Pleasanton City Council
February 18, 2025

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_____________________________________________________________________________________ February 3, 2025 To the Honorable Mayor, Members of the City Council and Community Members: We are pleased to submit the Annual Comprehensive Financial Report (ACFR) for the City of Pleasanton, California, for the fiscal year ended June 30, 2024. The City of Pleasanton is required to annually publish a complete set of financial statements presented in conformance with generally accepted accounting principles (GAAP) and audited by an independent, certified public accounting firm. Pursuant to these requirements, the ACFR has been prepared in conformity with the principles and standards for financial reporting set forth by the Governmental Accounting Standards Board (GASB). The ACFR presents the financial condition of the City of Pleasanton. Management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The Pun Group, LLP (TPG) has audited the City of Pleasanton’s financial statements. The goal of the independent audit is providing reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2024, taken as a whole, are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the City’s overall financial management. TPG concluded based on the audit that there was a reasonable basis for rendering an unmodified opinion that the City of Pleasanton’s financial statements for the fiscal year ending June 30, 2024 are fairly presented in conforming with GAAP. TPG’s independent auditor’s report is the first component presented in the financial section of this report. The independent audit of the City’s financial statements is part of a broader, federally mandated Single Audit designed to meet the needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the City’s financial statements, but also on the City’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City’s separately issued Single Audit Report. GAAP requires management to provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of the Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found immediately following the independent auditor’s report in the financial section of this report.

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Profile of the Government The City of Pleasanton was incorporated on June 18, 1894. Pleasanton’s history has been shaped largely by its geographic location, from its days as a stop on the transcontinental railroad to its modern-day position as a center of commerce at the intersection of interstate freeways 580 and 680. Pleasanton enjoys a rich blend of historic turn-of-the-century charm and vital modern facilities that provide the quality of life and economic well-being desired by residents and businesses. This successful balance has been achieved through Pleasanton’s active and involved citizenry, strong community leadership and committed City government. The city occupies a land area of 24.2 square miles and serves a residential population of 75,960, per the California Department of Finance estimate. Pleasanton is a full-service general law city providing police, fire, sewer, water, street, parks, support services, economic development, community development (planning, building and inspection services), community services (recreation, sports, senior center, preschool, etc.) and library services. The City operates under the Council-Manager form of government, with four Council members elected by City residents for staggered four-year terms (a district-based election system) and the Mayor elected for a two-year term. The City Council appoints the City Manager and the City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City, and appointing department directors. The financial statements included in this ACFR present the City (the primary government), the Housing Authority of the City of Pleasanton (Housing Authority) and the Pleasanton Joint Powers Financing Authority (PJPFA) as component units. The Housing Authority and the PJPFA are separate legal entities. However, the members of the City Council also serve as members of the boards for these entities. Financial information for the Housing Authority and the PJPFA is blended with the City’s financial information. The biennial budget serves as the foundation for the City’s financial planning and control. The budget process begins in January in odd numbered years with each department receiving a budget packet. The City Manager meets with each department director to discuss their budget requests, followed by discussion with the City’s Executive Team and Finance staff. Prior to July 1 (of each odd numbered year), the City Manager submits to the City Council a proposed operating budget for the coming two fiscal years. The operating budget includes proposed expenditures and funding sources. Public hearings are conducted to obtain community input. The budget is legally adopted through passage of a City Council resolution no later than June 30. A budget review, including approved additions or changes, is presented to the City Council by the City Manager at mid-year of each fiscal year (by beginning of March) and mid-term (June of each even numbered year). Any changes as a result of these reviews are legally adopted through a City Council resolution. The City Council exercises budgetary control at the fund level. Formal budgetary integration is employed as a management control device during the fiscal year for the General Fund, Special Revenue Funds, Capital Projects Funds, Enterprise Funds, and Internal Service Funds. The budgeted funds are adopted on a basis consistent with GAAP. Expenditures may not legally exceed budgeted appropriations at the fund level. Management does not have the authority to increase the budget without the approval of the City Council. However, the City Manager may authorize budgetary transfers from one account to another within the same fund. Assessing the City’s Economic Condition The city's geographic location is a major factor affecting its economic position. The city is located at the intersection of two interstate freeways (I-580 and I-680), linking Pleasanton to Sacramento to the north, San Francisco/Oakland to the west, the Silicon Valley to the south and the San Joaquin Valley to the east. The Bay Area Rapid Transit (BART) system has two stations located in the city and provides service from

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Pleasanton to San Francisco/Oakland and the surrounding areas. The Altamont Corridor Express (ACE) provides commuter service between the San Joaquin Valley and Silicon Valley, stopping in Pleasanton. In addition to Pleasanton’s advantageous proximity to San Francisco and Silicon Valley and its transportation access, other factors contribute to its attractiveness to businesses and their ability to attract and retain quality employees. These attributes include a relatively low crime rate, moderate climate, well-educated and highly skilled labor pool, excellent schools, diversified housing stock, exceptional parks and recreational facilities, and the hometown ambiance of the historic downtown. Pleasanton’s business community consists of nearly 59,000 employees working within more than 20 million square feet of commercial, office, and industrial space throughout the city. Pleasanton boasts five distinct business parks, among them the nationally recognized Hacienda. Businesses indicate that they are attracted to the city for the quality and diversity of the regional labor force, to which Pleasanton contributes a robust base of executive, managerial, and professional people, giving employers access to a wide range of skill levels including one of the nation's largest concentrations of scientific and engineering talent. In 2022, Pleasanton had a median household income of $187,000 compared to $119,000 for Alameda County, with 46 percent of Pleasanton households earning more than $200,000. Pleasanton’s economy is steadily recovering from the effects of the COVID-19 pandemic based on several metrics: Median home value in 2024 was $1,667,289 compared to $1,115,773 in Alameda County. The unemployment rate was 4.3 percent in June 2024, up from 3.8 percent in June 2023. However, Pleasanton’s unemployment rate is one of the lowest rates compared to other cities in Alameda County. Office vacancies are 16.6 percent at the end of FY 2023/24, which rose slightly from 14.5 percent at the close of FY 2022/23. Commercial Office Activity The office market continues to experience ongoing challenges adapting to new workplace norms, partly due to the hybrid work model. Pleasanton’s office vacancy of 16.6 percent rose from the previous year (14.5 percent) but is still lower than neighboring cities of Dublin (18 percent), San Ramon (21.6 percent), and the Tri-Valley region at 18.9 percent. The office market in the Tri-Valley reported its first positive net absorption in six quarters with 17,190 SF. Notably, Pleasanton’s office market also reported a positive net absorption of 114,936 SF across all classes. Asking rates for Class A offices increased by 6.1 percent from $2.94/square foot last year to $3.12/square foot by the end of the fiscal year. As anticipated last year, the market vacancy did experience a slight rise. However, the market is showing signs of stabilization with leasing and sales activity suggesting continued recovery and growth. Total office inventory equals 12,730,000 square feet Q2 2023 Q2 2024 Overall Vacancy Rate 14.5% 16.6% Total Vacant Inventory (sq. ft.) 1,844,061 2,113,200

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Vacant Inventory (sq. ft.) Vacancy Rate Rent Cost (per sq. ft.) Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Class A 1,283,406 1,405,482 19.1% 20.9% $2.94 $3.12 Class B 313,244 437,838 10.9% 15.2% $2.42 $2.34 Flex 243,708 271,859 7.8% 8.7% $2.12 $2.99 Source: Colliers International Class A Highlights: The Class A office market had its first positive net absorption of 114,936 square feet in six months at the closing of FY 2023/24. Several significant leasing and sales transactions presented an improvement for the Pleasanton office market and a potential for continued recovery and growth. Vector Atomic Inc. leased 34,670 square feet at the former Unchained Labs location at 6870 Koll Center Parkway at the start of FY 2023/24. At the close of FY 2023/24, a notable transaction included Acco Engineered Systems signing a Class A office lease of 68,000 square feet at 5890 Owens Drive. Sutter East Bay Medical Foundation leases a 64,000 square-foot office/flex building at 4480 Willow Road. As companies navigate the landscape of hybrid work and economic uncertainties, they are evaluating their office footprints and considering higher-quality buildings with enhanced amenities to lure employees back to the office. These considerations include a notable impact on the Class A office market. The Class A office market remained flat for the first two quarters of FY2023/24. Notable transactions at year end included Shea Homes leasing 14,569 square feet at 4309 Hacienda Drive. Asking rates increased slightly at the start of the new year by $0.02 to $2.98 per square foot and the vacancy rate decreased from the previous quarter to 21.6 percent. At fiscal year-end, Class A market activity picked up for the first time in six quarters, thus presenting an improving scenario for the office market with some stabilization and potential for continued recovery and growth. Class B Highlights: Class B asking rates dropped 15.0 percent ($0.44) to $2.40 per square foot at the midpoint of FY 2023/24 in Q1 2023. This decrease was marked with a net occupancy loss of 76,346 square feet as companies reassess their spatial requirements and continue remote work option for employees. There was a slight uptick to close the fiscal year in vacancy rates from the previous year of 10.9 percent to 15.2 percent. Class B office spaces exceeding 15,000 square feet contributed to this increase. Office/Flex Highlights: Flex space continues to be a desired product as the region attracts life science and biotech users and is a leading focus in the Tri-Valley due to lower rates compared to surrounding markets. Noteworthy transactions include: Natera Inc. leased 16,319 square feet of Class B office at 5100 Franklin Drive, and STN Inc. leased 10,029 square feet of flex space at 4464 Willow Road. Notable sales transactions included EnGrace Montessori School, which purchased Dutra Plaza, a two-building 28,000 square-foot Class B office property located at 5950-5960 Stoneridge Drive. This sale was by a buyer that was an existing tenant since 2019 and expanded its presence. While vacancy rates increased annually, the market showed

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some signs of stabilization with positive net absorption for the first time in six quarters. Significant leasing and sales transactions highlight ongoing confidence in Pleasanton’s office market, suggesting potential for continued recovery and growth looking into the new fiscal year. Retail Activity The San Francisco East Bay retail real estate market is navigating a dynamic landscape. Despite some challenges, such as negative net absorption, a decrease in shopping center sale volumes, and fluctuating construction activity, key indicators like stable vacancy rates and asking rents, and steady sales prices suggest the market remains resilient. The Pleasanton retail submarket contains roughly 4.8 million square feet of inventory. Pleasanton’s vacancy rate of 7.0 percent is slightly higher compared to the five-year average of 4.7 percent, up from mid-year last FY 2022/23 vacancy rate of 4.3 percent. Market rents in Pleasanton are $41.00 per square foot, up by 1.0 percent year-over-year, compared to a change of –0.6 percent across the East Bay as a whole. Only one retail construction project was completed in October 2023: a 10,980 square foot multi-tenant building located at 6455 Owens Drive. This former Denny’s restaurant location sat vacant for years. The site has five commercial tenant suites currently consisting of Star Bird, Olive Market, and Teriyaki Madness. Retail investors are reasonably active in Pleasanton with $320 per square foot market pricing considered lower than the region’s average pricing of $344 per square foot. Four sales were reported in the latter half of the fiscal year. Notable sales during this time period include the 34,000 square foot building located at 5341 Owens Court, which consists of Villa Sports Fitness and 2,250 square foot building located at 700 Main Street in downtown, which is currently slated to open as Planta Coffee and Deli. Most recent sales tax data show slightly lower revenue in sales collections compared to the previous year. Automobile sales fell 6.2 percent – the largest sector decline at the end of the fiscal year due to high interest rates, more stringent credit standards, and increased insurance costs. Retail sales were affected slightly by shopper’s preference for lower priced items from discount department stores. Restaurants and hotels continued to fare well as residents and travelers were eager to dine out and travel. This trend continued throughout the fiscal year. The business and industry group showed an increase from the previous year due to growth in the medical/biotech category. At some city shopping centers, there is continued interest and investment in adding new tenants and completing renovations for current and future tenants. Temporary Funbox Bounce Park, Urban Momo, Tokyo Japanese Lifestyle, J Custom Design, Venus Jewelry, Perfume World, Charming Toys, L’Arte Gallery, Human Claw Machine, Isee Cream, Brow Arc, and Purple Vine opened at Stoneridge Shopping Center. Chick-fil-A opened its second Pleasanton location at 4501 Hopyard Road at the Crossroads Shopping Center; Denica’s Real Food Kitchen opened its third Tri-Valley location at the former Red Robin at 4503 Rosewood Drive in the Metro 580 Center; and Olivia Hair and Lashes, Madras Idli Kadai Restaurant, Chick and Tea Bento, and Origin Sushi opened at Rosewood Pavilion. The downtown district also experienced new openings: New personal services businesses included Refresh & Heal Massage Therapy, Hasu Nails, Onyx & Mane, Nail Creations. New dining and café openings included Koffee Time and Papa’s Dumpling. The 148,600 square foot, 40-acre Costco project in the Johnson Drive Economic Development Zone, which also includes two hotels and a drive-thru coffee shop, is nearing completion, after two lawsuits challenged

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the project. Construction of the two hotels began in March 2022 and the hotels were completed in December 2023 and February 2024. Transportation improvements at Johnson Drive, Stoneridge Drive, and Interstate 680 began in fall 2022, and Costco opened in late November 2024. In conjunction with the Housing Element update (described below) in January 2023, the City completed a planning effort for the properties comprising the Stoneridge Shopping Center (Stoneridge Mall), known as the Stoneridge Mall Framework. In addition to identifying the appropriate locations for new high-density housing, the Stoneridge Mall Framework identified new opportunities for commercial development, placemaking and amenities, and other strategies to encourage new infill development around the mall that can help ensure its long-term success and vibrancy. The City is continuing to engage with the property owners at the mall to advance the completion of a comprehensive Master Plan for Stoneridge, with progress on this effort made in the second half of 2024, which is anticipated to be ongoing into 2025-2026. General Plan Build-Out The City’s General Plan is the official document used by City Council and citizens to guide the long-range development of land and conservation of resources as the city grows and changes. It is the City’s “constitution” for all future development, containing goals, policies, and maps with the most recent General Plan adopted in July 2009. Following a more than two-year process, the City’s 6th Cycle Housing Element for the period 2023-2031 was adopted in January 2023, formally certified by the State Housing and Community Development Department in August 2023 and re-adopted in September 2023. The Housing Element designates 20 new sites to allow residential development at various densities throughout the city. Together with capacity on existing zoned sites, the Housing Element meets the City’s requirement to plan for up to 5,965 units as assigned in the 6th Cycle Regional Housing Needs Allocation (RHNA). The City has seen active interest in advancing housing projects on several of these sites, with applications in process as of the end of the fiscal year, with applications for over 620 units currently under review. Projects on housing element sites that were approved in FY 2023-24 include the 57-unit townhome project at 3200 Hopyard Road; the Harmony Condominiums, a 42-unit townhome project on the site of the former Tri-Valley Inn; and the 111-unit Merritt Senior Residential Project. Avalon Bay processed an amendment to its existing PUD and has begun construction of a portion of the 305-unit residential project at the Rosewood Commons site. Major City Sponsored Initiatives The City is committed to providing innovative, cost-effective, and responsive services to the community through which it continued to implement services and programs that are consistent with the community’s mission, vision, values and strategic goals. Major programs, projects and accomplishments for FY 2023/24 include the following: Transportation Completed Pavement Management Program update Completed St Mary Street parking lot lighting improvements Continued design for W. Las Positas Boulevard multimodal reconstruction Completed Annual Curb and Gutter Completed Annual Slurry Seal and pavement repairs

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Parks Completed the Val Vista Community Park playground replacements Completed the Augustin Bernal Mountain Bike Trail Completed the 200 Old Bernal Landscape Renovation project Completed Cricket Pitch Field at Ken Mercer Sports Park Completed the Val Vista Community Park underdrain improvements Completed the design of the Ken Mercer Skate Park Installed rubber surfacing in 32 tree wells on Main St Installed 50 new garbage cans in various public spaces throughout the city Started a pilot program for a new Parks Ambassador Program Planted 91 street trees Completed a major irrigation valve manifold rebuild at Amador Valley Community Park Facilities Completed the Library Roof and clerestory window replacement Completed design and started construction of Library LED Light Conversion Competed the Alviso Adobe south wall reconstruction Completed the City Council Chamber renovation and Technology Upgrade Completed the New Division Remodeling at Police Department Completed the Fleet Division roof insulation replacement Completed the Parks Division computer room/training room remodeling Water Issued $19.0 million in Water Revenue Bonds to fund near-term improvements and the groundwater facilities project with Zone 7 Water Agency to address per- and polyfluoroalkyl substances (PFAS) Completed design and started construction of near-term water system improvements funded by the Water Revenue Bonds Completed Annual Water Distribution System Improvements Started the development of the Water System Management Plan Completed the water supply alternatives study Completed the Water Distribution System Capacity Evaluation Completed a multi-year water rate study and associated water rate increases Sewer Completed the sewer capacity evaluation Started the development of the Wastewater System Management Plan Storm Completed four emergency restoration projects from the 2023 winter storms and submitted applications to FEMA for reimbursement Started the design for FEMA grant eligible permanent repairs at: Augustin Bernal culvert and retaining wall, S-14 Sewer Station Electrical Repairs, Oak Tree Farm Outfall, East Vineyard Detention Pond Outfall Started the design for storm drain improvements at Puri Court Started the design for storm drain improvements for Sycamore Creek

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City Governance/Administration Conducted extensive community engagement to assess the viability of a half-cent sales tax measure and developed Measure PP: Pleasanton Essential Services Protection Measure Launched a citywide disaster preparedness training program and centralized Emergency Management functions in the City Manager’s Office Strengthened cybersecurity resilience to mitigate risks Began implementation of the City’s Diversity, Equity, Inclusion and Belonging (DEIB) Action Plan Completed Year 1 of implementation of the first citywide 5-year strategic plan, ONE Pleasanton Advanced the Waste and Recycling Program; received approval of a cost-based garbage rate adjustment to include a vehicle impact fee generating new funding for City streets Developed and launched a new City website with a user-friendly digital experience to enhance accessibility and functionality for the public Implemented the structure of the new Public Works Department Developed and conducted the inaugural City-hosted Pleasanton Community Academy Public Safety Brought back the Fire Safety Expo educational event with record attendance Livermore-Pleasanton Fire Department (LPFD) increased communication with the community via newsletter, website and social media Conducted critical infrastructure risk assessments and information sharing through Pleasanton Police Department’s (PPD) Threat Assessment Unit Improved PPD’s efficiency by implementing an automated license plate reader (ALPR) program Community and Economic Development Continued implementation of the 2023-2031 Housing Element including enactment of Zoning and Municipal Code Amendments, creating a pre-approved ADU program, and advancing planning and entitlement of numerous residential development projects Advanced efforts towards master planning for Stoneridge Mall, working collaboratively with the ownership group to seek agreements on a master plan process Updated the Five-Year Economic Development Strategic Plan, and began implementation of year one priorities to sustain Pleasanton’s economic health Made significant progress on the adoption of updated Development Impact and Affordable Housing Fees, with adoption expected in FY 2024/25 Advanced comprehensive amendments to the City’s Inclusionary Zoning Ordinance, with adoption expected in FY 2024/25 Library and Recreation Refined the design of a new mobile Library and Recreation vehicle to serve the community in various locations (partially funded by a grant from the California State Library and estimated to launch in FY 2024/25) Updated and/or eliminated outdated agreements between the City and Pleasanton Unified School District to better define responsibilities for each agency, including financial responsibilities

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Long Term Financial Policies and Planning The City’s financial policies place an emphasis on building reserves to: Reduce the risk of financial impacts resulting from natural disasters or other catastrophic events Respond to the challenges of a changing economic environment, including prolonged downturns in the local, state, or national economy Demonstrate continued prudent fiscal management and creditworthiness Ensure the City can fund capital projects without relying on issuing debt Consistent with the City Council policy adopted in June 2023, the City maintains a reserve at least equal to 16.7 percent of operating expenditures in the General Fund1, totaling $33.9 million (including unrealized investment gain) as of June 30, 2024. This meets the General Fund’s 20.0 percent reserve target. The City also established a Rainy Day Reserve for $6.6 million, a restricted Pension Reserve for $19.5 million (details below) and other program reserves for $1.5 million. These unrestricted and restricted reserves total $62.0 million. While the General Fund reserves are adequate, the long-term financial forecast indicates that expenditure growth is outpacing revenue. The City needs additional resources to sustain services and programs and maintain aging community assets. Measure PP, a half-cent sales tax placed on the November 2024 ballot, did not pass. The City continues to face financial challenges without new revenue sources, which must be addressed through cost/service reductions until new revenue options are identified. Pension Pre-funding and Section 115 Pension Trust Fund Over the years, the City has implemented proactive measures to fund its pension obligation, including one-time lump sum payments to CalPERS and the establishment of a Pension Trust. Through June 30, 2024, the City has allocated a total of $27.3 million to prefund pension related liabilities directly to CalPERS. In addition, in March 2018, the City established a Section 115 Pension Trust fund (Trust Fund) with PARS with an initial contribution of $28.0 million in June 2018 and subsequent contributions of $10.0 million in FY 2019/20 for a total of $38.0 million. Of the $38.0 million, $16.7 million was deposited into the PARS Conservative Portfolio and the balance into the PARS Capital Growth Custom Portfolio. The City’s objective is to ensure there will be sufficient funds in the PARS Trust to meet the City’s expected increased pension contributions associated with the City’s unfunded pension liability and fully fund the liability over time. The PARS Conservative Portfolio is included in the General Fund Restricted Reserves shown on page 109 of the ACFR. The PARS Capital Growth Custom Portfolio is reflected in the PARS Section 115 Pension Trust Fund shown on page 235 of the ACFR. The total fair value as of June 30, 2024, of the City’s Trust Fund is $51.1 million: $19.5 million in the PARS Conservative Portfolio and $31.6 million in the PARS Capital Growth Custom Portfolio. The City Council adopted the following Section 115 Pension Trust Withdrawal Policy Guidelines to help ensure there are monies available to help the City make pension contributions when necessary: 1 In June 2023, the City Council adopted an updated reserve policy that requires the General Fund to maintain minimum reserves equal to 16.7 percent of operating expenditures and target reserves equal to 20.0 percent of operating expenditures. In addition, the City’s reserve policy for Water and Sewer funds requires reserves equal to 30.0 percent of operating expenditures, target reserves of 35.0 percent and maximum reserves of 40.0 percent.

a. Annual CalPERS employer pension contribution rate increase (in dollars) is greater than the growthrate (in dollars) of the City’s General Fund.Example: the pension contribution increases by $2.0 million from the previous year whileGeneral Fund growth is $1.5 million.b. The General Fund has a structural deficit that needs to be addressed (i.e., non-discretionaryexpenditures exceed revenues).c. General Fund reserves have been used and need to be replenished in order to maintain a reserveequal to 20.0 percent of General Fund expenditures.d. Paying off specific pension liabilities that will result in interest savings greater than interestearnings on the Trust Fund.These prefunding contributions and the establishment of the Section 115 Pension Trust Fund demonstratethe City’s commitment to address its pension related liabilities.Awards The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Pleasanton for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2023. This was the twenty-seventhconsecutive year the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized ACFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that this current ACFR continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for a certificate.AcknowledgmentsThe preparation of the ACFR was made possible through the dedicated work of all members of the Finance Department. We would like to extend special thanks and acknowledgment to Diane Punzo who wasprimarily responsible for managing the year-end closing of the City’s books and preparing the ACFR. Other contributing staff include Christina Crosby, Dawn DeMarcus, Michael Lee, Erika Newsome, Erica Shima,Tam Thai, Cindy Wei, Chris Yi, and Raquel Zegarra. The City Council is also acknowledged and thanked for its leadership and commitment to ensuring the long-term fiscal health of the City.Respectfully submitted,Susan Hsieh Gerry Beaudin Director of Finance City Manager xiv

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MayorKarla Brown
Vice MayorJulie Testa
Council Member
Council MemberJack BalchCouncil MemberValerie Arkin
City ManagerGerry Beaudin
City AttorneyDaniel Sodergren
Director of FinanceSusan Hsieh
Assistant City ManagerPamela OttDirector of Community DevelopmentEllen Clark Director of Library & RecreationHeidi Murphy
Director of Human Resources & Labor RelationsXaviera ScogginsDirector of Information TechnologyAllen Hammond Director of Public WorksSiew-Chin Yeong
Fire ChiefJoe TestaCity ClerkJocelyn Kwong
ELECTED OFFICIALS:ADMINISTRATIVE PERSONNEL*:

Deputy City Manager
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CITIZENSMAYOR & CITY COUNCILCITY MANAGER CITY ATTORNEY
COMMUNITY DEVELOPMENTDevelops and updates the General engineering standards.ECONOMIC DEVELOPMENTnetwork of companies in the city.FINANCEand investment activities of the City.HUMAN RESOURCESWorks to attract and retain a highly workforce.FIREand hazardous materials. INFORMATION TECHNOLOGYProvides support for all City computerPUBLIC WORKSPOLICEcontinuous patrol around Pleasanton. • COMMITTEE• • • • • • • •
CITY CLERKincluding overseeing regular and special meetings and elections. LIBRARY & RECREATIONProvides access to services that meet the informational and educational needs of the community. xvii

INDEPENDENT AUDITORS’ REPORT To the Honorable Mayor and the Members of the City Council of the City of Pleasanton Pleasanton, 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 Pleasanton, California (the “City”), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, 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 (“Government Auditing Standards”). Our responsibilities under those standards are further described in the Auditors' 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. Emphasis of Matters Error Corrections As discussed in Note 15, Changes to or within the Financial Reporting Entity and Error Corrections to the Basic Financial Statements, the City had error corrections recorded during the year ended June 30, 2024. Our opinion is not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of 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.

To the Honorable Mayor and the Members of the City Council of the City of Pleasanton Pleasanton, California Page 2 2 Auditors’ Responsibility 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 auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: exercise professional judgment and maintain professional skepticism throughout the audit. identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Budgetary Comparison Schedules, the Schedules of Changes in Net Pension Liability and Related Ratios, the Schedule of City’s Proportionate Share of the Net Pension Liability and Related Ratios, the Schedules of Contributions – Pensions, the Schedules of Changes in Net Other Postemployment Benefits Liability and Related Ratios, and the Schedules of Contributions – Other Postemployment Benefits be presented to supplement the basic financial statements. Such information is the responsibility of the 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 GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

To the Honorable Mayor and the Members of the City Council of the City of Pleasanton Pleasanton, California Page 3 3 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Combining and Individual Fund Financial Statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the Combining and Individual Fund Financial Statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the Introductory and Statistical Sections but does not include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 3, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Santa Ana, California February 3, 2025

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City of Pleasanton Management’s Discussion and Analysis (Unaudited) For the Year Ended June 30, 2024 5 This section of the City of Pleasanton’s (“City”) Annual Comprehensive Financial Report presents a narrative overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2024 (FY 2023/24). We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal and the City’s basic financial statements, which follows this section. FINANCIAL HIGHLIGHTS The City’s total net position increased by $12.1 million in FY 2023/24 of which $16.1 million is governmental activities, primarily due to revenues exceeding expense offset by a decrease of $4.0 million in business-type activities, primarily due to increased expenses in the Water, Sewer and Golf Funds. Property tax revenues, the largest revenue source for the General Fund, increased by $4.2 million from the prior fiscal year, or 4.8 percent, and sales tax revenues, the second largest revenue source for the General Fund, decreased by $1.6 million, or 6.1 percent, largely due to several sales tax categories, including autos and transportation and general consumer goods, which did not perform as expected. The City’s governmental funds reported ending fund balances of $188.6 million, an increase of $21.1 million from FY 2022/23 to FY 2023/24 as revenues exceeded expenditures and prior period adjustments recorded. This is due to the City’s conservative financial planning and cost savings strategies implemented during the year. Certain revenues collected in FY 2023/24 will be used to support projects in future fiscal years. In addition, the City recorded the prior period adjustments due to reclassifying the unavailable revenue to fund balance and uncollectible amounts recorded. The General Fund’s fund balance at fiscal year-end was $62.0 million, of which $33.9 million is unassigned, $19.5 million is restricted for the PARS Section 115 Pension Trust Fund, $8.1 million is committed for the COVID Response and Recovery Program, the Mobile Outreach Vehicle Program, the Strategic Plan Implementation, and the Emergency and Rainy Day Reserves, and $0.5 million is nonspendable. The $62.0 million fund balance is a $4.7 million increase over the fund balance at the end of FY2022/23. OVERVIEW OF THE FINANCIAL STATEMENTS The financial section of this report consists of four parts – the Independent Auditors’ Report, Management’s Discussion and Analysis (this portion), the basic financial statements, including the required supplementary information, and other supplemental information. The basic financial statements include two kinds of statements that present different views of the City as described below: The Government-wide financial statements provide both long-term and short-term information about the City’s overall financial status. The Fund financial statements focus on individual parts of the City government, reporting the City’s operations in more detail than the government-wide statements. Governmental fund statements report how general government services such as police, fire and public works were financed in the short term, as well as what remains for future spending. Proprietary fund statements offer short and long-term financial information about the activities the City operates like businesses, such as water and sewer services. Fiduciary fund statements provide information about the financial relationships in which the City acts solely as a trustee or custodian for the benefit of others to whom the resources belong.

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 6 The financial statements also include Notes to Basic Financial Statements that explain some of the information in the financial statements and provide more detailed data. The City uses notes to present information in greater detail than is possible within the financial statements themselves, explain the nature of amounts reported in the financial statements, and how those amounts were determined, and report certain information that does not meet the requirements for inclusion in the financial statements (such as certain contingencies). The notes are followed by required supplementary information that consists of major governmental fund budgetary comparison schedules and schedules of changes in net liabilities and related ratios, and contributions on the City’s pension and retiree healthcare plans. After these required elements, we have included supplemental information consisting of combining statements that provide details about our nonmajor governmental funds, nonmajor enterprise funds, internal service funds and custodial funds. The government-wide financial statements and the fund financial statements present different views of the City, as further described below. Government-wide Financial Statements are designed to provide readers with a broad overview of City finances, in a manner similar to a private-sector business. The government-wide financial statements include the City (primary government) and the Housing Authority of the City of Pleasanton (Housing Authority) as a component unit. The City Council serves as the Board for the Housing Authority. Financial information for the Housing Authority is blended with the City’s financial information. Although it is a legally separate entity, in substance, the Housing Authority is a part of the City’s operations. The Statement of Net Position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as an indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City’s net position changed during the current fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows (accrual basis of accounting). Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes and expenses pertaining to interest on long-term debt. Both government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a substantial portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, community development, public works, and community activities (parks, recreation, and library). The business-type activities of the City include water, sewer, golf, storm drain, transit, and cemetery, as well as the Housing Authority as a component unit. Fund Financial Statements use fund accounting to segregate accounts for specific activities or objectives, including demonstrating finance-related legal compliance. All the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds, as described below. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental funds financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 7 The governmental funds focus is narrower than that of the government-wide financial statements. It is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. This comparison facilitates a better understanding of the long-term impact associated with the government’s near-term financing decisions. The governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains several individual governmental funds organized according to their type (general, special revenue, and capital projects). Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the major funds (see Notes to Basic Financial Statements). Data from the remaining nonmajor governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided as supplementary information in the form of combining statements. Proprietary funds are generally used to account for services for which the City charges customers – either outside customers or internal units of departments in the City. Proprietary funds provide the same type of information as shown in the government-wide financial statements, only in more detail. The City maintains two types of proprietary funds, enterprise funds and internal service funds, as described below. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for water, sewer, golf, storm drain, transit, cemetery, and the Housing Authority. Internal service funds are used by the City to establish reserves and account for employee benefits, public art acquisition and maintenance, replacement/renovation, liability insurance, retiree medical benefits, PARS Section 115 Trust Fund, and city enhancements. These funds serve both governmental and business-type functions, and they are allocated accordingly in the government-wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided as supplementary information in the form of combining statements. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Since the resources of these funds are not available to support the City’s own programs, they are not reflected in the government-wide financial statements. Notes to Basic Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Required Supplementary Information includes budgetary comparison schedules that have been provided for the major governmental funds to demonstrate compliance with the budget. The City adopts a two-year budget in June of every odd-numbered year. An update of the second year is presented to the City Council in June preceding the start of the second year (even-numbered year). Required supplementary information also includes schedules of changes in net liabilities and related ratios and on contributions on the City’s pension and retiree healthcare plans. The City participates in California’s Public Employees Retirement System (CalPERS) for its pension plan and provides its employees with post-retirement health care benefits (OPEB). Supplementary Information includes information for nonmajor governmental, nonmajor enterprise, internal service, and custodial funds, and is presented immediately following the required supplementary information.

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 8 GOVERNMENT-WIDE FINANCIAL ANALYSIS The following section provides a comparative analysis of government-wide data for FY 2022/23 and FY 2023/24. The Statement of Net Position for the two years will be discussed first, followed by a discussion of the Changes in Net Position for the two years. The following table is a summary of the Statement of Net Position as of June 30, 2023 (2023) and June 30, 2024 (2024): City of Pleasanton Net Position (in millions of dollars) Governmental Business-typeActivities Activities Total Assets:2023 2024 2023 2024 2023 2024Current and other assets 269.2$ 279.8$ 61.0$ 76.8$ 330.2$ 356.6$ 8.0%Noncurrent assets 518.0 517.2 176.6 175.9 694.6 693.1 -0.2%Total assets787.2 797.0 237.6 252.7 1,024.8 1,049.7 2.4%Deferred outflows of resources61.8 62.9 4.4 4.5 66.2 67.4 1.8%Liabilities:Other liabilities 17.1 22.3 12.4 14.8 29.5 37.1 25.8%Long-term liabilities 221.3 239.5 25.2 43.0 246.5 282.5 14.6%Total liabilities238.4 261.8 37.6 57.8 276.0 319.6 15.8%Deferred inflows of resources25.2 17.0 1.4 0.8 26.6 17.8 -33.1%Net Position:Net investment in capital assets 510.2 500.9 146.5 143.5 656.7 644.4 -1.9%Restricted 117.3 132.2 1.1 1.1 118.4 133.3 12.6%Unrestricted (42.2) (52.0) 55.3 54.1 13.1 2.1 -84.0%Total net position585.3$ 581.1$ 202.9$ 198.7$ 788.2$ 779.8$ TotalPercentageChange2023 to 2024

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 9 Analysis of Net Position – With the consolidation of government-wide net position into one statement and the exclusion of fiduciary funds, net position serves as a useful indicator of a government’s financial position. For the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $779.8 million at the close of FY 2023/24. The City reported positive balances in net investment in capital assets and in restricted net position for both governmental and business-type activities. Governmental activities concluded the fiscal year with a negative unrestricted net position due primarily to its share of pension and OPEB liabilities, and business-type activities reported a positive unrestricted net position at year-end. The following are the primary components of the City’s net position: The net investment in capital assets (e.g., infrastructure, land, buildings, improvements other than buildings, construction in progress, equipment, and subscriptions), less any related debt used to acquire assets still outstanding, is $644.4 million (82.6 percent of the total). The City uses these capital assets to provide services to the community; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since capital assets are generally not used to liquidate these liabilities. The restricted net position of $133.3 million (17.1 percent of the total) represents resources that are subject to external restrictions on how they may be used. Among these amounts are $55.8 million restricted in the capital project funds for the construction of major capital projects (including improvements to streets, bridges, and bicycle and pedestrian trails, and park improvements; $51.1 million restricted for pension funding in the PARS Section 115 Pension Trust; $19.7 million restricted for community development projects of which $18.2 million was related to housing related projects; $5.5 million restricted in a variety of special revenue funds to support specific City programs; $0.6 million restricted for transportation programs; $0.5 million restricted for debt service; and the balance of $0.2 million is restricted for public safety. The unrestricted net position of $2.1 million (0.3 percent of the total) reflects the City’s net pension and OPEB liabilities of $178.9 million and $19.0 million, respectively. It also includes the City’s share of Livermore-Pleasanton Fire Department’s (LPFD) net deficit of $41.0 million (also reflecting LPFD’s pension and OPEB liabilities), which is offset by various reserves including amounts set aside for future capital improvements in the capital projects funds, and reserves held in internal service funds to pay for retiree medical expenses, general liability claims, and repair and replacement of City facilities and equipment. Governmental activities account for the negative $52.0 million of the unrestricted net position. Business-type activities account for $54.1 million, the majority of which is held in the utility funds for future capital projects and emergency repairs and replacement.

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 10 The following table reflects the change in net position for governmental and business-type activities for the year ended June 30, 2024: City of Pleasanton Changes in Net Position (in millions of dollars) Governmental Business-typeActivities Activities Total Total %2023 2024 2023 2024 2023 2024ChangeRevenues:Program revenues: Charges for services 15.6$ 14.8$ 50.4$ 57.0$ 66.0$ 71.8$ 8.7% Operating grants & contributions 7.4 13.6 0.8 2.0 8.2 15.6 90.8% Capital grants & contributions 11.0 13.7 - 0.9 11.0 14.5 32.2%General revenues: Property taxes 86.1 90.2 - - 86.1 90.2 4.8% Sales taxes 26.2 24.6 - - 26.2 24.6 -6.1% All other taxes 14.9 15.4 - - 14.9 15.4 3.4% All other general revenues 4.7 10.5 2.0 3.6 6.7 14.1 109.7% Total revenues 165.9 182.8 53.2 63.5 219.1 246.3 12.4%Expenses: General government 21.6 26.5 - - 21.6 26.5 22.5% Public safety 52.9 65.7 - - 52.9 65.7 24.1% Community development 20.0 13.9 - - 20.0 13.9 -30.5% Public works 31.2 39.5 - - 31.2 39.5 26.6% Community activities 16.2 18.1 - - 16.2 18.1 12.0% Interest on long-term debt - 0.3 - - - 0.3 921.3% Water - - 34.2 39.7 34.2 39.7 16.2% Sewer - - 19.4 19.8 19.4 19.8 2.3% Golf - - 6.2 7.1 6.2 7.1 14.5% Storm Dain - - 2.7 2.7 2.7 2.7 0.0% Transit - - 0.5 0.6 0.5 0.6 10.0% Cemetery - - 0.4 0.3 0.4 0.3 -15.0% Total expenses 141.9 164.0 63.5 70.3 205.3 234.2 14.1%Revenues over (under) expenses 24.0 18.9 (10.2) (6.7) 13.8 12.1 -12.9%Transfer In/(Out) (1.7) (2.8) 1.7 2.8 - - 0.0%Change in net position 22.3 16.1 (8.5) (3.9) 13.8 12.1 -12.9%Beginning of year, as previously presented as of June 30, 2023 563.0 585.3 211.4 202.9 774.4 788.2 1.8%Error corrections - (20.3) - (0.2) - (20.5) Beginning of year, as restated (Note 15) - 565.0 - 202.6 - 767.7 Net position, end of year 585.3$ 581.1$ 202.9$ 198.7$ 788.2$ 779.8$ -1.1%

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 11 Changes in Net Position Governmental activities increased by $4.2 million over the prior fiscal year including the prior period adjustment impact. Net position increased by $16.1 million in FY 2023/24, as a result of revenues exceeding expenses and net transfers, and was offset by a $(20.3) million restatement in beginning net position. The restatement was mainly due to a $19.9 million increase in allowance for uncollectible loan amounts, mainly related to housing loans, causing a reduction in loan receivables. The City performed an analysis of loan balances and determined that due to the contingent nature of some of the loan repayments, they were better reflected as uncollectible amounts. If at a later date, the loan amounts are repaid, the City will recognize the revenue at that time. Restatements also included $0.3 million for write-off of loan interest receivable and $0.1 million for finance purchase corrections which involved capital assets and vehicle financed-purchased liabilities (See Note 15). The large variance changes in governmental functions was due to the citywide restructuring of departments effective FY 2023/24. The Engineering Department was moved from Community Development and combined with the Operations Services Department to become the new Public Works Department, housing and housing related funds moved from General Government to Community Development, and economic development and business license moved from Community Development to General Government. Total governmental activities revenues increased by $16.9 million over FY 2022/23. Program Revenues - $8.1 million increased Charges for services decreased by $0.8 million primarily due to a $1.9 million decrease in Community Development plan check fees and building permit issuances ($1.3 million combined) and inspection fees ($0.2 million). This decrease was offset with increases of $0.5 million in both Community Activities and Public Works. Sports camps increased by $0.1 million, aquatic sales increased by $0.1 million, and specialty classes, theatre sales and camps increased $0.2 million collectively. The increase in Public Works is primarily due to interfund charges for vehicle and equipment maintenance for Water, Sewer and Urban Runoff operations. Operating grants and contributions increased by $6.2 million over the prior fiscal year. This was mainly due to $4.6 million of grant funding from the Alameda County Transportation Commission for the Stoneridge at I-680 Interchange Improvements Project. The City also received $0.9 million from a 35-gallon Residential Cart Migration Liability Account, previously held by Pleasanton Garbage Services, Inc., for waste and recycling related expenses. Both increases were related to Public Works. Additional increases include $0.6 million in State of California Department of Housing and Community Development Permanent Local Housing Allocation Program funding, $0.5 million in environmental review reimbursements from developers, and $0.2 million in state grants. These increases were offset by a $2.6 million decrease in General Government, mainly attributable to $4.3 million of one-time Federal stimulus funding from the American Rescue Plan Act of 2021 in FY 2022/23, that is no longer available. Capital grants and contributions increased by $2.7 million over the prior fiscal year. Increases consisted of $0.6 million in impact fees ($0.8 million in public facilities fees, offset by a $0.2 million decrease in traffic impact fees), $0.5 million in developer contributions, which consisted of work related to the Rosewood Commons Property, $0.3 million in Road Maintenance and Rehabilitation, and $0.2 million in Gas Tax. General Revenues - $8.9 million increase Property tax increased by $4.2 million in FY 2023/24 primarily due to the increase in assessed property values attributed to the continued demand for housing, additional housing units, and commercial development. Sales tax decreased by $1.6 million in FY 2023/24 primarily due to several sales tax categories, including autos and transportation and general consumer goods, which did not perform well.

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 12 All other taxes increased by $0.5 million mainly due to increases in transient occupancy tax of $0.3 million and franchise tax of $0.1 million, and other taxes of $0.2 million which were offset by a decrease of $0.1 million in business licenses tax revenue. The economic growth in FY 2023/24 helped the hospitality industry to recover as more people continue to visit and dine out in the region. All other general revenues increased by $5.8 million mostly due to a $7.2 million unrealized gain in market value change to the City’s investments, which was offset by a $1.3 million decrease in miscellaneous revenues and of $0.1 million decrease on sale of capital assets. The City’s governmental activities expenses increased by $22.1 million in FY2023/24. Expenses increased in salary and benefits ($7.8 million), materials, supplies, and services ($7.4 million), capital outlay ($0.3 million), and interest on long-term debt ($0.2 million), and debt service ($0.6 million). Increases were offset by decreases in transportation and training ($1.1 million), repairs and maintenance ($0.2 million), and capital outlay ($0.3 million). Business-type activities net position decreased by $3.9 million in FY 2023/24. There was also a $(0.2) million restatement in beginning net position due to finance purchase corrections which involved capital assets and vehicle financed-purchase liabilities (See Note 15). The City’s business-type activities provide the same type of information as the proprietary fund financial statements but are presented in a more summarized format. Key changes in the business-type activities are as follows: Overall program revenues increased $8.7 million due to a $5.0 million increase in water sales, $1.2 million increase in sewer service revenues, and $1.2 million increase in sewer operating grants and contributions. Total business type activity expenses increased by $6.8 million compared to the prior fiscal year. This increase consists of $5.5 million in Water, $0.4 million in Sewer, and $0.9 million in Golf. Personnel expenses decreased by $1.5 million, most notably in Water ($0.7 million), and Sewer ($0.9 million). Materials supplies and services increased by $5.9 million, primarily in water ($4.8 million), and sewer ($0.9 million) both represent increased costs associated with water purchases from Zone 7 and sewer service fees for DSRSD. All other categories remained relatively consistent. An analysis of key changes at the governmental funds level and proprietary funds level is provided in the following Fund Financial Analysis section. FUND FINANCIAL ANALYSIS The City uses fund accounting to segregate accounts for specific activities or objectives, including demonstrating finance-related legal compliance. Governmental Funds The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of resources that are available to fund services and capital project construction.

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 13 Fund Balances In June 2023, the City Council adopted a reserve policy that requires the General Fund to maintain reserves between 16.7 percent and 25.0 percent of operating expenditures with target reserves equal to 20.0 percent. Should unforeseen and unavoidable events occur that require the expenditure of City resources beyond those provided for in the annual budget, the City Council must approve by Resolution any appropriations from unassigned fund balance. Details of the fund balance classifications are disclosed in Note 11 in the Notes to Basic Financial Statements. As of June 30, 2024, the City’s governmental funds reported combined fund balances of $188.6 million, an increase of $21.1 million in comparison with FY 2022/23 including the prior period adjustment impacts. There was also a $6.1 million restatement in fund balance due to loan related adjustments for presentation purposes in the financial statements in accordance with the Generally Accepted Accounting Principles in the United States of America (GAAP) (See Note 15). Revenues increased overall by $13.9 million during the fiscal year. Multiple factors contributed to the increase. Property tax revenues, the City’s largest General Fund revenue source, accounting for 51.1 percent of total revenues, increased by $4.2 million. Actual property tax collections were greater than anticipated. Sales tax revenue is the second largest revenue source for the General Fund, accounting for 13.9 percent of total revenues, decreased by $1.6 million. Sectors including Restaurants and Hotels, Business and Industry, State and County Pools, and Food and Drugs performed better than the prior fiscal year. However, Autos and Transportation, General Consumer Goods, and Fuel and Service Stations did not perform as well. Other taxes slightly decreased by $0.2 million, primarily due to the reclassification of public safety-related sales tax from other tax to sales tax. The decrease was partially offset by the increase in hotel tax revenue. License and permits increased $0.3 million due to fire permit fees ($0.2 million) and encroachment permit fees ($0.1 million). Intergovernmental revenues increased overall by $1.5 million. This is mainly due to a decrease in the General Fund by $3.8 million, due to ARPA funding ($4.3 million) that was received in FY 2022/23 and not in FY 2023/24. The decrease was offset by a $0.7 million increase due to Tobacco Grants ($0.2 million), and State reimbursement for LPFD Fire Services ($0.2 million). Miscellaneous Grant intergovernmental revenues increased $4.9 million, primarily due to funding received for the Stoneridge at I-680 Interchange Improvements Project ($4.6 million). It should be noted that the use of money and property revenues, which consist of interest income, as well as any unrealized investment gains or losses, went from negative $1.0 million in FY 2022/23 to positive $9.5 million in FY 2023/24 based on improved stock market conditions. While the overall governmental expenditures for the year increased $11.6 million over the prior fiscal year, revenues exceeding expenditures contributed to the increase in fund balances. Expenditures for general government, public safety, public works, and community activities increased by $5.9 million, $6.8 million, $7.5 million, $1.2 million, respectively. These changes can be largely attributed to the increase of City’s personnel costs increased by $7.8 million due to cost-of-living adjustments, as well as some salary adjustments based on performance evaluations and new labor agreements. Expenditures decreased $7.6 million in community development and $2.7 million in capital outlay over the prior fiscal year . Restricted fund balances constitute $100.1 million of the combined governmental fund balance and are constrained for a specific purpose by external parties, constitutional provision, or enabling legislation: for example, low-income housing projects, projects funded by park development fees, and street projects funded by Gas Tax, Measure BB sales tax and Measure F vehicle registration fees. Committed fund balances of $14.2 million represent amounts constrained for a specific purpose by the government entity and designated as such by its highest level of decision- making authority, which is City Council. Assigned fund balances of $39.9 million represent funds to be used for City funded capital projects that have not been specifically identified or constrained by City Council. Unassigned fund balances of $33.9 million consist of amounts that City officials have not classified as non-spendable, restricted, committed, or assigned. Non-spendable fund balances of $0.5 million represent advances to other funds.

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 14 The following table presents the Governmental Funds’ fund balances by classification as of June 30, 2024: MiscellaneousCapital NonmajorGeneral Lower Income Miscellaneous Improvement GovernmentalGASB 54 Fund Balances: Fund Housing Fund Grants Fund Programs Fund Funds TotalNonspendable:Notes Receivable, Advances to Other Funds 500,000$ -$ -$ -$ -$ 500,000$ Total Nonspendable 500,000 - - - - 500,000 Restricted:Accessibility Programs - - - - 133,382 133,382Assessment District Construction - - - - 1,108,578 1,108,578 Asset Forfeiture - - - - 29,173 29,173 Budgeted Developer Projects - - - - 7,660,480 7,660,480 Community Access Television - - - - 1,536,494 1,536,494 Community Development Block Grants - - - - 522,386 522,386 Geological Hazard Assessment Districts - - - - 1,389,419 1,389,419 Grants - - 1,297,977 - - 1,297,977 Housing - 17,438,063 - - 752,894 18,190,957 Johnson Drive Economic Development Zone - - - - 982,163 982,163 Landscape and Lighting Districts - - - - 435,867 435,867 Landscape Maintenance NPID - - - - 1,090,873 1,090,873 Library Trust - - - - 59,325 59,325 Marilyn Kane Trail Reserve - - - - 115,066 115,066 Miscellaneous Donations/Developer Contributions - - - - 1,512,463 1,512,463 Opioid Settlements - - - - 116,657 116,657 Park Development - - - - 8,885,580 8,885,580 PARS Section 115 Pension Trust 19,474,282 - - - - 19,474,282 Public Facilities Capital Improvements - - - - 1,993,968 1,993,968 Public Safety - - - - 135,695 135,695 Resource Management - - - - 540,708 540,708 Street Maintenance - - - - 19,290,245 19,290,245 Traffic Impact - - - - 10,397,977 10,397,977 Tri-Valley Transportation - - - - 2,307,651 2,307,651 Various Specific Plans - - - - 844,015 844,015 Total Restricted 19,474,282 17,438,063 1,297,977 - 61,841,059 100,051,381 Committed:COVID Response and Recovery Program Reserve 319,150 - - - - 319,150 Mobile Outreach Vehicle Program Reserve 280,000 - - - - 280,000 Strategic Plan Implementation Reserve 379,428 - - - - 379,428 Emergency Reserve 500,000 - - - - 500,000 Rainy Day Reserve 6,620,550 - - - - 6,620,550 Business Support Program - - - - 2,412,387 2,412,387 Downtown and North Pleasanton - - - - 3,712,832 3,712,832 Total Commited 8,099,128 - - - 6,125,219 14,224,347 Assigned:Capital Projects - - - 27,796,322 11,410,255 39,206,577 Other Purposes - - - - 738,930 738,930 Total Assigned - - - 27,796,322 12,149,185 39,945,507 Unassigned:Total Unassigned 33,881,954 - - - - 33,881,954 Total Fund Balances 61,955,364$ 17,438,063$ 1,297,977$ 27,796,322$ 80,115,463$ 188,603,189$

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 15 Revenues The following table presents the FY 2023/24 revenues from various sources, as well as the increase or decrease in these revenues over FY 2022/23. City of PleasantonRevenues Classified by S ourceGovernmental Funds(in millions of dollars)FY 2023 FY 2024 Increase/(Decrease)Revenues by Source Amount % of Total Amount % of Total Amount PercentProperty taxes & special assessments 86.3$ 52.9% 90.5$ 51.10% 4.2$ 4.8%Sales taxes 26.2 16.0% 24.6 13.90% (1.6) -6.1%Other taxes 12.2 7.5% 12.0 6.80% (0.2) -1.6%Licenses and permits 3.6 2.2% 3.9 2.20% 0.3 8.3%Fines and forfeitures 0.2 0.1% 0.2 0.10% - 0.0%Use of money & property (1.0) -0.6% 9.5 5.30% 10.5 1050.0%Intergovernmental 12.9 7.9% 14.4 8.10% 1.5 11.6%Franchises 3.3 2.0% 3.4 1.90% 0.1 3.0%Fees & other charges9.0 5.6% 6.0 3.40% (3.0) -33.3%Other 10.5 6.4% 12.7 7.20% 2.2 21.0% Total 163.3$ 99.9% 177.2$ 100.00% 13.9$ 8.5%

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 16 The following provides an explanation of significant changes in revenues by source in FY 2023/24. Property taxes and special assessments increased by $4.2 million (4.8 percent) due to market fluctuations related to property sales and/or completed new construction, as well as increased property value assessments. Secured and Unsecured Property taxes increased by $4.4 million, while other categories of property tax, including supplemental and delinquent tax decreased by $0.3 million. Property tax revenues account for approximately 59.5 percent of total General Fund revenues, and 51.1 percent of all governmental funds. Sales taxes decreased by $1.6 million (6.1 percent) in FY 2023/24. Sales in the Autos and Transportation, General Consumer Goods, and Fuel and Service Stations categories decreased due to high interest rates, changes in consumer spending patterns, and decreases in fuel prices. Other taxes decreased by $0.2 million (1.6 percent) during FY 2023/2024 when compared to FY 2022/2023. Part of the decrease is due to the half-percent sales tax for public safety being recategorized as sales tax in FY 2023/2024, rather than in other taxes as previously presented. Other tax categories, such as hotel tax and document transfer tax increased by $0.6 million but were offset by the decrease in business tax. Licenses and permits increased by $0.3 million (8.3 percent) primarily due to a $0.2 million increase in annual fire permit fees, related to annual inspections conducted by the Fire Department, and a $0.1 million increase in encroachment permits. Encroachment permit fees fluctuate from year to year and are dependent on construction projects. Fire Department inspection fees are based on business types, which can also fluctuate year to year. Use of money and property increased by $10.5 million (1050.0 percent) mainly due to an unrealized investment gain from the City’s investment portfolio. Due to market volatility, the fair market value adjustments for FY 2023/24 remained significant. Intergovernmental increased by $1.5 million (11.6 percent) mainly due to $4.6 million in grant proceeds from the Alameda County Transportation Commission (ACTC) for the Stoneridge at I-680 Interchange Improvements Project and $0.6 million in State of California Department of Housing and Community Development Permanent Local Housing Allocation Program funding. The increases were primarily offset with a net decrease in Federal funding ($4.2 million), mainly due to receipt in FY 2022/23 of the final $4.3 million of Federal stimulus funding through the American Rescue Plan Act of 2021. Fees and other charges decreased by $ 3.0 million (33.3 percent) primarily due to a $1.6 million decrease in development fees, a $1.2 million decrease in plan check fees, and a $0.2 million decrease in charges for services. Both development and plan check fees are directly impacted by market fluctuations and construction activity. Consistent with sales tax trends, the increase of building material costs led to decreased material sales and reduced contractor activity.

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 17 Expenditures The following table presents expenditures by function in FY 2023/24 and the increase and decrease in expenditures as compared to FY 2022/23. City of PleasantonExpenditures Classified by FunctionGovernmental Funds(in millions of dollars)Increase/(Decrease)Expenditures by Function Amount % of Total Amount % of Total Amount PercentCurrent:General government 20.0$ 13.3% 25.9$ 15.9% 5.9$ 29.2%Public safety 57.4 38.0% 64.2 39.5% 6.8 11.8%Community development 19.1 12.6% 11.5 7.1% (7.6) -39.8%Public works 22.8 15.1% 30.3 18.6% 7.5 32.9%Community activities 15.0 9.9% 16.2 10.0% 1.2 8.0%Capital outlay 16.0 10.6% 13.3 8.2% (2.7) -16.9%Debt servicePrincipal and interest 0.7 0.5% 1.2 0.7% 0.5 71.4% Total 151.0$ 100.0% 162.6$ 100.0% 11.6$ 7.6%FY 2023 FY 2024

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 18 The following provides an explanation of significant changes in expenditures in FY 2023/24. There was a citywide restructuring of departments effective FY 2023/24. The Engineering Department was moved from Community Development and combined with the Operations Services Department to become the new Public Works Department. Additional restructuring included the re-organization of housing and housing related funds from General Government to Community Development, and economic development and business license from Community Development to General Government. This restructuring contributed to some of the large expenditure variances between FY 2022/23 and FY 2023/24. Governmental expenditures increased by 7.6 percent ($11.6 million) from FY 2022/23. Increases from the prior fiscal year occurred in general government, public safety, public works, and community activities while expenditures decreased in community development. General government increased by 29.2 percent ($5.9 million) due to an increase in various professional service contracts ($0.6 million) related to City services such as legal, labor relations and website/marketing services. Salary and benefits also increased ($1.6 million), as well as data processing software costs ($0.3 million) and insurance premiums ($1.8 million). Public safety increased by 11.8 percent ($6.8 million) mainly due to increased salary and benefit expenses ($3.8 million) and LPFD related materials/services ($0.6 million). Public works increased by 32.9 percent ($7.5 million) and is mainly attributable to the merging of Operations Services and Engineering. Increases also occurred in salaries and benefits ($1.2 million), Citywide utility expenses ($0.6 million), professional services ($0.2 million), vehicle repair and replacement ($0.2 million), and interfund expenses ($0.2 million). Community activities increased by 8.0 percent ($1.2 million) mainly due to increases in salary and benefits ($0.8 million) offset with decreases in contract services ($0.1 million). While these increases are notable, expenditures were offset by a decrease of 39.8 percent ($7.6 million) in Community development expenditures mainly due to the citywide restructuring. Other changes included decreases in salary and benefits ($0.5 million), replacement accrual expenditures ($0.8 million), and professional service expenditures ($1.5 million) related to third party plan check fees paid to consultants, which are directly impacted by construction/development activities. Major Governmental Funds The designated major Governmental Funds in FY 2023/24 are the General Fund, the Lower Income Housing Fund, the Miscellaneous Grants Fund, and the Miscellaneous Capital Improvement Programs Fund. The General Fund is the primary operating fund of the City which accounts for most City services, including general government, public safety, community development, public works, parks and community services, and library. The City Council has allocated the City’s General Fund’s fund balance in conformance with GASB Statement No. 54. The City maintains the fund balance consistent with its formal financial policies. In 2023, the City Council adopted an updated reserve policy that requires the General Fund to maintain minimum reserves at least equal to 16.7 percent of operating expenditures and target reserves equal to 20.0 percent of operating expenditures. As of June 30, 2024, General Fund reserves totaled $33.9 million, which slightly exceeds 20.0 percent of the budgeted FY 2024/25 operating expenditures. The General Fund’s fund balance at fiscal year-end was $62.0 million, of which $33.9 million is unassigned, $19.5 million is restricted for the PARS Section 115 Pension Trust Fund, $8.1 million is committed for the COVID Response and Recovery Program, the Mobile Outreach Vehicle Program, the Strategic Plan Implementation, and the Emergency and Rainy Day Reserves, and $0.5 million is non-spendable. The $62.0 million fund balance is a $4.7 million increase over the fund balance at the end of FY 2022/23. Fund balance increased by $4.7 million over the prior fiscal year. At fiscal year-end, revenues totaled $153.6 million, an increase of $3.9 million over the prior fiscal year and expenditures totaled $147.6 million, an increase of $14.1 million over the prior fiscal year.

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 19 Revenue increases were mainly attributable to overall increases of $2.3 million in various categories of taxes, an increase of $5.0 million in use of money and property related to improved market conditions, which includes a $3.0 million unrealized gain in the fair market value of investments. Miscellaneous revenue increased by $1.2 million mainly due to increases of $0.4 million in environmental review reimbursements from developers, $0.5 million in internal service charges, including overhead costs, and $0.3 million of fees collected from recreation and library programs. These increases were offset by a $3.8 million decrease in intergovernmental revenue, mainly due to the receipt of the final $4.3 million of Federal stimulus funding through the American Rescue Plan Act of 2021 in FY 2022/23. There was also a decrease of $1.2 million in plan check fees. This was due to more activities in FY 2022/23 for larger projects such as work with AvalonBay Community, Inc. that brought in $0.7 million in plan check fees and more activities on Johnson Drive relating to the construction of the Costco commercial warehouse that collected over $0.2 million in fees. Expenditures increased by $14.1 million over the prior fiscal year. Personnel costs increased by $7.8 million due to cost-of-living adjustments, as well as some salary adjustments based on performance evaluations and new labor agreements. Transportation and training increased by $0.2 million due to higher fuel costs. Materials, supplies and services increased by $7.4 million primarily due to a $1.8 million increase in insurance charges, and $5.1 million in internal service fund charges. Debt service payments increased by $0.5 million due to an increase in lease payments of $0.3 million and additional subscription-based software service arrangement payments ($0.2 million) over the prior fiscal year. These increases were offset by a decrease of $1.6 million in repairs and maintenance due to reduced repair contract services and a decrease in capital outlay of $0.3 million. The following table summarizes the General Fund’s fund balance allocation, showing the beginning balances, plus changes resulting from FY 2023/24 operations and the resulting ending balances. General Fund Reserves and Fund Balance as of June 30, 2024 BalanceJune 30, 2023Actual Additions and DeletionsBalanceJune 30, 2024Nonspendable 515,007$ (15,007)$ 500,000$ Restricted 18,210,562 1,263,720 19,474,282 Committed 8,999,700 (900,572) 8,099,128 Unassigned29,559,876 4,322,078 33,881,954 Total Fund Balance 57,285,145$ 4,670,219$ 61,955,364$ The Lower Income Housing Fund is funded from developer fees that are used to provide both rental and ownership affordable housing in the City through programs that subsidize rents, provide secondary financing to first time homebuyers, and provide funding to lower income housing developments. The Lower Income Housing Fee, which is paid by developers in lieu of constructing new affordable housing, amounted to $0.3 million in FY 2023/24, a $1.2 million decrease from FY 2022/23. There were no large-scale developer projects during the fiscal year; whereas in the prior fiscal year, the City received $1.1 million from Toll Brothers for residential new housing construction developments. Two new loans were issued during the fiscal year. The City provided a $0.3 million loan to Tri-Valley Reach, Inc. for construction of a two-bedroom accessory dwelling unit (ADU) on an existing property for very low-income adults with developmental disabilities. $0.1 million of the loan was funded by the Lower Income Housing Fund and $0.2 million was funded by the HOME Program Special Revenue Fund. In June, the City consolidated its $4.0 million Eden Housing and $2.5 Ridge View Commons housing loans, and accrued interest, into the Ridge View Commons Amended and Restated Secured Promissory Note in the amount of $16.6 million. During FY2023/24, principal repayments of $0.01 million and a loan payoff of $0.03 million were received on loans issued through the City’s Pleasanton Downtown Assistance Loan Program (PDALP). Expenditures decreased by $0.3 million over the prior fiscal year mainly due to a decrease in professional services related to the Housing Element update of the City’s General Plan. The Lower Income Housing Fund had a restatement of beginning fund balance, from $13.1 million to $16.1 million, as a result of correctly recording prior year loan assets into fund balance and removing it from deferred inflows of resources in adherence to GASB Statement No. 65 Items Previously Reported as Assets and Liabilities and also recorded uncollectible amounts (See Note 15).

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 20 The Miscellaneous Grants Fund is a special revenue fund used to account for various operating grant revenues, including funding for the Used Oil program, law enforcement expenditures, literacy programs, and miscellaneous City projects. During FY 2023/24, this fund received $4.6 million in grant proceeds from the Alameda County Transportation Commission (ACTC) for the Stoneridge at I-680 Interchange Improvements Project. The project funding agreement is between ACTC and the City and includes a total of $5.2 million in grant funding. The grant proceeds will be applied towards the City’s contribution to the Stoneridge at I-680 Interchange Improvements Project as stated in the agreement with Costco Wholesale Corporation (Costco), who is responsible for the implementation of the design and construction for the work on the Johnson Drive Economic Development Zone Improvements (JDEDZ) Project. The Stoneridge at I-680 Interchange Improvements Project is a subset project within the JDEDZ Project. Total fund expenditures increased by $4.2 million, mainly due to $4.6 million of capital outlay related to the Stoneridge at I-680 Interchange Improvements Project. Grant activity for the Used Oil program, law enforcement expenditures and literacy programs were minimal. The Miscellaneous Grants Fund was recategorized from a nonmajor to a major special revenue fund in FY 2023/24 as it met the criteria for being reported as a major fund. The Miscellaneous Capital Improvement Programs (CIP) Fund primarily receives contributions from the General Fund and Capital Facilities Fees paid by developers to be used for design and construction of facilities and infrastructure as adopted in the capital improvement program (CIP). In FY 2023/24, this fund received $2.2 million from the General Fund and $1.5 million from the Street Capital Improvement Program Fund. Capital expenditures totaled $2.2 million, a decrease of $3.4 million from the prior fiscal year. Project expenditures included $0.7 million for Val Vista Underdrain Improvements, $0.5 million for Library Lighting Improvements, $0.3 million for the OSC Generator Replacement, $0.3 million for the Ken Mercer Cricket Field Project, $0.1 million for Police Department Training Facility Repairs, and $0.3 million for various miscellaneous capital improvement projects. Major Proprietary Funds The designated major Proprietary Funds in FY 2023/24 are the Water, Sewer, Golf, and Storm Drain funds. Beginning Net Position was also restated by $(0.2) million due to capital assets and vehicle financed-purchase liability corrections in Water and Sewer (See Note 15). The majority of the restatement was related to Cemetery, Water and Sewer restatements were minimal. The Water Fund’s net position decreased by $2.3 million. Operating revenues of $34.0 million and operating expenses of $38.4 million (an increase of $5.0 million and $4.2 million, respectively, from the prior fiscal year) resulted in an operating loss of $4.5 million, which includes non-capitalizable related expenses. Miscellaneous revenue remained consistent between fiscal years at $0.8 million, while charges for services increased by $5.0 million due to a rate increase that went into effect January 1, 2024. The increase in operating expenses was mainly attributable to a $4.3 million increase in water purchase costs compared to the prior fiscal year from Zone 7. Similarly, for recycled water, purchase costs from the DSRSD-EBMUD Recycled Water Authority (DERWA) increased by $0.2 million compared to the prior fiscal year. This loss was offset by a $1.2 million increase in non-operating income and an increase of $0.7 million in net transfers/capital contributions. The increase in non-operating income was mainly due to a $1.3 million increase in interest income and gain on fair value of investments. Water Fund Reserves In June 2023, the City Council adopted a reserve policy requiring the Water Fund to maintain minimum reserves equal to 30.0 percent of operating expenses, target reserves of 35.0 percent, and maximum reserves of 40.0 percent. As of June 30, 2024, the Water Operating Fund had a combined reserved balance of $8.2 million, which equals 22.7 percent of the combined Water Operating Fund’s FY 2024/25 budgeted operating expenses. Should unforeseen and unavoidable events occur that require the expenditure of City resources beyond those provided for in the annual budget, the City Council must approve by Resolution any appropriations from unrestricted net position.

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 21 The City’s water costs increased from FY 2022/23. The graphs below depict the price increases over the last ten years in Zone 7’s treated water rates per acre-foot and the total expended by the City over that period to purchase water from Zone 7. The City’s water rate ordinance requires the City to increase its water rates to offset the increase in Zone 7 water rates to remain fiscally solvent. The City continues to monitor the revenues and expenses of the Water Fund. The Sewer Fund’s net position decreased by $0.3 million in FY 2023/24. Operating revenues of $16.8 million and operating expenses of $19.7 million (an increase of $1.2 million and $0.2 million, respectively, from the prior fiscal year) resulted in an operating loss of $2.9 million, including capital-related expenses. This loss was offset by $1.1 million in the City’s joint investment in the Livermore-Amador Valley Water Management Agency and a $1.1 million in interest income and gain on the fair value of investments. The $1.2 million increase in operating revenues is mostly due to a rate increase, as well as higher than anticipated utilization of sewer services. The $0.2 million increase in operating expenses was mainly attributable to increased repairs and maintenance costs. An increase in materials, supplies, and services ($0.9 million) was offset by a decrease in personnel services ($0.9 million). Similar to the Water Fund, the City’s sewer rate ordinance requires the City to increase its sewer rates to pass through the increase in DSRSD rates to remain fiscally solvent.

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 22 Sewer Operating Fund Reserves In June 2023, the City Council adopted a reserve policy that requires the Sewer Fund to maintain minimum reserves equal to 30.0 percent of operating expenses, target reserves of 35.0 percent, and maximum reserves of 40.0 percent. As of June 30, 2024, the Sewer Operating Fund had a reserved balance of $9.0 million, which equals 49.8 percent of the Sewer Operating Fund’s FY 2024/25 budgeted operating expenses, exceeding the maximum required reserves. Should unforeseen and unavoidable events occur that require the expenditure of City resources beyond those provided for in the annual budget, the City Council must approve by Resolution any appropriations from unrestricted net position. The Golf Fund’s net position decreased by $0.8 million in FY 2023/24, compared to a $1.7 million decrease in FY 2022/23. This was mainly due to a decrease in transfers out over the prior fiscal year. Transfers out to repay the General Fund for golf debt repayment remained consistent at $0.5 million, but transfers out to the Repair and Renovation Internal Service Fund to fund repair and replacement reserves decreased by $0.7 million, from $0.9 million in FY 2022/23 to $0.2 million in the current fiscal year. Charges for services increased by $0.4 million mainly due to increases in green fees received from more rounds of golf being played. Expenses increased slightly by $0.3 million. Increases in contract services, water expense, and golf materials were offset with a decrease in depreciation/amortization. The Storm Drain Fund’s net position increased minimally by $0.4 million in FY 2023/24. All net position categories remained relatively consisted with the prior year. GENERAL FUND BUDGETARY HIGHLIGHTS The following table displays the General Fund’s budget to actual variances for FY 2023/24. The Original Budget was established in June 2023 when the City adopted the two-year budget for fiscal years 2023/24 and 2024/25. The Modified Budget was adopted in February 2024 when the City Council approved the FY 2023/24 Mid-year Budget. Actual revenues were greater than the final budget by $7.2 million or 4.9 percent and expenditures were less than final budget by $5.5 million or 3.6 percent. The fund balance of $62.0 million is an increase of $4.7 million over FY 2022/23. At fiscal year-end, the City Council approved allocations of available funds to various Internal Service Funds ($5.1 million). General Fund budget-to-actual variances for FY 2023/24 are reflected in more detail in the Required Supplementary Information. The following table is a summary of these variances: General Fund FY 2023/24 Budgetary Comparison Original Budget Final Budget Actual AmountVariance from Final BudgetRevenues 146,429,092$ 146,441,627$ 153,596,263$ 7,154,636$ Expenditures (147,653,132) (153,096,014) (147,596,482) 5,499,532 Other Financing Sources(Uses):Transfers in 1,743,780 1,743,780 1,751,842 8,062 Transfers out (3,275,628) (4,260,284) (4,260,284) - Subscriptions - - 1,178,880 1,178,880 Net change in fund balance (2,755,888)$ (9,170,891)$ 4,670,219$ 13,841,110$

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 23 Actual General Fund revenues exceeded final budget estimates by $7.2 million in FY 2023/24. Actual revenues exceeded budgeted amounts most notably in Interest Income ($3.6 million) and Development Services Fees ($0.9 million), while revenues were less than anticipated in Sales & Use Tax ($0.6 million) and Department Services Fees ($0.2 million). The increase in interest income over budget was mainly due to GASB 31 adjustment to record changes in unrealized investment gain/fair market value of City’s investments at fiscal year-end. Revenue variances are summarized below: General Fund FY 2023/24 Revenues Budgetary Comparison Original Budget Final Budget Actual AmountVariance from Final BudgetProperty Tax 88,396,000$ 90,116,000$ 90,241,390$ $ 125,390 Sales & Use Tax 25,424,400 24,532,400 23,963,541 (568,859)Hotel & M otel Tax 4,350,000 4,520,000 5,259,180 739,180 Business License Tax 5,000,000 5,300,000 5,802,541 502,541 Other Taxes 1,740,000 1,290,000 1,545,656 255,656 Development Services Fees 6,204,500 5,254,500 6,141,848 887,348 Franchise Fees 3,105,000 3,105,000 3,440,134 335,134 Recreation Fees 4,572,661 4,607,457 4,663,652 56,195 Department Service Fees 1,660,200 1,660,200 1,416,104 (244,096)Other Revenues 5,018,331 5,022,070 5,783,264 761,194 Grants & Intergovernmental 468,000 544,000 1,295,318 751,318 Interest Income 490,000 490,000 4,043,635 3,553,635 Total $ 146,429,092 $ 146,441,627 $ 153,596,263 $ 7,154,636 Actual General Fund expenditures of $147.6 million were less than the final budget estimates by $5.5 million (3.6 percent). The $3.6 million savings in the Personnel Expenses category is primarily due to greater than anticipated levels of vacancies in several departments, including Police, Fire, Public Works, Finance, and Library & Recreation. Actual expenditures in the Transportation and Training category slightly exceeded its budget by $0.1 million mainly due to higher fuel costs, as well as higher vehicle and repair and maintenance costs. The $0.2 million savings in the Repairs and Maintenance category reflect reduced repair contract expenditures. The $3.6 million savings in the Materials, Supplies and Services category result from the following over and under expenditures: approximately $2.0 million in savings from various contractual services and approximately $2.2 million in savings from various supplies and materials accounts. These are offset by overspending in other areas, including approximately $0.4 million in phone, computer equipment and software costs, $0.2 million for interfund expenses related to the Storm Drain operation, and $0.2 million for temporary personnel and recruitment service expenses. General Fund FY 2023/24 Expenditures Budgetary Comparison Original Budget Final Budget Actual AmountVariance from Final BudgetPersonnel Expenses103,357,169$ 105,511,427$ 101,910,933$ (3,600,494)$ Transportation and Training6,975,165 5,640,165 5,740,649 100,484 Repairs and M aintenance2,956,688 3,081,688 2,842,385 (239,303) Material, Supplies and Services33,640,110 38,195,261 34,561,201 (3,634,060) Capital Outlay719,000 662,473 1,484,449 821,976 Debt Service5,000 5,000 1,056,866 1,051,866 Total147,653,132$ 153,096,014$ 147,596,482$ (5,499,532)$

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 24 CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The City’s investment in capital assets for governmental and business-type activities as of June 30, 2024, was $667.7 million (net of accumulated depreciation/amortization). This investment in capital assets includes land, right-of-ways, public art, construction-in-progress, buildings, improvements other than buildings, machinery and equipment, vehicles, and infrastructure, and intangible assets associated with lease assets and subscription assets. The City’s investment in capital assets (net of accumulated depreciation/amortization) decreased by $3.2 million from the prior fiscal year, including $1.0 of asset restatements (See Note 15). Major capital asset changes during the fiscal year were as follows: Governmental activities net capital assets decreased by $1.4 million in FY 2023/24, including the restatement of beginning net capital assets from $511.8 million to $512.7 million. The restatement was due to the inclusion of $1.0 million of financed vehicle lease purchases that were not recorded in the prior fiscal year. Total capital asset additions and retirements were $15.4 million and $2.7 million, respectively. In addition, current year depreciation/amortization expense additions and retirements were $16.3 million and $2.7 million, respectively. Notable capital assets activity included: Additions to construction-in-progress totaling $11.9 million in FY 2023/24 were related to the Capital Improvement Program. They included: the Johnson Drive Economic Development Zone Project ($4.6 million), annual street projects ($1.2 million), annual curb and gutter projects ($1.0 million), various parks projects ($1.1 million), the Val Vista Underdrain Improvement Project ($0.7 million), the Library Lighting Improvements Project ($0.5 million), the I-680 at Sunol Boulevard Interchange Modernization Project ($0.4 million), the OSC Generator Replacement Project ($0.3 million), the West Las Positas Boulevard Multimodal Reconstruction Project ($0.3 million), and the Urban Forest Master Plan Project ($0.2 million). The following completed construction projects totaling $19.5 million were transferred to various asset projects: the renovated Fire Station #3 Project ($9.0 million), the Expanded Parking On Downtown Transportation Corridor Project ($3.4 million), the Library Roof Replacement Project ($2.9 million), the Val Vista Underdrain Improvement Project ($1.5 million), the Bernal Avenue and Nevada Street Traffic Signals Installation Project ($0.7 million), the Ken Mercer Cricket Field Project ($0.5 million), the Augustin Bernal Mountain Bike Trail Project ($0.4 million), the OSC Generator Replacement Project ($0.3 million), the 2023 Annual Curb and Gutter for Street Resurfacing Project ($0.3 million), the 2023 Annual Playground Renovations Project ($0.3 million), and the St. Mary Street Lighting Improvements Project ($0.2 million). Additions to intangible capital assets include a $0.3 million lease agreement with UBEO Business Services for printing services and $0.9 million for software subscriptions which include $0.7 million for DarkTrace and $0.1 million for Savant Solutions, both for cybersecurity, and $0.1 million for multiple community engagement platforms. Infrastructure additions of $0.9 million included street improvements and streetlights. Machinery and equipment additions of $1.1 million included items such as mowers, trailers, compressors, and haulers. Business-type activities net capital assets decreased overall by $1.8 million in FY 2023/24, including the restatement of beginning net capital assets, mainly due to the normal depreciation of assets. Additions in capital assets of $7.7 million were offset by $9.6 million from depreciation and amortization. Current year capital assets activity included:

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 25 Additions to infrastructure included $0.9 million of improvements related to water ($0.3 million), sewer ($0.2 million), and streets ($0.4 million). Additions to intangible capital assets included $0.3 million of right-to-use lease agreements for Golf Course operations ($0.2 million for a golf cart lease and $0.1 million for a tag system) and $0.4 million for a utility billing customer support web portal service subscription agreement. Additions to construction-in-progress projects totaled $5.8 million. They included the Near-Term Water Improvement Project ($1.5 million), the Bernal Avenue 18-inch Water Main (F-4 Line) & Turnout No. 1 Improvements Project ($1.7 million), the Annual Sewer Collection System Improvement Project ($0.8 million), the Water System Management Plan Project ($0.3 million), the Sewer Capacity Evaluation Project ($0.3 million), and the Val Vista Underdrain Improvement Project ($0.2 million). Additions also included Annual Water Distribution Projects ($0.5 million), Annual Storm Repair/Replacement Projects ($0.2 million) and miscellaneous small water, sewer, and storm related projects ($0.3 million). The following completed construction-in-progress projects totaled $0.4 million and were added to the City’s infrastructure during the fiscal year: the Val Vista Underdrain Improvement Project ($0.3 million) and the SCADA Improvements System Project ($0.1 million). For the government-wide financial statements presentation, all depreciable capital assets are depreciated/amortized from their acquisition date over their useful lives. Governmental Fund financial statements report capital asset purchases as expenditures. Capital assets for the governmental and business-type activities are presented in the following table to illustrate changes in FY 2023/24. GovernmentalactivitiesBusiness-typeactivitiesTotalIncrease/ (Decrease)Restated Restated Restated2023 2024 2023 2024 2023 2024 % ChangeLand 248.9$ 248.9$ 14.5$ 14.5$ 263.4$ 263.4$ 0.0%Right-of-ways 36.3 36.3 - - 36.3 36.3 0.0%Public Art 0.9 0.9 - - 0.9 0.9 0.0%Construction in progress 26.2 18.7 7.6 13.0 33.8 31.7 -6.2%Buildings 52.1 61.7 17.7 16.8 69.8 78.5 12.5%Machinery & equipment 9.8 10.0 6.5 6.2 16.3 16.2 -0.6%Improvements other than buildings 22.6 24.1 4.1 2.5 26.7 26.6 -0.4%Vehicles 3.9 2.9 0.9 0.9 4.8 3.8 -20.8%Infrastructure 110.8 106.3 106.3 101.5 217.1 207.8 -4.3%Right-to-use lease assets - building - 0.2 - 0.2 - 0.4 100.0%Right-to-use subscription assets 1.1 1.3 0.6 0.8 1.7 2.1 23.5%Total 512.7$ 511.3$ 158.2$ 156.4$ 670.8$ 667.7$ -0.5% City of PleasantonCapital Assets(net of depreciation, in millions of dollars) Additional information about the City's capital assets can be found in Note 7 in the Notes to Basic Financial Statements.

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 26 Debt Administration Governmental activities debt increased by $2.0 million to $4.6 million in FY 2023/24, including the restatement of the beginning balance from $0.6 million to $2.6 million. The restatement was due to the inclusion of $1.0 million in financed vehicle lease purchases that were not recorded in the prior fiscal year (see Note 15). This year’s Long Term Debt Outstanding table below also includes subscription liabilities for an improved debt presentation. Financed purchase – vehicle and subscription liabilities debt changes were minimal during the fiscal year. The City entered into a $1.2 million agreement with JP Morgan Equipment Finance for a Pumper Type 1 Fire Engine; the annual payment of $0.1 million was made, bringing the remaining balance to $1.1 million. During the year, the City made the annual payment on the HUD Section 108 loan of $0.05 million to bring the remaining balance to $0.5 million. The City entered into a $0.9 million agreement with Sun Ridge Systems for a computer-aided dispatch and records management system; the annual payment of $0.2 million was made, bringing the remaining balance to $0.7 million. Lease liabilities of $0.3 million related to a printing service agreement with UBEO Business Services were added; the annual payment of $0.1 million was made, bringing the remaining balance to $0.2 million. Subscription liabilities increased $0.9 million during the fiscal year. The increase is due to subscription agreement additions of $0.7 million with Darktrace, Inc. to provide a crucial cybersecurity system for the City, and $0.1 million for other subscriptions (OpenGov, HootSuite, etc.). This was partly offset by a $0.8 million decrease from the usual amortization of subscription liabilities, leaving a remaining balance of $1.1 million. Business-type activities debt increased by $17.5 million to $29.2 million in FY 2023/24. This year’s Long Term Debt Outstanding table below includes subscription liabilities for an improved debt presentation. The City’s loan from the California Clean Water State Revolving Fund (SRF) for the Recycled Water Infrastructure Expansion project decreased by $0.3 million from the normal amortization of the loan payable, bringing the remaining balance to $8.9 million. The golf course financed purchase agreement debt increased by $ 0.01 million due to the addition of a hauler, and payments of $0.04 million were made during the fiscal year, bringing the remaining balance to $0.08 million. Additions of $0.3 million were added for golf course operating leases for the Golf Vantage Tag System and for golf carts; annual payments totaling $0.1 million were made, bringing the remaining balance to $0.2 million for the two leases. During the fiscal year, the City paid off the remaining $1.9 million of Water Revenue Bonds, Series 2017. The City also issued $17.3 million of Water Revenue Bonds, Series 2024 during FY 2023/24 with a premium of $1.9 million. Proceeds will be used to fund near-term water improvement projects. Principal payments commence in FY 2024/25. Subscription liabilities increased $0.4 million during the fiscal year mainly due to a service subscription agreement with Smart Energy System, Inc. for a customer support web portal, and was offset with a decrease of $0.1 million due to the normal amortization of the subscription liability, bringing the remaining balance to $0.8 million.

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 27 The following table compares the outstanding balances on long-term debt of the City as of June 30, 2023 and 2024: City of Pleasanton Long Term Debt Outstanding Governmental Activities:Balance July1, 2023 (As restated) Additions DeletionsBalance June 30, 2024Direct Borrowings:Financed purchase - vehicle1,005,284$ 213,979$ (271,226)$ 948,037$ Financed purchase - fire engine- 1,237,932 (112,270) 1,125,662 HUD Section 108 Loan, variable rate, due 2035586,000 - (50,000) 536,000 G3-Sun Ridge- Computer system- 855,235 (171,047) 684,188 Lease liabilities- 325,832 (105,479) 220,353 Subscription liabilities987,411 945,328 (838,318) 1,094,421 Total Governmental Activities2,578,695$ 3,578,306$ (1,548,340)$ 4,608,661$ Business-Type ActivitiesBalance July 1, 2023 Additions DeletionsBalance June 30, 2024Direct Borrowings:California clean water SRF loan9,238,640$ -$ (342,508)$ 8,896,132$ Golf course financed purchase agreement113,957 11,027 (37,524) 87,460 Golf course leases- 320,902 (98,977) 221,925 Bonds:Water Revenue Bond, Series 20171,900,000 - (1,900,000) - Water Revenue Bond, Series 2024- 17,275,000 - 17,275,000 Premium on Water Revenue Bond, Series 2024- 1,959,574 - 1,959,574 Subscription liabilities504,169 403,433 (140,104) 767,498 Total Business-Type Activities11,756,766$ 19,969,936$ (2,519,113)$ 29,207,589$ Additional information about the City’s long-term obligations can be found in Note 8 in the Notes to Basic Financial Statements. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET The unemployment rate in Pleasanton remained low at 4.3 percent in June 2024 although it is higher than the 3.8 percent in June 2023. The office vacancy rate was 16.6 percent at the end of FY 2023/24, which is higher than the 14.5 percent at the close of FY 2022/23. Pleasanton’s vacancy rate is lower than the Tri-Valley region vacancy rate of 18.9 percent. Changes in home sale activities between FY 2023/24 and FY 2022/23 were negligible in Pleasanton, and home prices remained strong. Hotel tax continued to improve in FY 2023/24, but annual revenue remained significantly lower than the pre-pandemic levels. FY 2024/25 General Fund budget totals $153.1 million, excluding transfers out to other funds. Expenditure growth is expected to outpace revenue growth. Additional details on the economy of the City are discussed in the accompanying Transmittal Letter.

City of Pleasanton Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 28 REQUEST FOR INFORMATION This financial report is designed to provide our residential and business community, taxpayers, customers, investors, and creditors with a general overview of the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, P.O. Box 520, Pleasanton, California 94566.

BASIC FINANCIAL STATEMENTS
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
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GovernmentalBusiness-TypeActivities Activities TotalASSETSCurrent assets:Pooled cash and investments 207,538,230$ 47,905,799$ 255,444,029$ Restricted cash and investments 51,175,527 19,150,932 70,326,459 Receivables (net):Accounts 4,039,805 11,018,668 15,058,473 Taxes 7,312,647 - 7,312,647 Accrued interest 2,981,051 100,947 3,081,998 Lease, due within one year 261,796 - 261,796 Notes and loans 3,764,490 - 3,764,490 Internal balances 1,577,938 (1,577,938) - Prepaid items 1,158,892 11,828 1,170,720 Inventory - 207,039 207,039 Total current assets 279,810,376 76,817,275 356,627,651 Noncurrent assets:Lease receivable, due in more than one year 5,890,213 - 5,890,213 Net investment in LAVWMA - 19,535,695 19,535,695 Capital assets:Not being depreciated/amortized 304,779,138 27,543,117 332,322,255 Being depreciated/amortized, net 206,518,508 128,857,439 335,375,947 Total capital assets 511,297,646 156,400,556 667,698,202 Total noncurrent assets 517,187,859 175,936,251 693,124,110 Total assets796,998,235 252,753,526 1,049,751,761 DEFERRED OUTFLOWS OF RESOURCESRelated to pensions 52,056,809 3,255,232 55,312,041 Related to OPEB 10,817,974 1,228,026 12,046,000 Total deferred outflows of resources62,874,783 4,483,258 67,358,041 (Continued) Primary GovernmentCity of PleasantonStatement of Net PositionJune 30, 2024 See accompanying Notes to the Basic Financial Statements32

GovernmentalBusiness-TypeActivities Activities TotalLIABILITIESCurrent liabilities:Accounts payable 11,989,898 11,657,372 23,647,270 Accrued payroll 1,059,741 103,306 1,163,047 Accrued interest 40,086 145,778 185,864 Refundable deposits 1,041,315 513,342 1,554,657 Unearned revenue 3,486,445 1,334,738 4,821,183 Compensated absences - due within one year 1,447,930 - 1,447,930 Claims liability - due within one year 1,735,273 - 1,735,273 Long-term liabilities - due within one year 1,460,020 1,006,026 2,466,046 Total current liabilities 22,260,708 14,760,562 37,021,270 Noncurrent liabilities:Compensated absences, due in more than one year 3,540,876 - 3,540,876 Claims liability - due in more than one year 8,764,830 - 8,764,830 Long-term liabilities - due in more one year 3,148,641 28,201,563 31,350,204 Net deficit in LPFD 40,976,747 - 40,976,747Net pension liability 165,992,501 12,894,791 178,887,292 Net OPEB liability 17,055,865 1,936,135 18,992,000 Total noncurrent liabilities 239,479,460 43,032,489 282,511,949 Total liabilities261,740,168 57,793,051 319,533,219 DEFERRED INFLOWS OF RESOURCESRelated to pensions 4,530,800 68,641 4,599,441 Related to OPEB 6,358,233 721,767 7,080,000 Related to leases 6,110,004 - 6,110,004 Total deferred inflows of resources 16,999,037 790,408 17,789,445 NET POSITIONNet investment in capital assets 500,860,474 143,511,748 644,372,222 Restricted for:Pension funding 51,062,988 - 51,062,988 Capital projects 55,770,406 - 55,770,406 Debt service - 462,827 462,827 Public safety 164,868 - 164,868 Transportation - 592,917 592,917 Special projects 5,500,313 - 5,500,313Community development projects 19,731,362 - 19,731,362Total restricted 132,229,937 1,055,744 133,285,681 Unrestricted (deficit) (51,956,598) 54,085,833 2,129,235 Total net position 581,133,813$ 198,653,325$ 779,787,138$ (Concluded) City of PleasantonStatement of Net Position (Continued)June 30, 2024Primary Government See accompanying Notes to the Basic Financial Statements33

Capital GrantsCharges for Operating Grants andExpenses Services and Contributions ContributionsFunctions/ProgramsGovernmental Activities:General government 26,426,724$ 429,800$ 1,819,968$ -$ Public safety 65,733,516 2,239,666 783,053 -Community development 13,910,529 6,278,838 4,204,350 -Public works 39,490,711 1,081,232 6,317,260 13,658,372Community activities 18,141,424 4,767,567 448,399 -Interest on long term debt 256,573 - - - Total Governmental Activities163,959,477 14,797,103 13,573,030 13,658,372 Business-Type Activities:Water 39,763,366 33,117,123 148,825 278,000 Sewer 19,853,028 16,837,884 1,226,962 159,000 Golf 7,054,062 6,314,582 - - Storm Drain 2,670,738 528,755 51,676 441,000 Transit 557,053 - 586,743 - Cemetery 389,418 191,901 - - Total Business-Type Activities70,287,665 56,990,245 2,014,206 878,000 Total Primary Government234,247,142$ 71,787,348$ 15,587,236$ 14,536,372$ (Continued) City of PleasantonStatement of ActivitiesFor the Year Ended June 30, 2024Program Revenues See accompanying Notes to the Basic Financial Statements34

Governmental Business-TypeActivities Activities TotalFunctions/ProgramsGovernmental Activities:General government (24,176,956)$ -$ (24,176,956)$ Public safety (62,710,797) - (62,710,797)Community development (3,427,341) - (3,427,341)Public works (18,433,847) - (18,433,847)Community activities (12,925,458) - (12,925,458)Interest on long term debt (256,573) - (256,573) Total Governmental Activities(121,930,972) - (121,930,972) Business-Type Activities:Water - (6,219,418) (6,219,418) Sewer - (1,629,182) (1,629,182) Golf - (739,480) (739,480) Storm Drain - (1,649,307) (1,649,307) Transit - 29,690 29,690 Cemetery - (197,517) (197,517) Total Business-Type Activities- (10,405,214) (10,405,214) Total Primary Government(121,930,972) (10,405,214) (132,336,186) General Revenues:Taxes:Property 90,241,390 - 90,241,390 Sales taxes 24,601,129 - 24,601,129 Franchise taxes 3,440,134 - 3,440,134 Business licenses taxes 5,802,541 - 5,802,541 Transient occupancy taxes 5,259,180 - 5,259,180 Other taxes 908,069 - 908,069 Use of money and property 8,688,149 2,455,033 11,143,182Miscellaneous 1,865,484 1,212,132 3,077,616Total General Revenues140,806,076 3,667,165 144,473,241 Transfers:Transfers (2,778,179) 2,778,179 - Total Transfers(2,778,179) 2,778,179 - Changes in Net Position16,096,925 (3,959,870) 12,137,055 Net Position:Beginning of year, as previously presented as of June 30, 2023 585,334,316 202,855,910 788,190,226 Error corrections (20,297,428) (242,715) (20,540,143) Beginning of year, as restated (Note 15) 565,036,888 202,613,195 767,650,083 End of year 581,133,813$ 198,653,325$ 779,787,138$ (Concluded) Primary GovernmentNet (Expense) Revenue and Changes in Net PositionsCity of PleasantonStatement of Activities (Continued)For the Year Ended June 30, 2024 See accompanying Notes to the Basic Financial Statements35

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FUND FINANCIAL STATEMENTS
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GOVERNMENTAL FUND FINANCIAL STATEMENTSGeneral Fund- is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the Citythat are not accounted for through other funds. For the City, the General Fund includes such activities as general government, publicsafety, community development, public works and community activities.Lower Income Housing Fund -is a special revenue fund used to account for and report the proceeds of housing in-lieu fees paid bydevelopers of residential, commercial, and office property. These revenues are used to provide financial assistance toward meetingthe affordable housing guidelines detailed in the housing element of the City's General Plan.Miscellaneous Capital Improvement Programs Fund -is a capital projects fund that receives contributions from the General Fundto be used for design and construction of facilities and infrastructure as adopted in the annual miscellaneous capital improvementprogram.Miscellaneous Grants Fund- is a special revenue fund that accounts for various grant revenues, including funding for the Used Oilprogram, law enforcement expenditures, literacy programs, and miscellaneous City projects. 39

CapitalProjects FundMiscellaneousCapital Lower IncomeMiscellaneousImprovementGeneral Fund Housing FundGrants FundPrograms Fund ASSETSPooled cash and investments 38,157,745$ 14,057,320$ 8,323,614$ 28,308,758$ Receivables:Accounts 2,247,639 - 1,024,717 - Taxes 6,153,449 - - - Notes and loans - 1,365,735 - - Accrued interest 171,120 2,125,460 3,001 60,334 Grants - - - - Leases 344,402 5,807,607 - - Due from other funds 782,525 - - - Advances to other funds 500,000 - - - Restricted assets:Cash and investments 19,474,282 - - - Total assets67,831,162$ 23,356,122$ 9,351,332$ 28,369,092$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCESLiabilities:Accounts payable 3,356,949$ 128,129$ 4,647,899$ 572,770$ Accrued liabilities 1,053,426 2,512 - - Unearned revenues 101,522 - 3,195,544 - Deposits payable 1,041,315 - - - Due to other funds - - 104,956 - Advances from other funds - - - - Total liabilities5,553,212 130,641 7,948,399 572,770 Deferred inflows of resources:Related to leases 322,586 5,787,418 - - Unavailable revenues - - 104,956 - Total deferred inflows of resources322,586 5,787,418 104,956 - Fund balances:Nonspendable 500,000 - - - Restricted 19,474,282 17,438,063 1,297,977 - Committed 8,099,128 - - - Assigned - - - 27,796,322 Unassigned 33,881,954 - - - Total fund balances61,955,364 17,438,063 1,297,977 27,796,322 Total liabilities, deferred inflowsof resources, and fund balances 67,831,162$ 23,356,122$ 9,351,332$ 28,369,092$ (Continued) Special Revenue FundsCity of PleasantonBalance SheetGovernmental FundsJune 30, 2024 See accompanying Notes to the Basic Financial Statements40

Nonmajor TotalGovernmental GovernmentalFunds Funds ASSETSPooled cash and investments 77,908,857$ 166,756,294$ Receivables:Accounts 718,422 3,990,778Taxes 1,159,198 7,312,647Notes and loans 2,398,755 3,764,490Accrued interest 544,327 2,904,242 Grants - - Leases - 6,152,009 Due from other funds - 782,525 Advances to other funds - 500,000 Restricted assets:Cash and investments - 19,474,282 Total assets82,729,559$ 211,637,267$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCESLiabilities:Accounts payable 1,499,133$ 10,204,880$ Accrued liabilities 3,803 1,059,741 Unearned revenues 189,379 3,486,445 Deposits payable - 1,041,315 Due to other funds 343,741 448,697 Advances from other funds 205,685 205,685 Total liabilities2,241,741 16,446,763 Deferred inflows of resources:Related to leases - 6,110,004 Unavailable revenues 372,355 477,311 Total deferred inflows of resources372,355 6,587,315 Fund balances:Nonspendable - 500,000 Restricted 61,841,059 100,051,381 Committed 6,125,219 14,224,347 Assigned 12,149,185 39,945,507 Unassigned - 33,881,954 Total fund balances80,115,463 188,603,189 Total liabilities, deferred inflowsof resources, and fund balances 82,729,559$ 211,637,267$ (Concluded) City of PleasantonBalance Sheet (Continued)Governmental FundsJune 30, 2024 See accompanying Notes to the Basic Financial Statements41

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Total Fund Balances - Total Governmental Funds 188,603,189$ Amounts reported for governmental activities in the statement of net position are different because:Nondepreciable assets 304,779,138$ Depreciable assets, net of accumulated depreciation 205,045,525 Intangible assets, net of accumulated amortization 1,472,983 Less: Amount reported in Internal Service Funds (11,486,352) 499,811,294 477,311 (64,218,301) (27,971) HUD Section 108 Loan (536,000) Subscription liability (1,094,421) Lease liability (220,353) Financed purchase liability (684,188) Net investment (deficit) in Livermore-Pleasanton Fire Department ("LPFD") (40,976,747) Net position of governmental activities 581,133,813$ Amount reported in government-wide statement of position:Some of the City's receivables for operating and capital grant reimbursements will be collected after year end, butare not available soon enough to pay for current-period expenditures, and therefore, are either not reported or arereported with an offset to unavailable revenues in the funds.Internal service funds are used by management to charge the costs of employee benefits, public art acquisitionand maintenance, assessment district administration, equipment replacement/ renovation and self-insuranceprograms to individual departments or to other governments. The assets, deferred outflows of resources,liabilities, and deferred inflows of resources are included in governmental activities in the Statement of NetPosition, net of $(28,018) reported for business-type activities.Certain liabilities, including bonds payable, are not due and payable in the current period and therefore are notreported in the Governmental Fund Financial Statements:

City of PleasantonReconciliation of the Governmental Funds Balance Sheetto the Government-Wide Statement of Net PositionJune 30, 2024Capital assets net of depreciation/amortization have not been included as financial resources in governmentalfund activity.Accrued interest payable for the current portion of interest due on bonds has not been reported in thegovernmental funds.

See accompanying Notes to the Basic Financial Statements43

CapitalProjects FundsMiscellaneousCapital Lower IncomeMiscellaneousImprovementGeneral Fund Housing FundGrants FundPrograms Fund REVENUES: Taxes126,812,309$ -$ -$ -$ Assessments - - - - Licenses and permits 3,914,590 - - - Intergovernmental 1,293,318 - 5,433,296 - Franchises 3,440,134 - - - Charges for services 1,369,709 - - - Use of money and property 4,027,009 1,782,160 38,870 848,366 Fines and forfeitures 176,156 - - - Plan check fees 2,007,539 - - - Contributions 50,612 - - - Development fees 224,214 333,208 - - Miscellaneous 10,280,673 272 - - Total revenues 153,596,263 2,115,640 5,472,166 848,366 EXPENDITURES: Current:General government 24,931,058 - - - Public safety 64,105,373 - 60,094 - Community development 10,323,389 806,484 94,314 - Public works 29,672,059 - - 34,265 Community activities 16,028,593 - 129,661 - Capital outlay 1,484,449 - 4,580,840 2,203,603 Debt service:Principal 991,828 - - - Interest 59,733 - - - Total expenditures 147,596,482 806,484 4,864,909 2,237,868 EXCESS OF REVENUES OVER(UNDER) EXPENDITURES5,999,781 1,309,156 607,257 (1,389,502) OTHER FINANCING SOURCES (USES):Transfers in 1,751,842 - - 3,690,628 Transfers out (4,260,284) - - (1,800,000) Inception of lease and subscription liability1,178,880 - - - Total other financing sources (uses)(1,329,562) - - 1,890,628 NET CHANGE IN FUND BALANCES4,670,219 1,309,156 607,257 501,126 FUND BALANCES:Beginning of year, as previously presented as of June 30, 202357,285,145 13,116,518 - 27,295,196 Change within financial reporting entity:(nonmajor to major)- - 690,720 - Error corrections- 3,012,389 - - Beginning of year, as restated (Note 15)57,285,145 16,128,907 690,720 27,295,196 End of year 61,955,364$ 17,438,063$ 1,297,977$ 27,796,322$ (Continued) Special Revenue FundsCity of PleasantonStatement of Revenues, Expenditures, and Changes in Fund BalancesGovernmental FundsFor the Year Ended June 30, 2024 See accompanying Notes to the Basic Financial Statements44

Nonmajor TotalGovernmental GovernmentalFunds Funds REVENUES: Taxes-$ 126,812,309$ Assessments 216,179 216,179 Licenses and permits - 3,914,590 Intergovernmental 7,662,748 14,389,362 Franchises - 3,440,134 Charges for services - 1,369,709 Use of money and property 2,789,574 9,485,979 Fines and forfeitures 33,700 209,856 Plan check fees - 2,007,539 Contributions 1,055,770 1,106,382 Development fees 2,068,538 2,625,960 Miscellaneous 1,341,592 11,622,537 Total revenues 15,168,101 177,200,536EXPENDITURES: Current:General government 980,925 25,911,983 Public safety 31,71664,197,183 Community development 300,959 11,525,146 Public works 593,352 30,299,676 Community activities 78,31216,236,566 Capital outlay 5,049,715 13,318,607 Debt service:Principal 80,736 1,072,564 Interest 17,838 77,571 Total expenditures 7,133,553 162,639,296 EXCESS OF REVENUES OVER(UNDER) EXPENDITURES8,034,548 14,561,240 OTHER FINANCING SOURCES (USES):Transfers in 1,758,313 7,200,783 Transfers out (1,895,546) (7,955,830) Inception of lease and subscription liability- 1,178,880 Total other financing sources (uses) (137,233) 423,833 NET CHANGE IN FUND BALANCES7,897,315 14,985,073 FUND BALANCES:Beginning of year, as previously presented as of June 30, 2023 69,830,248 167,527,107 Change within financial reporting entity:(nonmajor to major) (690,720) - Error corrections 3,078,620 6,091,009 Beginning of year, as restated (Note 15)72,218,148 173,618,116 End of year 80,115,463$ 188,603,189$ (Concluded) City of PleasantonStatement of Revenues, Expenditures, and Changes in Fund Balances (Continued)Governmental FundsFor the Year Ended June 30, 2024 See accompanying Notes to the Basic Financial Statements45

Net change in fund balances - total governmental funds:14,985,073$ Governmental activities in the Statement of Activities were reported differently because:Capital outlay and adjustments 14,212,988$ Depreciation/amortization (net of internal service funds of $2,041,205) (14,215,498)Capital asset retirement loss (481,755) (484,265) 238,479 Accrued interest for long-term liabilities (27,971)Inception of lease liability (325,832)$ (853,048) Inception of financed purchase liability (855,235) 746,038 Principal payments on HUD Section 108 Loan 50,000 Principal payments on lease liability 105,479 Principal payments on financed purchase 171,047 (961,551)(155,574)2,502,734Change in net position of governmental activities 16,096,925$ Internal service funds are used by management to charge the costs of certain activities to individual funds. The netexpense of certain activities of the internal service funds is reported with governmental activities in the statement of netposition, net of $(1,014,258) reported at business-type activities.

City of PleasantonReconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of ActivitiesFor the Year Ended June 30, 2024Governmental funds report acquisition of capital assets as part of capital outlay expenditures. However, in theGovernment-Wide Statement of Activities, the cost of those assets were allocated over their estimated useful lives asdepreciation expense.Certain accrued revenues such as grants do not provide current financial resources and therefore, are not reported inthe governmental funds as revenues. This is the amount of the net change in these accrued revenue amounts during thecurrent period.Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-termliabilities in the Statement of Net Position. Repayment of debt principal is an expenditure in the governmental funds,but the repayment reduces long-term liabilities in the Statement of Net Position.Gains in the equity investment in LPFD is a revenue in the governmental funds, but the gains decrease the netinvestment deficit in the Statement of Net Position.Inception of subscription liability, net of $92,820 reported in the Internal Service FundsPrincipal payments on subscription liabilities, net of $92,820 reported in the Internal Service Funds See accompanying Notes to the Basic Financial Statements46

PROPRIETARY FUND FINANCIAL STATEMENTSWater Fund -accounts for the operation and maintenance of the City's water utility, a self-supporting activity, which providesservices on a user-charge basis to residences and businesses.Sewer Fund -accounts for the operation and maintenance of the City's sewer collection system and related facilities. It is a self-supporting activity, which provides services on a user-charge basis to residences and businesses.Golf Fund -accounts for the daily operation and maintenance of the City's golf course, Callippe Preserve Golf Course. The Citycurrently contracts with Pleasanton Golf, LLC (CourseCo, Inc.) to manage and maintain the golf course and its facilities. This fundalso accounts for golf course capital assets and the accumulation of funds for payment of golf debt service.Storm Drain Fund -accounts for the operation and maintenance of the City's storm system. The revenue source for this fund isthe urban runoff annual assessment fee levied on property owners beginning in FY 1992/93 and a subsidy from the GeneralFund. The expenses accounted for in this fund are for the federally mandated program to reduce pollutants to the Bay and otherexpenses related to maintaining the City's storm drain system. 47

Water Sewer Golf Storm DrainASSETSCurrent assets:Pooled cash and investments 17,895,497$ 21,282,834$ 3,574,837$ 3,223,222$ Restricted cash 19,150,932 - - - Receivable:Accounts 7,798,773 3,072,724 23,933 1,512 Accrued interest 38,691 54,167 912 3,732 Prepaid items - - 11,828 - Inventory - - 207,039 - Total current assets44,883,893 24,409,725 3,818,549 3,228,466 Noncurrent assets:Net investment in joint ventures - 19,535,695 - - Advances to other funds - - - - Capital assets:Nondepreciable 9,776,164 4,833,255 12,434,327 437,620 Depreciable, net 72,210,087 33,426,962 4,206,882 18,112,512 Total capital assets 81,986,251 38,260,217 16,641,209 18,550,132 Total noncurrent assets81,986,251 57,795,912 16,641,209 18,550,132 Total assets126,870,144 82,205,637 20,459,758 21,778,598 DEFERRED OUTFLOWS OF RESOURCESRelated to pensions 2,110,183 905,174 - 239,875 Related to OPEB 796,060 341,474 - 90,492 Total deferred outflows of resources2,906,243 1,246,648 - 330,367 (Continued) Business-Type Activities - Enterprise Funds City of PleasantonStatement of Net PositionProprietary FundsJune 30, 2024 See accompanying Notes to the Basic Financial Statements. 48

GovernmentalActivitiesNonmajor InternalEnterprise Funds Totals Service FundsASSETSCurrent assets:Pooled cash and investments 1,929,409$ 47,905,799$ 40,781,936$ Restricted cash - 19,150,932 31,701,245 Receivable:Accounts 121,726 11,018,668 49,027 Accrued interest 3,445 100,947 76,809 Prepaid items - 11,828 1,158,892 Inventory - 207,039 - Total current assets2,054,580 78,395,213 73,767,909 Noncurrent assets:Net investment in joint ventures - 19,535,695 - Advances to other funds - - 977,813 Capital assets:Nondepreciable 61,751 27,543,117 367,893 Depreciable, net 900,996 128,857,439 11,118,459 Total capital assets 962,747 156,400,556 11,486,352 Total noncurrent assets962,747 175,936,251 12,464,165 Total assets3,017,327 254,331,464 86,232,074 DEFERRED OUTFLOWS OF RESOURCESRelated to pensions - 3,255,232 52,056,809 Related to OPEB - 1,228,026 10,817,974 Total deferred outflows of resources- 4,483,258 62,874,783 (Continued) Business-Type Activities -Enterprise Funds City of PleasantonStatement of Net Position (Continued)Proprietary FundsJune 30, 2024 See accompanying Notes to the Basic Financial Statements. 49

Water Sewer Golf Storm DrainLIABILITIESCurrent liabilities:Accounts payable 7,436,283 3,409,171 477,619 84,002 Payroll payable 65,729 23,365 - 7,303 Accrued interest 145,778 - - - Refundable deposits 282,046 - 231,296 - Unearned revenues - 27,606 388,047 - Due to other funds - - 333,828 - Accrued compensated absences - - - - Claims payable - - - - Financed purchases payable - - 33,057 - Lease payable - - 102,077 - Loan payable 345,934 - - - Subscription liabilities 124,958 - - - Bonds payable 400,000 - - - Total current liabilities8,800,728 3,460,142 1,565,924 91,305 Noncurrent liabilities:Advances from other funds 772,128 - - - Accrued compensated absences - - - - Claims payable - - - - Financed purchases payable - - 54,403 - Lease payable - - 119,848 - Loan payable 8,550,198 - - - Subscription liabilities 642,540 - - - Bonds payable 18,834,574 - - - Net pension liability 8,358,964 3,585,622 - 950,205 Net OPEB liability 1,255,087 538,376 - 142,672 Total noncurrent liabilities38,413,491 4,123,998 174,251 1,092,877 Total liabilities47,214,219 7,584,140 1,740,175 1,184,182 DEFERRED INFLOW OF RESOURCESRelated to pensions 44,496 19,087 - 5,058 Related to OPEB 467,883 200,699 - 53,185 Total deferred inflows of resources512,379 219,786 - 58,243 NET POSITIONNet investment in capital assets 69,556,920 38,131,186 16,331,824 18,529,071 Restricted for pension - - - - Restricted for debt service 462,827 - - - Restricted for transportation - - - - Unrestricted (deficit) 12,030,042 37,517,173 2,387,759 2,337,469 Total net position82,049,789$ 75,648,359$ 18,719,583$ 20,866,540$ (Continued) City of PleasantonStatement of Net Position (Continued)Proprietary FundsJune 30, 2024Business-Type Activities - Enterprise Funds See accompanying Notes to the Basic Financial Statements. 50

GovernmentalActivitiesNonmajor InternalEnterprise Funds Totals Service FundsLIABILITIESCurrent liabilities:Accounts payable 250,297 11,657,372 1,785,018Payroll payable 6,909 103,306 -Accrued interest - 145,778 12,115Refundable deposits - 513,342 -Unearned revenues 919,085 1,334,738 -Due to other funds - 333,828 -Accrued compensated absences - - 1,447,930 Claims payable - - 1,735,273 Financed purchases payable - 33,057 540,531 Lease payable - 102,077 - Loan payable - 345,934 - Subscription liabilities - 124,958 - Bonds payable - 400,000 - Total current liabilities1,176,291 15,094,390 5,520,867 Noncurrent liabilities:Advances from other funds 500,000 1,272,128 - Accrued compensated absences - - 3,540,876 Claims payable - - 8,764,830 Financed purchases payable - 54,403 1,533,168 Lease payable - 119,848 - Loan payable - 8,550,198 - Subscription liabilities - 642,540 - Bonds payable - 18,834,574 - Net pension liability - 12,894,791 165,992,501 Net OPEB liability - 1,936,135 17,055,865 Total noncurrent liabilities500,000 44,304,617 196,887,240 Total liabilities1,676,291 59,399,007 202,408,107 DEFERRED INFLOW OF RESOURCESRelated to pensions - 68,641 4,530,800 Related to OPEB - 721,767 6,358,233 Total deferred inflows of resources- 790,408 10,889,033 NET POSITIONNet investment in capital assets 962,747 143,511,748 9,412,653 Restricted for pension - - 31,588,706 Restricted for debt service - 462,827 112,539 Restricted for transportation 592,917 592,917 - Unrestricted (deficit) (214,628) 54,057,815 (105,304,181) Total net position1,341,036$ 198,625,307$ (64,190,283)$ Adjustments to reflect the consolidation of internal service fund activities related to the proprietary funds28,018 Net position of business-type activities 198,653,325$ (Concluded) City of PleasantonStatement of Net Position (Continued)Proprietary FundsJune 30, 2024Business-Type Activities -Enterprise Funds See accompanying Notes to the Basic Financial Statements. 51

Water Sewer Golf Storm DrainOPERATING REVENUES:Charges for services 33,117,123$ 16,837,884$ 6,314,582$ 528,755$ Miscellaneous 830,972 11,861 - 364,139 Total operating revenues33,948,095 16,849,745 6,314,582 892,894 OPERATING EXPENSES:Personnel services 5,272,129 1,913,302 - 557,224 Transportation 84,005 25,910 - 3,400 Repairs and maintenance 425,874 1,008,711 1,749 17,518 Materials, supplies and services 28,532,519 14,081,063 4,864,434 971,950 Depreciation/amortization 4,112,048 2,659,665 1,655,548 1,083,401 Total operating expenses38,426,575 19,688,651 6,521,731 2,633,493 OPERATING INCOME (LOSS)(4,478,480) (2,838,906) (207,149) (1,740,599) NONOPERATING INCOME (EXPENSES):Intergovernmental 148,825 83,392 - 51,676 Interest income & loss on fair value of investments 1,389,465 1,080,726 (38,383) (31,885) Interest and fiscal charges (431,667) - (2,231) - Gain on disposal of capital assets - - - - Gain from equity interest in joint ventures - 1,143,570 - - Total nonoperating income (expense)1,106,623 2,307,688 (40,614) 19,791 INCOME BEFORE TRANSFERS AND CAPITAL CONTRIBUTIONS(3,371,857) (531,218) (247,763) (1,720,808) TRANSFERS AND CAPITAL CONTRIBUTIONS:Capital contribution revenue 278,000 159,000 - 441,000 Capital contribution (expense) (570,928) - - - Transfers in 1,323,374 130,189 - 1,725,000 Transfers out - - (531,780) - Total transfers and capital contributions1,030,446 289,189 (531,780) 2,166,000 CHANGES IN NET POSITION(2,341,411) (242,029) (779,543) 445,192 NET POSITION:Beginning of year, as previously presented as of June 30, 2023 84,389,526 75,856,341 19,499,126 20,421,348 Error corrections 1,674 34,047 - - Beginning of year, as restated (Note 15) 84,391,200 75,890,388 19,499,126 20,421,348 End of year 82,049,789$ 75,648,359$ 18,719,583$ 20,866,540$ (Continued) Business-Type Activities - Enterprise Funds City of PleasantonStatement of Revenues, Expenses, and Changes in Net PositionFor the Year Ended June 30, 2024Proprietary Funds See accompanying Notes to the Basic Financial Statements 52

GovernmentalActivitiesNonmajor InternalEnterprise Funds Totals Service FundsOPERATING REVENUES:Charges for services 191,901$ 56,990,245$ 20,496,734$ Miscellaneous 5,160 1,212,132 89,316 Total operating revenues197,061 58,202,377 20,586,050 OPERATING EXPENSES:Personnel services 73,305 7,815,960 10,056,874 Transportation 66,010 179,325 264,771 Repairs and maintenance - 1,453,852 785,992 Materials, supplies and services 801,607 49,251,573 8,536,117 Depreciation/amortization 57,209 9,567,871 2,041,205 Total operating expenses998,131 68,268,581 21,684,959 OPERATING INCOME (LOSS)(801,070) (10,066,204) (1,098,909) NONOPERATING INCOME (EXPENSES):Intergovernmental 586,743 870,636 - Interest income & loss on fair value of investments 55,110 2,455,033 4,661,140 Interest and fiscal charges - (433,898) (151,031) Gain on disposal of capital assets - - 100,408 Gain from equity interest in joint ventures - 1,143,570 - Total nonoperating income641,853 4,035,341 4,610,517 INCOME BEFORE TRANSFERS AND CAPITAL CONTRIBUTIONS(159,217) (6,030,863) 3,511,608 TRANSFERS AND CAPITAL CONTRIBUTIONS:Capital contribution revenue - 878,000 - Capital contribution (expense) - (570,928) - Transfers in 131,396 3,309,959 - Transfers out - (531,780) (2,023,132) Total transfers and capital contributions131,396 3,085,251 (2,023,132) CHANGES IN NET POSITION(27,821) (2,945,612) 1,488,476 NET POSITION:Beginning of year, as previously presented as of June 30, 2023 1,647,293 201,813,634 (65,537,651) Error corrections (278,436) (242,715) (141,108) Beginning of year, as restated (Note 15) 1,368,857 201,570,919 (65,678,759) End of year 1,341,036$ 198,625,307$ (64,190,283)$ Changes in Net Position, per the Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds(2,945,612)$ Adjustment to reflect the consolidation of current fiscal year internal service funds activities related to enterprise funds(1,014,258) (3,959,870)$ (Concluded)Changes in Net Position of Business-Type Activities per Statement of ActivitiesReconciliation of Changes in Net Position to the Statement of Activities:

City of PleasantonStatement of Revenues, Expenses, and Changes in Net Position (Continued)For the Year Ended June 30, 2024Business-Type Activities -Enterprise Funds Proprietary Funds See accompanying Notes to the Basic Financial Statements 53

Water Sewer Golf Storm DrainCASH FLOWS FROM OPERATING ACTIVITIES:Cash receipts from customers 31,215,280$ 16,573,800$ 6,350,550$ 892,372$ Cash payments to suppliers (27,098,880) (15,171,837) (4,788,075) (1,014,678)Cash payments to or on behalf of employees (5,663,187) (2,202,501) - (638,601)Claims incurred - - - -Net cash provided by operating activities(1,546,787) (800,538) 1,562,475 (760,907) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:Interfund receipts 2,095,502 130,189 1,725,000 Interfund payments - - (1,664,170) - Intergovernmental receipts 148,825 83,392 - 51,676 Net cash provided by (used in) noncapital financing activities2,244,327 213,581 (1,664,170) 1,776,676 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:Capital grants and contributions 278,000 159,000 - 441,000 Contribution made (570,928) - - - Acquisition of capital assets (4,531,978) (1,369,396) - (894,115) Proceeds from issuance of debts 19,234,574 - - Principal payments on capital debt (2,382,612) - (136,501) - Interest paid on capital debt (368,868) - (2,231) - Proceeds from sales of capital assets - - - - Net cash (used in) capital and relatedfinancing activities11,658,188 (1,210,396) (138,732) (453,115) CASH FLOWS FROM INVESTING ACTIVITIES:Investment earnings 1,400,873 1,076,921 (39,295) (35,186) Net cash provided by (used in) investing activities1,400,873 1,076,921 (39,295) (35,186) Net change in cash and cash equivalents13,756,601 (720,432) (279,722) 527,468CASH AND CASH EQUIVALENTS:Beginning of year 23,289,828 22,003,266 3,854,559 2,695,754End of year 37,046,429$ 21,282,834$ 3,574,837$ 3,223,222$ CASH AND CASH EQUIVALENTS:Cash and investments 17,895,497$ 21,282,834$ 3,574,837$ 3,223,222$ Cash and investments with fiscal agent 19,150,932 - - - Total cash and cash equivalents37,046,429$ 21,282,834$ 3,574,837$ 3,223,222$ NONCASH ITEMS:Acquisition of subscription assets403,433$ -$ -$ -$ Acquisition of financed purchase assets-$ -$ 11,027$ -$ Acquisition of lease assets-$ -$ 320,902$ -$ Issuance of subscription liabilities403,433$ -$ -$ -$ Issuance of financed purchase-$ -$ 11,027$ -$ Issuance of lease liabilities-$ -$ 320,902$ -$ (Continued) Business-Type Activities - Enterprise Funds City of PleasantonStatement of Cash FlowsProprietary FundsFor the Year Ended June 30, 2024 See accompanying Notes to the Basic Financial Statements 54

GovernmentalActivitiesNonmajor InternalEnterprise Funds Totals Service FundsCASH FLOWS FROM OPERATING ACTIVITIES:Cash receipts from customers 318,787$ 55,350,789$ 20,548,590$ Cash payments to suppliers (752,241) (48,825,711) (11,599,332)Cash payments to or on behalf of employees (67,132) (8,571,421) (3,267,997)Claims incurred - - 477,008Net cash provided by operating activities(500,586) (2,046,343) 6,158,269 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:Interfund receipts 131,396 4,082,087 (1,118,132) Interfund payments - (1,664,170) (1,658,414) Intergovernmental receipts 601,504 885,397 - Net cash provided by (used in) noncapital financing activities732,900 3,303,314 (2,776,546) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:Capital grants and contributions - 878,000 - Contribution made - (570,928) - Acquisition of capital assets (146,699) (6,942,188) (905,769) Proceeds from issuance of debts - 19,234,574 1,237,932 Principal payments on capital debt - (2,519,113) (475,776) Interest paid on capital debt - (371,099) (138,916) Proceeds from sales of capital assets - - 156,885 Net cash (used in) capital and relatedfinancing activities(146,699) 9,709,246 (125,644) CASH FLOWS FROM INVESTING ACTIVITIES:Investment earnings 54,488 2,457,801 4,642,365 Net cash provided by (used in) investing activities54,488 2,457,801 4,642,365 Net change in cash and cash equivalents140,103 13,424,018 7,898,444 CASH AND CASH EQUIVALENTS:Beginning of year 1,789,307 53,632,714 64,584,737 End of year 1,929,410$ 67,056,732$ 72,483,181$ CASH AND CASH EQUIVALENTS:Cash and investments 1,929,410$ 47,905,800$ 40,781,936$ Cash and investments with fiscal agent - 19,150,932 31,701,245 Total cash and cash equivalents 1,929,410$ 67,056,732$ 72,483,181$ NONCASH ITEMS:Acquisition of subscription assets-$ 403,433$ 92,280$ Acquisition of financed purchase assets-$ 11,027$ 213,979$ Acquisition of lease assets-$ 320,902$ -$ Issuance of subscription liabilities-$ 403,433$ 92,280$ Issuance of financed purchase-$ 11,027$ 213,979$ Issuance of lease liabilities-$ 320,902$ -$ (Continued) Enterprise Funds Business-Type Activities -City of PleasantonStatement of Cash Flows (Continued)Proprietary FundsFor the Year Ended June 30, 2024 See accompanying Notes to the Basic Financial Statements 55

Water Sewer Golf Storm DrainReconciliation of Operating Income (Loss) toto Net Cash Provided by (Used in) Operating Activities:Operating (loss) (4,478,480)$ (2,838,906)$ (207,149)$ (1,740,599)$ Adjustments to reconcile operating (loss)to net cash provided by (used in) operating activities:Depreciation/amortization 4,112,048 2,659,665 1,655,548 1,083,401(Increase)/decrease in accounts receivable, net (2,787,798) (303,551) 21,519 (522)(Increase)/decrease in inventory and prepaids - - (14,219) -(Increase)/decrease in deferred outflows of resources related to pensions 97,187 70,730 - 28,072 (Increase)/decrease in deferred outflows of resources related to OPEB (210,878) (77,480) - (29,321) Increase/(decrease) in accounts payableand other accrued expenses 1,943,518 (56,153) 92,327 (21,810) Increase/(decrease) in accrued payroll liabilities 296 (8,679) - (1,546) Increase/(decrease) in deposits payable 54,983 - 3,711 - Increase/(decrease) in unearned revenue - 27,606 10,738 - Increase/(decrease) in claims payable - - - - Increase/(decrease) in pension liabilities 13,795 (103,876) - (62,795) Increase/(decrease) in OPEB liabilities 118,758 25,742 - 23,888 Increase/(decrease) in deferred inflows of resources related to pensions (42,971) (19,583) - (5,560) Increase/(decrease) in deferred inflows of resources related to OPEB (367,245) (176,053) - (34,115) Net cash provided by (used in) operating activities (1,546,787)$ (800,538)$ 1,562,475$ (760,907)$ (Continued) Business-Type Activities - Enterprise Funds For the Year Ended June 30, 2024City of PleasantonStatement of Cash Flows (Continued)Proprietary Funds See accompanying Notes to the Basic Financial Statements 56

GovernmentalActivitiesNonmajor InternalEnterprise Funds Totals Service FundsReconciliation of Operating Income (Loss) toto Net Cash Provided by (Used in) Operating Activities:Operating (loss) (801,070)$ (10,066,204)$ (1,098,909)$ Adjustments to reconcile operating (loss)to net cash provided by (used in) operating activities:Depreciation/amortization 57,209 9,567,871 2,041,205(Increase)/decrease in accounts receivable, net 1,100 (3,069,252) (37,460)(Increase)/decrease in inventory and prepaids - (14,219) (1,158,892)(Increase)/decrease in deferred outflows of resources related to pensions - 195,989 2,048,018 (Increase)/decrease in deferred outflows of resources related to OPEB - (317,679) (3,131,319) Increase/(decrease) in accounts payableand other accrued expenses 115,376 2,073,258 (853,559) Increase/(decrease) in accrued payroll liabilities 6,173 (3,756) 387,735 Increase/(decrease) in deposits payable - 58,694 - Increase/(decrease) in unearned revenue 120,626 158,970 - Increase/(decrease) in claims payable - - 477,008 Increase/(decrease) in pension liabilities - (152,876) 13,222,729 Increase/(decrease) in OPEB liabilities - 168,388 2,129,612 Increase/(decrease) in deferred inflows of resources related to pensions - (68,114) (3,256,311) Increase/(decrease) in deferred inflows of resources related to OPEB - (577,413) (4,611,588) Net cash provided by (used in) operating activities (500,586)$ (2,046,343)$ 6,158,269$ (Concluded) Business-Type Activities -Enterprise Funds For the Year Ended June 30, 2024City of PleasantonStatement of Cash Flows (Continued)Proprietary Funds See accompanying Notes to the Basic Financial Statements 57

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FIDUCIARY FUND FINANCIAL STATEMENTSPrivate-Purpose Trust Fund -This fund accounts for the Pleasanton Township County Water District (P.T.C.W.D.) #3 Trust Fund.The Trust received money in 1973 from the P.T.C.W.D. #3 and the funds may be used in the future to maintain the private road thatserves the City's water tanks.Custodial Funds - Custodial funds report fiduciary activities that are not held in a trust or equivalent arrangement. 59

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Private-Purpose TrustCustodialFund FundsASSETS:Pooled cash and investments 319,421$ 8,532,000$ Receivables:Accounts 6,525 1,966,520 Taxes - 631,997 Accrued interest 728 14,772 Total assets326,674 11,145,289LIABILITIES:Accounts payable 102 2,372,913 Deposits payable - 12,672 Total liabilities102 2,385,585 NET POSITION:Restricted for other government agencies 326,572 185,844 Restricted for Pleasanton Downtown Association - 1,242 Restricted for Livermore Share of LPFD - 8,572,618 Total net position326,572$ 8,759,704$ June 30, 2024Statement of Fiduciary Net PositionCity of PleasantonFiduciary Funds See accompanying Notes to the Basic Financial Statements61

Private-Purpose TrustCustodialFund FundsADDITIONS:Retired employees contributions -$ 819,291$ Taxes - 78,404 Intergovernmental - 9,934,337 Interest and change on fair value of investments 14,811 376,576 Miscellaneous 325 615,800 Total additions15,136 11,824,408 DEDUCTIONS:Retiree benefits - 922,071 Contractual services 16,690 9,020,548 Miscellaneous - 5,374 Total deductions16,690 9,947,993 Changes in net position(1,554) 1,876,415 NET POSITION:Beginning of year, as previously presented as of June 30, 2023 328,126 (2,645,711) Error corrections - 9,529,000 Beginning of year, as restated (Note 15) 328,126 6,883,289 End of year326,572$ 8,759,704$ City of PleasantonStatement of Changes in Fiduciary Net PositionFiduciary FundsFor the Year Ended June 30, 2024 See accompanying Notes to the Basic Financial Statements.62

63 NOTES TO THE BASIC FINANCIAL STATEMENTS

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City of Pleasanton Index to Notes to the Basic Financial Statements For the Year Ended June 30, 2024 65 Page Note 1 – Summary of Significant Accounting Policies ............................................................................................. 69 A. Reporting Entity ............................................................................................................................................... 69 B. Basis of Accounting and Measurement Focus.................................................................................................. 69 C. Cash, Cash Equivalents and Investments ......................................................................................................... 73 D. Restricted Cash and Investments ...................................................................................................................... 73 E. Fair Value Measurements ................................................................................................................................. 74 F. Receivables ....................................................................................................................................................... 74 G. Notes Receivable .............................................................................................................................................. 74 H. Interfund Transactions ...................................................................................................................................... 74 I. Inventory ........................................................................................................................................................... 75 J. Capital Assets ................................................................................................................................................... 75 K. Deferred Inflows/Outflows of Resources ......................................................................................................... 75 L. Compensated Absences .................................................................................................................................... 75 M. Leases ............................................................................................................................................................... 76 N. Subscription-Based Information Technology Arrangements ........................................................................... 76 O. Claims and Judgments ...................................................................................................................................... 77 P. Long-Term Debt ............................................................................................................................................... 77 Q. Interest Payable ................................................................................................................................................ 78 R. Pension Plans .................................................................................................................................................... 78 S. Other Postemployment Benefits (“OPEB”) Plan ............................................................................................. 78 T. Net Position ...................................................................................................................................................... 79 U. Fund Balances .................................................................................................................................................. 79 V. Property Taxes .................................................................................................................................................. 80 W. Use of Estimates ............................................................................................................................................... 81 Note 2 – Stewardship, Compliance, And Accountability ......................................................................................... 81 A. Violations of Legal or Contractual Provisions ................................................................................................. 81 B. Deficit Fund Balances/Net Position ................................................................................................................. 81 Note 3 – Cash and Investments .................................................................................................................................. 82 A. Deposits ............................................................................................................................................................ 83 B. Investments ....................................................................................................................................................... 83 C. Interest Rate Risk ............................................................................................................................................. 84 D. Fair Value Measurements ................................................................................................................................. 84 E. Credit Risk ........................................................................................................................................................ 85 F. External Investment Pool.................................................................................................................................. 86 Note 4 – Notes Receivable ........................................................................................................................................... 86 Note 5 – Leases Receivable ......................................................................................................................................... 92 Note 6 – Interfund Transactions ................................................................................................................................ 92 A. Due To/From Other Funds ............................................................................................................................... 92 B. Advances To/From Other Funds ...................................................................................................................... 93 C. Transfers In/Out ................................................................................................................................................ 94

City of Pleasanton Index to Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 66 Page Note 7 – Capital Assets ................................................................................................................................................ 95 A. Governmental Activities ................................................................................................................................... 95 B. Business-Type Activities .................................................................................................................................. 96 Note 8 – Long-Term Liabilities .................................................................................................................................. 97 A. Governmental Activities ................................................................................................................................... 97 B. Business-Type Activities .................................................................................................................................. 99 C. Debt Without City Commitment ..................................................................................................................... 103 D. Legal Debt Limit ............................................................................................................................................. 103 E. Arbitrage and Debt Covenant Compliance ...................................................................................................... 103 Note 9 – Risk Management ........................................................................................................................................ 104 Note 10 – Membership in Insurance Pool, Investment In in Joint Ventures, and Jointly Governed Organization ...................................................................................................................... 105 A. Bay Cities Joint Powers Insurance Authority .................................................................................................. 105 B. Local Agency Workers' Compensation Excess Joint Powers Authority ......................................................... 105 C. Livermore-Amador Valley Waste Management Agency ................................................................................ 106 D. Livermore-Amador Valley Transit Authority ................................................................................................. 106 E. Tri-Valley Transportation Council .................................................................................................................. 106 F. Livermore-Pleasanton Fire Department .......................................................................................................... 106 G. East Bay Regional Communications System Authority .................................................................................. 108 H. Alameda County Transportation Commission ................................................................................................ 108 Note 11 – Fund Balances ............................................................................................................................................ 109 Note 12 – Defined Benefit Pension Plan .................................................................................................................... 110 A. General Information about the Pension Plans and Summary of Balances by Plan ......................................... 110 B. Miscellaneous Plan .......................................................................................................................................... 111 C. Safety (Police) Plan ......................................................................................................................................... 114 D. LPFD Safety (Fire) Plan .................................................................................................................................. 117 E. Information Common to the Miscellaneous and Safety Plans ......................................................................... 120 Note 13 – Post-Employment Health Care Benefits .................................................................................................. 121 A. Plan Description and Benefits Provided .......................................................................................................... 121 B. Funding Policy ................................................................................................................................................. 124 C. Net OPEB Liability ......................................................................................................................................... 124 D. City of Pleasanton Retiree Healthcare Plan Changes in Net OPEB Liability ................................................. 125 E. Livermore-Pleasanton Fire Department Retiree Healthcare Plan .................................................................... 127

City of Pleasanton Index to Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 67 Page Note 14 – Commitments and Contingencies ............................................................................................................. 129 A. Animal Shelter ................................................................................................................................................. 129 B. Lawsuits in the Normal Course of Business .................................................................................................... 129 C. LAVWMA Bonds ........................................................................................................................................... 129 D. Construction Commitments ............................................................................................................................. 130 Note 15 – Changes to or within the Financial Reporting Entity and Error Corrections ..................................... 131

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City of Pleasanton Notes to the Basic Financial Statements For the Year Ended June 30, 2024 69 Note 1 – Summary of Significant Accounting Policies The basic financial statements of the City of Pleasanton, California (the “City”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) as applied to governmental units. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The most significant of the City's accounting policies are described below. A. Reporting Entity The City was incorporated on June 18, 1894, and operates under a Council-Manager form of government. The City Council consists of five elected members. The following services are provided by the City to its citizens: police, fire, public works, water, sewer, economic development, parks and recreation, planning and community development, general administration, library, golf, and cemetery. As required by U.S. GAAP, these basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable and there is financial benefit or burden relationship between the City and the component units. Blended component units, although legally separate entities, are in substance, part of the City's operations, and data from these units are combined with data of the City. Each blended component unit has a June 30 year-end. The City had no discretely presented component units. The following entities are reported as blended component units of the City as the component units' governing bodies are the same as the governing body of the City and management of the primary government has operational responsibility for the component units. There are no separately issued financial statements for the following blended component units: Housing Authority of the City of Pleasanton, California (the “Housing Authority”) - The Housing Authority was established in 1943. The purpose of the Housing Authority is to advocate for housing units and services for low and moderate income families. In accordance with Section 2.36 of the Municipal Code, the Pleasanton City Council serves as the Board of Directors for the Housing Authority of the City of Pleasanton. Pleasanton Joint Powers Financing Authority - In June 1993, the Pleasanton Joint Powers Financing Authority (the “PJPFA”) was formed by a Joint Exercise of Powers Agreement between the City of Pleasanton and the Housing Authority. The PJPFA is a blended component unit of the City and the financial operations of the PJPFA are included in the City of Pleasanton's financial statements. 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 with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position, revenues, and expenditures or expenses as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Government-Wide Financial Statements The City's 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. Fiduciary activities of the City are not included in these statements.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 70 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Government-Wide Financial Statements (Continued) These government-wide financial statements are presented on an "economic resources" measurement focus and the full accrual basis of accounting. Accordingly, all of the City's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Certain types of transactions are reported as program revenues for the City in three categories: Charges for services Operating grants and contributions Capital grants and contributions Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated: Due from/to other funds Advances to/from other funds Transfers in/out Interfund charges 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 nonmajor funds in aggregate. 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 applicable criteria. 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, deferred outflows of resources, current liabilities, and deferred inflows of resources are included on the Balance Sheet. 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 assets.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 71 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued) Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are recorded when received in cash, except that revenues subject to accrual (generally 90 days after year-end, with the exception of property tax for which the accrual period is 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, sales tax, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred. The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34. The City reports the following major governmental funds: The General Fund – is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes such activities as general government, public safety, community development, public works, and community activities. The Lower Income Housing Fund – is a special revenue fund used to account for and report the proceeds of housing in-lieu fees paid by developers of residential, commercial, and office property. These revenues are used to provide financial assistance towards meeting the affordable housing guidelines detailed in the housing element of the City's General Plan. The Miscellaneous Grants Fund – is a special revenue fund that includes various grant revenues, including funding for the Used Oil program, law enforcement expenditures, literacy programs, and miscellaneous City projects. The Miscellaneous Capital Improvement Programs Fund – is a capital projects fund that receives contributions from the General Fund to be used for design and construction of facilities and infrastructure as adopted in the annual miscellaneous capital improvement program. Proprietary Fund Financial Statements Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses, and Changes in Net Position, and a Statement of Cash Flows for each major proprietary fund and nonmajor funds in aggregate. A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental and business-type activities in the government-wide financial statements as appropriate. Proprietary funds are accounted for using the "economic resources" measurement focus and the full accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses, and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 72 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued) Operating revenues in a 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 City reports the following major enterprise funds: The Water Fund - accounts for the operation and maintenance of the City's water utility, a self-supporting activity, which provides services on a user-charge basis to residences and businesses. The Sewer Fund - accounts for the operation and maintenance of the City's sewer collection system and related facilities. It is a self-supporting activity, which provides services on a user-charge basis to residences and businesses. The Golf Fund - accounts for the daily operation and maintenance of the City's golf course, Callippe Preserve Golf Course. The City currently contracts with Pleasanton Golf, LLC (CourseCo, Inc.) to manage and maintain the golf course and its facilities. This fund also accounts for golf course capital assets and the accumulation of funds for payment of golf debt service. The Storm Drain Fund - accounts for the operation and maintenance of the City's storm system. The revenue source for this fund is the urban runoff annual assessment fee levied on property owners and a subsidy from the General Fund. The expenses accounted for in this fund are for the federally mandated program to reduce pollutants to the Bay and other expenses related to maintaining the City's storm drain system. The City also reports the following types of proprietary funds: The Internal Service Funds - account for the City's employee benefits, public art acquisition and maintenance, equipment replacement and renovations provided to City departments or to other governments, and self-insurance programs for workers' compensation and general liability on a cost-reimbursement basis. This fund also accounts for the retiree insurance reserve, a portion of the PARS Section 115 Trust, and unplanned and unfunded priority city enhancements. 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 custodial funds and a private-purpose trust fund. Custodial funds report fiduciary activities that are not held in a trust or equivalent arrangement. The private-purpose trust fund and custodial funds are accounted for using the "economic resources" measurement focus and the full accrual basis of accounting. These fiduciary fund activity assets are controlled by the City and the assets are not derived 1) solely from the government’s own-source revenues or 2) from government-mandated nonexchange transactions or voluntary nonexchange transactions.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 73 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Fiduciary Fund Financial Statements (Continued) The City reports the following fiduciary funds: The Private-Purpose Trust Fund - accounts for the P.T.C.W.D. #3 Trust Fund. The Trust received money in 1973 from the Pleasanton Township County Water District #3 and the funds may be used in the future to maintain the private road that serves the City's water tanks. The Custodial Funds - report fiduciary activities that are not held in a trust or equivalent arrangement. These activities include retiree insurance, downtown merchant improvements, asset forfeitures, miscellaneous agencies, and the City of Livermore share only of the Livermore-Pleasanton Fire Department activities. C. Cash, Cash Equivalents 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 original maturity of three months or less from date of acquisition. Cash and cash equivalents are combined with investments and displayed as Pooled Cash and Investments. 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. Certain disclosure requirements, if applicable, for Deposits and Investment Risks are in the following areas: Interest Rate Risk Credit Risk - Overall - Custodial Credit Risk - Concentration of Credit Risk Foreign Currency Risk For purposes of the statement of cash flows of the proprietary funds types, cash and cash equivalents include all pooled cash and investments, as the City operates an internal cash management pool which maintains the general characteristics of a demand deposit account. D. Restricted Cash and Investments Restricted cash and investments include amounts held by fiscal agents for the redemption of bonded debt and for acquisition and construction of capital projects, for deposits held for others within the enterprise funds, and for amounts held in an irrevocable trust for pension activities.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 74 Note 1 – Summary of Significant Accounting Policies (Continued) E. Fair Value Measurements Investments, unless otherwise specified, recorded at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The U.S. GAAP defines fair value, establishes a framework for measuring fair value, and establishes disclosures about fair value measurement. The three levels of the fair value measurement hierarchy are described below: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are inputs - other than quoted prices included within Level 1 - that are observable for an asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for an asset or liability. If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement. F. Receivables During the course of normal operations, the City carries various receivable balances that are shown net of allowances for doubtful accounts for taxes, interest, services, utilities and special assessments. The City maintains allowances for doubtful accounts of $50,000 in the Business Support Program Nonmajor Governmental Fund, $60,000 in the Water Enterprise Fund, and $40,000 in the Sewer Enterprise Fund. G. Notes Receivable The City administers several housing and small business subsidy programs and issues loans to qualified applicants. Management has determined that many of these loans may be forgiven, renegotiated, or extended if certain terms and conditions are met. As of June 30, 2024, it was determined that $19.9 million of the $23.7 million loan portfolio is not expected to be collected ultimately. The loans are recorded net of an estimated allowance for potentially uncollectible loans. H. Interfund Transactions Interfund transactions are reflected as either loans, services provided, reimbursements, or transfers. Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). Advances between funds, reported in the fund financial statements, are classified as nonspendable fund balance in the applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances”. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 75 Note 1 – Summary of Significant Accounting Policies (Continued) I. Inventory Inventory at the City's Callippe Preserve Golf Course is valued at the lower of cost or market; cost is determined using the moving average costing method for the golf shop merchandise. Inventory supplies at the golf course restaurant is valued at cost, using the first-in first-out costing method. J. Capital Assets The City's assets are capitalized at historical cost or estimated historical cost. City policy has set the capitalization threshold for reporting general capital assets and subscriptions at $5,000, for CIP projects at $50,000, and for reporting infrastructure (streets, water, sewer and storm drains) at $100,000. All streetlights and traffic signals are included. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are recorded at acquisition value when received. Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows: Assets YearsBuildings and Improvements 20-50 yearsMachinery, Vehicles and Equipment 5-20 yearsInfrastructure 20-40 yearsSubscription assets 3-5 years The City has included the value of all infrastructure in the current Basic Financial Statements. Capital assets that meet the definition of a major infrastructure network or extend the life of existing infrastructure networks are capitalized as infrastructure. Infrastructure networks include: roads, bridges, water, sewer, drainage systems, and lighting systems. K. Deferred Inflows/Outflows of Resources The Statement of Net Position and the Balance Sheet report separate sections for deferred outflows of resources and deferred inflows of resources, when applicable. Deferred Outflows of Resources represent a consumption of net assets that applies to future periods. Deferred Inflows of Resources represent an acquisition of net assets that applies to future periods. L. Compensated Absences Accumulated unpaid vacation and compensatory time is accrued in and liquidated from the Employee Benefits Internal Service Fund using the accrual basis of accounting. Sick leave with pay is granted to all eligible employees. Sick leave is not considered a right which employees may use at their discretion, but is allowed only for specific purposes as explained in the City's personnel policies. The City accrues accumulated unpaid compensated absences when earned by the employee. The City records both an asset funded by the operating funds and a liability in its Employee Benefits Internal Service Fund to recognize the financial effect of unused vacation and other compensated leaves.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 76 Note 1 – Summary of Significant Accounting Policies (Continued) M. Leases A lease is defined as a contract that conveys control of the rights to use another entity’s nonfinancial asset as specified in the contract for a period of time in an exchange or exchange-like transaction. The City recognizes lease receivables of $5,000 or more. City as Lessee: The City has one noncancellable lease contract of nonfinancial assets with UBEO West LLC. (See Note 8A). The City recognizes a lease liability and an intangible right-to-use lease asset in the government-wide and fund financial statements. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be received during the lease term. Subsequently, the lease liability is reduced by the principal portion of the 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. Subsequently, the lease asset is amortized on a straight-line basis over its useful life. City as Lessor: The City is a lessor for five noncancellable leases of 8251 Santos Ranch Road, 3801 Doolan Road Cell Tower, 3998 Foothill Road, 900 Santos Ranch Road, and the Case Avenue land lease (See Note 5). The City recognizes a lease receivable and a deferred inflow of resources in the governmentwide 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. 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. N. Subscription-Based Information Technology Arrangements The City is a subscriber for noncancellable subscriptions of information technology services. The City recognizes a subscription liability and an intangible right-to-use subscription asset (subscription asset) in the government-wide financial statements. The City recognizes subscription liabilities with an initial, individual value of $5,000 or more.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 77 Note 1 – Summary of Significant Accounting Policies (Continued) N. Subscription-Based Information Technology Arrangements (Continued) At the commencement of a subscription, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to subscriptions include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) lease term, and (3) subscription payments. The City uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by the vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscriptions. 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 that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement of its subscriptions 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. O. Claims and Judgments The City records a liability to reflect an actuarial estimate uninsured loss for both general liability claims (including property damage claims) and workers’ compensation claims. The estimated liability for workers’ compensation claims and general liability claims includes “incurred but not reported” (“IBNR”) claims. There is no fixed payment schedule to pay these liabilities. This liability is recorded in the internal service fund that accounts for the City’s self-insurance activities. P. Long-Term Debt In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities and business-type activities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are recognized in the period in which they occur. In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 78 Note 1 – Summary of Significant Accounting Policies (Continued) Q. Interest Payable In the government-wide financial statements, interest payable on long-term debt is recognized when the liability is incurred for governmental activities and business-type activities. In the fund financial statements, proprietary fund types recognize the interest payable when the liability is incurred. R. Pension Plans For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The following timeframes are used for pension reporting: CalPERSValuation Date June 30, 2022Measurement Date June 30, 2023Measurement Period July 1, 2022 - June 30, 2023 Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and inflows of resources related to pensions and are to be recognized in further pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized on a straght-line basis over five years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. S. Other Postemployment Benefits (“OPEB”) Plan For the purpose of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments, which are reported at amortized cost. The following timeframes are used for OPEB reporting: OPEBValuation Date June 30, 2023Measurement Date June 30, 2023Measurement Period July 1, 2022 - June 30, 2023

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 79 Note 1 – Summary of Significant Accounting Policies (Continued) S. Other Postemployment Benefits (“OPEB”) Plan (Continued) Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the sources of gain or loss. The difference between projected and actual earnings is amortized on a straight-line basis over five years. All other amounts are amortized on a straight-line basis over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) at the beginning of the measurement period. T. Net Position In the government-wide financial statements and proprietary fund financial statements, net position is classified as follows: Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation/amortization, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those assets and retention payable. Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. When expenses are incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first, then unrestricted net position as they are needed. U. Fund Balances In governmental fund financial statements, fund balances are categorized as follows: Nonspendable – Items that cannot be spent because they are not in spendable form, such as prepaid items, inventories, and loans receivable, items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds. Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation. Committed – Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body, and that remain binding unless removed in the same manner. The City Council is considered the highest authority for the City. Adoption of a resolution by the City Council is required to commit resources or to rescind the commitment.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 80 Note 1 – Summary of Significant Accounting Policies (Continued) U. Fund Balances (Continued) Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. Unassigned – This amount is for any portion of the fund balances that do not fall into one of the above categories. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. On June 21, 2011, the City Council adopted Resolution No. 11-463 classifying the City's fund balances in conformance with Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. Fund balance commitments may be established only by formal action (either resolution or ordinance, as each is equally binding) of the City Council, the City's highest level of decision-making authority. Commitments may be modified or rescinded only by the City Council taking the same formal action that established the commitment originally. Assignment of fund balances to specific purposes may be established, modified, or rescinded by the City Council or the City's Director of Finance. Resolution No. 11-463 designated the Director of Finance as the City official to determine and define the amounts of those components of fund balance that are classified as "Assigned Fund Balance." The General Fund is the only fund that reports a positive unassigned fund balance amount. The City has earmarked a portion of the unassigned fund balance to meet the City's operating reserve policy. In June of 2023, the City Council adopted the policy that requires the General Fund to maintain minimum reserves equal to 16.7 percent of operating expenses and target reserves equal to 20 percent of operating expenses. The City's objective is to utilize General Fund operating reserves to cover revenue shortfalls that would likely occur after a natural disaster. The target level of reserves equal to more than two months of operating expenses that will ensure the City can continue to make payroll and cover other operating expenses while the City recovers from the event. According to the reserve policy, the City will be able to use the reserve funds due to 1) economic uncertainty, 2) emergency including disasters through the City Council approval through a resolution or budget adoption. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is to apply restricted fund balance first. Further, when the components of unrestricted fund balance can be used for the same purpose, the City uses the unrestricted resources in the following order: committed, assigned, and unassigned. The description of each fund balance category is listed in the City’s adopted Governmental Fund Balance Policy. V. Property Taxes Property taxes are levied based on a fiscal year (July 1 - June 30). The property tax assessments are formally due on November 1 and February 1, and become delinquent as of December 10 and April 10, respectively. Taxes become a lien on the property effective January 1 of the preceding year.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 81 Note 1 – Summary of Significant Accounting Policies (Continued) W. Use of Estimates The preparation of basic financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from these estimates and assumptions. Note 2 – Stewardship, Compliance, and Accountability A. Violations of Legal or Contractual Provisions For the year ended June 30, 2024, the following funds exceeded appropriation amounts: FinalFunds Appropriations Expenditures ExcessNonmajor Governmental Funds:Special Projects Special Revenue Fund:AB1379 CASp Certification and Training Special Revenue Fund 5,000$ 10,907$ (5,907)$ B. Deficit Fund Balances/Net Position At June 30, 2024, the City reported deficit fund equities in the following funds: Fund Name Fund Type Deficit CauseEmployee Benefits Internal Service Fund (118,621,967)$ 1Retiree Insurance Reserve Internal Service Fund (11,375,449) 2 1. Deficit is primarily due to the recording of the net pension liability required by GASB Statement No. 68, Accounting and Financial Reporting for Pensions. The City will continue to make the required contributions each year based on the 30-year CalPERS payment amortization schedule. As described in Note 12A Funding Policy, in March 2018, the City established a Section 115 Pension Trust (Section 115 Trust) with an initial contribution of $28.0 million. The fair value of the Section 115 Trust at June 30, 2024, was $51.1 million. The City intends to use the Section 115 Trust to help make future pension contributions under the following conditions: Annual CalPERS employer pension contribution rate increase (in dollars) is greater than the growth rateof the City’s General Fund. The General Fund has a structural deficit that needs to be addressed (i.e. non-discretionary expenditures exceed revenues). General Fund reserves have been used and need to be replenished in order to maintain a reserve equal to at least 20.0 percent of General Fund expenditures. Paying off specific pension liabilities that will result in interest savings greater than interest earnings on the Section 115 Trust.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 82 Note 2 – Stewardship, Compliance, and Accountability (Continued) B. Deficit Fund Balances/Net Position (Continued) 2. Deficit is primarily due to the recording of the net OPEB liability as a result of the implementation of GASB Statement No. 75, Accounting and Financial Reporting for Post-employment Benefits Other Than Pensions. As described in Note 13B Funding Policy, in April 2011, the City established an OPEBirrevocable Trust (OPEB Trust). The City has been annually contributing to the OPEB Trust to pre-fund theCity’s amortized 30-year unfunded OPEB liability. As of June 30, 2024, the OPEB Trust had a balance of $73.6 million and the Net OPEB liability had a balance of $17.1 million. The City will use the OPEB Trust to fund future OPEB benefit payments. Note 3 – Cash and Investments The City maintains a cash and investments pool, which includes cash balances and authorized investments of all funds, that is available for use by all funds. The following is a summary of pooled cash and investments at June 30, 2024: Fiduciary Governmental Business-Type Fund StatementActivities Activities of Net Position TotalUnrestricted assets:Cash and investments 207,538,230$ 47,905,799$ 8,851,421$ 264,295,450$ Restricted assets:Cash and investments with fiscal agent 51,175,527 19,150,932 - 70,326,459 Total cash and investments258,713,757$ 67,056,731$ 8,851,421$ 334,621,909$ At June 30, 2024, the City's pooled cash and investments consisted of the following: Fair Value atJune 30, 2024Deposits:Cash on hand 7,625$ Restricted Cash 835,100 Deposits with Banks 18,827,169 Total deposits19,669,894 Investments:US Government Sponsored Enterprise Securities 150,955,945 Medium-Term Corporate Notes 24,048,950 California Local Agency Investment Fund 69,243,965 Supranationals 928,170 Water Revenue Bond - M oney M arket M utual Funds 18,711,997 PARS Trust - Mutual Funds 51,062,988 Total Investments 314,952,015 Total City Treasury334,621,909$

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 83 Note 3 – Cash and Investments (Continued) A. Deposits As of June 30, 2024, the book value of the City's cash with banks and petty cash was $19,669,894 and the associated bank balances were $18,807,203. The difference between the bank balance and the City's carrying amount represents outstanding checks and deposits in transit. Of the bank balance, $989,245 was covered by federal depository insurance and $17,328,803 was collateralized by the pledging financial institutions as required by Section 53652 of the California Government Code. The California Government Code requires California banks to secure a City's deposits by pledging government securities with a value of 110 percent of a City's deposits, or by pledging first trust deed mortgage notes having a value of 150 percent of a City's total deposits. B. Investments Under the provisions of the City's investment policy, and in accordance with Section 53601 of the California Government Code and Section 115 of the Internal Revenue Code, the City may invest or deposit in the following: * Authorized Maximum Maximumby Investment * Maximum Percentage Investment inAuthorized Investment Type Policy Maturity of Portfolio One IssuerSecurities of U.S. Government Agencies Yes 5 years 100%**30%Municipal Securities That Are California State and Local Agency Obligations Yes 5 years 30% 5%Municipal Securities from Other States Yes 5 years 30% 5%Obligations of the United States Treasury Yes 5 years 100% NoneBankers' Acceptances Yes 180 days 30% 5%Commercial Paper Yes 270 days 25% 5%Negotiable Certificates of Deposit Yes 5 years 30% NoneMedium-term Corporate Notes Yes 5 years 30% 5%Money Market Mutual Funds Yes n/a 20% NoneManaged Portfolio for Pension Liabilities Yes n/a None NoneCalifornia Asset Management Program (CAMP) Yes n/a 30% NoneSupranational Organizations Securities Yes 5 years 30% 10%Collateralized Bank Deposits Yes n/a 30% NoneAsset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized Mortgage Obligations Yes 5 years 20% 5%Repurchase and Reverse Repurchase Agreements Yes n/a 15% NoneNon-negotiable Certificates of Deposit (Time Deposits) Yes 5 years 30% NoneState of California Local Agency Investment Fund (LAIF) Yes n/a 100% None* Based on state law requirements or investment policy requirements, whichever is more restrictive. **The maximum percent of agency callable securities in the portfolio will be 20%GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, requires that the City's investments be carried at fair value instead of cost. Accordingly, the City adjusts the carrying value of its investments to reflect their fair value at each fiscal year-end and the effects of these adjustments are included in income for that fiscal year. Changes in fair value at the fiscal year ended June 30, 2024, from the fiscal year ended June 30, 2023, amounted to an unrealized gain of $12,223,784.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 84 Note 3 – Cash and Investments (Continued) C. Interest Rate Risk As a means of limiting its exposure to fair value losses arising from interest rates, the City's investment policy limits investments to a maximum maturity of five years. At June 30, 2024, the City had the following investment maturities: 1 Year 1 Year to 3 Years to Investment Type Total or Less 3 Years 5 YearsUS Government Sponsored Enterprise SecuritiesNon-callable 2,762,730$ -$ 2,762,730$ -$ Callable 148,193,215 5,728,080 142,465,135 - Medium-Term Corporate Notes 24,048,950 13,739,620 10,309,330 - Supranationals 928,170 - 928,170 - California Local Agency Investment Fund 69,243,965 69,243,965 - - Water Revenue Bond - Money Market Mutual Funds 18,711,997 18,711,997 - - PARS Section 115 Pension Trust Fund - Mutual Funds 51,062,988 51,062,988 - - Total investments314,952,015$ 158,486,650$ 156,465,365$ -$ Remaining Maturity During the year, the City held callable notes. Callable 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 that have embedded forwards or options. They are issued by corporations and by government-sponsored enterprises such as the Federal National Mortgage Association (FNMA), Federal Farm Credit Bank, Federal Home Loan Mortgage Corporation (FHLMC), and the Federal Home Loan Bank (FHLB). These securities could be called prior to maturity, depending on changes in interest rates. As of June 30, 2024, the City held $148,193,215 in callable government agencies, which amounted to 60.44 percent of total investments, excluding the Water Revenue Bond Money Market Mutual Funds and the PARS Section 115 Pension Trust Fund. D. Fair Value Measurements The City categorizes its fair value measurements within the fair value hierarchy established by U.S. GAAP. The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2024: Level 1 Level 2 Total US Government Sponsored Enterprise SecuritiesNon-callable -$ 2,762,730$ 2,762,730$ Callable - 148,193,215 148,193,215 Medium-Term Corporate Notes - 24,048,950 24,048,950 Supranationals - 928,170 928,170 Subtotal -$ 175,933,065$ Investments Exempt from Fair Value Hierarchy: California Local Agency Investment Fund 69,243,965 Water Revenue Bond - Money Market Mutual Funds 18,711,997 PARS Section 115 Pension Trust Fund - Mutual Funds 51,062,988 Total investments314,952,015$

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 85 Note 3 – Cash and Investments (Continued) D. Fair Value Measurements (Continued) U.S. Government agency securities and medium-term corporate notes, classified in Level 2 of the fair value hierarchy, are valued using matrix pricing techniques maintained by various pricing vendors. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices. These prices are obtained from various pricing sources by our custodian bank. E. Credit Risk Excluding the PARS Section 115 Pension Trust Fund, the City's policy, consistent with State law, limits investments in corporate notes to notes rated "A" or better by a nationally recognized statistical rating organization, including Moody's Investor's Service and Standard & Poor's. The City's investments are rated by the nationally recognized rating organizations, and as of June 30, 2024, the ratings, as well as the percentage of credit risk are as follows: Standard &Moody's Poor's PercentageUS Government Sponsored Enterprise Securities:Federal Farm Credit Bank Aaa AA + 4.73%Federal Home Loan Bank Aaa AA+ 45.07%Federal National M ortgage Association Aaa AA + 4.71%Federal Home Loan M ortgage Corporation Aaa AA+ 6.94%Medium-Term Corporate Notes:3M Company A3 BBB+ 0.80%Apple Inc. Aaa AA + 2.77%Exxon Mobil Corporation Aa2 AA- 2.00%JPMorgan Chase Bank NA Aa2 A+ 1.10%PACCAR Financial Corporation A1 A+ 0.54%Toyota Motor Credit Corp Al A+ 1.79%Truist Bank A3 A 0.79%Supranationals:International Finance Corp Aaa AAA 0.38% Concentration of Credit Risk - The City's Policy has the same maturity limits as the California Government Code. The City is allowed to purchase mutual funds up to 20 percent of the value of the portfolio. There are no specified maximum percentages for U.S. Treasury Obligations, U.S. government sponsored enterprise securities, and the external investment pool (California Local Agency Investment Fund). The City is in compliance with these provisions of the Policy. Investments in the securities of any individual issuers, other than U.S. Treasury Securities, mutual funds and the California Local Agency Investment Fund, that represent 5 percent or more of the City's total investments are as follows as of June 30, 2024: Percentage of U.S. Government Agencies Amount Invested InvestmentsFederal Home Loan Bank $ 110,715,325 45.07%Federal Home Loan M ortgage Corporation 17,043,300 6.94%

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 86 Note 3 – Cash and Investments (Continued) E. Credit Risk (Continued) For investments, custodial risk is the risk that in the event of failure of a depository financial institution or a counter party (e.g., broker-dealer) to a transaction, the City will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The City's investments, with the exception of money market funds, certificates of deposit and LAIF, are held in the name of the City for safekeeping by a third-party custodian, Bank of New York Mellon (BNYM). BNYM is a registered member of the Federal Reserve Bank. The City's PARS Trust is held by a third-party custodian, U.S. Bank. Securities held on the City's behalf by its third-party custodian are not at risk or commingled with other entities' securities, therefore removing the custodial risk for the City. F. External Investment Pool The City is a participant in the Local Agency Investment Fund (“LAIF”) which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. As of June 30, 2024, the City had $69,243,965 invested in LAIF. The fair value of the City’s position in the pool is the same as the value of the pool shares and reported at amortized cost which approximates fair value. Note 4 – Notes Receivable The following table summarizes the notes receivable outstanding as of June 30, 2024. A brief description of the funding sources for the housing loans are included in the table below. Detail for all housing loans and miscellaneous loans follow. Allowance for LoansGross Receivable Uncollectible Amount Receivables, netHousing Loans:Lower Income Housing Special Revenue Fund:Low Income Housing Project Loans3,130,637$ (2,132,575)$ 998,062$ Affordable Housing/Rehabilitation Home Loans432,673 (65,000) 367,673 Senior Housing Project Loans16,526,000 (16,526,000) - Total Lower Income Housing Special Revenue Fund 20,089,310 (18,723,575) 1,365,735 HOME Program Nonmajor Special Revenue Fund:Low Income Housing Project Loans160,000 - 160,000 Affordable Housing/Rehabilitation Home Loans1,395,163 (636,176) 758,987 Senior Housing Project Loans450,000 (450,000) - Total HOME Program Nonmajor Special Revenue Fund 2,005,163 (1,086,176) 918,987 CDBG Program Nonmajor Special Revenue Fund:Affordable Housing/Rehabilitation Home Loans402,447 (47,564) 354,883 Total Housing Loans22,496,920 (19,857,315) 2,639,605 Miscellaneous Loans:Sewer Connection Fee Loan15,007 (15,007) - Hacienda Business Park LED Project Loan22,274 - 22,274 Business Support Program Loans726,195 (50,000) 676,195 Hacienda Business Park Owners Association Loan426,416 - 426,416 Total Miscellaneous Loans1,189,892 (65,007) 1,124,885 Total City Loans 23,686,812$ (19,922,322)$ 3,764,490$

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 87 Note 4 – Notes Receivable (Continued) Housing Loans The City has loaned funds to private developers, individuals, and corporations for the development of affordable housing for seniors and low income residents. Funding for these loans are as follows: Lower Income Housing Special Revenue Fund - Through its Lower Income Housing Fund (LIHF), the City provides loans to private developers and individuals for the development and rehabilitation of affordable housing for seniors and low income residents. Programs within the LIHF include the Pleasanton Down Payment Assistance Loan Program (PDALP), the Housing Rehabilitation Program (HRP), and the Pleasanton Homeownership Assistance Program (PHAP). At June 30, 2024, the loan receivable, net was $1,365,735. The gross value of the loan receivable was $20,089,310 and allowance for uncollectible amounts $18,723,575. HOME Nonmajor Special Revenue Fund - Through its membership in the Alameda County HOME Consortium, the City receives an annual allocation of federal funds through the HOME Investment Partnership Program (HOME). The City receives its annual allocation based on a formula administered by the County of Alameda. The City has allocated its HOME funds primarily to agencies and programs that provide housing to low-income persons and households. HOME funds of $123,118 were received in FY 2023/24. At June 30, 2024, the loan receivable, net was $918,987. The gross value of the loan receivable was $2,005,163 and allowance for uncollectible amounts $1,086,176. CDBG Nonmajor Special Revenue Fund - As an "entitlement city" with a population greater than 50,000, the City receives an annual allocation of federal funds directly from the U.S. Department of Housing and Urban Development (HUD) through the Community Development Block Grant (CDBG) Program. The City makes its CDBG funds available annually for application by agencies that provide housing and services to low-income persons and households. CDBG funds of $182,387, were received in FY 2023/24. At June 30, 2024, the loan receivable, net was $354,883. The gross value of the loan receivable was $402,447 and allowance for uncollectible amounts $47,564. A detailed summary of each housing-related loan is presented below: Tri-Valley REACH, Inc. Loans -Beginning in January 1992, the City has entered into a series of agreements with REACH, Inc. (formerly HOUSE, Inc.), a local nonprofit agency, to provide funding to purchase below-market priced homes in Pleasanton for developmentally disabled adults who can live independently with supportive services. These loans do not include interest payments and no repayment of principal is due as long as REACH, Inc. owns the property and continues to use it for the intended purpose. Total REACH, Inc. loans outstanding as of June 30, 2024, were $1,447,531. Of this amount, $1,276,143 is funded by the HOME Program, $123,824 is funded from the City's Lower Income Housing Fund, and $47,564 is funded by the CDBG Program. The five REACH, Inc. loans currently outstanding are summarized in the following table: Date of Loan Loan Amount Funding SourcesJanuary 1992 75,000$ HOME ProgramJanuary 1997 201,440 HOME Program; Lower Income Housing FundAugust 2006 476,091 HOME Program; CDBG ProgramFebruary 2009 195,000 HOME ProgramMay 2010 200,000 HOME ProgramTotal 1,147,531$

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 88 Note 4 – Notes Receivable (Continued) Housing Loans (Continued) Case Avenue Associates - In 1996, the City loaned $766,063 to Case Avenue Associates to finance the construction of the Promenade Apartments, a mixed income rental housing development of very low-income, low-income and market rate units. This loan was to finance the construction of the low-income and very low-income units in the project and was comprised of two components: $636,063 funded by the Lower Income Housing Fund (LIHF), and $130,000 funded through the City's allocation of HOME Program funds. Both loans are reported in the LIHF. The $636,063 portion did not bear interest through 2007. Beginning in 2008, interest accrues at 2 percent and is payable from available cash flow from the project. Any interest not paid due to insufficient cash flow is deferred until the first year cash flow is available. All deferred interest and principal are due in full on the date of maturity, April 1, 2051. The $130,000 HOME portion bears no interest, and principal is to be paid in full on the date of maturity, April 1, 2051. Interest outstanding on the LIHF funded portion of the loan at June 30, 2024, was $9,272. The principal amounts outstanding at June 30, 2024, for the LIHF funded and the HOME funded portions were $636,063 and $130,000, respectively. Promenade Housing Associates - In 1996, the City loaned $231,999 to Promenade Housing Associates to finance the construction of the Promenade Apartments, a mixed income rental housing development of very low-income, low-income and market rate units. This loan was to finance the construction of affordable units in the project and was comprised of two components: $101,999 funded by the Lower Income Housing Fund (LIHF), and $130,000 funded through the City's allocation of HOME Program funds. Both loans are reported in the LIHF. The $101,999 portion did not bear interest through 2007. Beginning in 2008, interest accrues at 2 percent and is payable from available cash flow from the project. Any interest not paid due to insufficient cash flow is deferred until the first year cash flow is available. All deferred interest and principal are due in full on the date of maturity, April 1, 2051. The $130,000 HOME portion bears no interest and principal is to be paid in full on the date of maturity, April 1, 2051. Interest outstanding on the LIHF funded portion of the loan at June 30, 2024, was $1,486. The principal amounts outstanding at June 30, 2024, for the LIHF funded and the HOME funded portions were $101,999 and $130,000, respectively. Pleasanton Homeownership Assistance Program - As part of the Pleasanton Homeownership Assistance Program (PHAP) developed by the City to provide affordable housing opportunities for households of low- and moderate-income, loans are provided to eligible low- and moderate-income homebuyers for second mortgages and down payment assistance. In 2004, the City created the Down Payment Assistance (DPA) Program and amortized payments are made on half of the loan for the first ten years while payments are partially deferred for ten years on the other half. The DPA Program was revamped to the Pleasanton Downtown Assistance Loan Program (PDALP) in October 2020, which provides increased loan amounts of up to $100,000 and includes a shared appreciation repayment calculation. During FY 2023/24, the City received loan repayments totaling $13,889. The outstanding amount due to the City for these types of loans as of June 30, 2024, was $158,849. Kottinger Gardens Phase 1 Associates, L.P. (Affiliated Corporation with MidPen Housing Corporation) - On November 12, 2013, the City approved a Disposition, Development and Loan Agreement with MidPenHousing Corporation that provided for a $10,000,000 loan from the City's Lower Income Housing Fund (LIHF) for the development of the Kottinger Place affordable senior housing project. During FY 2014/15, the City appropriated an additional $3,750,000 from the LIHF for this project, increasing the project funding to $13,750,000. A total of $11,174,640 was drawn from this loan. Payments are to be made from excess distributable cash with the entire principal and interest due in November 2070. The principal and interest outstanding at June 30, 2024, were $11,174,640 and $1,117,841, respectively.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 89 Note 4 – Notes Receivable (Continued) Housing Loans (Continued) At June 30, 2024, the gross value of the loan receivable was $11,174,640 and the entire amount was offset with an allowance for uncollectible amounts. Also, during FY 2014/15, the City provided a separate predevelopment loan of $450,000 for the predevelopment costs of the Kottinger Place project. The loan was funded through the City's HOME Program. Interest accrues on the principal amount at 3 percent per annum. Payments are to be made from excess distributable cash with the entire principal and interest due in October 2071. The principal and interest outstanding at June 30, 2024, were $450,000 and $121,450, respectively. At June 30, 2024, the gross value of loan receivable was $450,000 and the entire amount was offset with an allowance for uncollectible amounts. Kottinger Gardens Phase 2 Associates, L.P. - On December 1, 2017, the City executed a Secured Promissory Note with Kottinger Gardens Phase 2 Associates, L.P. for $2,861,360, funded from the City's Lower Income Housing Fund, for the development of the Pleasanton Gardens affordable senior housing project. Interest accrues on the principal amount at 3 percent per annum. Payments are to be made from excess distributable cash with the entire principal and interest due in December 2074. The principal and interest outstanding at June 30, 2024, were $2,861,360 and $567,357, respectively. At June 30, 2024, the gross value of loan receivable was $2,861,360 and the allowance for uncollectible amount was $2,861,360. BLP Partnership, Inc. - In 2005, the City loaned $2,490,000 to BLP Partnership, Inc. for the predevelopment and construction of the Parkview assisted living facility. The loan requires an annual interest only payment of 10 percent ($249,000) for 55 years or until the loan is paid in full. Annual payments are based on the availability of surplus cash from the operation of the facility according to a "waterfall of payments" provision in the loan agreement, and any unpaid amounts are accrued to be paid from surplus cash in subsequent years. At maturity, on September 1, 2060, any unpaid principal and interest will be forgiven. Consequently, the City has recorded the accrued unpaid interest in an allowance for uncollectible accounts in its Lower Income Housing Fund. As of June 30, 2024, the accrued unpaid interest in the allowance for uncollectible amounts was $2,119,742 and the principal amount outstanding was $2,490,000. At June 30, 2024, the gross value of loan receivable was $2,490,000 and the entire amount was offset with an allowance for uncollectible amounts. Regional Affordable Housing Projects - The City has also allocated HOME funding via loans and grants to several regional affordable housing projects that have been deemed to provide a benefit to Pleasanton residents due to the unique populations they serve. There are three affordable housing loans outstanding which include: $80,000 to Housing Alliance for the construction of Lorenzo Creek apartments (28 units of rental housing in Castro Valley for homeless individuals and families with disabilities); $30,000 to the Deaf Senior Retirement Corporation for the construction of the Fremont Oak Gardens (50 units of rental housing in Fremont for very low income deaf seniors); and $50,000 to Affordable Housing Associates for the construction of the Carmen Avenue apartments (30 units of rental housing in Livermore for families that were formerly homeless and have special needs). All three loans are deferred, and the Fremont Oak Gardens and Carmen Avenue loans bear no interest. The Housing Alliance loan is subject to 3 percent interest, and payments are deferred for 15 years. Starting March 2021, payments are subject to available cash flow as determined by Alameda County (the lead agency in the multi-jurisdictional funding agreement). Interest outstanding on the Housing Alliance loan at June 30, 2024, was $43,800. The principal amount outstanding for all three loans at June 30, 2024, was $160,000.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 90 Note 4 – Notes Receivable (Continued) Housing Loans (Continued) Housing Rehabilitation Program - The Housing Rehabilitation Program (HRP) provides financial assistance for the improvement of properties occupied by very low- or low-income homeowners. These loans accrue 3 percent simple interest. Principal and interest are deferred for thirty years or until such time the property is sold or ceases to be the principal residence of the borrower. The program was revamped in August 2020, with a maximum loan amount of $150,000 that is deferred for 30 years at 1 percent interest, with the accrued interest capped at 50 percent of the loan. The majority of loans issued through the HRP have been funded using CDBG funds, with the exception of several loans that have been funded with HOME funds and Lower Income Housing funds. The City currently contracts with Amerinational Community Services to service the City's HRP loan portfolio. The outstanding principal and interest amounts of these loans funded by CDBG funds as of June 30, 2024, were $402,447 and $167,503, respectively. The outstanding principal and interest amounts of these loans funded by HOME funds as of June 30, 2024, were $119,020 and $41,013 respectively. The outstanding principal and interest amounts on these loans funded by Lower Income Housing funds as of June 30, 2024, were $150,000 and $1,129, respectively. Sunflower Irby, LLC - On April 13, 2018, the City executed a $250,000 loan agreement with Sunflower Irby, LLC to provide pre-development funding for the construction of Sunflower Hill, a 31-unit affordable rental housing development for special needs residents. On March 18, 2019, the City executed a $2,250,000 loan agreement with Sunflower Irby, LLC, which superseded in its entirety the April 13, 2018 loan agreement, and included $2,000,000 for construction of the housing development. The loan, funded from the Lower Income Housing Fund, accrues simple annual interest of 3 percent. The entire balance of the loan, together with accrued interest, is payable in full in May 2076. The principal and interest outstanding as of June 30, 2024, were $2,132,575 and $342,289, respectively. At June 30, 2024, the gross value of loan receivable was $2,132,575 and the entire amount was offset with an allowance for uncollectible amounts. Eden Housing/Ridge View Commons Associates - In 1988, the City loaned $4,000,000 to Eden Housing, Inc. for the development of Ridge View Commons, a rental housing development for low- and very-low income seniors. Funding for this loan came from a Department of Housing and Urban Development (HUD) grant through the Housing Development Grant (HODAG) program. The loan bears interest of 5 percent per annum and both principal and interest are payable annual interest rate, with repayment of principal and interest contingent on surplus cash availability. In 1999, the City provided an additional $2,250,000 from the Lower Income Housing Fund to Ridgeview Commons Associates, a partnership affiliated with Eden Housing, for the same project. In 2009/10, the City loaned another $225,000 to Ridgeview Commons Associates to buy out the limited partner’s (Chevron USA, Inc.) financial interest. This brought the total loan to $2,475,000, accruing interest at 5.5 percent annually and also payable only from surplus cash. On June 1, 2024, the City entered into an amended and restated loan agreement with Eden Housing/Ridge View Commons Associates. The new loan consolidates the prior loans into a principal amount of $16,624,383, including accrued interest, with a maturity date of 55 years. The new loan carries a 4.79 percent annual interest rate, is secured by an updated Leasehold Deed of Trust, and repayments remain contingent on surplus cash availability. Due to uncertainty about repayments, the City recorded an allowance for uncollectible amounts in its Lower Income Housing Fund for both principal and interest.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 91 Note 4 – Notes Receivable (Continued) Miscellaneous Loans are as follows: Sewer Connection Fee Loans - Loans are granted to restaurant owners to finance sewer connection fees. The loan program was adopted in 1989 to encourage restaurants to locate in the downtown area. In 1997, the City expanded the loan program to restaurants outside downtown Pleasanton. At June 30, 2024, the loan balance was $15,007, and the entire amount was deemed uncollectible. Hacienda Business Park LED Project Loan - In 2015, the City loaned $251,668 to the Hacienda Business Park Owners Association (HBPOA) for their share of the City LED Street Light Retrofit Capital Improvement Project. There are twenty-one (21) semi-annual payments due on the loan; each payment is due by June 22 and December 22 of each year. The interest rate adjusts annually based on the Local Agency Investment Fund interest calculated each January 2. The outstanding amount as of June 30, 2024, was $22,274. Business Support Program Loans - Due to the COVID-19 pandemic, in 2020, the City established a program to provide loans to local small businesses. Eligible businesses included those that are independently or locally owned, have a physical location in Pleasanton, were in good standing with the City and employ between 2-25 employees. Loan amounts were $2,900 for businesses located in the downtown district, and $2,500 for those outside of the downtown area. In 2021, the City increased the eligible loan amounts to $10,000 ($10,800 for downtown) for micro-enterprise businesses employing 2-10 employees and $20,000 ($21,600 for downtown) for businesses employing 11-25 employees. The loans are interest free. Loan repayments commenced on April 1, 2023, and are payable over 36 months. The outstanding amount as of June 30, 2024, was $726,195 and was offset with an allowance for uncollectible amounts of $50,000. Hacienda Business Park Owners Association Landscape Renovation Loan - In 2019, the City loaned $732,548 to the Hacienda Business Park Owners Association (HBPOA) for a landscape renovation project on the 833-acre property known as Hacienda Business Park. There are one hundred twenty (120) monthly payments due the first of each month commencing January 1, 2020. The interest rate on the loan is set at an annual rate of compounded interest of 2.72 percent. The outstanding amount as of June 30, 2024, was $426,416.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 92 Note 5 – Leases Receivable The City leases land and cell towers to various companies. The terms by lease type are listed in the table below. Some leases have extension options ranging from approximately three to thirty years. An initial lease receivable was recorded in the amount of $7,402,413. As of June 30, 2024, the value of the lease receivable is $6,152,009. The value of the deferred inflow of resources as of June 30, 2024 was $6,110,004, and the amortization of the deferred inflow during the year totaled $291,606. Year EndingJune 30, Principal Interest Total2025 261,796$ 15,621$ 277,417$ 2026 263,910 14,271 278,181 2027 266,082 12,887 278,969 2028 268,314 11,465 279,779 2029 251,958 10,096 262,054 2030-2034 1,153,823 37,696 1,191,519 2035-2039 1,073,664 26,336 1,100,000 2040-2044 1,082,373 17,627 1,100,000 2045-2049 1,091,152 8,848 1,100,000 2050-2051 438,937 1,065 440,002 Total 6,152,009$ 155,912$ 6,307,921$ Note 6 – Interfund Transactions A.Due To/From Other FundsAt June 30, 2024, the City has following due to and from other funds:Due from Other FundsGovernmental Fund:Due to Other FundsGeneralFundGovernmental Fund: Miscellaneous GrantsSpecial Revenue Fund 104,956$ Nonmajor Governmental Funds 343,741 Proprietary Fund: Golf Enterprise Fund 333,828 Total 782,525$ As of June 30, 2024, the General Fund provided $104,956 to the Miscellaneous Grants Special Revenue Fund, $342,681 to the HOME Program Special Revenue Fund, $1,060 to the HBPOA Maintenance District Special Revenue Fund and $333,828 to the Golf Enterprise Fund. These transactions represent short-term transfers to funds with negative cash balances at June 30, 2024.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 93 B. Advances To/From Other FundsThe City has authorized interfund advances to be used for the operations of the funds receiving the advances. AtJune 30, 2024, the outstanding advances are as follows:Governmental ProprietaryFund: Funds: Advances from Other FundsGeneralInternal Service Fund Funds TotalGovernmental Fund: Nonmajor Governmental Funds -$ 205,685$ 205,685$ Proprietary Fund: Water Enterprise Fund - 772,128 772,128 Nonmajor Enterprise Funds 500,000 - 500,000 Total 500,000$ 977,813$ 1,477,813$ Advances to Other FundsOn April 17, 2015, the Replacement/Renovation Internal Service Fund advanced $2,000,000 to the Park Capital Improvement Program Capital Projects Fund to be used for costs associated with the Bernal Community Park Phase II Lighted Multi-Purpose Sports Fields project. The advance was scheduled to berepaid through private fundraising efforts within ten years after the park’s opening date of October 6, 2016. However, due to the COVID-19 Pandemic and the Alameda County Shelter-in-Place (SIP) Order in mid-March 2020, the City granted a two-year payment reprieve and a two-year repayment extension to the sports groups and members of the Play Bernal Fundraising Campaign. The repayment date has been extended to October 2028. The outstanding amount as of June 30, 2024, was $205,685. On June 7, 2017, the City Council approved an advance from the General Fund to the Cemetery Enterprise Fund totaling $500,000. In FY 2018/19, the funding was advanced to the Cemetery Fund to help establish the Pleasanton Pioneer Master Plan Implementation Reserve Fund. The General Fund currently provides a $50,000 subsidy to the Cemetery Fund. Once the Cemetery operating revenues are sufficient to coveroperating expenses without requiring a subsidy, the Cemetery Fund will begin to repay the interfund loan. As of June 30, 2024, the entire amount was outstanding. On April 16, 2024, the City Council approved a $965,160 advance from the Equipment Replacement Internal Service Fund to the Recycled Water Enterprise Fund to redeem the outstanding 2017 Water Revenue Bonds. The term of the advance is not to exceed five years, includes variable interest based on the City’s investment return, and can be paid off at any time during the five-year period without penalty. Principal and interest are due annually in June of each year and are due in full by June 2028. The outstanding amount as of June 30, 2024, was $772,128.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 94 C. Transfers In/OutTransfers in/out for the year ended June 30, 2024, were as follows:MiscellaneousCapital Water Sewer Storm Drain NonmajorGeneralImprovementNonmajorEnterprise Enterprise Enterprise Enterprise Transfers OutFundPrograms Fund Funds FundFund Fund Fund TotalGovernmental Fund: General Fund -$ 2,190,628$ 86,627$ 316,444$ 110,189$ 1,425,000$ 131,396$ 4,260,284$ Miscellaneous Capital Improvement Programs Fund - - 1,500,000 - - 300,000 - 1,800,000 Nonmajor Governmental Funds 375,062 1,500,000 18,714 1,770 - - - 1,895,546 Proprietary Fund: Water Enterprise Fund - - - - - - - - Golf Enterprise Fund 531,780 - - - - - - 531,780 Nonmajor Enterprise Fund - - - - - - - Internal Service Funds 845,000 - 152,972 1,005,160 20,000 - - 2,023,132 1,751,842$ 3,690,628$ 1,758,313$ 1,323,374$ 130,189$ 1,725,000$ 131,396$ 10,510,742$ Governmental Funds Proprietary FundsTransfers InThe General Fund transferred $2,190,628 to the Miscellaneous Capital Improvement Programs Capital Projects Fund to fund partial loan repayments and capital improvement projects, $86,627 to nonmajor governmental funds to fund capital improvement projects, $316,444 and $110,189 to Water Enterprise Fund and Sewer Enterprise Fund, respectively to fund senior and low income discounts, $1,425,000 to Storm Drain Enterprise Fund to fund capital improvement projects and subsidize operations, and $131,396 to Nonmajor Enterprise Fund to subsidize operations. The Miscellaneous Capital Improvement Programs Capital Projects Funds transferred $1,500,000 and $300,000 to Nonmajor Governmental Funds and the Storm Drain Enterprise Fund, respecvely, to fund capital improvement projects. Nonmajor Governmental Funds transferred $375,062 to the General Fund to fund operational expenditures and fund partial loan repayments, $1,500,000 to Miscellaneous Capital Improvement Programs Capital Projects Fund to fund capital improvement projects, $18,714 to nonmajor governmental funds to fund capital improvement projects, $1,770 to Water Enterprise Fund to fund partial loan repayments. Golf Enterprise Fund transferred $531,780 to the General Fund to fund partial loan repayments Internal Service Funds transferred $845,000 to the General Fund to provide subsidy for medical benefits, $152,972 to nonmajor governmental funds to fund capital improvement projects, $1,005,160 to the Water Enterprise Fund to subsidize operations and fund capital improvement projects, $20,000 to Sewer Enterprise Fund to provide subsidy for medical benefits.

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 95 Note 7 – Capital Assets A. Governmental Activities A summary of changes in capital assets of the governmental activities for the year ended June 30, 2024, is as follows: BalanceJuly 1, 2023 BalanceGovernmental activities: (As restated) Additions Deletions Transfers June 30, 2024Capital assets, not being depreciated:Land 248,915,000$ -$ -$ -$ 248,915,000$ Right-of-ways 36,354,674 - - - 36,354,674 Public Art 853,018 - - - 853,018 Construction-in-progress 26,239,010 11,930,835 - (19,513,399) 18,656,446 Total capital assets, not being depreciated312,361,702 11,930,835 - (19,513,399) 304,779,138 Capital assets, being depreciated:Buildings 89,381,358 - (1,318,019) 11,908,139 99,971,478 Machinery and equipment 35,472,212 1,082,930 (947,116) 641,586 36,249,612 Improvements other than buildings 79,084,289 - - 4,261,449 83,345,738 Vehicles 16,711,784 250,090 (242,406) - 16,719,468 Infrastructure 325,289,551 890,000 - 2,702,225 328,881,776 Total capital assets, being depreciated545,939,194 2,223,020 (2,507,541) 19,513,399 565,168,072 Less accumulated depreciation for:Buildings (37,289,733) (1,871,272) 844,917 - (38,316,088) Machinery and equipment (25,697,247) (1,404,531) 881,986 - (26,219,792) Improvements other than buildings (56,470,347) (2,710,375) - - (59,180,722) Vehicles (12,810,118) (1,289,485) 242,406 - (13,857,197) Infrastructure (214,498,548) (8,050,200) - - (222,548,748) Total accumulated depreciation(346,765,993) (15,325,863) 1,969,309 - (360,122,547) Total capital assets, beingdepreciated, net199,173,201 (13,102,843) (538,232) 19,513,399 205,045,525 Intangible capital assets, being amortized:Right-to-use lease assets - building - 325,832 - - 325,832 Right-to-use subscription assets 1,583,005 945,329 (144,750) - 2,383,584 Total intangible capital assets, net1,583,005 1,271,161 (144,750) - 2,709,416 Less accumulated amortization for:Right-to-use lease assets - building - (108,611) - - (108,611) Right-to-use subscription assets (450,343) (822,229) 144,750 - (1,127,822) Total accumulated amortization(450,343) (930,840) 144,750 - (1,236,433) Total intangible capital assets, being amortized, net1,132,662 340,321 - - 1,472,983 Total governmental activities capital assets, net 512,667,565$ (831,687)$ (538,232)$ -$ 511,297,646$ Depreciation/amortization expense was charged to various governmental functions as follows: General government 417,022$ Public safety 586,644 Community development 1,812,704 Public works 9,824,703 Community activities 1,574,425 Internal service funds 2,041,205 Total16,256,703$

City of Pleasanton Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 96 Note 7 – Capital Assets (Continued) B. Business-Type Activities A summary of changes in capital assets of the business-type activities for the year ended June 30, 2024, is as follows: BalanceJuly 1, 2023 BalanceBusiness-type activities: (As restated) Additions Deletions Transfers June 30, 2024Capital assets, not being depreciated:Land 14,512,340$ -$ -$ -$ 14,512,340$ Construction in progress 7,606,098 5,830,985 - (406,306) 13,030,777 Total capital assets, not being depreciated22,118,438 5,830,985 - (406,306) 27,543,117 Capital assets, being depreciated:Buildings 38,578,125 - - - 38,578,125 Machinery and equipment 16,697,612 81,807 (117,162) - 16,662,257 Improvements other than buildings 31,991,425 - - - 31,991,425 Vehicles 1,375,170 208,150 (158,519) - 1,424,801 Infrastructure 305,848,146 878,000 - 406,306 307,132,452 Total capital assets, being depreciated394,490,478 1,167,957 (275,681) 406,306 395,789,060 Less accumulated depreciation for:Buildings (20,909,087) (934,737) - - (21,843,824) Machinery and equipment (10,058,278) (555,764) 117,162 - (10,496,880) Improvements other than buildings (27,917,615) (1,542,486) - - (29,460,101) Vehicles (493,329) (150,040) 158,519 - (484,850) Infrastructure (199,536,822) (6,152,607) - - (205,689,429) Total accumulated depreciation(258,915,131) (9,335,634) 275,681 - (267,975,084) Total capital assets, beingdepreciated, net135,575,347 (8,167,677) - 406,306 127,813,976 Intangible capital assets, being amortized:Right-to-use lease assets - equipment - 320,902 - - 320,902 Right-to-use subscription assets 604,036 403,433 - - 1,007,469 Total intangible capital assets, net604,036 724,335 - - 1,328,371 Less accumulated amortization for:Right-to-use lease assets - equipment - (98,977) - - (98,977) Right-to-use subscription assets (52,671) (133,260) - - (185,931) Total accumulated amortization(52,671) (232,237) - - (284,908) Total intangible capital assets, being amortized, net551,365 492,098 - - 1,043,463 Total business-type activities capital assets, net 158,245,150$ (1,844,594)$ -$ -$ 156,400,556$ Depreciation/amortization expense was charged to various enterprise funds as follows: Water 4,112,048$ Sewer 2,659,665Golf 1,655,548Storm Drain 1,083,401Transit 25,723Cemetery 31,486Total9,567,871$