct Sales Tax Rate 1.75% 1.75% 1.75% 1.75% 1.75% Notes:
[a]
[b] Effective 04/01/15 additional 1/2% local transaction tax (Measure "S" 2014) authorized [c] Effective 04/01/25 additional 1/2% local transaction tax (Measure "I") authorized Source: HdL Coren & Cone
City of Pinole
Taxable Sales by Category
Last Ten Fiscal Years
"Adjustment" reflects "True-up" reconciliation payment for "Triple-Flip" Reimbursement for State Fiscal Recovery Bond Financing Program. 162

2020-21 2021-22 2022-23 2023-24 2024-25
Major Business Groups
Autos and Transportation 131,364 $ 145,204 $ 141,027 $ 154,626 $ 154,699 $ Building and Construction 287,086 253,926 236,384 206,948 215,993 Business and Industry 66,279 79,061 69,661 59,575 80,476 Food and Drugs 467,507 435,658 440,943 437,077 433,376
Fuel and Service Stations 412,186 596,460 351,757 343,203 335,807 General Consumer Goods 1,299,328 1,333,100 1,364,953 1,443,935 1,428,581 Restaurants and Hotels 741,032 936,053 1,011,530 1,047,325 1,034,060 Adjustments & Others 484 5,260 11,511 3,620 3,962
Point of Sale s/totals 3,405,266 3,784,722 3,627,766 3,696,309 3,686,954 County Pool Allocations 927,704 861,541 798,304 744,707 827,777 State Pool Allocations 2,650 343 1,966 2,329 1,696
Local Transaction Tax [a] 4,654,311 5,041,168 4,976,048 5,051,749 5,620,815 Administrative Cost - SBE (62,570) (74,149) (75,735) (64,876) (71,242) Fiscal Year Totals 8,927,361 $ 9,613,625 $ 9,328,349 $ 9,430,218 $ 10,066,000 $ City Direct Sales Tax Rate 1.75% 1.75% 1.75% 1.75% 2.25% Notes:
[a]
[b] Effective 04/01/15 additional 1/2% local transaction tax (Measure "S" 2014) authorized. [c] Effective 04/01/25 additional 1/2% local transaction tax (Measure "I") authorized.

Source: HdL Coren & Cone
"Adjustment" reflects "True-up" reconciliation payment for "Triple-Flip" Reimbursement for State Fiscal Recovery Bond Financing Program.

City of Pinole
Taxable Sales by Category (Continued)
Last Ten Fiscal Years
163

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Taxing Jurisdiction / Purpose [c]
Overlapping Sales Taxes
State General Fund 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% State Fiscal Recovery Fund 0.25% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% State Education Protection Account 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% County Health & Welfare Programs 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% [a] City/County Public Safety Programs 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% County of Contra Costa Transactions and Use Tax 0.00% 0.00% 0.00% 0.00% 0.00% 0.50% 0.50% 0.50% 0.50% 0.50% Contra Costa Transportation Authority 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Bay Area Rapid Transit 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% West County Transit Authority 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% Overlapping Sales Taxes 7.75% 7.50% 7.50% 7.50% 7.50% 8.00% 8.00% 8.00% 8.00% 8.00% City Direct Sales Taxes
Bradley Burns Authority 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% [b] Measure "S" Authority - 2006 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% [c] Measure "S" Authority - 2014 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% [c] Measure "I" Authority 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.50% Direct Sales Taxes 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 2.25% [d] Total Sales Tax Levy - City of Pinole 9.50% 9.25% 9.25% 9.25% 9.25% 9.75% 9.75% 9.75% 9.75% 10.25% Notes:
[a] Effective 01/01/94 SCA-1 (Proposition-172) additional 1/2% statewide sales tax restricted to public safety programs [b] Effective 04/01/07 additional 1/2% local transaction tax (Measure "S" 2006) authorized [c] Effective 04/01/15 additional 1/2% local transaction tax (Measure "S" 2014) authorized [d] The City direct sales tax rate may only be changed with ratification by the electors of the City. The maximum levy permited by the State Legislature for combined direct and overlapping sales tax is 10.25% [e] Effective 04/01/25 additional 1/2% local transaction tax (Measure "I") authorized Source: California Department of Tax and Fee Administration City of Pinole
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
164

BUSINESS NAME BUSINESS CATEGORY

1. 7 ELEVEN SERVICE STATIONS

2. APPIAN CHEVRON SERVICE STATIONS

3. BEST BUY ELECTRONICS/APPLIANCE STORES

4. BEVMO CONVENIENCE STORES/LIQUOR

5. BURLINGTON COAT FACTORY FAMILY APPAREL

6. DOLAN'S PINOLE LUMBER BUILDING MATERIALS

7. DOLLAR TREE GENERAL CONSUMER GOODS

8. FOOD MAXX GROCERY STORES

9. HOME GOODS FURNITURE STORES

10. IN-N-OUT BURGER QUICK-SERVICE RESTAURANTS

11. MCDONALDS QUICK-SERVICE RESTAURANTS

12. NORDSTROM FAMILY APPAREL

13. O'REILLY AUTO PARTS AUTOMOTIVE SUPPLY STORES

14. ORIGINAL MELS DINER QUICK-SERVICE RESTAURANTS

15. PANDA EXPRESS LIMITED-SERVICE RESTAURANTS

16. PETSMART SPECIALTY STORES

17. PINOLE CHEVRON SERVICE STATIONS

18. PINOLE SHELL SERVICE STATIONS

19. PINOLE VALLEY ARCO SERVICE STATIONS

20. SHOE PALACE GROCERY STORES

21. TARGET DISCOUNT DEPARTMENT STORES

22. TJ MAXX FAMILY APPAREL

23. TRADER JOES GROCERY STORES

24. ULTA BEAUTY SPECIALTY STORES

25. WESTLAKE ACE HARDWARE BUILDING MATERIALS
PERCENT OF FISCAL YEAR TOTAL PAID BY TOP 25 ACCOUNTS = 55.61% Source: State Board of Equilization (HdL Companies)
Note: Information is shown in alphabetical order.

City of Pinole
Top 25 Sales Tax Producers
Year Ended June 30, 2025
165

Fiscal
Year
Pension Obligation
Bonds Leases Payable
Subscription
Payable
Wastewater
Revenue Bonds
Clean Water
State Revolving
Fund
Total Primary
Government
Percentage
of Personal
Income Per Capita
2016 3,941,977 $ 402,514 $ - $ 8,251,000 $ - $ 12,595,491 $ 2.0% 665 $ 2017 3,686,615 294,724 - 7,866,000 6,786,599 18,633,938 2.9% 982 2018 3,436,175 183,490 - 7,576,000 15,164,357 26,360,022 4.0% 1,370 2019 3,194,853 68,695 - 7,278,000 21,741,571 32,283,119 4.5% 1,656 2020 2,961,839 - - 6,968,000 25,456,833 35,386,672 4.7% 1,814 2021 2,734,450 - - 6,650,000 24,773,976 34,158,426 4.2% 1,764 2022 2,512,885 72,619 118,626 6,321,000 24,105,950 33,131,080 4.1% 1,779 2023 2,297,299 56,609 176,570 5,980,000 23,426,566 31,937,044 3.8% 1,751 2024 2,089,509 30,976 199,399 5,633,000 22,735,634 30,688,518 3.2% 1,687 2025 1,886,188 77,290 135,095 5,271,000 22,032,956 29,402,529 3.1% 1,610 Notes: Details regarding the City's outstanding debt can be found in Note 7 of the financial statements.

Governmental Activities
City of Pinole
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business-type Activities
166

Fiscal Year
Pension Obligation
Bonds
Bonds Paid with Restricted
Redevelopment Tax
Increments
Total - Net of Bonds
Paid with Restricted Tax
Levies
Percentage of
Taxable Value of
Property Per Capita
2016 3,941,977 $ - $ 3,941,977 $ 0.38% [a] 210 $
2017 3,986,615 - 3,986,615 0.36% [a] 210
2018 3,436,175 - 3,436,175 0.29% [a] 179
2019 3,194,853 - 3,194,853 0.26% [a] 164
2020 2,961,839 - 2,961,839 0.22% [a] 152
2021 2,734,450 - 2,734,450 0.19% [a] 141
2022 2,512,885 - 2,512,885 0.17% [a] 135
2023 2,297,299 - 2,297,299 0.15% [a] 126
2024 2,089,509 - 2,089,509 0.13% [a] 115
2025 1,886,188 - 1,886,188 0.11% [a] 103
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. [a]
[b]
Sources:

City Finance Department
Contra Costa County Office of the Auditor-Controller
Based on Assessment Value net of restricted Redevelopment Tax Increment Due to the dissolution of Redevelopment Agencies effective February 1, 2012, these bonds and notes were transferred to the Successor Agency to the Pinole Redevelopment Agency.

City of Pinole
Ratios of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
General Bonded Debt Outstanding
167

2024-25 Assessed Valuation: 3,312,485,276 $
Total Debt [1] City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2025 % Applicable Debt 6/30/25 Bay Area Rapid Transit District 2,391,260,000 $ 0.316% 7,556,382 $ Contra Costa Community College District 591,875,000 1.189% 7,037,394 West Contra Costa Unified School District 1,279,679,975 7.669% 98,138,657 West Contra Costa Healthcare District Parcel Tax Obligations 40,155,000 7.031% 2,823,298 East Bay Regional Park District 145,930,000 0.493% 719,435 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 116,275,165
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Contra Costa County General Fund Obligations 150,845,000 $ 1.185% 1,787,513 $ West Contra Costa Unified School District Certificates of Participation 2,845,000 7.669% 218,183 City of Pinole Pension Obligation Bonds 1,886,188 100.000% 1,886,188 City of Pinole Leases Payable 77,290 100.000% 77,290
City of Pinole Subscription payable 135,095 100.000% 135,095 Alameda-Contra Costa Transit District Certificates of Participation 9,600,000 0.031% 2,976 Contra Costa Mosquito and Vector Control District General Fund Obligations 8,050,000 1.185% 95,393 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT 4,202,638 $ Less: Contra Costa County obligations supported from revenue funds 406,907 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 3,795,731 $ TOTAL DIRECT DEBT $ 2,098,573
TOTAL GROSS OVERLAPPING DEBT $ 118,379,229
TOTAL NET OVERLAPPING DEBT $ 117,972,322
GROSS COMBINED TOTAL DEBT $ [2] 120,477,802
NET COMBINED TOTAL DEBT $ 120,070,895
Ratios to 2024-25 Assessed Valuation:

Total Overlapping Tax and Assessment Debt.....................................….... 3.51% Total Direct Debt ($1,890,944)...................................…........................... 0.06% Gross Combined Total Debt........................................................................ 3.64% Net Combined Total Debt ……………………...……………..…….………3.62%
Notes:
[2] Excludes tax and revenue anticipation notes, enterprise revenue, and mortgage revenue.

Source : California Municipal Statistics, Inc.
[1] The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.

June 30, 2025
Direct and Overlapping Governmental Activities Debt
City of Pinole
168

ASSESSED VALUATION:

Secured property assessed value, net of exempt real property 3,289,853,768 $ BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) [a] 123,369,516 $ AMOUNT OF DEBT SUBJECT TO LIMIT: $ 1,886,188
LEGAL BONDED DEBT MARGIN: $ 125,255,704
Fiscal Year
Total assessed value of
all real and personal
property Debt Limit [a]
Total Net Debt
Applicable to Limit Legal Debt Margin
Total net Debt
applicable to the limit as
a percentage of debt
limit
2016 2,085,916,313 $ 78,221,862 $ 3,941,977 $ 74,279,885 $ 5.04% 2017 2,205,694,206 82,713,533 3,686,615 79,026,918 4.46% 2018 2,333,724,165 87,514,656 3,436,176 84,078,480 3.93% 2019 2,481,298,242 93,048,684 3,194,854 89,853,830 3.43% 2020 2,635,232,011 98,821,200 2,961,839 95,859,361 3.00% 2021 2,751,401,537 103,177,558 2,734,450 100,443,108 2.65% 2022 2,844,955,429 106,685,829 2,512,885 104,172,944 2.36% 2023 3,044,262,347 114,159,838 2,297,299 111,862,539 2.01% 2024 3,178,617,920 119,198,172 2,089,509 117,108,663 1.75% 2025 3,289,853,768 123,369,516 1,886,188 121,483,328 1.53% Note:

Source: City of Pinole Finance Department
[a] California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in basing assessed value to full market value when it was previously 25 % of market value. Thus, the limit shown as 3.75% is one-fourth the limit to account for the adjustment of showing assessed valuation at full cash value.

City of Pinole
Computation of Legal Debt Margin
Last Ten Fiscal Years
169

Net Revenue
Fiscal Gross Operating Available for
Year Revenue [a] Expenses [b] Debt Service Principal Interest Total Coverage 2016 7,541,964 $ 4,688,712 $ 2,853,252 $ 240,000 $ 387,310 $ 627,310 $ 4.55 2017 6,315,563 4,055,187 2,260,376 385,000 157,267 542,267 4.17 2018 6,524,537 4,676,225 1,848,313 290,000 227,770 517,770 3.57 2019 7,211,834 4,413,017 2,798,818 298,000 219,097 517,097 5.41 2020 7,093,734 4,986,437 2,107,297 310,000 210,129 520,129 4.05 2021 7,527,056 6,067,198 1,459,858 318,000 200,866 518,866 2.81 2022 7,770,772 6,736,755 1,034,017 329,000 191,322 520,322 1.99 2023 7,831,703 5,787,622 2,044,081 341,000 181,440 522,440 3.91 2024 8,114,292 6,812,685 1,301,607 347,000 171,292 518,292 2.51 2025 8,823,158 7,051,724 1,771,434 362,000 160,834 522,834 3.39 Notes:
[a] Includes all wastewater operating revenue, non-operating interest revenue, connection fees and other non-operating revenue. [b] Includes all wastewater operating expenses less depreciation.

Source: City of Pinole Finance
City of Pinole
Revenue Bond Coverage
Wastewater Revenue Bonds
Last Ten Fiscal Years
Debt Service Requirements

0.00 1.00

2.00 3.00

4.00 5.00

6.00 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Coverage
170

Fiscal Year
City Population
[a] Personal Income [b]
Median
Household
Income [c]
Per Capita
Personal
Income [d]*
School
Enrollment [e]
Unemployment
Rate [f]
2016 18,739 641,229,841 $ 93,600 $ 34,219 $ 3,260 $ 4.9% 2017 18,975 650,823,525 97,400 34,299 3,192 4.1%
2018 19,236 656,582,388 104,400 34,133 3,190 3.5%
2019 19,498 711,306,538 111,700 36,481 3,255 3.2%
2020 19,505 749,869,725 119,200 38,445 3,463 13.2%
2021 19,369 811,851,635 125,600 41,915 3,498 7.0%
2022 18,628 811,826,868 142,800 43,581 3,802 3.0%
2023 18,244 839,333,464 147,900 46,006 3,747 2.7%
2024 18,192 904,833,696 155,700 49,738 3,739 3.3%
2025 18,261 960,327,729 159,800 52,589 3,822 3.0%
Data Sources:
(a) State of California Department of Finance, estimated population. (b) Bureau of Economic Analysis, U.S. Department of Commerce. (c) State of California, Department of Housing and Community Development, Division of Housing Policy Development. (d) US Census Bureau.
(e) State of California Department of Education.
(f) State of California Employment Development Department. *Per Capita Personal Income figures were revised to reflect the US Census Bureau most recent publications.

City of Pinole
Demographic Statistics
Last Ten Fiscal Years

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%
Unemployment Rate
17,500
18,000
18,500
19,000
19,500
20,000
City Population
171

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172

Employer
Employee
Count
Percentage of City
Total Employer
Employee
Count
Percentage of City
Total
Target 224 2.33% West Contra Costa USD 273 6.01%
Kaiser Health Center 174 1.81% Target 210 4.62%
West Contra Costa USD 160 1.67% Kaiser Health Center 123 2.71% In-N-Out Burger 125 1.30% City of Pinole 106 2.33%
Trader Joes 124 1.29% In-N-Out Burger 105 2.31%
City of Pinole 113 1.18% Best Buy 98 2.16%
Sprouts Farmers Market 99 1.03% K-Mart 95 2.09%
Security Pacific Real Estate 90 0.94% Lucky Supermarket 83 1.83% MV Public Transportation, Inc 84 0.88% MV Public Transportation, Inc. 79 1.74% TJ Maxx 78 0.81% Trader Joe's 69 1.52%
Top 10 Employer Count 1,271 1,241
Total Workforce 9,600 13.24% 4,544 27.31%
Data Sources:

City of Pinole (Business Licensing)
California Department of Education
Employment Development Department
City of Pinole
Current and Nine Years Ago
2025 2016
Principal Employers
173

Date of Incorporation 1903
Form of Government Council-Manager
Number of Employees(including police & fire)
Full-time 100
Part-time 31
Area in square miles 5 square miles
Statistics by Fiscal Year 2025 2024 2023 2022 2021
Fire Protection:**
Number of fire personnel & officers (incl. Reserves) 0 0 0 17 15 Number of calls answered Not Available Not Available Not Available 2,548 2,086 Number of inspections conducted Not Available Not Available Not Available 491 375* Number of building plan reviews Not Available Not Available Not Available 46 35 Number of fire investigations Not Available Not Available Not Available Not Available Not Available Police Protection :

Number of police personnel & officers (incl. Reserves) 45 49.3 49.3 47.3 46 Number of police personnel per thousand population 2.46 2.71 2.70 2.54 2.37

Community Development:

Number of residential building permits 1090 1134 1018 1038 905 Valuation of residential building permits 15,644,541 $ 15,523,604 $ 29,010,799 $ 12,320,050 $ 8,978,646 $ Number of commercial building permits 37 43 46 45 45
Valuation of commercial building permits 5,366,774 $ 4,170,802 $ 6,281,089 $ 2,197,897 $ 2,453,802 $ Sewer System:

Daily average treatment in gallons 2,790,000 2,870,000 3,120,000 2,726,016 2,553,562 Maximum daily capacity of treatment plant in gallons 4,060,000 4,060,000 4,060,000 4,060,000 4,060,000 Source: City of Pinole Finance
*A contributing factor to the increase is the implementation of the Fire operation permit. ** Fire Protection Services are provided by ConFire effective March 2023 City of Pinole
Operating Indicators by Function/Program
Last Ten Fiscal Years
0 5000000
10000000
15000000
20000000
25000000
30000000
35000000
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Valuation of residential building permits
Valuation of commercial building permits
174

Date of Incorporation 1903
Form of Government Council-Manager
Number of Employees(including police & fire)
Full-time 100
Part-time 31
Area in square miles 5 square miles
Statistics by Fiscal Year 2020 2019 2018 2017 2016
Fire Protection:**
Number of fire personnel & officers (incl. Reserves) 15 15 15 15 15 Number of calls answered 2,574 2,493 2,515 2,647 2,406
Number of inspections conducted 231 168 26 45 404
Number of building plan reviews 29 28 14 34 66
Number of fire investigations Not Available Not Available Not Available Not Available Not Available Police Protection :

Number of police personnel & officers (incl. Reserves) 46 46 41 41.5 41.5 Number of police personnel per thousand population 2.36 2.36 2.13 2.19 2.21

Community Development:

Number of residential building permits 843 749 690 777 1027 Valuation of residential building permits 7,043,338 $ 8,012,647 $ 7,293,429 $ 8,613,376 $ 11,969,126 $ Number of commercial building permits 43 153 84 92 46
Valuation of commercial building permits 2,749,091 $ 4,354,070 $ 11,752,779 $ 2,275,774 $ 8,053,064 $ Sewer System:

Daily average treatment in gallons 2,255,055 2,277,331 2,151,096 2,914,000 2,381,151 Maximum daily capacity of treatment plant in gallons 4,060,000 4,060,000 4,060,000 4,060,000 4,060,000 *A contributing factor to the increase is the implementation of the Fire operation permit. ** Fire Protection Services are provided by ConFire effective March 2023 Last Ten Fiscal Years
Operating Indicators by Function/Program (Continued)
City of Pinole
0 10
20 30
40 50
60 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Number of police personnel & officers (incl. Reserves)
Number of police personnel per thousand population
175

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176

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function / Program [a]
General government
Administration 5.0 5.0 5.0 5.5 5.5 6.5 7.5 9.0 8.3 8.3
Finance 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.8 3.8
Planning 1.0 1.0 1.0 1.0 1.0 1.5 2.0 2.0 2.0 3.0
Building 2.0 2.5 3.5 3.5 4.0 4.0 5.0 5.5 5.5 6.0
Other 3.0 3.0 3.0 3.0 2.8 3.8 - - - -
Police
Sworn 27.0 27.0 28.0 28.0 28.0 28.0 28.0 30.0 30.0 28.0 Non-sworn 14.5 14.5 17.5 18.0 18.5 18.2 19.3 19.3 19.3 19.3 Fire [b]
Sworn 15.0 14.0 14.0 14.0 14.0 14.0 16.0 - - -
Non-sworn 0.5 1.0 1.0 1.0 1.0 1.0 1.0 - - -
Public Works
Engineering 3.0 3.0 3.0 3.0 3.0 2.5 4.0 6.5 6.5 6.0
Maintenance 10.0 10.0 10.0 10.0 11.3 10.3 12.3 12.3 12.3 12.3 Redevelopment - - - - - - - - - -
Parks and recreation 13.0 13.0 13.0 13.0 11.5 11.5 15.3 16.2 16.2 16.2 Wastewater collection and treatment 10.5 10.5 10.5 10.5 10.5 10.5 11.5 11.5 11.5 10.5 Total 108.0 108.0 113.0 114.0 114.4 115.2 125.2 115.6 115.1 113.2 Notes:
[a] Paid employees only (excluding reserves and volunteers) [b] Fire protection services are provided by ConFire effective March 2023.

Source: City of Pinole Annual Budget Documents
City of Pinole
Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
177

City Streets:

Miles of streets 63
Number of street lights 374 (city owned)
971 (electric & private utility)
Statistics by Fiscal Year 2025 2024 2023 2022 2021
Police Protection :

Number of patrol units 11 13 11 11 13
Number of security units 22322

Recreation and culture :

Swim Center 11111
Community Theater 11111
Senior Center 11111
Youth Center 11111
Pre-school Center 11111
Number of parks & park acreage
15; 64 total
acres
15; 64 total
acres
15; 64 total
acres
15; 64 total
acres
15; 64 total
acres
Sewer System:

Sanitary sewers 50 miles 50 miles 50 miles 50 miles 50 miles Miles of storm drains 34 miles 34 miles 34 miles 34 miles 34 miles Number of treatment plants 11111
Number of service connections 5,455 5,455 5,455 5,416 5,416 Schools:

Elementary-public 55555
Elementary-private 22222
Junior High School-public 11111
High School-public 11111
*Fire protection services are provided by ConFire
Source: City of Pinole Finance
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
City of Pinole
178

City Streets:

Miles of streets 63
Number of street lights 374 (city owned)
971 (electric & private utility)
Statistics by Fiscal Year 2020 2019 2018 2017 2016
Police Protection :

Number of patrol units 13 13 13 13 13
Number of security units 22222

Recreation and culture :

Swim Center 11111
Community Theater 11111
Senior Center 11111
Youth Center 11111
Pre-school Center 11111
Number of parks & park acreage
15; 64 total
acres
15; 64 total
acres
15; 64 total
acres
15; 64 total
acres
15; 64 total
acres
Sewer System:

Sanitary sewers 50 miles 50 miles 50 miles 50 miles 50 miles Miles of storm drains 34 miles 34 miles 34 miles 34 miles 34 miles Number of treatment plants 11111
Number of service connections 5,416 5,416 5,416 5,416 5,416 Schools:

Elementary-public 55544
Elementary-private 22222
Junior High School-public 11111
High School-public 11111
City of Pinole
Capital Asset Statistics by Function/Program (Continued) Last Ten Fiscal Years
179

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180

6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of Pinole
Pinole, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Pinole, California (the “City”), as of and for the year ended June 30, 2025, and the related notes to the basic financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated December 17, 2025.

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

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

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.