Reedley City Council
January 14, 2025

ALL CELL PHONES AND ELECTRONIC DEVICES MUST BE

TURNED OFF IN THE COUNCIL CHAMBERS
AGENDA

REEDLEY CITY COUNCIL MEETING
7:00 P.M.

TUESDAY, JANUARY 14, 2025
Meeting Held in the Council Chambers
845 "G" Street, Reedley, California
www .reedley.ca.gov
Peticiones para servicios de traducci6n deben ser sometidas 48 horas antes a la Secretaria Municipal al numero 637-4200 ext. 212
The Council Chambers are accessible to the physically disabled. Requests for additional accommodations for the disabled, including auxiliary aids or to request translation services, should be made 48 hours prior to the meeting by contacting the City Clerk at 637-4200 ext. 212.

Any document that is a public record and provided to a majority of the City Council regarding an open session item on the agenda will be made available for public inspection at City Hall, in the City Clerk's office, during normal business hours. In addition, such documents may be posted on the City's website.

Unless otherwise required by law to be accepted by the City at or prior to a Council meeting or hearing, no documents shall be accepted for Council review unless they are first submitted to the City Clerk by the close of business one day prior to said Council meeting/hearing at which the Council will consider the item to which the documents relate, pursuant to the adopted City Council Protocols.

The meeting will be held in person and may be observed remotely via Zoom or at:
http://www.reedley.com/livestream.php.

Public comment may be made in person or submitted in writing. Members of the public who wish to provide written comments are encouraged to submit their comments to the City Clerk at [email protected] by the close of business one day prior to the start of the meeting to ensure that the comments will be available to the City Council. Please indicate the agenda item number to which the comment pertains. Written comments that do not specify a particular agenda item will be marked for the general public comment portion of the meeting. A copy of any written comment will be provided to the City Council at the meeting. Please note that written comments received will not be read aloud during the meeting, but will be included with the meeting minutes.

Matthew Tuttle, Mayor
Mary Fast, Mayor Pro Tern
Christopher Arriaga, Council Member

MEETING CALLED TO ORDER
Michael Crutchfield, Council Member
Scott Friesen, Council Member
INVOCATION- Pastor Virgil Miller, Christ Lutheran Church

PLEDGE OF ALLEGIANCE

ROLL CALL

AGENDA APPROVAL - ADDITIONS AND/OR DELETIONS

PRESENTATION

1. OATH OF OFFICE AND BADGE PINNING FOR FIRE CHIEF CANALES AND POLICE

CHIEF EDIGER
BREAK

2. PRESENTATION FROM FRESNO COUNTY ASSESSOR PAUL DICTOS REGARDING

FRESNO COUNTY PROPERTY OWNERS PROTECTION ALERT
PUBLIC COMMENT - Provides an opportunity for members of the public to address the City Council on items of interest to the public within the Council's jurisdiction and which are not already on the agenda this evening. It is the policy of the Council not to answer questions impromptu. Concerns or complaints will be referred to the City Manager's office. Speakers should limit their comments to not more than three (3) minutes. No more than ten (10) minutes per issue will be allowed. For items which are on the agenda this evening, members of the public will be provided an opportunity to address the Council as each item is brought up for discussion.

NOTICE TO PUBLIC
CONSENT AGENDA items are considered routine and a recommended action for each item is included, and will be voted upon as one item. If a Councilmember has questions, requests additional information, or wishes to comment on an item, the vote should not be taken until after questions have been addressed or comments made, and the public has had an opportunity to comment on the Consent Agenda items. If a Councilmember wishes to have an item considered individually or change the recommended action, then the item should be removed and acted upon as a separate item. A Councilmember's vote in favor of the Consent Agenda is considered and recorded as a separate affirmative vote in favor of each action listed. For adoption of ordinances, only those that have received a unanimous vote upon introduction are considered Consent items.

CONSENT AGENDA (Item 3-7)

3. APPROVAL OF MINUTES OF THE REGULAR COUNCIL MEETING OF DECEMBER 17, 2024 - (City Clerk)
Staff Recommendation: Approve

4. APPROVAL OF EXPENSE REIMBURSEMENT FOR COUNCIL MEMBER FAST- (Administrative Services)
Staff Recommendation: Approve

5. RATIFICATION OF A SOFTWARE SERVICES AGREEMENT WITH IWORQ SYSTEMS, INC. FOR AN ONLINE CITIZEN ENGAGEMENT & REQUEST PLATFORM-(Administrative Services)
Staff Recommendation: Approve

6. APPROVAL FOR TRAVEL AND CONFERENCE RELATED EXPENSES FOR COUNCIL

MEMBER ARRIAGA AND COUNCIL MEMBER CRUTCHFIELD TO ATTEND THE LEAGUE OF CALIFORNIA CITIES COUNCIL MEMBERS ACADEMY- (City Clerk) Staff Recommendation: Approve
2 7. ADOPTING RESOLUTION 2025-004 OF THE CITY COUNCIL OF THE CITY OF

REEDLEY ADOPTING THE ANNUAL CITY STATEMENT OF INVESTMENT POLICY- (Administrative Services)
Staff Recommendation: Approve

PUBLIC HEARING

8. PRESENTATION ON THE STATUS OF VACANCIES AND RECRUITMENT EFFORTS AS CALLED FOR BY ASSEMBLY BILL 2561- Report, discussion and/or other Council action to approve, modify, and/or take other action as appropriate. - (Administration) Staff Recommendation: Approve

ADMINISTRATIVE BUSINESS

9. ADOPT RESOLUTION 2025-005 A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF REEDLEY NOMINATING A CITY OF REEDLEY COUNCIL MEMBER AS THE CITY

REPRESENTATIVE, AND A DINUBA COUNCIL MEMBER AS THE ALTERNATE CITY

REPRESENTATIVE, ON THE BOARD OF THE KINGS RIVER EAST GROUNDWATER SERVICES AGENCY FOR THE FOUR-YEAR TERM BEGINNING FEBRUARY 1, 2025- Report, discussion and/or other Council action to approve, modify, and/or take other action as appropriate. - (Administration)
Staff Recommendation: Approve

10.CONFIRM APPOINTMENTS OF COUNCIL MEMBERS AND STAFF TO BOARDS AND COMMISSIONS FOR THE 2025 AND 2026 CALENDAR YEARS- Report, discussion and/or other Council action to approve, modify, and/or take other action as appropriate. - (Administration)
Staff Recommendation: Approve

WORKSHOP

11. REEDLEY CHAMBER OF COMMERCE UPDATE

RECEIVE INFORMATION & REPORTS
These items are formal transmittals of information to the Reedley City Council. They are not voted upon by the Reedley City Council. Members of the public who have questions on these items are suggested to call City staff members during regular business hours.

12. RECEIVE, REVIEW AND FILE THE QUARTERLY INVESTMENT REPORT FOR SECOND QUARTER ENDING DECEMBER 31, 2024 FOR FISCAL YEAR 2024-25 - Administrative Services

13. REEDLEY'S RIVER CITY THEATRE COMPANY, PROFIT & LOSS STATEMENT FOR THE PERIOD OF JULY- DECEMBER 2024- Community Services

14.QUARTERLY EXPENSE & TRAVEL REPORT FOR ELECTED AND APPOINTED OFFICIALS-OCTOBER 1, 2024 THROUGH DECEMBER 31, 2024- Administrative Services

15. RECEIVE, REVIEW AND FILE 2023-24 AUDITED CITY FINANCIAL STATEMENTSAdministrative Services 3 COUNCIL REPORTS

16. BRIEF REPORT BY COUNCIL MEMBERS ON CITY RELATED ACTIVITIES AS AUTHORIZED BY THE BROWN ACT AND REQUESTS FOR FUTURE AGENDA ITEMS.

STAFF REPORTS

17. UPDATES AND/OR REPORTS BY CITY MANAGER AND/OR STAFF MEMBERS

ADJOURNMENT
I hereby certify under penalty of perjury, under the laws of the State of California that the foregoing revised agenda was posted in accordance with the applicable legal requirements. Dated this 10th day of January 2025. (ti;~ Ri#:..,;wood, City Clerk
Dates to Remember:

January 28, 2025-Special Meeting 6pm for second half of AB1234 training January 28, 2025-Regular Meeting
4 REEDLEY CITY COUNCIL MEETING - December 17, 2024
A complete audio record of the minutes is available at www.reedlev.ca.gov The meeting of Reedley City Council called to order by Mayor Betancourt at 7:00 p.m. on Tuesday, December 17, 2024 in the City Hall Council Chambers, 845 "G" Street, Reedley, California.

INVOCATION - Rev. Jeff Wheeland, Reedley Mennonite Brethren Church

PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Council Member Byers

ROLL CALL
Council Members

Present:

Absent:

Suzanne Byers, Mary Fast, Scott Friesen, Matthew Tuttle and Anita Betancourt None.

AGENDA APPROVAL - ADDITIONS AND/OR DELETIONS
Council Member Friesen moved, Council Member Tuttle seconded to accept and approve agenda.

Motion unanimously carried.

PRESENTATION

1. RECOGNITION OF AIRPORT COMMISSIONER TONY JEWELL
Community Services Director, Sarah Reid thanked Mr. Jewell for his many contributions to the commission.

2. RETIREMENT OF POLICE CHIEF JOSE GARZA AND FIRE CHIEF JERRY ISAAK Mayor and Council thanked Police Chief Garza and Fire Chief Isaak for the many years of service to the community.

ADMINISTRATIVE BUSINESS-COUNCIL ORGANIZATION

3. ADOPT RESOLUTION NO. 2024-089, A RESOLUTION RECITING THE FACT OF CONSOLIDATED GENERAL ELECTION HELD IN SAID CITY OF REEDLEY ON THE 5TH DAY OF NOVEMBER 2024

AND DECLARING THE RESULT THEREOF AND SUCH OTHER MATTERS AS ARE PROVIDED BY LAW
City Manager Nicole Zieba reported that the consolidated general municipal election was held on November 5, 2024, as required by the laws related to cities in the State of California. The official "Certificate of Elections" results received from Fresno County Clerk, James A. Kus indicated that Matthew Tuttle, Candidate for District 1 was reelected to a new four year term for City of Reedley. Michael Crutchfield Candidate for District 3 was elected to a four year term for City of Reedley and Christopher Wilson Candidate for District 5 was elected to a four year term for City of Reedley.

Council Member Tuttle moved, Council Member Fast seconded to accept and approve to ADOPT RESOLUTION NO. 2024-089, A RESOLUTION RECITING THE FACT OF CONSOLIDATED GENERAL ELECTION HELD IN SAID CITY OF REEDLEY ON THE 5TH DAY OF NOVEMBER 2024 AND DECLARING THE RESULT

THEREOF AND SUCH OTHER MATTERS AS ARE PROVIDED BY LAW
Motion unanimously carried.

4. ACTION TO FILL DISTRICT 5 COUNCIL SEAT
A. ACCEPT RESIGNATION OF CHRISTOPHER WILSON
REEDLEY CITY COUNCIL MEETING - December 17, 2024
B. ADOPT RESOLUTION 2024-091 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REEDLEY APPOINTING CHRISTOPHER ARRIAGA AS COUNCILMEMBER OF DISTRICT 5

TO SERVE A TWO-YEAR TERM
Ms. Zieba explained that three council seats were on the November 5, 2024 general election ballot. Two candidates submitted papers for District 5 Christopher Wilson and Christopher Arriaga. On October 28, 2024 the City Manager received a resignation letter from Mr. Wilson citing personal reasons for not taking the Council seat should he be elected. Unfortunately, it was too late to remove his name from the ballot. Mr. Wilson ultimately won the District 5 seat for the election. With the resignation of Mr. Wilson, the seat is considered vacant. Government Code allows Council to appoint a qualified individual to fill the vacancy.

Council Member Friesen moved, Council Member Byers seconded to accept and approve to ACCEPT

RESIGNATION OF CHRISTOPHER WILSON
Motion unanimously carried.

Council Member Fast moved, Council Member Byers seconded to accept and approve to ADOPT RESOLUTION 2024-091 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REEDLEY APPOINTING CHRISTOPHER ARRIAGA AS COUNCILMEMBER OF DISTRICT 5 TO SERVE A TWO-YEAR TERM Motion unanimously carried.

5. PRESENTATION TO OUTGOING MAYOR ANITA BETANCOURT AND COUNCIL MEMBER SUZANNE BYERS
Council and Staff thanked Ms. Betancourt and Ms. Byers for serving on the council and their many contributions to the community.

6. ADMINISTRATION OF OATH OF OFFICE TO COUNCIL MEMBERS, MATTHEW TUTTLE, MICHAEL

CRUTCHFIELD AND CHRISTOPHER ARRIAGA
A. OATH OF OFFICE TO BE ADMINISTERED BY CITY CLERK.

B. SEA TING OF COUNCIL MEMBERS
Matthew Tuttle, Michael Crutchfield and Christopher Arriaga received the Oath of Office, administered by City Clerk, Ruthie Greenwood.

7. CITY COUNCIL REORGANIZATION-CONFIRMATION OF MAYOR AND MAYOR PRO TEMPO RE PER RESOLUTION NO.2015-004
A. CONFIRMATION OF ACCEPTANCE TO POSITION OF MAYOR BY MATTHEW TUTTLE, DISTRICT 1
B. CONFIRMATION OF ACCEPTANCE TO POSITION OF MAYOR PRO TEMPORE BY MARY FAST, DISTRICT 2
Resolution No. 2015-004 established a policy and procedure for the selection of the Mayor and Mayor Pro Tempore.

Beginning December 2012, the office of the Mayor and Mayor Pro Tempore rotate and are filled according to the Council District number order every two years and only a confirmation of acceptance is needed for the Mayor and Mayor Pro-Tempore positions.

Matthew Tuttle accepted the position as Mayor.

Mary Fast accepted the position as Mayor Pro Tempore.

8. CONFIRMATION OF MAYOR AND MAYOR PRO TEMPORE'S APPOINTMENT TO FRESNO COUNCIL OF GOVERNMENTS (COG) POSITIONS PER RESOLUTION 2013-005
A. COG BOARD MEMBER
2 REEDLEY CITY COUNCIL MEETING - December 17, 2024
B. COG ALTERNATE BOARD MEMBER
City Manager stated a confirmation of acceptance by Mayor and Mayor Pro Tempore was needed for the appointment to the Fresno Council of Governments for a COG Board Member and COG Alternate Board Members.

Ms. Zieba stated traditionally the Mayor serves as the Board Member and the Mayor Pro-Tem serves as the Alternate Board Member. Ms. Zieba asked Mayor and Mayor Pro-Tem if they would be willing to serve.

Mayor Matthew Tuttle accepted primary board member position. Mayor Pro Tempore Mary Fast accepted the alternate board member position.

BREAK
7:58PM-8:20PM

PUBLIC COMMENT
Erik Valencia, President of Reedley Chamber of Commerce provided a brief update to council and staff.

Jennifer Acidera, Uriel Andrade, Erin Arroyo and Abel Arevalo with the California Health Collaborative thanked Council and Staff for supporting the California Health Collaborative.

Susan Lusk shared about the Wreaths for Reedley Veterans event.

CONSENT AGENDA (Item 9-18)
Council Member Fast requested to discuss item 11 prior to the vote. Community Services Director Sarah Reid answered questions regarding the item.

Council Member Friesen moved, Council Member Fast seconded to accept, approve and adopt all items listed under the CONSENT AGENDA.

9. APPROVAL OF MINUTES OF THE REGULAR COUNCIL MEETING OF NOVEMBER 12, 2024 - Approved

10. RECOMMENDATION OF REJECTION OF CLAIM - DA YID PENA -Approved

11. RATIFY THE AUTHORIZATION FOR CITY MANAGER TO EXECUTE ITEMS PERTAINING TO

REQUIREMENTS FOR THE REEDLEY MUNICIPAL AIRPORT FEDERAL AVIATION

ADMINISTRATION (FAA) CAPTIAL PROJECT FUNDING
A. AIRPORT CAPITAL IMPROVEMENT PROJECT (ACIP) FUNDING SUMMARY FOR FISCAL YEARS 2023-2030 AND ALL SUPPORTING DOCUMENTS
B. REEDLEY MUNICIPAL AIRPORT DISADVANTAGE BUSINESS ENTERPRISE (DBE) PROGRAM 49 CFR PART 26
-Approved

12. APPROVE AND AUTHORIZE THE CITY MANAGER TO EXECUTE AN AGREEMENT ON BEHALF OF THE CITY OF REEDLEY, BETWEEN THE NON-PROFIT ORGANIZATION "OUR RESCUE" TO SECURE A DONATION FOR PURCHASE OF FORENSIC INVESTIGATIVE SOFTWARE "DATA PILOT" - Approved

13. ADOPT ORDINANCE NO. 2024-008, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF REEDLEY REPEALING AND REPLACING IN ITS ENTIRETY CHAPTER 5 OF TITLE 4 PERTAINING TO SHOPPING CARTS- Approved
3 REEDLEY CITY COUNCIL MEETING - December 17, 2024

14. ADOPTION OF ORDINANCE 2024-011, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF REEDLEY AMENDING CHAPTER 6 OF TITLE 7 OF THE REEDLEY MUNICIPAL CODE CONCERNING REEDLEY AIRPORT-Approved

15. APPROVAL OF ITEMS PERTAINING TO ADMINISTERING THE ZERO-EMISSION LANDSCAPING EQUIPMENT (ZELE) VOUCHER PROGRAM:

A. ADOPT RESOLUTION NO. 2024-086 AUTHORIZING THE CITY MANAGER TO APPROVE,

SIGN AND SUBMIT APPLICATIONS AND ALL PERTAINING DOCUMENTS REQUIRED

BY THE SAN JOAQUIN VALLEY AIR POLLUTION CONTROL DISTRICT (SJV APCD) B. ADOPT RESOLUTION NO. 2024-094 AMENDING THE 2024-25 CITY OF REEDLEY ADOPTED BUDGET APPROPRIATING $1,500 IN THE AIRPORT ENTERPRISE FUND TO

COVER THE COSTS ASSOCIATED WITH A PUSH BEHIND ELECTRIC MOWER AND

EXTRA BATTERY
-Approved

16. ADOPT RESOLUTION 2024-090, ACCEPTING THE CONSTRUCTION IMPROVEMENTS FOR THE

REEDLEY OLSON A VE TRUNK LINE UPSIZING ALONG OLSON A VE TO WASTEWATER

TREATMENT PLANT & HEADWORKS IMPROVEMENT PROJECT, AND AUTHORIZE THE CITY

ENGINEER TO FILE A NOTICE OF COMPLETION WITH THE COUNTY OF FRESNO RECORDER'S OFFICE-Approved

17. CONSIDER THE FOLLOWING ITEMS (A) AND (B) FOR TRACT 6169:

A. ADOPT RESOLUTION NO. 2024-092, ACCEPTING THE PUBLIC IMPROVEMENTS CONTAINED IN PHASE 2 OF TRACT 6196 AND AUTHORIZE THE CITY ENGINEER TO

FILE A NOTICE OF COMPLETION WITH THE COUNTY OF FRESNO RECORDER'S OFFICE
B. ADOPT RESOLUTION NO. 2024-093, ACCEPTING THE PUBLIC IMPROVEMENTS CONTAINED IN PHASE 3 OF TRACT 6196 AND AUTHORIZE THE CITY ENGINEER TO

FILE A NOTICE OF COMPLETION WITH THE COUNTY OF FRESNO RECORDER'S OFFICE
-Approved

18. ADOPT RESOLUTION NO. 2024-095, DECLARING LISTED EQUIPMENT AS SURPLUS-Approved

ADMINISTRATIVE BUSINESS

19. APPROVE A RECOMMENDATION BY THE COMMUNITY SERVICES COMMISSION TO AWARD COMMUNITY RECREATION GRANTS IN THE AMOUNT OF $525 TO EACH OF THE FOUR(4)

QUALIFYING APPLICANTS
Ms. Reid explained the Community Recreation Grant Guidelines specify the funds are intended for local, non-profit organizations who support recreational activities in Reedley. The program was designed to lend financial support to those groups who serve the Reedley community. As a requirement of the grant guidelines a representative of the organization needs to be present at the Community Services Commission meeting where the grants are reviewed and recommended. The Community Services Commission reviewed the item at the October 24, 2024 meeting and a recommendation was made to award the four groups an even amount of the funding allocated for the program which would provide $525 to each group.

Council Member Friesen moved, Council Member Fast seconded to accept, and APPROVE A RECOMMENDATION

BY THE COMMUNITY SERVICES COMMISSION TO AWARD COMMUNITY RECREATION GRANTS IN THE AMOUNT OF $525 TO EACH OF THE FOUR(4) QUALIFYING APPLICANTS Motion unanimously carried.

WORKSHOP
4 REEDLEY CITY COUNCIL MEETING - December 17, 2024

20. UPDATE ON THE U.S. ENVIRONMENTAL PROTECTION AGENCY LEAD SERVICE LINE INVENTORY

MANDATE
Public Works Director, Russ Robertson discussed the State mandate.

RECEIVE INFORMATION & REPORTS
These items are formal transmittals of information to the Reedley City Council. They are not voted upon by the Reedley City Council. Members of the public who have questions on these items are suggested to call City staff members during regular business hours.

21. REEDLEY AIRPORT COMMISSION MINUTES OF REGULAR MEETING OF SEPTEMBER 19, 2024 2022 - Community Services Commission

22. REEDLEY COMMUNITY SERVICES COMMISSION MINUTES OF REGULAR MEETING OF OCTOBER 24, 2024 - Administrative Services

COUNCIL REPORTS

23. BRIEF REPORT BY COUNCIL MEMBERS ON CITY RELATED ACTIVITIES AS AUTHORIZED BY THE

BROWN ACT AND REQUESTS FOR FUTURE AGENDA ITEMS
Council Member Friesen:
• Discussed the Fire Chiefs Retirement
• Mentioned the City Thanksgiving luncheon
Council Member Fast:
• Attended the Mid Valley Disposal lunch
• Mentioned the Senior luncheon she also attended
• Shared about the Tree lighting ceremony
• Attended the ribbon cutting ceremony at Willie's Cafe • Attended a Council of Governments meeting and provided a brief update • Discussed the Reedley College open house she attended • Attended the Thanksgiving luncheon
Council Member Arriaga:
• Attended an event at Jefferson School
Mayor Tuttle:
• Attended the ribbon cutting ceremony for Reedley College Performing Arts building • Also attended the ribbon cutting ceremony at Willie's Cafe • Discussed the military banner ceremony he attended
• Attended the parade
• Mentioned the tour he had at Guardian Village

STAFF REPORTS

24. UPDATES AND/OR REPORTS BY CITY MANAGER AND/OR STAFF MEMBERS.

City Manager, Nicole Zieba:
• Provided and update regarding 2025 council meetings
• Discussed a Kings River East Groundwater Sustainability Agency meeting she attended • Mentioned the various committees that Council Members participate. Item will be discussed at January's meeting
5 REEDLEY CITY COUNCIL MEETING - December 17, 2024

ADJOURNMENT
Mayor Tuttle adjourned the regular meeting at 9:03 p.m.

ATTEST:

Ruthie Greenwood, City Clerk Mayor Matthew Tuttle
6 DATE: January 14, 2025

REEDLEY CITY COUNCIL
1:8] Consent
D Regular Item
D Workshop
D ClosedSession
D Public Hearing
ITEM NO: 4
TITLE:

SUBMITTED:

APPROVAL OF EXPENSE REIMBURSEMENT FOR COUNCILMEMBER FAST Paul A. Melikian, Assistant City Manager~
APPROVED: Nicole R. Zieba, City Manager ~

RECOMMENDATION
Request the City Council approve a mileage expense reimbursement request from Councilmember Fast for miles driven for official City business.

EXECUTIVE SUMMARY
A mileage reimbursement was submitted on January 8, 2025, for miles driven for official City business.

Upon review, several of the dates fall outside of the 30-calendar day submission requirement as set forth in Section 5 of the Expense Reimbursement and Travel/Conference Policy for Elected and Appointed Legislative Body Officials that was adopted in December 2018. The dates range from November 21, 2024 to December 13, 2024. Out of the 184 miles driven for City business during this period, 58 miles fall outside of the 30-day requirement, representing $38.86 at the 2024 IRS mileage rate of $0.67 per mile.

Section 5 of the policy states: "Officials must submit their expense reports within thirty (30) calendar days of an expense being incurred, accompanied by receipts documenting each expense. Restaurant receipts, in addition to any credit card receipts, are also part of the necessary documentation. Any expenses submitted after 30 days of being incurred will be required to be approved by a majority of the City Council at a regularly scheduled Council meeting. Expenses not approved by the majority of Council shall be borne by the official who incurred the expense. "

FISCAL IMPACT
No new appropriations are needed for this reimbursement as mileage reimbursements for elected officials are included in the annual City budget.

ATTACHMENT
City of Reedley Councilmember Mileage Log dated January 8, 2025 City of Reedley Mileage Log
Employee: MARY FAST -n~E?~ Date:1.08.2025 Month: Nov, Dec, 2024 Date Destination Purpose of Trip Total Miles

11.21.2024 Fresno Council of Govt Fresno FCOG board meeting 58

12.13.2024 Harris Ranch Coalinga Mid Valley Disposal Lunch and training 12-6 TOTAL MILES 184
Department Head Approval

REEDLEY CITY COUNCIL
DATE: January 14, 2025
1:8J Consent
D Regular Item
D Workshop
D Closed Session
D Public Hearing
ITEM NO: 6 ----
TITLE: RATIFICATION OF A SOFTWARE SERVICES AGREEMENT WITH IWORQ SYSTEMS, INC. FOR AN ONLINE CITIZEN ENGAGEMENT & REQUEST

PLATFORM
SUBMITTED:

APPROVED:

Paul A. Melikian, Assistant City Manager ~
Nicole R. Zieba, City Manager ~

RECOMMENDATION
Approve and ratify a three-year Services Agreement with iWorQ Systems, Inc. (iWorQ) for a Citizen Engagement & Request platform to allow Reedley residents, business owners, and contractors a convenient way to ask questions, request information, or report issues to city staff. The new platform is expected to be operational by March and will be widely communicated to the public.

BACKGROUND
The City continually looks for ways to receive concerns, complaints and information from the public.

Many public agencies have gone to an online service request system that allows people to ask questions and report specific issues, even offering the capability for a resident to drop a pin on a map and/or upload a picture from their smartphone. These systems allow the agency to track the requests through to completion and communicate status to the requester. The link to submit requests is well advertised on the agency website, social media feeds, and newsletters.

The City has worked with iWorQ software since 2019, with departments currently using the iWorQ software platform to track and manage activities such as: encroachment permits, building permits, plan checks, automated solar permitting, code enforcement matters, and public works and facilities work orders. iWorQ's Citizen Engagement & Request software would fully integrate with the City's existing use of the system to create and track work orders. For example, if a resident observes a pothole in the street, they can take a picture of it, open the link and quickly report it. Once received , staff will see the request and can convert the issue to a work order for maintenance staff to address.

FISCAL IMPACT
The annual cost of $9,000 and one-time implementation fee of $500 will be paid proportionately from multiple funding sources that the city provides services from . Supporting appropriations for this service will be included on the budget amendment that accompanies the mid-year budget review in January 2025. Ratification is requested of the attached services agreement due to the special pricing the city received on the software expired on December 31 , 2024.

ATTACHMENTS
iWorQ Software Services Agreement
www.iworq.com
IWORQ SERVICE{S) AGREEMENT
For iWorQ application{s) and service(s)
·w , , 1 or~_i
Reedley, CA hereafter known as ("Customer"), enters into THIS SERVICE(S} AGREEMENT ("Agreement") with iWorQ Systems Inc. ("iWorQ") with its principal place of business 1125 West 400 North, Suite 102, Logan, Utah 84321.

1. SOFTWARE AS A SERVICE (SaaS) TERMS OF ACCESS:
iWorQ grants Customer a non-exclusive, non-transferable limited access to use iWorQ service(s}, application(s) on iWorQ's authorize website for the fee(s) and terms listed in Appendix A. This agreement will govern all application(s) and service(s) listed in the Appendix A.

2. CUSTOMER RESPONSIBILITY:

Customer acknowledges that they are receiving only a limited subscription to use the application(s), service(s}, and related documentation, if any, and shall obtain no titles, ownership nor any rights in or to the application(s), service(s}, and related documentation, all of which title and rights shall remain with iWorQ. Customer shall not permit any user to reproduce, copy, or reverse engineer any of the application(s), service(s) and related documentation. iWorQ is not responsible for the content entered into iWorQ's database or uploaded as a document or image.

3. TRAINING AND IMPLEMENTATION:

Customer agrees to provide the time, resources, and personnel to implement iWorQ's service(s) and application(s). iWorQ will assign a senior account manager and an account management team to implement service(s) and application(s). Typical implementation will take less than 60 days. iWorQ account managers will call twice per week, provide remote training once per week, and send weekly summary emails to the customer implementation team. iWorQ can provide project management and implementation document upon request.
iWorQ will do ONE import of the Customer's data. This import consists of importing data, sent by the Customer, in an electronic relational database format.

Customer must have clear ownership of all forms, letters, inspections, checklists, and data sent to iWorQ.
iWorQ Systems, P.O. Box 3784, Logan, Utah, 84323 !1
www.iworq.com iWor~~-~

4. CUSTOMER DATA:

Customer data will be stored on AWS GovCloud. iWorQ will use commercially reasonable efforts to backup, store and manage Customer data. iWorQ does backups twice per week and offsite backups twice per week.

Customer can run reports and export data from iWorQ application{s) at any time.

Customer can pay iWorQ for additional data management service(s), onsite backups, application{s) and other service{s).

Data upload and storage is provided to every Customer. This includes uploading files up to 25MB and 100GB of managed data storage on AWS GovCloud. Additional upload file sizes and managed data storage sizes can be provided based on the application{s) and service(s) listed in Appendix A.

Customer can upload and store images with personal information like driver's license, and more.

This Data can be used by the customer to complete the permitting, licensing, or code enforcement processes. Customer understands that the data must be uploaded and stored in the Sensitive Data Upload section of the iWorQ software for access and security purposes. iWorQ is not responsible: {1) For the content entered into iWorQ's database, {2) For images or documents scanned locally and uploaded by the iWorQ users, {3) For documents or images uploaded by citizens over the web, and (4) For backup data sent to the Customer by iWorQ.

5. CUSTOMER SUPPORT:

Customer support and training are FREE and available Monday-Friday, from 6:00 A.M. to 5:00 P.M.

MST, for any authorized user with a login. iWorQ provides unlimited remote Customer training (through webinars), phone support, help files, and documentation. Basic support request is typically handled the same day. iWorQ provides "Service NOT Software".

6. BILLING:
iWorQ will invoice Customer on an annual basis. iWorQ will send invoice by mail and by email to the address(s) listed in Appendix A. Terms of the invoice are net 30 days from the date of the invoice.

Any billing changes will require that a new Service(s) Agreement be signed by Customer.

Any additional costs imposed by the Customer including business licenses, fees, or taxes will be added to the Customer's invoice yearly. Support and services fees may increase in subsequent years but will increase no more than 5% per year.

Customer pricing is based on a 3 Year Term and reflects a discounted annual price. Changes to the Term or the Termination Policy {Section 7. Termination:), will affect the annual pricing and could double your annual cost. Customer reserves the right to pay the 3 Year Term upfront to secure discounted annual pricing.
iWorQ Systems, P.O. Box 3784, Logan, Utah, 843 23
www.iworq .com

7. TERMINATION:

Prior to the expiration of the initial 3-YEAR TERM (the "Initial Term"),. either party may terminate this Agreement, by providing the other party with a Sixty {60} days' written notice prior to the effective date of the expiration. Should Customer terminate any part of the application(s) and or service(s) the remaining balance will immediately become due. Should Customer terminate any part of the application(s) and or service(s) a new Service(s) Agreement will need to be signed. Upon expiration of the Initial Term, this Agreement shall automatically renew for successive one (1) year terms unless either party provide notice of termination or non-renewal no less that sixty {60} days prior to expiration of the then-current term.

Upon termination of this Agreement, iWorQ will discontinue all application(s) and or service(s); iWorQ will provide customer with an electronic copy of all of Customer's data, if requested by the Customer (within 3-5 business days).

During the term of the Agreement, the Customer may request a copy of all of Customer's data, which shall be provided to Customer for a cost of no more than $2500 per copy. Please note, if Customer is not in compliance with the material terms and conditions of this Agreement, iWorQ will not be required to provide Customer with the data.

8. ACCEPTABLE USE:

Customer represents and warrants that the application(s) and service(s) will only be used for lawful purposes, in a manner allowed by law, and in accordance with reasonable operating rules, and policies, terms, and procedures. iWorQ may restrict access to users upon misuse of application(s) and service(s).

9. MISCELLANEOUS PROVISIONS:

This Agreement will be governed by and construed in accordance with the laws of the State of Utah.

Any legal action or proceeding related to this Agreement must be brought and determined in the State of Utah and may not be brought or determined in any other forum or Jurisdiction.

Customer recognizes that iWorQ Systems is a software company located in Utah. Any changes to this section, including changes to the Venue or Forum, will be subject to an increase in their annual pricing.
iWorQ Systems, P.O. Box 3784, Logan, Utah, 84323
www.iworq.com ·w f, 1 orl.'

10. CUSTOMER IMPLEMENTATION INFORMATION:
. . Paul Melikian Assistant City Manager Primary Implementation Contact ____________ Title (559) 637-4200 ext 300 . [email protected] Office Phone Cell Email . Ruthie Greenwood c·t Cl k Secondary Implementation Contact ___________ Title i Y er (559) 637-4200 ext 212 [email protected]
Office Phone Cell Email

11. CUSTOMER BILLING INFORMATION:

B
.
11 . C Accounts Payable 1 ing ontact ---------- (559)637-4200 ext 512 Office Phone Cell
Title
[email protected] Ema1
PO# (if required) Tax Exempt ID#

12. ACCEPTANCE:

Nicole R. Zieba
Printed Name
Title City Manager
Office Number (559) 637-4200 ext. 212
Cell Number
iWorQ Systems, P.O. Box 3784, Logan, Utah, 84323
www.iworq .com
iWorQ Service(s) AgreeD1ent

APPENDIX A
iWorQ Systems, P.O. Box 3784, Logan, Utah, 84323
iWorQ Cost Pronosal
Reedley, CA Population- 26196
845 G Street Prepared by: Matthew Hansen
Reedley, CA 93654
Annual Subscription Fees
AP-Iilication(~) and Service(~). Package Price Billing
Citizen Engagement $10,500.00 $9,000.00 Annual
Package includes:
*Citizen Engagement
- Drive citizen satisfaction, streamline communication and reduce overhead costs.
-Allow citizens & employees to submit problems, including photos and locations, links to agency website, and seamlessly access those items in the iWorQ software through the Online Portal.

Subscription Fee Total (This amount will be invoiced each year) $9,000.00 One-Time Setup, GIS integration, and Data Conversion Fees Service(~). Full Price Cost Package Price Billing
One-Time Setup Total (This amount will be $6,000.00 $500.00 Year One added year 1)

NOTES SERVICE(S) DESCRIPTION
I. Invoice for the (Annual Subscription Fee Total+ One-Time Total) will be sent out 2 weeks after signature and Effective Date
II. This subscription Fee and Agreement have been provided at the Customer's request and is valid for 25 days
III. This cost proposal cannot be disclosed or used to compete with other companies.

IV. This agreement is considered valid if signed and returned on or before December 31 , 2024.

DATE:

TITLE:

SUBMITTED:

APPROVED:

REEDLEY CITY COUNCIL
January 14, 2025
~ Consent
D Regular Item
D Workshop
D Closed Session
D Public Hearing
ITEM NO: (o ----

APPROVAL FOR TRAVEL AND CONFERENCE RELATED EXPENSES FOR

COUNCIL MEMBER ARRIAGA AND COUNCIL MEMBER CRUTCHFIELD TO

ATTEND THE LEAGUE OF CALIFORNIA CITIES COUNCIL MEMBERS ACADEMY Ruthie Greenwood, City Clerk ~ /
Nicole R. Zieba, City Manager v/

RECOMMENDATION
Request the City Council to approve the travel expenses for Council Member Arriaga and Council Member Crutchfield to attend the League of California Cities Council Members Academy in January 2025.

EXECUTIVE SUMMARY
Council Member Arriaga and Council Member Crutchfield would like to attend the 2025 League of California Cities Council Members Academy. According to the City's Expense Reimbursement and Travel/Conference Policy for Legislative Officials, Section 8 of the policy states: "Travel Authorization Process: Conference and overnight travel by a Legislative official shall be pre-approved by having the item placed on the City Council Consent Calendar. If time does not permit pre-approval, then the Council shall be asked to ratify the approval at a subsequent Council meeting ... "

FISCAL IMPACT
No new appropriations are needed for this reimbursement as limited conference attendance for elected officials is included in the annual City budget.

REEDLEY CITY COUNCIL
DATE: January 14, 2025
[8J Consent
D Regular Item
D Workshop
D Closed Session
D Public Hearing
ITEM NO: ____. '1.....___
TITLE: ADOPT RESOLUTION 2025-004 OF THE CITY COUNCIL OF THE CITY OF REEDLEY

ADOPTING THE ANNUAL CITY STATEMENT OF INVESTMENT POLICY SUBMITTED: Paul A. Melikian, Assistant City Manager ~
APPROVED: Nicole R. Zieba, City Manager

RECOMMENDATION
That the City Council Adopt Resolution No. 2025-004 approving the annual Statement of Investment Policy, last reviewed and adopted by the City Council on January 23, 2024.

BACKGROUND
Government Code Section 53646(a) requires that a public entity's investment policy be reviewed annually by the governing body or an investment committee. The City's present Investment Policy, Attachment "A", was last reviewed in January 2024. An investment policy should identify the parameters of the investment function with the primary objectives being safety, liquidity and yield, in that order. These features are satisfied by the City's present policy, including a section on periodic reporting of portfolio performance. After reviewing the existing policy, staff has no recommended changes. The last revision was made in 2023, when the City Council approved the addition of "Shares of beneficial interest issued by a Joint Powers Authority" and the California Asset Management Program (CAMP) as permissible investment options for idle City funds. This investment vehicle has proved to be tremendously successful to take advantage of the favorable interest rate environment.

Portfolio Monitoring & Compliance
The Government Finance Officers Association (GFOA) recommends that an agency's investment policy explicitly require periodic reporting. Consistent with GFOA best practices, the Administrative Services Department will continue to prepare quarterly summary investment reports within 45 days after the close of each quarter, with an Annual Investment Report prepared and filed within 60 days of year end. Quarterly and annual reports have been, and will continue to be, presented to City Council as a 'Receive, Review and File' item. The City's Assistant City Manager position is identified in the attached resolution as authorized to invest funds and otherwise do all things necessary to implement the Statement of Investment Policy.

All financial investment instruments are constantly monitored and assessed for safety, liquidity and yield . The City's idle funds have historically been in principal safe investments that protect its pooled cash, such as money market accounts, rolling Certificates of Deposit through Multi-Bank Securities in various FDIC insured accounts, and the aforementioned California Asset Management Program. Adoption of this annual policy will allow staff to continue to ensure continued compliance, safety of principal, sufficient portfolio liquidity, and an acceptable yield for the City's idle cash balances.

ATTACHMENTS
Resolution 2025-004; Exhibit "A" - Statement of Investment Policy RESOLUTION NO 2025-004

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REEDLEY

ADOPTING THE ANNUAL CITY OF REEDLEY STATEMENT OF

INVESTMENT POLICY
WHEREAS, the authority governing investments for California local agencies is set forth in the California Government Code, Sections 53601 et. seq.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Reedley as follows:

1. Pursuant to Government Code Sections 53601 et. seq., the City of Reedley City Council hereby authorizes and directs the City Treasurer/Finance Officer (Assistant City Manager) to invest funds not required for the immediate necessities of the City in accordance with the attached Statement of Investment Policy which is hereby adopted and incorporated by reference as Exhibit "A".

2. The City Treasurer/Finance Officer (Assistant City Manager) is hereby directed and authorized to do all things necessary to implement said Statement of Investment Policy.

This foregoing resolution was duly passed, approved and adopted by the City Council of the City of Reedley this 14th day of January, 2025, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Matthew Tuttle, Mayor
ATTEST:

Ruthie Greenwood, City Clerk
Attachment

1. Exhibit A - City of Reedley Statement of Investment Policy Exhibit A

CITY OF REEDLEY

STATEMENT OF INVESTMENT POLICY

PURPOSE
This Statement is intended to provide guidelines for the prudent investment of the City's temporary idle cash, and outline the policies for maximizing the efficiency of the City's cash management system.

The ultimate goal is to enhance the economic status of the City while protecting its pooled cash.

OBJECTIVE
The City's cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible. The City attempts to obtain the highest yield obtainable as long as the investments meet the criteria established for safety and liquidity.

POLICY
The City of Reedley operates its temporary pooled idle cash investments under the Uniform Prudent Investor Act (Act) as generally described in California Probate Code section 16045, et. seq. The Act states, in essence, that "in investing ... property for the benefit of another, a trustee shall exercise the judgment and care, under the circumstances then prevailing, which men of prudence, discretion and intelligence exercise in the management of their own affairs ... ". This affords the City a broad spectrum of investment opportunities as long as the investment is deemed prudent and is allowable under current legislation of the State of California. Government Code (Section 53601) restricts the City from purchasing investment securities with a maturity length greater than five years unless prior legislative approval is given.

Investments may be made in the following media and as specifically outlined under Government Code Section 53601:
• U.S. Treasury issues
• Federal Agency issues
• Supranational Securities as identified & defined by AB 1933 (effective January 1, 2015) • Bonds, Notes
• Commercial Paper
• Bankers Acceptances
• Certificates of Deposits
• Repurchase Agreements and Reverse Repurchase Agreements • Local Agency Invest Fund Demand Deposits (State Pool) • Passbook Savings Account Demand Deposits
• Central San Joaquin Valley Risk Management Pooled Investment Fund • Shares of beneficial interest issued by a Joint Powers Authority • California Asset Management Program
Criteria for selecting investments and the order of priority are:
1 .

2. Safety. The safety and risk associated with an investment refers to the potential loss of principal, interest or a combination of these amounts. The City only operates in those investments that are considered very safe.

Liquidity. This refers to the ability to "cash in" at any moment in time with a minimal chance of losing some portion of principal or interest. Liquidity is an important investment quality especially when the need for unexpected funds occurs occasionally.

3. Yield. Yield is the potential dollar earnings an investment can provide, and sometimes is described as the rate of return.

Safekeeping. Securities purchased from brokers/dealers shall be held in third party safekeeping by the trust department of the local agency's bank or other designated third-party trust, in local agency's name and control, whenever possible.

Investment Objective. The cash management system of the City of Reedley is designed to accurately monitor and forecast expenditures and revenues, thus insuring the investment of monies to the fullest extent possible. Attempts to obtain highest interest yields possible as long as investments meet the criteria required for safety and liquidity. The City strives to maintain the level of investment of all idle funds as near 100% as possible, through daily and projected cash flow determinations. Idle cash management and investment transactions are the responsibility of the City Treasurer/Finance Officer (Assistant City Manager).

Prudence. As it pertains to its pooled cash investments, the City adheres to the guidance provided by the "prudent investor standard," as set forth in Government Code section 53600.3, which specifically addresses public investing, as follows:
"Except as provided in subdivision (a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.

Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law".

The basic premise underlying the City's investment philosophy is, and will continue to be, to insure that money is always safe and available when needed.

Public Trust. All participants in the investment process shall act as custodians of the public trust.

Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worthy of the public trust. In a diversified portfolio it must be recognized that occasional measured losses are inevitable, and must be considered within the context of the overall portfolio investment return, provided that adequate diversification has been implemented.

Ethics and Conflicts of Interest. Employees and officials involved in the investment process shall refrain from personal business activities that create a conflict of interest or the appearance of a conflict with proper execution of the investment program, or impairs their ability to make impartial investment decisions.

Reporting. Consistent with industry best practices, the City Treasurer/Finance Officer (Assistant City Manager) will prepare quarterly summary investment reports within 45 days after the close of each quarter, with an Annual Investment Report prepared and filed within 60 days of year end. Quarterly and annual reports will be presented to City Council as a Receive, Review and File item.

DATE:

TITLE:

January 14, 2025

REEDLEY CITY COUNCIL
D Consent
D Regular Item
D Workshop
D Closed Session
C8:1 Public Hearing
ITEM NO: <2:, ---

PRESENTATION ON THE STATUS OF VACANCIES AND RECRUITMENT EFFORTS AS CALLED FOR BY ASSEMBLY BILL 2561
APPROVED:

City
Nicole
Manager
R. Zieba .,
~
• ~
There are no written materials for this item. In accordance with Assembly Bill 2561, signed into law in 2024, a public presentation will be given to the public and City Council on the status of City staff vacancies and recruitment efforts.

DATE:

TITLE:

January 14, 2025

REEDLEY CITY COUNCIL
Consent
Regular Item
Workshop
D Closed Session
D Public Hearing
ITEM NO: 9
ADOPT RESOLUTION 2025-005 A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF REEDLEY NOMINATING A CITY OF REEDLEY

COUNCILMEMBER AS THE CITY REPRESENTATIVE, AND A DINUBA

COUNCILMEMBER AS THE ALTERNATE CITY REPRESENTATIVE, ON THE

BOARD OF THE KINGS RIVER EAST GROUNDWATER SERVICES
AGENCY FOR THE FOUR-YEAR TERM BEGINNING FEBRUARY 1, 2025 APPROVED: Nicole R. Zieba 1A ~
City Manager vv 0

RECOMMENDATION
That the City Council adopt Resolution No. 2025-005, a Resolution of the City Council nominating and accepting the role of City Representative on the Board of the Kings River East Groundwater Sustainability Agency (GSA), and nominating the City of Dinuba as the Alternate City Representative on the Board of the GSA.

BACKGROUND
The Sustainable Groundwater Act (SGMA) was signed into law by Governor Brown. In the following years, each groundwater basin within the State of California was required to form Groundwater Sustainability Agencies (GSAs) and establish Groundwater Sustainability Plans (GSPs) that address issues of declining groundwater, degradation of groundwater quality, land subsidence due to over pumping of groundwater aquifers, saltwater intrusion into groundwater aquifers, and a host of other issues impacting groundwater quantity and quality.

Under the guidance and administration of Alta Irrigation District (AID), the City of Reedley and 16 other entities entered into a partnership through formal Memorandum of Understanding, and then subsequent legislation, SB 37, to form the Kings River East Groundwater Sustainability Agency. The GSA Bylaws, as well as SB 37, call for the three cities within the GSA, Reedley, Dinuba, and Orange Cove, to select one Representative and one Alternate to serve on the Board of the GSA. Because Orange Cove lies within the GSA boundary, it is included in the GSA. However, it is important to note that Orange Cove

currently does not use or pump any groundwater from the basin. That city's water supply is from the Friant-Kern Canal. As such, over the course of the past years, the cities of Dinuba and Reedley have shared the roles of City Representative and Alternate because both of these cities do pump and use groundwater from the basin.

The four-year terms of City Representative and Alternate on the Board are expiring at the end of January, 2025. The attached Resolution calls for Reedley to retain the seat as City Representative and Dinuba as Alternate for the 2025-2029 term.

FISCAL IMPACT
There is no fiscal impact associated with this item.

ATTACHMENTS
Resolution No. 2025-005

RESOLUTION NO. 2025-005

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REEDLEY

NOMINATING A CITY OF REEDLEY COUNCIL MEMBER AS THE CITY

REPRESENTATIVE, AND A DINUBA COUNCIL MEMBER AS THE

ALTERNATE CITY REPRESENTATIVE, ON THE BOARD OF THE KINGS RIVER EAST GROUNDWATER SERVICES AGENCY FOR THE FOURYEAR TERM BEGINNING FEBRUARY, 2025.

WHEREAS, the State's Sustainable Groundwater Management Act is now in effect and calls for each groundwater basin to have a "Groundwater Services Agency" (GSA) formed to manage the groundwater resources in the basin; and
WHEREAS, the City of Reedley has participated in the formation of the Kings River East GSA with Alta Irrigation District, the cities of Dinuba and Orange Cove, and other agencies; and WHEREAS, all of the GSA partners pursued a legislatively created GSA through SB 37 (Vidak) which was signed by the Governor into law; and
WHEREAS, the GSA legislation required the Board of the GSA to be seated on or before January 31, 2017; and
WHEREAS, the GSA Bylaws call for a City Representative and Alternate chosen from among the three participating cities of Reedley, Dinuba, and Orange Cove.

NOW, THEREFORE, BE IT RESOLVED that the City of Reedley City Council using their independent judgement approves this resolution based on the following:

1. The above recitals are true and correct.

2. The City Council of the City of Reedley approves and accepts the responsibility to serve as the Board Member representing the three participating cities to be seated for the term that begins on or before January 31, 2025. The Council Member to serve on the GSA will be selected at a public meeting of the Council.

3. The City Council of the City of Reedley supports the nomination of a Council Member from the City of Dinuba to serve as the Alternate City Representative for the term that begins on or before January 31, 2025. The Council Member to serve as the Alternate on the GSA will be selected at a public meeting of the Council.

4. This resolution is effective immediately upon adoption.

This foregoing resolution is hereby approved and adopted at a regular meeting of the City Council of the City if Reedley held on the 14th day of January, 2025, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Matthew Tuttle, Mayor
ATTEST:

Ruthie Greenwood, City Clerk
DATE: January 14, 2025

REEDLEY CITY COUNCIL
D Consent
IZ! Regular Item
D Workshop
D Closed Session
D Public Hearing
ITEM NO: ----
TITLE: CONFIRM APPOINTMENTS OF COUNCIL MEMBERS AND STAFF TO BOARDS AND COMMISSIONS FOR THE 2025 AND 2026 CALENDAR YEARS
APPROVED: Nicole R. Zieba , /
City Manager ry

RECOMMENDATION
That the City Council discuss and confirm appointments to Boards and Commissions upon which Council members sit, with the exclusion of the Fresno County Council of Governments (COG), Fresno County Rural Transit Agency (FCRTA), and Regional Transportation Mitigation Fee Agency (RTMF) which all have the Mayor serve as member, by governing agency bylaws. Confirmation of appointment is also recommended for the primary and alternate council member to serve on the Central Valley Public Transportation Authority (CVPT A aka CVTC). Confirmation of appointment is also recommended for an alternate for the Upper Kings River Water Authority and both a primary member and an alternate for the San Joaquin Valley Special City Selection Committee. A primary member is also needed for the Southeast Regional Solid Waste Commission.

BACKGROUND
The City of Reedley's elected officials serve on a variety of additional Boards and Commissions. The Council bi-annually determines which of its members will serve on each Board. These Boards and Commissions include: Central Valley Public Transportation Authority, Five Cities Economic Development Joint Powers Authority, San Joaquin Valley Special City Selection Committee, Southeast Regional Solid Waste Commission, Airport Land Use Commission, Upper Kings Basin Integrated Regional Water Management Authority (Kings Basin Water Authority), and Kings River East Groundwater Sustainability Agency (GSA). Council appointments to these Boards needs to be confirmed for the 2025 and 2026 sessions.

In addition to these Boards and Commissions, a staff member is appointed by the City Council to serve on the Central Valley Public Transportation Authority and the Kings Basin Water Authority. Russ Robertson, Public Works Director, has served as the expert staff to these two Boards. It is recommended that he be confirmed as staff appointee for these two Boards for 2025 and 2026.

FISCAL IMPACT:

There is no fiscal impact associated with this item.

ATTACHMENTS
List of Boards and Commissions for 2023/2024

2023-2024

COMMITTEE AND BOARD INFORMATION
Central Valley Public Transportation Authority (CVPTAJ
The CVPTA is a joint powers authority between the City and the Kings Canyon Unified School District.

The City has two appointed representatives to the CVPTA Board of Directors. Meetings are held at the KCUSD Conference Room at 11 :30 a.m., quarterly on the last Thursday of the month. Additional meeting are called as needed.

Russ Robertson, Public Works Director - Board Member
Suzanne Byers, Primary Board Member appointed 1/10/23
Anita Betancourt, Alternate Board Member - appointed 1/10/23 Five Cities Economic Development Authority
Membership is representatives from 6 cities, Fresno County and EDC. Meetings are hosted by different cities. Meetings are quarterly beginning July.

Scott Friesen, Board Member appointed 1/10/23
Matthew Tuttle - Alternate - appointed 1/10/23
San Joaquin Valley Special City Selection Committee
On September 30, 2008, Governor Schwarzenegger signed SB 1548 which creates Section 40600.5 of the Health and Safety Code establishing a valley-wide Special City Selection Committee which is charged with making appointments of city representatives to the San Joaquin Valley Air Pollution Control District's Governing Board. The Special City Selection Committee consists of one member selected by majority vote of the council of each city located within the District. Meetings are held at 1990 E Gettysburg, Fresno at 6:00 p.m. and are called as needed.

Suzanne Byers- Committee Member appointed 1/10/23
Anita Betancourt - Alternate - appointed 1/10/23
Southeast Regional Solid Waste Commission
The Fresno County Public Works and Planning, Resource Division is responsible for developing, implementing and administering a range of County-wide solid waste management programs and oversees the Southeast Regional Solid Waste Commission. Although meetings are scheduled monthly, they are on an as needed basis which has been twice a year.

Suzanne Byers - Board Member Appointed 1/10/23
Scott Friesen, Alternate Appointed 1/10/23
Upper Kings River Water Authority
The Kings Basin Water Authority is governed by a Board of Directors, which is composed of one representative from each of the 17 member agencies. Directors and alternates are appointed by each member's governing board . The Board of Directors meets quarterly. All meetings are held at Fresno Co. Farm Bureau
Fast - Board Member - appointed 12/13/11
Betancourt - Alternated appointed 12/13/11
Russ Robertson, Public Works Director appointed as 2nd Alternate Board Member Kings River East Groundwater Services Agency (GSA)
The Kings River East Groundwater Services Agency (GSA) was formed through legislation under the guidance of Alta Irrigation District. Council Member Fast was appointed to serve the first term , as the Board Member Representative, on behalf of the three participating cities, Orange Cove, Dinuba and Reedley. Dinuba has the Alternate Board Member. All meetings are held at the Alta Irrigation District Office in Dinuba.

Matthew Tuttle Appointed 1/10/23---City of Dinuba is Alternate DATE: January 14, 2025

REEDLEY CITY COUNCIL
D Consent
D Regular Item
D Workshop
D ClosedSession
D Public Hearing
[gj Receive/Review
ITEM NO: ----
TITLE: RECEIVE, REVIEW, AND FILE THE QUARTERLY INVESTMENT REPORT FOR SECOND QUARTER ENDING DECEMBER 31, 2024 FOR FISCAL YEAR 2024-25 SUBMITTED: Paul A. Melikian, Assistant City Manager
APPROVED: Nicole R. Zieba, City Manager

RECOMMENDATION
That the City Council receive, review, and file the Quarterly Investment Report for 2nd Quarter Fiscal Year 2024-25, ending December 31, 2024, as required by the City's Investment Policy last adopted on January 23, 2024. No action is required other than to receive, review, and file the report.

EXECUTIVE SUMMARY
Portfolio earnings, net of fees, for 2nd quarter ending December 31, 2024 total $860,869. Prior 2nd quarter net portfolio earnings for the same 12-month period one year ago were $872,922, the result of a stable cash position and improving interest earnings. This year's Adopted Budget assumed $644,925 in interest earnings for the entire fiscal year; therefore, actual earnings are about 133% of budget after the second quarter.

Interest earnings are expected to be strong in the interim; however, the City has a large number of capital projects underway and in the planning process, therefore, the treasury pool amount and corresponding interest earnings will be reduced over time. In addition, on December 18th the Federal Reserve ('Fed') announced its third consecutive interest rate cut of 2024, reducing its benchmark rate by 0.25 percentage points amid cooling, but persistent, inflation. The Fed lowered the federal funds rate - the interest rate banks charge each other for short-term loans - to a range of 4.25% to 4.5%, down from its previous target range of 4.5% to 4.75%. The Fed has now trimmed rates by 1 percentage point since September; however, the central bank also projected that it will loosen rates less in 2025 than previously expected. As a result, staff expects to continue earning strong interest earnings on idle public funds , though not quite at the same level as last year's robust performance.

The attached investment/pooled cash report shows additional detail for cash balances by City fund . The 'treasury pool' for the City, representing the cumulative balance of all funds, totals $31,045,234 as of December 31, 2024, similar to cash on hand of $30,955,198 from last quarter ending September 30, 2024.

The treasury pool from the same 12-month period one year ago was $29,152,120 as of December 31, 2023. The cash balances in individual City funds are at a point in time only, and do not reflect pending receivable or payable amounts.

BACKGROUND
All financial investment instruments are constantly monitored and assessed for safety, liquidity, and yield , in that order. It is important to note that the City's principal value of these investments is always secure, and the values that are being reported are the market values at a specific point in time. All investments in the portfolio are compliant with the City's current Investment Policy, and staff does not anticipate any issues regarding the City's ability to meet expenditure requirements for the next six months. (Government Code section 53646)
On January 23, 2024 the City Council approved the annual statement of investment policy. The policy includes a self-imposed, 'best practice' reporting requirement to implement a Government Finance Officers Association (GFOA) recommendation that an agency's investment policy explicitly require periodic reporting. The attached Pooled Cash Report for the end of 2nd quarter fiscal year 2024-25 shows cash balances/market value and interest earnings for every cash account and investment vehicle as of December 31, 2024. It is important to note that the pooled cash report also includes restricted funds such as American Rescue Plan Act funds, deposits in trust, funds held for groundwater treatment, and RDA Successor Agency funds. Full account statements for all accounts are on file with the Administrative Services Department and available for inspection at any time.

Cash balances are pooled for investment and banking purposes, as it is not practical to have separate investment accounts for each City fund. Interest earnings are apportioned to each City fund based upon the percentage that a particular fund balance makes up of the total. For instance, if the City's General Fund balance was 10% of the total cash balances of the City, it would be credited with 10% of the investment interest earnings for the period.

ATTACHMENTS
2nd Quarter Fiscal Year 2024-25 Investment/Pooled Cash Report

POOLED CASH REPORT
December 2024

MECHANICS BANK CHECKING ACCOUNTS
CAMP - CALIFONIA ASSET MANAGEMENT PROGRAM *
MBS - MUL Tl BANK SECURITIES PORTFOLIO

FIVE STAR BANK MONEY MARKET

FIVE STAR BANK PUBLIC DONATION CHECKING ACCOUNT (DEBIT COSTCO)

ACTUAL CASH

BALANCE OR

PORTFOLIO MARKET
VALUE
$ 1,825,112
$ 11,517,061
$ 14,125,597
$ 3,570,464
$ 1,000
2023-24 FYTD

INTEREST EARNINGS
$
$ 391,007
$ 422,129
$ 49,838
$
ACTUAL FYTD TOTAL CASH~ ALL FUNDS $ 31,045,234 $ 862,973 *Does not reflect accrued interest for TERM instruments Current Fiscal Year
2024-25 ALL FUNDS COMBINED ACTUAL FYTD INTEREST EARNINGS 2024-25 ALL FUNDS COMBINED ACTUAL FYTD BANK FEES
2024-25 ALL FUNDS COMBINED NET ACTUAL BANK INTEREST
2024-25 ALL FUNDS COMBINED BUDGETED INTEREST EARNINGS
2024-25 PERCENTAGE OF ACTUAL NET YTD INTEREST EARNINGS TO BUDGET Prior Fiscal Year Comparison - Same Period
2023-24 ALL FUNDS COMBINED ACTUAL FYTD INTEREST EARNINGS 2023-24 ALL FUNDS COMBINED ACTUAL FYTD BANK FEES
2023-24 ALL FUNDS COMBINED NET ACTUAL BANK INTEREST
2023-24 ALL FUNDS COMBINED BUDGETED INTEREST EARNINGS
2023-24 PERCENTAGE OF ACTUAL NET YTD INTEREST EARNINGS TO BUDGET $
$
$
$
$
$
$
$
862,973
(2,105)
860,869
644,925
133.484%
876,886
(3,964)
872,922
100,505
868.536%

POOLED CASH REPORT
December 2024

FUND FUND NAME CASH BALANCE
001 General Fund $ 657,646
002 General Fund Reserve Set Aside $ 4,179,858
003 Public Safety Sales Tax $ 1,177,177
005 Gas Tax $ (10,288)
006 General Fund Capital Set Aside $ 461,055
007 Street Projects Federal and State Funding $ (27,889) 010 LTF - Article 3 Sidewalks $ 66,767
011 LTF - Article 8 Streets $ 1,914,109
013 FCTA - Sustainable Aviation $
014 FCTA- Flexible Funding $ 1,167,270
015 FCT A - Americans with Disabilities Act (ADA) $ 31,830 016 FCTA - Street Maintenance $ 1,036,086
017 FCTA- Pedestrian and Trails $ 421,011
018 FCTA - Bike Facilities $ 91,506
021 LEAP Grant $ (147)
023 Road Repair Accountability Act $ 2,062,853
024 Community Development Block Grant (CDBG) $ 29,523
025 American Rescue Plan Act (ARPA) $ 686,577
027 Senior Nutrition FMAAA Program $ (3,999)
029 Public Education and Governmental Access (PEG) $
030 Landscape Lighting and Maintenance District $ 221,220 032 Community Facilities District $ 17,337
034 Streetscape $ 13,615
041 Airport $ 384,830
047 Groundwater Treatment $ 970,321
049 Water Capital $ 917,071
050 Water $ 763,170
051 Sewer Capital $ 1,998,321
052 Sewer $ 2,041,996
053 Solid Waste $ 764,518
060 Equipment Shop ISF $ 91,140
068 HR ISF $ {70,882)
073 Deposits in Trust $ 285,557
075 COPS Program $ 143,431
078 CASp Certification $ 48,761
080 City Bond Funds $ 30,137
082 Blighted Properties $ 103,685
100 DIF - Transportation $ 2,956,223
102 DIF - Law $ 29,434
103 DIF - Fire $ 451,075
104 DIF - Storm Drain $ 2,232,118
105 DIF - Wastewater Facilities $ 981,483
109 DIF - Parks & Recreation Facilities $ 342,421
110 DIF - General Government Facilities $ 14,885
111 DIF - Water Facilities $ 1,164,888
896 RDA Successor Low and Moderate Income Housing $ 12,073 897 RDA Successor Retirement $ 195,461
All Funds - Cash Total $ 31,045,234
Reedley's River City Theatre Company
Quarterly Report: July - December 2024
Emily Medina-Delgado
July 2024
Summer Kids Camp
• July 10-19: Hosted a summer kids camp with 9 kids in attendance. • Camp provided introductory lessons on theatre, culminating in a preshow performance at the Little Shop of Horrors matinee.

Little Shop of Horrors Production
• July 12-28: Successfully ran the show "Little Shop of Horrors", directed by Erik Valencia.
• This show saw high attendance and was well-received by the community, becoming one of the best-selling shows of the season.

Percy Jackson Auditions
• July 13: Held auditions for the upcoming show "Percy Jackson and the Lightning Thief." August - September 2024
Percy Jackson Rehearsals
• August 5 - September 26: Conducted rehearsals for the musical "Percy Jackson and the Lightning Thief."
• The show officially premiered on September 27 and ran until October 13, showcasing the commitment of the cast and crew to a well-rehearsed and energetic performance.

October 2024
Community Engagement: Pancake Breakfast
• October 12: Hosted a Pancake Breakfast at Reedley Fiesta, which turned out to be a very successful community event, strengthening community ties and support.

Post-Fiesta Parade Auditions
• October 12 (After the Parade): Held auditions for "The Winter Wonderettes." This was a crucial step in preparing for upcoming winter performances.

November - December 2024
Winter Wonderettes Rehearsals
• October 21 - December 5: Rehearsals for "The Winter Wonderettes'' were in full swing. • The dedication of the cast and crew ensured a polished performance leading up to the dress rehearsal.

Dress Rehearsal and Show Opening
• December 6: Conducted the dress rehearsal for "The Winter Wonderettes." • December 7-22: Show run for "The Winter Wonderettes", dinner shows were held December 13-14, catered by Jason Hofer. Information for the 2025 Season can be found online at rctcreedley.com.

Income
Annual Membership Sponsors
Kids Camp
Pancake Breakfast Sales
Production Income
Bar Sales
Dessert Sales
Dinner
Production Sponsor
Season Tickets
Ticket Sales
Total Production Income
Rental Income
Total Income

GROSS PROFIT
Expenses
Advertising
Bank/Credit Card Fees
Food/Beverage
Bar
Desserts
Dinners
Food/Beverage/Kitchen Supplies
Total Food/Beverage
Insurance
Board
Liability Insurance
Worker's Comp Insurance
Total Insurance
Office
Phone/Internet Services
Printing
Supplies
Ticket Processing/Theatermania
Total Office
Pancake Breakfast Expenses
Payroll Expenses
Payroll Taxes Expense
Wages Expense
Total Payroll Expenses
Reedley River City Theatre Company
Profit and Loss
July - December, 2024
Cash Basis Thursday, December 26, 2024 03:24 PM GMT-08:00 TOTAL
288.90
1,073.47
2,072.24
2,889.81
669.00
-20.00
5,000.00
3,456.56
47,763.87
59,759.24
5,400.00
$68,593.85
$68,593.85
1,396.64
1,983.92
1,242.35
941.13
6,965.37
1,149.43
10,298.28
2,853.10
326.41

27.90 3,207.41

1.41 702.35
3,485.94
314.34
2,137.98
6,642.02
436.09
171.96
15,533.22
15,705.18
1/2
Production Expenses
Audio/Video/Batteries
Choreography
Costumes
Crew
Direction
Music Production
Music Staff
Other Production
Props
Royal ities/Rig hts
Sets
Total Production Expenses
Professional Fees
Accounting
Legal Fees --- ·····--- - -
Total Professional Fees
Rent Expense
Opera House
Storage
Total Rent Expense
Repairs and Maintenance
Disposal
Supplies -
Total Repairs and Maintenance
Taxes,Licenses, Fees
Reedley River City Theatre Company
Profit and Loss
July - December, 2024
Unapplied Cash Bill Payment Expense
Total Expenses

NET OPERATING INCOME
Other Income
Contributions
50/50 Raffle
Total Contributions
Total Other Income

NET OTHER INCOME

NET INCOME
Cash Basis Thursday, December 26, 2024 03:24 PM GMT-08:00 TOTAL
228.05
300.00
1,892.39
1,287.00
3,250.00
200.00
100.00
110.60
1,086.48
7,467.94
1,056.99
16,979.45
495.90

79.27 575.17
6,550.00
1,706.99
8,256.99
385.00
1,242.22
378.89
2,006.11
1,757.95

0.00 $69,245.21
$-651.36
2,785.00
2,785.00
$2,785.00
$2,785.00
$2,133.64
2/2

REEDLEY CITY COUNCIL
DATE: January 14, 2025
D Consent
D Regular Item
D Workshop
D Closed Session
D Public Hearing
~ Receive/Review
ITEM NO: \4 ----
TITLE: QUARTERLY EXPENSE & TRAVEL REPORT FOR ELECTED AND APPOINTED OFFICIALS-OCTOBER 1, 2024 THROUGH DECEMBER 31, 2024 SUBMITTED: Paul A. Melikian, Assistant City Manager~
APPROVED: Nicole R. Zieba, City Manager

RECOMMENDATION
It is recommended that the City Council receive and review the quarterly expense & travel report for elected and appointed officials as required by Resolution No. 2018-091 that established an Expense Reimbursement and Travel/Conference Policy for Elected and Appointed Legislative Body Officials.

EXECUTIVE SUMMARY
The Expense Reimbursement and Travel/Conference Policy for Elected and Appointed Legislative Body Officials provides that, official travel and credit card expense reports shall be provided quarterly to the City Council as a receive & review item on the Council's agenda.

Attached is a breakdown of City-paid travel and/or other expenses incurred by Elected and Appointed Legislative Body Officials for the period of October 1 through December 31, 2024.

BACKGROUND
It is in the best interests of the City that elected and appointed officials remain informed and trained in activities, developments and professional trends affecting the affairs of the City, and that attendance at institutes, hearings, meetings, conferences, or other gatherings is of value to the City and its citizens.

The Expense Reimbursement and Travel/Conference Policy applies to City Councilmembers and all appointed legislative body officials including Planning Commissioners, and other volunteer members of City boards, commissions, and committees.

The Policy is designed to provide guidance to elected and appointed legislative body officials on the use and expenditure of City resources, as well as the standards against which those expenditures will be measured, all in compliance with the requirements of AB 1234 (Government Code§§ 53232.2, 53233.3).

After being sworn in, any elected or appointed legislative official of the City is required to sign a statement formally acknowledging receipt and acceptance of the policy.

ATTACHMENTS
Quarterly Expense & Travel Report for Elected and Appointed Legislative Body Officials Name
City of Reedley
Quarterly Expense & Travel Report for Elected and Appointed Legislative Body Officials
Reporting Period: October 1, 2024 - December 31, 2024
Item Description Amount
Mary Fast, Mileage Reimbursement for miles driven for $595.63 Councilmember official City Business

REEDLEY CITY COUNCIL
DATE: January 14, 2025
D Consent
D Regular Item
D Workshop
D ClosedSession
D Public Hearing
1:8] Receive/Review
ITEM NO: ,s ----
TITLE: RECEIVE, REVIEW, & FILE 2023-24 AUDITED CITY FINANCIAL STATEMENTS SUBMITTED:

APPROVED: Nicole R. Zieba, City Manager

RECOMMENDATION
That the City Council receive, review and file the audited financial statements for the fiscal year ended June 30, 2024.

EXECUTIVE SUMMARY
The City has received an "Unmodified" audit report for its financial statements for fiscal year ending June 30, 2024, with no findings. An audit report is said to be unmodified when the Auditor concludes that the Financial Statements give a true and fair view in accordance with the financial reporting framework used for the preparation and presentation of the Financial Statements. An Auditor gives a 'Clean' opinion or Unmodified Report when they do not have any significant reservation in respect of matters contained in the Financial Statements.

This type of report is issued by an auditor when the financial statements presented are free of material misstatements and are represented fairly in accordance with the Generally Accepted Accounting Principles (GAAP), which in other words means that the entities' financial condition, position, and operations are fairly presented in the financial statements. It is the best type of report an auditee may receive from an external auditor.

An Unmodified Report indicates the following:
• The Financial Statements have been prepared using the Generally Accepted Accounting Principles which have been consistently applied;
• The Financial Statements comply with relevant statutory requirements and regulations; • There is adequate disclosure of all material matters relevant to the proper presentation of the financial information subject to statutory requirements, where applicable; • Any changes in the accounting principles or in the method of their application and the effects thereof have been properly determined and disclosed in the Financial Statements.

ATTACHMENTS
Auditor Management Report for Fiscal Year Ended June 30, 2024 Audited Financial Statements for Fiscal Year Ended June 30, 2024

CITY OF REEDLEY

MANAGEMENT REPORT
FOR THE YEAR ENDED JUNE 30, 2024

TABLE OF

CONTENTS
Required Communications 1 - 3
2 BRYANT L.JOLLEY

CERTIFIED PUBLIC ACCOUNTANTS
To the Honorable Mayor and City Council
City of Reedley, California
Bryant L Jolley C.P.A.

Ryan P. Jolley C.P.A.

Darryl L Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Reedley for the year ended June 30, 2024. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and, if applicable, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated October 24, 2019. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City are described in Note 1 to the financial statements.

No new accounting policies were adopted and the application of existing policies have not changed during 2024. We noted no transactions entered into by City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City's financial statements were:
• Management has determined the economic useful lives of fixed assets based on past history of similar types of assets, future plans as to their use, and other factors that impact their economic value to the City. We evaluated the key factors and assumptions used by management in computing depreciation expense and believe that it is reasonable in relation to the financial statements taken as a whole.
• Management's estimate of the allowance for doubtful accounts is based on an evaluation of collectability primarily focused on past due accounts. We evaluated the key factors and assumptions used to develop the allowance for doubtful accounts in determining that it is reasonable in relation to the financial statements as a whole. 901 "N" STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3 0 4 5 FAX 559.659 .0615 • Management's estimate of the net pension liability and related deferrals is based on actuarial valuations which include significant assumptions regarding discount rate, inflation, payroll growth, projected salary increases and investment rate of return. We evaluated the key factors and assumptions used to develop the liability and related deferrals in determining that it is reasonable in relation to the financial statements taken as a whole.

The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management m performing and completing our audit.

Corrected and Uncorrected Misstaten:zents
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of the audit.

Management Representations
We have requested certain representations from management that are included m the management representation letter dated January 2, 2025.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to City of Reedley's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
2 Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as City of Reedley' s auditors.

However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to the Budgetary Comparison Schedules, Schedule of Changes in the City's Net OPEB Liability and Related Ratios, Proportionate Share of Net Pension Liability, and Schedule of Contributions which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on supplementary information, as listed in the table of contents, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

Restriction on Use
This information is intended solely for the information and use of the City Council and management of City of Reedley and is not intended to be, and should not be, used by anyone other than these specified parties.
3 CITY OF REEDLEY

INDEPENDENT AUDITOR'S REPORT
AND

FINANCIAL STATEMENTS
JUNE 30, 2024

CONTENTS

INDEPENDENT AUDITOR'S REPORT
BASIC FINANCIAL STATEMENTS:

Government-Wide Financial Statements
Statement of Net Position
Statement of Activities
Fund Financial Statements
Balance Sheet - Governmental Funds
Reconciliation of Total Governmental Fund Balance to
Net Position of Governmental Activities
Statement of Revenue, Expenditures and Changes in
Fund Balance - Governmental Funds
Reconciliation of Statement of Revenue, Expenditures
and Changes in Fund Balance of Governmental Funds
to the Statement of Activities
Statement of Net Position - Proprietary Funds
Statement of Revenue, Expense and Changes in Fund Net
Position - Proprietary Funds
Statement of Cash Flow - Proprietary Funds
Statement of Fiduciary Net Position - Custodial Funds
Statement of Changes to Fiduciary Net Position - Custodial Funds Statement of Fiduciary Net Position - Private Purpose Trust Fund Statement of Changes in Fiduciary Net Position - Private Purpose Trust Fund Notes to Basic Financial Statements
1-3
4 5
6 7
8 9
10 11
12-13
14 15
16 17
18 - 51
C O N T E N T S (Continued)
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
Budgetary Comparison Schedule - Development Impact Fees Capital Project Fund Budgetary Comparison Schedule - Street Projects Special Revenue Fund Schedule of Changes in the City's Net OPEB Liability and Related Ratios Schedule of the City's Proportionate Share of Net Pension Liability Schedule of Contributions
Supplemental Only Information
Combining Balance Sheet- Nonmajor
Governmental Funds
Combining Statement of Revenue, Expenditures and
Changes in Fund Balance - Nonmajor
52 53
54 55
56 57
58- 60
Governmental Funds 61 - 63
Schedule of Net Revenue Available for Debt Service 64

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER

MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS 65 - 66

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR

EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE 67 - 69
Schedule of Expenditures of Federal Awards
Notes to Schedule of Expenditures of Federal Awards
Schedule of Findings and Questioned Costs
Summary Schedule of Prior Audit Findings
70 71
72 73
BRYANT L.JOLLEY

CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and City Council
City of Reedley, California
Report on the Audit of the Financial Statements
Opinions
Bryant L.Jolley, C.P.A.

Ryan P. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Reedley (the "City"), California, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

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

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

Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. 901 "N" STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659 .3045 In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information
Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information.

Accounting principles generally accepted in the United States of America require that the budgetary comparison information on pages 52-54, the schedule of changes in the City's Net OPEB liability and related ratios on page 55, the schedule of the City's proportionate share of net pension liability on page 56, and the schedule of contributions on page 57, be presented to supplement the basic financial statements. Such inf01mation is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential pa1i of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying combining and individual nonmajor fund financial statements, the schedule of revenue available for debt service, and schedule of expenditures of federal awards, as required by Title 2 U.S.

Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 2 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 2, 2025, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance.

That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. 3 CITY OF REEDLEY

STATEMENT OF NET POSITION
JUNE 30, 2024
Primary Government
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 27,644,708 $ 6,570,117 $ 34,214,825 Restricted assets-cash 1,103,799 1,103,799
Accounts receivable (net of allowance) 89,436 192,060 281 ,496 Due from other governments 3,528,728 56,499 3,585,227
Prepaid expense 6,000 6,000
Inventory 19,113 429,370 448,483
Capital assets, net of allowance
for depreciation 59,612,847 49,886,851 109,499,698
Total assets 90,894,832 58,244,696 149,139,528
DEFERRED OUTFLOWS OF RESOURCES 8,203,930 930,149 9,134,079

LIABILITIES
Accounts payable 1,037,416 389,795 1,427,211
Interest payable 151,429 151,429
Retention payable 161 ,981 133,000 294,981
Deposits 496,085 496,085
Long-term liabilities:

Due within one year
Revenue bonds payable 1,565,000 1,565,000
Due in more than one year
Revenue bonds payable 22,912,656 22,912,656
Compensated absences 693,435 167,385 860,820
Net pension liability 16,612,163 1,807,079 18,419,242
Net OPEB liability 5 679 054 ll219)00 6 898 754
Total liabilities 24,184,049 28,917,129 53,101,178
DEFERRED INFLOWS OF RESOURCES 1,659,627 296,869 1,956,496

NET POSITION
Net investment in capital assets 59,612,847 25,257,766 84,870,613 Restricted for:

Public ways and facilities 6,582,738 6,582,738
Public safety programs 1,518,547 1,518,547
Community services 40,272 40,272
Capital projects and improvements 9,882,748 1,103,799 10,986,547 Unrestricted (4,382,066) 3,599,282 (782,784)
Total net position $ 73,255,086 $ 29,960,847 $ 103,215,933 See accomp anying notes. 4

CITY OF REEDLEY

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2024
--------------------------------------------- Net Revenue/(Expense) and Program Revenue Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Bus inc s s-Type Functions/Programs ~ense Services Contributions Contributions Activities Activities Total Primary Government
Governmental activities
Public safety $ 10,115,355 $ 349,422 $ 500,811 $ $ (9,265,122) $ $ (9,265,122) Public ways and facilities 6,707,545 819,715 3,832,536 6,020,693 3,965,399 3,965,399 Community services 3,613,862 301,684 1,535,129 (1,777,049) (1,777,049) Administrative and finance 3,775,798 (3,775,798) (3,775,798) Community development 1,579,201 727,913 31,760 57,015 (762,513) (762,513) Total governmental activities 25,791,761 2,198,734 5,900,236 6,077,708 (11,615,083) (11,615,083) Business-type activities
Water 4,533,363 4,553,456 20,093 20,093
Sewer 6,082,438 6,364,414 2,800,000 3,081,976 3,081,976 Disposal 2,711,429 2,007,243 6,707 (697,479) (697,479)
Airport 610,624 123,314 247,764 (239,546) (239,546)
Tota l business-type activities 13,937,854 13,048,427 3,047,764 6,707 2,165,044 2,165,044 Total primary government $ 39,729,615 $ 15,247,161 $ 8,948,000 $ 6,084,415 $ (11,615,083) $ 2,165,044 $ (9,450,039) General Revenue
Sales and use taxes 6,685,839 6,685,839
Property taxes 6,360,663 15,866 6,376,529
Franchise and other taxes 1,295,128 1,295,128
Business license 127,991 127,991
Insurance refl.mds and other 271,186 31,455 302,641
Rents 50,039 164,172 214,211
Gain/(loss) on disposal of assets (61,546) 13,913 (47,633) Unrestricted investment earnings/(unrealized losses) 1,305,295 344,214 1,649,509 Transfer in/( out), net (787,793) 787,793
Total general revenue 15,246,802 1,357,413 16,604,215
Change in Net Position 3,631,719 3,522,457 7,154,176
Net Position
Beginning of year 69,623,367 26,438,390 96,061,757
End of year $ 73,255,086 $ 29,960,847 $ 103,215,933
See accompanying notes. 5

CITY OF REEDLEY

BALANCE SHEET - GOVERNMENTAL FUNDS
JUNE 30, 2024
Capital Project Fund Special Revenue Fund
Development Non-Major Total
Impact Street Governmental Governmental
General Fees Projects Funds Funds
ASSETS
Cash and investments $ 9,575,856 $ 7,833,398 $ 4,041,392 $ 6,040,059 $ 27,490,705 Accounts receivable 89,436 89,436
Due from other governments 1,966,857 395,496 397,661 768,714 3,528,728 Due from other funds 161,451 161,451
Total assets $ 11,793,600 $ 8,228,894 $ 4,439,053 $ 6,808,773 $ 31,270,320

LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable and accrued expense 728,028 11,098 203,461 942,587 Retention payable 161,981 161,981
Due to other funds 161,451 161,451
Total liabilities 728,028 173,079 364,912 1,266,019
Fund Balance
Restricted
Public ways and facilities 4,265,974 2,316,764 6,582,738 Public safety programs 1,518,547 1,518,547
Community services 40,272 40,272
Capital projects and improvements 8,228,894 1,653,854 9,882,748 Assigned 3,066,028 3,066,028
Unassigned 7,999,544 914,424 8,913,968
Total fund balance 11 065 572 8 228 894 4 265 974 6443 861 30 004 301 Total liabilities and fund balance $ 11,793,600 $ 8,228,894 $ 4,439,053 $ 6,808,773 $ 31,270,320 See accompanying notes. 6

CITY OF REEDLEY

RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCE TO NET POSITION

OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2024
Total governmental fund balance
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds $
Deferred outflows of resources related to net pension liability and OPEB, represent a consumption of net position or fund balance that applies to future period( s) and so will not be recognized as an outflow of resources (expenses) until that time
Compensated absences are not due and payable in the current period and therefore are not reported in the funds
Net pension liability applicable to governmental activities are not due and payable in the current period and accordingly is not reported in the governmental funds
Post-retirement health benefits are not due and payable in the current period and, therefore, are not reported in the governmental funds Deferred inflows of resources related to net pension liability and OPEB, represent an acquisition of net position or fund balance that applies to future period( s) and so will not be recognized as an inflow of resources (revenue) until that time
The internal service fund is used to charge the costs of automotive equipment activities to individual funds. The assets and liabilities of the internal service fund are included in governmental activities in the statement of net position
Net position of governmental activities
See accompany ing notes.
$
30,004,301
59,292,086
8,203,930
(671,131)
(16,612,163)
(5,679,054)
(1 ,659,627)
376,744
73,255,086
7 CITY OF REEDLEY

STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2024
Caeital Project Fund S_eecial Revenue Funds
Development Non-Major Total
Impact Street Governmental Governmental
General Fees Pro.jects Funds Funds
Revenue
Intergovernmental $ 2,655,875 $ - $ 1,686,940 $ 2,255,636 $ 6,598,451 Taxes and assessments 11,095,085 1,567,461 3,931,293 16,593,839 Charges for services 1,466,570 21,247 1,487,817
License, pennits and impact fees 838,908 3,054,125 3,893,033 Other 224,932 63,805 288,737
Investment, rent income, and unrealized losses 555,088 372,049 209,602 238,586 1,375,325 Total revenue 16,836~458 3,426,174 3,464,003 6,510,567 30,237,202 Expenditures
Current
General government 2,234,683 31,368 2,266,051
Public ways and facilities 1,828,719 220,004 642,065 2,396,717 5,087,505 Community services 3,211,862 3,211,862
Public Safety 7,765,780 1,692,221 9,458,001
Community development 1,400,469 114,658 1,515,127
Capital Outlay 977,094 743,673 2,164,271 600,027 4,485,065 Total expenditures 17,418,607 963,677 2,806,336 4,834,991 26,023,611 Revenue over/(under) expenditures (582,149) 2,462,497 657,667 1,675,576 4,213,591 Other Financing Sources/(Uses)
Proceeds from sale of assets 919 919
Transfers in/( out), net 263,464 (56,468) (28,869) (2,574,071) (2,395,944) Total other financing sources/(uses) 264J8} (56,468) (28,869) (2,574,071) (2,395,025) Change in Fund Balance (317,766) 2,406,029 628,798 (898,495) 1,818,566 Fund Balance
Beginning of year 11,383,338 5,822,865 3,637,176 7,342,356 28,185,735 End of year $ 11,065,572 $ 8,228,894 $ 4,265,974 $ 6,443,861 $ 30,004,301 See accompanying notes. 8

CITY OF REEDLEY

RECONCILIATION OF STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN

FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITES YEAR ENDED JUNE 30, 2024
Net change in fund balance - total governmental funds
Amounts reported for governmental activities in the Statement of Activities are different because :

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated lives and reported as depreciation expense Capital outlay expenditures are therefore added back to fund balances Depreciation expense not reported in governmental funds Compensated absence costs in the Statement of Activities does not require the use of current financial resources and, therefore, are not reported as expenditures in the Governmental Funds
Pension expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the Governmental Funds
Loss on disposal of assets
Post-retirement benefit costs in the Statement of Activities does not require the use of current financial resources and, therefore, are not reported as expenditures in the Governmental Funds Internal service funds are used by management to charge the costs of fleet maintenance to .individual funds. The net revenue (loss) of certain activities of internal service funds is reported with governmental activities
Change in net position of governmental activities
See accompany ing notes.
4,485,067
(2,295,598)
$
$
1,818,566
2,189,469
(103,567)
(479,651)
(62,465)
307,557
(38,190)
3,631 ,719
9 CITY OF REEDLEY

STATEMENT OF NET POSITION - PROPRIETARY FUNDS
JUNE 30, 2024
Business-Type Activities-Enterprise Funds Governmental
Total Activities
Nonmajor Ente!Erise Funds Business- Internal
ASSETS Water Sewer Diseosal Ai!Eort Tn!e Funds Service
Current assets
Cash and cash equivalents $ 1,812,626 $ 3,972,821 $ 2 13,010 $ 571 ,660 $ 6,570,117 $ 154,003 Restricted assets-cash 878,382 225,417 1,103,799
Accounts receivable 44,959 107,862 39,239 192,060
Due from other government 45 20 56,434 56,499
Due from other funds
Prepaid expense 6,000 6,000
Inventory 325,777 103,593 429,370 19,113
Total current assets 3,067,789 4,409,693 252,269 628,094 8,357,845 173,116 Other assets
Property, plant and equipment, net 11 ,968,303 30,859,446 2,3 17,176 4,741,926 49,886,851 320,761 Total other assets 11,968,303 30,859,446 2,3 17,176 4,741,926 49,886,851 320,761 Total assets 15,036,092 35,269,139 2,569,445 5,370,020 58,244,696 493,877 DEFERRED OUTFLOWS OF RESOURCES 376,163 553,986 930,149

LIABILITIES
Current Liabilities
Accounts payable and accrued expense 233,521 133,487 16,627 6,160 389,795 94,829 Retention payable 133,000 133,000
Interest payable 118,227 33,202 151,429
Deposits 401,014 95,071 496,085
Unearned revenues 75,000 75,000
Current portion of noncWTent liabilities 520,000 1,045,000 1,565,000 Total current liabilities 1,272,762 1,344,689 91,627 101 ,231 2,8 10,309 94,829 Noncurrent liabilities
Revenue bonds payable 9,195,111 13,7 17,545 22,912,656
Compensated absences 66,796 96,399 4,190 167,385 22,304 Net pension liability 730,804 1,076,275 1,807,079
Net OPEB liability 493,261 726,439 1,219,700
Total noncurrent liabilities 10,485,972 15,616,658 4,190 26,106,820 22,304 Tota l liabilities 11 ,758,734 16,961,347 91 ,627 105,421 28,917,129 117,133 DEFERRED INFLOWS OF RESOURCES 120,057 176,812 296,869

NET POSITION
Net investment in capital assets 2,134,965 16,063,699 2,317,176 4,741,926 25,257,766 320,761 Restricted
Debt service 878,382 225,417 1,103,799
Unrestricted (deficit) 520,117 2,395,850 160,642 522,673 3,599,282 55,983 Total net position $ 3,533,464 $ 18,684,966 $ 2,477,818 $ 5,264,599 $ 29,960,847 $ 376,744 See accompanying notes. JO

CITY OF REEDLEY

STATEMENT OF REVENUE, EXPENSE, AND CHANGES IN FUND NET POSITION -

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
Business-Type Activities-Enterprise Funds Governmental
Total Activities
Nonmajor Entererise Funds Business- Internal
\-Vater Sewer Diseosal Aireort Tree Funds Service
Operating Reve nue
Charges for services
User fees $ 4,364,805 $ 6,290,207 $ 2,007,243 $ 122,177 $ 12,784,432 $ 1,608,151 Rents 39,746 4,050 124,032 167,828
Other income 158,513 70,157 440 1,137 230,247 825
Total operating revenue 4,563,064 6,364,414 2,007,683 247,346 13,182,507 1,608,976 Operating expense
Personnel 1,745, 11 8 1,841 ,907 478,096 74,431 4,139,552 938,024 Supplies, materials, utilities and other 1,412,545 1,538,872 130,050 299,226 3,380,693 600,894 Contractual 456,205 1,046,895 2,017,506 75,655 3,596,261 33,130 Depreciation and amortization 580,478 1,243,346 85,777 161,312 2,070,913 78,241 Total operating expense 4,194,346 5,671,020 2,711,429 610,624 13,187,419 1,650,289 Operating income/(loss) 368,718 693,394 (703,746) (363,278) (4,912) (41,313) Nonoperating re ve nue/(e xpense)
Gain/(loss) on disposal of assets 4,289 4,289
Intergovernmental 2,800,000 6,707 247,760 3,054,467
Miscellaneous 25,879 1,988 3,169 31,036
Interest income/(unrealized losses) 86,782 243,042 41 ,160 13,369 384,353 3,123 Property taxes 15,866 15,866
Interest expense (339,01 7) (411 ,418) (750,435)
Total nonoperating revenue/(expense) (226,356) 2,637,901 51,036 276,995 2,739,576 3,123 Net revenue over/(under) expense 142,362 3,33 1,295 (652,710) (86,283) 2,734,664 (38,190) Other financing sources/(uses)
Operating transfers in/( out)-net (26,188) (427,477) 662,875 578,583 787,793 Change in net position 116,174 2,903,818 10,165 492,300 3,522,457 (38,190) Net Position
Beginning of year 3,417,290 15,781,148 2,467,653 4,772,299 26,438,390 414,934 End of the year $ 3,533,464 $ 18,684,966 $ 2,477,8 18 5,264,599 $ 29,960,847 $ 376,744 See accompanying notes. 11

CITY OF REEDLEY

STATEMENT OF CASH FLOW-PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
Business-Type Activities-Enterprise Funds Governmental
Total Activities
Nonmajor Entererise Funds Business- Internal
Water Sewer Diseosal Aireort T~e Funds Service
Ope rating activities
Receipts from customers and users $ 4,577,268 $ 6,340,276 $ 2,076,258 $ 322,199 $ 13,316,001 $ 1,608,976 Payments for contractual services,
supplies, utilities and repairs (2,044,373) (2,889,376) (476,586) (152,228) (5,562,563) (985,831) Payments to employees (1,405,068) (1 ,537,405) (2,147,556) (299,872) (5,389,901) (599,398) Net cash provided by/
(used for) operating activities 1,127,827 1,913,495 (547,884) (129,901) 2,363,537 23,747 Noncapital financing activities
Payments from other governments 10,529 310,388 320,917
Other income 29,349 2,801,988 2,831 ,337
Payments from/(to) other funds 2,802 (427,477) 662,875 549,593 787,793 Net cash provided by/(used for)
noncapital fmancing activities 32,151 2,374,511 673,404 859,981 3,940,047 Capital and related financing activities
Proceeds from sale of assets 4,289 4,289
Purchase of property, plant and equipment (446,289) (3,773,690) (171 ,786) (4,391,765) Principal paid on long-term debt (845,090) (1 ,080,256) (1,925,346) Interest paid on long-term debt (19,590) (229,935) (249,525) Net cash provided by/(used for)
capital and related financing activities 0 ,310,969) (5,079,592) (171 ,786) (6,562,347) Investing activities
Interest received/( unrealized losses) 86,782 243,042 41,160 13,366 384,350 3,123 Net increase/(decrease) in cash (64,209) (548,544) 166,680 571,660 125,587 26,870 Cash, beginning ofyear 2,755,217 4,746,782 46,330 7,548,329 127,133 Cash, end of year $ 2,691 ,008 $ 4,198,238 $ 213,010 $ 571 ,660 $ 7,673,9 16 $ 154,003 See accompanying notes. 12

CITY OF REEDLEY

STATEMENT OF CASH FLOW - PROPRIETARY FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2024
Business-Type Activities-Enterprise Funds
Nonmajor Ente !]!rise Funds
Water Sewer Diseosal Ai!J!Ort
Summary of cash, end of year
Cash and cash equivalents $ 1,8 12,626 $ 3,972,82 1 $ 2 13,010 $ 571 ,660 Restricted assets - cash 878,382 225,41 7
Cash, end of year $ 2,691,008 $ 4,198,238 $ 213,010 $ 571,660 Reconciliation of operating income to net cash
provided by/(used for) operating activities:

Operating income/(loss) $ 368,718 $ 693,394 $ (703,746) $ (363,278) Adjustment to reconcile operating income/
(loss) to net cash provided by/(used for)
operating activities:

Depreciation and amortization expense 580,478 1,243,346 85,777 161 ,312 (Increase )/decrease in accounts receivable (9,351) (24,138) (6,425) 3,174 (Increase )/decrease in inventory 87,876 5,932
(Increase )/decrease in deferred outflows of resources (29,680) (43,710) Increase/(decrease) in accounts payable
and accrued expense 69,074 (6,506) 1,510 (2,142)
Increase/( decrease) in unearned revenues 75,000
Increase/( decrease) in deferred inflows of resources (32,603) (48,015) Increase/( decrease) in compensated absences 7,270 l,16 1 (646) Increase/( decrease) in OPEB liability 23,190 34,152
Increase/( decrease) in net pension liability 39,300 57,879 Increase/( de crease) in deposits 23,555 71,679
Net cash provided by/(used for)
operating activities $ 1,127,827 $ 1,913,495 $ {547,884) $ (129,901) See accompany ing notes.

Governme ntal
Total Activities
Business- Internal
T~e Funds Service
$ 6,570,117 $ 154,003
1,103,799
$ 7,673,916 $ 154,003
$ (4,912) $ (41 ,3 13)
2,070,913 78,24 1
(36,740)
93,808 (2,054)
(73,390) (12,623)
61,936
(80,618)
7,785 1,496
57,342
97,179
95,234
$ 2,363,537 $ 23,747
13 CITY OF REEDLEY

STATEMENT OF FIDUCIARY NET POSITION - CUSTODIAL FUNDS
JUNE 30, 2024
Assets
Cash and cash equivalents
Total assets
Liabilities
Accounts Payable
Total liabilities
Net Position
Restricted for
$
Custodial
Flmds
464 899
464,899
4,494
4,494
Individuals, organization, and other governments 460,405 Total Net Position $ 460,405
=====
See accompany ing notes. 14

CITY OF REEDLEY

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - CUSTODIAL FUNDS JUNE 30, 2024
See accompany ing notes.

Additions
Deposits
Total additions
Deductions
Payment to other entities
Total deductions
Change in net position
Net position, beginning
Net position, ending
$
$
Custodial
Funds
318,571
318,571
111,489
111,489
207,082
253,323
460,405
15 CITY OF REEDLEY

STATEMENT OF FIDUCIARY NET POSITION

PRIVATE-PURPOSE TRUST FUND
JUNE 30, 2024
Assets
Cash and investments
Accounts receivable
Notes receivable
Total assets
Liabilities
Accounts payable
Interest payable
Long-term debt
Due within one year
Due in more than one year
Total liabilities
Net Position
Held in trnst for other governments
See accompany ing notes.

Successor Agency
$ 608,579
241 ,964
1,548,819
2,399,362
186,269
13,456
300,000
3,080,000
3,579,725
(1 ,180,363)
$ (1 ,180,363)
16 CITY OF REEDLEY

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

PRIVATE-PURPOSE TRUST FUND - SUCCESSOR AGENCY
JUNE 30, 2024
Additions
Property taxes
Charges for services
Investment earnings
Total additions
Deductions
Program expenses
Interest and fiscal agency expenses
Total deductions
Change In Net Position
Net Position
Beginning of year
End of year
See accompanying notes.

Successor Agency
$
$
398,234
16,626
47,648
462,508
5,500
81 ,981
87,481
375,027
(1,555,390)
(1,180,363)
17 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 1 - Summary of Significant Accounting Policies
The financial statements of the City of Reedley (the City) have been prepared in conformity with Accounting Principles Generally Accepted in the United States of America (GAAP) as applicable to governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.

These financial statements present the government and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the government's operations and data from these units is combined with data of the primary government. Each blended component unit has a June 30 fiscal year end. There are no discretely presented component units included in these financial statements. The following sections further describe the significant accounting policies of the City.

Reporting Entity
The City of Reedley, State of California (the "City"), was incorporated on February 18, 1913. The City operates under a Council-Manager form of government. The City's major operations include public safety (police and fire); highways and streets; water, sewer and refuse collection: parks and recreation; building inspection; airport; public improvements; planning and zoning and general administrative services.

The Reedley Public Financing Authority (the "Authority") was created by a Joint Exercise of Powers between the City and the Agency on November 23, 1993. An Agreement was entered into pursuant to the provisions of the Marks Roos Local Bond Pooling Act of 1985, Articles 1, 2 and 4, Chapter 5, Division 7, Title 1 of the California Government Code (the IPA Law"). The Authority, which is governed by a commission consisting of the members of the City Council, was created for the purpose of assisting the financing of refinancing of the Authority's project areas. Under the IPA Law, the Authority has the power to purchase bonds issued by any local agency at public or negotiated sale and may sell such bonds to public or private purchasers at public negotiated sale.

Basis of Presentation - Fund Accounting
Government-Wide Financial Statements -The Government-Wide Financial Statements (the Statement of Net Position and the Statement of Activities and Changes in Net Position) report information of all of the nonfiduciary activities of the primary government and its component units. For the most part, eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the City and between the City and its component unit.

Governmental activities, which normally are supported by taxes and inter-governmental revenues, are reported separately from business-type activities, which rely significantly on fees charged to external parties.

The Statement of Activities and Changes in Net Position presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 18 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 1 - Summary of Significant Accounting Policies (Continued) Net position is restricted when constraints placed on them are either externally imposed or are imposed by constitutional provisions or enabling legislation. Internally imposed designations of resources are not presented as restricted net position. When both restricted and unrestricted resources are available for use, generally, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed.

Governmental Fund Financial Statements - The Governmental Fund Financial Statements provide information about the City's funds, including fiduciary funds and the blended component unit. Separate statements for each fund category - governmental, proprietary and fiduciary - are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental funds are separately aggregated and reported as non-major funds.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities.

The City reports the following major governmental funds:

General Fund - The General Fund is the general operating fund of the City. It is used for all financial resources except those required legally, or by sound financial management to be accounted for in another fund. Generally, the General Fund is used to account for those traditional governmental services of the City, such as police and fire protection, planning and general administrative services.

Development Impact Fees Capital Project Fund - The Development Impact Fees Capital Project Fund was established to account for monies received from impact fees and spending of those funds.

Street Projects Special Revenue Fund-The Street Projects Special Revenue Fund is used to account for the monies received from the State Controller's Office (Road Maintenance and Rehabilitation), California Department of Transportation (federal grants), and Fresno County Transportation Authority (Measure C) which are to be used for the streets related projects.
19 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 1 - Summary of Significant Accounting Policies (Continued) The City reports the following major enterprise funds:

Water Fund-The Water Fund accounts for the operation and maintenance of the City's water treatment and water transmission and distribution systems.

Sewer Fund- The Sewer Fund accounts for the operation and maintenance of the City's sewer system.

The City reports the following additional fund types:

Internal Service Fund - The Internal Service Fund accounts for fleet management and computer services provided to other departments or agencies of the government, on a cost reimbursement basis.

Custodial Funds - The Custodial Funds account for assets held by the City as an agent for various local governments or other entities. These funds are custodial in nature ( assets equal liabilities) and do not involve measurement of results of operations.

Private-Purpose Trust Funds - The Private-Purpose Trust Fund accounts for assets held by the City as trnstee for the Successor Agency.

Basis of Accounting
The Government-Wide and Proprietary Fund Financial Statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives ( or receives) value without directly receiving ( or giving) equal value in exchange, include property and sales taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied.

Revenues from sales tax are recognized when the underlying transactions take place. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied.

Governmental Funds are reported using the current financial resources measurement focus and the modified accrnal basis of accounting. Under this method, revenues are recognized when measurable and available.

Property and sales taxes, interest, certain state and federal grants and charges for services are accrued when their receipt occurs within sixty days after the end of the accounting period so as to be both measurable and available.
20 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 1 - Summary of Significant Accounting Policies (Continued) Basis of Accounting (Continued)
Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financing sources.

Proprietary Funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a Proprietary Fund's principal ongoing operations. Revenues and expenses not meeting this definition are reported as non-operating.

Financial Statement Amounts
Cash and Investments - Cash and investments represent the City's cash bank accounts including but not limited to certificates of deposit, money market funds and cash management pools for reporting purposes in the Statement of Cash Flows. Additionally, investments with maturities of three months or less when purchased are included as cash equivalents in the Statement of Cash Flows.

The City maintains a cash and investment pool that is available for use by all funds. Interest earnings as a result of this pooling are distributed to the appropriate funds based on month end cash balances in each fund.

Investments of the pool include only those investments authorized by the California Government Code such as, United States Treasury securities, agencies guaranteed by the United States Government, registered state warrants, and other investments. Investments primarily consist of deposits in the State of California Local Agency Investment Fund. Investments are stated at cost or amortized cost.

Inventories - Inventories consist of expendable supplies held for the City's use and are carried at cost using the first-in, first-out method.

Accounts Receivable - Billed but unpaid services provided to individuals or non-governmental entities are recorded as accounts receivable. The Proprietary Funds include a year-end accrual for services through June 30, 2024, which have not yet been billed.

Fresno County is responsible for the assessment, collection and apportionment of property taxes for all taxing jurisdictions. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year. Secured property taxes are due in two installments, on November 1 and March 1, and become a lien on those dates. They become delinquent on December 10 and April 10, respectively. Collection of delinquent accounts is the responsibility of the County, which retains all penalties collected. Property taxes are accounted for in the General Fund. Property tax revenues are recognized when they become measurable and available to finance current liabilities. The City considers property taxes as available if they are collected within 60 days after year end. Property tax on the unsecured roll are due on July 1 and become delinquent if unpaid on August 31. However, unsecured property taxes are not susceptible to year end accrual. 21 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 1 - Summary of Significant Accounting Policies (Continued) The City is permitted by Article XIIIA of the State of California Constitution (known as Proposition 13) to levy a maximum tax of $1.00 per$ 100 of full cash value.

Interfund Receivables/Payables - Items classified as interfund receivable/payable represent short-term lending/borrowing transactions between funds. This classification also includes the current portion of an advance to or from another fund.

Advances To/From Other Funds - This classification represents non-current portions of any long-term lending/borrowing transactions between funds. This amount will be equally offset by a reserve of fund balance which indicates that it does not represent available financial resources and therefore, is not available for appropriation. The current portion of any interfund long-tenn loan (advance) is included as an interfund receivable/payable.

Capital Assets - Capital outlays are recorded as expenditures of the General, Special Revenue, and Capital Projects Funds and as assets in the Government-Wide Financial Statements to the extent the City's capitalization threshold are met.

Capital assets, which include property, plant, equipment, and infrastructure assets ( e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the Government-Wide Financial Statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Betterments and major improvements which significantly increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement of fixed assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.

Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives:

Depreciable asset Years
Buildings 10-40
Improvements 10-40
Machinery and equipment 3-20
Utility system 5-50
Infrastructure 15-50
22 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 1 - Summary of Significant Accounting Policies (Continued) Compensated Absences - It is the City's policy to permit all employees to accumulate earned but unused vacation and compensatory time benefits. Those employees on shift work schedules may also accumulate hours for holiday time benefits.

Vested or accumulated vacation, holiday and any compensation time that is expected to be paid with expendable available financial resources is reported as expenditure in the fund financial statements of the Governmental Fund that will pay for it. Amounts not expected to be liquidated with expendable available financial resources are reported in the Government-Wide Financial Statements.

Vested leave of Proprietary Funds are recorded as an expense and liability as the benefits accme.

Unearned Revenue - Unearned revenue is that for which asset recognition criteria have been met, but for which revenue recognition criteria have not been met. The City typically records unearned revenue related to uncollected outstanding, performing loans and intergovernmental revenues (primary grants and subventions) received but not earned (qualifying expenditures not yet incurred).

Long-Term Obligations - In the Government-Wide Financial Statements, and Proprietary Fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or Proprietary Fund Type Statement of Net Position. Debt principal payments of both government and business-type activities are reported as decreases in the balance of the liability on the Statement of Net Position. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method.

Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.

In the fund financial statements, however, debt principal payments of Governmental Funds are recognized as expenditures when paid. Governmental Fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Non-Current Governmental Assets/Liabilities - GASB Statement No. 34 eliminates the presentation of account groups, but provides for these records to be maintained and incorporates the information into the Governmental Activities column in the Government-Wide Statement of Net Position.

Pension Plan - All full-time City employees are members of the State of California Public Employees' Retirement System. The City's policy is to fund all pension costs accmed; such costs to be funded are determined annually as of July 1 by the System's actuary. See note 9 for further discussion.

Bond Discount and Issuance Costs - For governmental funds, bond discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reported as other financing sources net of the applicable discount. Issuance costs, whether or not withheld form the actual net proceeds received, are reported as debt service expenditures. For business-type funds, bond discounts, are deferred and amortized over the life, of the bonds. Bonds payable are reported net of applicable bond discounts. Issuance costs are expensed.
23 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 1 - Summary of Significant Accounting Policies (Continued) Net Position - The government-wide and business-type activities fund financial statements utilize a net position presentation. Net position are categorized as net investment in capital assets, restricted and unrestricted.
• Net Investment in Capital Assets - This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.
• Restricted Net Position - This category presents external restrictions on net position imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. • Unrestricted Net Position - This category represents net position of the City, not restricted for any project or other purpose.

Fund Balance - In the fund financial statements, governmental fund balance is made up of the following components:
• Nonspendable fund balance typically includes inventories, prepaid items, and other items that must be maintained intact pursuant to legal or contractual requirements, such as endowments. • Restricted fund balance category includes amounts that can be spent only fo,r specific purposes imposed by creditors, grantors, contributors, or laws or regulations of other governments or through enabling legislations.
• Committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the City Council. The City Council has the authority to establish, modify, or rescind a fund balance commitment. • Assigned fund balance are amounts designated by the City Council for specific purposes and do not meet the criteria to be classified as restricted or committed. • Unassigned fund balance is the residual classification that includes all spendable amounts in the General Fund not contained in other classifications.
24 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 1 - Summary of Significant Accounting Policies (Continued) When expenditures are incurred for purposes for which both restricted and unrestricted ( committed, assigned, or unassigned) fund balances are available, the City's policy is to apply restricted first. When expenditures are incurred for purposes for which committed, assigned, or unassigned fund balances are available, the City's policy is to apply committed fund balance first, then assigned fund balance, and finally unassigned fund balance.

Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

Note 2 - Stewardship, Compliance and Accountability
California law authorizes the City to invest in obligations of the United States Treasury, agencies and instrumentalities, certificates of deposit or time deposits in banks and savings and loan associations which are insured by the Federal Deposit Insurance Corporation.

In accordance with applicable sections of the California Government Code and the Reedley Municipal Code, the City prepares and legally adopts an annual balanced budget on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for the General Fund, specific Special Revenue Funds, and specific Capital Projects Funds. Budget plans are adopted for Proprietary Funds. A proposed budget is presented to the City Council during June of each year for review. The Council holds public hearings and may add to, subtract from, or change appropriations within the revenues and reserves estimated as available. Expenditures may not legally exceed budgeted appropriations at the fund level. Supplementary appropriations which alter the total expenditures of any fund, or expenditures in excess of total budgeted fund appropriations, must be approved by the City Council.

All annual appropriations lapse at fiscal year end to the extent they have not been expended or encumbered. 25 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 3 - Cash and Investments
The City pools all of its cash and investments except those funds required to be held by outside fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash is allocated to the various funds on average cash balances. Interest income from cash investments held with fiscal agents is credited directly to the related funds.

Cash and investments as of June 30, 2024 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments
Restricted Cash
Fiduciary Funds:

Cash and Investments
Total Cash and Investments
Cash and investments as of June 30, 2024 consist of the following :

Cash on hand
Deposits with Financial Institutions
Money Market Funds and Instruments
Certificate of Deposits
California Asset Management Program - CAMP
Cash with fiscal agent
Total Cash and Investments
Fair Value Measurements
$ 34,214,825
1,103,799
1,073,478
$ 36,392,102
$ 6,000
3,063,048
2,970,042
13,022,555
16,226,658
1,103,799
$ 36,392,102
The framework for measuring fair value provides a fair value hierarchy that categorizes the inputs to valuation techniques used to measure fair value into three levels. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described as follows:

Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date.

Level 2: Inputs to valuation methodology include inputs - other than quoted prices included within Level 1 - that are observable for an asset or liability, either directly or indirectly.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
26 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 3 - Cash and Investments (Continued)
Fair Value Measurements (Continued)
The asset's or liability's fair value measurement level within a fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Levell
Investments by fair value level:

Certificate of Deposits $
Money Market Funds and Instruments
California Asset Management Program - CAMP
Total Equity
Carried at amortized cost:

Bank Deposits and Cash on Hand
Total Cash and Investments amortized at cost
Total Cash and Investments
Level2 Level3
2,970,042
13,022,555
16,226,658
32,219,255
June 30, 2024
Balance
2,970,042
13,022,555
16,226,658
32,219,255
4,172,847
4,172,847
$ 36,392,102
Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. The City's investment policy does not contain any specific provisions intended to limit the City's exposure to interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. 27 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 3 - Cash and Investments (Continued)
Authorized Investment Type
Local Agency Bonds
U .S. Treasury Obligations
U.S. Agency Securities
Banker's Acceptances
Commercial Paper
Negotiable Certificates of Deposit
Medium-Term Notes
Mutual Funds
Money Market Mutual Funds
Mortgage Pass-Through Securities
County Pooled Investment Funds
Local Agency Investment Fund (LAIF)
Investments Authorized by Debt Agreements
Maximum
Maturity
1 year
1 year
1 year
180 days
270 days
1 year
1 year
NIA
NIA
1 year
NIA
NIA
Maximum Maximum
Percentage Investment in
of Portfolio One Issuer
None 5%
None None
None None
40% 5%
25% 5%
30% None
30% None
20% 10%
20% 10%
20% None
None None
None None
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy.

The table below identifies the investment types that are authorized for investments held by the bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio One Issuer U.S. Treasury Obligations None None None
U .S. Agency Securities None None None
Banker's Acceptances 1 year None None
Commercial Paper None None None
Money Market Mutual Funds None None None
Investment Contracts None None None
Certificates of Deposit 1 year None None
Repurchase Agreements 30 days None None
Local Agency Investment Fund (LAIF) NIA None None
Municipal Bonds None None None
28 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 3 - Cash and Investments (Continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. As of June 30, 2024 the City had the following investments:

Investment Type
Certificate of Deposits
Money Market Funds and Instruments
CAMP
Total Equity Securities
Disclosures Relating to Credit Risk
June 30, 2024
Balance
$ 13,022,555
2,970,042
16,226,658
$ 32,219,255
12 or Less
Months
$ 1,325,662
2,970,042
16,226,658
$ 20,522,362
Remaining Maturi~ .in Months
13 to 24 25 to 60 More than 60
Months Months Months
$ 5,599,623 $ 6,097,270 $
$ 5,599,623 $ 6,097,270 $
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year-end for each investment type.

Investment Type
Certificates of Deposits
Money Market Funds and Instnm1ents
California Asset Management Program - CAMP
Total Equity Securities
June 30, 2024 Rating of Year
Balance End
$ 13,022,555
2,970,042
16,226,658
$ 32,219,255
Not Rated
Not Rated
Not Rated
29 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 3 - Cash and Investments (Continued)
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer that represent 5% or more of the total City investments.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit).

The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

The custodial risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as CAMP).

California Asset Management Program (CAMP)
The City is a voluntary participant in the California Asset Management Program (CAMP) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by CAMP for the entire CAMP portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by CAMP, which are recorded on an amortized cost basis. As of June 30, 2024 the City had $16,226,658 in CAMP.

The California Asset Management Program, doing business as the "CAMP", is a California joint powers authority created pursuant to Title 1, Division 7, Chapter 5 of the California Government Code. As a joint powers authority, CAMP provides professionally managed pooled investment programs for Participants.

CAMP is governed by a Board of Trustees. The City is a voluntary participant in CAMP, CAMP is a investment pool that provides public agencies the opportunity to invest funds on a cooperative basis in rated pools that are managed in accordance with state law with the primary objectives of offering participants safety, daily and next-day liquidity, and optimized returns. CAMP is managed as a stable NAV pool but does not meet all the specific criteria outlined in GASB 79 paragraph 4, therefore participants report their investments in the pool at fair value, provided by CAMP. 30 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 4 - Capital Assets
Capital asset activity of the governmental activities for the year ended June 30, 2024 is as follows:

Balance Balance
July 1, 2023 Additions Re tire me nts June 30, 2024
Governmental Activities
Capital assets, not being depreciated
Land $ 3,477,211 $ - $ - $ 3,477,211
Total capital a ssets, not being depreciated 3,477,211 3,477,211 Capital assets, being depreciated
Buildings 2,556,495 218,546 2,775,041
Improvements 63,128,187 3,621,254 66,749,441
Furniture and equipment 2,532,388 404,578 2,936,966
Vehicles 6,150,059 240,689 (97,095) 6,293,653
Total capital a ssets, being depreciated 74,367,129 4,485,067 (97,095) 78,755,101 Less accumulated depreciation for
Buildings (1 ,557,797) (59,777) (1 ,617,574)
Improvements (13,292,841) (1 ,572,806) (14,865,647)
Furniture and equipment (1 ,136,450) (510,930) (1,647,380) Vehicles (4,293,168) (230,326) 34,630 (4,488,864)
Total accumulated depreciation (20,280,256) (2,373,839) 34,630 (22,619,465) Total capital a ssets, being depreciated, net 54,086,873 2,111,228 (62,465) 56,135,636 Governmental activities capital assets, ne t $ 57,564,084 $ 2,111 ,228 $ (62,465) $ 59,612,847 Depreciation expense on capital assets was charged to the governmental functions as follows:

Governmental Functions:

General Government $ 93,210
Public Safety 408,308
Public Works 1,565,923
Parks and Community Services 228,157
Internal Service Fund 78,241
$ 2,373,839
31 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 4 - Capital Assets (Continued)
Capital assets activity of the business-type activities for the year ended June 30, 2024 is as follows:

Balance Balance
Jull: 1, 2023 Additions Re tire me nts June 30, 2024
Business-type Activities
Capital assets, not being depreciated
Land $ 1,391,382 $ - $ - $ 1,391,382
Total capital assets, not being depreciated 1,391 ,382 1,391,382 Capital assets, being depreciated
Buildings 1,140,025 171,785 1,311 ,8 10
Improvements 71 ,750,238 3,919,178 75,669,416
Furniture and equipment 13,396,633 175,583 13,572,216
Vehicles 1,878,296 125,219 2,003,515
Total capital assets, being depreciated 88,165,192 4,391 ,765 92,556,957 Less accumulated depreciation for
Buildings (970,233) (19,357) (989,590)
Improvements (20,437,977) (1,558,900) (21,996,877)
Furniture and equipment (19,045,382) (330,269) (19,375,651) Vehicles (1,536,983) (162,387) (1 ,699,370)
Total accumulated depreciation (41 ,990,575) (2,070,913) ( 44,061 ,488) Total capital assets, being depreciated, net 46,174,617 2,320,852 48,495,469 Business-type activites capital assets, net $ 47,565,999 $ 2,320,852 $ - $ 49,886,85 1 Depreciation expense on capital assets was charged to the business-type functions as follows:

Business-Type Functions:

Water
Sewer
Disposal
Airport
$
$
580,478
1,243,346
85,777
161 ,3 12
2,070,913
32 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 5 - Long-term Liabilities
The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt.

The City's debt transactions for governmental-type activities are summarized below and discussed in detail thereafter:

Balance Balance
Jul}'. 1, 2023 Additions Retirements June 30, 2024
Governmental Activi!Y Long Term Debt
N et pension liability $ 15,713,034 $ 899,129 $ - $ 16,612,163 N et OPEB liability $ 5,412,067 $ 266,987 $ - $ 5,679,054 Compensated absences $ 588,372 $ 105,063 $ - $ 693,435
The City's debt transactions for business-type activities are summarized below and discussed in detail thereafter:

Business-type Activity Long Te rm D e bt
Direct Borrowings:
201 6 W astewater Refunding Revenue Bonds payable
Bond premiums
201 7 W ater Refunding Revenue Bonds
Bond premiums
201 9 W astewater Refunding Revenue Bonds
Net pension liability
Net OPEB lia bility
Compensated absences
Revenue Bonds Payable
Balance
July 1, 2023
$ 2,295,000
149,088
9,965,000
269,106
13,348,000
$ 26,026,1 94
$ 1,709,900
$ 1,162,358
$ 159,600
A dditions
$ -
$ -
$ 97,179
$ 57,342
$ 7,785
Balance Current
Re tire me nts June 30, 2024 Portion
$ (140,000) $ 2,155,000 $ 145,000
(11 ,542) 137,546 11 ,542
(500,000) 9,465,000 520,000
(18,996) 250,110 18,996
(878,000) 12,470,000 900,000
$ (1,548,538) $ 24,477,656 $ 1,595,538
$ - $ 1,807,079
$ - $ 1,219,700
$ - $ 167,385
2016 Wastewater Refunding Bonds - In 2016 the City issued $3,160,000 of Wastewater Revenue Refunding Bonds. The proceeds from the issue were used to defease the 2007 Reedley Public Financing Authority Wastewater Revenue Bonds in the amount of $3,385,000. Interest on the bonds ranges from

2.000% to 4.000%. The City signed an agreement with principal payments plus interest due June 1 and December 1 of each year beginning in 2016 through 2036. 33 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 5 - Long-Term Liabilities (Continued)
The annual debt requirements due under the terms of the 2016 Wastewater Refunding Bonds are as follows:

Year Ending June 30 Principal Interest Total
2025 $ 145,000 $ 77,950 $ 222,950
2026 150,000 72,150 222,150
2027 155,000 66,150 221,150
2028 165,000 59,950 224,950
2029 170,000 53,350 223,350
2030-2034 945,000 162,100 1,107,100
2035-2036 425,000 19,200 444,200
Total $ 2,155,000 $ 510,850 $ 2,665,850
2017 Water Refunding Bonds - In 2018 the City issued $12,615,000 of Water Refunding Revenue Bonds.

The proceeds from this issue were used to defease the 2007 Reedley Public Financing Authority Water Revenue Bonds in the amount of $12,475,000. Interest on the bonds ranges from 2.000% to 5.000%. The City signed an agreement with principal payments plus interest due March 1 and September 1 of each year beginning in 2018 through 2037.

The annual debt requirements due under the terms of the 2017 Water Refunding Bonds are as follows:

Year Ending June 30 Principal Interest Total
2025 $ 520,000 $ 344,281 $ 864,281
2026 540,000 320,381 860,381
2027 570,000 292,631 862,631
2028 600,000 263,381 863,381
2029 625,000 239,006 864,006
2030-2034 3,425,000 876,116 4,301 ,116
2035-2038 3,185,000 239,281 3,424,281
Total $ 9,465,000 $ 2,575,077 $ 12,040,077
2019 Wastewater Revenue Refunding Bonds - In December 2019 the City issued $15,674,000 of Wastewater Bonds. The proceeds from this issue were used to pay off the note payable with the State Water Resources Control Board in the amount of $12,475,000. Interest on the bonds ranges from 2.400% to

2.570%. The City signed an agreement with principal payments plus interest due June 1 and December 1 of each year beginning in 2020 through 2036.
34 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 5 - Long-Term Liabilities (Continued)
The annual debt requirements due under the terms of the note are as follows:

Year Ending June 30 Principal Interest Total
2025 $ 900,000 $ 320,479 $ 1,220,479
2026 924,000 297,349 1,221,349
2027 947,000 273,602 1,220,602
2028 972,000 249,264 1,221,264
2029 997,000 224,284 1,221,284
2030-2034 4,249,000 723,763 4,972,763
2035-2036 3,481,000 90,978 3,571,978
Total $ 12,470,000 $ 2,179,719 $ 14,649,719
Note 6 - Interfund Transactions
Due From and To Other Funds
Interfund receivables and payables consist of short-term loans resulting from regular transactions. These loans are expected to be repaid as soon as the borrowing fund has cash. Individual fund interfund receivables and payables balances as of June 30, 2024 are as follows:

Due From Due To
Governmental Funds:

General Fund $ 161,451 $
Gas Tax Fund 36,878
LEAP Grant Fund 51,968
Public Education/Government Access Fund 7,963
Community Facilities District Fund 56,658
Senior Center 7,984
$ 161,451 $ 161,451
35 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 6 - Interfund Transactions (continued)
Transfers In and Transfers Out
In general, the City uses interfund transfers to (1) move revenues from the funds that collect them to the funds' that statute or budget requires to expend them, (2) use unrestricted revenues collected in the General Fund to help finance various programs and capital projects accounted for in other funds in accordance with budgetary authorization, and (3) move cash to debt service funds from the funds responsible for payment as debt service payments become due. In general, the effect of the interfund activity has been eliminated from the governmentwide financial statements.

Transfers to Transfer from .

Other Funds Other Funds
Major Funds:

General Fund $ 263,464 $
Street Projects Funds 28,869
Developer Impact Fees Fund 56,468
Non Major Funds:

Gas Tax 26,476
Senior Center 22,503
Public Safety Sales Tax Fund 94,733
COPS Program 4,498
American Rescue Plan Act 673,986
Groundwater Treatment Settlement 205,213
Community Facilities District 1,448,676
Local Transportation Fund 145,851
Landscape Maintenance 2,859
Enterprise Funds:

Disposal Fund 662,875
Water Fund 26,188
Sewer Fund 427,477
Airport Fund 578,583
Internal Service Fund 1,608,151
$ 3,138,435 $ 3,138,435
• $1,608,151 was transfened into the Internal Service Fund from various funds to cover fleet management and health insurance premiums.
• $673,986 transfened out of American Rescue Plan Act was to covered various capital projects. • $1,448,676 was transfened out of Community Facilities District to the General Fund to cover overhead related to police, fire , parks and administrative costs. 36 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 7 - Pension Plan
Plan Description - The City contributes to the California Public Employees' Retirement System (PERS), an agent multiple-employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries.

PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and city ordinance. Copies of PERS' annual financial report may be obtained from their Executive Office - 400 P Street - Sacramento, CA 95814.

Funding Policy - Participants are required to contribute eight percent (nine percent for safety employees) of their annual covered salary. The City contributes the employees required share for administrative and public works employees and 5% and 4% of the police and dispatchers required share, respectively. The City is required to contribute at an actuarially determined rate; the current rate is 7 .680 - 11 .840 percent for non-safety employees and 13.540 - 22.830 percent for safety employees of annual covered payroll. The contribution requirements of plan members and the City are established and may be amended by PERS.

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

The Plans' provisions and benefits in effect at June 30, 2024, are summarized as follows:

Hire Date
Benefit Formula
Benefit Vesting Schedule
Benefit Payments
Retirement Age
Monthly Benefits, as a % of Eligible Compensation
Required Employee Contribution Rates
Required Employer Contribution Rates
Miscellaneous
Prior to
January 1, 2013

2.0% at 55;
maximum2%
COLA
5 years service
monthly for life
55 2.00%

7.00%

11.840%
Safety Police & Fire
Prior to
January 1, 2013

3.0% at 55;
maximum2%
COLA
5 years service
monthly for life
55 3.00%

9.00%

22.830%
37 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 7 - Pension Plan (continued)
Hire Date
Benefit Formula
Benefit Vesting Schedule
Benefit Payments
Retirement Age
Monthly Benefits, as a% of Eligible Compensation
Required Employee Contribution Rates
Required Employer Contribution Rates
PEPRA
Miscellaneous
On or After
January 1, 2013

2.0% at 62;
maxirnum2%
COLA
5 years service
monthly for life
62 2.00%

6.75%

7.680%
PEPRA Safety
On or After
January 1, 2013

2.7% at 57;
maximum 2%
COLA
5 years service
monthly for life
57 2.70%

13.00%

13.540%
Contributions - Section 20814( c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on July 1 following the notice of a change in the rate. Funding contributions for both Plans 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 contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2024, the contributions recognized as part of the pension expense was $2,554,010.

Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions - As of June 30, 2024, the City reported net pension liabilities for its proportionate shares of the net pension liability as follows:

Proportionate Share of
Net Pension Liability
Miscellaneous $ 10,221,039
Safety
Total $
8,198,203
18,419,242
38 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 7 - Pension Plan (continued)
The City's net pension liability is measured as the proportionate share of the net pension liability. The net pension liability of each Plan is measured as of June 30, 2023, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 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 plans relative to the projected contributions of all participating employers, actuarially determined. The City's proportionate share of the net pension liability for the Plan as of June 30, 2023 and 2024 was as follows:

Proportion - June 30, 2023
Proportion - June 30, 2024
Change - Increase/(Decrease)
Miscellaneous

0.20669%

0.20440%
-0.00229%
Safety

0.11281%

0.10968%
-0.00313%
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
Pension contributions subsequent to
measurement date
Change in employer's proportion
Differences between employer's contributions and
proportionate share of contributions
Differences between expected and actual
expenence
Changes of assumptions
Differences between projected and actual
investment earnings
Total
Deferred Outflows
of Resources
$
$
2,693,264
75,673
395,540
2,256,767
1,095,548
1,644,080
8,160,872
Deferred Inflows of
Resources
$
248,070
283,663
132,526
$ 664,259
$2,693,264 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025 . Other amounts reported as deferred outflows or resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
June 30
2025 $ 1,465,655
2026 1,031 ,039
2027 2,227,853
2028 78,800
$ 4,803,347
39 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 7 - Pension Plan (continued)
Actuarial Methods and Assumptions - The collective total pension liability for the June 30, 2023 measurement period was determined by an actuarial valuation as of June 30, 2022, with update procedures used to roll forward the total pension liability to June 30, 2023 . The collective total pension liability was based on the following assumptions:

Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Payroll Growth
Salary Increases
Mortality Rate Table
Post Retirement Benefit Increase
June 30, 2022
June 30, 2023
Entry-Age Normal Cost Method in
accordance with the requirements of
GASB Statement No. 68

6.90%

2.30%

2.30%
Varies by Entry Age and Service
Derived using CalPERS' Membership 1
Date for all Funds
Contract COLA up to 2.3% until
Purchasing Power Protection
Allowance Floor on Purchasing Power
applies
1 The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.

Change of assumptions - None.
40 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 7 - Pension Plan (continued)
Discount rate - The discount rate used to measure the total pension liability for PERF C was 6.9%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially dete1mined. 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. The long-term expected rate ofreturn on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return ( expected rate of 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 longterm market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11 + years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The long-term expected real rates ofreturn by asset class can be found in CalPERS' Comprehensive Annual Financial Report for the fiscal year ended June 30, 2023 . 41 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 7 - Pension Plan (continued)
The table below reflects long-term expected real rates of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.

The geometric rates of return are net of administrative expenses.

Assumed Asset Real Return I ,
Asset Class Allocation
2 Years 1-10
Global Equity - cap-weighted 30% 4.45%
Global Equity - non-cap-weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 27.00%
Mortgage-backed Securities 5% 50.00%
Investment Grade Corporates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage -5% -0.59%
Total 100%
(1) An expected inflation of 2.3% used for this period
(2) Figures are based on the 2021-22 Asset Liability Management study Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following presents the City's proportionate share of the net pension liability for each Plan, calculating using the discount rate of each Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is I-percentage point lower (5.90%) or I-percentage point higher (7.90%) than the current rate:

Current
1 % Decrease Discount Rate 1% Increase
(5.90%) (6.90%) (7.90%)
Miscellaneous $ 15,476,999 $ 10,221 ,039 $ 5,894,932
Safety $ 12,168,188 $ 8,198,203 $ 4,952,457
Pension Plan Fiduciary Net Position - Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.

Payable to the Pension Plan - At June 30, 2024, the City has no reported outstanding amount of contributions payable to the pension plan required for the year ended June 30, 2024. 42 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 8 - Post-Employment Health Care Benefits
Plan Description
The City provides medical benefits to qualified retirees and dependants (the Plan) as authorized and specified by Resolution 2020-021 adopted by the City Council of April 28, 2020. The City opted out of the Public Employee's Medical and Hospital Care Act effective January 1, 2014. Prior to this date, the City provided medical benefits to retirees under plans offered by California Public Employee Retirements Systems (CalPERS), an agent multiple -employer defined healthcare plan.

The Plan is a multi-tier benefit stmcture, specifically Tiers 1, 2 and 3; where eligible employees and dependants receive differing level of benefits. The City is reponsible for establishing and amending the eligiblity, benefit levels and funding policy of the Plan. As of June 30, 2024, the inaugural and latest actuarial study available, there were 115 active full-time employees and 40 retirees covered by the Plan. There is no city contributions for retiree dental, vision, life insurance or Medicare Part B reimbursement.

Eligibility Requirements
In order to be eligible for these benefits, an employee must retire directly from the City under CalPERS with 10 years of City service as a full-time regular employee and be at least 55 years of age at retirement. The length of service requriement does not apply to Tier 1 benefits.

Tier I - Benefits for current retirees and their dependents are as follows:

A) For current retirees and/or their dependents who are not yet eligible for Medicare:

For the retiree only, City shall contribute towards the retiree's monthly medical coverage at the same rate as the City contributes towards Unrepresented employees' monthly medical coverage, as such contribution may be modified from time to time; and
City shall contribute up to $500.00 monthly, total, for medical coverage of dependents who are not yet eligible for Medicare, with retirees responsible for paying the difference in cost between the medical plan and City contribution; and
The retiree must notify the City within thirty (30) days of the retiree's and/or dependent's eligibility for Medicare. Only the surviving spouse or registered domestic partner of an eligible retiree shall remain eligible for the dependent benefit until his/her death or remarriage. 43 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 8 - Post-Employment Health Care Benefits ( continued) Eligibility Requirements ( continued)
B) For current retirees and/or their dependents who are eligible for Medicare:
i) City shall cover I 00% of the monthly premium for a group Medicare Supplement plan, as identified and selected by the City, for retiree and one dependent; and ii) City shall contribute up to $500.00 monthly, total, for medical coverage of dependents who are not yet eligible for Medicare, with retirees responsible for paying the difference in cost between the medical plan and City contribution; and iii) Subject to availability, only current retirees and their eligible dependents shall have access to a 'Freedom of Choice' option, whereupon the City, through its designated provider, will cover up to $251.76 per month ("Cap") for each retiree and his/her one dependent, for the reimbursement of premium cost for a Medicare Supplement and/or prescription drug plan of their choice; and
iv) The $251.76 Cap for the 'Freedom of Choice' option shall be adjusted annually, each January, by the change in premium (if applicable), from year to year, of the group Medicare Supplement Plan then currently being offered by the City to Medicare eligible retirees. The Cap shall always be $10.00 less than the group Medicare Supplement premium to help defray additional administrative costs of offering the 'Freedom of Choice' option. At no time shall the retiree/dependent receive in excess of the premium amount.
v) The 'Freedom of Choice' option shall not be available for new enrollment or re-enrollment after December 14, 2016.

C) Minimum eligibility requirements for current City retirees:
i) All current retirees must be at least 55 years of age as of the effective date of this resolution in order to continue receiving retiree medical benefits for themselves or their dependents. Retirees or dependents who were not enrolled in a City-provided retiree medical benefit as of the adoption date of Resolution 2013-083 (September 24, 2013) are not eligible to enroll in or otherwise receive retiree medical benefits. Affected retirees will not be permitted to purchase coverage in the City's medical plans. Retirees turning 55 years of age after the effective date of this resolution shall not be eligible for this City benefit.

Tier 2 - Benefits for current full-time regular City employees are as follows, subject to the following eligibility requirements:

A) Minimum eligibility requirements for current full-time regular City employees. To be eligible for retirement medical benefits, a full-time regular employee must: (i) retire under a regular or disability PERS retirement and enroll in City provided retirement medical benefits within 120 calendar days from voluntary separation from City employment; (ii) be at least 55 years of age at time of retirement; and (iii) have been employed by the City for a cumulative total of at least ten (I 0) years as a full-time regular employee. Employee must be a full-time regular employee at the time of retirement. No purchase of service credit is allowed. Voluntary separation from City employment shall mean any separation other than termination for cause. Termination for cause shall be deemed involuntary separation, and shall preclude such terminated employee from eligibility in and for this benefit. 44 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 8 - Post-Employment Health Care Benefits ( continued) Eligibility Requirements ( continued)
i) In order for an employee's dependent to be eligible for coverage, the dependent must be emolled in the employee's plan at the time an employee retires, subject to the employee meeting minimum eligibility requirements.

B) Employees with at least ten (10) years of cumulative service with the City as a full-time regular employee upon Retirement:
i) If the retiree is not eligible for Medicare, the City shall contribute either 50% of the medical premium for the retiree only, or the amount that the City then currently contributes towards Unrepresented employees' medical coverage as such contribution may be modified from time to time, whichever is less, using the menu of medical plans available to City employees, or if not available, plans identified and selected by the City; and ii) If the retiree is eligible for Medicare, City shall cover either 50% of the medical premium for the retiree and one dependent, or the amount that the City then currently conh·ibutes towards Unrepresented employees' medical coverage, whichever is less, for a group Medicare Supplement plan as identified and selected by the City; and iii) There shall be no coverage for more than one dependent; and iv) If the dependent is not Medicare eligible, the City shall contribute up to $250.00 monthly, total, for dependent medical coverage with retirees responsible for paying the difference in cost between the medical plan and City contribution.

C) Employees with at least twenty (20) years of cumulative service with the City as a full-time regular employee upon Retirement:
i) If the retiree is not eligible for Medicare, the City shall contribute either 80% of the medical premium for the retiree only, or the amount that the City then currently contributes towards Unrepresented employees' medical coverage, whichever is less, using the menu of medical plans available to City employees, or if not available, plans identified and selected by the City; and ii) If the retiree is eligible for Medicare, City shall cover either 80% of the medical premium for the retiree and one dependent, or the amount that the City then currently contributes towards Unrepresented employees' medical coverage, whichever is less, for a group Medicare Supplement plan as identified and selected by the City for retiree and one dependent only; and iii) There shall be no coverage for more than one dependent; and iv) If the dependent is not Medicare eligible, the City shall contribute up to $250.00 monthly, total, for dependent medical coverage with retirees responsible for paying the difference in cost between the medical plan and City contribution.

D) The retiree must notify the City within thirty (30) days of the retiree's and/or dependent's eligibility for Medicare. Only the surviving spouse or registered domestic partner of an eligible retiree shall remain eligible for the dependent benefit until his/her death or remarriage.

E) Full-time regular City employees who are working for the City in a full-time capacity as of September 24, 2013 , (Date of Adoption of Resolution 2013-083) who retire on or before December 31 , 2016, shall be eligible for the same City contributions to retiree medical benefits as current retirees as defined in Tier 1 above. Minimum eligibility requirements under Section 2.A shall still apply to subj ect employees, except that for the minimum eligibility requirement under Section 2.A (iii) shall not apply. 45 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 8 - Post-Employment Health Care Benefits (continued) Eligibility Requirements ( continued)
Tier 3 - No retiree benefits for future City employees:

A) No new employee or re-hired employee initially hired or re-hired on or after January 1, 2014 shall be eligible for the retiree or retiree dependent medical coverage provided herein, unless said employee was a full-time regular employee of the City prior to January 1, 2014.

B) Current part-time employees, notwithstanding the fact that they are currently employed by the City and may subsequently work for the City in a full-time regular capacity, shall not be eligible for retiree medical benefits, unless they begin work in a full-time regular capacity prior to January 1, 2014 and satisfy all other eligibility requirements. In other words, for purposes of determining eligibility for the retiree medical benefits, the date of hire shall be treated as the date upon which the current part-time employee begins his/her assignment as a full-time regular employee.

The City reported that the only OPEB provided is medical plan coverage.

Employees Covered
Membership in the plan consisted of the following at June 30, 2024, the date of the latest actuarial valuation:

Summary of P Ian Member Counts
Inactive employees receiving benefits 38
Inactive employees entitled to but not receiving benefits 0 Participating active employees 42
Contributions
The contribution requirements of plan members and the City are established and may be amended by the City. The City determines the required contributions using the Entry Age Normal Cost Method. The required contribution is based on projected pay-as-you-go financing requirements. 46 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 8 - Post-Employment Health Care Benefits (continued) Actuarial Assumptions
The City's net OPEB liability was measured as of June 30, 2023 , and the total OPEB_ liability used to calculate the net OPEB liability was determined by an actuarial valuation date as of June 30, 2024.

Actuarial Assumptions:

Salary Increase 2.75%

2.50%

6.25%
Inflation Rate
Investment rate of return
Health Cost Trend Rates
Mortality rate

3.45-6.25% (Medicare) and 8.5% (Non-Medicare)
CalPERS 2000-2019 Experience Study, Mortality
projected fully generational with Scale MP-2021
Long Term Expected Rate of Return
Asset Class Component
Global Equity
Fixed Income
TIPS
Commodities
REITS
Target Allocation
CERBT-Strategy 1
49%
23%
5%
3%
20%
Assumed Long-term Rate of Inflation
Expected Long-term Net Rate of Return, Rounded
Expected Real
Rate of Return

4.56%

1.56%
-0.08%

1.22%

4.06%

2.50%

6.25%
The long-term expected real rates ofretum are presented as geometric means. * Policy target effective on the measurement date (June 30, 2023). Changes to the target investment allocation effective October 1, 2018 do not have a significant impact on the expected long-term rate of return.

Discount Rate
The rate of return is based on a yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher.
47 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 8 - Post-Employment Health Care Benefits ( continued) Changes in the Net OPEB Liability
Increase (Decrease)
Total OPEB Fiduciary
Liability Net Position
(a) (b)
Balance at June 30, 2023 (Measurement Date) $ 7,049,243 $ 474,818 Changes recognized for the measurement period:

Service cost 116,378
Interest on TOL 437,543
Actual vs. expected experience (343,455)
Assumption changes 556,549
Contributions - employer 410,008
Net investment income 32,923
Benefit payments (329,888) (329,888)
Benefit payments (245)
Net changes 437,127 112,798
Balance at June 30, 2024 (Measurement date
June 30, 2023) $ 7,486,370 $ 587,616
Net OPEB
Liability
(a) - (b)
$ 6,574,425
116,378
437,543
(343,455)
556,549
(410,008)
(32,923)
245
324,329
$ 6,898,754
The only assumption change reflected during this period is the change in the discount rates as required by GASB 75.

Sensitivity of the City's Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the net OPEB 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:

Net OPEB liability
1 % Decrease
(5.25%)
$ 7,858,818
Discount Rate
(6.25%)
$ 6,898,753
1 % Increase
(7.25%)
$ 6,100,873
Sensitivity of the City's Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the net OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1 percentage-point lower or 1 percentage-point higher than the current rate:

Net OPEB liability
Health Care
Trend Rate -1 %
$ 6,082,001
Health Care
Current Trend
Rate
$ 6,898,753 $
Health Care
Trend Rate
+1%
7,880,885
48 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 8 - Post-Employment Health Care Benefits ( continued) Healthcare cost trend rate was assumed to start at 7% and grade down to 4% for years 2076 and thereafter.

OPEB Expense and Deferred Outflows/Inflows Related to OPEB For the year ended June 30, 2024, the City recognized OPEB credit of $373,610. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows
of Resources
OPEB contributions subsequent to measurement date $
Difference between expected and actual experience
Change in assumptions
Net difference between projected and actual return on
investments
$
473,002
460,592
39,613
973,207
Deferred Inflows
of Resources
$
$
1,135,488
156,749
1,292,237
The City will recognize the Deferred Contributions in the next fiscal year. Other amounts reported as deferred outflows ofresources related to OPEB will be recognized as OPEB expense as follows:

Year Ended
June 30
2025 $ (422,188)
2026 (352,293)
2027 (50,834)
2028 3,893
2029 29,390
Thereafter
49 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 9 - Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows or resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and thus, will not be recognized as an outflow of resources (expense/expenditure) until then. The City reports $8,160,872 in deferred outflows related to net pension liability and $973,207 in deferred outflows related to net OPEB liability. See Note 7 and Note 8 for more details.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represent an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City reports $664,259 in deferred inflows related to net pension liability and $1,292,237 in deferred inflows related to net OPEB liability.

See Note 7 and Note 8 for more details.

Note 10 - Risk Management
The City participates with other public entities in a joint venture under a joint powers agreement which establishes the Central San Joaquin Valley Risk Management Authority (CSJVRMA). The relationship between the City and CSNRMA is such that CSJVRMA is not a component unit of the City for financial reporting purposes.

The City is covered for the first $1,000,000 of each general liability claim and $500,000 of each worker's compensation claim through the CSNRMA. The City has the right to receive dividends or the obligation to pay assessments based on a formula which, among other expenses, charges the City's account for liability losses under $10,000 and workers' compensation losses under $10,000. The CSNRMA purchases excess reinsurance from $1,000,000 to $15,000,000. The CSJVRMA participates in an excess pool which provides Workers' Compensation coverage from $500,000 to $1,500,000 and purchases excess reinsurance above $1,500,000 to the statutory limit.

The CSNRMA is a consortium of 55 cities in San Joaquin Valley, California. It was established under the provisions of California Government Code Section 6500, et. seq. The CSNRMA is governed by a Board of Directors, which meets three to four times each year, consisting of one member appointed by each member city. The day-to-day business is handled by a management group employed by the CSNRMA. The financial statements ofCSNRMA can be obtained at 1831 K Street, Sacramento, CA 95814.

The latest audited financial information and the most current information available for CSNRMA for fiscal year ended June 30, 2024 is as follows:

Total assets
Total liabilities
Net position
Total revenues
Total expenses
Increase/( decrease) in net position
$ 179,635,612
144,400,470
$ 35,235,142
$ 95,596,916
94,324,180
$ 1,272,736
50 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Note 11 - Contingencies
Federal and State Government Programs - The City participates in several federal and state grant programs. These programs have been audited, as needed, in accordance with the provisions of the Uniform Guidance and applicable state requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures, which may be disallowed by the granting agencies, cannot be determined at this time.

The City expects such amounts, if any, to be immaterial.

Note 12 - Subsequent Events
The City evaluated subsequent events for recognition and disclosure through January 2, 2025, the date which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2024 that required recognition or disclosure in such financial statements.
51 REQUIRED SUPPLEMENTARY INFORMATION

CITY OF REEDLEY

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive /
Original Final Amounts (Negative)
Revenue
Intergovernmental $ 2,595,890 $ 2,595,890 $ 2,655,875 $ 59,985 Taxes 10,966,066 10,966,066 11,095,085 129,019
Charges for services 1,083,725 1,083,725 1,466,570 382,845 Licenses, permits, and impact fees 464,500 464,500 838,908 374,408 Other 118,152 118,152 224,932 106,780
Investment income, rent income and wrreali: 80,226 80,226 555,088 474,862 Total revenue 15,308,559 15,308,559 16,836,458 1,527,899 Expenditures
Current
General government 2,461,880 2,461,880 2,234,683 227,197 Public ways and facilities 3,745,555 3,745,555 1,828,719 1,916,836 Public safety 7,608,876 7,608,876 7,765,780 (156,904)
Community services 3,300,953 3,300,953 3,211,862 89,091 Community development 1,172,464 1,172,464 1,400,469 (228,005) Capital outlay 2,608,602 2,608,602 977,094 1,631,508
Total expenditures 20,898,330 20,898,330 17,418,607 3,479,723 Revenue over (under) expenditures (5,589,771) (5,589,771) (582,149) 5,007,622 Other Financing Sources/(Uses)
Proceeds from sale of assets 919 919
Transfers in/( out) (5,282,673) (5,282,673) 263,464 5,546,137 Total other financing somces/(uses) (5,282,673) (5,282,673) 264,383 5,547,056 Net Change in Fund Balance $ (10,872,444) $ (10,872,444) (317,766) $ 10,554,678 Fund Balance
Beginnmg of year 11 ,383,338
End of year $ 11,065,572
52 CITY OF REEDLEY

BUDGETARY COMPARISON SCHEDULE
DEVELOPMENTIMPACTFEESCAflTALPROJECTFUND
YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive /
Original Final Amounts (Negative)
Revenue
License, permits, and impact fees $ 627,800 $ 627,800 $ 3,054,125 $ 2,426,325 Investment, rent income, and unrealized losses 15,300 15,300 372,049 356,749 Total revenue 643,100 643,100 3,426,174 2,783,074
Expenditures
Current
Public ways and facilities 230,521 230,521 220,004 10,517 Community services 1,347,764 1,347,764 1,347,764
Capital outlay 860 000 860 000 743 673 1162327
Total expenditures 2,438,285 2,438,285 963,677 1,474,608 Revenue over (under) expenditures (1,795,185) (1 ,795,185) 2,462,497 4,257,682 Other Financing Sources/(Uses)
Transfers in/( out) (56,460) (56,460) (56,468) (8)
Total other financing sources/(uses) (56,460) (56,460) (56,468) (8) Net Change in Fund Balance $ (1,851,645) $ (1,851,645) 2,406,029 $ 4,257,674 Fund Balance
Beginning of year 5,822,865
End of year $ 8,228,894
53 CITY OF REEDLEY

BUDGETARY COMPARISON SCHEDULE

STREET PROJECTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
Budgeted Amounts
Original Final
Revenue
Intergovernmental $ 1,634,150 $ 1,634,150
Taxes 2,403,016 2,403,016
Investment and rent income $ 5,550 $ 5,550
Total revenue 4,042,716 4,042,716
Expenditures
Current
Public ways and facilities 1,163,428 1,163,428
Capital outlay 3,016,237 3,016,237
Total expenditures 4,179,665 4,179,665
Revenue over (under) expenditures (136,949) (136,949)
Other Financing Sources/(Uses)
Transfers in/( out)
Total other financing sources/(uses)
Net Change in Fund Balance $ (136,949) $ (136,949)
Fund Balance
Beginning of year
End of year
Variance with
Final Budget
Actual Positive /
Amounts (Negative)
$ 1,686,940 $ 52,790
1,567,461 (835,555)
$ 209,602 $ 204,052
3,464,003 (578,713)
642,065 521 ,363
2,164,271 851 ,966
2,806,336 1,373,329
657,667 794,616
(28,869) (28,869)
(28,869) (28,869)
628,798 $ 765,747
3,637,176
$ 4,265,974
54 CITY OF REEDLEY
SCHEDULE OF CHANGES IN THE CITY'S NET OPEB LIABILITY AND RELATED RATIOS YEAR ENDED JUNE 30, 2024 Increase (Decrease)
Total OPEB Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a) - (b) -
Balance at June 30, 2023 (Measurement Date) $ 7,049,243 $ 474,818 $ 6,574,425 Changes recognized for the measurement period:

Service cost 116,378 116,378
Interest on TOL 437,543 437,543
Actual vs. expected experience (343,455) (343,455)
Assumption changes 556,549 556,549
Contributions - employer 410,008 (410,008)
Net investment income 32,923 (32,923)
Benefit payments (329,888) (329,888)
Benefit payments (245) 245
Net changes 437,127 112,798 324,329
Balance at June 30, 2024 (Measurement date
June 30, 2023) $ 7,486,370 $ 587,616 $ 6,898,754
2018 2019 2020 2021 2022 2023 2024
Net OPEB Liability/(Asset) $ 8,560,476 $ 8,921,105 $ 6,806,852 $6,953,479 $6,357,573 $ 6,574,425 $6,898,753 Fiduciary Net Position as a percentage
of the total OPEB Liability 1.2% 1.8% 3.3% 4.0% 6.8% 6.7% 7.8% Covered employee payroll* n/a $ 5,274,550 $ 5,029,499 $4,535,546 $4,531,132 $ 4,258,807 $4,126,353 Net OPEB Liability as a percentage of covered
employee payroll n/a 169.1 % 135.3% 153.3% 140.3% 154.4% 167.2% * For the 12-month period ending on June 30, 2023 (Measurement Date). 55 CITY OF REEDLEY

SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY LAST 10 YEARS*
AS OF JUNE 30, 2024
Miscellaneous
Proportionate share of the Plan's fiduciary net
net pension liability as a position as a
Proportion of the net Proportionate share of Covered - employee percentage of Plan's fiduciary net percentage of the Total 2ension liabili~ the net 2ension liabili~ 2aY!oll covered-em2loJ'.'.ee 2aY!oll 2osition Pension Liabili~ 2014 0.07020% $ 4,368,215 $ 3,808,708 114.69% $ 19,641,792 81.81 % 2015 0.14007% $ 3,842,777 $ 4,114,174 93.40% $ 19,808,667 83.75% 2016 0.17859% $ 6,026,912 $ 4,109,603 146.65% $ 20,698,895 77.45% 2017 0.1 8146% $ 7,040,068 $ 4,595,946 153.18% $ 22,427,176 76.11% 2018 0.18145% $ 6,838,511 $ 4,825,079 141.73% $ 24,293,573 78.03% 201 9 0. 18747% $ 7,507,227 $ 4,837,036 169.32% $ 25,491,960 77.25% 2020 0. 19416% $ 8,190,011 $ 4,754,975 172.24% $ 26,245,185 76.22% 2021 0.24484% $ 4,649,020 $ 4,918,139 94.53% $ 30,346,917 86.72% 2022 0.20669% $ 9,671 ,379 $ 4,780,857 202.29% $ 27,690,055 74.11% 2023 0.20440% $ 10,221 ,039 $ 5,469,397 186.88% $ 28,641 ,259 73 .70% Safe
Proportionate share of the Plan's fiduciary net
net pension liability as a position as a
Proportion of the net Proportionate share of Covered - employee percentage of Plan's fiduciary net percentage of the Total pension liability the net pension liability payroll covered-employee payroll position Pension Liability 2014 0.11435% $ 4,289,120 $ 1,864,155 230.08% $ 12,420,390 74.33% 2015 0.10252% $ 1,471 ,316 $ 1,839,986 79.96% $ 13,462,868 76.12% 201 6 0.10121% $ 5,241,949 $ 1,859,282 281.93% $ 13,459,556 71.97% 2017 0.09928% $ 5,931,917 $ 2,044,067 290.20% $ 14,775,186 71.35% 2018 0.10068% $ 5,907,614 $ 2,137,197 276.42% $ 16,454,840 73.58% 201 9 0.10153% $ 6,338,313 $ 1,995,800 317.58% $ 17,870,516 73.58% 2020 0.10364% $ 6,905,156 $ 2,100,196 328.79% $ 17,540,296 71.75% 2021 0.12406% $ 4,354,036 $ 2,009,461 216.68% $ 20,364,944 82.39% 2022 0.11281% $ 7,751,555 $ 2,183,147 355.06% $ 19,215,517 71.26% 2023 0.10968% $ 8,198,203 $ 2,581,406 317.59% $ 20,741 ,305 71.67% 56 CITY OF REEDLEY

SCHEDULE OF CONTRIBUTIONS
LAST 10 YEARS;!·
AS OF JUNE 30, 2024
Miscellaneous
Contributions in
Contractually required relation to the Contributions as a contribution (actuarially actuarially determined Contributions percentage of covereddetermined) contributions deficiency (excess) Covered-employee payroll employee payroll 2014 $ 456,053 $ (456,053) $ - $ 3,808,708 10.85%
2015 $ 283,216 $ (283,216) $ - $ 4,114,174 10.85%
2016 $ 561,583 $ (561,583) $ - $ 4,109,603 13.67%
2017 $ 624,739 $ (624,739) $ - $ 4,595,946 13.59%
2018 $ 699,756 $ (699,756) $ - $ 4,825,079 14.50%
2019 $ 810,084 $ (810,084) $ - $ 4,837,036 16.75%
2020 $ 837,930 $ (837,930) $ - $ 4,754,975 17.62%
2021 $ 963,985 $ (963,985) $ - $ 4,918,139 19.60%
2022 $ 1,208,461 $ (1,208,461) $ - $ 4,780,857 25.28%
2023 $ 1,321,390 $ (1 ,321 ,390) $ - $ 5,469,397 24.16% 2024 $ 1,374,639 $ (1 ,374,639) $ - $ 5,633,479 24.40%
Safety
Contributions in
Contractually required relation to the Contributions as a contTibution ( actuarially actuarially determined Contributions percentage of covereddetennined) contributions deficiency (excess) Covered-employee pal!:oll employee payroll 2014 $ 479,745 $ (479,745) $ - $ 1,864,155 25.74%
2015 $ 533,911 $ (533,911) $ - $ 1,839,986 29.02%
2016 $ 533,061 $ (533,061) $ - $ 1,859,282 28.67%
2017 $ 587,174 $ (587,174) $ - $ 2,044,067 28.73%
2018 $ 646,908 $ (646,908) $ - $ 2,137,197 30.27%
2019 $ 714,848 $ (714,848) $ - $ 1,995,800 35.82%
2020 $ 768,490 $ (768,490) $ - $ 2,100,196 36.59%
2021 $ 869,214 $ (869,214) $ - $ 2,009,461 43.26%
2022 $ 1,077,069 $ (1 ,077,069) $ - $ 2,183,147 49.34%
2023 $ 1,232,620 $ (1,232,620) $ - $ 2,581,406 47.75%
2024 $ 1,318,625 $ (1 ,318,625) $ - $ 2,658,848 49.59%
57 SUPPLEMENTAL ONLY INFORMATION

CITY OF REEDLEY

COMBINING BALANCE SHEET

NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024 •
Special Revenue Funds
Public SB2 City Bond Local American Rescue
Gas Safeti Tax Planning Grant Funds Trans po rtatio n Plan Act ASSETS
Cash and investments $ - $ 1,159,973 $ - $ 29,330 $ 1,777,223 $ 1,628,724 Due from other governments 58,939 326,734 311,011
Total assets $ 58,939 $ 1,486,707 $ - $ 29,330 $ 2,088,234 $ 1,628,724

LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable and accrued expense 22,061 60,162 79,844 4,200 Due to other funds 36,878
Total liabilities 58,939 60,162 79,844 4,200
Fund Balance
Restricted
Public ways and facilities 2,008,390
Public safety programs 1,426,545
Community services
Capital projects and improvements 29,330 1,624,524
Unassigned
Total fund balance 1,426,545 29,330 2,008,390 1,624,524 Total liabilities and fund balance $ 58,939 $ 1,486,707 $ - $ 29,330 $ 2,088,234 $ 1,628,724 58 CITY OF REEDLEY

COMBINING BALANCE SHEET

NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
- Special Revenue Funds
Public
Community Groundwater Education/
Facilities Downtown Blighted Treatment Government
District Streets cape Properties Settlement Access
ASSETS
Cash and investments $ - $ 10,142 $ 103,291 $ 974,385 $ Due from other governments - - - - 5,760
Total assets $ - $ 10,142 $ 103,291 $ 974,385 $ 5,760

LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable and accrued expense - 2,574 2,139 - 1,100 Due to other funds 56,658 - - - 7,963
Total liabilities 56,658 2,574 2,139 - 9,063
Fund Balance
Restricted
Public ways and facilities - 7,568 101,152
Public safety programs
Community services
Capital projects and improvements
Unassigned (56,658) - - 974,385 (3,303)
Total fund balance (56,658) 7,568 101,152 974,385 (3,303) Total liabilities and fund balance $ - $ 10,142 $ 103,291 $ 974,385 $ 5,760 59 CITY OF REEDLEY

COMBINING BALANCE SHEET

NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
Special Revenue Funds
Community
Development
COPS Block Senior Landscape Leap
Program Grant Center Maintenance Grant Total
ASSETS
Cash and investments $ 97,017 $ 39,629 $ - $ 220,345 $ - $ 6,040,059 Due from other governments 643 7,984 57,643 768,714
Total assets $ 97,017 $ 40,272 $ 7,984 $ 220,345 $ 57,643 $ 6,808,773

LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable and accrued expense 5,015 20,691 5,675 203,461 Due to other funds - 7,984 - 51 ,968 161,451 -
Total liabilities 5,015 - 7,984 20,691 57,643 364,912
Fund Balance
Restricted
Public ways and facilities - - 199,654 - 2,316,764
Public safety programs 92,002 - - - 1,518,547
Community services - 40,272 - - 40,272
Capital projects and improvements - - - 1,653,854
Unassigned - - - 914,424
Total fund balance 92,002 40,272 - 199,654 - 6,443,861
Total liabilities and fund balance $ 97,017 $ 40,272 $ 7,984 $ 220,345 $ 57,643 $ 6,808,773 60 CITY OF REEDLEY

COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE

NON-MAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024 . Special Revenue Funds
Gas Public SB2 City Bond Local American Rescue
Tax Safet~ Tax Planning Grant Funds Trans po rtatio n Plan Act Revenue
Intergovernmental $ - $ - $ 31,760 $ - $ 1,438,677 $
Taxes and assessments 684,748 1,736,863
Charges for services
Other revenue 1,005 730 51,705
Investment income/(unrealized losses) 92 64,520 2,767 89,958 Total revenue 685,845 1,802,113 31,760 2,767 1,580,340
Expc nditure s
Current
General government
Public ways and facilities 660,797 847,224 140,974
Public safety 1,495,388
Community development 34,285 31,760
Capital outlay 113,471 35,174 33,113
Total expenditures 660,7_2_7 1,643,144 31,760 882,398 174,087 Revenue over (under) expenditures 25,048 158,969 2,767 697,942 (174,087) Other financing sources/(uses)
Operating transfers in/( out), net {26,476) (94,733) {60,958) {145,851) {673,986) Total other financing sources/(uses) (26,476) (94,733) (60,958) (145,851) (673,986) Change in Fund Balance (1,428) 64,236 (58,191) 552,091 (848,073) Fund Balance
Beginning of year 1,428 1,362,309 87,521 1,456,299 2,472,597 End of year $ - $ 1,426,545 $ - $ 29,330 $ 2,008,390 $ 1,624,524 61 CITY OF REEDLEY

COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE

NON-MAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
-------------------------------------------------- Seecial Revenue Funds Public
Community Groundwater Educational/
Facilities Downtown Blighted Treatment Government
District Streetscaee Proeerties Settlement Access
Revenue
Intergovernmental $ - $ - $ 141,650 $ - $
Taxes and assessments 1,213,263 23,672
Charges for services 21,247
Other revenue 1,380
Investment income/(unrealized losses) 1,054 3,431 60,875 Total revenue 1,213,263 23,681 145,081 60,875 23,672
Expe nditurc s
Current
General government 31,368
Public ways and facilities 38,733 30,975 135,820 213,815 Public safety
Community development
Capital outlay
Total expenditures 38,733 30,975 135,820 213,815 31,368 Revenue over (under) expenditures 1,174,530 (7,294) 9,261 (152,940) (7,696) Other financing sources/(uses)
Operating transfers in/(out), net (1,448,676) 60,958 (205,213) Total other financing sources/(uses) (1,448,676) 60958 (205,213) Change in Fund Balance (274,146) (7,294) 70,219 (358,153) (7,696) Fund Balance
Beginning of year 217,488 14,862 30,933 1,332,538 4,393 End of year $ (56,658) $ 7,568 $ 101,152 $ 974,385 $ (3,303) 62 CITY OF REEDLEY

COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE

NON-MAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
S ecial Revenue Funds
Community
Development
COPS Block Senior Landscape LEAP
Program Grant Center Maintenance Grant Total
Revenue
Intergovernmental $ 186,159 $ 434,140 $ 23,250 $ - $ 57,643 $ 2,255,636 Taxes and assessments 272,747 3,931 ,293
Charges for services 21 ,247
Other revenue 134 5,964 2,860 27 63,805
Investment income/(unrealized losses) 5,435 10,454 238,586 Total revenue 191,728 440,104 26,110 283,228 57,643 6,510,567 Expenditures
Cunent
General government 31,368
Public ways and facilities 18,978 309,401 2,396,717
Public safety 196,833 1,692,221
Community development 48,613 57,643 114,658
Capital outlay 418,269 600,027
Total expenditures 196,833 437,247 48,613 309,401 57,643 4,834,991 Revenue over (under) expenditures (5,105) 2,857 (22,503) (26,173) 1,675,576 Other financing sources/(uses)
Operating transfers in/( out), net {4,498) 22,503 2,859 {2,574,071) Total other financing sources/(uses) (4,498) 22 503 2 859 (2,574,071) Change in Fund Balance (9,603) 2,857 (23,314) (898,495) Fund Balance
Beginning of year 101,605 37,415 222,968 7,342,356
End of year $ 92,002 $ 40,272 $ - $ 199,654 $ - $ 6,443,861 63 CITY OF REEDLEY

SCHEDULE OF NET REVENUE AVAILABLE FOR DEBT SERVICE
JUNE 30, 2024
Business-Type Activities - Enterprise Funds
Sewer Water
Ope rating Revenue
Charges for services $ 6,290,207 $ 4,364,805
Other revenue 70,157 317,026
Total Available Revenues 6,360,364 4,681,831
Operating Expense
Personnel 1,841 ,907 1,745,118
Supplies, materials, utilities and other 1,538,872 1,412,545 Contractual services 1,046,895 456,205
Total operations and maintenance 4,427,674 3,613,868
Nonoperating Revenue/(Expense)
Investment income 247,092 86,782
Other 2,806,277 25,879
Total nonoperating revenue/( expense) 247,092 86,782
Total Net Revenue Available for Debt Service 2,179,782 1,154,745 Debt Service Requirements
2016 Sewer Refunding Revenue Bonds 222,150
2017 Water Refunding Revenue Bonds 864,681
2019 Wastewater Refunding Revenue Bonds 1,221 ,043
Total Debt Service 1,443,193 864,681
Net Revenue after Debt Service $ 736,589 $ 290,064
Debt Service Coverage Ratio 1.51 1.34
64 BRYANT L.JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L.Jolley, C.P.A.

Ryan P.Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER

MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and City Council
City of Reedley, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of City of Reedley (the "City"), California, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated January 2, 2025.

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

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

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

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.

However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 901 "N" STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

January 2, 2025
66 BRYANT L.JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L J alley, C.P.A.

Ryan P.Jolley C.P.A.

Darryl L Smith C.P.A.

Luis A Perez C.P.A.

Lan T. Kimoto

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR

EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE

REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and City Council
City of Reedley, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited City of Reedley (the "City"), California's compliance with the types of compliance requirements identified as subject to audit in the 0MB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended June 30, 2024. The City's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2024.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City's compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, mies, and provisions of contracts or grant agreements applicable to the City's federal programs.
901 "N" STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City's compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 68 Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

January 2, 2025
69 CITY OF REEDLEY

SCHEDULE OF EXPENDITURES OF FEDERAL AW ARDS
YEAR ENDED JUNE 30, 2024
Assitance Agency or
Federal Grantor/Pass-Through Listing Pass-Through Federal Grantor/Program Title Number Number Expenditures
U.S. De12artment for Housing and Communi!Y Develo12ment Passed through County of Fresno:

Community Development Block Grants/
Senior Meals 14.218 CDBG-21571 $ 434,140
Community Development Block Grants/
Entitlement Grants 14.218 CDBG-23571 5,964
Community Development Block Grants/
Entitlement Grants 14.218 n/a 10,186
Total U.S. Department of Housing and Community Development 450,290 U.S. Department of Justice
Passed through County of Fresno:

Bullet Proof Vest Program 16.607 NIA 502
Total U.S. Department of Justice 502
U .S. Department of Transportation
Passed through the Federal Aviation Administration:

Airport Improvement Program 20.106 3-06-0196-022-2021 42,138 Passed through the California Department of
Transportation:

Highway Planning and Construction 20.205 STPL-5216(060) 71,589 Highway Planning and Construction 20.205 STPL-5216(057) 1,578,331 Total U.S. Department of Transportation 1,692,058
U.S. De12artment of Homeland Security
Passed through the County of Fresno:

FEMA 97.067 SHSG 2022 5,968
Total U.S. Department of Homeland Security 5,968
U.S. Department of Education
Passed through the Fresno County Superintendent
of Schools:

Twenty-First Century Community Learning
Centers 84.287 NIA 305,977
Total U.S. Department of Education 305,977
U.S. Department of Health and Human Services
Passed through the Fresno-Madera Area
Agency on Aging:

Special Programs for the Aging, Title III
Part C, Nutrition Services 93.045 NIA 23,250
Total U .S. Department of Health and Human Services 23,250 Total Federal Expenditures $ 2,478,045
70 CITY OF REEDLEY

NOTES SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS
YEAR ENDED JUNE 30, 2024
Note 1 - Significant Accounting Policies
The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs of the City of Reedley, California (the City). Federal awards received directly from federal agencies as well as federal awards passed through other nonfederal agencies, primarily the State of California, are included in the SEFA. The City's reporting entity is defined in Note 1 to the City's basic financial statements.

Note 2 - Basis of Accounting
The accompanying SEF A is presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in Note 1 to the City's basic financial statements. The information in the SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in, or used in the preparation of, the SEF A may differ from amounts presented in the basic financial statements.

Note 3 - Assitance Listing Numbers
The Assistance Listing Numbers included in the accompanying SEF A were determined based on program name, review of grant contract information, and the Office of Management and Budget's Catalog of Federal Domestic Assistance.

Note 4 - Relationship to the Financial Statements
Expenditures of federal awards are reported in the City's basic financial statements as expenditures/ expenses in the General Fund, nonmajor special revenue funds, nonmajor capital project funds, and the enterprise funds.

Note 5 - Indirect Cost Rate
The City did not elect to use the 10% de m1nimus cost rate as covered in 2 CFR §200.414. 71 CITY OF REEDLEY

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2024
A. Summary of Auditor's Results
Financial Statements
Type of auditor's report issued:

Internal control over financial reporting:
• Material weaknesses identified? D
• Significant deficiencies identified that are
not considered to be material weaknesses? D
• Non-compliance material to financial
statements noted? D
Federal A wards
Internal control over major programs:
• Material weaknesses identified? •
• Significant deficiencies identified that are
not considered to be material weaknesses? •
Type of auditor's report issued on compliance for
maJor programs:

Any audit findings disclosed that are required to
be reported in accordance with 2 CFR
200.5 l 6(a)? •
Unmodified
Yes ~ No
Yes ~ None reported
Yes ~ No
Yes ~ No
Yes ~ None reported
Unmodified
Yes ~ No
Identification of Major Programs
Assistance Listing Number Name of Federal Program or Cluster

20.205 Highway Planning and Constrnction
Dollar threshold used to distinguish between
Type A and Type B programs:

Auditee qualified as low-risk auditee?
$750,000
Yes • No
72 CITY OF REEDLEY

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
YEAR ENDED JUNE 30, 2023
None.
73