Pleasanton City Council
January 20, 2026

City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025

27  Subscription liabilities increased by $1.7 million during the fiscal year. The increase is due to subscription agreement additions of $1.3 million with Accela Cloud to provide SaaS multi-solution user services for the City and $0.4 million for other subscriptions (Environm ental Systems Research Institute, Routeware, etc.).

The increase was partly offset by a $0.9 million decrease from the usual amortization of subscription liabilities, leaving a remaining balance of $1.9 million.

Business-type activities debt decreased by $1.4 million to $2 7.8 million in FY 2024/25. 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 $8.6 million.

 Annual payments associated with the golf course financed purchase agreement were minimal during the fiscal year, and the balance at year-end was $0.05 million.

 Annual payments for the golf course operating leases totaling $0.1 million were made, bringing the remaining balance to $0.1 million for the leases.

 The $17.3 million Water Revenue Bonds, Series 2024, issu ed to fund near-term water improvement projects decreased by $0.4 million from the normal amortization of the bond payable, bringing the remaining balance to $16.9 million. The premium balance at year-end was $2.0 million.

 Subscription liabilities decreased by $0.5 million due to th e normal amortization of the subscription liability, bringing the remaining balance to $0.2 million.

City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025

28 The following table compares the outstanding balances on long-term debt of the City as of June 30, 2024 and 2025:

City of Pleasanton
Long Term Debt Outstanding

2024 2025 2024 2024
Direct Borrowings:

Financed purchase - vehicle 948,037$ 725,712 $ - $ - $ Financed purchase - fire engine 1,125,662 893,820 - - HUD Section 108 Loan, variable rate, due 2035 536,000 486,000 - - G3-Sun Ridge - Computer system 684,188 684,188 - - Costco loan reimbursement - 12,758,240 - - California clean water SRF loan - - 8,896,132 8,550,198 Golf course financed purchase agreement - - 87,460 53,963 Golf course leases - - 221,925 119,848 Bonds:

Water Revenue Bond, Series 2024 - - 17,275,000 16,875,000 Premium on Water Revenue Bond, Series 2024 - - 1,959,574 1,953,482 Lease liabilities 220,353 111,773 - - Subscription liabilities 1,094,421 1,927,824 767,498 235,728 Total 4,608,661$ 17,587,557 $ 29,207,589 $ 27,788,219 $ Governmental Activities: Business-Type Activities

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 4.8 pe rcent in June 2025 although it is slightly higher than the

4.4 percent in June 2024. The office market in Pleasanton/Tr i-Valley is fairly stable with lease rates holding steady.

Pleasanton’s office vacancy rate was 17.1 percent at the end of FY 2024/25, which is slightly higher than the 16.6 percent at the close of FY 2023/24. While home sale activities in Pleasanton improved from FY 2023/24 and home prices remained strong, the year-over-year property tax incr ease was modest due to a cool overall real estate market.

Business license tax experienced a significant increase during FY 2024/25 due to higher gross receipts and new licenses from the relocation and opening of two large entities. Hotel tax increased slightly in FY 2024/25, but annual revenue remained significantly lower than the pre-pandemic levels.

FY 2025/26 General Fund budget totals $154.8 million, excluding transfers out to other funds. Expenditure growth is expected to outpace revenue growth in the long run. At the Council’s direction, the City continues to explore revenue options, including a potential increase to the hotel tax rate and economic development initiatives.

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, 2025

29 REQUEST FOR INFORMATION

This financial report is desi gned 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 s hould be addressed to the Director of Finance, P.O. Box 520, Pleasanton, California 94566.

30

BASIC FINANCIAL STATEMENTS
31

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32

GOVERNMENT-WIDE FINANCIAL STATEMENTS
33

Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Pooled cash and investments 204,306,175 $ 68,635,405 $ 272,941,580 $ Restricted cash and investments 56,444,889 11,586,598 68,031,487 Receivables (net):

Accounts 5,716,311 11,550,965 17,267,276 Taxes 7,158,374 - 7,158,374 Accrued interest 5,207,257 284,256 5,491,513 Lease, due within one year 263,910 - 263,910 Notes and loans 2,224,155 - 2,224,155 Internal balances 2,794,959 (2,794,959) - Due from custodial funds 40,519 - 40,519 Prepaid items 2,576,026 15,778 2,591,804 Inventory - 177,479 177,479 Total current assets 286,732,575 89,455,522 376,188,097 Noncurrent assets:

Lease receivable, due in more than one year 5,626,302 - 5,626,302 Net investment in LAVWMA - 20,754,345 20,754,345 Capital assets:

Not being depreciated/amortized 329,049,791 25,842,178 354,891,969 Being depreciated/amortized, net 201,578,948 124,030,643 325,609,591 Total capital assets 530,628,739 149,872,821 680,501,560 Total noncurrent assets 536,255,041 170,627,166 706,882,207 Total assets 822,987,616 260,082,688 1,083,070,304

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 37,834,150 2,506,412 40,340,562 Related to OPEB 7,720,424 736,576 8,457,000 Total deferred outflows of resources 45,554,574 3,242,988 48,797,562 (Continued)
Primary Government
City of Pleasanton
Statement of Net Position
June 30, 2025
See accompanying Notes to the Basic Financial Statements 34

Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 15,600,023 12,051,430 27,651,453 Accrued payroll 1,234,144 112,707 1,346,851 Accrued interest 72,211 271,045 343,256 Refundable deposits 1,158,759 583,407 1,742,166 Unearned revenue 2,477,847 1,370,640 3,848,487 Compensated absences - due within one year 7,205,634 - 7,205,634 Claims liability - due within one year 1,767,559 - 1,767,559 Long-term liabilities - due within one year 1,499,506 822,592 2,322,098 Total current liabilities 31,015,683 15,211,821 46,227,504 Noncurrent liabilities:

Compensated absences, due in more than one year 6,177,755 - 6,177,755 Claims liability - due in more than one year 8,643,047 - 8,643,047 Long-term liabilities - due in more one year 16,088,051 26,965,627 43,053,678 Net deficit in LPFD 41,351,422 - 41,351,422 Net pension liability 164,007,883 12,900,952 176,908,835 Net OPEB liability 13,056,344 1,245,656 14,302,000 Total noncurrent liabilities 249,324,502 41,112,235 290,436,737 Total liabilities 280,340,185 56,324,056 336,664,241

DEFERRED INFLOWS OF RESOURCES
Related to pensions 1,790,483 11,559 1,802,042 Related to OPEB 3,405,132 324,868 3,730,000 Related to leases 5,838,324 - 5,838,324 Total deferred inflows of resources 11,033,939 336,427 11,370,366

NET POSITION
Net investment in capital assets 508,631,808 132,339,018 640,970,826 Restricted for:

Pension funding 56,332,350 - 56,332,350 Capital projects 52,707,445 - 52,707,445 Debt service - 439,461 439,461 Public safety 176,929 - 176,929 Paratransit - 653,312 653,312 Special projects 6,035,862 - 6,035,862 Community development projects 21,155,073 - 21,155,073 Total restricted 136,407,659 1,092,773 137,500,432 Unrestricted (deficit) (67,871,401) 73,233,402 5,362,001 Total net position 577,168,066$ 206,665,193 $ 783,833,259 $ (Concluded)
City of Pleasanton
Statement of Net Position (Continued)
June 30, 2025
Primary Government
See accompanying Notes to the Basic Financial Statements 35

Capital Grants
Charges for Operating Grants and
Expenses Services and Contributions Contributions
Functions/Programs
Governmental Activities:

General government 27,197,842 $ 299,005 $ 1,461,379 $ - $ Public safety 67,134,971 2,225,742 1,222,849 - Community development 22,150,445 7,856,880 3,743,195 - Public works 45,146,277 4,846,879 1,716,187 20,456,338 Community activities 17,246,368 5,196,686 883,983 - Interest on long term debt 355,372 - - - Total Governmental Activities 179,231,275 20,425,192 9,027,593 20,456,338 Business-Type Activities:

Water 47,998,858 41,514,935 47,811 - Sewer 20,895,902 17,612,545 1,250,224 - Golf 7,789,414 6,511,970 - - Storm Drain 2,924,253 540,484 517,993 - Transit 586,167 - 569,105 - Cemetery 348,583 316,008 - - Total Business-Type Activities 80,543,177 66,495,942 2,385,133 - Total Primary Government 259,774,452$ 86,921,134 $ 11,412,726 $ 20,456,338 $ (Continued)
City of Pleasanton
Statement of Activities
For the Year Ended June 30, 2025
Program Revenues
See accompanying Notes to the Basic Financial Statements 36

Governmental Business-Type
Activities Activities Total
Functions/Programs
Governmental Activities:

General government (25,437,458) $ - $ (25,437,458)$ Public safety (63,686,380) - (63,686,380) Community development (10,550,370) - (10,550,370) Public works (18,126,873) - (18,126,873) Community activities (11,165,699) - (11,165,699) Interest on long term debt (355,372) - (355,372) Total Governmental Activities (129,322,152) - (129,322,152) Business-Type Activities:

Water - (6,436,112) (6,436,112) Sewer - (2,033,133) (2,033,133) Golf - (1,277,444) (1,277,444) Storm Drain - (1,865,776) (1,865,776) Transit - (17,062) (17,062) Cemetery - (32,575) (32,575) Total Business-Type Activities - (11,662,102) (11,662,102) Total Primary Government (129,322,152) (11,662,102) (140,984,254) General Revenues:

Taxes:

Property 92,605,525 - 92,605,525 Sales taxes 25,890,485 - 25,890,485 Franchise taxes 3,534,124 - 3,534,124 Business licenses taxes 6,706,963 - 6,706,963 Transient occupancy taxes 5,337,470 - 5,337,470 Other taxes 874,963 - 874,963 Use of money and property 10,461,356 2,964,136 13,425,492 Miscellaneous 2,709,658 1,403,364 4,113,022 Total General Revenues 148,120,544 4,367,500 152,488,044 Transfers:

Transfers (15,306,470) 15,306,470 -
Total Transfers (15,306,470) 15,306,470 - Changes in Net Position 3,491,922 8,011,868 11,503,790 Net Position:

Beginning of year, as previously presented as of June 30, 2024 581,133,813 198,653,325 779,787,138 Change in accounting principle (GASB 101) (7,457,669) - (7,457,669) Beginning of year, as restated (Note 15) 573,676,144 198,653,325 772,329,469 End of year 577,168,066$ 206,665,193 $ 783,833,259 $ (Concluded)
Primary Government
Net (Expense) Revenue and Changes in Net Positions
City of Pleasanton
Statement of Activities (Continued)
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 37

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38

FUND FINANCIAL STATEMENTS
39

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40

GOVERNMENTAL FUND FINANCIAL STATEMENTS
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.

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 toward meeting the 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 Fund to be used for design and construction of facilities and infrastructure as adopted in the annual miscellaneous capital improvement program. The fund was reclassified to a nonmajor governmental fund during the year ended June 30, 2025.

Miscellaneous Grants Fund - is a special revenue fund that accounts for various grant revenues, including funding for the Used Oil program, law enforcement expenditures, literacy programs, and miscellaneous City projects. 41

Lower Income Miscellaneous
General Fund Housing Fund Grants Fund
ASSETS
Pooled cash and investments 41,296,713 $ 14,801,775 $ 6,890,435 $ Receivables:

Accounts 3,302,299 235,179 1,271,674 Taxes 6,362,432 - - Notes and loans - 354,321 - Accrued interest 630,024 3,441,189 1,711 Leases 293,214 5,596,998 -
Due from other funds 1,336,199 - - Due from custodial funds 40,519
Advances to other funds 500,000 - - Restricted assets:

Cash and investments 20,866,377 - - Total assets 74,627,777$ 24,429,462 $ 8,163,820 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable 4,944,528 $ 152,599 $ 5,636,565 $ Accrued liabilities 1,223,573 3,327 - Unearned revenues 129,467 - 2,268,444 Deposits payable 1,158,759 - - Due to other funds - - - Advances from other funds - - - Total liabilities 7,456,327 155,926 7,905,009 Deferred inflows of resources:

Related to leases 269,299 5,569,025 - Unavailable revenues 44,171 - 489,169 Total deferred inflows of resources 313,470
5,569,025 489,169
Fund balances:

Nonspendable 500,000 - - Restricted 20,866,377 18,704,511 -
Committed 7,789,128 - - Assigned - - - Unassigned 37,702,475 - (230,358) Total fund balances 66,857,980 18,704,511 (230,358) Total liabilities, deferred inflows
of resources, and fund balances 74,627,777$ 24,429,462 $ 8,163,820 $ (Continued)
Special Revenue Funds
City of Pleasanton
Balance Sheet
Governmental Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements 42

Nonmajor Total
Governmental Governmental
Funds Funds
ASSETS
Pooled cash and investments 96,910,577$ 159,899,500 $ Receivables:

Accounts 880,684 5,689,836
Taxes 795,942 7,158,374
Notes and loans 1,869,834 2,224,155
Accrued interest 935,055 5,007,979
Leases - 5,890,212
Due from other funds - 1,336,199 Due from custodial funds 40,519
Advances to other funds - 500,000 Restricted assets:

Cash and investments - 20,866,377 Total assets 101,392,092$ 208,613,151 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable 2,799,374$ 13,533,066 $
Accrued liabilities 7,244 1,234,144
Unearned revenues 79,936 2,477,847
Deposits payable - 1,158,759
Due to other funds 233,437 233,437
Advances from other funds 175,664 175,664
Total liabilities 3,295,655 18,812,917
Deferred inflows of resources:

Related to leases - 5,838,324
Unavailable revenues 102,082 635,422
Total deferred inflows of resources 102,082 6,473,746 Fund balances:

Nonspendable - 500,000
Restricted 60,667,008 100,237,896
Committed 6,063,054 13,852,182
Assigned 31,264,293 31,264,293
Unassigned - 37,472,117
Total fund balances 97,994,355 183,326,488
Total liabilities, deferred inflows
of resources, and fund balances 101,392,092$ 208,613,151 $ (Concluded)
City of Pleasanton
Balance Sheet (Continued)
Governmental Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements 43

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44

Total Fund Balances - Total Governmental Funds 183,326,488$ Amounts reported for governmental activities in the statement of net position are different because:

Nondepreciable assets 329,049,791 $
Depreciable assets, net of accumulated depreciation 199,400,167 Intangible assets, net of accumulated amortization 2,178,781 Less: Amount reported in Internal Service Funds (13,017,923) 517,610,816 635,422
(67,022,729)
(62,484)
HUD Section 108 Loan (486,000)
Costco loan reimbursement (12,758,240)
Subscription liability (1,927,824)
Lease liability (111,773)
Financed purchase liability (684,188)
Net investment (deficit) in Livermore-Pleasanton Fire Department ("LPFD") (41,351,422) Net position of governmental activities 577,168,066$
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, but are not available soon enough to pay for current-period expenditures, and therefore, are either not reported or are reported 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 acquisition and maintenance, assessment district administration, equipment replacement/renovation and self-insurance programs 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 Net Position, net of $(617,773) reported for business-type activities.

Certain liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the Governmental Fund Financial Statements:

City of Pleasanton
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
Capital assets net of depreciation/amortization have not been included as financial resources in governmental fund activity.

Accrued interest payable for the current portion of interest due on bonds has not been reported in the governmental funds.

See accompanying Notes to the Basic Financial Statements 45

Formerly
Major Fund
Miscellaneous
Capital
Lower Income Miscellaneous Improvement
General Fund Housing Fund Grants Fund Programs Fund
REVENUES:

Taxes 131,415,406$ - $ - $
Assessments - - - Licenses and permits 5,031,189 - - Intergovernmental 959,054 - 2,989,537 Franchise tax 3,534,124 - - Charges for services 1,226,521 - - Use of money and property 4,866,715 2,532,176 72,581 Fines and forfeitures 191,195 - - Plan check fees 3,528,818 - - Contributions 10,894 - - Development fees 580,577 99,264 - Miscellaneous 11,507,092 463 - Total revenues 162,851,585 2,631,903 3,062,118 EXPENDITURES:

Current:

General government 26,507,681 - - Public safety 66,509,481 - 104,791 Community development 11,408,945 1,105,455 392,139 Public works 30,857,633 - - Community activities 15,222,906 - 177,907 Capital outlay 15,129,647 - 3,915,616 Debt service:

Principal 908,817 - - Interest 28,820 - - Total expenditures 166,573,930 1,105,455 4,590,453

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (3,722,345) 1,526,448 (1,528,335) OTHER FINANCING SOURCES (USES):

Transfers in 1,365,780 - - Transfers out (7,139,046) (260,000) - Issuance of loan 12,758,240 - - Inception of lease and subscription liability 1,639,987 - - Total other financing sources (uses) 8,624,961 (260,000) - NET CHANGE IN FUND BALANCES 4,902,616 1,266,448 (1,528,335) FUND BALANCES:

Beginning of year, as previously presented as of June 30, 2024 61,955,364 17,438,063 1,297,977 27,796,322 Change within financial reporting entity:
(major to nonmajor) - - - (27,796,322) Beginning of year, as restated (Note 15) 61,955,364 17,438,063 1,297,977 - End of year 66,857,980$ 18,704,511 $ (230,358) $ - $ (Continued)
Special Revenue Funds
City of Pleasanton
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 46

Nonmajor Total
Governmental Governmental
Funds Funds
REVENUES:

Taxes -$ 131,415,406$
Assessments 218,319 218,319
Licenses and permits - 5,031,189 Intergovernmental 8,009,635 11,958,226
Franchise tax 500,000 4,034,124
Charges for services - 1,226,521 Use of money and property 5,465,552 12,937,024
Fines and forfeitures 12,972 204,167
Plan check fees - 3,528,818
Contributions 912,517 923,411
Development fees 6,171,292 6,851,133
Miscellaneous 2,795,546 14,303,101
Total revenues 24,085,833 192,631,439
EXPENDITURES:

Current:

General government 458,932 26,966,613
Public safety 34,691 66,648,963
Community development 694,297 13,600,836
Public works 1,168,629 32,026,262
Community activities 34,621 15,435,434
Capital outlay 23,331,855 42,377,118
Debt service:

Principal 81,713 990,530
Interest 16,594 45,414
Total expenditures 25,821,332 198,091,170

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (1,735,499) (5,459,731)
OTHER FINANCING SOURCES (USES):

Transfers in 8,655,360 10,021,140
Transfers out (16,900,564) (24,299,610)
Issuance of loan - 12,758,240
Inception of lease and subscription liability 63,273 1,703,260 Total other financing sources (uses) (8,181,931) 183,030 NET CHANGE IN FUND BALANCES (9,917,430) (5,276,701) FUND BALANCES:

Beginning of year, as previously presented as of June 30, 2024 80,115,463 188,603,189 Change within financial reporting entity:
(major to nonmajor) 27,796,322 -
Beginning of year, as restated (Note 15) 107,911,785 188,603,189 End of year 97,994,355$ 183,326,488 $
(Concluded)
City of Pleasanton
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 47

Net change in fund balances - total governmental funds: (5,276,701)$ Governmental activities in the Statement of Activities were reported differently because:

Capital outlay and adjustments, net of $3,673,165 reported in internal service funds 39,078,435$ Depreciation/amortization, net of internal service funds of $(2,027,611) (14,699,300) Net effect on disposal of capital assets, net of $(113,983) reported in internal service funds (6,579,613) 17,799,522 158,111
Accrued interest for long-term liabilities. (34,513)
(1,724,462)$
Inception of Costco loan reimbursement (12,758,240)
831,950
59,109
Principal payments on HUD Section 108 Loan 50,000
Principal payments on lease liability 108,580 (13,433,063) (374,675)
4,653,241
Change in net position of governmental activities 3,491,922$ Internal service funds are used by management to charge the costs of certain activities to individual funds. The net expense of certain activities of the internal service funds is reported with governmental activities in the statement of net position, net of $(645,791) reported at business-type activities.

City of Pleasanton
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities For the Year Ended June 30, 2025
Governmental funds report acquisition of capital assets as part of capital outlay expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets were allocated over their estimated useful lives as depreciation expense.

Certain accrued revenues such as grants do not provide current financial resources and therefore, are not reported in the governmental funds as revenues. This is the amount of the net change in these accrued revenue amounts during the current period.

Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities 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 net investment deficit in the Statement of Net Position.

Inception of subscription liability
Principal payments on subscription liabilities
Termination of subscription liability
See accompanying Notes to the Basic Financial Statements 48

PROPRIETARY FUND FINANCIAL STATEMENTS
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.

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 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.

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 beginning in FY 1992/93 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. 49

Water Sewer Golf Storm Drain
ASSETS
Current assets:

Pooled cash and investments 20,991,551 $ 23,245,684 $ 5,105,742 $ 17,181,806 $ Restricted cash 11,586,598 - - - Receivable:

Accounts 8,195,328 3,210,067 20,115 3,115 Accrued interest 121,395 135,711 2,170 15,783 Prepaid items - - 15,778 - Inventory - - 177,479 - Total current assets 40,894,872 26,591,462 5,321,284 17,200,704 Noncurrent assets:

Net investment in joint ventures - 20,754,345 - - Advances to other funds - - - - Capital assets:

Nondepreciable 10,916,828 1,338,951 12,434,327 1,090,321 Depreciable, net 69,911,443 33,687,927 2,547,901 17,047,226 Total capital assets 80,828,271 35,026,878 14,982,228 18,137,547 Total noncurrent assets 80,828,271 55,781,223 14,982,228 18,137,547 Total assets 121,723,143 82,372,685 20,303,512 35,338,251

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 1,657,152 657,021 - 192,239 Related to OPEB 502,835 188,065 - 45,676 Total deferred outflows of resources 2,159,987 845,086 - 237,915 (Continued)
Business-Type Activities - Enterprise Funds
City of Pleasanton
Statement of Net Position
Proprietary Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements 50

Governmental
Activities
Nonmajor Internal
Enterprise Funds Totals Service Funds
ASSETS
Current assets:

Pooled cash and investments 2,110,622 $ 68,635,405 $ 44,406,675 $ Restricted cash - 11,586,598 35,578,512 Receivable:

Accounts 122,340 11,550,965 26,475
Accrued interest 9,197 284,256 199,278 Prepaid items - 15,778 2,576,026 Inventory - 177,479 - Total current assets 2,242,159 92,250,481 82,786,966 Noncurrent assets:

Net investment in joint ventures - 20,754,345 - Advances to other funds - - 754,760 Capital assets:

Nondepreciable 61,751 25,842,178 367,893 Depreciable, net 836,146 124,030,643 12,650,030 Total capital assets 897,897 149,872,821 13,017,923 Total noncurrent assets 897,897 170,627,166 13,772,683 Total assets 3,140,056 262,877,647 96,559,649

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions - 2,506,412 37,834,150 Related to OPEB - 736,576 7,720,424 Total deferred outflows of resources - 3,242,988 45,554,574 (Continued)
Business-Type Activities -
Enterprise Funds
City of Pleasanton
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements 51

Water Sewer Golf Storm Drain

LIABILITIES
Current liabilities:

Accounts payable 6,634,947 4,341,364 452,832 354,735 Payroll payable 76,018 24,627 - 11,951 Accrued interest 271,045 - - - Refundable deposits 294,856 - 288,551 - Unearned revenues - - 420,597 8,033 Due to other funds - - 1,102,762 - Accrued compensated absences - - - - Claims payable - - - - Financed purchases payable - - 125,946 - Loan payable 349,393 - - - Subscription liabilities 77,253 - - - Bonds payable 270,000 - - - Total current liabilities 7,973,512 4,365,991 2,390,688 374,719 Noncurrent liabilities:

Advances from other funds 579,096 - - - Accrued compensated absences - - - - Claims payable - - - - Financed purchases payable - - 47,865 - Loan payable 8,200,805 - - - Subscription liabilities 158,475 - - - Bonds payable 18,558,482 - - - Net pension liability 8,529,659 3,381,803 - 989,490 Net OPEB liability 850,367 318,044 - 77,245 Total noncurrent liabilities 36,876,884 3,699,847 47,865 1,066,735 Total liabilities 44,850,396 8,065,838 2,438,553 1,441,454

DEFERRED INFLOW OF RESOURCES
Related to pensions 7,642 3,030 - 887 Related to OPEB 221,778 82,946 - 20,144 Total deferred inflows of resources 229,420 85,976 - 21,031

NET POSITION
Net investment in capital assets 63,664,461 34,981,603 14,808,417 17,986,640 Restricted for pension - - - - Restricted for debt service 439,461 - - - Restricted for paratransit - - - - Unrestricted (deficit) 14,699,392 40,084,354 3,056,542 16,127,041 Total net position 78,803,314$ 75,065,957 $ 17,864,959 $ 34,113,681 $ (Continued)
June 30, 2025
Business-Type Activities - Enterprise Funds
City of Pleasanton
Statement of Net Position (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements 52

Governmental
Activities
Nonmajor Internal
Enterprise Funds Totals Service Funds

LIABILITIES
Current liabilities:

Accounts payable 267,552 12,051,430 2,066,957 Payroll payable 111 112,707 - Accrued interest - 271,045 9,727 Refundable deposits - 583,407 - Unearned revenues 942,010 1,370,640 - Due to other funds - 1,102,762 - Accrued compensated absences - - 7,205,634 Claims payable - - 1,767,559 Financed purchases payable - 125,946 515,182 Loan payable - 349,393 - Subscription liabilities - 77,253 - Bonds payable - 270,000 - Total current liabilities 1,209,673 16,314,583 11,565,059 Noncurrent liabilities:

Advances from other funds 500,000 1,079,096 - Accrued compensated absences - - 6,177,755 Claims payable - - 8,643,047 Financed purchases payable - 47,865 1,104,350 Loan payable - 8,200,805 - Subscription liabilities - 158,475 - Bonds payable - 18,558,482 - Net pension liability - 12,900,952 164,007,883 Net OPEB liability - 1,245,656 13,056,344 Total noncurrent liabilities 500,000 42,191,331 192,989,379 Total liabilities 1,709,673 58,505,914 204,554,438

DEFERRED INFLOW OF RESOURCES
Related to pensions - 11,559 1,790,483 Related to OPEB - 324,868 3,405,132 Total deferred inflows of resources - 336,427 5,195,615

NET POSITION
Net investment in capital assets 897,897 132,339,018 11,398,391 Restricted for pension - - 35,465,973 Restricted for debt service - 439,461 112,539 Restricted for paratransit 653,312 653,312 - Unrestricted (deficit) (120,826) 73,846,503 (114,612,733) Total net position 1,430,383$ 207,278,294 $ (67,635,830) $ Adjustments to reflect the consolidation of internal
service fund activities related to the proprietary funds (613,101) Net position of business-type activities 206,665,193$
(Concluded)
June 30, 2025
Business-Type Activities -
Enterprise Funds
City of Pleasanton
Statement of Net Position (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements 53

Water Sewer Golf Storm Drain
OPERATING REVENUES:

Charges for services and interfund service charges 41,514,935 $ 17,612,545 $ 6,511,970 $ 540,484 $ Miscellaneous 1,018,324 2,249 - 378,763 Total operating revenues 42,533,259 17,614,794 6,511,970 919,247 OPERATING EXPENSES:

Personnel services 6,413,416 2,302,766 - 853,595 Transportation 85,253 37,970 - 3,215 Repairs and maintenance 477,475 225,066 1,623 37,773 Materials, supplies and services 31,214,524 14,797,334 5,630,180 856,997 Depreciation/amortization 4,048,092 2,753,673 1,556,903 1,065,286 Total operating expenses 42,238,760 20,116,809 7,188,706 2,816,866 OPERATING INCOME (LOSS) 294,499 (2,502,015) (676,736) (1,897,619) NONOPERATING REVENUES (EXPENSES):

Intergovernmental 47,811 31,574 - 517,993 Interest income & loss on fair value of investments 1,519,369 1,249,605 21,341 93,893 Interest and fiscal charges (1,290,723) - (2,052) - Loss on disposal of capital assets (4,325,250) (718,107) (165,397) (92,126) Gain on early termination of subscription liability 406,814 - - - Gain on disposal of capital assets - - - - Gain from equity interest in joint ventures - 1,218,650 - - Contribution to other governments (336,873) - - - Total nonoperating revenues (expenses) (3,978,852) 1,781,722 (146,108) 519,760 INCOME BEFORE TRANSFERS (3,684,353) (720,293) (822,844) (1,377,859)

TRANSFERS
Transfers in 437,878 137,891 - 14,625,000 Transfers out - - (31,780) - Total transfers 437,878 137,891 (31,780) 14,625,000 CHANGES IN NET POSITION (3,246,475) (582,402) (854,624) 13,247,141 NET POSITION:

Beginning of year, as previously presented as of June 30, 2024 82,049,789 75,648,359 18,719,583 20,866,540 Change in accounting principal (GASB 101) - - - - Beginning of year, as restated (Note 15) 82,049,789 75,648,359 18,719,583 20,866,540 End of year 78,803,314 $ 75,065,957 $ 17,864,959 $ 34,113,681 $ (Continued)
Business-Type Activities - Enterprise Funds
City of Pleasanton
Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended June 30, 2025
Proprietary Funds
See accompanying Notes to the Basic Financial Statements 54

Governmental
Activities
Nonmajor Internal
Enterprise Funds Totals Service Funds
OPERATING REVENUES:

Charges for services and interfund service charges 316,008 $ 66,495,942 $ 18,797,399 $ Miscellaneous 4,028 1,403,364 281,578 Total operating revenues 320,036 67,899,306 19,078,977 OPERATING EXPENSES:

Personnel services 45,252 9,615,029 10,334,270 Transportation 66,010 192,448 370,174 Repairs and maintenance - 741,937 246,718 Materials, supplies and services 841,092 53,340,127 6,359,401 Depreciation/amortization 64,849 9,488,803 2,027,611 Total operating expenses 1,017,203 73,378,344 19,338,174 OPERATING INCOME (LOSS) (697,167) (5,479,038) (259,197) NONOPERATING REVENUES (EXPENSES):

Intergovernmental 569,105 1,166,483 19,686 Interest income & loss on fair value of investments 79,928 2,964,136 5,595,106 Interest and fiscal charges - (1,292,775) (275,445) Loss on disposal of capital assets - (5,300,880) - Gain on early termination of subscription liability - 406,814 - Gain on disposal of capital assets - - (40,028) Gain from equity interest in joint ventures - 1,218,650 - Contribution to other governments - (336,873) - Total nonoperating revenues (expenses) 649,033 (1,174,445) 5,299,319 INCOME BEFORE TRANSFERS (48,134) (6,653,483) 5,040,122

TRANSFERS
Transfers in 137,481 15,338,250 -
Transfers out - (31,780) (1,028,000) Total transfers 137,481 15,306,470 (1,028,000) CHANGES IN NET POSITION 89,347 8,652,987 4,012,122 NET POSITION:

Beginning of year, as previously presented as of June 30, 2024 1,341,036 198,625,307 (64,190,283) Change in accounting principal (GASB 101) - - (7,457,669) Beginning of year, as restated (Note 15) 1,341,036 198,625,307 (71,647,952) End of year 1,430,383$ 207,278,294 $ (67,635,830) $ Changes in Net Position, per the Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds 8,652,987$ Adjustment to reflect the consolidation of current fiscal year internal service funds activities related to enterprise funds (641,119) 8,011,868$
(Concluded)
Changes in Net Position of Business-Type Activities per Statement of Activities Reconciliation of Changes in Net Position to the Statement of Activities:

City of Pleasanton
Statement of Revenues, Expenses, and Changes in Net Position (Continued) For the Year Ended June 30, 2025
Business-Type Activities -
Enterprise Funds
Proprietary Funds
See accompanying Notes to the Basic Financial Statements 55

Water Sewer Golf Storm Drain
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash receipts from customers 42,149,514 $ 17,449,845 $ 6,605,593 $ 925,677 $ Cash payments to suppliers (32,594,814) (14,092,908) (5,630,981) (633,725) Cash payments to or on behalf of employees (6,173,854) (2,457,902) - (819,847) Claims recovered - - - - Claims paid - - - - Net cash provided by operating activities 3,380,846 899,035 974,612 (527,895) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Interfund receipts 244,846 137,891 737,154 14,625,000 Interfund payments - - - - Intergovernmental receipts 47,811 31,574 - 517,993 Intergovernmental payments (336,873) - - - Net cash provided by (used in) noncapital financing activities (44,216) 169,465 737,154 15,142,993 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (7,199,137) (273,711) (63,318) (738,356) Principal payments on capital debt (870,890) - (135,574) - Interest paid on capital debt (1,171,548) - (2,052) - Proceeds from sales of capital assets - - - - Net cash (used in) capital and related
financing activities (9,241,575) (273,711) (200,944) (738,356) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings 1,436,665 1,168,061 20,083 81,842 Net cash provided by investing activities 1,436,665 1,168,061 20,083 81,842 Net change in cash and cash equivalents (4,468,280) 1,962,850 1,530,905 13,958,584 CASH AND CASH EQUIVALENTS:

Beginning of year 37,046,429 21,282,834 3,574,837 3,223,222 End of year 32,578,149$ 23,245,684 $ 5,105,742 $ 17,181,806 $ CASH AND CASH EQUIVALENTS:

Cash and investments 20,991,551 $ 23,245,684 $ 5,105,742 $ 17,181,806 $ Cash and investments with fiscal agent 11,586,598 - - - Total cash and cash equivalents 32,578,149$ 23,245,684 $ 5,105,742 $ 17,181,806 $ NONCASH ITEMS:

Construction in progress deletion (3,888,800)$ (716,656) $ - $ (92,126)$ Loss on disposal of capital assets -$ (1,451)$ (165,397)$ - $ Subscription asset early termination (436,450)$ - $ - $ - $ Subscription liability early termination 406,814$ - $ - $ - $ (Continued)
Business-Type Activities - Enterprise Funds
City of Pleasanton
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 56

Governmental
Activities
Nonmajor Internal
Enterprise Funds Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash receipts from customers 343,181 $ 67,473,810 $ 18,797,087 $ Cash payments to suppliers (889,847) (53,842,275) (2,503,991) Cash payments to or on behalf of employees (52,049) (9,503,652) (3,505,887) Claims recovered - - 304,443 Claims paid - - (5,950,712) Net cash provided by operating activities (598,715) 4,127,883 7,140,940 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Interfund receipts 137,481 15,882,372 223,053 Interfund payments - - (1,028,000) Intergovernmental receipts 568,271 1,165,649 19,686 Intergovernmental payments - (336,873) - Net cash provided by (used in) noncapital financing activities 705,752 16,711,148 (785,261) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition of capital assets - (8,274,522) (3,668,265) Principal payments on capital debt - (1,006,464) (454,167) Interest paid on capital debt - (1,173,600) (277,833) Proceeds from sales of capital assets - - 73,955 Net cash (used in) capital and related
financing activities - (10,454,586) (4,326,310) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings 74,176 2,780,827 5,472,637 Net cash provided by investing activities 74,176 2,780,827 5,472,637 Net change in cash and cash equivalents 181,213 13,165,272 7,502,006 CASH AND CASH EQUIVALENTS:

Beginning of year 1,929,409 67,056,731 72,483,181 End of year 2,110,622$ 80,222,003 $ 79,985,187 $ CASH AND CASH EQUIVALENTS:

Cash and investments 2,110,622 $ 68,635,405 $ 44,406,675 $ Cash and investments with fiscal agent - 11,586,598 35,578,512 Total cash and cash equivalents 2,110,622$ 80,222,003 $ 79,985,187 $ NONCASH ITEMS:

Construction in progress deletion -$ (4,697,582)$ -$ Loss on disposal of capital assets -$ (166,848)$ -$ Subscription asset early termination -$ (436,450)$ -$ Subscription liability early termination -$ 406,814$ -$ (Continued)
Enterprise Funds
Business-Type Activities -
City of Pleasanton
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 57

Water Sewer Golf Storm Drain
Reconciliation of Operating Income (Loss) to
to Net Cash Provided by (Used in) Operating Activities:

Operating (loss) 294,499 $ (2,502,015)$ (676,736) $ (1,897,619) $ Adjustments to reconcile operating (loss)
to net cash provided by (used in) operating activities:

Depreciation/amortization 4,048,092 2,753,673 1,556,903 1,065,286 (Increase)/decrease in accounts receivable, net (396,555) (137,343) 3,818 (1,603) (Increase)/decrease in inventory and prepaids - - 25,610 - (Increase)/decrease in deferred outflows of resources
related to pensions 453,031 248,153 - 47,636 (Increase)/decrease in deferred outflows of resources
related to OPEB 293,225 153,409 - 44,816 Increase/(decrease) in accounts payable
and other accrued expenses (817,561) 967,463 (24,788) 264,262 Increase/(decrease) in accrued payroll liabilities 10,289 1,262 - 4,648 Increase/(decrease) in deposits payable 12,810 - 57,255 - Increase/(decrease) in unearned revenue - (27,606) 32,550 8,033 Increase/(decrease) in claims payable - - - - Increase/(decrease) in pension liabilities 170,695 (203,819) - 39,285 Increase/(decrease) in OPEB liabilities (404,720) (220,332) - (65,427) Increase/(decrease) in deferred inflows of resources
related to pensions (36,854) (16,057) - (4,171) Increase/(decrease) in deferred inflows of resources
related to OPEB (246,105) (117,753) - (33,041) Net cash provided by (used in) operating activities 3,380,846$ 899,035 $ 974,612 $ (527,895) $ (Continued)
City of Pleasanton
Statement of Cash Flows (Continued)
Proprietary Funds
Business-Type Activities - Enterprise Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 58

Governmental
Activities
Nonmajor Internal
Enterprise Funds Totals Service Funds
Reconciliation of Operating Income (Loss) to
to Net Cash Provided by (Used in) Operating Activities:

Operating (loss) (697,167) $ (5,479,038) $ (259,197) $ Adjustments to reconcile operating (loss)
to net cash provided by (used in) operating activities:

Depreciation/amortization 64,849 9,488,803 2,027,611 (Increase)/decrease in accounts receivable, net 220 (531,463) 22,553 (Increase)/decrease in inventory and prepaids - 25,610 (1,417,134) (Increase)/decrease in deferred outflows of resources
related to pensions - 748,820 14,222,659 (Increase)/decrease in deferred outflows of resources
related to OPEB - 491,450 3,097,550 Increase/(decrease) in accounts payable
and other accrued expenses 17,256 406,632 28,220 Increase/(decrease) in accrued payroll liabilities (6,798) 9,401 1,185,732 Increase/(decrease) in deposits payable - 70,065 - Increase/(decrease) in unearned revenue 22,925 35,902 - Increase/(decrease) in claims payable - - (89,497) Increase/(decrease) in pension liabilities - 6,161 (1,984,618) Increase/(decrease) in OPEB liabilities - (690,479) (3,999,521) Increase/(decrease) in deferred inflows of resources
related to pensions - (57,082) (2,740,317) Increase/(decrease) in deferred inflows of resources
related to OPEB - (396,899) (2,953,101) Net cash provided by (used in) operating activities (598,715)$ 4,127,883 $ 7,140,940 $ (Concluded)
City of Pleasanton
Statement of Cash Flows (Continued)
Proprietary Funds
Business-Type Activities -
Enterprise Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 59

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60

FIDUCIARY FUND FINANCIAL STATEMENTS
Private-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 that serves the City's water tanks.

Custodial Funds - Custodial funds report fiduciary activities that are not held in a trust or equivalent arrangement. 61

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62

Private-
Purpose Trust Custodial
Fund Funds
ASSETS:

Pooled cash and investments 333,449$ 14,035,814 $ Receivables:

Accounts 5,425 991,866
Taxes - 647,623
Accrued interest 1,863 -
Total assets 340,737 15,675,303
LIABILITIES:

Accounts payable 18,311 6,993,342
Deposits payable - 12,672
Due to the City - 40,519
Total liabilities 18,311 7,046,533
NET POSITION:

Restricted for other government agencies 322,426 175,853 Restricted for Pleasanton Downtown Association - 79,067 Restricted for Livermore Share of LPFD - 8,373,850 Total net position 322,426$ 8,628,770 $
June 30, 2025
Statement of Fiduciary Net Position
City of Pleasanton
Fiduciary Funds
See accompanying Notes to the Basic Financial Statements 63

Private-
Purpose Trust Custodial
Fund Funds
ADDITIONS:

Retired employees contributions -$ 936,144$ Taxes - 76,521
Intergovernmental - 6,945,525
Interest and change on fair value of investments 17,024 298,309 Miscellaneous 925 7,545,293
Total additions 17,949 15,801,792
DEDUCTIONS:

Retiree benefits - 936,402
Contractual services 20,770 3,841,965
Distribution to other governments or organizations - 11,153,908 Miscellaneous 1,325 451
Total deductions 22,095 15,932,726
Changes in net position (4,146) (130,934) NET POSITION:

Beginning of year 326,572 8,759,704
End of year 322,426$ 8,628,770 $
City of Pleasanton
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 64

65 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, 2025

67 Page

Note 1 – Summary of Significant Accounting Policies ............................................................................................. 71

A. Reporting Entity ............................................................................................................................................... 71 B. Basis of Accounting and Measurement Focus...................................................................................... ............ 71 C. Cash, Cash Equivalents and Investments ......................................................................................................... 75 D. Restricted Cash and Investments ...................................................................................................................... 75 E. Fair Value Measurements ................................................................................................................................. 75 F. Receivables ....................................................................................................................................................... 75 G. Notes Receivable .............................................................................................................................................. 76 H. Interfund Transactions ...................................................................................................................................... 76 I. Inventory ........................................................................................................................................................... 76 J. Capital Assets ................................................................................................................................................... 76 K. Deferred Inflows/Outflows of Resources ......................................................................................................... 77 L. Compensated Absences .................................................................................................................................... 77 M. Leases ............................................................................................................................................................... 77 N. Subscription-Based Information Technology Arrangements ........................................................................... 78 O. Claims and Judgments ...................................................................................................................................... 79 P. Long-Term Debt ............................................................................................................................................... 79 Q. Interest Payable .............................................................................................................. .................................. 79 R. Pension Plans .................................................................................................................................................... 79 S. Other Postemployment Benefits (“OPEB”) Plan ............................................................................................. 80 T. Net Position ...................................................................................................................................................... 80 U. Fund Balances ................................................................................................................. ................................. 81 V. Property Taxes .................................................................................................................................................. 82 W. Use of Estimates ............................................................................................................................................... 82 X. Implementation of New GASB Pronouncements ............................................................................................. 82

Note 2 – Stewardship, Compliance, And Accountability ......................................................................................... 83

Note 3 – Cash and Investments .............................................................................................................................. .... 84

A. Deposits ............................................................................................................................................................ 84 B. Investments ....................................................................................................................................................... 85 C. Interest Rate Risk ............................................................................................................ ................................. 85 D. Fair Value Measurements ................................................................................................................................. 86 E. Credit Risk ........................................................................................................................................................ 86 F. External Investment Pool....................................................................................................... ........................... 88

Note 4 – Notes Receivable ........................................................................................................................................... 89

Note 5 – Leases Receivable .............................................................................................................................. ........... 94

Note 6 – Interfund Transactions .............................................................................................................................. .. 94

A. Due To/From Other Funds ....................................................................................................... ........................ 94 B. Advances To/From Other Funds ...................................................................................................................... 95 C. Transfers In/Out ................................................................................................................................................ 96

City of Pleasanton
Index to Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025

68 Page

Note 7 – Capital Assets ................................................................................................................................................ 97

A. Governmental Activities ................................................................................................................................... 97 B. Business-Type Activities .................................................................................................................................. 98

Note 8 – Long-Term Liabilities .............................................................................................................................. .... 99

A. Governmental Activities ................................................................................................................................... 99 B. Business-Type Activities ................................................................................................................................. 102 C. Debt Without City Commitment ..................................................................................................................... 105 D. Legal Debt Limit .............................................................................................................. ............................... 105 E. Arbitrage and Debt Covenant Compliance ...................................................................................................... 105

Note 9 – Risk Management ........................................................................................................................................ 105

Note 10 – Membership in Insurance Pool, Investment In in Joint Ventures, and Jointly Governed Organization ...................................................................................................................... 107

A. Bay Cities Joint Powers Insurance Authority .................................................................................................. 107 B. Local Agency Workers' Compensation Excess Joint Powers Authority ......................................................... 107 C. Livermore-Amador Valley Waste Management Agency ................................................................................ 107 D. Livermore-Amador Valley Transit Authority ................................................................................................. 108 E. Tri-Valley Transportation Council .................................................................................................................. 108 F. Livermore-Pleasanton Fire Department .......................................................................................................... 108 G. East Bay Regional Communications System Authority .................................................................................. 110 H. Alameda County Transportation Commission ................................................................................................ 110

Note 11 – Fund Balances ............................................................................................................................................ 111

Note 12 – Defined Benefit Pension Plan .................................................................................................................... 112

A. General Information about the Pension Plans and Summary of Balances by Plan ......................................... 112 B. Miscellaneous Plan .......................................................................................................................................... 113 C. Safety (Police) Plan ......................................................................................................................................... 116 D. LPFD Safety (Fire) Plan .................................................................................................................................. 119 E. Information Common to the Miscellaneous and Safety Plans ......................................................................... 122

Note 13 – Post-Employment Health Care Benefits .................................................................................................. 123

A. Plan Description and Benefits Provided .......................................................................................................... 123 B. Funding Policy ................................................................................................................................................. 126 C. Net OPEB Liability ............................................................................................................ ............................. 126 D. City of Pleasanton Retiree Healthcare Plan Changes in Net OPEB Liability ................................................. 127 E. Livermore-Pleasanton Fire Department Retiree Healthcare Plan .................................................................... 129

City of Pleasanton
Index to Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025

69 Page

Note 14 – Commitments and Contingencies ............................................................................................................. 131

A. Animal Shelter ................................................................................................................................................. 131 B. Lawsuits in the Normal Course of Business .................................................................................................... 131 C. LAVWMA Bonds .................................................................................................................. ......................... 131 D. Construction Commitments ............................................................................................................................. 132

Note 15 – Changes to or within the Financial Reporting Entity and Restatements ............................................. 132

Note 16 – Net Investment in Capital Assets .............................................................................................................. 133

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City of Pleasanton
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

71 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 Un ited 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 an d 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 ope rates 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 de velopment, 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 accountab le and there is financial be nefit or burden relationship between the City and the component units. Blended com ponent 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 ma nagement of the primary government has operational responsibility for the component units. There are no separ ately issued financial statements for the following blended component units:

Housing Authority of the City of Pleas anton, 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 S ection 2.36 of the Municipa l 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 Join t Powers Financing Authority (the “PJPFA”) was formed by a Joint Exercise of Powe rs 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 f unds, 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, de ferred 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 incl ude a Statement of Net Position and a Statement of Activities. These statements present summaries of gove rnmental 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, 2025

72 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 acc ounting, 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, pa yables and receivables. All internal balances in the Statement of Net Po sition have been eliminated except those representing balances between the governmental activities and the business-type activities, whic h are presented as internal balances and eliminated in the total primary government column. In the Statemen t of Activities, internal service fund transactions have been eliminated; however, those tran sactions 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 Bala nce 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 differ ences in net position as presented in these statements to the net position presented in the governme nt-wide financial statements. The C ity 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 include d 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.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditu res of the current period. Revenues are recorded when received in cash, except that revenues subject to accrual (g enerally 90 days after year-end, with the exception of property tax for which the accrual pe riod 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. Expenditur es are recorded in the accounting period in which the related fund liability is incurred.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

73 Note 1 – Summary of Significant Accounting Policies (Continued)

B. Basis of Accounting and Measurement Focus (Continued)

Governmental Fund Financial Statements (Continued)

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 saf ety, 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 guide lines 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 expe nditures, literacy programs, and miscellaneous City projects.

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 Fl ows for each major proprietary fund and nonmajor funds in aggregate.

A separate column representing internal service funds is also presented in these statem ents. 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 th e accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Operating revenues in a proprietary fund are those revenu es that are generated from th e primary operations of the fund. All other revenues are reported as non-operating revenues. Operating e xpenses 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.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

74 Note 1 – Summary of Significant Accounting Policies (Continued)

B. Basis of Accounting and Measurement Focus (Continued)

Proprietary Fund Financial Statements (Continued)

The Sewer Fund - accounts for the operation and maintenance of th e City's sewer collection system and related facilities. It is a self-supporting activity, which prov ides services on a user-charg e 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 Pleasan ton Golf, LLC (CourseCo, Inc.) to manage and maintain the golf course and its facilities. This fund also account s 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 f und are for the federally ma ndated 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 S ection 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 he ld 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 ow n-source revenues or 2) fr om government-mandated nonexchange transactions or voluntary nonexchange transactions.

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 th e 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 im provements, asset forfeitures, miscellaneous agencies, and the City of Livermore share only of the Livermore-Pleasanton Fire Department activities.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

75 Note 1 – Summary of Significant Accounting Policies (Continued)

C. Cash, Cash Equivalents and Investments

The City pools its available cash for investment purposes. The City's cash a nd 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 combin ed 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 proprie tary funds types, cash and cash equivalents include all pooled cash and investments, as the City operates an inte rnal cash management pool wh ich 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 pr ojects, for deposits held for others within the enterprise funds, and for amounts held in an irrevocable trust for pension activities.

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 in cluded 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 liab ility is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on th e 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 Bu siness Support Program Nonmajor Governmental Fund, $60,000 in the Water Enterprise Fund, and $40,000 in the Sewer Enterprise Fund.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

76 Note 1 – Summary of Significant Accounting Policies (Continued)

G. Notes Receivable

The City administers several housing and small busin ess subsidy programs and issues loans to qualified applicants. Management has determined that many of th ese loans may be forgiven, re negotiated, or extended if certain terms and conditions are met. As of June 30, 2025, it was determined th at $36.5 million of the $38.8 million loan portfolio is not expected to be collected ultimately. The loans are reco rded net of an estimated allowance for potentially uncollectible loans.

H. Interfund Transactions

Interfund transactions are reflected as either loans, ser vices provided, reimbursements, or transfers. Activity between funds that are representative of lending/borrowing a rrangements 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 balan ces outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "int ernal balances”. Services provided, deemed to be at market or near market ra tes, are treated as revenues and expenditures/expenses.

Reimbursements are when one fund incurs a cost, charg es 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.

I. Inventory

Inventory at the City's Callippe Preserve Golf Course is valu ed at the lower of cost or market; cost is determined using the moving average costing met hod 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 es timated historical cost. City policy has set the capitalization threshold for reporting general capital assets and subscripti ons at $5,000, for CIP projects at $50,000, and for reporting infrastructure (streets, water, sewer and storm dr ains) 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 wh en received. Depreciation is recorded on a straight- line basis over the useful lives of the assets as follows:

Assets Years
Buildings and Improvements 20-50 years
Machinery, Vehicles and Equipment 5-20 years
Infrastructure 20-40 years
Subscription assets 3-5 years

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

77 Note 1 – Summary of Significant Accounting Policies (Continued)

J. Capital Assets (Continued)

The City has included the value of all infrastructure in the current Basic Fina ncial 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 repor t 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.

The City accounts for compensated absences in accordance with GASB St atement No. 101, Compensated Absences. Under this standard, a liabili ty is recognized for leave benefits (s uch as vacation and sick leave) when the benefits are attributable to services already rendered, accumulate for use in future periods, and are more likely than not to be used or paid. The lia bility is measured using the employee’s pay rate in effect at the financial statement date and includes salary-related payments.

The City records both an asset funded by the operating fu nds and a liability in its Employee Benefits Internal Service Fund to recognize the financial effect of unused vacation and other compensated leaves.

M. Leases

A lease is defined as a contract that conveys control of the rights to use another en tity’s nonfinancial asset as specified in the contract for a period of time in an ex change 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 lea se 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. Subseque ntly, 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 be fore 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 noncancella ble leases of 8251 Santos Ranch Road, 3801 Doolan Road Cell Tower, 3998 Foothill Road, 900 Santos Ranch Road, a nd the Case Avenue land lease (See Note 5). The City recognizes a lease receivable and a deferre d inflow of resources in the government ‐wide and governmental fund financial statements.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

78 Note 1 – Summary of Significant Accounting Policies (Continued)

M. Leases (Continued)

At the commencement of a lease, the City initially measures the lease receivabl e at the present value of payments expected to be received during the lease term. Subseque ntly, 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 befo re 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 dete rmines (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 circum stances that would require a remeasureme nt of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that ar e 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 subscripti on liabilities with an initial, individual value of $5,000 or more.

At the commencement of a subscription, the City initially measures the subscr iption liability at the present value of payments expected to be made during the subscripti on term. Subsequently, the sub scription liability is reduced by the principal portion of subscripti on payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscr iption 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 subscrip tions include how the City determines (1) the discount rate it uses to discount the exp ected 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 us es its estimated incremental borrowing rate as the discount rate for subscriptions.

 The subscription term includes the noncancellable pe riod 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 circum stances that would require a remeasurement of its subscriptions and will remeasure the subscription asset and liability if certain cha nges occur that are expected to significantly affect the amount of the subscription liability.

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

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

79 Note 1 – Summary of Significant Accounting Policies (Continued)

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’ comp ensation claims. The estimat ed 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 liab ility 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 stat ements, long-term debt and other lo ng-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 issu ance costs are recognized in the period in which they occur.

In the fund financial statements, governmental fund s 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 othe r financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, wh ether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Q. Interest Payable

In the government-wide financial statem ents, 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 typ es recognize the interest payable when the liability is incurred.

R. Pension Plans

For purposes of measuring the net pens ion liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pens ion expense, information about the fi duciary 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 paymen ts (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:

CalPERS
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 - June 30, 2024

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

80 Note 1 – Summary of Significant Accounting Policies (Continued)

R. Pension Plans (Continued)

Gains and losses related to changes in total pension liab ility and fiduciary net position are recognized in pension expense systematically over time. The first amortized am ounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categori zed 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 proj ected and actual earnings is amortized on a straght-line basis over five years. All other amounts are amortized st raight-line over the average expected remaining service lives of all members that are provided with benefits (ac tive, 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, de ferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, informati on 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. Investme nts are reported at fair value, except for money market investments, which are reported at amortized cost.

The following timeframes are used for OPEB reporting:

OPEB
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 - June 30, 2024

Gains and losses related to changes in total OPEB liab ility 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 categor ized 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 differen ce 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 pr ovided 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 outst anding balances of debt that are attributable to the acquisition, construction, or improvement of those assets and retention payable.

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

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

81 Note 1 – Summary of Significant Accounting Policies (Continued)

T. Net Position (Continued)

Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of res ources that are not included in the de termination 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 for General Fund, 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. Adop tion of a resolution by the City Council is required to commit resources or to rescind the commitment.

Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the 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 ba lances 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 Resolutio n No. 11-463 classifying the City's fund balances in conformance with Governmental Accoun ting 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 bi nding) 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 d esignated 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.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

82 Note 1 – Summary of Significant Accounting Policies (Continued)

U. Fund Balances (Continued)

The City has earmarked a portion of the unassigned fund bala nce 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 reserve s 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 throu gh a resolution or budget adoption.

When an expenditure is incurred for purposes for whic h both restricted and unrestricted fund balances are available, the City’s policy is to apply restricted fund ba lance 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.

W. Use of Estimates

The preparation of basic financial statements in acco rdance with U.S. GAAP requires management to make estimates and assumptions that affect certain reported am ounts and disclosures. Actual results could differ from these estimates and assumptions.

X. Implementation of New GASB Pronouncements

The requirements of the following accounting standard is effective for the purpose of implementation, if applicable to the City, for the year ended June 30, 20 25. The financial statements included herein apply the requirements and provisions of these statements, including necessary retro active adjustments to financial statement classifications and presentations.

GASB Statement No. 101 – In June 2022, GASB issued Statement No. 101, Compensated Absences . The objective of this Statement is to better meet the inform ation needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Application of this statement had a moderate effect on the City’s fiscal year ended June 30, 2025. See Note 15.

GASB Statement No. 102 – In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government's vulnerabilities due to cer tain concentrations or constraints which may limit a government's ability to acquire resources or control spending . Application of this statement did not have an effect on the City’s fiscal year ended June 30, 2025.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

83 Note 2 – Stewardship, Compliance, and Accountability

Deficit Fund Balances/Net Position

At June 30, 2025, the City reported deficit fund equities in the following funds:

Fund Name Fund Type Deficit Cause
Miscellaneous Grants Special Revenue Fund (230,358) $ 1 Employee Benefits Internal Service Fund (135,405,613) 2 Retiree Insurance Reserve Internal Service Fund (6,894,897) 3

1. Deficit is primarily due to expenditures incurred for the purchase of command and crime vehicles in the Law Program for FY 2024/25. This program receives an annual allocation, and the deficit fund balance is expected to be eliminated within the next budget cycle.

2. Deficit is primarily due to the recording of the net pension liability required by GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and the implementation of GASB Statement No. 101, Compensated Absences. In addition to accrued vacation and compensatory time off, the City also recorded sick leave liability and other relevant benefits in accordance with the new standard. The City will continue to make the required pension contributions each year based on the CalPERS payment amortization schedule. As described in Note 12A Funding Policy, in March 2018, the City established a Secti on 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, 2025, was $56.3 million. The City intends to use the Section 115 Tr ust to help make future pension contributions under the following conditions:

 Annual CalPERS employer pension contri bution rate increase (in dollars) is greater than the growth rate of 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 b een 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 th at will result in inte rest savings greater th an interest earnings on the Section 115 Trust.

3. 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 OPEB

irrevocable Trust (OPEB Trust). The City has been a nnually contributing to the OP EB Trust to pre-fund the City’s amortized 30-year unfunded OPEB liability. As of June 30, 2025, the OPEB Trust had a balance of $74.6 million. The City will use the OPEB Trust to fund future OPEB benefit payments.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

84 Note 3 – Cash and Investments

The City maintains a cash and investments pool, which in cludes cash balances and aut horized 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, 2025:

Fiduciary
Governmental Business-Type Fund Statement
Activities Activities of Net Position Total
Unrestricted assets:

Cash and investments 204,306,175 $ 68,635,405 $ 14,369,263 $ 287,310,843 $ Restricted assets:

Cash and investments with fiscal agent 56,444,889 11,586,598 - 68,031,487 Total cash and investments 260,751,064$ 80,222,003 $ 14,369,263 $ 355,342,330 $

At June 30, 2025, the City's pooled cash and investments consisted of the following:

June 30, 2025
Deposits:

Cash on hand 7,600 $
Restricted Cash 851,150
Passbook/Checking 1,027,282
Deposits with Banks 31,638,378
Total deposits 33,524,410
Investments:

US Government Sponsored Enterprise Securities 137,087,385 Medium-Term Corporate Notes 21,361,810
California Local Agency Investment Fund 66,579,688
Supranationals 2,959,730
Asset Backed Securities 442,645
US Treasury Securities 20,400,421
Money Market 5,506,229
Water Revenue Bond - Money Market Mutual Funds 11,147,662 PARS Trust - Mutual Funds 56,332,350
Total Investments 321,817,920
Total City Treasury 355,342,330$

A. Deposits

As of June 30, 2025, the book value of the City's c ash with banks and petty cash was $33,524,410 and the associated bank balances were $34,078,350. The differen ce between the bank balance and the City's carrying amount represents outstanding checks and deposits in tr ansit. Of the bank balance, $986,490 was covered by federal depository insurance and $33,091, 860 was collateralized by the pledgi ng 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.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

85 Note 3 – Cash and Investments (Continued)

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 Maximum
by Investment * Maximum Percentage Investment in
Authorized Inv estment Type Policy Maturity of Portfolio One Issuer Securities of U.S. Government Agencies Yes 5 years 100% ** 30% M unicipal 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% None Bankers' Acceptances Yes 180 days 30% 5%
Commercial Paper Yes 270 days 25% 5%
Negotiable Certificates of Deposit Yes 5 years 30% None Medium-term Corporate Notes Yes 5 years 30% 5%
Money Market Mutual Funds Yes n/a 20% None
M anaged Portfolio for Pension Liabilities Yes n/a None None California Asset Management Program (CAMP) Yes n/a 30% None Supranational Organizations Securities Yes 5 years 30% 10% Collateralized Bank Deposits Yes n/a 30% None
Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized M ortgage Obligations Yes 5 years 20% 5% Repurchase and Reverse Repurchase Agreements Yes n/a 15% None Non-negotiable Certificates of Deposit (Time Deposits) Yes 5 years 30% None State 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, 2025, from the fiscal year ended June 30, 2024, amounted to an unrealized loss of $1,782,638.

C. Interest Rate Risk

As a means of limiting its exposure to fair value losses aris ing from interest rates, the City's investment policy limits investments to a maximum maturity of five years. At June 30, 2025, the City had the following investment maturities:

1 Year 1 Year to 3 Years to
Investment Type Total or Less 3 Years 5 Years
US Government Sponsored Enterprise Securities
Non-callable 2,887,920 $ - $ 2,887,920$ - $ Callable 134,199,465 102,979,106 31,220,359 - Medium-Term Corporate Notes 21,361,810 10,765,080 2,508,380 8,088,350 Supranationals 2,959,730 974,930 1,984,800 - Asset Backed Securities 442,645 - 442,645 - US Treasury Securities 20,400,421 2,006,210 13,812,341 4,581,870 Money Market 5,506,229 5,506,229 - - California Local Agency Investment Fund 66,579,688 66,579,688 - - Water Revenue Bond - Money Market Mutual Funds 11,147,662 11,147,662 - - PARS Section 115 Pension Trust Fund 56,332,350 56,332,350 - - Total investments 321,817,920$ 256,291,255 $ 52,856,445 $ 12,670,220 $ Remaining M aturity

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

86 Note 3 – Cash and Investments (Continued)

C. Interest Rate Risk (Continued)

During the year, the City held callable notes. Callable notes are debt securities (other than asset-backed securities) whose cash flow characteristics (c oupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forw ards or options. They are issued by corporations a nd by government- sponsored enterprises such as the Federal National Mort gage 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 matur ity, depending on changes in interest ra tes. As of June 30, 2025, the City held $134,199,645 in callable government agencies, wh ich amounted to 52.76 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 fa ir value hierarchy of the fair value of investments of the City as of June 30, 2025:

Level 1 Level 2 Total
US Government Sponsored Enterprise Securities
Non-callable - $ 2,887,920$ 2,887,920 $ Callable - 134,199,465 134,199,465 Medium-Term Corporate Notes - 21,361,810 21,361,810 Supranationals - 2,959,730 2,959,730 Asset Backed Securities - 442,645 442,645 US Treasury Securities 20,400,421 - 20,400,421 PARS Section 115 Pension Trust Fund - 56,332,350 56,332,350 Subtotal 20,400,421 $ 218,183,920 $
Investments Exempt from Fair Value Hierarchy:

Mone y Ma rke t 5,506,229
California Local Agency Investment Fund 66,579,688
Water Revenue Bond - Money Market Mutual Funds 11,147,662 Total inv estments 321,817,920$

U.S. Government agency securities and medium-term corpor ate notes, classified in Level 2 of the fair value hierarchy, are valued using matrix pricing techniques ma intained by various pricing ve ndors. 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, th e City's policy, consistent with State law, limits investments in corporate notes to notes rated "A" or better by a nationally rec ognized statistical rating organization, including Moody's Investor's Service and Standard & Poor's.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

87 Note 3 – Cash and Investments (Continued)

E. Credit Risk (Continued)

Excluding the PARS Section 115 Pension Trust Fund, th e City's policy, consistent with State law, limits investments in corporate notes to notes rated "A" or better by a nationally rec ognized statistical rating organization, including Moody's Investor's Service and Standard & Poor's.

The City's investments are rated by the nationally recogni zed rating organizations, and as of June 30, 2025, the ratings, as well as the percentage of credit risk are as follows:

Standard &
M oody's Poor's Percentage
US Government Sponsored Enterprise Securities:

Federal Farm Credit Bank Aa1 AA+ 3.60%
Federal Home Loan Bank Aa1 AA+ 44.37%
Federal National Mortgage Assn Aa1 AA+ 2.43%
Freddie M ac Aa1 AA+ 3.50%
Medium-Term Corporate Notes:

Abbvie Inc. A3 A- 0.20%
Air Products and Chemicals, In A2 A 0.20%
Apple Inc. Aaa AA+ 1.94%
Bank of America A1 A- 0.20%
Bank of New York Mellon Aa3 A 0.20%
Caterpillar Financial Services A2 A 0.20%
Chubb Limited A2 A 0.20%
Cisco Systems, Inc. A1 AA- 0.20%
Duke Energy Corporation A1 A 0.19%
Eli Lilly & Co Aa3 A+ 0.20%
John Deere Capital Corp A1 A 0.20%
JPM organ Chase & Co A1 A 0.20%
JPM organ Chase Bank NA Aa2 AA- 1.13%
Marsh & Mclennan Companies Inc A3 A- 0.20%
Meta Platforms Inc Aa3 AA- 0.20%
M organ Stanley A1 A- 0.20%
Paccar Financial Corp A1 A+ 0.20%
Prologis LP A2 A 0.20%
Royal Bank of Canada A1 A 0.20%
State Street Corp Aa3 A 0.20%
State Street Corporation Aa3 A 0.20%
Toyota Motor Credit Corp A1 A+ 1.16%
U.S. Bancorp A3 A 0.20%
United Health Group Inc. A2 A+ 0.19%
Supranationals:

International Bank for Reconst Aaa AAA 0.78%
International Finance Corp Aaa AAA 0.38%
Asset Backed Securities:

BM W Vehicle Owner Trust NA AAA 0.07%
Hyundai Auto Receivables Trust NA AAA 0.10%
US Treasury Securities:

U S Treasury Aa1 AA+ 8.02%

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

88 Note 3 – Cash and Investments (Continued)

E. Credit Risk (Continued)

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 Inv estment Fund). The City is in compliance with these provisions of the Policy.

Investments in the securities of any individual issuers, ot her than U.S. Treasury Securities, mutual funds and the California Local Agency Investment Fund, that represent 5 pe rcent or more of the City's total investments are as follows as of June 30, 2025:

Percentage of
U.S. Government Agencies Amount Invested Investments
Federal Home Loan Bank $ 112,860,221 44.37%

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 investme nts, 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 cust odian, U.S. Bank. Securities held on the City's behalf by its third-party custodian are not at risk or commingle d with other entities' securities, therefore removing the custodial risk for the City.

F. External Investment Pool

The City is a participant in the Lo cal 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, 2025, the City had $66,579,688 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.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

89 Note 4 – Notes Receivable

The following table summarizes the notes receivable outsta nding as of June 30, 2025. A brief description of the funding sources for the housing loans are included in the ta ble below. Detail for all hous ing loans and miscellaneous loans follow.

Allowance for Loans
Gross Receivable Uncollectible Amount Receivables, net
Housing Loans:

Lower Income Housing Special Revenue Fund:

Low Income Housing Project Loans 2,132,575$ (2,132,575) $ - $ Affordable Housing/Rehabilitation Home Loans 419,321 (65,000) 354,321 Senior Housing Project Loans 33,150,383 (33,150,383) - Total Lower Income Housing Special Revenue Fund 35,702,279 (35,347,958) 354,321 HOME Program Nonmajor Special Revenue Fund:

Low Income Housing Project Loans 160,000 - 160,000 Affordable Housing/Rehabilitation Home Loans 1,357,736 (636,176) 721,560 Senior Housing Project Loans 450,000 (450,000) - Total HOME Program Nonmajor Special Revenue Fund 1,967,736 (1,086,176) 881,560 CDBG Program Nonmajor Special Revenue Fund:

Affordable Housing/Rehabilitation Home Loans 402,447 (47,564) 354,883 Total Housing Loans 38,072,462 (36,481,698) 1,590,764 Miscellaneous Loans:

Sewer Connection Fee Loan 15,007 (15,007) - Hacienda Business Park LED Project Loan 7,225 - 7,225 Business Support Program Loans 322,617 (50,000) 272,617 Hacienda Business Park Owners Association Loan 353,549 - 353,549 Total M iscellaneous Loans 698,398 (65,007) 633,391 Total City Loans 38,770,860 $ (36,546,705) $ 2,224,155 $

Housing Loans

The City has loaned funds to private developers, individu als, 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 deve lopment and rehabilitation of affordable housing for seniors and low income residents. Progr ams within the LIHF include the Pleasanton Down Payment Assistance Loan Program (PDALP), the Hous ing Rehabilitation Program (HRP), and the Pleasanton Homeownership Assistance Program (PHAP). At June 30, 2025, the loan receivable, net was $354,321. The gross value of the loan receivable was $35,702,279 and allowance for uncollectible amounts $35,347,958.

 HOME Program Nonmajor Special Revenue Fund - Through its membership in the Alameda County HOME Consortium, the City receives an annual allocati on 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 f unds primarily to agencies and programs that provide housing to low-income persons a nd households. HOME funds of $37,427 were received in FY 2024/25. At June 30, 2025, the loan receivable, net was $881,560. The gross value of the loan receivable was $1,967,736 and allowance for uncollectible amounts $1,086,176.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

90 Note 4 – Notes Receivable (Continued)

Housing Loans (Continued)

 Community Development Block Grant Nonmajor Special Revenue Fund - As an "entitlement city" with a population greater than 50,000, the City receives an annua l allocation of federal funds directly from the U.S.

Department of Housing and Urba n Development (HUD) through the Co mmunity Development Block Grant (CDBG) Program. The City makes its CDBG funds av ailable annually for application by agencies that provide housing and services to low-income persons and households. At June 30, 2025, the loan receivable, net was $354,883. T he 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, 2025, 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 six REACH, Inc. loans currently outstanding are summarized in the following table:

Date of Loan Loan Amount Funding Sources
January 1992 75,000$ HOME Program
January 1997 201,440 HOME Program; Lower Income Housing Fund August 2006 476,091 HOME Program; CDBG Program
February 2009 195,000 HOME Program
May 2010 200,000 HOME Program
June 2024 300,000 HOME Program; Lower Income Housing Fund Total 1,447,531$

 Case Avenue Associates - In 1996, the City loaned $766,063 to C ase Avenue Associates to finance the construction of the Promenade Apartments, a mixed inco me rental housing development of very low-income, low-income and market rate units. This loan was to fi nance 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 th e 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 ava ilable cash flow from the project. Any interest not paid due to insufficient cash flow is deferred until the first y ear 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. The loan was paid off in FY2025.

 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 ra te 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.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

91 Note 4 – Notes Receivable (Continued)

Housing Loans (Continued)

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. The loan was paid off in FY2025.

 Pleasanton Homeownership Assistance Program
- As part of the Pleasanton Homeownership Assistance
Program (PHAP) developed by the C ity to provide affordable housing opportunities for households of low- and moderate-income, loans are pr ovided to eligible low- and m oderate-income home buyers 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 Progra m (PDALP) in October 2020, which provides increased loan amounts of up to $100,000 and includes a shared appreciation repayment calculation. During FY 2024/25, the City received loan repayments totaling $13,352. The outstanding amount due to the City for these types of loans as of June 30, 2025, was $145,497.

 Kottinger Gardens Phase 1 Associates, L.P. (Affiliated Corporation with MidPen Housing Corporation) - On November 12, 2013, the City approved a Dispositi on, Development and Loan Agreement with MidPen Housing 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, 2025, were $11,174,640 and $1,451,243, respectively.

At June 30, 2025, the gross value of the loan r eceivable 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 Kottin ger 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 inte rest due in October 2071. The principal and interest outstanding at June 30, 2025, were $450,000 and $134,932, respectively. At June 30, 2025, 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 D ecember 2074. The principal and interest outstanding at June 30, 2025, were $2,861,360 and $637,665, respectivel y. At June 30, 2025, the gross value of loan receivable was $2,861,360 and the allowance for uncollectible amount was $2,861,360.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

92 Note 4 – Notes Receivable (Continued)

Housing Loans (Continued)

 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 accrue d to be paid from surplus cash in subsequent years.

At maturity, on September 1, 2060, an y unpaid principal and interest will be forgiven. Consequently, the City has recorded the accrued unpaid interest in an allo wance for uncollectible acc ounts in its Lower Income Housing Fund. As of June 30, 2025, the accrued unpaid interest in the allowance for uncollectible amounts was $2,368,399 and the principal amount outstanding was $2,490,000. At June 30, 2025, the gross value of loan receivable was $2,490,000 and the entire amount w as 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 ha ve 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 cons truction of Lorenzo Creek apartments (28 units of rental housing in Castro Valley for homeless individu als 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 A lliance 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 fundi ng agreement). Interest outstanding on the Housing Alliance loan at June 30, 2025, was $43,800. The principal amount outstanding for all three loans at June 30, 2025, was $160,000.

 Housing Rehabilitation Program - The Housing Rehabilitation Program (HRP) provides financial assistance for the improvement of properties occupied by very lo w- or low-income homeowners. These loans accrue 3 percent simple interest. Principal and interest are defe rred for thirty years or until such time the property is sold or ceases to be the principal residence of the bor rower. 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 loan s that have been funded with HOME funds and Lower Income Housing funds. The City currently contracts w ith 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, 2025, were $402,447 and $170,862, respectively. The outstanding principal and interest amounts of these loans funded by HOME funds as of June 30, 2025, were $81,593 a nd $29,908 respectively.

The outstanding principal and interest amounts on these loans funded by Lower Income Housing funds as of June 30, 2025, were $150,000 and $2,569, 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 constr uction of Sunflower Hill, a 31-unit affordable rental housing development for special needs residents. On Ma rch 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 deve lopment. The loan, funded from the Lower Income Housing Fund, accrues simple annual interest of 3 per cent. The entire balance of the loan, together with accrued interest, is payable in full in May 2076. The principal and interest outst anding as of June 30, 2025, were $2,132,575 and $405,610, respectively. At June 30, 2025, the gross value of loan receivable was $2,132,575 and the entire amount was offset with an allowance for uncollectible amounts.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

93 Note 4 – Notes Receivable (Continued)

Housing Loans (Continued)

 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 Departme nt 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 inte rest 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 consolid ates 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. Du e to uncertainty about repayments, th e City recorded an allowance for uncollectible amounts in its Lower Income Housing Fund for both principal and interest.

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 restaura nts to locate in the downtown area. In 1997, the City expanded the loan program to restaurants outside down town Pleasanton. At June 30, 2025, 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, 2025, was $7,225.

 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 busin esses 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, 2025, was $322,617 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 ar e one hundred twenty (120) monthly payments due the first of each month commencing January 1, 2020. The in terest rate on the loan is set at an annual rate of compounded interest of 2.72 percent. The outstanding amount as of June 30, 2025, was $353,549.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

94 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 fro m approximately three to thirty year s. An initial lease receivable was recorded in the amount of $7,402,413. As of June 30, 2025, the value of the lease receivable is $5,890,212. The value of the deferred inflow of resources as of June 30, 2025 w as $5,838,324, and the amortizati on of the deferred inflows of resources (lease revenue) and lease interest recognized during the year were in the amounts of $271,680 and $15,621, respectively.

Year Ending
June 30, Principal Interest Total
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 240,451 9,158 249,609
2031-2035 1,127,411 34,498 1,161,909
2036-2040 1,075,400 24,600 1,100,000
2041-2045 1,084,123 15,877 1,100,000
2046-2050 1,092,917 7,083 1,100,000
2051 219,646 355 220,001
Total 5,890,212$ 140,290 $ 6,030,502 $

Note 6 – Interfund Transactions

A. Due To/From Other Funds

At June 30, 2025, the City has following due to and from other funds:

Due from
Other Funds
Governmental
Fund:

Due to Other Funds General
Fund
Governmental Fund:

Nonmajor Governmental Funds 233,437$
Proprietary Fund:

Golf Enterprise Fund 1,102,762
Total 1,336,199 $

As of June 30, 2025, the General Fund provided $102,5 33 to the Community Development Block Grant Special Revenue Fund, $90,009 to the HOME Program Special Revenue Fund, $40,895 to the HBPOA Maintenance District Special Revenue Fund and $1,102,762 to the Golf Enterprise Fund. These transactions represent short-term transfers to funds with negative cash balances at June 30, 2025.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

95 Note 6 – Interfund Transactions (Continued)

B. Advances To/From Other Funds

The City has authorized interfund advances to be used fo r the operations of the funds receiving the advances. At June 30, 2025, the outstanding advances are as follows:

Governmental Proprietary
Fund: Funds:

Advances from Other Funds General Internal Service
Fund Funds Total
Governmental Fund:

Nonmajor Governmental Funds - $ 175,664$ 175,664 $ Proprietary Fund:

Water Enterprise Fund - 579,096 579,096 Nonmajor Enterprise Funds 500,000 - 500,000 Total 500,000$ 754,760 $ 1,254,760 $
Advances to Other Funds

On April 17, 2015, the Replacement /Renovation Internal Service Fund advanced $2,000,000 to the Park Capital Improvement Program Ca pital 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 be repaid 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 Alamed a County Shelter-in-Place (SIP) Or der in mid-March 2020, the City granted a two-year payment re prieve and a two-year repayment extensi on to the sports groups and members of the Play Bernal Fundraising Campaign. Th e repayment date has been extended to October 2028. The outstanding amount as of June 30, 2025, was $175, 664.

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 advanc ed to the Cemetery Fund to help establish the Pleasanton Pioneer Master Plan Implementation Re serve Fund. The General Fund currently provides a $50,000 subsidy to the Cemetery Fund. Once the Ceme tery operating revenues ar e sufficient to cover

operating expenses without requiring a subsidy, the Cemetery Fund will begin to repay the interfund loan. As of June 30, 2025, 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, 2025, was $579,096.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

96 Note 6 – Interfund Transactions (Continued)

C. Transfers In/Out

Transfers in/out for the year ended June 30, 2025, were as follows:

Water Sewer Storm Drain Nonmajor
General Nonmajor Enterprise Enterprise Enterprise Enterprise Transfers Out Fund Funds Fun d Fund Fund Fund Total
Governmental Fund:

General Fund - $ 5,871,578$ 390,096 $ 114,891 $ 625,000 $ 137,481 $ 7,139,046 $ Low Income Housing
Special Revenue Fund - 260,000 - - - - 260,000 Nonmajor Governmental Funds 375,000 2,523,782 1,782 - 14,000,000 - 16,900,564 Proprietary Fund:

Golf Enterprise Fund 31,780 - - - - - 31,780 Internal Service Funds 959,000 - 46,000 23,000 - - 1,028,000 1,365,780$ 8,655,360 $ 437,878 $ 137,891 $ 14,625,000$ 137,481 $ 25,359,390$ Transfers In
Proprietary FundsGovernmental Funds
The General Fund transferred $5,871, 578 to nonmajor governmental f unds: $3,471,578 to the Miscellaneous Capital Improvement Programs Capital Projects Fund to fund partial loan repayments and capital improvement projects, $2,400,000 to Street Capital Improvement Progr am Capital Project fund to fund capital improvement projects, $390,096 and $114,891 to Water Enterprise Fund and Sewer Enterprise Fund, respectively to fund senior and low income discounts, $625,000 to Storm Drain Enterprise Fund to fund capital improvement projects and subsidize operations, and $137,481 to Nonmajor Enterprise Fund to subsidize operations.

The Low Income Housing Special Revenue Fund transfe rred $260,000 to Nonmajor Governmental fund to fund partial loan repayments.

Nonmajor Governmental Funds transferred $375,000 to the General Fund to fund operational expenditures and fund partial loan repayments, $2,523 ,782 to nonmajor governmental funds to fund capital improvement projects, $1,782 to Water Enterprise Fund to fund partial loan repayments, and $14,000,000 to Storm Drain Enterprise Fund to fund capital improvement projects.

Golf Enterprise Fund transferred $31,780 to the General Fund to fund partial loan repayments.

Internal Service Funds transferred $959,000 to the Genera l Fund to provide subsidy for medical benefits, $46,000 to the Water Enterprise Fund to provide subsidy for me dical benefits, $23,000 to the Sewer Enterprise Fund to provide funding for capital improvement projects.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

97 Note 7 – Capital Assets

A. Governmental Activities

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

Balance Balance
Governmental activities: July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital 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 18,656,446 35,185,828 (6,460,688) (4,454,487) 42,927,099 Total capital assets, not being depreciated 304,779,138 35,185,828 (6,460,688) (4,454,487) 329,049,791 Capital assets, bei ng de preci ated / amortized:

Buildings 99,971,478 206,014 (392,863) 1,308,634 101,093,263 Machinery and equipment 36,249,612 1,225,497 (322,483) 430,732 37,583,358 Improvements other than buildings 83,345,738 - - 902,320 84,248,058 Vehicles 16,719,468 4,431,000 (688,760) - 20,461,708 Infrastructure 328,881,776 - - 1,812,801 330,694,577 Lease assets:

Buildings 325,832 - - - 325,832 Subscription assets 2,383,584 1,703,261 (268,686) - 3,818,159 Total capital assets, being depreciated / amortized 567,877,488 7,565,772 (1,672,792) 4,454,487 578,224,955 Less accumulated depreciation / amortization for:

Buildings (38,316,088) (2,006,515) 233,355 - (40,089,248) Machinery and equipment (26,219,792) (1,550,769) 309,226 - (27,461,335) Improvements other than buildings (59,180,722) (2,635,721) - - (61,816,443) Vehicles (13,857,197) (1,259,913) 628,617 - (14,488,493) Infrastructure (222,548,748) (8,276,530) - - (230,825,278) Lease assets:

Buildings (108,611) (108,611) - - (217,222) Subscription assets (1,127,822) (888,852) 268,686 - (1,747,988) Total accumulated depreciation / amortization (361,358,980) (16,726,911) 1,439,884 - (376,646,007) Total capital assets, being
de preci ated / amortized, net 206,518,508 (9,161,139) (232,908) 4,454,487 201,578,948 Total governmental activities capital assets, net 511,297,646$ 26,024,689 $ (6,693,596) $ - $ 530,628,739$ Depreciation/amortization expense was charged to various governmental functions as follows:

General government 482,828 $
Public safety 765,388
Community development 1,771,567
Public works 10,094,074
Community activities 1,585,443
Internal service funds 2,027,611
Total 16,726,911$

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

98 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, 2025, is as follows:

Balance Balance
Business-type activities: July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated:

Land 14,512,340 $ 153,697 $ - $ - $ 14,666,037$ Construction in progress 13,030,777 7,616,351 (4,697,582) (4,773,405) 11,176,141 Total capital assets, not being depreciated 27,543,117 7,770,048 (4,697,582) (4,773,405) 25,842,178 Capital assets, being depreciated / amortized:

Buildings 38,578,125 - - - 38,578,125 Machinery and equipment 16,662,257 358,796 (325,971) - 16,695,082 Improvements other than buildings 31,991,425 - - - 31,991,425 Vehicles 1,424,801 69,783 (67,770) - 1,426,814 Infrastructure 307,132,452 - (600,000) 4,773,405 311,305,857 Lease assets:

Equipments 320,902 63,321 (102,077) - 282,146 Subscription assets 1,007,469 - (558,692) - 448,777 Total capital assets, being depreciated / amortized 397,117,431 491,900 (1,654,510) 4,773,405 400,728,226 Less accumulated depreciation / amortization for:

Buildings (21,843,824) (934,518) - - (22,778,342) M achinery and equipment (10,496,880) (540,936) 220,507 - (10,817,309) Improvements other than buildings (29,460,101) (1,542,486) - - (31,002,587) Vehicles (484,850) (164,516) 67,770 - (581,596) Infrastructure (205,689,429) (6,149,482) 600,000 - (211,238,911) Lease assets:

Equipments (98,977) (23,185) 40,693 - (81,469) Subscription assets (185,931) (133,680) 122,242 - (197,369) Total accumulated depreciation / amortization (268,259,992) (9,488,803) 1,051,212 - (276,697,583) Total capital assets, being
depreciated/amortized, net 128,857,439 (8,996,903) (603,298) 4,773,405 124,030,643 Total business-type activities capital assets, net 156,400,556$ (1,226,855) $ (5,300,880) $ - $ 149,872,821$

Depreciation/amortization expense was charged to various enterprise funds as follows:

Water 4,048,092 $
Sewer 2,753,673
Golf 1,556,903
Storm Drain 1,065,286
Transit 33,363
Cemetery 31,486
Total 9,488,803$

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

99 Note 8 – Long-Term Liabilities

A. Governmental Activities

The following is a summary of changes in long-term debts for the governmental activities for the year ended June 30, 2025:

Balance
July 1, 2024 Balance Due within Due in More
(As restated) Additions Deletions June 30, 2025 One Year Than One Year Governmental Activities:

Direct Borrowings:

Financed purchase - vehicle 948,037 $ - $ (222,325)$ 725,712 $ 273,252 $ 452,460 $ Financed purchase - fire engine 1,125,662 - (231,842) 893,820 241,930 651,890 HUD Section 108 Loan, variable rate, due 2035 536,000 - (50,000) 486,000 50,000 436,000 G3-Sun Ridge- Computer system 684,188 - - 684,188 171,047 513,141 Costco loan reimbursement - 12,758,240 - 12,758,240 - 12,758,240 Lease liabilities 220,353 - (108,580) 111,773 111,773 - Subscription liabilities 1,094,421 1,724,462 (891,059) 1,927,824 651,504 1,276,320 Compensated absences * 12,446,475 936,914 - 13,383,389 7,205,634 6,177,755 Claims payable 10,500,103 2,095,703 (2,185,200) 10,410,606 1,767,559 8,643,047 Total Governmental Activities 27,555,239$ 17,515,319 $ (3,689,006) $ 41,381,552 $ 10,472,699 $ 30,908,853 $ * Presented as net change during the year ended June 30, 2025.

Enterprise Financed Purchase

The City entered into finance purchase agreements (Maste r Agreement) with Enterprise Fleet Management Trust for vehicles. At June 30, 2025, the balance on the fina nced vehicles was $725,712. At the end of the term, the City has the option to purchase the vehicles. The future debt service payments as of June 30, 2025, are as follows:

Year Ending
June 30, Principal Interest Total
2026 273,252$ 59,003 $ 332,255 $
2027 252,628 56,406 309,034
2028 133,383 31,281 164,664
2029 54,845 12,649 67,494
2030 11,604 2,613 14,217
Total 725,712$ 161,952 $ 887,664 $

Financed Purchase – Fire Engine

On September 29, 2023, the City entered into a fina nce purchase agreement (Mas ter Agreement) with JP Morgan Equipment Finance for a fire engine, an Enforc er 1500 GPM Pumper Type 1 Fire Engine. The cost of the financed equipment was $1,237,932. The City ma kes semi-annual payments of $138,916 over a finance period of 66 months, including interest payments at a rate of 5.42 percent. At the end of the term, the equipment becomes the property of the City. The outstanding balance at June 30, 2025, was $893,820. The future debt service payments as of June 30, 2025, are as follows:

Year Ending
June 30, Principal Interest Total
2026 241,930$ 35,903 $ 277,833 $
2027 252,458 25,376 277,834
2028 263,443 14,390 277,833
2029 135,989 2,927 138,916
Total 893,820$ 78,596 $ 972,416 $

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

100
Note 8 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

HUD Section 108 Loan

On August 28, 2015, the City entered into an agreem ent with the U.S. Departme nt of Housing and Urban Development to borrow up to $1,250,000. The City us ed these funds to reimburse Axis Community Health, Inc. for construction costs of their new health clinic. In FY 2015/16, the City requested an advance of $950,000 on this loan. Principal payments are due August 1 of each year. Loan payments are made from the Community Development Block Grant Special Revenue Fund. The outstanding balance at June 30, 2025, was $486,000.

The City's outstanding notes from direct borrowing related to governmental activities of $486,000 are secured with collateral for a second priority lien on the re al property on nine parcels beginning at a point on the northwestern line of Railroad Av enue. Additionally, the direct borrowing related to governmental activities contain a provision that in an event of default, all right, title, and interest of the City in and to the guaranteed loan funds and guaranteed loan funds investment accounts shall immediately vest in the Secretary of Housing and Urban Development for use in maki ng payment on the note. Furthermor e, direct borrowing related to governmental activities contains a subjective provision clause that a llows the lender to accel erate payment of the principal amount.

The future debt service payments as of June 30, 2025, are as follows:

Year Ending
June 30, Principal Interest Total
2026 50,000 $ 14,491 $ 64,491 $
2027 50,000 13,092 63,092
2028 50,000 11,659 61,659
2029 50,000 10,195 60,195
2030 50,000 8,653 58,653
2031-2035 236,000 18,930 254,930
Total 486,000$ 77,020 $ 563,020 $
HUD Section 108 Loan
Direct Borrowing

Sun Ridge Purchase Agreement

On January 5, 2024, the City entered into a financed pur chase agreement with Sun Ridge Systems, Inc. for aided dispatch and records management software. The cost of the financed equipment was $855,235. The City makes annual payments of $188,113 over a finance period of 48 months, including interest payments at a rate of

0.1 percent. At the end of the term, the City will own perpetual licenses to the software. The outstanding balance at June 30, 2025, was $684,188. Principal and interest to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2026 171,047$ 17,066 $ 188,113 $
2027 171,047 17,066 188,113
2028 171,047 17,066 188,113
2029 171,047 17,066 188,113
Total 684,188$ 68,264 $ 752,452 $

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

101
Note 8 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

Costco Loan Reimbursement

In 2018, the City and Costco entered in to an agreement that established Costco’s obligation to design and manage the construction of the Johnson Drive and Stoneridge Drive improvements necessary to support the Johnson Drive Economic Development Zone (JDEDZ). This included paying all costs, with certain costs to be reimbursed by the City in accordance with a Shared Co st Allocation Agreement. The agreement was amended in 2022 to reflect changes to certain terms and conditions. Per the agreement, the City’s share of the cost borrowed from Costco will be repaid using 40% of the annual sales tax revenue from the Costco store, with a 1.5% simple annual interest rate.

The City’s share of the cost is also funded by grant funds and fees, such as transportation development and traffic impact fees. The Costco store was opened in November 2024 while transportation improvement work continued in the JDEDZ area. The City’s share of obligation at June 30, 2025, was $12,758,240. There is no fixed payment schedule.

Lease Liabilities

As of June 30, 2025, the City had one active lease for the use of leased equipm ent. The lease has interest rate of

2.90 percent. As of June 30, 2025, the remaining lease liability is $111,773. Principal and interest to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2026 111,773$ 1,764 $ 113,537 $

Subscription Liabilities

The City has entered into subscriptions for informatio n technology arrangements. The terms of the arrangements ranges from 12 to 36 months with implicit interest rate ranges from 1.85 percent to 3.33 percent. In the year ending June 30, 2025, out of the total of $891,059 recorded as subscription liability reduction, $59,109 was accounted for the subscription contract termination. Principal and interest to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2026 651,504$ 53,434 $ 704,938 $
2027 425,793 36,786 462,579
2028 193,843 25,478 219,321
2029 201,397 19,825 221,222
2030 218,537 13,745 232,282
2031 - 2035 236,750 7,147 243,897 Total 1,927,824$ 156,415 $ 2,084,239 $

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

102
Note 8 – Long-Term Liabilities (Continued)

B. Business-Type Activities

The following is a summary of chan ges in long-term debts for the business-type activities for the year ended June 30, 2025:

Balance Balance Due within Due in M ore
July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Business-type Activities:

Direct Borrowings:

California clean water SRF loan 8,896,132 $ - $ (345,934)$ 8,550,198 $ 349,393 $ 8,200,805 $ Golf course financed purchase agreement 87,460 - (33,497) 53,963 33,889 20,074 Golf course leases 221,925 - (102,077) 119,848 92,057 27,791 Bonds:

Water Revenue Bonds, Series 2024 17,275,000 - (400,000) 16,875,000 270,000 16,605,000 Premium on Water Revenue Bonds, Series 2024 1,959,574 - (6,092) 1,953,482 - 1,953,482 Subscription liabilities 767,498 - (531,770) 235,728 77,253 158,475 Total business-type activities 29,207,589$ - $ (1,419,370)$ 27,788,219 $ 822,592 $ 26,965,627 $

California Clean Water State Revolving Fund (SRF) Loan

In June 2015, the City entered into an agreement with the California State Water Resources Control Board for State Revolving Fund project financing in the amount of $19,875,720 to fund the City of Pleasanton Recycled Water Project. The loan is secured by and payable solely from net revenues from the ownership or operation of the City’s Water Enterprise. The agreement also requires that the City maintain and fund a separate account in an amount equal to one year of debt servi ce. The City satisfied the debt service requirement by maintaining $438,935 in restricted cash balance. The agreement was amended in September 2015 to reduce the project funding to $11,317,177. The project was complete d in October 2016 and the C ity had drawn a total of $11,088,917. The loan bears annual interest of 1.0 per cent, and principal and interest payments are due October 31 of each year. The outstanding balance at June 30, 2025, was $8,550,198.

Annual debt service requirements to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2026 349,393$ 85,502 $ 434,895 $
2027 352,887 82,008 434,895
2028 356,416 78,479 434,895
2029 359,980 74,915 434,895
2030 363,580 71,315 434,895
2031-2035 1,873,168 301,307 2,174,475
2036-2040 1,968,718 205,756 2,174,474
2041-2045 2,069,143 105,332 2,174,475
2046-2047 856,913 12,875 869,788
Total 8,550,198$ 1,017,489 $ 9,567,687 $
Direct Borrowing
California Clean Water SRF Loan

The City's outstanding note from direct borrowings relate d to business-type activities of $8,550,198 is secured by a lien on and pledge of the Water Enterprise Fund, net water revenues and any water reserve fund. In addition, the agreement contains a subjective acceleration clause that allows the lender to accelerate payment of the entire principal.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

103
Note 8 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

Golf Course Finance Purchase Agreement and Leases

On February 10, 2016, the City entered into a fina nce purchase agreement with U.S. Bancorp Government Leasing and Finance, Inc. (U.S. Bancorp) for golf cour se maintenance equipment. The cost of the financed equipment was $321,373. The City makes quarterly paym ents of $16,830 over a finance period of 60 months, including interest payments at a rate of 1.78 percent. At the end of the term, the equipment becomes the property of the City.

On August 8, 2018, the City entered into a finance purchase agreement with U.S. Bancorp for golf course maintenance equipment. This is an addendum to the agreement with U.S. Bancorp dated February 10, 2016. The cost of the financed equipment was $119,597.

The City makes quarterly payments of $6,603 over a finance period of 60 months, including interest payments at a rate of 3.86 percent. At the end of the term, the property becomes the property of the City.

On September 16, 2021, the City entered into a finan ce purchase agreement with U.S. Bancorp for golf course maintenance equipment (Property Schedule No. 3). This is an addendum to the agreement with U.S. Bancorp dated February 10, 2016. The cost of the finan ced equipment was $151,273. The City makes quarterly payments of $7,954 over a finance period of 60 months, incl uding interest payments at a rate of 1.94 percent. At the end of the term, the property becomes the property of the City.

On February 14, 2024, the City entered into a finan ce purchase agreement with Wells Fargo Financial Leasing, Inc. for golf course equipment. The cost of the fina nced equipment was $11,025. The City makes monthly payments in the amount of $266.50 over a finance period of 48 months, including interest payments at a rate of

0.64 percent. At the end of the term, the property becomes the property of the City.

On May 22, 2022, the City entered into an operating l ease agreement with Vantage Tag Systems for golf course equipment. The cost of the leased equipment was $133,295. The City makes monthly payments in the amount of $2,352 over a finance period of 60 months, including interest payments at a rate of 0.24 percent.

On August 11, 2022, the City entered into an operating lease agreement with Wells Fargo Equipment Finance for golf course operating equipment. The cost of the l eased equipment was $279,731. The City makes monthly payments in the amount of $6,600 over a finance period of 45 months, including interest payments at a rate of

0.26 percent.

Annual debt service requirements to maturity are as follows:

Year Ending
June 30, Principal Interest Total Principal Interest Total 2026 33,889 $ 1,162 $ 35,051 $ 92,057 $ 2,170 $ 94,227 $ 2027 18,255 377 18,632 27,791 435 28,226 2028 1,819 47 1,866 - - - Total 53,963 $ 1,586 $ 55,549 $ 119,848 $ 2,605 $ 122,453 $ Direct Borrowing
Golf Course LeasesGolf Course Financed Purchase
Direct Borrowing

The City's outstanding notes from direct borrowings rela ted to business-type activities of $173,811 are secured by a lien on the financed equipment. The agreements contain (1 ) a provision that in an event of default, the timing of repayment of outstanding amounts become immediately due, a nd (2) lessor may require the City to return any or all of the property.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

104
Note 8 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

Water Revenue Bonds, Series 2024

In June 2024, the City issued $17,275,000 of Water Revenue Bonds, to finance certain improvements to the City’s water system. The bonds bear interest at 5.00 percent with interest payments made semi-annually on April 1 and October 1, commencing October 1, 2024. Principal payments are due annually on April 1, commencing April 1, 2025. The Bonds are payable solely from net water revenues. The bonds were priced at a premium, bringing total proceeds to $19,000,000. The outstanding balance at June 30, 2025, was $16,875,000.

The bonds are payable from any source of available water f unds of the City. Failure to pay any installment of the principal of any bonds and any installment of interest of any bonds constitutes an even t of default. The Trustee may, at the written direction of the owners of a major ity in aggregate principal amount of the bonds at the time outstanding, declare the principal and interest accrued to be due and payable immediately.

Annual debt service requirements to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2026 270,000$ 843,750 $ 1,113,750 $
2027 285,000 830,250 1,115,250
2028 300,000 816,000 1,116,000
2029 315,000 801,000 1,116,000
2030 330,000 785,250 1,115,250
2031-2035 1,910,000 3,662,000 5,572,000
2036-2040 2,435,000 3,134,500 5,569,500
2041-2045 3,110,000 2,461,500 5,571,500
2046-2050 3,970,000 1,602,250 5,572,250
2051-2054 3,950,000 505,750 4,455,750
Total 16,875,000$ 15,442,250 $ 32,317,250 $

Subscription Liabilities

The City has entered into subscriptions for informatio n technology arrangements. The terms of the arrangements ranges from 12 to 144 months with imp licit interest rate ranges from 1.85 pe rcent to 3.33 percent. Principal and interest to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2026 77,253 $ 5,775 $ 83,028 $
2027 78,277 3,883 82,160
2028 80,198 1,965 82,163
Total 235,728$ 11,623 $ 247,351 $

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

105
Note 8 – Long-Term Liabilities (Continued)

C. Debt Without City Commitment

Conduit Debt

In September 2005, the City issued Variable Rate Demand Certificat es of Participation (COP) for the Pleasanton Assisted Living Project (The Parkview) fina ncing in the amount of $19,700,000. The COPs have a final maturity date of November 1, 2040. The assisted living fac ility is owned and operated by BLP Partnership, Inc. and payments on the COP debt will be made by the co rporation from revenues derived from the operation of the facility. The City is not obligated in any manner for repayment of the COPs. Accordingly, the COPs are not reported as a liability in the accompanying basic financial statements.

The aggregate amount of conduit debt outstanding as of June 30, 2025, was $14,571,434.

D. Legal Debt Limit

As of June 30, 2025, the City's debt limit based on the legal debt margin (15 percent of 25 percent of the City's assessed valuation subject to taxation) was $1,195,590,416.

E. Arbitrage and Debt Covenant Compliance

The Tax Reform Act of 1986 instituted certain arbitrage r estrictions with respect to the issuance of tax-exempt bonds after August 31, 1986. Arbitrage re gulations pertain to the investment of tax-exempt bond proceeds at an interest yield greater than the interest yield paid to bo ndholders. Generally, all interest paid to bondholders can be retroactively rendered taxable if applicable rebates are not reported and paid to the U.S. Treasury at least every five years. The City has evaluated each bond issued subject to the arbitrage rebate requirements and has determined that no arbitrage liability exists at June 30, 2025.

As of June 30, 2025, the City was in compliance with all bond covenants as they pertain to reserve and sinking fund requirements.

Note 9 – Risk Management

The City is exposed to various risks of loss related to third party personal injuries and/or damage to property, employment practices liability, workers' compensation claims, and damage to or destruction of City property and vehicles. The City has a self-retained limit for these various risks as shown below in the table. Over the City's self- retained limits, the City has coverage through a number of risk sharing publ ic entity pools. For example, general liability claims over $500,000 are covered through the Bay Cities Joint Powers Insurance Authority (BCJPIA) and the California Affiliated Risk Management Authority (CAR MA). Similarly, employment practices liability claims between $75,000 and $1,000,000 are covered through the Employment Risk Management Authority (ERMA) and claims between $1,000,000 a nd $3,000,000 through Beazley Insurance, a Lloyd Company. In the opinion of City management, premiums paid to BCJPIA (which in turn pays premiums to others including CARMA and ERMA, depending on the risk involved) represent the best available es timate of the ultimate cost of its participation in these various risk sharing pools.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

106
Note 9 – Risk Management (Continued)

The City's self-insured retained limits and maximum coverage for its significant risk sharing public entity pools are as follows:

Self-Insured
Coverage Retained Limit Maximum Coverage Maximum Coverage Through General Liability 500,000 $ 34,500,000$ BCJPIA/CARMA Employment Practices Liability 75,000 4,000,000 BCJPIA/ERMA/Beazley Insurance, a Lloyd Company Workers' Compensation N/A Up to statutory limit BCJPIA/LAWCX All Risk Property 10,000 1,000,000,000 BCJPIA/APIP Auto Physical Damage Various Up to replacement cost BCJPIA/APIP Cyber Liability 100,000 5,000,000 BCJPIA/APIP Commercial Crime Bond 10,000 3,000,000 BCJPIA/FDCM/GAIC

Within the past three fiscal years, all claims that have settled have been within the maximum coverage.

The City accounts for and finances its uninsured risks of loss and liability insurance premiums in a Self- Insurance Retention Internal Service Fund, which also includes its Workers’ Compensation Program.

The Workers’ Compensation Program makes payments needed to pay prior and current year claims and to establish a reserve for future losses. The net position of th e Workers’ Compensation Program at June 30, 2025, had a negative balance of $1,065,946 reflecting a decr ease in claims liability fro m the prior year. The claims liability of
$9,405,000 is reported as claims payabl e as of June 30, 2025. Payments in fu ture years from funds of the City participating in the Workers’ Compensation Program are anti cipated to recover the full cost of the claims liability.

In the Self Insurance Retention Internal Service Fund, at June 30, 2025, reserves of $2,572,932 are reported in net
position and claims liabilities of $1,005,606 are reported as claims payable.

The Workers' Compensation Program clai ms liabilities and the general and em ployment practices claims liabilities in the Self Insurance Retention Fund are based on the re sults of actuarial studies and include IBNR claims amounts. Claims liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amount of payouts and other economic and social factors.

The aggregate change in the balance of claims liabilities for the internal service funds were as follows:

2025 2024
Unpaid claims, beginning of year 10,500,103$ 10,023,095 $ Incurred claims and changes in estimates 2,095,703 2,703,850 Claim payments (2,185,200) (2,226,842)
Unpaid claims, end of year 10,410,606 $ 10,500,103 $ Current portion 1,767,559 $ 1,737,267 $
June 30,

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

107
Note 10 – Membership in Insurance Pool, Investment in Joint Ventures, and Jointly Governed Organization

The City participates in nine joint venture activities th rough formally organized and separate entities established under the Joint Exercise of Powers Act of the State of Calif ornia. As separate legal entities, these entities exercise full powers and authorities within the scope of the related Join t Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued.

A. Bay Cities Joint Powers Insurance Authority

The City is a member of Bay Cities Joint Powers Insu rance Authority (“BCJPIA”). BCJPIA was created in 1986 to develop effective risk management programs to re duce the amount and frequency of losses, to provide for pooled self-insurance among member agencies and to jo intly purchase and provide administrative and other services including, but not limited to claims adjusting, data processing, risk management, loss prevention, accounting services, actuarial services, and legal services in connection with the program. BCJPIA consists of fifteen cities, four towns, one fire authority and one police authority all located within the metropolitan Bay Area.

The City’s proportionate share of BCJPIA’s net position depends on a number of factors as there are inflows into the City’s account with BCJPIA based on premium de posits and interest earned and there are outflows for expenditures for matters such as administration, claims handling, incurred losses and a reserve for claims incurred but not yet reported (IBNR). Accordingly, it is difficult to ascertain what the City’s proportionate share is at any given time.

Nevertheless, if there is excess equity in the City’s account for a program year that is five years old and for which there are no longer any outstanding claims for that program year, the BCJPIA Board of Directors may declare a dividend and distribute such dividend to the member en tities based on what is in each member’s equity account.

Financial statements for BCJPIA may be obtained from BCJPIA 1750 Creekside Oaks Drive, Suite 200, Sacramento, California 95833.

B. Local Agency Workers' Compensation Excess Joint Powers Authority

In 2010, the City joined the Local Agency Worker s’ Compensation Excess Joint Powers Authority (“LAWCX”). LAWCX was formed on July 1, 1992, as a state-wide joint powers authority to self-insure and

pool excess workers’ compensation lo sses. LAWCX was established for Cali fornia self-ins ured workers’ compensation joint powers authorities , individual agencies and special districts. LAWCX is governed by a Board of Directors with a representative from each me mber entity. Financial statements for LAWCX may be obtained from LAWCX, 1750 Creekside Oaks Drive, Suite 200, Sacramento, California 95833.

C. Livermore-Amador Valley Waste Management Agency

The Livermore-Amador Valley Wast e Management Agency (“LAVWMA”) was formed in 1974. LAVWMA operates the export pipeline connecting with the East Ba y Discharge Authority’s systems and discharges treated wastewater into San Francisco Bay. The current members of the Agency are Dublin San Ramon Services District (DSRSD), the City of Livermore, and the City of Pleasanton. Sewer revenue bonds issued by LAVWMA are being repaid with user charges assessed to member agencies.

The City accounts for its investment in LAVWMA by the equity method in the Sewer Enterprise Fund. The City records its share of earnings and losses in the Proprietar y Funds Statement of Revenues, Expenses, and Changes in Net Position as "Equity interest in gain from joint vent ures,” and the carrying value of the City's investment in LAVWMA is recorded in the Proprietary Funds Statement of Net Position as "Net investment in joint ventures." The City’s equity interest in LAVWMA was $20,75 4,345 as of June 30, 2025. Financial statements for LAVWMA may be obtained from DSRSD, 7051 Dublin Boulevard, Dublin, California 94568.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

108
Note 10 – Membership in Insurance Pool, Investment in Joint Ventures, and Jointly Governed Organization (Continued)

D. Livermore-Amador Valley Transit Authority

The Livermore-Amador Valley Transit Authority (“LAVTA” ) was formed in 1985 by a joint exercise of powers agreement between the County of Alameda and the c ities of Dublin, Livermore and Pleasanton to provide transportation services within the cities’ limits and por tions of the unincorporated County. LAVTA operates under the name “Wheels.” Financial statements for LAVTA may be obtai ned from LAVTA, 1362 Rutan Court, Suite 100, Livermore, California 94551.

E. Tri-Valley Transportation Council

The Tri-Valley Transportation Council (“TVTC”) was form ed in 1991 by a joint exercise of powers agreement between the cities of Dublin, Livermore, Pleasanton and San Ramon, the Town of Danville and the Counties of Alameda and Contra Costa for the purposes of prepari ng a transportation plan a nd providing transportation facilities within the Tri-Valley area. Financial statements for TVTC may be obtained from the Town of Danville, Attn: TVTC Administrator, 500 La Gonda Way, Danville, CA 94526.

F. Livermore-Pleasanton Fire Department

On December 3, 1996, the cities of Pleasanton and Li vermore signed a Joint Powers Agreement (JPA) to form a joint fire department, Li vermore-Pleasanton Fire Department (LPFD), covering both cities. On February 12, 2018, the cities signed an amended and restated JPA that, among other things, reinforced the joint
obligation to fund retirement benefits including unfunded liabilities. Fire protection services are provided by the City of Pleasanton employees under the joint power ag reement. The LPFD prepares its budget, including contributions required from each City, to fund operating and capital needs for the year. In January 2013, the City of Livermore began functioning as Treasurer for LPFD . The City of Pleasanton’s share of LPFD’s costs is approximately 50 percent. The City accounts for its investment in LPFD by the equity method in the Governmental Activities in the Stat ement of Net Position. During the ye ar ended June 30, 2025, the City contributed $26,966,796 to LPFD representing its share of co sts. The City’s equity/(deficit) interest in LPFD was ($41,351,422) as of June 30, 2024 based on the most recent audited financial information of the LPFD.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

109
Note 10 – Membership in Insurance Pool, Investment in Joint Ventures, and Jointly Governed Organization (Continued)

F. Livermore-Pleasanton Fire Department (Continued)

The City’s portion of most recent audited financia l information of the LPFD for the fiscal year ended June 30, 2024, is summarized as follows:

Assets:

Current 5,883,928 $
Noncurrent 541,446
Total assets 6,425,374
Deferred outflows of resources:

Related to pensions 11,723,686
Related to OPEB 2,445,500
Total deferred outflows of resources 14,169,186
L iabilities:

Current 2,726,022
Noncurrent
Other long-term liabilities 4,711,520
Net pension liability 46,512,254
Net OPEB liability 4,235,500
Total liabilities 58,185,296
Deferred inflows of resources:

Related to pensions 655,686
Related to OPEB 3,105,000
Total deferred inflows of resources 3,760,686
Net Position: (41,351,422)
Revenues and Expenses:

Revenues 26,068,183
Expenses (26,442,858)
Change in net position (374,675)
Net Position:

Beginning of the year (40,976,747)
End of the year (41,351,422) $

The City records its share of earnings and losses in the Livermore-Pleasanton Fire Department Custodial Fund and the carrying value of the City's investment in LPFD is recorded in the Statement of Net Position as "Net Deficit in LPFD". The information related to pension and OPEB are of measurement date June 30, 2024.

Financial statements for LPFD may be obtained from th e City of Livermore at 1052 South Livermore Avenue, Livermore, California 94550.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

110
Note 10 – Membership in Insurance Pool, Investment in Joint Ventures, and Jointly Governed Organization (Continued)

G. East Bay Regional Communications System Authority

In 2007, the City joined the East Bay Regional Co mmunications System Authority (“EBRCSA”). The EBRCSA was formed to govern the regional communications system servicing Alameda and Contra Costa Counties, as well as many cities and special districts within the East Bay. Currently, there are forty- three agencies consisting of both counties, thirty cities, six special districts, thre e colleges, Dublin-San Ramon Services District and the California Department of Transportation, serving a population of over 2.5 million people. The EBRCSA is governed by a twenty-three member board of directors selected from participa ting counties, cities and districts.

Financial statements for EBRCSA may be obtained fro m EBRCSA, 4985 Broder Boulevard, Dublin, California 94568.

H. Alameda County Transportation Commission

The Alameda County Transportation Commission (“ACTC ”) was formed in 2010 as a result of the merger between the Alameda County Congestion Manageme nt Agency (“ACCMA”) and the Alameda County Transportation Improvement Agency (ACTIA) to more cost effectively plan and deliver transportation programs in Alameda County. Members include the fourteen c ities in Alameda County, the five County Board of Supervisors, the Bay Area Rapid Transit District and AC Transit. Financial statements for Alameda CTC may be obtained from ACTC, 1111 Broadway, Suite 800, Oakland, California 94607.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

111
Note 11 – Fund Balances

As of June 30, 2025, fund balances are composed of the following:

Nonmajor
General Lower Income Miscellaneous Governmental
Fund Housing Fund Grants Fund Funds Total
Nonspendable:

Advances to other funds 500,000$ - $ - $ -$ 500,000$ Subtotal 500,000 - - - 500,000 Restricted:

Accessibility programs - - - 167,898 167,898 Assessment District Construction - - - 304,111 304,111 Asset forfeiture - - - 33,300 33,300 Budgeted Developer Projects - - - 8,293,054 8,293,054 Community Access Television - - - 1,767,446 1,767,446 Community Development Block Grants - - - 525,813 525,813 Geological Hazard Assessment Districts - - - 1,252,750 1,252,750 Housing - 18,704,511 - 989,314 19,693,825 Johnson Drive Economic Development Zone - - - 1,034,192 1,034,192 Landscape and Lighting Districts - - - 443,404 443,404 Landscape Maintenance NPID - - - 1,138,725 1,138,725 Library Trust - - - 59,325 59,325 Marilyn Kane Trail Reserve - - - 121,161 121,161 Miscellaneous Donations/Developer Contributions - - - 2,109,098 2,109,098 Opioid Settlements - - - 464,986 464,986 Park Development - - - 9,859,946 9,859,946 PARS Section 115 Pension Trust 20,866,377 - - - 20,866,377 Public Facilities Capital Improvements - - - 3,361,564 3,361,564 Public Safety - - - 143,629 143,629 Resource Management - - - 344,184 344,184 St reet M aintenance - - - 16,233,176 16,233,176 Traffic Impact - - - 7,873,140 7,873,140 Tri-Valley Transportation - - - 2,679,683 2,679,683 PFAS Settlement - - - 580,082 580,082 Various Specific Plans - - - 887,027 887,027 Subtotal 20,866,377 18,704,511 - 60,667,008 100,237,896 Committed:

Business Support Program - - - 2,165,968 2,165,968 COVID Response and Recovery Program Reserve 289,150 - - - 289,150 Downtown & North Pleasanton - - - 3,897,086 3,897,086 Strategic Plan Implementation Reserve 379,428 - - - 379,428 Emergency Reserve 500,000 - - - 500,000 Capital Reserve 6,620,550 - - - 6,620,550 Subtotal 7,789,128 - - 6,063,054 13,852,182 Assigned:

Capital Projects - - - 30,486,219 30,486,219 Other Purposes - - - 778,074 778,074 Subtotal - - - 31,264,293 31,264,293 Unassigned 37,702,475 - (230,358) - 37,472,117 Total 66,857,980 $ 18,704,511 $ (230,358) $ 97,994,355 $ 183,326,488 $ Special Revenue Funds

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

112
Note 12 – Defined Benefit Pension Plan

The City participates in the following Pension Plans ad ministered by the California Public Employees Retirement System (CalPERS):

1. Agent Multiple-Employer Defined Benefit Pension Plans (Agent Multiple) for its Miscellaneous and Safety Fire employees.

An agent multiple-employer plan is one in which the assets of the participati ng government employers are pooled for investment purposes but separate accounts are maintained for each individual employer.

2. Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Cost Sharing) for its Safety Police employees.

A cost-sharing multiple-employer defined benefit pension plan is a plan in which the pension obligations to the employees of more than one employer are pooled and pens ion plan assets can be used to pay benefits of the employees of any employer that provides pensions through the plan.

A. General Information about the Pension Plans and Summary of Balances by Plan

Plan Descriptions - All qualified permanent employees are eligible to participate in the City's separate Safety (Police) cost-sharing plan, Safety (Fire) agent multiple -employer defined benefit pension plan, and Miscellaneous (all other) agent multiple-employer defined benefit pension plan that are administered by CalPERS.

The Miscellaneous and Safety Fire Pl ans are agent multiple-employer define d benefit pension plans which act as a common investment and administrative agent for its pa rticipating member employers. Benefit provisions under the Plans are established by State statute and City reso lution. CalPERS issues publicly available reports that include a full description of the pension plans rega rding benefit provisions, assumptions, and membership information that can be found on the CalPERS website.

As discussed in Note 10F, the City is a member of a Joint Powers Agreement (JPA), along with the City of Livermore, of the Livermore-Pleasanton Fire Department (LPFD). The employees of the LPFD are the City of Pleasanton's employees, however, as agreed to in the JPA, the City shares the Sa fety Fire Plan affiliated with the LPFD with the City of Livermore with a share of 50 pe rcent. Based on this arrangement with the City of Livermore, the City of Pleasanton only records its 50 percent share of the collective net pension liability and related deferred inflows/outflows, which is included in its Net Investment (Deficit) in LPFD on the Governmental Activities Statement of Net Position, using the equity me thod of accounting. Information specific to the City's share of net pension liability and deferred outflows/inflows are included in Note 12D.

The City's Safety Police Plan is a cost-sharing multiple -employer defined benefit pe nsion plan administered by CalPERS since the plan has less than 100 active members, commonly referre d to as risk pool. The City has two retirement benefit tiers in the Safety Police Plan and a PEPRA classification. Tier 1 is for employees hired prior to January 1, 2013. Tier 2 is for employees hired on or after January 1, 2013. PEPRA is for employees new to CalPERS hired on or after January 1, 2013.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

113
Note 12 – Defined Benefit Pension Plan (Continued)

A. General Information about the Pension Plans and Summary of Balances by Plan (Continued)

Below is a summary of the deferred outflows of res ources, net pension liabilities and deferred inflows of resources, by plan:

Deferred outflows Net Pension Deferred inflows
of Resources Liability of Resources
Agent Plans:

Miscellaneous 24,334,105 $ 125,251,971 $ (112,216) $ Safety (Fire) 9,683,070 45,756,879 (295,085) Cost Sharing Plan:

Safety (Police) 16,006,457 51,656,864 (1,689,826) Total 50,023,632 $ 222,665,714 $ (2,097,127) $

Each plan is discussed in detail below.

Funding Policy – In March 2018, the City established a Section 115 Pension Trust Fund with Public Agency Retirement Services (PARS). PARS, the trust administ rator, partners with U.S. Bank and PFM Asset Management (formerly Highmark Capita l Management) to provide trustee and investment advisory services, respectively. This trust was established to set aside moneys to meet the City's future pension contributions or unfunded liabilities. The fair value on the account at June 30, 2025, was $56.3 million. Financial statements of PARS may be obtained from PARS, 4350 Von Karman Avenue, Suite 100, Newport Beach, California 92660.

B. Miscellaneous Plan

Benefits Provided – CalPERS provides retirement and disability benef its, annual cost of living adjustments and death benefits to plan members, who must be public employees, and their beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment, age and the average of the final one year of compensation for Tier 1 members and th e average of the final three years' of compensation for PEPRA members.

Members with at least five years of total service are eligib le to retire at age 50 with statutorily reduced benefits.

All members are eligible for non-duty disability benefits af ter 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1959 Survivor Benefit, or the Optional Settlement 2W Death Benefit.

The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

The plan's provisions and benefits in effect at June 30, 2025, are summarized as follows:

Tier 1 PEPRA
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.7% @ 55 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life
Retirement age 50-55 52-67
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.0% to 2.5% Required employee contribution rates 8.00% 8.00%
Required employer contribution rates 12.79% 12.79%
Miscellaneous

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

114
Note 12 – Defined Benefit Pension Plan (Continued)

B. Miscellaneous Plan (Continued)

Employees Covered – At June 30, 2023, valuation date, the fo llowing employees were covered by the benefit terms of the Miscellaneous Plan:

Miscellaneous
Active employees 296
Transferred employees 117
Separated employees 166
Retired employees and beneficiaries 484
Total 1063

Contributions – Section 20814(c) of the California Public Em ployees' Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on July 1 following notice of change in the ra te. Funding contributions for the plan are determined annually on an actuarial basis as of June 30 by CalPERS. Th e actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by em ployees during the year, with an additional amount to finance any unfunded accrued liability. The City is require d to contribute the difference between the actuarially determined rate and the contribution rates of employees.

Net Pension Liability – The City's net pension liability for the Mi scellaneous Plan is measured as the total pension liability, less the pension plan's fiduciary net position. The net pensi on liability of the plan is measured as of June 30, 2024, using an annual ac tuarial valuation as of June 30, 202 3, rolled forward to June 30, 2024, using standard update procedures.

Changes in the Net Pension Liability – The changes in the Net Pension Liability for the Miscellaneous Plan are as follows:

Total Pension Plan Fiduciary Net Net Pension
L iability Position L iability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2023 (Valuation Date) 359,854,052$ 233,366,025 $ 126,488,027 $ Changes Recognized for the M easurement Period:

Service Cost 6,674,719 - 6,674,719 Interest on the total pension liability 24, 722,666 - 24,722,666 Changes of benefit terms - - - Changes in assumptions - - - Differences between actual and expected experience 5,223,304 - 5,223,304 Plan to plan resource movement - - - Contribution - employer - 12,797,261 (12,797,261) Contribution - employee - 2,770,936 (2,770,936) Net investment income - 22,478,439 (22,478,439) Benefit payments, including refunds of employee co (20,230,423) (20,230,423) - Administrative expense - (189,891) 189,891 Other Miscellaneous Income/(Expense) - - - Net Changes during July 1, 2023 to June 30, 2024 16,390,266 17,626,322 (1,236,056) Balance at June 30, 2024 (Measurement Date) 376,244,318$ 250,992,347 $ 125,251,971 $ Increase (Decrease)
Miscellaneous Plan

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

115
Note 12 – Defined Benefit Pension Plan (Continued)

B. Miscellaneous Plan (Continued)

Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for the Miscellaneous Plan, calculated using the discount rate for the Plan, as well as what the City's net pension liability would be if it were cal culated using a discount rate that is 1- percentage point lower or 1- percentage point higher than the current rate:

Discount Rate Current Discount Discount Rate
- 1% (5.90%) Rate (6.90%) + 1% (7.90%)
Miscellaneous Plan 173,202,595$ 125,251,971 $ 85,490,735 $ Plan's Net Pension L iability/(Asset)

Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension

For the year ended June 30, 2025, the City recognized pension expense of $20,21 9,810 for the Miscellaneous Plan. At June 30, 2025, the City re ported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Contribution made after the measurement date 14,322,873$ - $ Changes of assumptions 659,756 -
Difference between expected and actual experience 5,990,184 (112,216) Net difference between projected and actual earnings
on pension plan investments 3,361,292 -
Total 24,334,105$ (112,216) $

The $14,322,873 reported as deferred outflows of resour ces related to contributions subsequent to the measurement date for the Miscellaneous Plan will be rec ognized as a reduction of the net pension liability in the year ending June 30, 2026. Other amounts reported as de ferred outflows of resources and deferred inflows of resources related to pensions will be recognized as future pension expense as follows:

Measurement Deferred Outflows/
Period (Inflows)
Ending June 30 of Resources
2025 4,273,782$
2026 7,994,920
2027 (1,059,292)
2028 (1,310,394)
2029 -
Thereafter -
9,899,016$

The expected average remaining service lifetime (“EAR SL”) for the Miscellaneous Plan for the measurement period June 30, 2024, is 3.0 years, which was obtained by dividing the total service years of 3,199 (the sum of remaining service lifetimes of the active employees) by 1,062 (the total number of participants: active, inactive, and retired).

Actuarial assumptions and information regarding the discount rate are discussed in Note 12E.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

116
Note 12 – Defined Benefit Pension Plan (Continued)

C. Safety (Police) Plan

Benefits Provided – CalPERS provides retirement and disability benef its, annual cost of living adjustments and death benefits to plan members, who must be public em ployees, and their beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment, age and the average of the final one year of compensation for Tier 1 members and the average of the final three years' of compensation for Tier 2 and PEPRA members. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits.

All members are eligible for non-duty disability benefits after ten years of service. The death benefit is one of the following: the Basic Death Benefit, the 1959 Survivor Bene fit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

The plan's provisions and benefits in effect at June 30, 2025, are summarized as follows:

Tier 1 Tier 2 PEPRA
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50 50-55 50-57
Monthly benefits, as a % of eligible compensation 3%, 50+ yrs 2.4%-3%, 50 yrs - 55+ yrs, respectively
2%-2.7%, 50 yrs -
57+ yrs, respectively
Required employee contribution rates 9.00% 9.00% 13.75% Required employer contribution rates 27.32% 23.00% 13.76% Safety (Police) Plan

Beginning in FY 2016/17, CalPERS collects employer contribu tions for the cost-sharing plan as a percentage of payroll for the normal cost portion as noted in the ra tes above and as a dollar amount for contributions toward the unfunded liability and side fund. The City's required contribution for the unfunded liability and side fund was $6,479,352 in FY 2024/25.

Employees Covered – At June 30, 2023, valuation date, the fo llowing employees were covered by the benefit terms of the Miscellaneous Plan:

Safety (Police) Safety (Police) Safety (Police)
Classic Tier 2 PEPRA
Active employees 34 10 33
Transferred employees 10 4 5
Separated employees 9 5 10
Retired employees and beneficiaries 137 4 0
Total 190 23 48

Contributions – Section 20814(c) of the California Public Empl oyees' Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on July 1 following notice of change in the rate. Funding contributions for the plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuaria lly determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contri bute the difference between the actuarially determined rate and the contribution rates of employees.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

117
Note 12 – Defined Benefit Pension Plan (Continued)

C. Safety (Police) Plan (Continued)

For the year ended June 30, 2025, the contributions rec ognized as part of pension expense for the plan were as follows:

Safety (Police)
Contributions - employer 6,479,352 $

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - As of June 30, 2025, the City reported net pension liabilities for its proportionate shares of the net pension liability of the plan as follows:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) ( c) = (a) - (b)
Balance at 6/30/23 (Valuation Date) 202,386,166$ 149,986,901 $ 52,399,265 $ Balance at 6/30/24 (Measurement Date) 210,287,747 158,630,883 51,656,864 Net Changes during 2023-2024 7,901,581 $ 8,643,982 $ (742,401) $ Safety (Police)

The City's net pension liability for the plan is measured as the proportionate share of net pension liability. The net pension liability of the plan is measured as of June 30, 2024, and the total pension liability for the plan used to calculate the net pension liability was determined by an act uarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating em ployers, actuarially determined. The C ity's proportionate share of the net pension liability for the plan as of June 30, 2023, and 2024 was as follows:

Safety (Police)
Proportion - June 30, 2023 0.42002%
Proportion - June 30, 2024 0.42595%
Change 0.00593%

Sensitivity of the Proportionate Share of the Net Pens ion Liability to Changes in the Discount Rate – The following presents the City's proportionate share of the net pension liability for the plan, calculated using the discount rate for the plan, as well as what the City's propor tionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percenta ge point lower or 1-percentage point higher than the current rate:

Discount Rate Current Discount Discount Rate
- 1% (5.90%) Rate (6.90%) + 1% (7.90%)
Safety (Police) Plan 80,381,969$ 51,656,864 $ 28,163,767 $ Plan's Net Pension L iability/(Asset)

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

118
Note 12 – Defined Benefit Pension Plan (Continued)

C. Safety (Police) Plan (Continued)

For the year ended June 30, 2025, the City recognized pe nsion expense of $10,874,893 for the Safety (Police) Plan. At June 30, 2025, the City re ported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Contribution made after the measurement date 6,479,352$ - $ Changes of assumptions 1,272,720 -
Difference between expected and actual experience 4,215,660 (137,070) Net difference between projected and actual earnings
on pension plan investments 2,496,858 -
Differences between actual contributions and the
proportionate share of contributions 1,541,867 - Adjustments due to difference in proportions - (1,552,756) Total 16,006,457$ (1,689,826) $

The $6,479,352 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the collective net pension liability in the y ear ending June 30, 2026.

Other amounts reported as deferred outflows of resources a nd deferred inflows of resour ces related to pensions will be recognized as future pension expense as follows:

Measurement Deferred Outflows/
Period (Inflows)
Ending June 30 of Resources
2025 3,188,494$
2026 5,592,933
2027 (89,837)
2028 (854,311)
2029 -
Thereafter -
7,837,279$

The expected average remaining service lifetime (“EA RSL”) for the Cost Sharing Safety Plan for the measurement period June 30, 2024, is 3.8 years, whic h was obtained by dividing the total service years of 630,177 (the sum of remaining service lifetimes of th e active employees) by 166,163 (the total number of participants: active, inactive, and retired).

Actuarial assumptions and information regarding the discount rate are discussed in Note 12E.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

119
Note 12 – Defined Benefit Pension Plan (Continued)

D. LPFD Safety (Fire) Plan

As discussed in Notes 10F and 12A, the employees of the LPFD are the City of Pleasanton's employees, however, as agreed to in the JPA, the City shar es equally the Safety Fire Plan affilia ted with the LPFD with the City of Livermore, therefore the following tables show only the City of Pleasanton's 50 percent share. As there is a special funding arrangement with the City of Livermore, the City of Pleasanton only records its 50 percent share of the net pension liability and related deferred inflows/outflows, which is included in its Net Investment (Deficit) in LPFD on the Governmental Activities Statement of Net Position, using the equity method of accounting.

Benefits Provided – CalPERS provides retirement and disability benef its, annual cost of living adjustments and death benefits to plan members, who must be public em ployees, and their beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment, age and the average of the final one year of compensation for Tier 1 and Tier 2 members and the averag e of the final three years' of compensation for Tier 3 and PEPRA members. Members with five years of total servi ce are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after ten years of service. The death benefit is one of the following: the Basic Death Benefit, the 1959 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

Tier 1 Tier 2 PEPRA
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50 50-55 50-57
Monthly benefits, as a % of eligible compensation 3%, 50+ yrs 2.4%-3%, 50 yrs - 55+ yrs, respectively
2%-2.7%, 50 yrs -
57+ yrs, respectively
Required employee contribution rates 9.00% 9.00% 12.00% Required employer contribution rates 19.14% 19.14% 19.14% Safety (Fire) Plan

Employees Covered – At June 30, 2023, valuation date, the fo llowing employees were covered by the benefit terms of the Safety (Fire) Plan:

Safety (Fire)
Active employees 115
Transferred employees 14
Separated employees 24
Retired employees and beneficiaries 169
Total 322

Contributions – Section 20814(c) of the California Public Empl oyees' Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on July 1 following notice of change in the rate. Funding co ntributions for the plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contri bute the difference between the actuarially determined rate and the contribution rates of employees.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

120
Note 12 – Defined Benefit Pension Plan (Continued)

D. LPFD Safety (Fire) Plan (Continued)

Net Pension Liability – The City's net pension liability for the Safety (Fire) Plan is measured as the total pension liability, less the pension plan's fiducia ry net position. The net pension liab ility of each plan is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures.

Changes in the Net Pension Liability – The changes in the Net Pension Liabilit y for the Safety (Fire) Plan (City of Pleasanton only) is as follows:

Total Pension Plan Fiduciary Net Net Pension
L iability Position L iability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2023 (Valuation Date) 136,764,609$ 90,252,355 $ 46,512,254 $ Changes Recognized for the Measurement Period:

Service Cost 2,641,495 - 2,641,495 Interest on the total pension liability 9,389,178 - 9,389,178 Changes of benefit terms - - - Changes of assumptions - - - Difference between expected and actual experience 1,786,139 - 1,786,139 Plan to plan resource movement - - - Contributions from the employer - 4,776,132 (4,776,132) Contributions from employees - 1,162,339 (1,162,339) Net investment income - 8,707,155 (8,707,155) Benefit payments, including refunds of employee -
contributions (7,592,906) (7,592,906) - Administrative expenses - (73,439) 73,439 Other Miscellaneous Income/(Expense) - - - Net Changes during July 1, 2023 to June 30, 2024 6,223,906 6,979,281 (755,375) Balance at June 30, 2024 (Measurement Date) 142,988,515$ 97,231,636 $ 45,756,879 $ Safety (Fire) Plan
Increase (Decrease)

Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City of Pleasanton for the Safety (Fire) Plan, calculated using the discount rate for the Plans, as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower or 1-percentage point higher than the current rate:

Discount Rate Current Discount Discount Rate
- 1% (5.90%) Rate (6.90%) + 1% (7.90%)
Safety (Fire) Plan 63,255,349$ 45,756,879 $ 31,145,808 $ Plan's Net Pension Liability/(Asset)

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

121
Note 12 – Defined Benefit Pension Plan (Continued)

D. LPFD Safety (Fire) Plan (Continued)

Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension

For the year ended June 30, 2025, the City recognized pe nsion expense of $6,172,853 for the Safety (Fire) Plan.

At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Contribution made after the measurement date 5,238,330$ - $ Changes of assumptions 1,060,772 -
Difference between expected and actual experience 2,063,116 (295,085) Net difference between projected and actual earnings
on pension plan investments 1,320,852 -
Total 9,683,070$ (295,085) $

The $5,238,330 reported as deferred outflows of resources related to contributions subsequent to the measurement date for the Safety (Fire) Plan (City of Pleasanton onl y) will be recognized as a reduction of the net pension liability in the year ending June 30, 2026. Other amounts reported as deferr ed outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Measurement Deferred Outflows/
Period (Inflows)
Ending June 30 of Resources
2025 1,173,814$
2026 3,155,386
2027 166,238
2028 (345,783)
2029 -
Thereafter -
4,149,655$

The expected average remaining service lifetime (“EARSL” ) for the Safety Plan for the measurement period June 30, 2024 is 4.4 years, which was obtained by dividi ng the total service years of 1,407 (the sum of remaining service lifetimes of the active employees) by 322 (the total number of participants: active, inactive, and retired).

Actuarial assumptions and information regarding the discount rate are discussed in Note 12E.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

122
Note 12 – Defined Benefit Pension Plan (Continued)

E. Information Common to the Miscellaneous and Safety Plans

Actuarial Assumptions – The total pension liabilities in the June 30, 20 24, actuarial valuations were determined using the following actuarial assumptions for the Miscellaneous and Safety Plans:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Morta l i ty Ra te Ta bl e
1 Post Retirement Benefit Increase
Entry Ag e Actuarial Cost Method

6.90%

2.30%
Varies by Entry Age and Service
Derived using CalPERS’ Membership Data for all Funds.

The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter.
1The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.

Long-term Expected Rate of Return

The long-term expected rate of return on pension pl an investments was determin ed using a building -block method in which expected future real rates of return (e xpected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

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

Assumed
Asset Class1 Asset Allocation Real Return 1,2
Global Equity - Cap-weighed 30.00% 4.54%
Global Equity - Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.00%
1 An expected inflation of 2.30% used for this
2 Figures are based on the 2021 Asset Liability Management Study.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

123
Note 12 – Defined Benefit Pension Plan (Continued)

E. Information Common to the Miscellaneous and Safety Plans (Continued)

Discount Rate

The discount rate used to measure the total pension lia bility was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers w ill be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Change of Assumptions

There were no changes of assumptions in 2024.

Pension Plan Fiduciary Net Position

Detailed information about the pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.

Note 13 – Post-Employment Health Care Benefits

A. Plan Description and Benefits Provided

Through its post-employment health care plan, the City provides post-retirement health care benefits, in accordance with certain employee agreem ents, to all employees who retire directly from the City. The plan benefit provisions and obligations to contribute are estab lished, or may be amended, by City Council action. The effective date and benefit varies based upon the employee's classification a nd related memorandum of understanding (MOU).

PCEA/AFSCME Local 955 (Pleasanton City Employees' Association) MOU

 For PCEA employees who service retired before 7/1/2012, the City shall pay 4 percent for each year of service of the City's contribution toward the monthly premium for employee and one dependent at the rate of the lowest cost HMO early retiree plan. Retirees will retire with the same retiree benefit co-pay and plan design as provided to retirees on 6/30/2011.

 For PCEA employees who were hired prior to 6/1/2011 and retire after 7/1/2012, the City shall pay 4 percent for each year of service of the City's cont ribution toward the monthly premium for employee and one dependent. The City's contribution for retiree me dical is established as the same dollar contribution paid for active employees at the employee plus one rate of the lowest cost HMO early retiree plan.

 If hired after 6/1/2011, the City shall pay for each year of service equivalent to 4 percent of the City's contribution toward the monthly premium for single coverage. The City's contribution for the retiree medical is established as the same dollar contribution paid for active employees at the single rate of the lowest cost HMO early retiree plan. Retiree hea lth benefits will cease once the employee becomes Medicare eligible.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

124
Note 13 – Post-Employment Health Care Benefits (Continued)

A. Plan Description and Benefits Provided (Continued)

POA (Police Officer's Association) MOU

 For POA employees who retired prior to 7/1/2009, the City shall pay for each year of service with the City of Pleasanton 4 percent of the monthly premiu m for employee and one de pendent of the City's current Kaiser S-1 Health Plan.

 For POA employees who were hired prior to 1/1/2009 and retire on or after 7/1/2009, the City shall pay for each year of service with the City of Pleasanton 4 percent of the monthly premium for employee and one dependent of the City's lowest cost HMO hea lth plan. Effective July 1st of each year of the agreement, the monthly contribution paid by the C ity shall be increased by the same dollar increase in medical insurance as is provided to active employees as set forth in Section 14.1 of the agreement up to the lowest cost HMO two-party rate.

 If hired after 1/1/2009 and retired from service, the C ity shall provide the following benefit: Employees who service retire prior to the completion of 20 years of full-time service shall receive 4 percent for each year of service of the single plan rate for the lowest cost HMO. Employees who retire after the completion of the 20 years of full time service will r eceive 4 percent for each year of service of the two- party rate for the lowest cost HMO.

 For all employees who are hired on or after 1/1/2012, and retire from service, the City shall provide the following benefit: Commencing upon the date of hire, the employee will be credited with 4 percent for each year of service of the single plan rate for the lowest cost HMO. Upon reaching Medicare eligibility age, the City's contribution toward the medical premium shall cease.

IAFF (International Association of Firefighters) MOU

 For IAFF employees who retired prior to 1/1/2008, the C ity shall pay for each year of service 4 percent of the monthly premium for employee and one dependent of the City's current Kaiser Health Plan coverage.

 For IAFF employees who were hired before 7/1/2012 and retire after 1/1/2008, the City shall pay 4 percent for each year of service of the City's contribution toward the monthly premium for employee and one dependent. The City's contribution for retiree me dical is established as the same dollar contribution paid for active employees at the employee plus one rate of the lowest cost HMO early retiree plan.

 If hired on or after 7/1/2012, the City shall pay for each year of service equivalent to 4 percent of the City's contribution toward the monthly premium for single coverage. The City's contribution for retiree medical is established as the same dollar contribution paid for active employees at the single rate of the lowest cost HMO early retiree plan. Retiree heal th benefits will cease once the employee becomes Medicare eligible.

Management and Confidential MOU

 For Management and Confidential em ployees hired before 1/1/2009, who retired prior to 7/1/2009, the City shall pay for each year of service 4 percen t of the monthly premium for the employee and one dependent of the City's current Kaiser early retiree (under age 65) health plan rate.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

125
Note 13 – Post-Employment Health Care Benefits (Continued)

A. Plan Description and Benefits Provided (Continued)

Management and Confidential MOU (Continued)

 Managers hired prior to 1/1/2009 who work a minimum of five years as full-time managers with the City of Pleasanton are eligible to count prior years of service completed with another PERS municipal agency toward service requirements for retiree medical benef its. Employees hired before 1/1/2009 who promote to management positions may count prior years of service completed with another PERS municipal agency for the retiree medical benefit.

 For Management and Confidential employees who were hired prior to 1/21/2009 and retire on a service retirement from the City of Pleasanton, the City shall pay 4 percent for each year of service of the City's contribution toward the monthly premium for employ ee and one dependent. For all service retirements the formula accelerates beginning with 10 years of service (10 years = 75%, 15 years = 80%, 20 years = 90%, 25 years = 100%). Managers hired prior to 1/1/200 9 who work a minimum of five years as a full- time manager with the City of Pleasanton are eligible to count prior years of service completed with another PERS municipal agency toward service requirements for retiree medical benefits.

 If hired on or after 1/21/2009, the City shall pay 4 percent for each year of service of the City's contribution toward the monthly premium for single coverage. For all service retirements, the formula accelerates beginning with 10 years of service (10 years = 75%, 15 years = 80%, 20 years = 90%, 25 years = 100%). The City's contribution for retiree me dical is established as the same dollar contribution paid for active employees at the single rate of the lowest cost HMO early retiree plan. Retiree health benefits including reimbursements will cease once employees become Medicare eligible.

In the case where the employee eligible for two-party cove rage is deceased, the amount the City is obligated to pay shall be reduced by one half (1/2). If a spouse remarries, the obligations by the City shall terminate. Domestic Partners shall be treated in the same manner as spouses for continuation of benefits.

For all employees mentioned above who retire for disability , the City shall pay a percentage of the monthly premium in accordance with the applicable MOU.

The City allows retirees to participate in the early re tiree medical plan, which at th e time of retirement has the same premium rates as active employees. Because the rate is a "blended rate," payments for the active employees include an implied subsidy of what would normally be a higher rate for retirees if the retirees were enrolled in a stand-alone health plan. The premium rate paid by a retir ee depends on the retiree's former classification, years of service, and the formula specified in the applicable MOU.

Employees Covered by Benefit Terms – Membership in the plans consisted of the following at the measurement date of June 30, 2024:

Non-Fire Fire
Active plan members 353 127
Inactive employees or beneficiaries currently
receiving benefit payments 378 122
Inactive employees entitled to but not yet
receiving benefit payments 49 8
Total 780 257

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

126
Note 13 – Post-Employment Health Care Benefits (Continued)

B. Funding Policy

In April 2011, the City established an Other Post Employm ent Health Benefit (OPEB) irrevocable trust, the City of Pleasanton Group Account, with the Californi a Employer's Retiree Benefit Trust Program (CERBT) administered by the California Public Employees' Retir ement System (CalPERS) as an agent multiple-employer plan. This trust is used to accumulate resources to f und future benefits, however, it does not represent the activities of the plan. Financial statements of CERBT are included in the CalPERS Annual Comprehensive Financial Report (ACFR). Copies of the CalPERS ACFR may be obtained from the CalPERS Executive Office - 400 P Street, Sacramento, California 95814.

C. Net OPEB Liability

Actuarial Methods and Assumptions

The City's net OPEB liability was measured as of June 30, 2024, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valua tion dated June 30, 2023, th at was rolled forward using standard update procedures to determ ine the June 30, 2024 total OPEB liability as of June 30, 2024, based on the following actuarial methods and assumptions:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Assumptions:

Discount Rates
General Inflation
Salary increase
M ortality, Retirement, Disability, Termination
Mortality Improvement
M edical Trend
Healthcare Participation for Future Retirees

6.25%
Non-M edicare - 8.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Non-Kaiser) - 7.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Kaiser) - 6.25% for 2025, decreasing to an ultimate rate of 3.45% in 2076
Scale M P-2021 Projection Scale
CalPERS 2000-2019 Experience Study

2.75% per annum, in aggregate
Merit - CalPERS 2000-2019 Experience Study

2.5% per annum
Current actives - 100%
Current retirees - 100% if in payment status, 30% and 50% for non-fire and fire, respectively, will re-elect at age 65 if not payment status

The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

127
Note 13 – Post-Employment Health Care Benefits (Continued)

C. Net OPEB Liability (Continued)

Long-Term
Expected Real
Asset Class Targ et Allocation Rate of Return
Global Equity 49% 4.56%
Fixed Income 23% 1.56%
TIPS 5% -0.08%
Commodities 3% 1.22%
REITs 20% 4.06%
Total 100%
Assumed Long-term rate of inflation is 2.5%.

Long-term expected rate of return is 6.25%.

Discount Rate

The discount rate used to measure the total OPEB liability was 6.25 percent. The projection of cash flows used to determine the discount rate assumed that City contribut ions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries.

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

Change of Assumptions

There were no changes of assumptions in 2024.

D. City of Pleasanton Retiree Healthcare Plan Changes in Net OPEB Liability

The changes in the net OPEB liability for the City of Pleasanton Retiree Healthcare Plan is as follows:

Total OPEB Plan Fiduciary Net Net OPEB
L iability Position L iability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2023 78,928,000 $ 59,936,000 $ 18,992,000 $ Changes recognized for the measurement period:

Service cost 1,274,000 - 1,274,000 Interest 4,879,000 - 4,879,000 Difference between expected and actual experience - - - Changes of assumptions - - - Contributions from the employer - 4,286,000 (4,286,000) Net investment income - 6,583,000 (6,583,000) Benefit payments and refunds (4,280,000) (4,280,000) - Administrative expenses - (26,000) 26,000 Net changes during July 1, 2023 to June 30, 2024 1,873,000 6,563,000 (4,690,000) Balance at June 30, 2024 (Measurement Date) 80,801,000$ 66,499,000 $ 14,302,000 $ Increase (Decrease)

Detailed information about the OPEB pl an's fiduciary net position is available in the separately issued plan financial report that may be obtained from CERBT. The be nefit payments and refunds include implied subsidy benefit payments in the amount of $4,280,000.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

128
Note 13 – Post-Employment Health Care Benefits (Continued)

D. City of Pleasanton Retiree Healthcare Plan Changes in Net OPEB Liability (Continued)

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates

The following presents the net OPEB liability of the City for the City of Pleasanton Retiree Healthcare Plan, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is 1- percentage-point lower (5.25%) or 1-percentage-point higher (7.25%) than the current discount rate:

Discount Rate Current Discount Discount Rate
- 1% (5.25%) Rate (6.25%) + 1% (7.25%)
23,934,000$ 14,302,000 $ 6,254,000 $ Plan's Net OPE B L iability/(Asset)

The following presents the net OPEB liability of the City for the City of Pleasanton Retiree Healthcare Plan, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:

Healthcare Trend Current Healthcare Healthcare Trend
Rate -1 Percent Trend Rate 1% Increase
5,064,000$ 14,302,000 $ 25,433,000 $ Plan's Net OPE B L iability/(Asset)

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB

For the year ended June 30, 2025, the City recognized O PEB expense of $231,000, a reduction in expense for the City of Pleasanton Retiree Healthcare Plan. At June 30, 2 025, the City reported deferre d outflows and inflows of resources related to OPEB from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Employer contributions made subsequent
to the measurement date 4,682,000 $ - $
Differences between expected and actual experience - (3,578,000) Changes in assumptions 3,103,000 (152,000) Net difference between projected and actual
earnings on plan investments 672,000 - Total 8,457,000 $ (3,730,000) $
OPE B Plan

The $4,682,000 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ending June 30, 2026.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

129
Note 13 – Post-Employment Health Care Benefits (Continued)

D. City of Pleasanton Retiree Healthcare Plan Changes in Net OPEB Liability (Continued)

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)

Other amounts reported as deferred outflows of resources a nd deferred inflows of resources related to OPEB will be recognized as part of OPEB expense as follows:

Deferred Outflows
Measurement Perio d /(Inflows)
Ending June 30 of Resources
2025 (2,215,000)$
2026 2,507,000
2027 236,000
2028 (483,000)
2029 -
Thereafter -
45,000$

E. Livermore-Pleasanton Fire Department Retiree Healthcare Plan

As discussed in Note 10F, the City is a member of a Joint Powers Agreement (JPA), along with the City of Livermore, of the Livermore-Pleasanton Fire Department (LPFD). The employees of the LPFD are the City of Pleasanton's employees, however, as agreed to in the JPA, th e City equally shares the Safety Fire Plan affiliated with the LPFD with the City of Livermore. As there is a special funding arrangement with the City of Livermore, the City of Pleasanton only records its 50 percent share of the collective net OPEB liab ility and related deferred inflows/outflows, which is included in its Net Invest ment (Deficit) in LPFD on the Governmental Activities Statement of Net Position, using the equity method of accounting.

The changes in the net OPEB liability for the Livermor e-Pleasanton Fire Department (LPFD) (City of Pleasanton only) Retiree Healthcare Plan is as follows:

Total OPEB Plan Fiduciary Net Net OPEB
L iability Position L iability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2023 17,908,500 $ 13,673,000 $ 4,235,500 $ Changes recognized for the measurement period:

Service cost 373,500 - 373,500 Interest 1,117,000 - 1,117,000 Difference between expected and actual experience - - - Assumption changes - - - Contributions From the Employer - 547,500 (547,500) Net Investment Income - 1,495,000 (1,495,000) Benefit Payments and Refunds (834,500) (834,500) - Administrative Expenses - (5,500) 5,500 Net changes during July 1, 2023 to June 30, 2024 656,000 1,202,500 (546,500) Balance at June 30, 2024 (Measurement Date) 18,564,500$ 14,875,500 $ 3,689,000 $ Increase (Decrease)

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

130
Note 13 – Post-Employment Health Care Benefits (Continued)

E. Livermore-Pleasanton Fire Department Retiree Healthcare Plan (Continued)

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates

The following presents the City's por tion of the net OPEB liability for th e LPFD Retiree Healthcare Plan, as well as what City's net OPEB liability would be if it were cal culated using a discount rate that is 1-percentage- point lower (5.25%) or 1-percentage-point higher (7.25%) than the current discount rate:

Discount Rate Current Discount Discount Rate
- 1% (5.25%) Rate (6.25%) + 1% (7.25%)
5,924,000$ 3,689,000 $ 1,817,000 $ Plan's Net OPE B L iability/(Asset)

The following presents the City's por tion of the net OPEB liability for th e LPFD Retiree Healthcare Plan, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1- percentage- point lower or 1-percentage-point higher than the current healthcare cost trend rates:

Healthcare Trend Current Healthcare Healthcare Trend
Rate -1 Percent Trend Rate 1% Increase
1,513,000$ 3,689,000 $ 6,310,500 $ Pl an's Ne t O PEB Li abi l i ty/(Asse t)

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB

For the year ended June 30, 2025, the City recogni zed OPEB income of $51,000 for the LPFD Retiree Healthcare Plan. At June 30, 2025, the City reported defe rred outflows and inflows of resources related to OPEB from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Employer contributions made subsequent
to the measurement date 858,000 $ - $
Differences between expected and actual experience - (2,030,500) Changes in assumptions 789,500 (66,000) Net difference between projected and actual
earnings on plan investments 152,000 - Total 1,799,500 $ (2,096,500) $
OPE B Plan

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

131
Note 13 – Post-Employment Health Care Benefits (Continued)

E. Livermore-Pleasanton Fire Department Retiree Healthcare Plan (Continued)

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)

The $858,000 reported as deferre d outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liab ility in the year ending June 30, 2026. Other amounts reported as deferred outflows of resources and deferred infl ows of resources related to OPEB will be recognized as part of OPEB expense as follows:

Deferred Outflows
Measurement Period /(Inflows)
Ending June 30 of Resources
2025 (689,000) $
2026 (142,500)
2027 (263,500)
2028 (74,000)
2029 14,000
Thereafter -
(1,155,000)$

Note 14 – Commitments and Contingencies

A. Animal Shelter

The County of Alameda owns and operates the East Count y Animal Shelter. The fac ility was placed in service during FY 1995/96. The cities of Pleasanton, Dublin a nd Livermore and the County of Alameda (County) shared in the cost of the animal shelter constructed on Count y property. The cities pay their pro rata share of the operating costs based on their usage of the animal shelter. The City’s share of FY 2024/25 operating costs for the facility was $193,322.

B. Lawsuits in the Normal Course of Business

The City is presently involved in certain matters of litiga tion that have arisen in the normal course of conducting City business. City management believ es, based upon consultation with the Ci ty Attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City’s risk sharing progra ms are sufficient to cover any potential losses should an unfavorable outcome materialize.

C. LAVWMA Bonds

The City has recorded an investment in joint venture for its participation in the Livermore-Amador Valley Water Management Agency (LAVWMA). L AVWMA issued $105,345,000 of th e 2011 Sewer Revenue Refunding Bonds (2011 Bonds) on September 28, 2011, to refinance th e costs of improvements to the wastewater disposal system, including the Export Pipeline Expansion/Rehabilita tion Project originally constructed with bonds issued in 2001. The 2011 Bonds are secured by the pledge of the net revenues of the Agency. The City’s contribution to debt service is limited to sewer connection fees collected on behalf of LAVWMA.

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

132
Note 14 – Commitments and Contingencies (Continued)

D. Construction Commitments

The City had several outstanding or planned construction projects as of June 30, 2025. These projects are evidenced by contractual commitments with consultant s and contractors, and in clude the following major projects:

Project Description Amount
Johnson Drive Economic Development Zone (Costco) * 4,734,984 $ Annual Street Resurfacing and Preventative Maintenance 4,062,463 Sunol Boulevard/I-680 Interchange Improvements 3,268,233 Near-term Water Improvements 1,886,955
Hopyard Road and Owens Drive Intersection Improvements 1,711,840 15,664,475$
*Note: The Transportation and Cost Allocation Agreement for the Johnson Drive Economic Development Zone (JDEDZ) reflected above shows the City's commitment portion to the Costco development project. It should be noted that the amount and agreement presented to Council and established in 2018 were presented as preliminary and estimated total project costs; since then, project costs and estimates have increased.

Note 15 – Changes to or within the Financial Reporting Entity and Restatements

During fiscal year 2025, The City GASB Statement No. 101, Compensated Absences . In addition to the value of unused vacation time owed to employees upon separation of employment, the City now recognizes an estimated amount of sick leave earned as of year-end that will be u sed by employees as time off in future years as part of the liability for compensated absences. Changes to or within the financial reporting entity restatements of beginning net position and fund net position are as follows:

June 30, 2024 Change to or within Change in
As Previously the Financial Reporting Accounting Principles June 30, 2024 Reported Entity GASB 101 As Restated
Government-Wide
Governmental Activities 581,133,813 $ - $ (7,457,669)$ 573,676,144 $ Governmental Funds:

Ma j o r Fun ds:

Miscellaneous Capital Imporvement Programs Fund 27,796,322 (27,796,322) - - Nonmajor Funds 80,115,463 27,796,322 - 107,911,785 Total Governmental Funds 107,911,785 $ - $ - $ 107,911,785$ Proprietary Funds:

Internal Service Funds (64,190,283) - (7,457,669) (71,647,952) Total Proprietary Funds (64,190,283) $ - $ (7,457,669)$ (71,647,952) $

City of Pleasanton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

133
Note 16 – Net Investment in Capital Assets

The net investment in capital assets for governmental ac tivities, business activities and enterprise funds is calculated as follow:

Governmental Business-Type
Activities Activities
Total capital assets, net 530,628,739 $ 149,872,821 $
Unspent capital debt proceed - 11,147,137 Capital assets related accounts payable (3,685,671) (768,400) Retention payable (723,703) (124,321)
Capital related debt (17,587,557) (27,788,219)
Net investment in capital assets 508,631,808 $ 132,339,018 $

Water Sewer Golf Storm Drain Nonmajor
Total capital assets, net 80,828,271 $ 35,026,878 $ 14,982,228 $ 18,137,547 $ 897,897 $ Unspent capital debt proceed 11,147,137 - - - - Capital assets related accounts payable (579,214) (44,750) - (144,436) - Retention payable (117,325) (525) - (6,471) - Capital related debt (27,614,408) - (173,811) - - Net investment in capital assets 63,664,461 $ 34,981,603 $ 14,808,417 $ 17,986,640 $ 897,897 $ Ente rpri se Fund

134
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REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
135

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136

City of Pleasanton
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedules
For the Year Ended June 30, 2025
Budget and Budgetary Accounting
Budgetary Information
The following procedures are performed by the City in establishing the budgetary data reflected in the basic financial statements:

1. Prior to July 1 of every odd numbered year, the City Manager submits to the City Council a proposed two-year operating budget for the subsequent two fiscal years. The operating budget includes proposed expenditures and projected revenues.

2. Public hearings are conducted to obtain public comments.

3. The budget is legally adopted through passage of a Council resolution.

4. The transfer of budgeted amounts between funds must be approved by the City Council.

5. A budget review is presented to the City Council by the City Manager mid-year and approved.

6. A budget review is presented to the City Council by the City Manager for the second year of the two-year budget and approved.

7. After adoption, the
budget is transferred to the general ledge r for staff to manage expenses an d revenues against the budget.

8. The budgeted funds are adopted on a basis consistent with generally accepted accounting principles in the United States.

9. Expenditures may not legally exceed budgeted appropriations at the fund level. Management does not have the authority to amend the budget without the approval of the City Council. However, the City Manager may authorize transfers from one account to another within the same fund.

10. The City did not adopt a budget for the Library Trust Special Revenue Fund, Opioid Settlements Special Revenue Fund, and PFAS Settlement Special Revenue Fund for the fiscal year ended June 30, 2025. 137

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138

General Fund Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes 130,162,000 $ 131,409,500 $ 131,415,406 $ 5,906 $ Licenses and permits 3,216,000 3,066,000 5,031,189 1,965,189 Intergovernmental 544,000 632,000 959,054 327,054 Franchises tax 3,185,000 3,440,000 3,534,124 94,124 Charges for services 1,589,100 1,589,100 1,226,521 (362,579) Use of money and property 590,000 983,700 4,866,715 3,883,015 Fines and forfeitures 184,000 184,000 191,195 7,195 Plan check fees 2,140,000 2,140,000 3,528,818 1,388,818 Contributions 7,000 7,000 10,894 3,894 Development fees 200,500 200,500 580,577 380,077 Miscellaneous 9,421,175 9,534,540 11,507,092 1,972,552 Total revenues 151,238,775 153,186,340 162,851,585 9,665,245 EXPENDITURES:

Current:

General government 29,662,408 28,499,873 26,507,681 1,992,192 Public safety 66,460,073 66,487,251 66,509,481 (22,230) Community development 11,272,853 11,142,513 11,408,945 (266,432) Public works 29,613,599 29,952,508 30,857,633 (905,125) Community activities 16,302,641 16,308,861 15,222,906 1,085,955 Capital outlay 617,930 14,064,370 15,129,647 (1,065,277) Debt service:

Principal - 813,570 908,817 (95,247) Interest - 25,200 28,820 (3,620) Total expenditures 153,929,504 167,294,146 166,573,930 720,216

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (2,690,729) (14,107,806) (3,722,345) 10,385,461 OTHER FINANCING SOURCES (USES):

Transfers in 5,943,780 1,271,780 1,365,780 94,000 Transfers out (7,728,578) (6,956,577) (7,139,046) (182,469) Issuance of loan - 12,758,240 12,758,240 - Inception of lease and subscription liability - 689,700 1,639,987 950,287 Total other financing sources (uses) (1,784,798) 7,763,143 8,624,961 861,818 NET CHANGE IN FUND BALANCE (4,475,527)$ (6,344,663) $ 4,902,616 11,247,279 $ FUND BALANCE:

Beginning of year 61,955,364
End of year 66,857,980$
City of Pleasanton
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule
For the Year Ended June 30, 2025
Budgeted Amounts
139

Lower Income Housing Special Revenue Fund Variance with Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property 470,000 $ 698,200 $ 2,532,176 $ 1,833,976 $ Development fees 1,750,000 1,750,000 99,264 (1,650,736) Miscellaneous 160,000 160,000 463 (159,537) Total revenues 2,380,000 2,608,200 2,631,903 23,703 EXPENDITURES:

Current:

Community development 611,991 1,110,424 1,105,455 4,969 Total expenditures 611,991 1,110,424 1,105,455 4,969

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,768,009 1,497,776 1,526,448 28,672 OTHER FINANCING (USES):

Transfers out - (260,000) (260,000) - Total other financing (uses) - (260,000) (260,000) - NET CHANGE IN FUND BALANCE 1,768,009$ 1,237,776 $ 1,266,448 28,672 $ FUND BALANCE:

Beginning of year 17,438,063
End of Year 18,704,511$
City of Pleasanton
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule
For the Year Ended June 30, 2025
Budgeted Amounts
140

Miscellaneous Grants Special Revenue Fund Variance with Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 6,640,993 $ 15,182,690 $ 2,989,537 $ (12,193,153) $ Use of money and property 29,000 29,000 72,581 43,581 Total Revenues 6,669,993 15,211,690 3,062,118 (12,149,572) EXPENDITURES:

Current:

Public safety 248,820 554,454 104,791 449,663 Community development - 811,402 392,139 419,263 Community activities 164,225 164,225 177,907 (13,682) Capital outlay 6,087,948 15,390,459 3,915,616 11,474,843 Total Expenditures 6,500,993 16,920,540 4,590,453 12,330,087 NET CHANGE IN FUND BALANCE 169,000$ (1,708,850) $ (1,528,335) 180,515 $ FUND BALANCE:

Beginning of year 1,297,977
End of year (230,358)$
Budgeted Amounts
City of Pleasanton
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule
For the Year Ended June 30, 2025
141

Measurement period 2023-24 2022-23 2021-22 2020-21 2019-20 Total pension liability
Service cost 6,674,719 $ 6,560,486 $ 6,535,478 $ 5,876,564 $ $ 5,723,859 Interest 24,722,666 23,622,848 22,361,074 21,730,715 20,882,221 Changes of benefit terms - 269,560 - - - Changes of assumptions - - 10,556,117 - - Differences between expected and actual experience 5,223,304 7,067,947 (1,795,474) 702,330 568,594 Benefit payments, including refunds of employee contributions (20,230,423) (18,818,315) (17,101,661) (15,998,179) (15,037,274) Net change in total pension liability 16,390,266 18,702,526 20,555,534 12,311,430 12,137,400 Total pension liability - beginning 359,854,052 341,151,526 320,595,992 308,284,562 296,147,162 Total pension liability - ending (a) 376,244,318$ 359,854,052 $ 341,151,526 $ 320,595,992 $ 308,284,562 $ Pension fiduciary net position
Contributions - employer 12,797,261 $ 12,386,262 $ 11,399,801 $ 10,488,757 $ 9,500,835 $ Contributions - employee 2,770,936 2,571,878 2,424,706 2,341,839 2,374,586 Net investment income 22,478,439 14,012,320 (18,614,805) 45,976,982 9,803,632 Benefit payments, including refunds of employee contributions (20,230,423) (18,818,315) (17,101,661) (15,998,179) (15,037,274) Net Plan to Plan Resource Movement - (164,262) - - - Administrative expense (189,891) - (152,884) (202,601) (276,948) Other Miscellaneous Income/(Expense)1 - - - - - Net change in plan fiduciary net position 17,626,322 9,987,883 (22,044,843) 42,606,798 6,364,831 Plan fiduciary net position - beginning2 233,366,025 223,378,142 245,422,985 202,816,187 196,451,356 Plan fiduciary net position - ending (b) 250,992,347$ 233,366,025 $ 223,378,142 $ 245,422,985 $ 202,816,187 $ Plan net pension liability - ending (a) - (b) 125,251,971$ 126,488,027 $ 117,773,384 $ 75,173,007 $ 105,468,375 $ Plan fiduciary net position as a percentage 66.71% 64.85% 65.48% 76.55% 65.79% of the total pension liability
Covered payroll3 32,815,728$ 32,269,976 $ 31,210,496 $ 30,480,102 $ 29,158,730 $ Plan net pension liability as a percentage of covered
payroll 381.68% 391.97% 377.35% 246.63% 361.70%
Notes to Schedule:

City of Pleasanton
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net Pension Liability and Related Ratios 3 Includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal years ended in 2022 through 2024; 2.75% payroll growth assumption for fiscal years ended in 2018 through 2021; 3.00% payroll growth assumption for fiscal years ended in 2015 through 2017.

For the Year Ended June 30, 2025
Last Ten Fiscal Years
Agent Multiple-Employer Defined Benefit Pension Plan - Miscellaneous Plan 1 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefi ts for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75. Ad ditionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to pr eviously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).
2 Includes any beginning of year adjustment.

Changes of Benefit Terms: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurr ed on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are n ot included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-te rm market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were ch anged in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016. 142

Measurement period 2018-19 2017-18 2016-17 2015-16 2014-15 Total pension liability
Service cost 5,641,356 $ 5,553,995 $ 5,161,399 $ 4,642,360 $ 4,620,237 $ Interest 20,052,323 18,845,304 18,145,556 17,579,426 16,848,783 Changes of benefit terms - - - - - Changes of assumptions - (1,677,841) 14,750,758 - (4,043,655) Differences between expected and actual experience 6,305,281 939,844 (892,842) (600,717) (1,853,569) Benefit payments, including refunds of employee contributions (14,355,824) (13,377,947) (12,579,145) (12,124,179) (10,532,758) Net change in total pension liability 17,643,136 10,283,355 24,585,726 9,496,890 5,039,038 Total pension liability - beginning 278,504,026 268,220,671 243,634,945 234,138,055 229,099,017 Total pension liability - ending (a) 296,147,162$ 278,504,026 $ 268,220,671 $ 243,634,945 $ 234,138,055 $ Pension fiduciary net position
Contributions - employer 8,420,069 $ 7,497,182 $ 6,881,221 $ 7,313,803 $ 12,476,826 $ Contributions - employee 2,216,373 2,169,969 2,201,929 1,841,400 1,936,755 Net investment income 12,305,193 15,054,343 18,392,392 995,694 3,697,901 Benefit payments, including refunds of employee contributions (14,355,824) (13,377,947) (12,579,145) (12,124,179) (10,532,758) Net Plan to Plan Resource Movement - (437) - - 47 Administrative expense (134,160) (276,528) (240,366) (100,483) (185,591) Other Miscellaneous Income/(Expense)1 437 (525,132) - - - Net change in plan fiduciary net position 8,452,088 10,541,450 14,656,031 (2,073,765) 7,393,180 Plan fiduciary net position - beginning2 187,999,268 177,457,818 162,801,787 164,875,552 157,482,372 Plan fiduciary net position - ending (b) 196,451,356$ 187,999,268 $ 177,457,818 $ 162,801,787 $ 164,875,552 $ Plan net pension liability - ending (a) - (b) 99,695,806$ 90,504,758 $ 90,762,853 $ 80,833,158 $ 69,262,503 $ Plan fiduciary net position as a percentage 66.34% 67.50% 66.16% 66.82% 70.42% of the total pension liability
Covered payroll3 28,365,628$ 27,648,324 $ 25,556,540 $ 25,673,931 $ 25,009,403 $ Plan net pension liability as a percentage of covered
payroll 351.47% 327.34% 355.15% 314.85% 276.95%
City of Pleasanton
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2025
Last Ten Fiscal Years
Agent Multiple-Employer Defined Benefit Pension Plan - Miscellaneous Plan (Continued) 143

Measurement period 2023-24 2022-23 2021-22 2020-21 2019-20 Total pension liability
Service cost 5,282,990 $ 4,993,490 $ 4,807,206 $ 4,598,453 $ 4,298,858 $ Interest 18,778,356 17,955,605 17,212,474 16,797,644 16,332,352 Changes of benefit terms - 104,456 Changes of assumptions - - 7,425,405 - - Differences between expected and actual experience 3,572,278 2,416,474 (1,310,737) (1,653,484) (711,914) Benefit payments, including refunds of employee contributions (15,185,811) (14,298,608) (13,428,832) (12,753,324) (12,486,579) Net change in total pension liability 12,447,813 11,171,417 14,705,516 6,989,289 7,432,717 Total pension liability - beginning 273,529,217 262,357,800 247,652,284 240,662,995 233,230,278 Total pension liability - ending (a) 285,977,030$ 273,529,217 $ 262,357,800 $ 247,652,284 $ 240,662,995 $ Pension fiduciary net position
Contributions - employer $9,552,264 $9,336,592 8,674,723 $ 8,417,815 $ 7,673,223 $ Contributions - employee 2,324,678 2,192,091 1,971,096 2,075,602 1,916,617 Net investment income 17,414,310 10,701,826 (14,383,039) 35,672,512 7,564,086 Benefit payments, including refunds of employee contributions (15,185,811) (14,298,608) (13,428,832) (12,753,324) (12,486,579) Net Plan to Plan Resource Movement - - - - - Administrative expense (146,877) (126,995) (118,349) (156,562) (214,671) Other Miscellaneous Income/(Expense)1 - - - - - Net change in plan fiduciary net position 13,958,564 7,804,906 (17,284,401) 33,256,043 4,452,676 Plan fiduciary net position - beginning2 180,504,709 172,699,803 189,984,204 156,728,161 152,275,485 Plan fiduciary net position - ending (b) 194,463,273$ 180,504,709 $ 172,699,803 $ 189,984,204 $ 156,728,161 $ Plan net pension liability - ending (a) - (b) 91,513,757$ 93,024,508 $ 89,657,997 $ 57,668,080 $ 83,934,834 $ City Share (50%) 45,756,879$ 46,512,254 $ 44,828,999 $ 28,834,040 $ 41,967,417 $ Plan fiduciary net position as a percentage 68.00% 65.99% 65.83% 76.71% 65.12% of the total pension liability
Covered payroll3 18,641,461$ 17,521,016 $ 16,423,661 $ 16,924,746 $ 15,581,217 $ Plan net pension liability as a percentage of covered
payroll 490.92% 530.93% 545.91% 340.73% 538.69%
Notes to Schedule:

City of Pleasanton
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net Pension Liability and Related Ratios For the Year Ended June 30, 2025
Last Ten Fiscal Years
Agent Multiple-Employer Defined Benefit Pension Plan - Safety (Fire) Plan 1 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefi ts for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75. Ad ditionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to pr eviously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).
2 Includes any beginning of year adjustment.
3 Includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal years ended in 2022 through 2024; 2.75% payroll growth assumption for fiscal years ended in 2018 through 2021; 3.00% payroll growth assumption for fiscal years ended in 2015 through 2017.

Changes of Benefit Terms: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurr ed on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are n ot included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-te rm market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were ch anged in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016. 144