Agenda packet — Pittsburg City Council, April 6, 2026 (part 1 of 3)

CITY OF PITTSBURG
AGENDA

APRIL 6, 2026

CITY HALL COUNCIL CHAMBER
65 CIVIC AVENUE, PITTSBURG, CA

REGULAR MEETING
7:00 PM

CITY COUNCIL

PITTSBURG ARTS AND COMMUNITY FOUNDATION

PITTSBURG POWER COMPANY

SOUTHWEST PITTSBURG GEOLOGIC HAZARD ABATEMENT DISTRICT II

SUCCESSOR AGENCY

PRESIDING
Mayor/Chair • Dionne Adams
Vice-Mayor/Chair • Angelica Lopez
Council Member/Board Member • Juan Antonio Banales
Council Member/Board Member • Arlene Kobata
Council Member/Board Member • Jelani Killings

FOR HOUSING AUTHORITY
Housing Authority Member • S.L. Floyd
Housing Authority Member • Annie Hill Herring

Pittsburg City Council regular meetings are held the first and third Mondays of each month at 7:00 p.m. The Housing Authority meets in conjunction with the City Council on the third Monday of each month. The Pittsburg City Council meets regularly in the Council Chamber at 65 Civic Avenue, unless otherwise noted above. The City Council also sits as the Board of Directors of several other City agencies. The stipends for all agency members conform to state statutes governing compensation amounts. All other Agencies meet on an as needed basis and will be listed above if applicable. Copies of the open session agenda packets, which are distributed to the City Council, are on file in the office of the City Clerk, 65 Civic Avenue, Pittsburg, California, and are available for public inspection, beginning 72 hours in advance, during normal business hours (8:00 a.m. – 5:00 p.m., Monday through Friday, except from noon to 1:00 p.m. and City holidays). The agenda and reports are also located on the City’s website at www.pittsburgca.gov. Additionally, if any reports or documents, which are public records, are distributed to the City Council less than 72 hours before the meeting, those reports and documents will also be available for public inspection in the City Clerk’s Office and on the day of the meeting in the Council Chamber at the public counter area below the dais.

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7:00 PM - CONVENE IN OPEN SESSION FOR REGULAR MEETING

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

PRESENTATIONS

1. Youth and Government

PROCLAMATIONS
The standing proclamation(s) were published as part of the agenda. The proclamation(s) will be posted on the City's website and social media accounts as appropriate.

2. Th!nk Pittsburg - Tandoori Pizza

3. National Sexual Assault Awareness Month

4. National Fair Housing Month

PUBLIC COMMENTS
Members of the audience who wish to address the City Council or Agency Boards on issues that are not scheduled for the agenda and on any items listed as part of the Consent Calendar should complete a Speaker's Card available at the dais.

Please read the card carefully in order to fill out the card properly. Submit the completed card to the City Clerk before the item is called, preferably before the meeting begins. Individuals will be given three minutes to address the Council unless additional time is allowed as provided for spokespersons. Prior to speaking, each member of the public shall state their name and business and City of residence in a clear and audible tone of voice. (No Action Required)

CITY MANAGER REPORTS/REMARKS
The City Manager may make brief announcements or informal comments at this time and brief the Council on items of interest. (No Action Required)

COMMITTEE REPORTS
Council Members may make a report on their committee assignments at this time. (see attached list of adhoc committees and other public agencies in which Council members participate). (No Action Required)

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COMBINED CITY COUNCIL, PITTSBURG ARTS AND COMMUNITY

FOUNDATION, PITTSBURG POWER COMPANY, SOUTHWEST PITTSBURG

GHAD II AND SUCCESSOR AGENCY CONSIDERATION

5. Adoption of a City Council Resolution Accepting the Plans and Specifications, Allocating Additional Funds, Amending Fiscal Year 2025-26 CIP Budget, and Awarding Project 4079-Linscheid Drive Traffic Calming Phase I

Project 4079-Linscheid Drive Traffic Calming Phase I (Project) is for the installation of one roundabout and striping and signage at the intersection of Linscheid Drive and Madoline Street. Adoption of this resolution will allocate additional funds, amend the CIP Budget, accept the Project plans and specifications, and award a construction contract to Modernscapes Innovations.

6. Adoption of City Council, Pittsburg Arts and Community Foundation, Pittsburg Power Company, SW Pittsburg Geologic Hazard Abatement District II and Successor Agency for the Redevelopment Agency of the City of Pittsburg Resolutions Amending the Fiscal Year 2025-26 Budget Based on Year-End Revenue and Expenditure Projections

Staff has completed a Mid-Year Review of the Fiscal Year 2025-26 budget and has determined that budget adjustments are necessary to meet year- end projections.

CONFLICT OF INTEREST STATEMENT
City Council/Agency Members may make any conflict of interest declarations pertaining to Consent Calendar items at this time.

COMBINED CITY COUNCIL, PITTSBURG ARTS AND COMMUNITY

FOUNDATION, PITTSBURG POWER COMPANY, SOUTHWEST PITTSBURG

GHAD II AND SUCCESSOR AGENCY CONSENT CALENDAR

7. Minutes of March 16, 2026

8. Receive and File Report on the Review of Development Impact Fees Received by the City of Pittsburg Pursuant to Mitigation Fee Act

The Mitigation Fee Act, passed as Assembly Bill 1600 in 1987 (Government Code Sections 66000–66008), requires cities to justify and account for developer fees which they enact, increase or impose as a condition of new development for the purposes of financing “public facilities and improvements.” The Act also requires an annual review of the developer fees that have been collected and spent during the previous year. This report fulfills the Act's requirements.

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9. Receive and File Annual Comprehensive Financial Report and Other Audit Reports for the Fiscal Year Ended June 30, 2025

The Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2025, has been completed and complies with the Government Accounting Standards Board (GASB) reporting
requirements. The City has received an unqualified or “clean opinion” issued by the City’s auditing firm, Badawi & Associates.

10. Adoption of a City Council Resolution Accepting the Plans and Specifications, Allocating Additional Funds, Amending Fiscal Year 2025-26 CIP Budget, and Awarding Project 2043- Zone 7 Pavement Management Phase 1

Project 2043 - Zone 7 Pavement Management Phase 1 (Project) will rehabilitate streets within Pavement Management Zone 7 and increase their useful life. Various forms of pavement treatments will be utilized, such as crack seal, micro-surfacing, cape seal, three-layer treatment, base repair, and mill and overlay. Adoption of this resolution will allocate additional funds, amend the fiscal year (FY) 2025/26 CIP budget, accept the Project plans and specifications, and award a construction contract to American Pavement Systems, Inc.

11. Adoption of a City Council Resolution Authorizing the City Manager to Execute a Consulting Services Agreement with Raney Planning & Management, Inc. for Further Environmental Review for the Faria Development Project and Amending Fiscal Year 2025-26 Budget

The item would authorize the City Manager to execute a Consulting Services Agreement with Raney Planning & Management, Inc. for environmental review services to comply with the California Environmental Quality Act (CEQA) for the Faria Development Project, AP-25-0050, a proposed residential subdivision on a 606-acre site.

12. Adoption of a City Council Resolution Accepting the Public Improvements for Subdivision 8654, Tuscany Meadows Unit 1

All of the required in tract and off-site public improvements constructed for Subdivision 8654, a 95-single family home development east of Highlands Ranch also known as Tuscany Meadows Unit 1, are complete and ready to be accepted for continuous maintenance.

13. Adoption of a City Council Resolution Authorizing the City Manager to Execute a First Amendment to the Consulting Services Agreement with Placeworks Inc. for Preparation of the Pittsburg Municipal Code Title 18 and Zoning Map Updates and Amending Fiscal Year 2025-26 Budget

On May 6, 2024, the City Council adopted Resolution No. 24-14464 adopting the 2040 General Plan, setting forth a policy framework to guide the city’s long-term growth and development. As part of the implementation of the 2040 General Plan, the City must update the Pittsburg Municipal Code

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(PMC) Development Title 18 and the City Zoning Map to be consistent with the 2040 General Plan. Staff recommends authorizing execution of the First Amendment to the consulting services agreement with Placeworks Inc. (Placeworks) to complete the PMC Title 18 and Zoning Map updates.

COUNCIL REQUEST FOR FUTURE AGENDA ITEMS
Council Members may request items to be considered for future agendas. An item will only be brought forward with a majority vote and will appear on a future agenda with staff recommendations for further Council consideration.

COUNCIL MEMBER REMARKS
Council Members may make brief announcements or informal comments at this time. (No Action Required)

ADJOURNMENT TO APRIL 20, 2026
City Council/Agency Members may make any conflict of interest declarations pertaining to Consent Calendar items at this time.

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NOTICE TO PUBLIC

GENERAL INFORMATION
Copies of the open session agenda packets, as distributed to the City Council, are on file in the office of the City Clerk, 65 Civic Avenue, Pittsburg, California, and are available for public inspection, beginning 72 hours in advance, during normal business hours (8:00 a.m. – 5:00 p.m., Monday through Friday, except City holidays). Full agenda packets are also located on the City’s website at www.pittsburgca.gov. If any reports or documents, which are public records, are distributed to the City Council less than 72 hours before the meeting, those reports or documents will be available for public inspection in the City Clerk’s Office and on the day of the meeting in the Council Chamber at the public counter area below the dais.

SPEAKER’S CARD
Members of the audience who wish to address the City Council on issues that are not scheduled for the agenda and on any items listed as part of the agenda should complete a Speaker’s Card available at the dais. Please read the card carefully in order to fill out the card properly. Submit the completed card to the City Clerk before the item is called, preferably before the meeting begins. Individuals will be given up to three minutes to address the Council unless additional time is allowed as provided for spokespersons. Speakers are not permitted to yield their time to another speaker. Prior to speaking, each member of the public shall state their name and business and City of residence in a clear and audible tone of voice. Pursuant to the Brown Act, no action may be taken by the City Council on items not already scheduled on the agenda; however, the City Council may refer your comments/concerns to staff or request that the item be placed on a future agenda.

PUBLIC HEARINGS
Persons who wish to speak on Public Hearings listed on the agenda will be heard when the Public Hearing is opened, except on Public Hearing items previously heard and closed to public comment. After the public has commented, the item is closed to public comment and brought to the Council/Agency level for discussion and action.

Further comment from the audience will not be received unless requested by the Council/Agency.

There is a 90-day limit for the filing of a challenge in the Superior Court to certain City administrative decisions and orders which require a hearing by law, the receipt of evidence, and the exercise of discretion. The 90-day limit begins on the date the decision is final (Code of Civil Procedure Section 1094.6). Further, if you challenge an action taken by the City Council in court, you may be limited, by California law, including but not limited to Government Code Section 65009, to raising only those issues you or someone else raised in the public hearing, or in written correspondence delivered to the City Council prior to or at the public hearing. The City Council may be requested to reconsider a decision if the request is made prior to the next City Council meeting, regardless of whether it is a regular or special meeting.

NOTICE TO THE DISABLED AND VISUALLY OR HEARING IMPAIRED In compliance with the Americans with Disabilities Act, the City of Pittsburg will provide special assistance for disabled residents. Upon request, an agenda for any meeting shall be made available in appropriate alternative formats. The Council Chamber is equipped with sound amplifier units for use by the hearing impaired. The units operate in conjunction with the Chamber’s sound system. You may request the sound amplifier from the City Clerk for personal use during Council meetings. If you need special assistance to participate in this meeting, or are requesting a specially formatted agenda, please contact the City Clerk at (925) 252-4850. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting or provide the requested agenda format. (28 CFR 35.102-35.104 ADA Title II)

DISRUPTIVE CONDUCT
The Council requests that you observe the order and decorum of our Council Chamber by turning off or setting to vibrate all cellular telephones and electronic devices, and that you refrain from making personal, impertinent, or slanderous remarks. Boisterous and disruptive behavior while the Council is in session, and the display of signs in a manner which violates the rights of others or prevents others from watching or fully participating in the Council meeting, is a violation of our Municipal Code and any person who engages in such conduct can be ordered to leave the Council Chamber by the Mayor.

LIVE MEDIA BROADCASTING ADVISEMENT
City Council meetings are webcast live on the City’s website at www.pittsburgca.gov on the Agendas and Live Meetings page. Past meetings and approved minutes are also archived on that webpage. Watch the live meeting via the City’s webcast (www.pittsburgca.gov - Agendas and Live Meetings), on Comcast Channel 24 Delta TV, AT&T U- Verse Channel 99 Delta TV. Contact the City Clerk’s office at (925) 252-4850 for more information

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City Council Agency/Liaison/Subcommittee Assignments as of March 26, 2026

OUTSIDE AGENCY BOARDS COUNCIL MEMBER(S) TYPE MEETS TIME STAFF ABAG Dionne Adams / Jelani Killings (Alt.) Standing Annual D.Gale/M. Aliotti Delta Diablo* Jelani Killings / Arlene Kobata (Alt.) Standing 2nd Wednesday 4:30 PM J. Samuelson East Co. Co. County Habitat Conservancy Arlene Kobata / Juan Banales (Alt.) Standing 4th Monday (Bi-Monthly) 2:00 PM J. Davis East County Water Management Juan Banales / Jelani Killings (Alt.) Standing Bi-Annual 1:00 PM J. Samuelson MCE Clean Energy Board Arlene Kobata / Angelica Lopez (Alt.) Standing 3rd Thursday 6:30 PM J. Davis TRANSPLAN / ECCRFFA Juan Banales / Dionne Adams (Alt.) Standing 2nd Thursday 6:30 PM J. Samuelson Tri-Delta Transit (2 reps)** Angelica Lopez & Dionne Adams / Jelani Killings (Alt.) Standing 4th Wednesday 4:00 PM J. Samuelson

LIAISON COUNCIL MEMBER(S) TYPE MEETS TIME STAFF
East Bay League of California Cities Dionne Adams / Angelica Lopez (Alt.) Standing 3rd Thursday D.Gale/M. Aliotti Green Empowerment Zone Arlene Kobata / Jelani Killings (Alt.) Standing 3rd Friday (Bi-Monthly) 9:30 AM J. Davis Los Medanos Health Advisory Committee Arlene Kobata & Dionne Adams Ad Hoc As needed D.Gale/M. Aliotti Mayor’s Conference Dionne Adams / Angelica Lopez (Alt.) Standing 1st Thursday 6:30 PM D.Gale/M. Aliotti School Districts Committee (2x2) Jelani Killings & Angelica Lopez / Juan Banales (Alt.) Standing Quarterly D.Gale/M. Aliotti

SUBCOMMITTEES COUNCIL MEMBER(S) TYPE MEETS TIME STAFF
Community and Economic Development Jelani Killings & Dionne Adams / Angelica Lopez (Alt.) Standing 2nd Thursday 5:30 PM J. Davis Data Center and Hydrogen Jelani Killings & Juan Banales Ad Hoc As needed J. Davis Development Agreement Jelani Killings & Dionne Adams Ad Hoc As needed J. Davis Finance Management Dionne Adams, & Juan Banales / Jelani Killings (Alt.) Standing 2nd Wednesday 5:30 PM E. Adair Infrastructure and Transportation Juan Banales & Arlene Kobata / Dionne Adams (Alt.) Standing 4th Thursday 5:30 PM J. Samuelson Tenant Protections Juan Banales & Angelica Lopez Ad Hoc As needed S. Bellafronte Life Enrichment Dionne Adams & Arlene Kobata / Jelani Killings (Alt.) Standing 3rd Wednesday 5:30 PM K. Simonton Pittsburg Arts and Community Foundation Jelani Killings & Angelica Lopez Standing As needed K. Simonton Public Safety Juan Banales & Angelica Lopez / Arlene Kobata Alt.) Standing 1st Wednesday 5:30 PM S. Albanese *Stipend of $170 per month
** Stipend of 100 per month

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NATIONAL SEXUAL ASSAULT AWARENESS MONTH

April 2026

WHEREAS, Sexual Assault Awareness Month (SAAM) calls attention to the fact that sexual violence is widespread and impacts every person in every community; and WHEREAS, SAAM’s 2026 theme is “25 Years Stronger: Looking Back, Moving Forward” honors the hist ory and growth of the movement while reaffirm ing our commitment to a safer future for all. Looking back , we remember the survi vors and advocates who laid the foundation for change. Mov ing forward, we renew our focus on prevention, healing and action; and
WHEREAS, as we celebrate 25 years of SAAM, we recognize how far we’ve come and the work still ahead. Together, we can con tribute to shift cult ure, strength en prevention, and create a world free from sexual violence; and WHEREAS, by standing in solidarity, we can build a future free from sexual violence and create a world where everyone is safe, valued, and respected; and WHEREAS, we support this year’s theme and encourage our residents to foster a safer community by uplifting the voices of survivors and shaping a better future.

NOW, THEREFORE, I, Dionne Adams, on behalf of the City Council of the City of Pittsburg, do hereby proclaim April 2025 as National Sexual Assault Awareness month and each day of the year is an opportunity to unite for a better future.

____________________________________________________________________________________________________________________________________________________ Alice E. Evenson, City Clerk
____________________________________________________________________________________________________________________________________________________ Dionne Adams, Mayor

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NATIONAL FAIR HOUSING MONTH

April 2026

WHEREAS, the Fair Housing Act, enacted on April 11, 1968, enshrined into federal law the goal of eliminating racial segregation and ending housing discrimination in the United States; and
WHEREAS, the Fair Housing Act prohibits discrimination in housing based on race, color, religion, sex, familial status, national origin, and disability, and commits recipients of federal funding to affirmatively further fair housing in their communities; and WHEREAS, the City of Pittsburg is committed to the mission and intent of Congress to provide fair and equal housing opportunities for all; and WHEREAS, our social fabric, the economy, health, and environment are strengthened in diverse, inclusive communities; and
WHEREAS, more than fifty years after the passage of the Fair Housing Act, discrimination persists, and many communities remain segregated; and WHEREAS, acts of housing discrimination and barriers to equal housing opportunity are repugnant to a common sense of decency and fairness; and WHEREAS, we declare that Pittsburg is an inclusive community committed to fair housing, and to promoting appropriate activities by private and public entities to provide and advocate for equal housing opportunities for all residents and prospective residents.

NOW, THEREFORE, I, Dionne Adams, on behalf of the City Council of the City of Pittsburg, do hereby proclaim April 2026 as National Fair Housing month.

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STAFF REPORT

MEETING DATE: April 6, 2026

TO: Mayor and Council Members

FROM: Darin E. Gale‚ City Manager
John Sameulson, Public Works Director/City Engineer
Tina Tan, Assistant Engineer

SUBJECT: Adoption of a City Council Resolution Accepting the Plans and Specifications, Allocating Additional Funds, Amending Fiscal Year 2025-26 CIP Budget, and Awarding Project
4079-Linscheid Drive Traffic Calming Phase I

EXECUTIVE SUMMARY

FISCAL IMPACT

The anticipated total expenditure for the first phase of the Project is $352,236, which includes design, construction award, contingency, and construction support services.

Funding will be provided by $280,236 from the Community Development Block Grant (CDBG) previously allocated to this Project as part of the CDBG Annual Action Plan adoption. However, CIP Budget adopted in August 2025 appropriated $202,184 to the project using CDBG funding. Project budget is requested to be amended to account for the total available CDBG allocation. Further, to fully fund the Project, an additional $100,000 allocation from Measure J (Project 2019 – BART Pedestrian & Bicycle Connectivity) is requested with this resolution.

The updated CIP Project Sheet is attached to this Staff Report.

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RECOMMENDATION

City Council adopt the attached Resolution, allocating additional funds in the amount of $100,000 from Measure J and $78,052 from CDBG, amending the CIP budget, accepting the plans and specifications and authorizing the City Manager to execute a contract with Modernscapes Innovations for a total amount not to exceed $143,559 for the construction of the Project.

Staff recommends that the City Council allocate a construction contingency in the amount of $14,356 for any unanticipated costs and contract change orders.

Staff further recommends that the City Engineer be authorized to approve contract change orders for the Project in a total amount not to exceed 50% of the construction contingency and the City Manager be authorized to approve change orders in an amount not to exceed the approved Project budget.

BACKGROUND

On July 07, 2025, City Council adopted Resolution No. 25-14641, approving the Community Development Block Grant (CDBG) FY 2025/26 Annual Action Plan and the CDBG recommendation authorizing funding in the amount of $280,236.

With the approval of the CIP Budget in August 2025, the Project was allocated $202,184 of CDBG funding.

On February 3, 2026, staff advertised the Project for construction bids; Modernscapes Innovations was the lowest responsive, responsible bidder with a base bid in the amount of $143,559.

SUBCOMMITTEE FINDINGS

This item was not presented to a subcommittee meeting.

STAFF ANALYSIS

Installation of pavement markings, raised medians, and roundabouts at key intersections will enhance traffic safety and operational efficiency by reducing vehicle speeds, minimizing conflict points, and improving overall traffic flow for all road users.

Phase I will focus on the intersection of Linscheid Drive and Madoline Street and includes construction of a roundabout, along with associated striping and signage.

Phase II, anticipated for completion by the end of FY 2027, will address the intersections of Linscheid Drive and Ramona Street and Manville Avenue and Madoline Street. Improvements will include roundabouts, medians, striping, and pavement markings.

Sealed bids for the Project were opened on March 2, 2026. Four bids were received,

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and Modernscapes Innovations had the lowest bid, which was at or near the engineer’s estimate for Phase I of the Project.

The low bid submitted by Modernscapes Innovations has been checked for arithmetic errors, completeness, and conformance with the bid requirements.

ATTACHMENTS: Resolution
CIP Project Sheet

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BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG

In the Matter of:

Accepting the Plans and Specifications, )
Amending CIP budget, Allocating ) RESOLUTION NO: 26- Additional Funds and Awarding Project )
4079 – Linscheid Drive Traffic Calming )
WHEREAS, Project 4079 - Linscheid Drive Traffic Calming Phase I (Project) is for the installation of one roundabout and striping and signage at the intersection of Linscheid Drive and Madoline Street; and
WHEREAS, On July 07, 2025, City Council adopted Resolution No. 25-14641, approving the Community Development Block Grant (CDBG) FY 2025/26 Annual Action Plan and the CDBG recommendation authorizing funding in the amount of $280,236; and WHEREAS, with the approval of the CIP Budget in August 2025, the Project received a $202,184 CDBG funding allocation;
and
WHEREAS, on February 3, 2026, staff advertised the Project for construction bids; and
WHEREAS, on March 2, 2026, four construction bids were received and Modernscapes Innovations was determined to be the lowest responsive, responsible bidder with a base bid in the amount of $143,559.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pittsburg hereby accepts the plans and specifications, amend the CIP Budget, awards a construction contract to Modernscapes Innovations, allocates an additional $100,000 from Measure J to the Project, authorizes a contingency in the amount of $143,559, authorizes the City Engineer to approve contract change orders in an amount not to exceed 50% of the contingency, and authorizes the City Manager to approve change orders for an amount not to exceed the approved project budget.

BE IT FURTHER RESOLVED, that fiscal year 2025-26 CIP Budget is amended to increase Measure J Fund appropriations by $100,000 and CDBG Fund appropriations by $78,052.

PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 6th day of April 2026, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:
___________________
Dionne Adams, Mayor
ATTEST:

_______________________
Alice E. Evenson, City Clerk

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City of Pittsburg 2025/26 – 2029/30 Capital Improvement Program

Project Title: Project #:

Linscheid Drive Traffic Calming 4079

Description/Justification:

The project encompasses three intersections and its approaches near Linscheid Drive with the primary goal of improving pedestrian safety and preventing vehicular speeding. The project limits are within Linscheid Drive/Ramona Street, Linscheid Drive/Madoline Street, and Manville Avenue/Madoline Street. The scope includes, but is not limited to, the installation of roundabouts, medians, speed humps, traffic signal modification, and street lighting.

Supplemental Information:

The city will pursue grant funding to complete construction.

PROJECT EXPENDITURES Prior 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 TOTAL 1 1 01 Staff Time 1,579$ 5,000$ 20,000$ 26,579$ 21 22 Design 200,605$ 200,605$
2281 Construction 168,052$ 500,000$ 668,052$
2372 Administrative Overhead 5,000$ 20,000$ 25,000$ TOTAL 202,184$ 178,052$ 540,000$ 920,236$ PROJECT FUNDING Prior 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 TOTAL 233 CDBG 202,184$ 78,052$ 280,236$
204 Measure J 100,000$ 100,000$
Unfunded 540,000$ 540,000$
TOTAL 202,184$ 178,052$ 540,000$ 920,236$

PROJECT FINANCING CURRENT PROPOSED
Project Category: Roadway Infrastructure
Location: Intersection of Linscheid Dr, Ramona
St, Madoline St
Project Manager: K. Labao
Project Priority: 2G – Required
Project Status: Design
Est. Completion Date: 2026/27

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STAFF REPORT

MEETING DATE: April 6, 2026

TO: Mayor/Chair and Council/Governing Board Members

FROM: Darin E. Gale‚ City Manager/Executive Director
Elena Adair, Director of Finance
Tracy Story, Finance Analyst

SUBJECT: Adoption of City Council, Pittsburg Arts and Community Foundation, Pittsburg Power Company, SW Pittsburg
Geologic Hazard Abatement District II and Successor
Agency for the Redevelopment Agency of the City of
Pittsburg Resolutions Amending the Fiscal Year 2025-26
Budget Based on Year-End Revenue and Expenditure
Projections

EXECUTIVE SUMMARY

Staff has completed a Mid-Year Review of the Fiscal Year 2025-26 budget and has determined that budget adjustments are necessary to meet year-end projections.

FISCAL IMPACT

The proposed amendments to the City of Pittsburg Operating Budget for Fiscal Year (FY) 2025-26 include a net increase of $9.0 million in revenue projections for all City funds ($0.9 million General Fund decrease and $9.9 million increase in other funds), and a increase of about $6.7 million in expenditure appropriations over the current amended budget ($3.1 million General Fund increase and $3.6 million increase in other funds).

RECOMMENDATION

The City Council, Governing Boards of the Pittsburg Arts and Community Foundation (PACF), Pittsburg Power Company (PPC), SW Pittsburg Geologic Hazard Abatement District II and Successor Agency for the Redevelopment Agency approve the resolutions amending the FY 2025-26 Budget to reflect anticipated revenues and

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expenditures for the current fiscal year as detailed in this report.

BACKGROUND

The following Operating Budgets for FY 2025-26 were approved by the appropriate governing bodies on June 16, 2025:

City of Pittsburg Resolution 25-14634
Pittsburg Power Company Resolution 25-484
Southwest Pittsburg Geologic Hazard Abatement District II Resolution 25-090 Successor Agency for the City of Pittsburg Redevelopment Agency
Resolution 25-058

Budget for Pittsburg Arts and Community Foundation was established on December 15, 2025.

The budgets were developed based upon information available at the time regarding anticipated revenues and expenditures from the period from July 1, 2025 through June 30, 2026. At the completion of the mid-point of the fiscal year, staff from all departments reviewed their budgets to identify any adjustments required to revenue projections and expenditure appropriations.

The goal of this mid-year analysis is to update the budget to reflect significant budget changes and to develop the financial starting point for development of the FY 2026-27 Budget.

SUBCOMMITTEE FINDINGS

This item was not reviewed by a subcommittee.

STAFF ANALYSIS

General Fund
The General Fund serves as the main revenue source and operating fund for many of the services the city provides. These services include public safety (police), street maintenance, parks, recreation, and community services, among others. Additionally, the budgets for the City Council, City Manager's Office, and City Attorney are mainly supported by the General Fund. The funding for these activities comes primarily from general tax revenues, including sales and property taxes, motor vehicle-in-lieu fees, municipal service taxes, as well as income from permits, fees, and investment earnings.

The chart below provides an overview of the major General Fund revenue and expenditure categories. It is projected that the FY 2025-26 General Fund revenues will fall short of the original budgeted amount by $0.8 million and that the expenditure appropriation increases totaling $3.1 million are required. While the amended budget for the General Fund projects net shortfall of $3.8 million, staff currently projects that the

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General Fund will end the fiscal year with $0.9 million above the Council required 30% operating reserve of $19.0 million and Budget Stabilization reserve of $2.445 million.

General Fund Revenues
General Fund revenues received through the second quarter total $21.4 million or approximately 32% of the $67.5 million revised budget. The FY 2025-26 General Fund estimated tax revenues are projected to come in at $44.4 million.

Sales Tax (including Measure M)
Sales Tax, including Measure M, makes up 32% of overall General Fund revenues not including transfers from other funds. The FY 2025-26 original budget projected $18.6 million in sales tax revenue. Based on current projections, staff expects to receive $18.2 million, a decrease of $0.4 million. It is important to note that since FY 2022-23 overall sales tax declined $2.8 million mainly due to loss of manufacturing business, Bombardier, that built BART cars. Additional sales tax highlights covering the third quarter of calendar year 2025 are provided in Attachment 4.

Property Tax
Property tax revenue was budgeted at $18.4 million. Based on the receipts through December 2025, it is projected that property taxes will be $185,000 higher. The primary reasons for the increase are change in ownership and increased improvements.

Additional property tax highlights are provided in Attachment 5.

Franchise Fees
The City collects franchise fees on cable, refuse, recycling and various utilities. These fees were budgeted at $6.1 million; however, they are projected to be $150,000 lower.

The largest decline continues to be in the cable franchise.

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Transient Occupancy Tax (TOT)
City’s TOT revenue was projected to generate $1.1 million for current fiscal year due to anticipated opening of a new hotel. As a result of unanticipated delays in the opening and lower than expected occupancy rate, budget for TOT is reduced by $450,000 for a projected total of $650,000.

Business License Tax
Business license renewals occur during December and January. Business License tax collected to date is $0.6 million and is expected to be lower than budget by $120,000.

General Fund Expenditures
The revised expenditures budget together with proposed mid-year amendments total $70.1 million including transfers out. Overall, mid-year expenditure appropriations will increase the General Fund budget by $3.1 million. The largest contributor to the increase is the insufficient vacancy savings built in the original budget.

At the time of FY 2025-26 budget development, staff projected to have $4.0 million of vacancy savings in the General Fund, which are allocated to specific General Fund departments at mid-year review. Based on current projection, only $1.945 million of the $4.0 million is being allocated to departments. Remaining balance is projected to be drawn from available reserves. It is possible that by the end of the fiscal year more vacancy savings will be realized; however, it is difficult to determine at this time.

Additionally, $0.8 million increase is requested for contractual services covering legal costs and various professional services contracts. Modest budget increases are requested for increased costs in utilities, supplies and materials.

General Fund Reserves
The General Fund is projected to end the fiscal year with a $0.9 million available fund balance. This is in addition to Budget Stabilization reserve of $2.4 million and a required 30% operating reserve of $19.0 million.

Special Revenue Funds
Special Revenue funds account for activities funded by special purpose revenues, that is revenues that are legally restricted for a specific purpose. The proposed budget amendments to the Special Revenue funds group will increase the estimated revenues by $3.3 million and projected expenditures by $0.5 million. Additional details on various proposed budget amendments are included in the attachments to the City Council, PACF and SW Pittsburg GHAD II Resolutions.

Capital Projects Funds
Capital Projects funds are primarily comprised of Pittsburg Capital Improvement Projects Fund and Local Traffic Mitigation Fee Fund. The proposed budget amendments to the Capital Projects funds group will increase the estimated revenues

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by $4.2 million and projected expenditures by $4.1 million. The largest appropriation is attributed to Dream Courts project that augments existing project budget from the Pittsburg Power Company funds previously set aside for the project. Additional details on various proposed budget amendments are included in the attachment to the City Council Resolution.

Enterprise Funds
Enterprise funds consist of revenue and expenses related to providing water, sewer, waterfront, marina and electric services to customers who are primarily external. The proposed amendments to the City’s Enterprise Fund budgets resulted in an overall net increase in estimated revenues of $0.2 million and increase in budgeted expenses of $2.6 million. PPC budget amendment includes a repayment of an interfund loan from Island Energy to PPC comprising of an outstanding principal balance and current year interest. Additional details on various proposed budget amendments are included in the attachments to the City Council Resolution and Pittsburg Power Company.

Internal Service Funds
Internal Service funds account for goods or services provided by one department to other departments on a cost-reimbursement basis. Internal services include information systems and technology, facilities, fleet and self-insurance programs. The proposed amendments to the Internal Service Funds reflect an increase in expenses of $34,500 in the Facilities Maintenance Fund.

Custodial Funds
Custodial Funds collect cash via special assessments and tax collection to be held temporarily for an authorized recipient to whom it will later be disbursed. The recipient may be another fund, or an individual, or even another jurisdiction. The proposed amendment in the Successor Agency Fund reflects an increase in the budgeted expenses of $47,316 to conform budget to the Recognized Obligation Payment Schedule approved by the Countywide Oversight Board and Department of Finance.

Staffing
No additional positions are recommended for the mid-year budget update. However, an existing Development Services Coordinator position is proposed to be reclassified to Information Technology Analyst II position with following change in labor distribution:

Position Current Proposed

Reclassification of
Development Services
Coordinator to IT Analyst II
10% Water
10% Sewer
30% GF Engineering
25% GF Planning
25% GF Permit Center
10% Water
10% Sewer
20% GF Engineering
25% GF Planning
25% GF Permit Center
10% IS Operations

Sufficient budget is available within IS Operations fund to absorb the cost of the position reclassification through the end of the current fiscal year. These changes will also be

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incorporated in next year’s budget.

Staff is requesting a part-time intern administrative position for the Fleet Maintenance Fund. Adding an intern position would free up full-time staff to address more complex tasks, while strengthening community ties by partnering with Los Medanos Community College. Sufficient budget is available to absorb the additional cost in current year.

Summary
The proposed budget amendments are based upon information available at this time and will result in an overall increase of $9.1 million to budgeted revenues and an increase of $6.7 million to expenditure appropriations for FY 2025-26. Staff will monitor the near future outlook of the economy and its effects locally as a result of continued external political and economic matters, inflation and interest rates for the remaining months of the fiscal year as well as coming fiscal year.

Fiscal Year 2026-27 Budget
City staff is working on putting together the FY 2026-27 Budget. The proposed budget is expected to be presented to the City Council for review and comment over the next two months to be adopted in June 2026.

ATTACHMENTS:

1. Revenues by Fund

2. Expenditures by Fund

3. General Fund Summary

4. Pittsburg Sales Tax Update (3Qrt2024)

5. Pittsburg Property Tax Newsletter

6. City Council Resolution – FY 2025-26 Mid-Year Budget Amendments and Authorized Positions Update

7. Pittsburg Arts and Community Foundation Resolution

8. Pittsburg Power Company Resolution

9. SW Pittsburg Geologic Hazard Abatement District II Resolution

10. Successor Agency Resolution

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Citywide Budget
Revenues by Fund Summary
Fund Fund Name Original Budget Revised Budget
Mid-Year
Adjustments
(4-6-26)
Revised with
Mid-Year
Actual
(thru 12-31-25) %
110 General Fund 68,295,703 68,295,703 (839,000) 67,456,703 21,403,852 31.7% 120 California Theatre 227,159 227,159 - 227,159 166,053 73.1% 130 General Plan Update 31,033 31,033 - 31,033 - 0.0% 140 Emergency Operations Center 53,966 53,966 - 53,966 25,000 46.3% 160 Economic Development 1,111,822 1,111,822 (30,000) 1,081,822 579,628 53.6% 170 Golf Course - - - - Total General Fund 69,719,683 69,719,683 (869,000) 68,850,683 22,174,532 32.2% 201 Gas Tax HUTA 2,215,246 2,215,246 (75,131) 2,140,115 930,279 43.5% 202 Road Maintenance & Rehab (SB1) 2,064,646 2,064,646 (64,196) 2,000,450 500,996 25.0% 204 Measure J Tax 1,204,901 1,204,901 3,518,445 4,723,346 3,899,438 82.6% 205 Citywide Lighting & Landscape 5,592,380 5,592,380 - 5,592,380 2,878,839 51.5% 206 Lighting & Landscape - Oak Hills 38,090 38,090 - 38,090 19,428 51.0% 207 National Pollutant Discharge Elim. System 1,421,000 1,421,000 (348,100) 1,072,900 210,112 19.6% 208 Southwest Pittsburg-GHAD II 2,131,770 2,131,770 5,500 2,137,270 1,068,952 50.0% 210 Solid Waste Fund 1,207,348 1,207,348 4,600 1,211,948 168,104 13.9% 211 Asset Forfeitures 18 18 - 18 5 30.0% 213 Marina Vista Field Replacement 12,050 12,050 - 12,050 - 0.0% 214 Hillview Jr. High Athletic Field (Maintenance) 16,077 16,077 - 16,077 - 0.0% 215 Public Education & Government Fees 179,906 179,906 - 179,906 23,899 13.3% 216 San Marco CFD #2004-01 1,643,310 1,643,310 - 1,643,310 900,369 54.8% 217 Park Maintenance CFD #2007-1 242,338 242,338 - 242,338 111,535 46.0% 218 Tuscany Meadows CFD #2021-1 30,710 30,710 - 30,710 29,148 94.9% 219 Railroad Avenue BART CFD #2014 4,372 4,372 15,000 19,372 15,169 78.3% 220 Project Amenities Management (CFD #2016-1)62,063 62,063 - 62,063 102,949 165.9% 221 Fire District CFD 77,876 77,876 - 77,876 43,503 55.9% 222 Vista Del Mar CFD #2005-2 469,769 469,769 - 469,769 257,960 54.9% 223 Public Safety Service CFD #2005-1 1,497,957 1,497,957 - 1,497,957 824,430 55.0% 232 HOME Housing Rehab. Loans 48 48 - 48 - 0.0% 233 Community Development Block Grant 660,092 660,092 - 660,092 18,902 2.9% 241 Housing Choice Vouchers 24,362,141 24,362,141 - 24,362,141 6,869,993 28.2% 243 Neighborhood Stabilization Program 1,827 1,827 - 1,827 - 0.0% 245 CalHOME Program 10,765 10,765 - 10,765 - 0.0% 255 CA Energy Conservation Program - - - - - 256 US EPA Grants 2,906,246 2,906,246 - 2,906,246 793,063 27.3% 257 Marina Dredging/Infrastructure Improv. 8,994 8,994 - 8,994 - 0.0% 258 Pittsburg Arts & Community Foundation 3,924 133,924 - 133,924 142,662 106.5% 281 Local Enforcement Agency Grants 16,036 16,036 - 16,036 - 0.0% 291 Local Law Enforcement Block Grant 51 51 - 51 (30,973) -60730.9% 293 Supplemental Law Enforcement 20,677 20,677 - 20,677 166,988 807.6% 294 COPS Hiring Recovery - - - - - 295 Regional Freeway Security - - - - (98,930) 298 American Rescue Plan Act - - - - (50,682) 299 Miscellaneous Grants 125,000 308,500 200,000 508,500 217,481 42.8% 802 Successor Agency Housing Fund 323,669 323,669 - 323,669 (69,692) -21.5% Total Special Revenue Funds 48,551,297 48,864,797 3,256,118 52,120,915 19,943,929 38.3% 301 Pittsburg Capital Improvement Projects 549,904 3,362,604 4,025,000 7,387,604 526,973 7.1% 302 Kirker Creek Drainage Fee 13,887 13,887 - 13,887 - 0.0% 303 Local Traffic Mitigation Fee 479,080 479,080 170,000 649,080 190,576 29.4% 304 Park Dedication Fee 234,150 234,150 - 234,150 - 0.0% 305 Inclusionary Housing 1,485 1,485 - 1,485 - 0.0% 306 Traffic Impact Fair Share 20,144 20,144 - 20,144 - 0.0% 307 Regional Traffic Mitigation Fee 17,248 17,248 - 17,248 - 0.0% 308 Developer Deposits - 528,550 - 528,550 10,960 2.1% 309 Capital Outlay Improvements 765 765 - 765 - 0.0% 311 Community Capital Improvement 17,957 146,207 - 146,207 23,287 15.9% 312 Bailey Road Maintenance 75,808 75,808 146,800 222,608 36,700 16.5% 803 SA to RDA - Project Fund - - - - - Total Capital Projects Funds 1,410,428 4,879,928 4,341,800 9,221,728 788,497 8.6%

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Citywide Budget
Revenues by Fund Summary
Fund Fund Name Original Budget Revised Budget
Mid-Year
Adjustments
(4-6-26)
Revised with
Mid-Year
Actual
(thru 12-31-25) %
401 Pension Obligation Bonds 4,976,246 4,976,246 - 4,976,246 2,015,424 40.5% Total Debt Service Funds 4,976,246 4,976,246 - 4,976,246 2,015,424 40.5% 501 Water 30,415,641 30,415,641 46,200 30,461,841 14,406,870 47.3% 521 Sewer 5,501,281 5,501,281 - 5,501,281 2,247,002 40.8% 540 Waterfront 1,014,724 1,014,724 - 1,014,724 (3,673) -0.4% 550 Marina 2,286,841 2,286,841 (86,000) 2,200,841 516,673 23.5% 580 Island Energy 10,156,659 10,156,659 10,156,659 4,288,975 42.2% 590 Pittsburg Power Company 3,431,253 3,431,253 264,397 3,695,650 1,841,520 49.8% Total Enterprise Funds 52,806,399 52,806,399 224,597 53,030,996 23,297,368 43.9% 601 Information/Communication Systems 2,000,000 2,000,000 - 2,000,000 1,000,001 50.0% 611 Fleet Maintenance 2,176,312 2,176,312 (15,000) 2,161,312 1,060,202 49.1% 612 Building Maintenance 3,159,082 3,159,082 1,500 3,160,582 1,583,666 50.1% 613 Insurance 2,934,905 2,934,905 - 2,934,905 1,467,453 50.0% 631 Employee Fringe Benefits 975,000 975,000 2,400,000 3,375,000 487,542 14.4% 632 Pension Trust 480,417 480,417 - 480,417 200,000 41.6% 633 Other Post-Employment Benefits 3,023,000 3,023,000 - 3,023,000 1,511,500 50.0% Total Internal Service Funds 14,748,716 14,748,716 2,386,500 17,135,216 7,310,363 42.7% 701 Century Plaza Auto Mall #2001-3 52,019 386,497 - 386,497 183,733 47.5% 702 Bailey Estates 2006-1 1,428 1,428 - 1,428 - 0.0% 703 Vista Del Mar CFD 2005 781,732 781,732 - 781,732 405,850 51.9% 704 San Marco CFD 2009-1 1,981,741 1,981,741 - 1,981,741 1,039,429 52.5% 705 Re-Assessment District 2022-1 673,256 673,256 - 673,256 270,821 40.2% 706 Other Agencies - Impact Fees 23,859 23,859 - 23,859 - 0.0% 801 Pittsburg Successor Agency 64,996,056 64,996,056 - 64,996,056 16,032,394 24.7% Total Custodial Funds 68,510,091 68,844,569 - 68,844,569 17,932,227 26.0%

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Citywide Budget
Expenditures by Fund Summary
Fund Fund Name Original Budget Revised Budget
Mid-Year
Adjustments
(4-6-26)
Revised with
Mid-Year
Actual
(thru 12-31-25) %
110 General Fund 66,968,519 67,016,644 3,100,400 70,117,044 34,874,752 49.7% 120 California Theatre 93,398 448,773 448,773 272,494 60.7% 130 General Plan Update - 357,378 357,378 99,462 27.8% 140 Emergency Operations Center 50,000 50,000 50,000 12,776 25.6% 160 Economic Development 1,095,650 1,196,398 1,196,398 692,815 57.9% 170 Golf Course - - - - Total General Fund 68,207,567 69,069,192 3,100,400 72,169,592 35,952,299 49.8% 201 Gas Tax HUTA 1,200,000 1,200,000 1,200,000 600,000 50.0% 202 Road Maintenance & Rehab (SB1) - 239,538 239,538 3,351 1.4% 204 Measure J Tax 710,000 2,672,099 (5,000) 2,667,099 1,169,537 43.9% 205 Citywide Lighting & Landscape 6,192,161 6,200,849 (97,100) 6,103,749 2,749,491 45.0% 206 Lighting & Landscape - Oak Hills 38,952 38,952 - 38,952 15,228 39.1% 207 National Pollutant Discharge Elim. System 1,410,790 1,410,790 74,100 1,484,890 453,614 30.5% 208 Southwest Pittsburg-GHAD II 2,200,795 2,200,795 5,497 2,206,292 1,037,523 47.0% 210 Solid Waste Fund 1,364,382 1,632,941 (235,900) 1,397,041 550,559 39.4% 211 Asset Forfeitures - - - 13,724 213 Marina Vista Field Replacement 344,540 344,540 0.0% 214 Hillview Jr. High Athletic Field (Maintenance) 459,746 459,746 0.0% 215 Public Education & Government Fees - 153,000 153,000 17,111 11.2% 216 San Marco CFD #2004-01 1,636,130 1,636,130 1,636,130 819,499 50.1% 217 Park Maintenance CFD #2007-1 89,775 89,775 43,700 133,475 64,465 48.3% 218 Tuscany Meadows CFD #2021-1 - - - 275 219 Railroad Avenue BART CFD #2014 - - - - 220 Project Amenities Management (CFD #2016-1)63,000 63,000 63,000 31,768 50.4% 221 Fire District CFD - - - 665 222 Vista Del Mar CFD #2005-2 469,018 469,018 469,018 234,889 50.1% 223 Public Safety Service CFD #2005-1 1,491,513 1,491,513 1,491,513 746,395 50.0% 233 Community Development Block Grant 448,505 488,678 488,678 144,071 29.5% 241 Housing Choice Vouchers 24,620,253 24,620,253 24,620,253 6,703,206 27.2% 245 CalHOME Program - 153,000 153,000 800 0.5% 255 CA Energy Conservation Program - - - - 256 US EPA Grants 2,856,097 4,509,823 (51,000) 4,458,823 765,839 17.2% 257 Marina Dredging/Infrastructure Improv. - - - - 258 Pittsburg Arts & Community Foundation - 461,000 100,000 561,000 207,867 37.1% 281 Local Enforcement Agency Grants - - - - 291 Local Law Enforcement Block Grant - - - 33,242 293 Supplemental Law Enforcement - - - 147,980 294 COPS Hiring Recovery - - - - 295 Regional Freeway Security - - - - 298 American Rescue Plan Act 487 5,420,087 5,420,087 1,961,293 36.2% 299 Miscellaneous Grants 125,000 308,500 308,500 186,781 60.5% 802 Successor Agency Housing Fund 492,829 492,829 492,829 115,972 23.5% Total Special Revenue Funds 45,409,687 55,952,569 638,583 56,591,152 18,775,144 33.2% 301 Pittsburg Capital Improvement Projects 477,428 21,649,839 4,025,000 25,674,839 4,067,474 15.8% 302 Kirker Creek Drainage Fee - - - - 303 Local Traffic Mitigation Fee 87,750 87,750 58,000 145,750 60,415 41.5% 304 Park Dedication Fee 87,868 1,594,242 31,000 1,625,242 467,213 28.7% 307 Regional Traffic Mitigation Fee - - - - 308 Developer Deposits - 528,550 528,550 22,659 4.3% 309 Capital Outlay Improvements - - - 3,332 311 Community Capital Improvement - 2,007,261 2,007,261 161,120 8.0% 803 SA to RDA - Project Fund 2,343 185,122 185,122 1,880 1.0% Total Capital Projects Funds 655,389 26,052,765 4,114,000 30,166,765 4,784,093 15.9%

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Citywide Budget
Expenditures by Fund Summary
Fund Fund Name Original Budget Revised Budget
Mid-Year
Adjustments
(4-6-26)
Revised with
Mid-Year
Actual
(thru 12-31-25) %
401 Pension Obligation Bonds 4,810,232 4,810,232 4,810,232 4,168,306 86.7% Total Debt Service Funds 4,810,232 4,810,232 - 4,810,232 4,168,306 86.7% 501 Water 31,558,646 91,222,513 (2,216,150) 89,006,363 19,765,072 22.2% 521 Sewer 3,930,127 4,091,231 22,000 4,113,231 1,844,772 44.8% 540 Waterfront 734,080 1,294,407 84,500 1,378,907 374,244 27.1% 550 Marina 2,725,608 2,940,608 2,940,608 1,268,532 43.1% 580 Island Energy 9,727,256 10,481,276 236,322 10,717,598 3,425,244 32.0% 590 Pittsburg Power Company 3,098,392 3,214,513 4,458,000 7,672,513 1,417,954 18.5% Total Enterprise Funds 51,774,109 113,244,547 2,584,672 115,829,219 28,095,818 24.3% 601 Information/Communication Systems 2,085,158 2,115,851 2,115,851 761,001 36.0% 611 Fleet Maintenance 2,069,856 2,144,556 2,144,556 495,296 23.1% 612 Building Maintenance 3,153,366 3,185,099 34,500 3,219,599 1,596,421 49.6% 613 Insurance 2,934,905 2,934,905 2,934,905 2,569,997 87.6% 631 Employee Fringe Benefits 1,009,300 3,494,800 3,494,800 2,898,163 82.9% 632 Pension Trust - 28,000 28,000 - 0.0% 633 Other Post-Employment Benefits 2,738,100 2,738,100 1,000,000 3,738,100 898,276 24.0% Total Internal Service Funds 13,990,685 16,641,311 1,034,500 17,675,811 9,219,153 52.2% 701 Century Plaza Auto Mall #2001-3 6,844 329,200 329,200 8,833 2.7% 703 Vista Del Mar CFD 2005 - 705,159 705,159 2,584 0.4% 704 San Marco CFD 2009-1 - - - 1,651,097 705 Re-Assessment District 2022-1 37,369 723,338 723,338 24,221 3.3% 801 Pittsburg Successor Agency 63,669,384 63,669,384 47,316 63,716,700 11,412,099 17.9% Total Custodial Funds 63,713,597 65,427,081 47,316 65,474,397 13,098,835 20.0%

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General Fund
Budget Summary - Fund 110
Fund Description / Budget Highlights
Fund Activity
FY 22/23 FY 23/24 FY 24/25 FY 25/26 Budget
Actual Actual Actual Original Revised Mid-Year
Revised
(4/6/26)
Beginning Available Fund Balance 3,431,611$ 1,208,164$ 4,697,241$ 4,697,241$ Revenues
PropertyTax/MVLF/RPTTF 16,568,026$ 17,400,120$ 17,824,886 18,429,500 18,429,500 185,000 18,614,500 Sales Tax/Local TUT 20,955,967 20,549,693 18,203,985 18,560,000 18,560,000 (400,000) 18,160,000 Franchise Fee 5,392,894 5,606,985 5,766,706 6,108,000 6,108,000 (150,000) 5,958,000 Other Taxes 1,520,333 1,304,365 1,450,832 2,218,000 2,218,000 (570,000) 1,648,000 Investment Income 616,485 601,680 1,228,810 686,740 686,740 - 686,740 Other Revenue 691,993 567,332 738,889 598,800 598,800 - 598,800 Program Revenues 9,476,497 8,859,660 10,536,141 9,155,247 9,155,247 96,300 9,251,547 55,222,195 54,889,835 55,750,249 55,756,287 55,756,287 (838,700) 54,917,587 Cost Allocation Reimbursements 1,851,401 2,037,225 2,468,969 2,557,755 2,557,755 (300) 2,557,455 Transfers In 5,642,788 17,714,327 12,647,390 9,981,661 9,981,661 - 9,981,661 62,716,384 74,641,387 70,866,608 68,295,703 68,295,703 (839,000) 67,456,703 Expenditures
City Council 149,812 149,837 149,299 149,821 149,821 3,100 152,921 City Attorney 340,443 407,084 403,824 495,886 495,886 45,000 540,886 City Manager's Office 161,129 149,875 143,981 153,518 153,518 15,000 168,518 City Clerk 608,087 444,641 548,016 459,900 459,900 15,000 474,900 Human Resources 1,271,626 1,413,201 1,297,264 1,418,653 1,418,653 - 1,418,653 Finance 1,792,167 1,673,829 1,782,997 1,872,733 1,872,733 335,000 2,207,733 Community & Economic Development3,930,471 4,144,709 4,430,771 4,643,895 4,643,895 192,100 4,835,995 Police 34,966,747 34,831,364 36,950,345 40,012,280 40,060,405 (950,000) 39,110,405 Recreation 2,318,079 2,738,279 2,638,357 2,766,224 2,766,224 68,000 2,834,224 Public Works 6,764,092 7,033,226 6,626,670 8,143,779 8,143,779 (874,500) 7,269,279 Non-Departmental 4,857,030 6,610,183 3,738,253 136,330 136,330 4,226,700 4,363,030 57,159,683 59,596,228 58,709,777 60,253,019 60,301,144 3,075,400 63,376,544 Transfers Out 12,279,349 19,203,427 10,891,201 6,715,500 6,715,500 25,000 6,740,500 69,439,032 78,799,655 69,600,978 66,968,519 67,016,644 3,100,400 70,117,044 Changes in restricted reserves - Operations (1,134,095) Net Annual Activity (6,722,648)$ (4,158,268) 1,265,630 1,327,184 1,279,059 (3,939,400) (3,794,436) Fund Balance
Ending Available Fund Balance 3,431,611 4,697,241$ 2,535,348$ 5,976,300$ 902,805$ Reserves: 8% 4% 1%
Budget Stabilization 4% 2,445,285
Operations 30% 17,878,868
Other 4,352,896
Total 28,108,660$
The General Fund is the primary revenue source and operating fund for most services the City offers. These include public safety, street maintenance, parks, recreation, community services, etc. This fund accounts for all financial resources except those to be accounted for in another fund.

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Top 25 Sales Tax Remitters California sales tax cash receipts increased by 4.5% from the same quarter last year. In this jurisdiction sales tax cash ALL STAR FORD receipts increased by 1% from the same quarter last year ALL STAR HYUNDAI due to a increase of $3,271,000 in Taxable Sales.

ANTIOCH BUILDING MATERIALS CO.

ARCO AM/PM MINI MARTS Cash Receipts Quarter Annual BURLINGTON COAT FACTORY Pittsburg 1.0% -10.2% CALPINE OPERATING SVCS CO Contra Costa Countywide Pool 27.2% 16.2% CHICK-FIL-A Contra Costa Countywide 9.4% 2.2% CONTRA COSTA COUNTY PUBLIC AUTO AUCTION S.F. Bay Area Region 7.0% 3.8% CORPORATE FLEET SALES Statewide 4.5% 2.1%

FERGUSON ENTERPRISES
GRANITE EXPO OUTLET Annualized Percent Change in Sales Tax Cash Receipts

HOME DEPOT

IN-N-OUT BURGERS

ISCO INDUSTRIES

KORTICK MANUFACTURING

PRAXAIR

ROOFLINE SUPPLY & DELIVERY

ROSS STORES

SHELL SERVICE STATIONS

UNITED RENTALS

UNIVAR SOLUTIONS USA

WAL MART STORES

WINCO FOODS

WINTER CHEVROLET

WINTER HONDA
Business Activity Quarter Annual Quarter Annual
General Retail -1.2% -3.1% 2.6% 0.2%
Food Products -4.5% -4.7% -0.8% -0.2%
Transportation 1.9% -1.6% -4.2% -5.4%
Construction -9.5% -5.4% -2.8% -2.1%
Business To Business -14.9% -5.7% -3.1% -1.7%
TOTAL LOCAL BUSINESS ACTIVITY -6.3% -4.1% -1.2% -1.7%
COUNTYWIDE POOL ACTIVITY 17.5% 3.2% 24.1% 12.4%
City of Pittsburg
Pittsburg California
Quarterly Report on Sales Tax and Business Activity
3rd Quarter 2025 in Review
-24.0%
-18.0%
-12.0%
-6.0%

0.0%

6.0%

12.0%

18.0%

24.0%
Pittsburg Contra Costa Countywide Statewide
Neumo / MuniServices

Page 26 of 411 ends

Pittsburg
Annual Per Capita Sales Tax
Adjusted for Inflation
(Constant 2021 $)
City of Pittsburg
News
• Economic Activity: U.S. inflation ticked up to 3.0% in September of 2025, down 6.1 percentage points from its most recent peak of 9.1% in June 2022. California's headline inflation increased to 3.3% year over year as of August 2025, up from 2.7% in August of 2024. (DIR, BEA,BLS, November Finance Bulletin)
• Employment: The U.S. unemployment rate increased slightly to 4.4% in September of 2025. California's unemployment rate increased by 0.4 percentage point to 5.5% as of August 2025, 0.5 percentage points higher than the September 2023 rate of 5.0%. (EDD, BLS)
• Personal Income: U.S. personal income increased by 5.5% for the third quarter of 2025, compared to the same quarter previous year. Compensation of employees increased by 5.4%, while personal current taxes increased by

8.6% from the previous period, resulting in a net gain of 5.1% in disposable income. (BEA) 2021Q3 $196 2022Q3 $189 2023Q3 $181 2024Q3 $152 2025Q3 $142 $40 $39 $37 $30 $30
$2 $1 $1
$1 $1
$20 $21 $22 $29 $27
$45
$24 $20 $20 $18
$43
$59
$56
$30
$29
$23 $24
$25
$25
$22
$23
$21
$20
$17
$16
General Retail
Food Products
Transportation
Construction
Business To Business
Miscellaneous
County Pool
(Cash Basis)
Neumo / MuniServices

Page 27 of 411 ends

THE CITY OF PITTSBURG
TAX YEAR 2025/26

PROPERTY TAX NEWSLETTER
DH

TAXABLE ASSESSED VALUE
$10.8 BILLION
+2.8%

PITTSBURG COUNTY

4.2%
-0.2B

0.0B

0.2B

0.4B

0.6B

0.8B

1.0B

1.2B
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

PRIOR YEAR TRANSFER

OF OWNERSHIP

NEW CONSTRUCTION
PROP. 13 INFLATION

ADJUSTMENT
OTHER

VALUE GROWTH (IN BILLIONS)

HISTORY OF VALUE CHANGES BY CAUSE

INCLUDING TOTAL ASSESSED VALUE

6.6B 7.0B 7.5B 7.8B 8.2B 8.5B 9.5B 10.1B 10.5B 10.8B
The Other change category may include effects of assessment appeals, multi parcel sales, and changes to secured exemptions, personal property, or utility-owned property values

PROPERTY

HIGHLIGHTS
TOP 10 OWNERS
WITH PRIMARY USE CATEGORY, TOTAL VALUE AND % OF ALL VALUE

2.89%CORTEVA AGRISCIENCE LLC 1 UNSECURED $311 MILLION

2.88%CALPINE CORPORATION 2 UNSECURED $310 MILLION

2.33%USS POSCO INDUSTRIES 3 INDUSTRIAL $251 MILLION

2.22%DIABLO ENERGY STORAGE LLC 4 UNSECURED $239 MILLION

1.94%K2 PURE SOL LP 5 UNSECURED $209 MILLION

1.48%DELTA ENERGY CENTER LLC 6 UTILITY $159 MILLION

1.10%K W KIRKER CREEK LLC 7 RESIDENTIAL $119 MILLION

0.95%SIERRA PACIFIC APARTMENTS LLC 8 RESIDENTIAL $103 MILLION

0.86%SAN MARCO PROPERTIES LLC 9 RESIDENTIAL $92.8 MILLION

0.70%DOUGLAS PRODUCTS AND PCKG COMPANY LLC 10 UNSECURED $75.5 MILLION $1.87 BILLIONTOP 10 TOTAL 17.37 %
The largest increase in secured assessed value
was 1001 Center Drive which increased by
$13.8 million as a result of change of ownership
and increased improvements.

The second and third largest increases in
secured assessed value was 2201 and 2311 W.

Leland Road which increased by $6.2 million
and $4.4 million as a result of increased
improvements.

The fourth largest increase was 2900 Railroad
Avenue which increased by $2.7 million as a
result of change of ownership.

The fifth largest increase was 1000 Pheasant
Drive which increased by $2.3 million as a result
of consumer price index adjustment.
hdlcompanies.com/proptax | 714 879.5000 Published by

Page 28 of 411 ends

TAX YEAR 2025/26 THE CITY OF PITTSBURG - PROPERTY TAX NEWSLETTER

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

ALAMEDA CONTRA COSTA MARIN NAPA SAN MATEO SANTA CLARA SOLANO SONOMA

ESTIMATED VALUE GROWTH FROM SALE TRANSFERS AS A PERCENTAGE OF TAXABLE VALUE BY COUNTY

PROPERTY TAX FACTS
• In 2025, 22,599 City parcels were taxable.
• 72.0% of the City 's 2025 assessed values are
residential use, from 82.5% of the parcels.

Taxable values are enrolled Jan. 2025
(reflecting 2024 activity). Tax billing starts
Sept./Oct. 2025. Revenue is remitted to
agencies from late 2025 through mid-2026.
•

REAL ESTATE TRENDS
Through June 2025, about one -third of the 43
counties where we purchase sales data are still
experiencing declines in median sale prices. In
many areas, however, home sales rebounded
in June ending three months of median price
declines. The mostly modest year -over-year
median sales price changes for June 2025
showed the State ’s Far North area having the
strongest price growth at 13.7%; the Central
Coast grew by 11.4%; Southern California grew
by 1.9%; and, the San Francisco Bay area grew
by 1.0%. The Central Valley area posted a
median sales price decline, slipping down by

0.8 %. The median sale price of Pittsburg
detached single -family homes from January
through August 2025 was $586,000, a decrease
of -$9,000 (-1.5%) from 2024's median price.

CHG %

DETACHED SINGLE-FAMILY HOMES

MEDIAN SALE PRICE HISTORY

YEAR SALES MEDIAN PRICE

12.9%$350,0002016 614

11.4%$390,0002017 613

5.9%$413,0002018 530

8.7%$449,0002019 628

8.0%$485,0002020 632

25.8%$610,0002021 707

4.1%$635,0002022 667
-5.7%$599,0002023 451
-0.7%$595,0002024 399
-1.5%$586,0002025* 280
* Year-to-Date (through August 2025)

2.0M

4.0M

6.0M

8.0M

10.0M

12.0M
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 VLFAA PROP. TAX REV. TOTAL 1% SHARE REV.

REVENUE (IN MILLIONS)

ASSESSED VALUE-BASED REVENUE HISTORY BY COMPONENT
hdlcompanies.com/proptax | 714 879.5000 Published by

Page 29 of 411 ends

BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG

In the Matter of:

Authorizing Necessary City and )
General Fund Budget Adjustments ) RESOLUTION NO. 26- Based on Year-End Projections and )
Amend the Authorized Positions )

WHEREAS, on June 16, 2025 the City Council of the City of Pittsburg adopted the Fiscal Year 2025-26 Budget with spending limits across funds (Resolution No. 25-14634); and

WHEREAS, changes to spending limits through the year are necessary to account for unexpected opportunities, unforeseen changes, or if the City’s financial position changes and additional spending authority is required to meet the needs of the City; and

WHEREAS, staff has completed the mid-year review and analysis of the Fiscal Year 2025-26 Budget; and

WHEREAS, it has been determined that budget adjustments are necessary to fund certain operating and non-operating expenditures.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pittsburg hereby amends various funds budget for Fiscal Year 2025-26 as attached to this Resolution and updates the Authorized Position to reclassify the Development Services Coordinator position to IT Analyst II.

BE IT FURTHER RESOLVED that the Finance Director or his/her designee is hereby authorized to approve payment of goods and services received by the City of Pittsburg in accordance with the City’s approved budget, programs and policies.

PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 6th day of April 2026, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

___________________
Dionne Adams, Mayor
ATTEST:

_______________________
Alice E. Evenson, City Clerk

Page 30 of 411 ends

City Resolution Exhibit
City of Pittsburg
FY 2025/26 Budget
Mid-Year Budget Amendments
Revenue/ Expenditures/ Fund Balance/
Transfers In Transfers Out Reserves
GENERAL FUND (110)
Unrestricted General Tax Revenue
To revise general revenues:

Property Tax 185,000 185,000
Sales Tax (400,000) (400,000)
Transient Lodging Tax (450,000) (450,000)
Franchise Fees (150,000) (150,000)
Business License Tax (120,000) (120,000)
Total General Revenues (935,000) - (935,000) Program Revenues and Expenditures
To update departmental revenue and expenditure projections:

Police
Revenues Training and other reimbursements (115,000) (115,000) Expenditures Legal costs 50,000 (50,000) Expenditures Redistribution of vacancy savings (1,000,000) 1,000,000 (115,000) (950,000) 835,000
Public Works
Revenues
Engineering inspection fees, encroachment
permits and other charges 239,300 239,300
Revenues
Street sweeping charges and other
reimbursements (32,100)
Expenditures
Increase in swim center utilities, materials and
supplies costs 65,500 (65,500)
Expenditures Redistribution of vacancy savings (940,000) 940,000 207,200 (874,500) 1,113,800
Community and Economic Development
Revenues
Increase in development reimbursements of
planning fees 99,000 99,000
Revenues
Decrease in various building permit and
planning fees (109,100) (109,100)
Expenditures
Legal costs for receivership actions taken by
the City 155,000 (155,000)
Expenditures
Increase in contractual building plan check
services offset by reduction in materials and
supplies 37,100 (37,100)
(10,100) 192,100 (202,200)
Recreation
Revenues
Increase in special events, recreation fee and
donation revenue reduced by decline in Small
World Park entrance fees 13,900 13,900
Expenditures
Increase in part-time labor costs for Senior
Center and Sport activities 51,000 (51,000) Expenditures Increase in legal and various operating costs 17,000 (17,000) 13,900 68,000 (54,100)
City Attorney
Expenditures Redistribution of vacancy savings (5,000) 5,000 Expenditures Legal costs 50,000 (50,000) - 45,000 (45,000)

Page 1 ends

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City Resolution Exhibit
City of Pittsburg
FY 2025/26 Budget
Mid-Year Budget Amendments
Revenue/ Expenditures/ Fund Balance/
Transfers In Transfers Out Reserves
City Clerk
Expenditures Increase in contractual services 15,000 (15,000) - 15,000 (15,000)
City Council
Expenditures Supplies and materials 3,100 (3,100) - 3,100 (3,100)
City Manager's Office
Expenditures Increase in contractual services 15,000 (15,000) - 15,000 (15,000)
Finance
Expenditures Labor costs and professional services 335,000 (335,000) - 335,000 (335,000)
Nondepartmental
Expenditures Redistribution of vacancy savings 4,000,000 (4,000,000) Expenditures
Increase in contractual services and postage
costs 226,700 (226,700)
Transfers Out
Allocate funding for Pittsburg 125th
Anniversary special events 25,000 (25,000) - 4,251,700 (4,251,700)
Economic Development (160)
Revenue Reduction in B.I.D. Tax revenue (30,000) - (30,000) Total Economic Development Fund (30,000) - (30,000) Total, General Fund (869,000) $ 3,100,400$ (3,937,300)$

OTHER FUNDS
Gas Tax HUTA (201)
Revenue Investment income (75,131) $ - $ (75,131)$ Total Gas Tax HUTA Fund (75,131) - (75,131) Gas Tax Road Maintenance & Rehab (RMRA) (202)
Revenue Investment income (64,196) - (64,196) Total Gas Tax Road Maintenance & Rehab Fund (64,196) - (64,196) Measure J Tax (204)
Revenues Investment income (33,379) (33,379) Revenues ECCRFFA Reimbursement for BART
Pedestrian & Bicycle Connectivity project 3,551,824 3,551,824 Operating Expenditures Miscellaneous Services & Supplies - (5,000) 5,000 Total Measure J Tax Fund 3,518,445 (5,000) 3,523,445 Citywide Lighting & Landscape (205)
Operating Expenditures Operating costs reduction - (97,100) 97,100 Total Citywide Lighting & Landscape Fund - (97,100) 97,100

Page 2 ends

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City Resolution Exhibit
City of Pittsburg
FY 2025/26 Budget
Mid-Year Budget Amendments
Revenue/ Expenditures/ Fund Balance/
Transfers In Transfers Out Reserves
National Pollutant Discharge Elimination System (NPDES) (207) Revenues Special Assessment and other
reimbursements (348,100) - (348,100) Operating Expenditures Increase in contractual services and overtime - 74,100 (74,100) Total NPDES Fund (348,100) 74,100 (422,200) Solid Waste (210)
Revenues Grant revenue and solid waste charges 4,600 4,600 Operating Expenditures Decrease in contractual services - (235,900) 235,900 Total Solid Waste Fund 4,600 (235,900) 240,500 Marina Vista Field Replacement Fund (213)
Operating Expenditures Payment to Pittsburg Unified School District - 344,540 (344,540) Total Marina Vista Field Replacement Fund - 344,540 (344,540) Hillview Jr. High Athletic Field (214)
Operating Expenditures Payment to Pittsburg Unified School District - 459,746 (459,746) Total Marina Vista Field Replacement Fund - 459,746 (459,746) Park Maintenance CFD 2007-1 (217)
Operating Expenditures Increase in labor costs - 43,700 (43,700) Total Park Maintenance CFD 2007-1 Fund - 43,700 (43,700) R/R AVE BART CFD 2014 (219)
Revenues Reduction in CFD Special Tax revenues 15,000 - 15,000 Total R/R AVE BART CFD 2014 Fund 15,000 - 15,000 US EPA Grants (256)
Operating Expenditures Reduction in operating costs - (51,000) 51,000 Total US EPA Grants Fund - (51,000) 51,000 Miscellaneous Grants Fund (299)
Revenues Increase in recreation grant revenue 200,000 - 200,000 Total Miscellaneous Grants Fund 200,000 - 200,000 Pittsburg CIP (301)
Dream Courts CIP Transfer in from PPC and capital project expenditures for Dream Courts project 4,000,000 4,000,000 - Pittsburg 125th Anniversary Transfer in from the General Fund; Expenditure Budget set up 25,000 25,000 - Total Pittsburg CIP Fund 4,025,000 4,025,000 - Local Traffic Mitigation (303)
Revenues Increase in revenues 170,000 - 170,000 Capital Expenditures Increase in contractual and professional services - 58,000 (58,000) Total Local Traffic Mitigation Fund 170,000 58,000 112,000 Park Dedication (304)
Capital Expenditures Increase in labor costs - 31,000 (31,000) Total Park Dedication Fund - 31,000 (31,000)

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City Resolution Exhibit
City of Pittsburg
FY 2025/26 Budget
Mid-Year Budget Amendments
Revenue/ Expenditures/ Fund Balance/
Transfers In Transfers Out Reserves
Bailey Road Maintenance (312)
Revenues Increse in Bailey Road surcharge revenue 146,800 - 146,800 Total Bailey Road Maintenance Fund 146,800 - 146,800 Water (501)
Operating Expenses Increase in contractual services, utilties cost and other operating expenses 46,200 295,650 (249,450) Capital Expense Increase in construction costs - 38,200 (38,200) Capital Expenditures Defund inactive project - (2,550,000) 2,550,000 Total Water Fund 46,200 (2,216,150) 2,262,350 Sewer Facility-Reserve Coll System Cap Buy-In (522)
Capital Expenditures Increase in design expenses - 22,000 (22,000) Total Sewer Facility-Reserve Coll System Cap Buy-In Fund - 22,000 (22,000) Waterfront Operations (540)
Operating Expenses Increase in lease payments and contractual services - 84,500 (84,500) Total Waterfront Operations Fund - 84,500 (84,500) Marina (550)
Revenues Reduction in fuel sales (86,000) - (86,000) Total Marina Fund (86,000) - (86,000) Fleet Maintenance (611)
Revenues Proceeds from sale of assets (15,000) - (15,000) Total Fleet Maintenance Fund (15,000) - (15,000) Building Maintenance (612)
Revenues Increase in reimbursement revenues 1,500 - 1,500 Operating Expenses Increase in operating expenses - 34,500 (34,500) Total Building Maintenance Fund 1,500 34,500 (33,000) Employee Fringe Benefits (631)
Revenues Establish budget for interdepartmental charges2,400,000 - 2,400,000 Total Employee Fringe Benefits Fund 2,400,000 - 2,400,000 Other Post-Employement Benefits (633)
Expenses Additiona contribution to CERBT - 1,000,000 (1,000,000) Total Other Post-Employement Benefits - 1,000,000 (1,000,000) Total, Other Funds 9,939,118 $ 3,571,936$ 6,367,182$

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Resolution No. 26- Page 1 of 2 April 6, 2026

BEFORE THE GOVERNING BOARD OF THE PITTSBURG ARTS AND COMMUNITY

FOUNDATION OF THE CITY OF PITTSBURG

In the Matter of:

Authorizing Necessary Budget Adjustments )
For the Pittsburg Arts and Community ) RESOLUTION NO. 26- Foundation Budget for Fiscal Year 2025-26 )

WHEREAS, the Pittsburg Arts and Community Foundation, Inc. (Foundation) is a nonprofit, 501(c)3 Foundation formed for the purpose of providing assistance to the City of Pittsburg, and all actions, budgets, projects and programs that the Foundation engages in or approves must be reasonably related to, or in furtherance of the Foundation’s charitable purposes as stated in the Articles of Incorporation as amended on March 1, 2010; and

WHEREAS, the Foundation prepares and adopts the Pittsburg Arts and Community Foundation, Inc. budget with the intent of providing a planned program for services and a financial system to carry out the planned program of services; and

WHEREAS, on December 15, 2025 the Governing Board of the Pittsburg Arts and Community Foundation of the City of Pittsburg, adopted the Fiscal Year 2025-26 Budget by Resolution No. 25-094; and

WHEREAS, staff has completed the mid-year review of the Fiscal Year 2025-26 Budget; and

WHEREAS, it has been determined that budget adjustments are necessary to fund certain operating and non-operating expenditures; and

WHEREAS, staff recommends an expenditure budget increase in the amount of $100,000.

NOW, THEREFORE, BE IT RESOLVED, by the Governing Board of the Pittsburg Arts and Community Foundation of the City of Pittsburg hereby authorizes an expenditure budget increase in the amount of $100,000.

BE IT FURTHER RESOLVED that the Finance Director or his/her designee is hereby authorized to approve payment of goods and services received by the Pittsburg Arts and Community Foundation in accordance with the Pittsburg Arts and Community foundation’s approved budget, programs and policies.

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Resolution No. 26- Page 2 of 2 April 6, 2026

PASSED AND ADOPTED by the Governing Board of the Pittsburg Arts and Community Foundation at a regular meeting on the 6th day of April 2026, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Dionne Adams, Chair
ATTEST BY:

Alice E. Evenson, Board Secretary

Page 36 of 411 ends

PACF Resolution Exhibit
Pittsburg Arts and Community Foundation
FY 2025/26 Budget
Mid-Year Budget Amendments
Revenue/ Expenditures/ Fund Balance/
Transfers In Transfers Out Reserves
Pittsburg Arts and Community Foundation (258)
Operating Expenditures Bookstore transfer to the new owner -$ 100,000$ (100,000)$ Total Pittsburg Arts and Community Foundation Fund -$ 100,000$ (100,000)$

Page 1 ends

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Resolution No. 26- Page 1 of 2 April 6, 2026

BEFORE THE GOVERNING BOARD OF THE PITTSBURG POWER COMPANY

OF THE CITY OF PITTSBURG

In the Matter of:

Authorizing Necessary Budget Adjustment )
For Pittsburg Power Company Based on ) RESOLUTION NO. 26- Year-End Projections )

WHEREAS, on June 16, 2025 the Board of Directors of the Pittsburg Power Company, a Joint Powers Authority, adopted the Fiscal Year 2025-26 Budget (Resolution No. 25-484); and

WHEREAS, the City prepares and adopts the Pittsburg Power Company Budget with the intent of providing a planned program for services and a financial system to carry out the planned program of services; and

WHEREAS, staff has completed the mid-year review of the Fiscal Year 2025-26 Budget; and

WHEREAS, it has been determined that budget adjustments are necessary to fund certain operating and non-operating expenses; and

WHEREAS, staff recommends an expense budget increase in the amount of $4,458,000 and an increase in revenue budget in the amount of $264,397 for the Pittsburg Power Company fund; and

WHEREAS, staff recommends an expense budget increase in the amount of $236,322 for the Island Energy fund.

NOW, THEREFORE, BE IT RESOLVED by the Governing Board of the Pittsburg Power Company of the City of Pittsburg hereby authorizes an expense budget increase of $4,458,000 for the Pittsburg Power Company fund, resulting in an increased expense appropriation for that fund, and an revenue budget increase of $264,397, and an increased expense budget of $236,322 for the Island Energy fund.

BE IT FURTHER RESOLVED that the Finance Director or his/her designee is hereby authorized to approve payment of goods and services received by the Pittsburg Power Company of the City of Pittsburg in accordance with the Company’s approved budget, programs and policies.

Page 38 of 411 ends

Resolution No. 26- Page 2 of 2 April 6, 2026

PASSED AND ADOPTED by the Governing Board of the Pittsburg Power Company of the City of Pittsburg at a regular meeting held on the 6th day of April 2026, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

_____________________
Dionne Adams, Chair
ATTEST:
____________________________
Darin E. Gale, Executive Secretary

Page 39 of 411 ends

PPC Resolution Exhibit
Pittsburg Power Company
FY 2025/26 Budget
Mid-Year Budget Amendments
Revenue/ Expenditures/ Fund Balance/
Transfers In Transfers Out Reserves
Island Energy (580)
Operating Expenses Repayment of loan to PPC -$ 236,322$ (236,322)$ Total Island Energy Fund - 236,322 (236,322) Pittsburg Power Company (590)
Revenues Island Energy loan payoff 236,322 - 236,322 Revenues Future Build program grant revenue 28,075 - 28,075 Operating Expenses
Increase in utilities, legal, other contractual &
professional expenses; increase in Future
Build program expenses 458,000 (458,000)
Transfer Out Funding for Dream Courts project 4,000,000 (4,000,000) Total Pittsburg Power Fund 264,397 4,458,000 (4,193,603) Total 264,397 $ 4,694,322$ (4,429,925)$

Page 1 ends

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Resolution No. 26- Page 1 of 2 April 6, 2026

BEFORE THE SOUTHWEST PITTSBURG GEOLOGIC HAZARD ABATEMENT

DISTRICT II OF THE CITY OF PITTSBURG

In the Matter of:

Authorizing Necessary Budget Adjustments )
For the Southwest Pittsburg Geologic ) RESOLUTION NO. 26- Hazard Abatement District II (GHAD II) )
Based on Year-End Projections )

WHEREAS, on June 16, 2025 the Southwest Pittsburg GHAD II Board of the City of Pittsburg (GHAD II), adopted the Fiscal Year 2025-26 Budget (Resolution No. 25- 090); and

WHEREAS, the City prepares and adopts the GHAD II Budget with the intent of providing a planned program for services and a financial system to carry out the planned program of services; and

WHEREAS, staff has completed the mid-year review of the Fiscal Year 2025-26 Budget; and

WHEREAS, it has been determined that budget adjustments are necessary to fund certain operating and non-operating expenditures; and

WHEREAS, staff recommends an expenditure budget increase in the amount of $5,497 and a decrease in revenue budget in the amount of $5,500.

NOW, THEREFORE, BE IT RESOLVED that the Southwest Pittsburg GHAD II Board hereby authorizes an expenditure budget increase in the amount of $5,497 and a revenue budget decrease in the amount of $5,500.

BE IT FURTHER RESOLVED that the Finance Director or his/her designee is hereby authorized to approve payment of goods and services received by the GHAD II in accordance with its approved budget, programs and policies.

Page 41 of 411 ends

Resolution No. 26- Page 2 of 2 April 6, 2026

PASSED AND ADOPTED by Southwest Pittsburg GHAD II Board of the City of Pittsburg at a regular meeting held on the 6th day of April 2026, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

_____________________
Dionne Adams, Chair
ATTEST:
____________________________
Alice E. Evenson, Agency Secretary

Page 42 of 411 ends

GHAD Resolution Exhibit
Southwest Pittsburg Geologic Hazard Abatement District II FY 2025/26 Budget
Mid-Year Budget Amendments
Revenue/ Expenditures/ Fund Balance/
Transfers In Transfers Out Reserves
GHAD Administration (208)
Operating Expenditures Reduction in operating expenses -$ 5,497$ (5,497)$ Transfers In Reduction in Transfers-In 5,500 5,500 Total GHAD Administration Fund 5,500$ 5,497$ 3 $

Page 1 ends

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Resolution No. 26- Page 1 of 2 April 6, 2026

BEFORE THE GOVERNING BOARD OF THE SUCCESSOR AGENCY FOR THE

REDEVELOPMENT AGENCY OF THE CITY OF PITTSBURG

In the Matter of:

Authorizing Necessary Budget Adjustment)
For the Successor Agency for the )
Redevelopment Agency of the City of ) RESOLUTION NO. 26- Pittsburg Based on Year End Projections )

WHEREAS, on June 16, 2025 the Governing Board of the Successor Agency for the Redevelopment Agency of the City of Pittsburg (Successor Agency), adopted the Fiscal Year 2025-26 Budget by Resolution No. 25-058; and

WHEREAS, the City prepares and adopts the Successor Agency’s Budget with the intent of providing a planned program for services and a financial system to carry out the planned program of services; and

WHEREAS, staff has completed the mid-year review of the Fiscal Year 2025-26 Budget; and

WHEREAS, it has been determined that budget adjustments are necessary to fund certain operating and non-operating expenditures; and

WHEREAS, staff recommends an expenditure budget increase in the amount of $47,316.

NOW, THEREFORE, BE IT RESOLVED, that the Governing Board of the Successor Agency for the Redevelopment Agency of the City of Pittsburg hereby authorizes an expenditure budget increase in the amount of $47,316 resulting in an increased expenditure appropriation.

BE IT FURTHER RESOLVED that the Finance Director or his/her designee is hereby authorized to approve payment of goods and services received by the Successor Agency in accordance with the Successor Agency’s approved budget, programs and policies.

Page 44 of 411 ends

Resolution No. 26- Page 2 of 2 April 6, 2026

PASSED AND ADOPTED by the Governing Board of the Successor Agency for the Redevelopment Agency of the City of Pittsburg at a regular meeting on the 6th day of April 2026, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

_____________________
Dionne Adams, Chair
ATTEST:
____________________________
Alice E. Evenson, Agency Secretary

Page 45 of 411 ends

Successor Agency Resolution Exhibit
Successor Agency
FY 2025/26 Budget
Mid-Year Budget Amendments
Revenue/ Expenditures/ Fund Balance/
Transfers In Transfers Out Reserves
Successor Agency to the Former RDA (801)
Operating Expenses Increase in Other Contractual & Professional Services, Training, and Membership Dues -$ 47,316$ (47,316)$ Total Successor Agency to the Former RDA Fund -$ 47,316$ (47,316)$

Page 1 ends

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Combined Agency/City Council Minutes Page 1 of 4 March 16, 2026

CITY OF PITTSBURG

CITY COUNCIL/AGENCY CONCURRENT MEETING MINUTES

DATE: March 16, 2026

LOCATION: Council Chamber, City Hall, 65 Civic Avenue, Pittsburg, CA 94565

CITY COUNCIL/AGENCY MEMBERS
Dionne Adams, Mayor/Chair
Angelica Lopez, Vice-Mayor/Chair
Juan Antonio Banales, Council/Agency Member
Arlene Kobata, Council/Agency Member
Jelani Killings, Council/Agency Member
S.L. Floyd, Agency Member
Annie Hill Herring, Agency Member

APPOINTED OFFICIALS
Darin Gale, City Manager/Executive Director
Donna Mooney, City Attorney/Legal Counsel
Alice E. Evenson, City Clerk/Agency Secretary (elected) Nancy Parent, City Treasurer (elected)

Mayor Adams called the regular meeting to order at 7:00 P.M. in the Council Chamber at City Hall, 65 Civic Avenue Pittsburg, CA.

ROLL CALL

All Members were present.

PLEDGE OF ALLEGIANCE

Mayor Adams led the Pledge of Allegiance.

PRESENTATIONS

1. New Employee Introductions

2. Bay Area Air District Community Grant

PROCLAMATIONS

7. Think Pittsburg – Bishop Wisecarver

8. World Down Syndrome Day

9. Cesar Chavez Day

Page 47 of 411 ends

Combined Agency/City Council Minutes Page 2 of 4 March 16, 2026

CITY MANAGER REPORTS/REMARKS

City Manager Gale provided an update on the recruitment for Police Chief.

PUBLIC COMMENTS

Ramon Amaral, representative for the North States Carpenter Union provided comments against the Dreams Court Project and prevailing wages.

Joanne Henderson, Pittsburg provided comments regarding properties in Pittsburg not being upkept by owners. She is concerned only landlords are being sent notices for code violations.

COMMITTEE REPORTS

Council Member Lopez attended the Public Safety Subcommittee meeting.

Council Member Killings attended the Community and Economic Development Subcommittee as well as the Delta Diablo Board of Directors meeting.

Council Member Kobata attended the Infrastructure and Transportation Subcommittee meeting and a walking tour as part of the East Contra Costa County Habitat Conservancy Board.

Council Member Banales attended the Finance Management Subcommittee meeting.

CONSIDERATION

10. Presentation and Request for City Council Direction on the Draft Fiscal Year 2026-27 City Council Strategic Plan

Bruce Ohlson, Pittsburg asked for Road Safety to be added to the Strategic Plan.

No vote was taken or required for this item.

The Council recessed at 9:53 P.M.

The meeting recovened at 10:00 P.M. with all members present.

11. Adoption of a City Council Resolution to Accept Grant Funds and Authorize City Manager to Execute a Grant Agreement from the California Department of Transportation for the Youth and Veterans Creating a Cleaner Future Project and Amend FY 2025-26 Budget

On Motion by Vice Mayor Lopez, seconded by Member Kobata and adopted unanimously.

12. Adoption of a Pittsburg Power Company Resolution Authorizing the Executive Director to Execute Interconnection Agreement Between Pittsburg Power Company and Pacific Gas & Electric Company, to Pay Costs Associated with the Agreement After Receiving Funds from the Developer, and to Take Any Actions Necessary to Effectuate the Agreement

Mayor Adams recused herself from this item. She noted there was a conflict based on financial interest in a business entity and source of income. The business entity is her employer, PG&E, which is an investor-owned utility providing natural gas and electricity in California.

Page 48 of 411 ends

Combined Agency/City Council Minutes Page 3 of 4 March 16, 2026

She left the dais at 10:11 P.M.

On Motion by Member Killings, seconded by Member Banales and adopted by the following vote:

AYES: Banales, Killings, Kobata, Lopez
ABSENT: Adams [Recused]

Mayor Adams returned to the dais at 10:41 P.M.

CONFLICT OF INTEREST STATEMENT

There were no Conflict-of-Interest Statements.

COMBINED CITY COUNCIL, PITTSBURG ARTS AND COMMUNITY FOUNDATION,

PITTSBURG POWER COMPANY, SOUTHWEST PITTSBURG GHAD II AND SUCCESSOR

AGENCY CONSENT CALENDAR

On Motion by Member Banales, seconded by Member Killings and adopted unanimously.

13. Minutes of March 2, 2026

14. Adoption of a City Council Resolution Authorizing an Agreement with Delta Diablo Sanitation for Contra Costa Clean Water Program Inspection Activities

15. Adoption of a City Council Resolution to Establish the Fiscal Year 2026/27 Annual Stormwater Utility Area Fee

16. Adoption of a City Council Resolution to Approve and Allocate Funds for Project 5130 — Terry Court Sewer Repair and amend the CIP Budget

17. Adoption of a City Council Resolution to Accept Grant Funds from Contra Costa County, Amend FY 2025-26 Recreation Programs Budget, and Authorize City Manager to Execute Grant Contracts

18. Adoption of a City Council Resolution to Accept Grant Funds from Contra Costa County District V Community Impact Funds, Authorize the City Manager to Execute the Agreement, and Amend FY 2025-26 Recreation Department Budget

COUNCIL REQUEST FOR FUTURE AGENDA ITEMS

There were no requests for future agenda items.

COUNCIL MEMBER REMARKS

Council Member Kobata provided remarks about Read Across America week, she was honored to read at Parkside Elementary. She also provided comments about two ribbon cuttings she attended (Roof & Realm and Masala House), as well as a tree planting event at

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Combined Agency/City Council Minutes Page 4 of 4 March 16, 2026 Hillsdale Park and a repair workshop at the Senior Center.

Mayor Adams commended Council and staff for all the hard work put into the draft Fiscal Year 2026-27 City Council Strategic Plan.

ADJOURNMENT

The meeting adjourned at 10:47 P.M. to April 6, 2026.

Respectfully submitted,

Alice E. Evenson, City Clerk

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STAFF REPORT

MEETING DATE: April 6, 2026

TO: Mayor and Council Members

FROM: Darin E. Gale‚ City Manager
Elena Adair, Director of Finance
Isaac Williams, Financial Analyst

SUBJECT: Receive and File Report on the Review of Development Impact Fees Received by the City of Pittsburg Pursuant to Mitigation Fee Act

EXECUTIVE SUMMARY

FISCAL IMPACT

There is no fiscal impact in receiving the report on the review of the Development Impact Fees received by the City of Pittsburg.

RECOMMENDATION

Receive and file report pertaining to the review of Development Impact Fees received by the City of Pittsburg that are subject to Mitigation Fee Act reporting requirements.

BACKGROUND

Many cities charge fees on new development to fund public facilities and improvements such as streets, libraries, sewer and water systems and storm drains. These fees are commonly known as Development Impact Fees. In order to ensure that these fees are

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spent in a timely manner and on projects for which they were collected, the State Legislature passed the Mitigation Fee Act, (AB 1600). The law applies to developer fees increased or imposed on or after January 1, 1989. The Mitigation Fee Act, found at Government Code Sections 66000-66008, generally sets forth the following four requirements:

1. A local jurisdiction must follow the process set forth in the statutes and make certain determinations regarding the purpose and use of the fees and establish a “nexus” or connection between a development project or class of project and the public improvement being financed with the fee.

2. The fee revenue must be segregated from the general fund to avoid commingling of public improvement fees in the general fund.

3. If a local jurisdiction has had possession of a developer fee for five years or more and has not committed that money to a project or actually spent that money, then it must make findings describing the continuing need for that money. In addition, an annual report must be made of fees collected, interest earned, projects on which fees were expended, and any transfers or loans from the fee account. This report is to be reviewed by the local agency assessing the fees.

4. If a local jurisdiction cannot make the findings required under Paragraph 3, the city or county must refund the fees collected.

It should be noted that Mitigation Fee Act reporting requirements do not apply to the following fees:

• Fees charged in lieu of parkland dedication,
• Regulatory and processing fees,
• Fees collected pursuant to development agreements,
• Fees collected pursuant to a reimbursement agreement that exceeds the developer’s share of an improvement, and
• Assessment district proceeds or taxes.

SUBCOMMITTEE FINDINGS

This item was not presented to a subcommittee.

STAFF ANALYSIS

The City of Pittsburg collects the following Developer Impact Fees:
• Kirker Creek Drainage Fee
• Local Traffic Mitigation Fee
• Inclusionary Housing In-Lieu Fee

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• Traffic Impact Fair Share Fee
• Pittsburg Regional Transportation Development Impact Mitigation Fee • Water Facility Reserve Fees
• Sewer Facility Reserve Fees
• Park Dedication Fee (Quimby Fee)
The Local Traffic Mitigation Fee, Pittsburg Regional Transportation Development Impact Mitigation Fees, Kirker Creek Drainage Fees, Inclusionary Housing In-Lieu Fees, Traffic Impact Fair Share Fee and the Sewer and Water Facility Reserve Fees that the City of Pittsburg collects, qualify as Development Impact Fees. Therefore, these fees must comply with the above referenced statutes. Government Code Section 66001 requires the City to make available to the public certain information regarding development impact fees for each fund within 180 days after the end of the fiscal year.

Due to vacancies, staff was unable to compile the report within the statutory timeframe.

Expenditures on the fees collected must occur within a five-year period of collection unless the City can make the appropriate findings that there remains reasonable relationships between the current need for the fees and the purpose for which they were originally proposed.

Kirker Creek Drainage Fees collected in the amount of $382,328 have been on deposit for over five years and findings are stated on page 2 of the attached report. In summary, the Kirker Creek Drainage Fund is insufficient to construct the prioritized improvements recommended in the 2001 Storm Water Master Plan. As development continues in the Kirker Creek watershed area, additional funds will be collected and deposited for construction of the prioritized improvements.

In addition, there are Traffic Impact Fair Share funds in the amount $554,626 that have been on deposit for over five years and findings are stated on Page 7 of the attached report. In summary, the fair share funds have been on deposit to address future capital projects in the areas near West Leland Road/Oak Hills Drive; East Leland Road/Century Boulevard; Willow Pass Road/Avila Road; San Marco Boulevard/West Leland Road; and Bailey Road/West Leland Road. The funding held on deposit will be augmented as development in the respective areas occurs.

Although the Park Dedication Fee is covered under the Quimby Act and not Mitigation Fee Act, staff has included the Park Dedication Fee in this report for reporting purposes only.

ATTACHMENTS: FY 2024-25 Mitigation Fee Act (AB1600) Report

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STAFF REPORT

MEETING DATE: April 6, 2026

TO: Mayor and Council Members

FROM: Darin E. Gale‚ City Manager
Elena Adair, Director of Finance

SUBJECT: Receive and File Annual Comprehensive Financial Report and Other Audit Reports for the Fiscal Year Ended June 30, 2025

EXECUTIVE SUMMARY

The Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2025, has been completed and complies with the Government Accounting Standards Board (GASB) reporting requirements. The City has received an unqualified or “clean opinion” issued by the City’s auditing firm, Badawi & Associates.

FISCAL IMPACT

This report is informational and there is no financial impact.

RECOMMENDATION

City Council receive and file annual financial reports for information purposes only.

BACKGROUND

Government Code Sections 37208, 40804 and 53891 require that the City prepare and publish an annual financial report. Badawi & Associates, a certified public accounting firm, conducted the audits of the City’s financial statements for the fiscal year ended June 30, 2025. Fiscal year 2025 ACFR was issued on February 17, 2026.

The following informational reports are included with this staff report:

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• Annual Comprehensive Financial Report (ACFR);
• Single Audit Report, including auditor Memorandum on Internal Control; • Independent Accountant’s Report on Applying Agreed-Upon Procedures Related to the Article XIII-B Appropriations Limit for the year ended June 30, 2022 (Appropriations Limit); and
• Auditor Required Communications.

Financial statements have been distributed to other agencies as required by various documents.

SUBCOMMITTEE FINDINGS

Finance Subcommittee received a presentation on the ACFR on March 4, 2026. Staff responded to subcommittee members’ questions.

STAFF ANALYSIS

Annual Comprehensive Financial Report. The City received an unmodified (clean) opinion on the ACFR. This means that the financial statements are presented fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025 and the respective changes in financial position and, where applicable, cash flows thereof in accordance with generally accepted accounting principles. The ACFR conforms to generally accepted accounting principles and the latest applicable Governmental Accounting Standards Board (GASB) Statements.

Single Audit. A Single Audit is required for any non-federal entity that expends $750,000 or more of federal awards during the non-federal entity’s fiscal year. The Single Audit report for the City includes the Schedule of Expenditures of Federal Awards, which reports that the City expended $42,322,266 of federal funding in FY 2024-25. The Single Audit report includes one audit finding related to document retention for suspension and debarment verification. Staff agrees with the findings and is working on correcting the deficiency identified during the audit.

Included in the Single Audit report is the Memorandum on Internal Control over financial reporting. It is a required communication that includes one significant deficiency related to restatements of previously issued financial statements.

Restatements were due to error corrections identified by staff. Staff will be working on correcting an issue identified during the current audit.

Appropriations Limit. California law requires the City to have a CPA perform certain agreed-upon procedures to the Appropriations Limit under American Institute of Certified Public Accountants attestation standards. Based upon the application of these procedures, the auditors found that nothing came to their attention that caused them to

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believe that the Appropriations Limit was not computed in accordance with Article XIIIB of the California Constitution.

The Auditor Required Communications to the City Council is additional communication required by audit standards, which convey that there were no difficulties encountered performing the audit or disagreements between the auditors and City staff. The letter also includes information about significant estimates and footnote disclosures included in the financial statements.

These financial statements are routinely published and distributed consistent with all applicable legal requirements and are available for public review at the City, as well as posted on the City website. These reports were prepared by Finance and responsibility for both the accuracy of the presented data and the completeness and fairness of their presentation, including all disclosures, rests with the City. Staff believes the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial affairs have been included.

The Annual Comprehensive Financial Report is available for public review as follows:

FY 2025 Annual Comprehensive Financial Report

ATTACHMENTS:

1. Annual Comprehensive Financial Report

2. Single Audit Report

3. Appropriations Limit

4. Auditor Required Communication

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www.pittsburgca.gov

FINANCIAL REPORT
Annual Comprehensive
Fiscal Y ear Ended June 30, 2025
Photo Credit: Barry Schwartz via Gates Studio

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City of Pittsburg
California
Annual Comprehensive
Financial Report
Fiscal Year Ended June 30, 2025

Prepared by the Finance Department

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CITY OF PITTSBURG
Annual Comprehensive Financial Report
June 30, 2025

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City of Pittsburg
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents
P
age
IN

TRODUCTORY SECTION
T
able of Contents ............................................................................................................................................................ i Letter of Transmittal ...................................................................................................................................................... v City of Pittsburg Organizational Chart................................................................................................................... xiii List of City Officials ................................................................................................................................................... xiv Map of the City ............................................................................................................................................................. xv GFOA Certificate ........................................................................................................................................................ xvi

FINANCIAL SECTION
In
dependent Auditor's Report ................................................................................................................................... 1 Management’s Discussion and Analysis ................................................................................................................. 5 Basic Financial Statements:

Government-Wide Financial Statements
Statement of Net Position ..................................................................................................................................... 21 Statement of Activities .......................................................................................................................................... 22 Fund Financial Statements
Governmental Funds:

Balance Sheet ...................................................................................................................................................... 28 Reconciliation of Governmental Funds Balance Sheet
to the Government-wide Statement of Net Position .................................................................................. 30 Statement of Revenues, Expenditures and Changes in Fund Balances ...................................................... 32 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ................................................................................................................................... 34 Proprietary Funds:

Statement of Net Position .............................................................................................................................. 36 Statement of Revenues, Expenses, and Changes in Fund Net Position ................................................. 38 Statement of Cash Flows ............................................................................................................................... 40 Fiduciary Funds:

Statement of Fiduciary Net Position ............................................................................................................ 43 Statement of Changes in Fiduciary Net Position........................................................................................ 44 Notes to the Basic Financial Statements ................................................................................................................ 47 i

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City of Pittsburg
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents
P
age
FINA
NCIAL SECTION, Continued
Req
uired Supplementary Information
Budgets and Budgetary Accounting ...................................................................................................................... 127 Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund .......................................................................................................................................................... 128 Housing Authority (Section 8) - Special Revenue Fund ................................................................................... 129 Housing Successor Agency - Special Revenue Fund ........................................................................................ 130 Miscellaneous Grants - Special Revenue Fund ................................................................................................. 131 Agent-Multiple Employer Pension Plan:

Schedule of Changes in the Net Pension Liability and Related Ratios – Last 10 Years ................................ 132 Schedule of Contributions – Last 10 Years ......................................................................................................... 134 Cost-Sharing Defined Pension Plan:

Schedule of the Proportionate Share of the Net Pension Liability and Related Ratios – Last 10 Years ..... 136 Schedule of Contributions – Last 10 Years ......................................................................................................... 138 Agent-Multiple Employer OPEB Plan:

Schedule of Changes in the Net OPEB Liability and Related Ratios – Last 10 Years ................................... 140 Schedule of OPEB Contributions – Last 10 Years ............................................................................................. 142 Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:

Capital Improvement Fund ............................................................................................................................... 147 Combining and Individual Fund Financial Statements and Schedules Non-Major Governmental Funds:

Combining Balance Sheet ................................................................................................................................... 154 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................. 164 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual ........................................................................................................................................... 174 Internal Service Funds:

Combining Statement of Net Position .............................................................................................................. 194 Combining Statement of Revenues, Expenses and Changes in Net Position ............................................. 196 Combining Statement of Cash Flows ............................................................................................................... 198 Custodial Funds:

Combining Statement of Fiduciary Net Position ........................................................................................... 202 Combining Statement of Changes in Fiduciary Net Position ....................................................................... 203 ii

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City of Pittsburg
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents
P
age
S

TATISTICAL SECTION
Net Position by Component – Last Ten Fiscal Years ............................................................................................ 206 Changes in Net Position – Last Ten Fiscal Years ................................................................................................... 207 Fund Balances of Governmental Funds – First Two Fiscal Years ....................................................................... 210 Fund Balances of Governmental Funds – Last Nine Fiscal Years ....................................................................... 211 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ...................................................... 212 Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ....................................... 213 Property Tax Rates - All Overlapping Governments – Last Ten Fiscal Years................................................... 214 Principal Property Taxpayers – Current Year and Nine Years Ago ................................................................... 215 Property Tax Levies and Collections as of June 30 – Last Ten Fiscal Years....................................................... 216 Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ............................................................................... 217 Ratio of General Government Debt Outstanding – Last Ten Fiscal Years ......................................................... 218 Computation of Direct and Overlapping Debt – June 30, 2025 ........................................................................... 219 Computation of Legal Bonded Debt Margin – June 30, 2025 .............................................................................. 220 Revenue Bond Coverage Wastewater Revenue Bonds ........................................................................................ 221 Revenue Bond Coverage Water Revenue Bonds .................................................................................................. 222 Successor Agency Bonded Debt Pledged Revenue Coverage Tax Allocation Bonds – Last Ten Fiscal Years .............................................................................................................................................. 223 Demographic and Economic Statistics – Last Ten Fiscal Years .......................................................................... 224 Principal Employers - Current Year and Nine Years Ago .................................................................................. 225 Actual Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years ................ 226 Operating Indicators by Function/Program – Last Ten Fiscal Years ................................................................ 227 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ............................................................. 228 iii

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65 Civic Avenue
Pittsburg, CA 94565
P: (925) 252-6900
www.pittsburgca.gov
F
ebruary 17, 2026
Honorable Mayor
Members of the City Council
And Residents of Pittsburg
We are pleased to present the City of Pittsburg Annual Comprehensive Financial Report (ACFR) for the year ending June 30, 2025 (FY 2024-25). The information in this ACFR is prepared in accordance with “Generally Accepted Accounting Principles” (GAAP) and includes an unmodified opinion on the report by the City’s independent certified public accountants. Although we rely on the standards and expertise of these external authorities, the City is responsible for the accuracy and fairness of this report, inclusive of all disclosures that are necessary to enable the reader to understand the City’s operations.

For those readers interested in a more detailed review of the City’s financial statements, a narrative section called Management’s Discussion and Analysis (MD&A) has been included as part of the Financial Section. The MD&A reports on the financial highlights of the City and provides additional analysis of the variances and trends reported as part of the financial statements. The MD&A also discloses significant items affecting the financial condition of the City and is designed to be read in conjunction with this letter of transmittal.

City Profile
The City was incorporated in 1903 and is located along the Sacramento-San Joaquin River Delta, situated on the north side of Mount Diablo. Pittsburg is located in the northeast part of Contra Costa County.

The City is a general law city and operates utilizing the City Council-Manager form of government. The five City Council members are elected at large for staggered four-year terms to govern the City. Also elected to four-year terms are the City Treasurer and City Clerk. The City Council is responsible for establishing goals, priorities, and policies; adopting an annual budget; appointing commissions and committees; and hiring the City Manager and City Attorney. The City Manager is responsible for implementing the City Council’s policies, overseeing the day–to-day operations of the City and appointing the directors of the City’s departments.
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65 Civic Avenue
Pittsburg, CA 94565
P: (925) 252-6900
www.pittsburgca.gov
The City provides a full range of municipal services, including police, water treatment and distribution, sewer collection, streets, cultural and recreational facilities, public works, parks, economic development, planning, zoning, building inspection, code enforcement, housing assistance, marina operations, energy distribution, engineering, and general administration. The Contra Costa County Fire Protection District provides fire protection services for the City.

Reporting Entities
The financial statements included in this ACFR present the City (the primary government) with all the City funds with Housing Authority, Successor Agency (SA), Public Infrastructure Financing Authority (PIFA), Pittsburg Power Company (PPC), Southwest Pittsburg Geologic Hazard Abatement District II (GHAD II) and Pittsburg Arts and Community Foundation (PACF) as component units. These six component units are separate legal entities; however, the members of the City Council also serve as members of the Governing Boards of these component units. Therefore, the financial information for the Housing Authority, SA, PIFA, PPC, GHAD II and PACF are blended with the City’s financial information.

Economic Conditions and Outlook
The City of Pittsburg continues to make strides in increasing efficiency of services, improving infrastructure, and enhancing the overall quality of life for our residents. The City is continuing to grow, with an estimated population of over 77,000, and further commercial, industrial, and residential development in various stages of the development process. The unemployment rate remained at 4.1% in FY 2024-25.

The City’s sales tax revenue decreased from $21,347,108 in fiscal year 2024 to $19,001,806 in fiscal year 2025; an 11% decline, or approximately $2,345,302. This decrease is in line with sales tax trends throughout the Bay Area and reflects the loss of several Pittsburg businesses during the year.

Citywide property net Assessed Value (AV) increased from $10,035,783,276 in Fiscal Year 2024 to $10,409,982,902 in Fiscal Year 2025, reflecting a 3.7% growth driven by sustained consumer demand in the housing market and increase in the property value base within the City. Despite this increase in citywide assessed valuation, General Fund property tax revenues decreased from $5,256,976 in Fiscal Year 2024 to $5,057,615 in Fiscal Year 2025, a decline of $199,361 (3.8%). This reduction primarily resulted from a one-time payment recognized in prior year, coupled with higher refunds and administrative charges, and lower residual distributions. These factors offset modest gains in secured and unsecured collections.
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65 Civic Avenue
Pittsburg, CA 94565
P: (925) 252-6900
www.pittsburgca.gov
Franchise Fees totaled $6,434,796 in FY2025 compared to $6,466,363 in FY2024, representing a slight decrease of $31,566 or 0.49%. This minor reduction is primarily due to lower cable and gas utility franchise receipts, partially offset by increases in refuse- related franchise fees.

Motor Vehicle Tax revenues increased from $6,988,438 in FY2024 to $7,270,038 in FY2025, a rise of $281,600 or 4.03%.

While overall revenues showed some improvement, the top two tax revenues have declined. As a result, staff throughout the City have continued to be diligent in maintaining a low level of costs to deliver the core services to both the residents and the business community.

The City of Pittsburg’s Economic Development Division continues to build strong momentum through programs and partnerships that support local businesses, attract new investment, and connect residents with meaningful career opportunities. This past fiscal year reflected a period of visible growth, innovation, and strategic positioning for the City’s long-term economic future.

City launched the Pathways to Promise Program, a pilot initiative between the Housing Authority and the Community Development Block Grant (CDBG) Program. This program invites Housing Choice Voucher (Section 8) participants to pursue workforce training and career pathways through trusted partners such as Future Build, Renaissance Entrepreneurship Center, Opportunity Junction, and Los Medanos College. The goal is to help residents gain skills, secure employment, and improve their overall quality of life while strengthening Pittsburg’s local workforce pipeline.

Workforce development remained a cornerstone of the City’s economic strategy. The Future Build Pre-Apprenticeship Program continued training new cohorts of residents for careers in construction and skilled trades, reinforcing City’s commitment to preparing its workforce for current and future job opportunities tied to major development projects.

Several notable businesses opened or expanded operations during the fiscal year, contributing to the City’s commercial vitality. New additions such as The Lighthouse Cafe, The Nest Home Goods, and Flawless Beauty strengthened Old Town Pittsburg, while Turner’s Outdoorsman and the Law Enforcement Training Center brought new activity to key commercial corridors. In the industrial sector, Roof and Realm Manufacturing and Yatai Fabrications located in City with plans to grow its workforce, and Purple Line LLC expanded its presence. Hospitality and retail development continued with construction of the 125-room Home 2 Suites hotel and the San Marco Shopping Center anchored by Sprouts Farmers Market.
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65 Civic Avenue
Pittsburg, CA 94565
P: (925) 252-6900
www.pittsburgca.gov
Looking ahead, Pittsburg is poised for transformational growth through major projects such as the Perseus Data Center and the redevelopment of the former U.S. Steel and Corteva sites. These large-scale initiatives represent generational opportunities to bring new jobs, modern infrastructure, and innovative industries to the community.

The City also expanded its focus on sports tourism, working to attract regional tournaments and events that drive visitors to Pittsburg’s hotels, restaurants, and local businesses while enhancing recreational amenities for residents.

Through these efforts, the City is investing in people, revitalizing key sites, supporting entrepreneurs, and positioning itself as a dynamic destination for business, talent, and opportunity.

General Fund Condition and Long-term Plans
The City developed a 20-year General Fund Forecast and Balancing Plan (“20-Year Plan”) to assist the City Council and City management on the General Fund budget and use of the Budget Stabilization Fund. Periodically, the 20-Year Plan is updated based on current revenue and expenditure information.

This plan incorporates anticipated fluctuations of revenues and expenditures over a longer term, thus allowing the City to manage its affairs in a prudent fiscal manner, while providing services to residents and businesses necessary for a growing community.

Fiscal Sustainability Ordinance
In June 2017, the City passed an updated Fiscal Sustainability Ordinance to ensure the City protects its revenues and to ensure proper fiscal responsibility. As part of the Ordinance, reserve levels and funding mechanics were mandated to provide for emergencies and ensure that proper fiscal reserve levels were maintained. Within the Ordinance, reserve levels were set at 30% of annual operating expenses for the City’s General Fund, Internal Service Funds, and Enterprise Funds. The reserve level was placed at a percentage of operating expenses rather than a static number to ensure adequate reserve levels are maintained over time. The City also established a Budget Stabilization Fund to provide a minimum of $2 million or 5% of the City’s annual General Fund operating expenses. Throughout the year staff presents updates to the Finance Subcommittee regarding the reserve levels to ensure the City is in compliance with the Ordinance.
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65 Civic Avenue
Pittsburg, CA 94565
P: (925) 252-6900
www.pittsburgca.gov
Maj
or Initiatives:

Capital Projects Completed FY 2024-25:
 Frontage Road Living Green Trail
 2023/24 Pavement Management (Zone 3)
 Marina Boulevard Buffered Bicycle Lanes
 West Leland Street Lighting
 W. Leland Road and Loveridge Road Phase II Rehabilitation  Kirker Pass Road Surface Treatment
 East 3rd Street Remediation
 Reviving the Heart of Pittsburg Pride
 Corporation Yard Fueling System Replacement
 Water Treatment Plant Reservoir Control Panel & PLC Replacement  Americana Park Bypass Channel
Capital Projects Scheduled for Construction during FY 2025-26:
 City Park Restroom Facility
 BART Pedestrian and Bike Connectivity
 Crestview Drive Pavement Improvements
 Zone 4 Pavement Management
 Citywide Roadway Improvements
 Zone 7 Pavement Management
 Bailey Road Pavement Repair
 Trail Crossing Improvements (TDA)
 Citywide Traffic Signal Improvements
 Annual Citywide Striping and Signage
 Countywide Smart Signals
 Riverview Park Fishing Pier
 Willow Pass Storm Drain Repair
 Buchanan Road Slope Repair
 60 Civic Building Repair
 Pittsburg Premier Fields
 California Theater Restroom
 City Council Chambers Upgrade
 CDBG ADA Curb Ramps Installation
 Linscheid Drive Traffic Calming
 Water Treatment Plant Filtration Improvement & Hypochlorite Conversion  Central Harbor Park/Boat Launch
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65 Civic Avenue
Pittsburg, CA 94565
P: (925) 252-6900
www.pittsburgca.gov
O
ther Information
The City is responsible for establishing and maintaining internal control structures designed to ensure that the assets are protected from loss, theft, or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP. The internal control structures are designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

Single Audit and Compliance
As a recipient of federal and state financial assistance, the City is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management and the Finance staff of the City. In management’s opinion, the City’s internal controls adequately safeguard assets and provide reasonable assurance of the proper recording of financial transactions.

The City is required to undergo an annual Single Audit in conformity with the provisions of the Federal Single Audit Act Amendments of 1996 and 2CFR part 200. The auditor’s report related specifically to the Single Audit will be presented as a separate document.

Budgetary Controls
The City maintains budgetary controls to safeguard City assets and ensures compliance with legal provisions embodied in the annual appropriated budget as approved by the City Council. Activities of the General Fund, Special Revenue funds, and Capital Projects funds are included in the annual appropriated budget. The level of budgetary control (the level at which expenditures cannot legally exceed the appropriated amount) is established at the fund level. The City also applies and maintains an encumbrance accounting system as a technique to accomplishing budgetary control. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. The City has received the “Government Finance Officers Association’s Distinguished Budget Presentation” award for its budget document.
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65 Civic Avenue
Pittsburg, CA 94565
P: (925) 252-6900
www.pittsburgca.gov
Appropriations Limit
Proposition 4, the “Gann” initiative, was passed by California voters in 1978 and is intended to limit governmental General Fund appropriations. The appropriation limit is calculated each year based upon FY 1978-79 appropriations, modified by the composite consumer price index, and population changes that have occurred in subsequent years.

The City’s General Fund appropriation limit for FY 2024-25 amounted to $218.7 million.

The City’s FY 2024-25 General Fund final budget was $60.0 million, which is below the appropriation limit.

Cash Management
The City temporarily holds idle cash in the Local Agency Investment Fund (LAIF) as administered by the Treasurer of the State of California. LAIF invests in obligations of the United States Treasury, Federal Agency Coupons and Discount Notes, Medium Term Notes, and Certificates of Deposit. These investments are permitted under an investment policy adopted by the City Council which defines eligible investments and maturities of the City’s investment portfolio and requires securities to be held by the City or by a qualified custodial institution and registered in the name of the City. The quarterly return on LAIF pooled investments on June 30, 2025, was 4.3%, a decrease when compared to the prior fiscal year of 4.5%. Total LAIF interest earnings were $1,673,899 for FY 2024- 25, a decrease of $94,156 compared to the prior fiscal year amount of $1,768,055.

Risk Management
The City is self-insured for the first $25,000 of each loss and maintains excess liability insurance through the Municipal Pooling Authority (MPA). The City is self-insured for liability occurrences over $29 million per occurrence. The City also maintains statutory excess workers’ compensation insurance through the MPA.

Independent Audit
Independent public accounting firm, Badawi & Associates, Certified Public Accountants, has examined the financial statements of the City and its affiliated agencies. Their opinion on the City’s financial statements and supplemental information is included within this report.

Certificate of Achievement
The Government Finance Officers Association of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Pittsburg for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024.

In order to receive the “Certificate of Achievement” award, a government agency must xi

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xii

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xiii

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Ci
ty of Pittsburg
Annual Comprehensive Financial
Report Fiscal Year Ended June 30, 2025
City Council
Jelani Killings, Mayor
Dionne Adams, Vice Mayor
Angelica Lopez, Council Member
Juan Antonio Banales, Council Member
Arlene Kobata, Council Member
Other Elected Officials
Alice E. Evenson, City Clerk
Nancy Parent, City Treasurer
City Manager
Garrett Evans, City Manager
City Attorney
Donna Mooney, City Attorney
Management Staff
Maria Aliotti, Assistant City Manager/Interim Finance Director Steve Albanese, Chief of Police
Melaine Venenciano, Director of Records/Council Services Jennifer Brizel, Director of Human Resources
John Samuelson, Director of Public Works/City Engineer
Jordan Davis, Director of Community and Economic Development Kolette Simonton, Director of Recreation
xiv

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Pittsburg
xv

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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Pittsburg
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
xvi

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INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Pittsburg
Pittsburg, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Pittsburg (City), California, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

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

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

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

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

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

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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 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.

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

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Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedules for the General Fund and major special revenue funds, and the required pension and OPEB schedules on pages 5–16 and 128-143 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Capital Improvement Fund budgetary comparison schedule, combining and individual nonmajor fund financial statements and the combining budgetary comparison schedules, the combining financial statements of internal service funds and the custodial funds are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The Capital Improvement Fund budgetary comparison schedule, combining and individual nonmajor fund financial statements and the budgetary comparison schedules, the combining financial statements of internal service funds and the custodial funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Capital Improvement Fund budgetary comparison schedule, combining and individual nonmajor fund financial statements and the combining budgetary comparison schedules, the combining financial statements of internal service funds and the custodial funds are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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

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Other Information

Management is responsible for the other information included in the annual report. The other information comprises the introductory section and the statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the 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 financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the 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 February 17, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Emeryville, California
February 17, 2026
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City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2025

MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Pittsburg, we offer readers this discussion and analysis of the City’s financial performance for the year ending June 30, 2025 (FY 2024-25). The accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures in this report, are the responsibility of the City. The report has been prepared in accordance with Generally Accepted Accounting Principles (GAAP) as promulgated by the Governmental Accounting Standard Board (GASB). We encourage readers to consider the information presented here in conjunction with additional information, which can be found in the introductory section of this report and within the City’s financial statements, which follow this discussion.

FINANCIAL HIGHLIGHTS
 At the close of fiscal year (FY) 2024–25, total assets and deferred outflows of resources exceeded liabilities and deferred inflows by $468.5 million (M), representing the City’s net position.
 The City’s net position increased by $23.7M compared to FY 2023–24, reflecting growth across both governmental and business-type activities as discussed in the following paragraphs.
 Governmental activities accounted for approximately $17.1M of the City’s overall increase in net position for FY 2024–25. The improvement was driven primarily by intergovernmental revenues and capital grants, including about $11.80M in American Rescue Plan Act (ARPA) revenue recognition compared to $2.89M in FY 2023–24; $3.03M of transportation grants compared to $0.11M in prior year; and $0.72M in Community Development Block Grant versus $0.47M in prior year. These inflows supported major capital projects such as Pavement Management ($4.5M), Zone 4 Pavement Management ($3.2M), Park Dedication projects ($4.36M), and San Marco CFD infrastructure ($3.55M); even with higher personnel and operating costs, produced a net gain for governmental activities.  As of June 30, 2025, the General Fund, which includes the Budget Stabilization and Economic Development funds, reported a total fund balance of $30.2M, up from $27.9M in FY 2023–24, an increase of approximately $2.3M. This change was primarily due to higher revenues from intergovernmental grants and service charges, partially offset by increased personnel costs, operating expenditures, and capital outlay. Of the FY 2025 ending balance, $5.6M is classified as nonspendable, representing items not in spendable form such as deposits, interfund advances, and inventory; $3.0M is committed to budget stabilization; and $19.1M remains unassigned as an operating reserve to safeguard against emergencies. In addition, $2.4M resides in the Budget Stabilization fund, available to provide support for future budgets under the Fiscal Sustainability Ordinance.
 As of June 30, 2025, the City’s net position from business-type activities (enterprise funds) was $190.1M, up from $183.5M in FY 2023–24, an increase of approximately $6.4M (or

3.5%). This growth reflects significant infrastructure investments and capital contributions across the City’s utilities.
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City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2025
The Water Utility accounted for the largest share of additions, with over $31M in construction outlays for major water system improvements, including pipeline replacements, treatment plant upgrades, and reservoir enhancements. Several projects reached completion during the year, resulting in $12.1M in assets placed in service.

The Sewer Utility advanced critical collection system upgrades, adding $0.5M in new assets and continuing work on trunk line improvements.

Island Energy (Pittsburg Power Company (PPC)) invested in reliability and modernization projects, with $2M in construction activity and new equipment installations to support energy infrastructure. These capital investments were partially offset by normal depreciation and higher operating costs, but overall, they strengthened PPC’s long-term service capacity and utility infrastructure.

OVERVIEW OF THE FINANCIAL STATEMENTS
The Management’s Discussion and Analysis is intended to serve as an introduction to the City’s basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report contains other supplementary information in addition to the basic financial statements.

Government-Wide Financial Statements - The Government-Wide Financial Statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. These statements consist of:
 The Statement of Net Position presents information on all the City’s assets and deferred outflow of resources and 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 a useful indicator on whether the financial position of the City is improving or deteriorating.
 The Statement of Activities presents information reflecting any change in the government's net position during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs (regardless of the timing of related cash flows). Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused vacation and compensated leave of absence).

Both of the 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 significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include legislative and legal, general government, public safety, public works, community development and recreation. The business-type activities of the City include Water, Sewer, Marina, Pittsburg Power Company (includes Island Energy operation), and Waterfront Operations.

The Government-Wide Financial Statements include not only the City but the Housing Authority and Housing Successor Agency. Financial information for these component units are blended with the financial statements of the primary government itself. 6

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City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2025
Fund Financial Statements – A “fund” is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds can be divided into three categories: governmental funds, proprietary funds, and City's fiduciary funds.

Governmental Funds : These funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. Unlike the Government-Wide Financial Statements, governmental fund financial statements focus on near- term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. However, this information does not encompass the additional long-term focus of the government-wide statements.

Reconciliations that explain the relationship (or differences) between governmental funds and governmental activities follow each of the governmental funds statements.

The City maintains 49 individual governmental funds. 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 five funds that are considered to be major funds.

These funds consist of the General Fund, Housing Authority (Section 8), the Housing Successor Agency Fund, Miscellaneous Grant Fund and Capital Improvement Fund. Data from the other 44 governmental funds, which are combined into a single, aggregated presentation under Other Governmental Funds, are considered as non-major funds.

A budgetary comparison statement has been provided for the funds that have an adopted budget to demonstrate compliance with this budget.

Proprietary Funds: The City maintains two different types of proprietary funds; Enterprise Funds and Internal Service Funds. Enterprise Funds are used to report the same functions presented as Business-Type Activities in the Government-Wide Financial Statements. The Enterprise Funds are used to account for Water, Sewer, Marina, Pittsburg Power Company (including Island Energy), and Waterfront Operations.
 Enterprise Funds provide the same type of information as the Government-Wide Financial Statements, only in more detail. The Proprietary Fund Financial Statements provide separate information for the Water Fund, the Sewer Fund, the Marina Fund, Pittsburg Power Company (including Island Energy), and Waterfront Operations, all of which are considered to be major funds. Conversely, Internal Service Funds are combined into a single, aggregated presentation in the Proprietary Fund Financial Statements.  Internal Service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses Internal Service Funds to account for maintaining its fleet of vehicles, building maintenance, information and communication systems, risk management/insurance, and employee fringe benefits activities. Because these services predominantly benefit governmental rather than business-type functions, they have been included within Governmental Activities in the government-wide financial statements.
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City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2025
Fiduciary Funds: Fiduciary Funds are used to account for resources held for the benefit of parties outside the government. Fiduciary Funds are not reflected in the Government-Wide Financial Statement because the resources of these funds are not available to support the City’s own programs. The accounting used for Fiduciary Funds is much like that which is used for Proprietary Funds. The Assessment District Bonds Fund, the Vista Del Mar & San Marco CFDs Fund, and the Other Impact Fees Fund are held as Fiduciary Funds by the City. With the dissolution of the Redevelopment Agency per AB 26, as amended by AB 1484, also known as the “Dissolution Law”, the activities of the Successor Agency to the Former Redevelopment Agency of the City of Pittsburg are reported as Private-Purpose Trust Fund in the Fiduciary Fund section.

Notes To the Financial Statements – The notes provide additional information that is essential to a full understanding of the data provided in the Government-Wide and Fund Financial Statements. They include the City’s accounting policies, significant estimates, and disclosures required by generally accepted accounting principles.

New GASB Pronouncements Implemented in FY 2024–25:
 GASB Statement No. 101 – Compensated Absences: Updated recognition and measurement guidance under a unified model and amended certain disclosures. The City implemented this standard during the current fiscal year, resulting in restatements to beginning net position for governmental and business-type activities.  GASB Statement No. 102 – Certain Risk Disclosures: Requires disclosure of vulnerabilities due to concentrations or constraints. The City implemented this standard; however, it resulted in no additional disclosures for FY 2025.

For a detailed description of all accounting policies and pronouncements applicable to the City, refer to Note 1.S – Summary of Significant Accounting Policies in the Notes to Basic Financial Statements.

Other Information – In addition to the basic financial statements and accompanying notes, this report includes Required Supplementary Information (RSI) as prescribed by GASB. The RSI provides important context on the City’s long-term obligations, including schedules that present the City’s progress in funding its pension and other post-employment benefit (OPEB) liabilities.

These schedules include historical trends on net pension and OPEB liabilities, related ratios, and contributions for both the CalPERS Miscellaneous and Safety Plans, as well as the City’s retiree healthcare plan. This information is essential for understanding the City’s financial position and its efforts to meet future benefit commitments.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position – As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, combined net position (government and business-type activities) totaled $468.5M at the close of the Fiscal Year ending June 30, 2025, which is $24.1M more than the Fiscal Year ending June 30, 2024, of $444.4M after restatements. 8

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City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2025
The Government-Wide Financial Statements provide long-term and short-term information about the City’s overall financial condition. This analysis addresses the financial statements of the City as a whole. The following table reflects the Summary of Net Position for the Fiscal Year ended June 30, 2025 with the comparative data for the Fiscal Year ended June 30, 2024.

City of Pittsburg
Summary of Net Position
As of June 30, 2025
Current assets are assets that are liquid in nature or can be converted into cash quickly. Current liabilities are outstanding liabilities that are due within one year.

The Statement of Net Position contains more detailed information on current assets, capital assets, deferred outflows of resources, current liabilities, non-current liabilities and deferred inflows of resources. At the end of the FY 2024-25 the total assets and deferred outflows of resources exceeded total liabilities and deferred inflows of resources by $468.5M.

Statement of Activities – For fiscal year 2024–25, the City’s governmental activities reported total expenses of $121.8M and program revenues of $87.1M, resulting in a net expense of $34.7M. Governmental expenses reflect the cost of providing a wide range of services, with the largest categories being Community Development and Services ($48.2M), Public Safety ($40.3M), and Public Works ($19.9M). The City’s business-type activities reported total expenses of $45.6M and program revenues of $48.8M, resulting in a net income of $3.2M. The largest increases came from Sewer Utility and Pittsburg Power where charges for services exceeded operating expenses. Additional analysis of governmental and business-type activities is presented in the following sections.
2024 2025 2024 2025 2024 2025
Current Assets 155,928,182$ 112,384,283$ $122,230,733 $117,009,404 $278,158,915 $229,393,687 Leases 313,295 170,102 20,955,727 20,589,518 21,269,022 20,759,620 Loans/Notes Receivables - 37,302,464 - 1,040,643 - 38,343,107 Capital Assets 239,146,229 254,641,883 160,940,589 171,403,759 400,086,818 426,045,642 Total Assets 395,387,706 404,498,732 304,127,049 310,043,324 699,514,755 714,542,056 Deferred Outflow of
Resources 32,781,703 23,876,415 5,014,667 4,361,187 37,796,370 28,237,602 Current Liabilities 21,070,312 24,074,994 10,496,029 12,410,304 31,566,341 36,485,298 Non-Current Liabilities 119,040,692 123,635,199 93,535,795 92,440,494 212,576,487 216,075,693 Total Liabilities 140,111,004 147,710,193 104,031,824 104,850,798 244,142,828 252,560,991 Deferred Inflows of
Resources 4,445,213 2,264,267 20,916,324 19,445,367 25,361,537 21,709,634 Net Investment in Capital
Assets 214,480,492 254,201,604 135,205,947 136,963,903 349,686,439 391,165,507 Restricted 71,872,807 72,126,097 88,738,207 50,964,256 160,611,014 123,090,353 Unrestricted (25,052,170) (47,927,014) (40,402,416) 2,180,187 (65,454,586) (45,746,827) Total Net Position, as
Restated 261,301,129$ 278,400,687$ 183,541,738$ 190,108,346$ 444,842,867$ 468,509,033$ Governmental Activities Business-Type Activities Total
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City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2025
Governmental and Business-Type Activities – Governmental Activities reflect an increase of $17.8M in net position, and Business-Type Activities reflect an increase of $6.4M in net position for the FY 2024-25. A comparison of the cost of services by function for the City’s Governmental Activities is shown below, along with the revenues used to cover the net expenses of the Governmental Activities, as well as comparative data from FY 2023-24.

Statement of Activities
Fiscal Year Ended June 30, 2025
With comparative data for fiscal year ended June 30, 2024 2024 2025 2024 2025 2024 2025
Revenue:

Program Revenues:

Charges for Services 35,069,452$ 40,252,277$ $ 48,399,770 $ 48,590,376 $ 83,469,222 $ 88,842,653 Operating Grants and Contributions 31,552,107 40,721,277 204,046 166,899 31,756,153 40,888,176 Capital Grants and Contributions 3,369,615 6,142,040 - 3,369,615 6,142,040 Sub-Total 69,991,174 87,115,594 48,603,816 48,757,275 118,594,990 135,872,869 General Revenues:

Property Taxes 5,258,965 5,237,723 - - 5,258,965 5,237,723 Sales Tax 21,347,108 19,001,806 - - 21,347,108 19,001,806 Franchise Fees 6,466,363 6,434,796 - - 6,466,363 6,434,796 Motor Vehicle in Lieu Fees 6,988,438 7,270,038 - - 6,988,438 7,270,038 Gas Taxes 4,012,931 4,008,333 - - 4,012,931 4,008,333 Other Taxes 624,433 - - - 624,433
Business License Tax 525,985 599,225 525,985 599,225 Transient Occupancy 478,960 561,089 478,960 561,089 Investment Earnings-Unrestricted 6,055,779 6,450,726 5,383,235 5,473,813 11,439,014 11,924,539 Gain on disposal of assets - 18,929 18,929 -
Sub-Total 51,134,529 50,188,169 5,402,164 5,473,813 56,536,693 55,661,982 Total Revenues 121,125,703 137,303,763 54,005,980 54,231,088 175,131,683 191,534,851 Expenses:

General Government 7,503,940 5,558,634 - - 7,503,940 5,558,634 City Council 149,837 149,299 - - 149,837 149,299
City Manager & Clerk 601,422 735,042 - - 601,422 735,042 City Attorney 406,477 388,317 - - 406,477 388,317 Human Resources 1,494,127 1,348,058 - - 1,494,127 1,348,058 Finance and Services 2,201,883 2,389,207 - - 2,201,883 2,389,207 Community Development & Services 42,770,732 48,164,084 - - 42,770,732 48,164,084 Public Safety 38,623,313 40,319,816 - - 38,623,313 40,319,816 Public Works 19,895,229 19,914,176 - - 19,895,229 19,914,176 Interest on Long-Term Debt 3,400,488 2,867,858 - - 3,400,488 2,867,858 Water Utility - - 27,213,486 29,448,455 27,213,486 29,448,455 Sewer Utility - - 3,698,845 3,884,490 3,698,845 3,884,490 Marina - - 3,377,714 2,651,869 3,377,714 2,651,869 Pittsburg Power - - 10,246,083 8,857,752 10,246,083 8,857,752 Waterfront Opertions - - 716,491 724,450 716,491 724,450 Total Expenses 117,047,448 121,834,491 45,252,619 45,567,016 162,300,067 167,401,507 Increase(Decrease) in Net Position
before Transfers 4,078,255 15,469,272 8,753,361 8,664,072 12,831,616 24,133,344 Transfers 943,304 2,298,670 (943,304) (2,298,670) - - Change in Net Position 5,021,559 17,767,942 7,810,057 6,365,402 12,831,616 24,133,344 Net Position-Beginning of Year, as
Restated 256,279,570 260,632,745 175,731,681 183,742,944 432,011,251 444,375,689 Net Position - End of Year 261,301,129$ 278,400,687$ 183,541,738$ 190,108,346$ 444,842,867$ 468,509,033$ Governmental Activities Business-Type Activities Total
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City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2025
Total Program Revenues from Governmental Activities were $87.1M in FY 2024-25. Program revenues are derived directly from the program or from parties outside the reporting government’s taxpayers or citizenry. Program Revenues reduce the net cost of the program to be financed from the government’s general revenues. As reflected in the pie chart below, 46.2% of the Governmental Program Revenues came from Charges for Services (which includes licenses and permits, plan checking fees, developer fees, special assessments and several other revenues),

46.7% from the Operating Grants and Contributions category (including restricted revenues such as Gas Tax, Measure J Tax, Asset Seizure fund and Federal/State Grants), and 7.1% from Capital Grants and Contributions.

Charges for Services – Total charges for services increased by approximately $5.2M in FY 2024– 25 compared to the prior year. This increase was driven primarily by Community Development and Services, which totaled $5.2M, due to significant growth in building permits at $3.5M and plan-check fees at $1.8M, reflecting strong development activity. These trends highlight the City’s continued development activity and stable service demand across most operational areas.

The Operating Grants and Contributions increased by approximately $9.2M compared to the prior year. This increase was primarily due to higher federal and state funding for housing programs, public works maintenance, and the recognition of ARPA related revenues.

Capital Grants and Contributions increased by approximately $2.8M, driven by Gas Tax Road Maintenance and Rehabilitation Account (RMRA) allocation, environmental grants, and developer contributions supporting infrastructure and capital projects.

Government Revenues by Program Type
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City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2025
About 40.7% of Governmental Activities expenses in FY 2024-25 were funded by General Revenues. General Revenues are all other revenues not categorized as program revenues such as property taxes, sales taxes, intergovernmental and investment earnings. Interest on long-term debt is paid through general revenues.

Business-Type Activities – Net position for Business-Type Activities was $190.1M, a net increase of $6.6M over the prior fiscal year. Total program revenues for Business-Type Activities were $48.8M. Total expenses for Business-Type Activities were $45.6M for the FY 2024-25. 12

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City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2025
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

The focus of the City’s Governmental Funds is to provide information on near-term inflows, outflows, and balances of spending resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

The Housing Authority’s Housing Choice Vouchers (Section 8) Special Revenue Fund reported a net increase in fund balance of approximately $0.4M in FY2025. This improvement reflects the total revenues of $26.4M modestly exceeded total expenditures of $26.0M, producing a surplus of about $0.4M, which after $24,907 in transfers out resulted in the $0.34M increase. While Housing Assistance Payments (HAP) grew with program activity, the fund balance increase stemmed from HUD intergovernmental revenues and administrative/service fee receipts recognized before year-end, which together outpaced HAP and other operating costs.

The City’s Proprietary Funds provide the same type of information found in the Government-Wide Financial Statements but with more detail. According to standardized Governmental reporting, the Water Fund, Sewer Fund, Waterfront Operations and Pittsburg Power Company are major funds.

The Marina Fund is not considered to be major fund; however, the City has elected to continue to report the Marina Fund as major fund.

At the end of FY2025, the City’s Enterprise Funds activities reported a total net position of $190.1M, an increase of $6.6M from the prior fiscal year after restatements. This overall growth reflects mixed results across individual enterprise operations:
 Water Utility increased by net $4.3M caused by higher charges for services as a result of residential development in the City and lower than expected overall operating costs.  Sewer Utility increased by $0.3M driven by favorable operating results in Sewer Maintenance.
 Marina incurred deficit of $0.9M as operating and maintenance costs exceeded operating revenues.
 Pittsburg Power Company net position increased by $1.9M despite a decrease in charges for services caused by a loss of a large energy customer. This also brought operating cost down in department supplies, maintenance and operations.  Waterfront Operations revenues exceeded expenses by $0.7M, primarily due to reductions in capital projects funding and other operating expenses, which offset modest declines in rental income and the absence of intergovernmental revenues.

General Fund Budgetary Highlights – The final amended expenditure and transfers out budget totaled $69.8M, including $13.6M for prior fiscal year budget carryovers and new appropriation amendments to the originally adopted budget. Carryovers primarily addressed timing delays on multi-year projects and capital purchases. For example, $767,772 of Police Fleet Replacement was carried over due to extended procurement lead times and vendor availability for specialized law enforcement vehicles.
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City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2025
The most significant adjustments in the FY 2024-25 budget reflect strategic changes to personnel funding and infrastructure priorities. Non-Departmental increased by $2.33 million, primarily due to the removal of the vacancy savings, ensuring full funding for authorized positions and reducing the risk of payroll shortfalls.

Among departmental amendments, the largest reductions include a $1.85M decrease in Police Operations, driven by the introduction of department-level vacancy savings in the final budget, partially offset by higher overtime costs, and a $1.09M decrease in Engineering, resulting from vacancy savings and reductions in contractual services. In contrast, Public Works Streets rose by $1.01M, largely due to funding of the Capital Improvement Program for street preservation projects (slurry seal and patch paving), offset by smaller reductions elsewhere. Additionally, transfers out increased by $708,023 to fund capital projects, further supporting infrastructure investments.

At the close of the FY 2024-25, General Fund revenues exceeded the revised budget by $3.6M.

This increase is primarily attributable to the Use of Money and Property actual revenue of $3.2M being $2.5M higher than the final budgeted amount of $0.8M. This was mainly a result of greater investment income earnings caused by higher interest rates than originally expected. Charges for services exceeded final budget by $2.8M. Most of the increase was in Public Work Engineering fees charged for a few large development projects. The City experienced a decline in tax and permit fee revenue compared to final budgetary expectations.

General Fund actual expenditures were $63,640 lower than the original budget, but $0.8M higher than the final budget mostly due to public safety costs (overtime and fleet charges), operational expenditures (credit card fees, utilities), and unanticipated development-related services.

Capital Asset and Debt Administration – The City’s investment in capital assets for its Governmental and Business-Type Activities as of June 30, 2025, was $426.0M (net of accumulated depreciation). This investment in capital assets includes land, buildings, improvements, machinery and equipment, vehicles, park facilities, roads, highways, bridges, water lines, and sewer and storm systems. The total increase in the City’s investment in capital assets net of depreciation was $26.1M as compared to prior year. 14

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City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2025
City of Pittsburg
Capital Assets
(Net of Depreciation)
June 30, 2025
Please see more detailed information regarding the City's capital assets in Note 7 – Capital Assets of the Basic Financial Statements.

Debt Service Administration – At the end of the fiscal year, the City had total Governmental Activities long-term debt outstanding of $28.8M and Business-Type Activities Long-Term Debt balance of $73.3M. Governmental Activities long-term debt increased by $1.0M due to accreted interest on Pension Obligation Bonds and reduction of $3.1M was all related to regularly scheduled debt service payments.

Long-term debt for Business-Type Activities decreased by $2.0M all related to regularly scheduled debt service payments.
2024
(restated) 2025
2024
(restated) 2025
2024
(restated) 2025
Non-depreciable assets:

Land 36,385,225$ 36,385,225$ $ 2,721,245 $ 2,721,245 $ 39,106,470 $ 39,106,470 Construction in Progress 28,030,236 38,145,953 24,735,298 25,494,349 52,765,534 63,640,302 Total 64,415,461 74,531,178 27,456,543 28,215,594 91,872,004 102,746,772 Depreciable assets (net
of depreciation):

Buildings and
improvements 60,032,279 62,181,408 34,436,546 33,258,063 94,468,825 95,439,471 Machinery and
Equipment 2,215,907 1,759,628 5,037,952 5,170,296 7,253,859 6,929,924 Infrastructure 110,037,232 113,190,243 92,786,212 102,273,064 202,823,444 215,463,307 Vehicles 1,508,309 2,710,738 1,577,108 2,486,742 3,085,417 5,197,480 Intangible Right-to-Use
Buildings 339,751 192,081 - - 339,751 192,081 Intangible Right-to-Use
Subscription 131,544 76,607 - - 131,544 76,607 Total 174,265,022 180,110,705 133,837,818 143,188,165 308,102,840 323,298,870 Total 238,680,483$ 254,641,883$ 161,294,361$ 171,403,759$ 399,974,844$ 426,045,642$ Governmental Activities Business-Type Activities Total
15

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City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2025
City of Pittsburg
Long-Term Debt
June 30, 2025
Please see more detailed information regarding the City's outstanding debt in Note 8 (Long-Term Debt) of the Basic Financial Statements.

Looking Forward
The City is proud of the results of the current year’s activities. The Department Heads and their staff take a great deal of pride providing top quality services to the residents and business community, while being fiscally conservative. This approach requires City staff to consistently monitor all expenses while exploring and utilizing every alternative revenue source.

Requests for Information – This financial report is designed to provide a general overview of the finances for the City of Pittsburg. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Pittsburg, Finance Department, 65 Civic Avenue, Pittsburg, California 94565. 2024 2025 2024 2025 2024 2025
Pension Obligation Bonds 30,078,657$ 28,370,164$ - $ - $ $ 30,078,657 $ 28,370,164 PG&E Efficient Loan 81,769 60,440 - - 81,769 60,440 Lease - Vehicles/Equipment 91,970 - - - 91,970 - Lease - Gateway - Domus 371,792 262,111 - - 371,792 262,111 Lease - Pacific Art Center 113,411 71,796 - - 113,411 71,796 SBITA Yardi 90,843 45,932 - - 90,843 45,932 2016 Water Revenue Refunding
Bonds - - 20,060,000 18,440,000 20,060,000 18,440,000 2022 Water Revenue Refunding
Bonds - - 43,870,000 43,870,000 43,870,000 43,870,000 Unamortized premium on 2022A
Bonds - - 2,234,714 2,154,904 2,234,714 2,154,904 2014 I-Bank Loan - - 9,103,050 8,802,643 9,103,050 8,802,643 Total 30,828,442$ 28,810,443$ 75,267,764$ 73,267,547$ 106,096,206$ 102,077,990$ Governmental Activities Business-Type Activities Total
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BASIC

FINANCIAL STATEMENTS
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GOVERNMENT-WIDE

FINANCIAL STATEMENTS
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City of Pittsburg
Statement of Net Position
June 30, 2025
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 86,479,852$ 70,786,763$ 157,266,615$ Restricted cash and investments 9,475,988 38,827,690 48,303,678 Receivables:

Accounts 14,209,456 6,792,479 21,001,935
Interest 1,070,876 - 1,070,876
Leases 170,102 483,857 653,959
Internal balances (382,580) 382,580 -
Inventory 758,824 213,626 972,450
Prepaid items and other assets 771,867 6,266 778,133
Total current assets 112,554,385 117,493,261 230,047,646 Noncurrent assets:

Loans/notes receivables 37,302,464 1,040,643 38,343,107 Leases - 20,105,661 20,105,661
Capital assets:

Land and nondepreciable assets 74,531,178 28,215,594 102,746,772 Depreciable capital assets, net of accumulated depreciation 180,110,705 143,188,165 323,298,870 Total capital assets 254,641,883 171,403,759 426,045,642 Total noncurrent assets 291,944,347 192,550,063 484,494,410 Total assets 404,498,732 310,043,324 714,542,056

DEFERRED OUTFLOWS OF RESOURCES
Pension related 21,504,926 3,612,296 25,117,222
OPEB related 2,371,489 748,891 3,120,380
Total deferred outflows of resources 23,876,415 4,361,187 28,237,602

LIABILITIES
Current liabilities:

Accounts payable 10,239,701 4,048,404 14,288,105
Salaries payable 1,869,600 - 1,869,600
Interest payable 595,862 1,320,536 1,916,398
Refundable deposits 1,533,723 1,918,497 3,452,220
Taxes payable 17,419 265,873 283,292
Unearned revenue 4,176,006 2,358,289 6,534,295
Claims payable - due within one year 109,700 - 109,700 Compensated absences - due within one year 2,452,355 507,754 2,960,109 Long-term debt - due within one year 3,080,628 1,990,951 5,071,579 Total current liabilities 24,074,994 12,410,304 36,485,298 Noncurrent liabilities:

Compensated absences 1,685,110 572,572 2,257,682
Claims payable 50,418 - 50,418
Net pension liability 70,246,296 12,404,940 82,651,236 Net OPEB liability 25,923,560 8,186,387 34,109,947
Long-term debt 25,729,815 71,276,595 97,006,410
Total noncurrent liabilities 123,635,199 92,440,494 216,075,693 Total liabilities 147,710,193 104,850,798 252,560,991

DEFERRED INFLOWS OF RESOURCES
Lease related 131,609 19,216,469 19,348,078
Pension related 1,588,131 56,941 1,645,072
OPEB related 544,527 171,957 716,484
Total deferred inflows of resources 2,264,267 19,445,367 21,709,634

NET POSITION
Net investment in capital assets 254,201,604 136,963,903 391,165,507 Restricted for:

Capital projects 31,635,900 38,827,315 70,463,215
Housing 37,685,739 - 37,685,739
Debt service 2,804,458 - 2,804,458
Facility fee reserve - 12,136,941 12,136,941
Total restricted net position 72,126,097 50,964,256 123,090,353 Unrestricted (47,927,014) 2,180,187 (45,746,827)
Total net position 278,400,687$ 190,108,346$ 468,509,033$ Primary Government
See accompanying Notes to Basic Financial Statements.
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City of Pittsburg
Statement of Activities
For the year ended June 30, 2025
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental Activities:

General government 5,558,634$ 12,926,585$ 27,715$ 1,411,414$ City Council 149,299 - - -
City Manager and City Clerk 735,042 46 - -
City Attorney 388,317 - - -
Human resources 1,348,058 190,390 - -
Finance and services 2,389,207 170,059 - -
Community development and services 48,164,084 21,640,208 26,412,734 2,494,230 Public safety 40,319,816 1,591,015 526,140 -
Public works 19,914,176 3,733,974 13,754,688 2,236,396 Interest on long-term debt 2,867,858 - - -
Total governmental activities 121,834,491 40,252,277 40,721,277 6,142,040 Business-Type Activities:

Water Utility 29,448,455 29,846,937 - -
Sewer Utility 3,884,490 5,190,010 - -
Marina 2,651,869 2,004,003 22,579 -
Pittsburg Power Company 8,924,325 10,776,359 144,320 - Waterfront Operations 724,450 773,067 - -
Total business-type activities 45,633,589 48,590,376 166,899 - Total primary government 167,468,080$ 88,842,653$ 40,888,176$ 6,142,040$ General Revenues:

Taxes:

Property taxes
Sales taxes
Franchise taxes
Gas taxes
Business license taxes
Transient occupancy taxes
Total taxes
Motor Vehicle in-lieu (unrestricted)
Investment earnings-unrestricted
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net Position - Beginning of Year, as
previously presented
Restatements
Net Position - Beginning of Year, as restated
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements.
22

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Governmental Business-Type
Total Activities Activities Total
14,365,714$ 8,807,080$ -$ 8,807,080$ - (149,299) - (149,299) 46 (734,996) - (734,996) - (388,317) - (388,317) 190,390 (1,157,668) - (1,157,668) 170,059 (2,219,148) - (2,219,148) 50,547,172 2,383,088 - 2,383,088 2,117,155 (38,202,661) - (38,202,661) 19,725,058 (189,118) - (189,118) - (2,867,858) - (2,867,858) 87,115,594 (34,718,897) - (34,718,897) 29,846,937 - 398,482 398,482 5,190,010 - 1,305,520 1,305,520 2,026,582 - (625,287) (625,287) 10,920,679 - 1,996,354 1,996,354 773,067 - 48,617 48,617 48,757,275 - 3,123,686 3,123,686 135,872,869$ (34,718,897) 3,123,686 (31,595,211) 5,237,723 - 5,237,723 19,001,806 - 19,001,806 6,434,796 - 6,434,796 4,008,333 - 4,008,333 599,225 - 599,225
561,089 - 561,089
35,842,972 - 35,842,972 7,270,038 - 7,270,038 6,450,726 5,540,386 11,991,112
624,433 - 624,433
2,298,670 (2,298,670) -
52,486,839 3,241,716 55,728,555
17,767,942 6,365,402 24,133,344
261,301,129 183,541,738 444,842,867
(668,384) 201,206 (467,178)
260,632,745 183,742,944 444,375,689
278,400,687$ 190,108,346$ 468,509,033$
and Changes in Net Position
Net (Expense) Revenue
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FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
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City of Pittsburg
Balance Sheet
Governmental Funds
June 30, 2025
ASSETS
Cash and investments 24,317,661$ 707,967$ 6,342,906$ 6,272,770$ Restricted cash and investments - 379,795 510,929 - Receivables:

Accounts 5,563,352 330,017 90,343 281,096 Interest 1,070,876 - - - Loans and notes 5,519,127 - 27,846,774 - Leases - - - - Due from other funds 1,507,001 - - - Inventory 61,506 1,374 - 57,166 Prepaid items and other assets 4,655 - - - Advances to other funds - - 1,073,972 - Total assets 38,044,178$ 1,419,153$ 35,864,924$ 6,611,032$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 962,256$ 181,042$ 108,340$ 201,143$ Salaries payable 1,869,600 - - - Taxes payable 14,868 1,201 - - Refundable deposits 502,602 10,175 - - Loans payable - 1,090 - - Unearned revenue 1,002,261 117,809 - 2,917,381 Due to other funds - - - - Advances from other funds 3,191,560 - 380,000 - Total liabilities 7,543,147 311,317 488,340 3,118,524

Deferred Inflows of Resources
Unavailable revenue 288,522 - 3,494,169 - Leases - - - - Total deferred inflows of resources 288,522 - 3,494,169 -

Fund Balances:

Nonspendable 5,585,288 1,374 - 57,166 Restricted - 1,106,462 31,882,415 3,435,342 Committed 3,043,967 - - - Assigned - - - - Unassigned 21,583,254 - - - Total fund balances 30,212,509 1,107,836 31,882,415 3,492,508 Total liabilities, deferred inflows of
resources and fund balances 38,044,178$ 1,419,153$ 35,864,924$ 6,611,032$ Special Revenue
General Fund
Housing
Authority
Housing
Successor
Agency
Miscellaneous
Grants
See accompanying Notes to Basic Financial Statements.
28

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Capital Project
Fund
14,271,811$ 25,217,073$ 77,130,188$
- 3,761,073 4,651,797 1,884,034 6,028,346 14,177,188
- - 1,070,876 - 3,936,563 37,302,464 - 170,102 170,102
- - 1,507,001 - 211,599 331,645
- 727,403 732,058
- 5,799,379 6,873,351 16,155,845$ 45,851,538$ 143,946,670$
3,588,666$ 4,390,400$ 9,431,847$
- - 1,869,600 - 260 16,329 - 1,020,946 1,533,723 - - 1,090 - 138,555 4,176,006 103,068 1,383,534 1,486,602
- 3,676,791 7,248,351 3,691,734 10,610,486 25,763,548
- 571,221 4,353,912 - 131,609 131,609
- 702,830 4,485,521 - 939,002 6,582,830 - 35,701,878 72,126,097 12,464,111 2,073,747 17,581,825
- 63,791 63,791
- (4,240,196) 17,343,058 12,464,111 34,538,222 113,697,601
16,155,845$ 45,851,538$ 143,946,670$
Nonmajor
Governmental
Funds
Total
Governmental
Funds
Capital
Improvement
29

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City of Pittsburg
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
Total Fund Balances - Total Governmental Funds 113,697,601$ Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. Except for the internal service funds reported below, the capital assets were adjusted as follows:

Government-
Wide Statement
of Net Position
Internal
Service
Funds Total
Nondepreciable 74,531,178$ -$ 74,531,178 Depreciable, net 180,110,705 (2,478,398) 177,632,307 Total capital assets 254,641,883$ (2,478,398)$ 252,163,485 Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the Internal service funds were included in governmental activities in the Government-Wide Statement of Net Position. 15,919,855 Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 4,353,912 In the Government-Wide Financial Statements, deferred employer contributions for pension and OPEB, certain differences between actuarial estimates and actual results, and other adjustments resulting from changes in assumptions and benefits are deferred in the current year.

Government-
Wide Statement
of Net Position
Internal
Service
Funds
Deferred outflows of resources related to pension 21,504,926$ -$ 21,504,926 Deferred outflows of resources related to OPEB 2,371,489 - 2,371,489 Deferred inflows of resources related to pension (1,588,131) - (1,588,131) Deferred inflows of resources related to OPEB (544,527) - (544,527) Long-term liabilities were not due and payable in the current period.

Therefore, they were not reported in the Governmental Funds Balance Sheet.

Government-
Wide Statement
of Net Position
Internal
Service
Funds Total
Compensated absences - due within one year (2,452,355) 103,405 (2,348,950) Claims payable - due within one year (109,700) 109,700 - Interest payable (595,862) - (595,862) Long-term debt - due within one year (3,080,628) 21,329 (3,059,299) Compensated absences (1,685,110) 71,859 (1,613,251) Claims payable (50,418) 50,418 - Long-term debt (25,729,815) 39,110 (25,690,705) Net pension liability (70,246,296) - (70,246,296) Net OPEB liability (25,923,560) - (25,923,560) Total long-term liabilities (129,873,744)$ 395,821$ (129,477,923) Net Position of Governmental Activities 278,400,687$
Amounts reported for governmental activities in the statement of net position are different because:

See accompanying Notes to Basic Financial Statements
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City of Pittsburg
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2025
REVENUES:

Property tax 5,057,615$ -$ -$ -$
Sales tax 19,001,806 - - -
Franchise tax 6,329,479 - - -
Other taxes 1,442,917 - - -
Intergovernmental revenues 14,131,723 24,572,983 149,510 12,430,842 Permits, licenses, and fees 1,096,744 - - -
Fines and forfeitures 328,769 - - -
Special assessments - - - -
Service fees 8,043,247 1,666,717 7,500 -
Use of money and property 3,206,526 62 225,988 22,985 Other revenues 2,036,520 157,406 895,086 -
Total revenues 60,675,346 26,397,168 1,278,084 12,453,827 EXPENDITURES:

Current:

General government 4,564,785 - - 1,116
City Council 149,299 - - -
City Manager and City Clerk 685,760 - - -
City Attorney 403,824 - - -
Human resources 1,297,264 - - -
Finance and services 1,790,528 - - -
Community development and services 11,539,023 25,974,095 503,596 3,941,308 Public safety 36,950,345 - - 310,707
Public works - administration 202,525 - - -
Public works - streets 2,998,611 - - -
Public works - parks 286,772 - - -
Capital outlay and improvements - - - -
Debt service:

Principal retirement - 52,571 109,681 -
Interest and fiscal charges 11,895 2,457 11,909 - Total expenditures 60,880,631 26,029,123 625,186 4,253,131

REVENUES OVER (UNDER)
EXPENDITURES (205,285) 368,045 652,898 8,200,696 OTHER FINANCING SOURCES (USES):

Transfers in 7,447,397 - - 110,417
Transfers out (4,894,486) (24,907) (749) (53,079)
Total other financing sources (uses) 2,552,911 (24,907) (749) 57,338 Net change in fund balances 2,347,626 343,138 652,149 8,258,034 FUND BALANCES:

Beginning of year, as previously presented 27,864,883 764,698 31,230,266 (4,765,526) - Restatements - - - -
Beginning of year, as restated 27,864,883 764,698 31,230,266 (4,765,526) End of year 30,212,509$ 1,107,836$ 31,882,415$ 3,492,508$ Special Revenue
General Fund
Housing
Authority
Housing
Successor
Agency
Miscellaneous
Grants
32 See accompanying Notes to Basic Financial Statements.

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Capital Project
Fund
Nonmajor Total
Governmental Governmental
Funds Funds
-$ -$ 5,057,615$
- - 19,001,806
- 105,317 6,434,796
- 8,166,201 9,609,118
3,180,855 10,072,646 64,538,559
- 1,626,224 2,722,968
- 3,226 331,995
- 4,980,588 4,980,588
- 4,612,474 14,329,938
609,298 1,447,086 5,511,945
72,640 618,498 3,780,150
3,862,793 31,632,260 136,299,478
- 78,615 4,644,516
- - 149,299
- - 685,760
- - 403,824
- - 1,297,264
- 300,194 2,090,722
- 6,268,555 48,226,577
- 452,852 37,713,904
- 203,735 406,260
- 8,681,895 11,680,506
- - 286,772
13,784,180 10,804,306 24,588,486
- 2,783,955 2,946,207
- 1,821,064 1,847,325
13,784,180 31,395,171 136,967,422
(9,921,387) 237,089 (667,944)
5,656,695 4,437,864 17,652,373
(1,613,704) (9,168,565) (15,755,490)
4,042,991 (4,730,701) 1,896,883
(5,878,396) (4,493,612) 1,228,939
- 57,374,341 112,468,662
18,342,507 (18,342,507) -
18,342,507 39,031,834 112,468,662
12,464,111$ 34,538,222$ 113,697,601$
Capital
Improvement
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City of Pittsburg
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities For the year ended June 30, 2025
Net Change in Fund Balances - Total Governmental Funds 1,228,939$ Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated lives as depreciation expense. This was the amount of capital assets recorded in the current period, net of the amount related to internal service funds.

Capital outlay 25,632,036
Net retirements and adjustments (390,608)
Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities, but did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds, net of the amount related to internal service funds. (9,778,769)
Accrued compensated leave payments were reported as expenditures in the governmental funds, however expense is recognized in the Government-Wide Statement of Activities based on earned leave accruals. 155,803
Repayments of long-term debt are recognized as expenditures in the governmental funds. In the government-wide statements, repayments of long-term liabilities are reported as reductions of liabilities. Expenditures for repayment of the principal portion of long-term debt were not reported in the Government-Wide Statement of Activities.

Repayment of debt, lease and subscription principal 2,946,207 Accreted interest (1,041,507)
Current year employer pension contributions are recorded as expenditures in the governmental funds, however, these amounts are reported as a deferred outflow of resources in the Government-Wide Statement of Net Position. 9,736,072
Pension expense reported in the Government-Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds. (15,048,879)
Current year OPEB pension contributions are recorded as expenditures in the governmental funds, however, these amounts are reported as a deferred outflow of resources in the Government-Wide Statement of Net Position. 2,272,373
OPEB expense reported in the Government-Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds. (1,070,745)
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.

Change in accrued interest payable 21,615
Change in unavailable revenues 416,554
Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue of the internal service funds was reported with governmental activities. 2,688,851 Change in Net Position of Governmental Activities 17,767,942$ Amounts reported for governmental activities in the Government-Wide Statement of Activities were different because:

See accompanying Notes to Basic Financial Statements
34

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City of Pittsburg
Statement of Net Position
Proprietary Funds
June 30, 2025
ASSETS
Current Assets:

Cash and investments 49,106,099$ 6,383,376$ 1,741,833$ Restricted cash and investments 38,827,690 - -
Receivables:

Accounts 4,277,821 694,677 -
Leases - - -
Inventory 128,301 24,823 4,605
Prepaid items and other assets 2,540 150 3,576
Total current assets 92,342,451 7,103,026 1,750,014
Noncurrent:

Loans and notes - - -
Leases receivable - - 612,695
Advances to other funds - 27,036 -
Capital assets:

Nondepreciable capital assets 21,230,711 776,694 1,767,506 Depreciable capital assets 120,410,184 68,169,072 22,284,480 Accumulated depreciation (38,445,641) (24,385,692) (13,159,128) Net capital assets 103,195,254 44,560,074 10,892,858 Total noncurrent assets 103,195,254 44,587,110 11,505,553 Total assets 195,537,705 51,690,136 13,255,567

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflow related to pension 1,754,544 412,834 309,625 Deferred outflow related to OPEB 436,853 93,611 62,408 Total deferred outflows of resources 2,191,397 506,445 372,033

LIABILITIES
Current liabilities:

Accounts payable 3,359,235 19,916 58,152
Refundable deposits 1,704,345 - 86,757
Taxes payable - - -
Accrued interest payable 1,320,536 - -
Due to other funds 19,456 - -
Unearned revenue - - -
Compensated absences - current 286,056 74,536 18,674
Claims payable - current - - -
Long-term debt - current portion 1,990,951 - -
Total current liabilities 8,680,579 94,452 163,583
Noncurrent liabilities:

Advances from other funds - - -
Compensated absences 322,573 84,051 21,057
Claims payable - - -
Net pension liability 6,025,256 1,417,708 1,063,281
Net OPEB liability 4,775,393 1,023,298 682,199
Long-term debt 71,276,595 - -
Total noncurrent liabilities 82,399,817 2,525,057 1,766,537 Total liabilities 91,080,396 2,619,509 1,930,120

DEFERRED INFLOWS OF RESOURCES
Deferred inflow related to leases - - 548,781
Deferred inflow related to pension 27,657 6,507 4,881 Deferred inflow related to OPEB 100,308 21,495 14,330 Total deferred inflows of resources 127,965 28,002 567,992

NET POSITION
Net investment in capital assets 68,755,398 44,560,074 10,892,858 Restricted for:

Capital projects 38,827,315 - -
Facility fees 11,156,564 980,377 -
Unrestricted (12,218,536) 4,008,619 236,630
Total net position 106,520,741$ 49,549,070$ 11,129,488$ Major Enterprise Funds
Water Utility Sewer Utility Marina
36 See accompanying Notes to Basic Financial Statements.

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Governmental
Total Activities
Enterprise Internal
Funds Service Funds
11,621,841$ 1,933,614$ 70,786,763$ 9,349,664$
- - 38,827,690 4,824,191
1,779,060 40,921 6,792,479 32,268
90,578 393,279 483,857 -
55,897 - 213,626 427,179
- - 6,266 39,809
13,547,376 2,367,814 117,110,681 14,673,111
1,040,643 - 1,040,643 -
3,657,121 15,835,845 20,105,661 -
375,000 - 402,036 - Hard Coded (Net)
4,427,010 13,673 28,215,594 -
21,060,869 1,583,966 233,508,571 14,014,082
(14,278,493) (51,452) (90,320,406) (11,535,684)
11,209,386 1,546,187 171,403,759 2,478,398
16,282,150 17,382,032 192,952,099 2,478,398
29,829,526 19,749,846 310,062,780 17,151,509
928,876 206,417 3,612,296 -
124,815 31,204 748,891 -
1,053,691 237,621 4,361,187 -
397,239 213,862 4,048,404 807,854
24,277 103,118 1,918,497 -
265,873 - 265,873 -
- - 1,320,536 -
- - 19,456 943
1,783,251 575,038 2,358,289 -
124,539 3,949 507,754 103,405
- - - 109,700
- - 1,990,951 21,329
2,595,179 895,967 12,429,760 1,043,231
- - - 27,036 Hard Coded (Net)
140,438 4,453 572,572 71,859
- - - 50,418
3,189,842 708,853 12,404,940 -
1,364,398 341,099 8,186,387 -
- - 71,276,595 39,110
4,694,678 1,054,405 92,440,494 188,423
7,289,857 1,950,372 104,870,254 1,231,654
3,530,261 15,137,427 19,216,469 -
14,642 3,254 56,941 -
28,659 7,165 171,957 -
3,573,562 15,147,846 19,445,367 -
11,209,386 1,546,187 136,963,903 2,417,959
- - 38,827,315 -
- - 12,136,941 -
8,810,412 1,343,062 2,180,187 8,677,705
20,019,798$ 2,889,249$ 190,108,346$ 15,919,855$ Major Enterprise Funds
Pittsburg Power
Company
Waterfront
Operations
37

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City of Pittsburg
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the year ended June 30, 2025
OPERATING REVENUES:

Charges for services 28,495,479$ 5,031,461$ 1,331,859$ Meter fees 20,438 - -
Other fees 465,001 - -
Facility reserve fees 285,982 79,812 -
Rent and concessions - - 53,393
Gas and oil sales - - 604,409
Other operating revenues 580,037 78,737 14,342
Total operating revenues 29,846,937 5,190,010 2,004,003 OPERATING EXPENSES:

Salaries and wages 4,365,217 1,089,448 521,546
Department supplies 10,258,758 100,119 662,028
Rentals - - -
Utilities 1,900,112 22,924 303,085
Maintenance and operations 1,435,874 - 256,505
Depreciation and amortization 1,887,359 1,458,270 463,956 Insurance premiums - - -
Insurance deductible 443,386 90,061 52,973
Fringe benefits 4,589,506 779,056 204,459
Other operating expenses 1,432,406 344,612 187,317
Total operating expenses 26,312,618 3,884,490 2,651,869 Operating income (loss) 3,534,319 1,305,520 (647,866) NONOPERATING REVENUES (EXPENSES):

Investment earnings 3,837,624 232,128 93,850
Intergovernmental - - 22,579
Gain/(loss) on disposal of assets - - -
Interest and fiscal charges (3,135,837) - -
Total nonoperating revenues (expenses) 701,787 232,128 116,429 Income before contributions and transfers 4,236,106 1,537,648 (531,437) CONTRIBUTIONS AND TRANSFERS:

Transfers in 1,234,235 - -
Transfers out (1,143,041) (1,258,096) (313,859)
Total contributions and transfers 91,194 (1,258,096) (313,859) Change in net position 4,327,300 279,552 (845,296)
NET POSITION:

Beginning of year, as previously presented 101,931,291 49,291,890 11,984,142 Restatements 262,150 (22,372) (9,358)
Beginning of year, as restated 102,193,441 49,269,518 11,974,784 End of year 106,520,741$ 49,549,070$ 11,129,488$ Major Enterprise Funds
Water Utility Sewer Utility Marina
38 See accompanying Notes to Basic Financial Statements.

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Governmental
Total Activities
Enterprise Internal
Funds Service Funds
8,966,274$ 4,564$ 43,829,637$ 17,549,226$ - - 20,438 -
1,187,270 - 1,652,271 -
- - 365,794 -
190,029 768,503 1,011,925 -
- - 604,409 -
432,786 - 1,105,902 244,823
10,776,359 773,067 48,590,376 17,794,049
1,710,854 85,925 7,772,990 1,512,665
2,909,565 627 13,931,097 1,172,515
- - - 49,959
46,810 - 2,272,931 598,246
996,172 186,256 2,874,807 1,865,133
536,932 5,415 4,351,932 745,725
428,532 - 428,532 2,812,199
73,674 20,863 680,957 330,663
1,425,681 167,653 7,166,355 6,939,202
796,105 257,711 3,018,151 67,768
8,924,325 724,450 42,497,752 16,094,075
1,852,034 48,617 6,092,624 1,699,974
702,705 674,079 5,540,386 496,724
144,320 - 166,899 -
- - - 91,007
- - (3,135,837) (641)
847,025 674,079 2,571,448 587,090
2,699,059 722,696 8,664,072 2,287,064
55,200 - 1,289,435 631,000
(805,318) (67,791) (3,588,105) (229,213)
(750,118) (67,791) (2,298,670) 401,787
1,948,941 654,905 6,365,402 2,688,851
18,096,925 2,237,490 183,541,738 13,263,400
(26,068) (3,146) 201,206 (32,396)
18,070,857 2,234,344 183,742,944 13,231,004
20,019,798$ 2,889,249$ 190,108,346$ 15,919,855$ Major Enterprise Funds
Pittsburg Power
Company
Waterfront
Operations
39

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City of Pittsburg
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers and users 29,242,614$ 5,111,290$ 2,142,133$ Cash payments to suppliers of goods and services (14,597,083) (589,203) (1,459,249) Cash payments to or on behalf of employees for services (7,849,903) (1,892,785) (908,035) Other receipts 580,037 78,737 14,342 Net cash provided by (used in) operating activities 7,375,665 2,708,039 (210,809) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Interfund receipts - 26,634 - Intergovernmental receipts - - 22,579 Interfund payments (93,199) - - Transfers in 1,234,235 - - Transfers out (1,143,041) (1,258,096) (313,859) Net cash provided by (used in) noncapital financing activities (2,005) (1,231,462) (291,280) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Principal paid on long-term debt (2,000,218) - - Interest and fiscal charges paid on long-term debt (3,173,980) - - Proceeds from sale of capital assets - - - Acquisition of capital assets (12,319,910) (1,395,283) - Net cash provided by (used in)
capital and related financing activities (17,494,108) (1,395,283) - CASH FLOWS FROM INVESTING ACTIVITIES:

Interest on investments 3,837,624 232,128 93,850 Net cash provided by (used in) investing activities 3,837,624 232,128 93,850 Net cash flows (6,282,824) 313,422 (408,239) CASH AND INVESTMENTS - Beginning of year 94,216,613 6,069,954 2,150,072 CASH AND INVESTMENTS - End of year 87,933,789$ 6,383,376$ 1,741,833$

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) 3,534,319$ 1,305,520$ (647,866)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation 1,887,359 1,458,270 463,956 (Increase) decrease in accounts receivable & notes receivable (91,459) 17 (116) (Increase) decrease in prepaid expense 33,519 43 (222) (Increase) decrease in leases receivable and related deferred inflows of resources - - (15,794) Increase (decrease) in accounts payable 839,934 (31,530) 1,599 Increase (decrease) in salaries and wages payable - - - Increase (decrease) in refundable deposits 67,173 - 168,382 Increase (decrease) in taxes payable - - 266 Increase (decrease) in unearned revenue - - - Increase (decrease) in compensated absences (16,371) 5,977 (24,095) Increase (decrease) in net pension liability and related deferred outflows and inflows 233,769 55,003 41,255 Increase (decrease) in net OPEB liability and related deferred outflows and inflows 887,422 (85,261) (199,190) Increase (decrease) in claims payable - - - Net cash provided by (used in) operating activities 7,375,665$ 2,708,039$ (210,809)$ Major Enterprise Funds
Water Utility Sewer Utility Marina
See accompanying Notes to Basic Financial Statements
40

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Governmental
Total Activities
Enterprise Internal
Funds Service Funds
9,278,206$ 180,479$ 45,954,722$ 17,558,675$ (5,340,622) (544,649) (22,530,806) (6,390,914) (2,928,924) (195,098) (13,774,745) (8,961,200) 432,786 - 1,105,902 244,823 1,441,446 (559,268) 10,755,073 2,451,384 - - 26,634 - 144,320 - 166,899 - - - (93,199) (25,691) 55,200 - 1,289,435 631,000 (805,318) (67,791) (3,588,105) (229,213) (605,798) (67,791) (2,198,336) 376,096 - - (2,000,218) (113,299) - - (3,173,980) (641) - - - 91,007 (746,138) - (14,461,331) (1,244,466) (746,138) - (19,635,529) (1,267,399) 702,705 674,079 5,540,386 496,724 702,705 674,079 5,540,386 496,724 792,215 47,020 (5,538,406) 2,056,805 10,829,626 1,886,594 115,152,859 12,117,050 11,621,841$ 1,933,614$ 109,614,453$ 14,173,855$ 1,852,034$ 48,617$ 6,092,624 1,699,974 536,932 5,415 4,351,932 745,725 (1,196,705) (37,248) (1,325,511) 10,415 - - 33,340 (2,369) (51,200) (494,249) (561,243) - (69,777) (79,192) 661,034 464,985 - - - (463,599) (1,250) 5,000 239,305 (966) (19,987) - (19,721) - 183,788 (66,091) 117,697 - 87,146 (13,057) 39,600 (45,734) 123,761 27,502 481,290 - (3,296) 44,035 643,710 - - - - 42,953 1,441,446$ (559,268)$ 10,755,073$ 2,451,384$ Major Enterprise Funds
Pittsburg Power
Company
Waterfront
Operations
41

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City of Pittsburg
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
Custodial
Funds
ASSETS
Cash and investments 2,931,322$ 4,287,045$
Cash and investments held with fiscal agent 31,907,908 1,690,876 Assessment receivable 16,042,519 821,763
Inventory 16,821 -
Loans receivable 6,220,555 -
Total assets 57,119,125 6,799,684

LIABILITIES

Accounts payable - 676,451
Refundable deposits - 27,756
Interest payable 4,690,386 -
Deferred assessments
Due within one year 99,489 854,675
Long-term liabilities:

Due within one year 26,665,000 -
Due in more than one year 116,650,787 -
Total liabilities 148,105,662 1,558,882

NET POSITION
Restricted for:
for bondholders - 5,240,802
Unrestricted (deficit) (90,986,537) -
Total Net Position (90,986,537)$ 5,240,802$
Successor
Agency to the
Redevelopment
Agency Private-
Purpose Trust
See accompanying Notes to Basic Financial Statements.
43

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City of Pittsburg
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2025
Custodial
Funds
ADDITIONS:

Property tax and special assessments 32,203,396$ 3,392,729$ Use of money and property 1,467,210 213,366
Other revenues 281,254 -
Total additions 33,951,860 3,606,095
DEDUCTIONS:

General administration 1,347,341 3,654,484
Payment to bond holders - 1,279,292 Interest and fiscal charges 12,295,249 381,644
Total deductions 13,642,590 5,315,420
Change in net position 20,309,270 (1,709,325)
NET POSITION:

Beginning of year, as previously presented (108,815,349) 6,950,127 Restatements (2,480,458) -
Beginning of year, as restated (111,295,807) 6,950,127 End of year (90,986,537)$ 5,240,802$
Successor
Agency to the
Redevelopment
Agency Private-
Purpose Trust
See accompanying Notes to Basic Financial Statements.
44

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NOTES TO BASIC

FINANCIAL STATEMENTS

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46

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The basic financial statements of the City of Pittsburg, California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A. Reporting Entity

The City was incorporated under the General Laws of the State of California and enjoys all the rights and privileges pertaining to such “General Law” cities. The City uses the City Council/Manager form of government. The financial reporting entity consists of (a) the primary government, the City, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

Component units are legally separate organizations for which the elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the primary government’s exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

The criteria used in determining the scope of the reporting entity are based on the provisions of Governmental Accounting Standards Board (GASB) Statement No. 14, as amended by No. 61. The City is the primary governmental unit. Component units are those entities which are financially accountable to the primary government, either because the City appoints a voting majority of the component unit’s board, or because the component unit will provide a financial benefit or impose a financial burden on the City. The following entities have been accounted for as “blended” component units of the City. Despite being legally separate, these entities are so intertwined with the City that they are, in substance, part of the City’s operations. Accordingly, the balances and transactions of these component units are reported within the funds of the City. Balances for these entities are reported as separate funds in the special revenue and enterprise funds. The following specific criteria are used in determining that these other entities are blended component units:

 The members of the City Council also act as the governing bodies of the entities.  The entities are managed by employees of the City. A portion of the City’s salary and overhead expenses are billed to the entities each year.
 The City and the entities are financially interdependent. The City makes loans to the entities for community development purposes and for operational purposes. General revenues of the agencies are used to repay the loans to the City.

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

A. Reporting Entity, Continued

The following is a brief review of the component units included in the accompanying basic financial statements of the City:

Housing Authority

Housing Authority (Section 8), in the accompanying financial statements, was established to account for Federal funds for low income housing under voucher programs. The Housing Authority also administers the Veterans Affairs Supportive Housing (VASH), which provides rental and other clinical services to homeless veterans. The Housing Authority is reported as a blended component unit because the Board is made up of the City Council members, and the Housing Authority has a financial benefit/burden relationship with the City. The Housing Authority is reported in the special revenue fund of the City. No separate financial report is issued by the Housing Authority.

Successor Agency

The Successor Agency was established to account for activities related to the assets assumed by the City as Housing Successor to the Pittsburg Redevelopment Agency for the housing activities of the former Redevelopment Agency. The Successor Agency is reported as a blended component unit because the Board is made up of the City Council members, and has a financial benefit/burden relationship with the City. The Successor Agency is reported in the special revenue fund of the City. No separate financial report is issued by the Successor Agency.

Housing Successor Agency

The Housing Successor Agency was established to account for activities related to the assets assumed by the City as Housing Successor to the Pittsburg Redevelopment Agency for the housing activities of the former Redevelopment Agency. The Housing Successor is reported as a blended component unit because the Board is made up of the City Council members, and has a financial benefit/burden relationship with the City. The Successor Agency Housing is reported in the special revenue fund of the City. No separate financial report is issued by the Housing Successor Agency.

Pittsburg Infrastructure Financing Authority

The Public Infrastructure Financing Authority (PIFA) was established by a Joint Exercise of Powers Agreement dated December 5, 1994, by and among the City and the former Redevelopment Agency, and is qualified to issue bonds under the Mello-Roos Local Bond Pooling Act of 1985. The PIFA was formed to finance the acquisition of certain public improvements and to refinance prior outstanding special assessment district debt with City commitment. The PIFA is reported as a blended component unit because its governing body consists of City Council members, and the PIFA has a financial benefit/burden relationship with the City. The PIFA is currently inactive; therefore, no separate financial report is issued.

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued A. Reporting Entity, Continued
Southwest Pittsburg GHAD II
The Southwest Pittsburg GHAD II (GHAD) was established by City Council in order to provide maintenance of slope stability in the open spaces areas of Southwest Pittsburg. Funding for the GHAD is provided through assessment fees levied on homes built on the hillside areas. This fund centralizes the accounting for the revenues and expenses associated with GHAD as required by law. The GHAD is reported as a blended component unit because its governing body consists of City Council members, and the GHAD has a financial benefit/burden relationship with the City. No separate financial report is issued by the GHAD.

Pittsburg Power Company
The Pittsburg Power Company (the Company) was established by a Joint Exercise of Powers Agreement dated September 23, 2006, by and among the City and the Former Redevelopment Agency. The Company was formed to establish a municipal utility for natural gas and electric service. The Company is reported in the Pittsburg Power Company enterprise fund of the City. The Company is reported as a blended component unit because its governing body consists of City Council members, and the Company has a financial benefit/burden relationship with the City. No separate financial report is issued by the Company.

Pittsburg Arts and Community Foundation
The Pittsburg Arts and Community Foundation (PACF) was created as an independent non-profit corporation set up to increase, support and encourage art, literacy, education, economic development, affordable housing and other community resources and programs to benefit the City of Pittsburg and its residents.

Since the City of Pittsburg and PACF have the same governing board, have a financial benefit/burden relationship and the City can impose its will on PACF, it is required to be reported as a blended component unit of the City. Its financial information can be found in a special revenue fund under non- major Governmental Funds. No separate financial report is issued by PACF.

B. Basis of Accounting and Measurement Focus
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 in 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 purpose for which they are to be spent and the means by which spending activities are controlled. 49

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

B. Basis of Accounting and Measurement Focus, Continued

Government-Wide Financial Statements

The Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of Governmental and Business-Type Activities for the City accompanied by a total column.

These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and deferred outflows and liabilities and deferred inflows, including capital assets, as well as infrastructure assets, and long-term liabilities and deferred inflows, 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.

Certain types of transactions reported as program revenues for the City are reported in three categories:

• Charges for services
• Operating grants and contributions
• Capital grants and contributions

Certain eliminations have been made as prescribed by GASB Statement No. 34 in regard to inter-fund 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 fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following inter-fund activities have been eliminated:

• Due to/from other funds
• Advances from/to other funds
• Transfers in/out

The City applies all applicable GASB pronouncements (including all NCGA Statements and Interpretations currently in effect).

Governmental Fund Financial Statements

Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position 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 qualifications for major fund reporting.

The following are descriptions of the major funds.
50

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

B. Basis of Accounting and Measurement Focus, Continued

Governmental Fund Financial Statements, Continued

General Fund - This fund is used for all the general revenues of the City not specifically levied or collected for other City funds and the related expenditures. The General Fund accounts for all financial resources which are not accounted for in another fund. To comply with GASB 54, the Budget Stabilization balance is combined and reported under the General Fund. Details are as follows:

Housing Authority (Section 8) Special Revenue Fund – This fund was established to administer grants from Housing and Urban Development Department (HUD) to subsidize the rental costs of low-income families and veterans.

Successor Agency Housing Special Revenue Fund – This fund accounts for the activities related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency. The activities are governed by California redevelopment law and must be used to provide housing for people with low and moderate incomes.

Miscellaneous Grants Special Revenue Fund – This fund receives various grants to administer the police, recreation, public services and the American Rescue Plan Act funding.

Capital Improvement Capital Projects Fund – This fund accounts for most capital improvement projects in the City that have various funding sources. Revenues received from various sources are used for related project costs.

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 Sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current position. 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. Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, charges for services, Federal and State grants, sales taxes and earnings on investments. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

Reconciliations of the Fund Financial Statements to the Government-Wide Financial Statements are provided to explain the differences created by the integrated approach.

Fund Balances
General Fund 19,137,969$
Budget Stabilization 2,445,285
Total 21,583,254$
51

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Fund Net Position, a Statement of Revenues, Expenses and Changes in Fund Net Position, and a Statement of Cash Flows for each major proprietary fund and non-major funds aggregated.

A separate column representing internal service funds is also presented in these statements. However, internal service funds balances and activities have been combined with the governmental in the government-wide financial statements, as appropriate.

Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets, deferred outflows, liabilities and deferred inflows (whether current or noncurrent) are included on the Statement of Fund Net Position. The Statement of Revenues, Expenses and Changes in Fund Net Position present 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.

Operating revenues in the proprietary fund are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.

The following are descriptions of the major enterprise funds.

Water Utility Fund – This fund accounts for the revenues and expenses associated with management, operation, and maintenance of water treatment and distribution system to water customers of the City of Pittsburg. It also accounts for the maintenance of water plant, distribution reservoirs, and water lines.

Sewer Utility Fund – This fund accounts for the revenues and expenses associated with the maintenance and repair of 126 miles of sewer mains, sewer lift stations and sewer laterals within the City's right-of- way.

Marina Fund – This fund accounts for the revenues received from Marina berth rentals, from sales of gasoline, and expenses from operation and maintenance.

Pittsburg Power Company Fund – This fund was created by the Joint Powers Agreement between the City of Pittsburg and the former Redevelopment Agency to develop revenue streams, to manage different activities for power related projects, capital improvement projects, and bond issuance process. This fund also accounts for expenditures incurred in maintenance of the facilities, in distributing gas and electricity to the industries, schools, business, and residents of Mare Island, in Vallejo, and to account for revenues collected from services to customers.
52

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

B. Basis of Accounting and Measurement Focus, Continued

Proprietary Fund Financial Statements, Continued

Waterfront Operations Fund – This fund was created for the collection of rents and other trust revenues from the tidelands granted by the Contra Costa County Local Agency Formation Commission within Pittsburg's city limits. The City shall submit a plan indicating details of intended development, preservation, or other use of the trust lands. Any use of the trust lands shall be consistent with the plan as approved by the Commission.

Internal service fund balances and activities have been combined with governmental activities in the government-wide financial statements, and are comprised of the following funds:

Fleet Maintenance Fund – Used to account for the costs of operating, maintaining, and replacing automotive equipment used by other departments. Rental rates charged to the using departments include operating costs and equipment depreciation.

Building Maintenance Fund – Used to account for the cost of maintaining all City governmental buildings.

Insurance Fund – Used to account for revenues from charges to operating departments sufficient to provide adequate reserve for future claims.

Information/Communication Services Fund – Used to account for the cost of operating, maintaining and replacing a data processing system. Rental rates charged to the using departments include operating cost and equipment depreciation.

Fringe Benefits Fund – Used to allocate fringe costs to various departments.

Other Post-Employment Benefits (OPEB) Fund – Used to reduce unfunded OPEB liabilities and to pay the City’s portion of current year retiree medical expenses. This fund receives its funding from surplus funds beyond the maximum amount required for the Budget Stabilization reserve (25% of surplus) and from Citywide allocations based on salaries.

115 Pension Trust Reserve Fund – Used to accumulate funds to pay down CalPERS Unfunded Accrued Liability.

The City also reports fiduciary fund types.

Fiduciary Fund Financial Statements

Fiduciary fund financial statements include a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent a private-purpose trust fund and custodial funds. Custodial funds account for assets held by the City in a purely custodial capacity.

Custodial funds typically involve only the receipt, temporary investment and remittance of fiduciary resources to individuals, private organizations or other governments. 53

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

B. Basis of Accounting and Measurement Focus, Continued

Fiduciary Fund Financial Statements, Continued

The Fiduciary funds are presented on an “economic resources” measurement focus and the accrual basis of accounting.

Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund (Successor Agency) – This fund was created to account for the accumulation of resources to be used for payments at appropriate amounts and times in the future.

Assessment Districts Custodial Fund accounts for the collection of property taxes and the payments to bondholders.

Other Impact Fees Custodial Fund accounts for the collection of developer fees on behalf of the Contra Costa Fire Protection District (CCFPD), Contra Costa Water District (CCWD) and the East Contra Costa Regional Fee and Finance Authority (ECCRFF).

Vista Del Mar & San Marco CFD’s Custodial Fund accounts for funds used to construct and acquire certain public improvements, consisting of roadway, water and other infrastructure improvements necessary for the development of property within the district, as well as park improvements.

C. Use of Restricted/Unrestricted Net Position

When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first.

D. Spending Policy

The City’s policy is to spend restricted fund balances first, before spending unrestricted fund balances, for expenditures incurred for purposes for which both restricted and unrestricted fund balances are available, except for instances wherein an Agency ordinance or resolution specifies the fund balance.

The Agency’s policy is that committed and assigned fund balances are considered to have been spent first before unassigned fund balances have been spent, when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used, except for instances wherein an Agency ordinance specifies the fund balance. 54

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

E. Cash and Investments

The City pools its available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with an original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments.

In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available.

The City participates in an investment pool managed by the State of California, entitled Local Agency Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset- Backed Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to change in interest rates.

In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB No. 3), certain disclosure requirements for Deposits and Investment Risks were made in the following areas:

• Interest Rate Risk
• Credit Risk
• Overall Custodial Credit Risk
• Concentrations of Credit Risk

In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.

F. Restricted Cash and Investments

Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt and for acquisition and construction of capital projects, and for pension trust reserves deposited in an IRC Section 115 irrevocable trust.
55

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

G. Property Taxes

Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City accrues only those taxes, which are receivable from the county within sixty days after year-end.

Property taxes levied are recorded as revenue when received, in the fiscal year of levy, because of the adoption of the “alternate method of property tax distribution,” known as the Teeter Plan, by the City and Contra Costa County. The Teeter Plan authorizes the Auditor - Controller of Contra Costa County to allocate 100% of the secured property taxes billed, but not yet paid.

H. Interfund Balances/Internal Balances
Advances to and advances from other funds represent inter-fund loans in the fund financial statements.

Advances between funds are offset by a fund balance reservation or by deferred revenue in the applicable governmental funds to indicate that they are not expendable available financial resources.

Any unpaid interest due to lack of funds in the borrowing fund increases the principal owed and is reported in the lending fund as deferred revenue.

All other outstanding balances between funds are reported as due to and due from other funds. These are generally repaid within the following fiscal year.

Any residual balances outstanding between the governmental activities and business-type activities are reported in the Government-Wide Financial Statements as “internal balances.”

I. Capital Assets

Capital assets, which include land, buildings, improvements other than buildings, machinery and equipment and infrastructure assets (e.g. roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities in the Government-Wide Financial Statements.

Capital assets are recorded at historical cost or estimated historical cost if actual cost is not available, except for intangible right-to-use lease assets, the measurement of which is discussed in Note 4.

Contributed capital assets are valued at their estimated acquisition value on the date contributed.

Lien Date January 1
Levy Date July 1
Due Date Secured: November 1 and February 1
Unsecured: July 1
Collection Date Secured: December 10 and April 10
Unsecured: August 31
56

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

I. Capital Assets, Continued

City policy has set the capitalization thresholds for reporting capital assets as follows:

Depreciation is recorded on a straight-line method over the useful lives of the assets as follows:

The GASB Statement No. 34 requires the inclusion of infrastructure capital assets in local governments’ basic financial statements. In accordance with GASB Statement No. 34, the City has included the value of all infrastructure assets in its Government-Wide Financial Statements.

The City defines infrastructure as the basic physical assets that allow the City to function. The assets include:

• Street system
• Site amenities such as parking and landscaped areas used by the City in the conduct of its business • Water and sewer plants

Each major infrastructure system can be divided into subsystems. For example the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land. These subsystems were not delineated in the Government-Wide Financial Statements. The appropriate operating department maintains information regarding the subsystems.

For all infrastructure systems, the City has elected to use the Basic Approach as defined by GASB Statement No. 34 for infrastructure reporting. The City conducted a valuation of its infrastructure assets as of July 1, 2002. This valuation determined the original cost using one of the following methods:

1) Use of historical records where available.
2) Standard unit costs appropriate for the construction/acquisition date of the asset. 3) Present replacement cost indexed by a reciprocal factor of the price increase from the construction/acquisition date to the current date.

The accumulated depreciation, defined as the total depreciation from the date of construction/acquisition to the current date was computed on a straight-line method using industry accepted life expectancies for each infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation from the original cost.

General Capital Assets 5,000$
Infrastructure Capital Assets 25,000
Building and Improvements 20 - 70 years
Machinery and Equipment 3 - 10 years
Infrastructure 20 - 75 years
Right-to-use Leased Buildings 4 - 20 years
Right-to-use Subscription Assets 4 - 20 years
57

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

J. Interest Payable

In the government-wide financial statements, interest payable on long-term debt is recognized as the liability incurred for governmental fund types and proprietary fund types.

In the fund financial statements, propriety fund types recognize the interest payable when the liability is incurred.

K. Long-Term Debt

Government-Wide Financial Statements

Long-term debt and other financial obligations are reported as liabilities in the appropriate activities.

Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight- line method. Bonds payable are reported net of the applicable premium or discount.

Fund Financial Statements

The Governmental Fund Financial Statements do not present long-term debt, which are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.

Governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued and lease liabilities are reported as other financial sources.

Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Proprietary Fund Financial Statements use the same principles as those used in the Government-Wide Financial Statements.

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

L. Unearned Revenue

Unearned revenue is recognized for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues are unearned grants and prepaid charges for services.

M. Compensated Absences

The City recognizes a liability for compensated absences for leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used as time off or settled during or upon separation from employment. The City’s compensated absences include, vacation, sick leave, administrative leave, and floating holidays. The liability for compensated absences is reported as incurred in the government- wide and proprietary fund financial statements. A liability for compensated absences is recorded in the governmental funds only if the liability has matured because of employee resignations or retirements.

The liability for compensated absences includes salary-related benefits, where applicable, and is assumed to be accrued using the first-in, first-out (FIFO) method, meaning that leave earned first is used first.

The change in compensated absences was as follows at June 30, 2025:

Governmental Business-Type
Activities Activities Total
Beginning Balance (restated) 4,339,004$ 1,040,726$ 5,379,730$ Net Additions (Payments) (201,539) 39,600 (161,939) Ending Balance 4,137,465$ 1,080,326$ 5,217,791$ Current Portion 2,452,355$ 507,754$ 2,960,109$ 59

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

N. Deferred Outflows/Inflows of Resources

In addition to assets, the statement of net position or balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of net position or balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

O. Fair Value Measurements

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

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

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

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

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

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

P. Estimates and Assumptions

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

Q. Leases

A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange- like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment.

Lessee – The City is a lessee for a noncancellable lease of equipment. The City recognizes a lease liability and an intangible right‐to‐use lease asset (lease asset) in the government ‐wide financial statements. The City recognizes lease liabilities with an initial, individual value of $100,000 or more.

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

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments as follows:

 The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
 The lease term includes the noncancellable period of the lease.  Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

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

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

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

Q. Leases, Continued

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

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

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as follows:
 The City uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease.  Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee
The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

R. Subscription-Based Information Technology Arrangements (SBITAs)

A Subscription-Based Information Technology Arrangement (SBITA) is a contract that conveys control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction.

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

Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments as follows:

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

R. Subscription-Based Information Technology Arrangements (SBITAs), Continued

 The City uses the interest rate charged by the IT vendor as the discount rate. When the interest rate charged by the IT vendor is not provided, an estimated incremental borrowing rate is used as the discount rate for subscription liabilities.
 The subscription term includes the noncancellable period of the subscription.  Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

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

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

S. Implementation of Governmental Accounting Standards Board (GASB) Pronouncements

GASB Statement No. 101 – Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The City implemented the requirement of this statement during the current fiscal year.

GASB Statement No. 102 – Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The City implemented the requirement of this statement during the current fiscal year. It resulted in no disclosure.

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

2. CASH AND INVESTMENTS

The City pools cash from all sources and all funds except Cash and Investments held by Trustees and Internal Revenue Code section 115 Trust so that it can be invested at the maximum yield consistent with safety and liquidity, while individual funds can make expenditures at any time.

A. Policies

California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a market value of 150% of the deposit, as collateral for these deposits. Under California Law this collateral is held in a separate investment pool by another institution in the City’s name and places the City ahead of general creditors of the institution.

The City invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. In order to increase security, the City employs the Trust Department of a bank as the custodian of certain City managed investments, regardless of their form. Individual investments are generally made by their City’s fiscal agent as required under its debt issues, or through the City's Investment Advisor, Chandler Asset Management (CAM).

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

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

B. Classification

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

Separate
Statement
Governmental Business-Type Fiduciary
Activities Activities Total Funds Total
Cash and investments 86,479,852$ 70,786,763$ 157,266,615$ 7,218,367$ 164,484,982$ Restricted cash and investments 9,475,988 38,827,690 48,303,678 33,598,784 81,902,462 Total cash and investments 95,955,840$ 109,614,453$ 205,570,293$ 40,817,151$ 246,387,444$ of Net Position
Government-Wide Statement
64

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

2. CASH AND INVESTMENTS

C. Investments Authorized by the Code and the City’s Investment Policy

The City’s Investment Policy and the California Government Code allow the City to invest in the following investments, provided the credit ratings of the issuers are acceptable to the City, and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code, or the City’s Investment Policy where the City’s Investment Policy is more restrictive.

In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Pools, investments were stated at fair value using the aggregate method.

The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California.

The City’s investments with LAIF at June 30, 2025, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

Structured Notes – are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options.

Asset-Backed Securities – the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.

As of June 30, 2025, the City had $38,551,737 invested in LAIF, which had invested 9.00% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 3% in the previous year. The LAIF fair value factor of 1.00119831 was used to calculate the fair value of the investments in LAIF.

Maximum Minimum Credit Maximum % Maximum Per
Authorized Investment Type Maturity Quality* of Portfolio Issuer Asset-Backed Securities 5 years AA 20% 5%
Bankers' Acceptances 180 days A1/P1 40% 5%
n/a n/a none none
California Asset Management Program (CAMP)
Certificates of Deposit 1 year A 30% 5%
Commercial Paper 270 days A-1 25% 10%
Federal Agency Obligations 5 years none none 30%
Local Agency Investment Fund (LAIF) n/a none $75 million none Medium-Term Notes 5 years A 30% 5%
Money Market Funds n/a 2 highest ratings 20% 10% per fund Negotiable Certificates of Deposit 5 years “A-1” ST, "A" LT 30% 5% Repurchase Agreements 90 days A 15% 5%
State and Local Obligations 5 years A 30% 5%
Supranational Securities 5 years AA 30% 10%
U.S. Treasury Obligations 5 years none none none
*At time of purchase
65

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

2. CASH AND INVESTMENTS, Continued

D. Investments Authorized by Debt Agreements

The City and Successor Agency to the Redevelopment Agency must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the agencies fail to meet their obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City resolutions, bond indentures or State statutes. The table below identifies the investment types that are authorized for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements:

E. Public Agencies Post-Employment Trust

On October 21, 2019, the City Council adopted Resolution 19-13711 approving the adoption of the Public Agencies Post-Employment Trust administered by Public Agency Retirement Services (PARS). The Trust is an irrevocable trust and qualifies as an Internal Revenue Code Section 115 Trust. The Trust will assist the City in mitigating the CalPERS contribution rate volatility. Investments of funds held in the Trust are governed by the Investment Guideline Document for the investment account and by the agreement for administrative services with PARS, rather than the general provisions of the California Government Code of the City’s Investment Policy. The City elected a discretionary investment approach, which allows the City to maintain oversight of the investment management, control on target yield and the portfolio’s risk of tolerance, under the Moderately Conservative Index PLUS investment option. The assets in the Trust will eventually be used to fund pension plan obligations.

Maximum Minimum Credit
Authorized Investment Type Maturity Quality
Bankers' Acceptances 180 days A1/P1
California Asset Management Program (CAMP) n/a n/a
Certificates of Deposit 1 year A
Commercial Paper 270 days A1/P1/F1
Guaranteed Investment Agreements n/a none
Local Agency Investment Fund (LAIF) n/a none
Medium Term Notes 5 years A
Money Market Fund n/a 3 highest ratings
Municipal Obligations n/a AAA
Pre-refunded Municipal Obligations n/a AAA
Repurchase Agreements 90 days A
State of California Obligations 5 years A -
U.S. Agencies n/a AAA
U.S. Treasury Obligations 5 years none
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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

2. CASH AND INVESTMENTS, Continued

F. Fair Value Hierarchy

The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

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

U.S. Treasury Obligations, Federal Agency Obligations, Medium–Term Corporate Notes, Asset-Backed Securities, Commercial Paper and Supranational Securities classified in Level 2 of the fair value hierarchy, are valued using pricing techniques of matrix pricing or market corroborated pricing, with inputs such as yield curves or indices. Investment in partnership is measured at net asset value (NAV).

Level 2 Total
Investments by Fair Value Level :

U.S. Treasury Obligations 41,953,442$ 41,953,442$
Federal Agency Obligations 24,118,051 24,118,051
Medium-Term Notes 19,248,796 19,248,796
Asset-Backed Securities 7,582,363 7,582,363
Commercial Paper 2,955,010 2,955,010
Supranational Securities 2,125,951 2,125,951
Subtotal 97,983,613$ 97,983,613$
Investments Measured at Cost:

Money Market Funds 8,333,050$
Held with Trustee:

Money Market Funds 76,918,393
Investments valued at net asset value
Investment in Partnership 725,225
Investments Exempt from Fair Value Hierarchy:

Local Agency Investment Fund 38,551,737
Mutual Funds (PARS Trust) 4,824,182
Total Investments 227,336,200
Cash in banks and on hand 19,051,244
Total Cash and Investments 246,387,444$
67

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
F. Fair Value Hierarchy, Continued
These prices were obtained by the City’s custodian banks from multiple pricing providers. The custodian evaluated pricing methodology based on information gathered from market sources and integrate relative credit information, observed movements, and sector news into the evaluated pricings applications and models provided by the City’s custodian bank.

G. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity.

Money Market Funds are available for withdrawal on demand and at June 30, 2025 matured in an average of 1 day.

Less than
Investment Type 1Year 1- 5 Year Total
Local Agency Investment Fund 38,551,737$ -$ 38,551,737 $ Medium-Term Notes 2,974,840 16,273,956 19,248,796
Federal Agency Obligations 4,758,701 19,359,350 24,118,051 U.S. Treasury Obligations 24,091,634 17,861,808 41,953,442 Asset-Backed Securities 998,936 6,583,427 7,582,363
Commercial Paper 2,955,010 - 2,955,010
Money Market Funds 8,333,050 - 8,333,050
Supranational Securities 752,675 1,373,276 2,125,951
Investment in Partnership - 725,225 725,225
Held by Trustee:

Money Market Funds 76,918,393 - 76,918,393
Mutual Funds (PARS Trust) 4,824,182 - 4,824,182
Total Investments 165,159,158 62,177,042 227,336,200
Cash in banks and on hand 19,051,244 - 19,051,244
Total Cash and Investments 184,210,402$ 62,177,042$ 246,387,444$ Investment Maturities (in Years)
68

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City of Pittsburg
Notes to Basic Financial Statements
For the year ended June 30, 2025

2. CASH AND INVESTMENTS, Continued

H. Credit Risk

Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of June 30, 2025 for each investment type as provided by Standard and Poor’s investment rating system.

L. Concentration of Credit Risk

There are no investments in securities of individual issuers that were greater than 5% of the City’s total investments as of June 30, 2025.

J. Line of Credit

On June 3, 2022, the City issued an Irrevocable Standby Letter of Credit with Bank of the West with a principal sum of $500,000, with an expiration date of June 30, 2024. This credit was established for the benefit of the Housing Authority (Section 8) Special Revenue Fund for advancing the Housing Authority portability-in payments. Advances drawn on the line of credit bear an interest rate at 1% above the prime rate. The City deposited $500,000 as collateral for the Line of Credit with Bank of the West from the Successor Agency Housing Special Revenue Fund. There was no outstanding balance on the line of credit at June 30, 2025.

K. Investment in Partnership

In September 2022, the Housing Authority (Authority) entered into an agreement to purchase interests in the Gateway Mixed Use Development, a California limited partnership (Partnership), from two of the previous limited partners, for the sum of $50,000. The Partnership owns the Gateway Mixed-Use Project (Project), consisting of 28 affordable units and 8,106 square feet of commercial space, knows as Entrata.

The Authority wishes to eventually acquire the Project for the purpose of maintaining affordable housing.

Investment Type Total AAA/AAAm AA+ AA / AA- A+ / A / A-1 A- / A-2 Not Rated U.S. Treasury Obligations 41,953,442$ -$ 41,953,442$ -$ -$ -$ -$ Federal Agency Obligations 24,118,051 722,401 23,395,650 - - - - Medium-Term Notes 19,248,796 - 2,552,374 3,186,684 13,509,738 - - Asset-Backed Securities 7,582,363 6,169,980 - - - - 1,412,383 Commercial Paper 2,955,010 - - - - - 2,955,010 Supranational Securities 2,125,951 2,125,951 - - - - - Local Agency Investment Fund 38,551,737 - - - - - 38,551,737 Money Market Funds 8,333,050 8,333,050 - - - - - Investment in Partnership 725,225 - - - - - 725,225 Held by Trustee:

Money Market Funds 76,918,393 76,918,393 - - - - - Mutual Funds (PARS Trust) 4,824,182 - - - - - 4,824,182 Total Investments 227,336,200 94,269,775$ 67,901,466$ 3,186,684$ 13,509,738$ -$ 48,468,537$ Cash in banks and on hand 19,051,244
Total Cash and Investments 246,387,444$
69

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Pittsburg City CouncilApril 6, 2026

Pittsburg City Council
April 6, 2026