Richmond City Council
March 3, 2026

March 3, 2026

Police Department

DATE: March 3, 2026
TO: Mayor Martinez and Members of the City Council
FROM:

Tim Simmons, Chief of Police
Daniel Reina, Lieutenant
Subject:

Purchase of Expandable Batons from Peacekeeper
Products International
FINANCIAL IMPACT: The proposed not to exceed cost of $32,000 is included within the approved fiscal year 2025-2026 Police
Department budget (Account String: 01192021-400603).

PREVIOUS COUNCIL
ACTION:

None.

STATEMENT OF THE
ISSUE:

City staff is requesting City Council approval to
purchase Peacekeeper Expandable Batons.

RECOMMENDED ACTION:

APPROVE the purchase of 125 Peacekeeper
Expandable Batons from Peacekeeper Products
International in amount not to exceed $32,000 -
Police Department (Chief Timothy Simmons 510-621-
1801/Daniel Reina 510-620-1809)

DISCUSSION:

The Richmond Police Department (RPD) issues impact weapons as part of its standard defensive equipment. The current batons in circulation have exceeded their AGENDA
REPORT
784

March 3, 2026
recommended service life, and many show signs of wear that can compromise reliability during field use.

As part of ongoing equipment modernization, RPD staff conducted a solicitation in January of 2026 and evaluated the following three impact weapon vendors:

 Armament Systems and Procedures (ASP)
 Peacekeeper
 Bonowi

Based on an evaluation of quality and construction, performance and functionality, officer safety and ergonomics, vendor experience and reliability, and overall cost- effectiveness, Peacekeeper Expandable Batons were identified as the most suitable option (Attachment 1).

VENDOR TOTAL SCORE
Peacekeeper 94.25
Bonowi 74.50
ASP 68.25

The Peacekeeper baton is widely recognized for its strength, consistent locking mechanism, and ability to withstand repeated use without structural failure. Its design allows for rapid deployment in high-stress situations and provides officers with a safer alternative to higher levels of force, aligning with department policy and state requirements emphasizing de-escalation and the use of the minimum necessary force.

Purchasing 125 Peacekeeper batons from Peacekeeper Products International in an amount not to exceed $32,000 will ensure that officers are equipped with reliable, modern defensive tools that support safe and effective field operations (Attachment 2).

DOCUMENTS ATTACHED:

Attachment 1 – Multi-Vendor Evaluation Comparison
Attachment 2 – Quote #25-0071

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ATTACHMENT 1
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787
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ATTACHMENT 2
789
790
791

March 3, 2026

Public Works

DATE: March 3, 2026
TO: Mayor Martinez and Members of the City Council
FROM:

Daniel Chavarria, Director of Public Works
Darin Fitzpatrick, Assistant Deputy Director of Public
Works, Operations and Maintenance
Subject:

Purchase Irrigation Supplies, Tools, and Parts from Heritage Landscape Supply Group and Blue Angel International LLC FINANCIAL IMPACT: The proposed $150,000 expenditure for irrigation supplies, tools, and parts is not to exceed $150,000 over the approved term and is included within the approved
fiscal year 2025-2026 Public Works – Parks &
Landscaping Division operating budget. Actual
expenditures will be based on operational need and
available budget authority (Account String: 01233631-
400364).

PREVIOUS COUNCIL
ACTION:

None.

STATEMENT OF THE
ISSUE:

The Public Works Parks & Landscaping Division requires ongoing access to irrigation supplies, tools, and parts to maintain and repair irrigation systems serving City parks, landscaped medians, rights -of-way, and other public
spaces. City Council approval is needed to authorize th e purchase of these materials from Heritage Landscape
Supply Group and Blue Angel International LLC on an as- needed basis to support continued maintenance
operations.

RECOMMENDED ACTION:

ADOPT a resolution to APPROVE the purchase of
irrigation supplies, tools, and parts from Heritage
Landscape Supply Group and Blue Angel International
LLC, on an as-needed basis, for a three-year term, with the option to extend for up to two additional one-year
terms, in an amount not to exceed $150,000, consistent
AGENDA
REPORT
792

March 3, 2026
with the approved budget – Public Works Department
(Daniel Chavarria 510-620-5478/ Darin Fitzpatrick 510-
231-3044).

DISCUSSION:

The Public Works Parks & Landscaping Division is responsible for maintaining irrigation systems serving City parks, landscaped medians, rights-of-way, and other public spaces. These systems require routine maintenance and timely repair using irrigation components such as valves, rotors, nozzles, solenoids, fittings, adhesives, and related parts.

To support these ongoing operational needs, the City issued a Request for Quotation through the City’s BidOnline system for irrigation supplies, tools, and parts on October 29, 2025 (Attachment 1). The Request for Quotation sought unit pricing for a comprehensive list of commonly used irrigation components to be purchased on an as- needed basis (Attachment 2). A total of 133 vendors were notified.

The Request for Quotation allows the City to award by individual item, by group, or in total, and to utilize one or multiple vendors in the manner that best serves the interests of the City. Two vendors, Heritage Landscape Supply Group and Blue Angel International LLC, submitted timely and complete quotations.

Both vendors were evaluated and determined to be responsive and responsible, meeting all Request for Quotation requirements. Pricing was evaluated on a unit-cost basis by item group, consistent with the solicitation and the City’s operational purchasing practices. The evaluation determined that each vendor offers competitive pricing advantages across different categories of irrigation supplies (Attachment 3).

Based on this evaluation, City staff recommends utilizing both vendors to provide pricing flexibility, ensure material availability, and support efficient irrigation system maintenance (Attachment 4). Purchases will be made only as needed and only for materials actually ordered and received by the City. The City is not obligated to purchase any minimum quantity.

DOCUMENTS ATTACHED:

Attachment 1 – Solicitation Documents
Attachment 2 – Bid Results / Pricing
Attachment 3 – Bid Evaluation Summary
Attachment 4 – Resolution
793
City of Richmond – Request for Quotation (RFQ)
Irrigation Supplies, Tools, and Parts
Justification
The City of Richmond Public Works Department requires the purchase and delivery of irrigation supplies, tools, and parts to support ongoing park and landscape maintenance operations. These materials are essential for maintaining and repairing irrigation systems throughout City parks, medians, and landscaped public areas. Competitive bidding ensures cost efficiency, quality standards, and availability of compatible components for the City’s irrigation infrastructure.

1. General Requirements
The City of Richmond Public Works Department (Operations & Maintenance – Parks and Landscaping Division) is seeking quotations from qualified vendors for the supply and delivery of irrigation system components, including valves, rotors, nozzles, fittings, solenoids, pipe accessories, adhesives, and other related irrigation parts. • All materials shall meet industry standards for performance, durability, and safety. • Pricing shall include delivery to designated City job sites or the Corporation Yard (as coordinated with City staff).
• All products must be new, unused, and in manufacturer’s original packaging. • Substitutions or equivalent parts must be pre-approved by the City prior to order fulfillment.
• Quotations must include all applicable charges, including delivery, fuel surcharges, and offloading fees if applicable.

2. Specifications
Irrigation supply items and components to be provided shall follow the schedule below (or approved equivalent).

No. Description Unit Cost ($)
1 Toro 220 Series Brass Pressure Regulated Remote
Control Valve – 1” (220-27-04)

2 Toro 220 Series Brass Pressure Regulated Remote
Control Valve – 1 ¼” (220-27-05)

3 Toro 220 Series Brass Pressure Regulated Remote
Control Valve – 1 ½” (220-27-06)

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4 Toro 220 Series Brass Pressure Regulated Remote
Control Valve – 2” (220-27-08)

5 4” Toro 570Z PRX-COM
6 4” Toro 570Z PRX-COM-E
7 6” Toro 570Z PRX-COM
8 6” Toro 570Z PRX-COM-E
9 12” Toro 570Z PRX-COM
10 12” Toro 570Z PRX-COM-E
11 Hunter I-20 Shrub Rotor (I-20-00)
12 Hunter I-20 Shrub Rotor Reclaimed (I-20-00-R)
13 4” Hunter I-20 Rotor (I-20-04)
14 4” Hunter I-20 Rotor Reclaimed (I-20-04-R)
15 6” Hunter I-20 Rotor (I-20-06)
16 6” Hunter I-20 Rotor Reclaimed (I-20-06-R)
17 12” I-20 Rotor (I-20-12)
18 12” I-20 Rotor Reclaimed (I-20-12-R)
19 4” Hunter I-25 (I-25-04)
20 4” Hunter I-25 Reclaimed (I-25-04-R)
21 6” Hunter I-25 (I-25-06)
22 6” Hunter I-25 Reclaimed (I-25-06-R)
23 Toro T5 Rotor (T5P-RS-LN)
24 Toro T5 Rotor Reclaimed (T5PE-RS-LN)
25 Toro T7 Rotor (T7P-02)
26 Toro T7 Rotor Reclaimed (T7P-02E)
27 Toro 570 MPR 8’ 180 Nozzle (8H)
795
28 Toro 570 MPR 10’ 180 Nozzle (10H)
29 Toro 570 MPR 12’ 180 Nozzle (12H)
30 Toro 570 MPR 15’ 180 Nozzle (15H)
31 Toro 570 MPR 8’ 360 Nozzle (8F)
32 Toro 570 MPR 10’ 360 Nozzle (10F)
33 Toro 570 MPR 12’ 360 Nozzle (12F)
34 Toro 570 MPR 15’ 360 Nozzle (15F)
35 Toro 570 MPR 4SST Nozzle (4’x30’ Side Strip)
36 Toro TS90 TS90TP-02-14
37 Hunter PCB-25 Pressure Compensating Bubbler
(PCB-25)

38 Hunter PCB-25 Pressure Compensating Bubbler
Reclaimed (PCB-25-R)

39 Marlex ½” Street Ell
40 Purple Primer Pint (Weld On P-70)
41 Red Hot Glue Pint (Christy’s)
42 Gray Glue Pint (Weld-On 711)
43 Clear Glue Pint (Weld-On 795)
44 Toro Spike Guard Solenoid 24 VAC (SGS-12)
45 Toro RW-60 Reclaimed Water Solenoid Kit
46 24 VAC Universal Solenoid (Sol 24)
47 Carson 12”x 20” Rectangular Valve Box (1220
Carson Spec Grade) (Green)

48 Carson 12”x 20” Rectangular Valve Box (1220
Carson Spec Grade) (Purple)

49 Slip Fix 1 ½”
50 Slip Fix 2”
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51 Slip Fix 3”
52 Threaded Ball Valve 1 ½” (Schedule 80)
53 Threaded Ball Valve 2” (Schedule 80)
54 ½” IPS Flex Hose (200’ Roll)
55 Diaphragm Assembly - Toro 220 Series Valve 1”
56 Diaphragm Assembly - Toro 220 Series Valve 1.25”
& 1.5”

57 Diaphragm Assembly - Toro 220 Series Valve 2”
58 Griswold S-Type Diaphragm 1.5”
59 Griswold 2000 Series Diaphragm 1.5”
60 Griswold 2000 Series Diaphragm 2”
61 Griswold 2000 Series Solenoid
62 4” Hunter I-40 Pop-up Rotor with stainless steel
riser

63 6” Hunter I-40 Pop-up Rotor with Stainless steel
riser

64 1220 Carson Green Jumbo Box with Lid

3. Pricing Structure
Vendors must provide unit cost per item, applicable delivery fees, turnaround times, and volume discounts if available.

4. Additional Requirements
• Vendor shall specify minimum order quantities (if any). • All deliveries must occur Monday–Friday between 8:00 a.m. and 3:00 p.m., unless otherwise approved by the City.
• Vendor must include all charges (e.g., pallet deposits, offloading fees, and delivery costs). • City reserves the right to award by item, group, or total bid. 797
City of Richmond
Irrigation Supplies, Tools and Parts, bidding on 12/01/2025 2:00 PM (PST)

Printed 10/30/2025
PlanetBids
798
City of Richmond
Irrigation Supplies, Tools and Parts, bidding on 12/01/2025 2:00 PM (PST)

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PlanetBids
799
City of Richmond
Irrigation Supplies, Tools and Parts, bidding on 12/01/2025 2:00 PM (PST)

Printed 10/30/2025
PlanetBids
800
City of Richmond
Irrigation Supplies, Tools and Parts, bidding on 12/01/2025 2:00 PM (PST)

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PlanetBids
801
City of Richmond
Irrigation Supplies, Tools and Parts, bidding on 12/01/2025 2:00 PM (PST)

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PlanetBids
802
City of Richmond
Irrigation Supplies, Tools and Parts, bidding on 12/01/2025 2:00 PM (PST)

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PlanetBids
803
City of Richmond
Irrigation Supplies, Tools and Parts, bidding on 12/01/2025 2:00 PM (PST)

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PlanetBids
804
City of Richmond
Irrigation Supplies, Tools and Parts, bidding on 12/01/2025 2:00 PM (PST)

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PlanetBids
805
City of Richmond
Irrigation Supplies, Tools and Parts, bidding on 12/01/2025 2:00 PM (PST)

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PlanetBids
806
City of Richmond
Irrigation Supplies, Tools and Parts, bidding on 12/01/2025 2:00 PM (PST)

Printed 10/30/2025
PlanetBids
807
City of Richmond
Irrigation Supplies, Tools and Parts, bidding on 12/01/2025 2:00 PM (PST)

Printed 10/30/2025
PlanetBids
808
City of Richmond
Irrigation Supplies, Tools and Parts, bidding on 12/01/2025 2:00 PM (PST)

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PlanetBids
809
City of Richmond
Irrigation Supplies, Tools and Parts, bidding on 12/01/2025 2:00 PM (PST)

Printed 10/30/2025
PlanetBids
810
City of Richmond
Irrigation Supplies, Tools and Parts, bidding on 12/01/2025 2:00 PM (PST)

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PlanetBids
811
City of Richmond
Irrigation Supplies, Tools and Parts, bidding on 12/01/2025 2:00 PM (PST)

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PlanetBids
812
City of Richmond
Irrigation Supplies, Tools and Parts, bidding on 12/01/2025 2:00 PM (PST)

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PlanetBids
813
City of Richmond
Irrigation Supplies, Tools and Parts, bidding on 12/01/2025 2:00 PM (PST)

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PlanetBids
814
City of Richmond
Irrigation Supplies, Tools and Parts, bidding on 12/01/2025 2:00 PM (PST)

Printed 10/30/2025
PlanetBids
815
City of Richmond
Irrigation Supplies, Tools and Parts, bidding on 12/01/2025 2:00 PM (PST)

Printed 10/30/2025
PlanetBids
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820
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Bid Evaluation Summary – Irrigation Supplies, Tools, and Parts

Solicitation: Irrigation Supplies, Tools, and Parts
Department: Public Works – Parks & Landscaping Division Solicitation Type: Request for Quotation (RFQ)

Basis of Award:

Per the RFQ, awards may be made to the lowest responsive and responsible bidder(s) and may be awarded by individual item, group, or total bid. Evaluation was based on responsiveness and unit pricing.

Bidders:
• Heritage Landscape Supply Group
• Blue Angel International LLC

Responsiveness Review:

Both vendors submitted timely, complete, and responsive quotations and met all RFQ requirements.

Price Evaluation:

Pricing was evaluated on a unit-cost basis by item group, consistent with the RFQ and operational purchasing practices. Both vendors demonstrated competitive pricing advantages across different categories of irrigation supplies.

Scoring Summary:

Heritage Landscape Supply Group: 100 points
Blue Angel International LLC: 98 points
832

Conclusion:

Both Heritage Landscape Supply Group and Blue Angel International LLC are responsive and responsible bidders. Consistent with the RFQ, staff recommends utilizing both vendors to provide pricing flexibility, ensure material availability, and support efficient irrigation maintenance operations.

833

Reso. No. _____

RESOLUTION NO. ______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RICHMOND,

CALIFORNIA, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

RICHMOND APPROVING THE PURCHASE OF IRRIGATION SUPPLIES,

TOOLS, AND PARTS FOR PUBLIC WORKS PARKS & LANDSCAPING
OPERATIONS IN AN AMOUNT NOT TO EXCEED $150,000

WHEREAS, The Public Works Department, Parks & Landscaping Division, is responsible for the maintenance and repair of irrigation systems serving City parks, landscaped medians, rights- of-way, and other public spaces; and;

WHEREAS, The continued operation of these irrigation systems requires the routine purchase of irrigation supplies, tools, and parts, including valves, rotors, nozzles, solenoids, fittings, adhesives, and related components; and

WHEREAS, The City issued a Request for Quotation through the City’s BidOnline system to obtain competitively priced irrigation supplies, tools, and parts to be purchased on an as-needed basis; and

WHEREAS, The Request for Quotation allows the City to award by individual item, by group, or in total, and to utilize one or multiple vendors in the manner that best serves the interests of the City; and

WHEREAS, Two vendors, Heritage Landscape Supply Group and Blue Angel International LLC, submitted timely and complete quotations in response to the Request for Quotation; and

WHEREAS, Both Heritage Landscape Supply Group and Blue Angel International LLC were evaluated and determined to be responsive and responsibl e bidders meeting all Request for Quotation requirements; and

WHEREAS, Pricing was evaluated on a unit -cost basis by item group, consistent with the Request for Quotation and the City’s operational purchasing practices, and staff determined that each vend or offers competitive pricing advantages across different categories of irrigation supplies; and

WHEREAS, Utilizing both vendors will provide pricing flexibility, ensure material availability, and support efficient irrigation maintenance operations; and

WHEREAS, The total purchase authority for irrigation supplies, tools, and parts is not to exceed $150,000, to be funded through existing appropriations in the Public Works – Parks & Landscaping Division operating budget;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RICHMOND THAT, the City Council hereby approves the purchase of irrigation supplies, tools, and parts for the Public Works Parks & Landscaping Division utilizing competitively bid pricing, in an amount not to exceed $150,000 . Purchases may be made from Heritage Landscape Supply Group and Blue Angel International LLC on an as-needed basis, consistent with the Request for Quotation, bid evaluation, and approved budget authority. The purchase approval shall be for a three-year period, with the option to extend for up to two additional one -year periods, subject to availability of funds.The City is not obligated to purchase any minimum quantity of materials under this approval.

******************

***THE CLERK’S OFFICE WILL COMPLETE THE INFORMATION BELOW****

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Reso. No. _____

I certify that the foregoing resolution was passed and adopted by the City Council of the City of Richmond at a regular meeting thereof held on Mmmm dd, yyyy, by the following vote:

AYES: AYES:

NOES:

ABSTENTIONS:

ABSENT:

CLERK OF THE CITY OF RICHMOND
(SEAL)
Approved:

Mayor

Approved as to form:

City Attorney

State of California }
County of Contra Costa : ss.

City of Richmond }

I certify that the foregoing is a true copy of Resolution No. _____, finally passed and adopted by the City Council of the City of Richmond at a regular meeting held on Mmmm dd, yyyy.

_______________________________________
Pamela Christian, Clerk of the City of Richmond
835

March 3, 2026

Finance Department

DATE: March 3, 2026
TO: Mayor Martinez and Members of the City Council
FROM:

Shasa Curl, City Manager
Nickie Mastay, Deputy City Manager, Internal Services
LaShonda White, Deputy City Manager, Community Services Emily Combs, Director of Finance
Mubeen Qader, Deputy Director of Finance
Jerry Gurule, Accounting Manager
SUBJECT:

Fiscal Year (FY) 2024-25 Audited Unspent Funds
FINANCIAL IMPACT: Appropriate General Fund FY 2024-25 audited unspent funds of $8,213,680.

PREVIOUS COUNCIL
ACTION:

June 24, 2024
November 19, 2024
April 22, 2025
May 6, 2025
December 16, 2025

STATEMENT OF THE
ISSUE:

City staff are presenting the Fiscal Year (FY) 2024-25
Audited Unspent Funds and recommending appropriations
totaling $8,213,680

RECOMMENDED
ACTION:

DISCUSS and ADOPT resolutions to APPROPRIATE Fiscal
Year 2024-25 audited unspent funds in the amount of
$8,213,680 – Finance Department (Emily Combs 510-620-
6790/Mubeen Qader 510-412-2077/Jerry Gurule 510-620-
6591).

DISCUSSION:

Background

The Fiscal Year (FY) 2024-25 budget was adopted on June 24, 2024, and subsequently revised during the Mid-Year Budget Review on May 6, 2025. Serving as the City of AGENDA
REPORT
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March 3, 2026
Richmond’s financial blueprint, the budget established projected revenues and planned expenditures for the fiscal year while aligning with City Council Goals and Priorities.

Overview of Fiscal Year (FY) 2024–25 Financial Reporting

On March 3, 2026, City staff presented the Annual Comprehensive Financial Report (ACFR) for the Fiscal Year ending June 30, 2025 (City-of-Richmond-ACFRFY2025).

The ACFR provides audited financial statements, the independent auditor’s report, and supplemental schedules, offering a comprehensive assessment of the City’s financial position and operational results. This report identifies the amount of audited unspent funds that informs reserve allocations and other fiscal planning decisions.

The General Fund closed FY 2024–25 with revenues slightly exceeding the revised budget at approximately $277.7 million, supported by stable property tax collections and modest gains in sales tax and business license revenues. Expenditures totaled $278.5 million, exceeding revenues by $822,275, primarily due to increased public safety costs and one-time allocations for community programs and capital maintenance.

Another contributing factor to the availability of unspent funds is the City’s success in securing competitive grants. These grants have offset costs that would otherwise have been borne by the General Fund, reducing pressure on local revenues and allowing the City to maintain a higher reserve balance. However, the ability to secure such grants in future years is uncertain and often dependent on external factors such as state and federal funding priorities, economic conditions, and competitive demand. While City staff will continue to pursue grant opportunities aggressively, the City should not rely on these funds as a guaranteed source of revenue when making long-term financial plans.

Available Balance and Reserve Policy Requirements

The City’s General Fund Reserve Policy requires the City to maintain a minimum year- end contingency reserve balance of 21 percent ($54.6 million) of next year’s budgeted General Fund expenditures, including transfers out. As of June 30, 2025, the City’s General Fund Reserve, which is a component of the Unassigned Fund Balance, totals $62.8 million, representing 24.2 percent of next year’s budgeted expenditures.

The difference between the policy target of $54.6 million and the actual reserve balance of $62.8 million results in $8.2 million in audited unspent funds is available for appropriation. Under the City’s adopted funding policies, any year-end operating surplus (actual revenues minus actual expenditures and transfers) in excess of the minimum reserve requirement is subject to allocations of 10 percent to the Pension Section 115 Trust and 10 percent to the Other Post Employment Benefit (OPEB) Section 115 Trust.

Therefore, $821,368 will be allocated to the Pension Trust and $821,368 will be allocated to the OPEB Trust. This proactive measure strengthens long-term funding for retirement obligations and helps mitigate future cost pressures. Taking into account the Section 115 and OPEB Trust contribution, the remaining available balance available is $6.57 million.
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March 3, 2026

Personnel Cost Trends and Staffing Strategy

Since 2021, the City has strategically filled positions to address critical service gaps, increasing the number of filled roles from approximately 590 Full-Time Equivalents (FTEs) in 2021 to 665 FTEs today, an overall increase of 12.7 percent. While these additions have improved service delivery, personnel costs have risen significantly. For example, the CalPERS Kaiser family health plan premium increased 44 percent from approximately $2,115 per month in 2021 to $3,039 in 2026, a difference of $924 per month. Recently approved labor successor Memorandums of Understanding, along with pending agreements, will further increase personnel costs. While this approach aligns with the City Council’s Goals and Objectives for efficient and sustainable governance and supports organizational efficiency, it also means that future budgets will experience higher baseline operating costs. As a result, the amount of audited unspent funds available for appropriation in future years may be significantly reduced. The City continues to proceed with incremental hiring to meet essential service needs while maintaining fiscal responsibility and adhering to the State Auditor’s recommendations for long-term financial stability.

Economic Development and WARN Letters

In addition to internal cost pressures, the City monitors Worker Adjustment and Retraining Notification (WARN) letters issued in Contra Costa County. These notices, which businesses must provide when anticipating mass layoffs or closures, help the City prepare workforce support and assess potential impacts on local revenues. During FY 2024-25, the City received two WARN notices, which resulted in minimal fiscal impact; however, WARN filings have surged in other parts of California, particularly in Los Angeles, San Francisco, and Orange counties. Closer to home, Solano County has experienced significant WARN activity, including over 600 layoffs tied to the Budweiser plant closure in Fairfield, Mare Island Dry Docks reductions, CVS store closures, and the Valero refinery shutdown in Benicia. Harbinger Production Inc. also filed a WARN notice for approximately 290 potential layoffs beginning in April. Local officials estimate total job losses in Solano could reach 1,000–2,000 when ripple effects are considered.

These regional trends heighten concern about potential revenue reductions and increased demand for services in future years. Continued monitoring and targeted responses are essential to safeguard Richmond’s fiscal stability and preserve available unspent funds for community priorities.

Calculation of Available Unspent Fund

After accounting for the City’s reserve policy requirements and audited year-end balances, the amounts available for appropriation, as reported in the ACFR, are shown in Table 1 below.

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March 3, 2026
Table 1: FY 2024-25 Audited Amounts
Item Audited Amount
FY 2024-25 Ending Unassigned Fund Balance (Reserve) (24%) 62,824,919 FY 2025-26 Policy Target Beginning Fund Balance (Reserve) (21%) 54,611,239 Total Available Unspent Funds 8,213,680

Recommendations for Unspent Funds

Prior year unspent funds are considered one-time resources. In alignment with best practices recommended by the Government Finance Officers Association (GFOA), one- time funds should be appropriated for one-time expenditures, such as non-recurring projects or programs. To guide the City Council’s discussion, City staff recommend committing or appropriating funds to the following projects in the amount of $6.57 million:

Capital Improvement Project Funding Shortfalls

The City continues to face significant unfunded capital needs across multiple infrastructure categories. However, based on City staff’s assessment of project readiness, urgency, potential cost escalation, alignment with City Council Goals and Objectives, and community input, two projects are recommended for funding from the FY 2024-25 unspent funds. These projects can be advanced within the current fiscal year and represent the most critical opportunities to address immediate capital requirements.

Table 2: Capital Improvement Projects Funding Shortfalls for Unspent Funds Project Total
Shortfall
Unspent
Funds
Complete Streets Improvements (Pavement Management, Streetscape Improvements, etc.) $6,500,000 $$6,320,944
Point Molate Annual Monitoring $250,000 $$250,000
Total $6,570,944

Complete Streets Improvements (Pavement Management, Streetscape Improvements, etc.)

Complete Streets Improvements are designed and operated to enable safe, comfortable, and convenient access for all users—pedestrians, bicyclists, motorists, and transit riders of all ages and abilities. This approach transforms road design from solely car-centric to multimodal, focusing on safety, equity, and community connectivity.

Streets Improvements could include but is not limited to pavement management and streetscape improvements.

The City of Richmond’s Pavement Management Program maintains approximately 580 lane miles of roadway with an annual budget of about $4 million, though an estimated $100 million would be required to fully address citywide paving needs, resulting in an unfunded backlog of roughly $96 million. The program uses a data-driven approach to assess roadway conditions and prioritize repairs, relying on the Pavement Condition 839

March 3, 2026
Index (PCI) and preventive maintenance strategies to extend pavement life while directing limited resources toward the most critical rehabilitation needs.

The Streetscape Improvements Program implements corridor-wide urban design enhancements to improve safety, accessibility, and the overall public realm in Richmond’s commercial and residential areas. The program includes improvements such as widened sidewalks, upgraded crosswalks, enhanced lighting, landscaping, and street trees, with current efforts focused on advancing the next phase of Macdonald Avenue corridor enhancements. Several planned streetscape projects remain on the City’s unfunded project list, reflecting a broader need for additional resources to fully implement these improvements across priority corridors.

Point Molate Annual Monitoring

The Point Molate Annual Monitoring activity provides ongoing environmental oversight and reporting for the former Naval Fuel Depot site. Through monthly and annual status updates, coordinated via the City-sponsored Restoration Advisory Board and shared with regulatory agencies, the program tracks remediation work, land-use planning, groundwater and soil cleanup, and related community engagement.

Summary of Recommendations

A summary of the potential FY 2024-25 unspent funds are as follows:

Table 3: Summary of Unspent Appropriations/Commitments
Item Action Amount
Complete Streets Improvements Appropriate $6,320,944
Point Molate Annual Monitoring Appropriate $250,000
OPEB Section 115 Trust Appropriate $821,368
Pension Section 115 Trust Commitment $821,368
Total $8,213,680

Next Steps

City staff recommend that the City Council appropriate the remaining unspent funds in the amount of $8,213,680 towards Complete Streets Improvements, Point Molate Annual Monitoring, and contributions to the Pension and OPEB Trusts.

DOCUMENTS ATTACHED:

Attachment 1 – Fiscal Year 2024-25 Unspent funds Resolution

840
Attachment 1 – Unspent Funds Resolution
Reso. No.

RESOLUTION NO. ________

A RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA, TO APPROPRIATE REMAINING GENERAL FUND FISCAL YEAR 2024-25 AUDITED UNSPENT FUNDS IN FISCAL YEAR 2025-26

WHEREAS, pursuant to Section 1(b) of Article IV of the Richmond City Charter the City Manager is required to prepare an annual budget for the review and approval by the City Council; and

WHEREAS, the City’s budget was originally adopted on June 24, 2024, and subsequently revised during the Mid-Budget Review on May 6, 2025; and

WHEREAS, the City experienced better than expected revenue and savings in expenditures resulting in General Fund unspent funds of $8,213,680; and

WHEREAS, the audited unspent funds result from the City maintaining a General Fund Reserve balance above the 21 percent minimum required under the City’s Reserve Policy; and

WHEREAS, during the FY 2025–26 Budget Development process, the City Council identified high-priority needs related to capital improvements, environmental monitoring, and long-term pension and OPEB obligations; and

WHEREAS, General Fund unspent funds were identified as sources to fund these expenditures; and

NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of Richmond, California hereby adopts the resolution to appropriate and make commitment of General Fund funds as follows:

General Fund Appropriations

Fund FY 2025-26
General Fund - Transfers Out to General Capital 6,570,944 General Fund – Other Post Employment (OPEB) Section 115 Trust 821,368 Total 7,392,312

Fund FY 2025-26
General Capital Fund – Transfers In (6,570,944)
General Capital Fund – Complete Streets Improvements (Pavement Management, Streetscape Improvements, etc.) 6,320,944
General Capital Fund – Pointe Molate Annual Monitoring 250,000 Total -

General Fund Commitments

Fund FY 2025-26
General Fund – Pension Section 115 Trust 821,368
Total 821,368
841
Attachment 1 – Unspent Funds Resolution
Reso. No.

**********************

I certify that the foregoing resolution was passed and adopted by the City Council of the City of Richmond at a regular meeting thereof held March 3, 2026, by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

______________________________
City Clerk of the City of Richmond

(SEAL)

Approved:

__________________________________
Mayor

Approved as to form:

___________________________________
City Attorney

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March 3, 2026

Finance Department

DATE: March 3, 2026
TO: Mayor Martinez and Members of the City Council
FROM:

Emily Combs, Director of Finance
Mubeen Qader, Deputy Director of Finance
Jerry Chak, Accounting Manager
Subject:

City of Richmond Annual Comprehensive Financial Report
for the Fiscal Year Ended June 30, 2025
FINANCIAL IMPACT: There is no fiscal impact to receiving this report.

PREVIOUS COUNCIL
ACTION:

None.

STATEMENT OF THE
ISSUE:

The City retains an independent auditor to annually audit and express an opinion regarding the accurate
representation of the City’s financial statements.

RECOMMENDED ACTION:

RECEIVE a report on the City’s Annual Comprehensive
Financial Report (ACFR) for Fiscal Year ended June 30,
2025 – Finance Department (Emily Combs/Mubeen
Qader/Jerry Chak 510-620-6740).

DISCUSSION:

At the close of each fiscal year, the City engages an external auditor to audit its financial statements. The Annual Comprehensive Financial Report (ACFR), which contains the City of Richmond’s basic financial statements, auditor’s report, and important supplemental information, is intended to give the reader a comprehensive view of the City’s financial position and activities for the fiscal year ended June 30, 2025. The ACFR is prepared in accordance with Generally Accepted Accounting Principles AGENDA
REPORT
843

March 3, 2026
(GAAP) for local governments as established by the Governmental Accounting Standards Board (GASB).

California Government Code Section 53891 requires every local government agency to submit a report of all financial transactions to the State Controller’s Office based on data from the audited financial statements prepared in accordance with GAAP, and that the report is audited by an independent firm of certified public accountants. Since the ACFR is audited by independent experts, the report provides additional assurance to the community that the City is being responsible stewards of tax dollars.

Consistent with sound fiscal management practices and prudent public policy, City staff are presenting the ACFR to City Council. The ACFR can be found on the City’s website at: City of Richmond - Annual Comprehensive Financial Report (ACFR).

Badawi & Associates has audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining funds information of the City for the fiscal year ended June 30, 2025, and the related notes to the financial statements. The auditors have rendered an unmodified opinion on the City’s financial statements for the fiscal year ended June 30, 2025, with a disclaimer of opinion for business-type activities as it relates to the Richmond Housing Authority (RHA) enterprise fund and the aggregate discretely presented component units, since the financial statements of the Richmond Housing Authority and RHA Properties, RHA Housing Corporation and RHA Rental Assistance Demonstration (RAD) LLC have not been audited for the year ended June 30, 2025.

The ACFR is organized into five (5) sections:

1. Introduction including the Transmittal Letter and Independent Auditor’s Report

2. Management’s Discussion and Analysis (MD&A)

3. Basic Financial Statements and Notes

4. Supplemental Information

5. Statistical Information

The Management’s Discussion and Analysis (MD&A) section (pages 7-20) of the ACFR presents an overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2025. City staff encourages readers to consider the information presented in this section in conjunction with additional information provided in the Transmittal Letter (pages v-xix), the City’s Basic Financial Statements (pages 21-49), and Notes to Basic Financial Statements (pages 51-167).

The Independent Auditor’s Report is included in the ACFR attached (Attachment 1 – Annual Comprehensive Financial Report, pages 1-5), below are the excerpts from the ACFR:

Unmodified Opinions
The auditors issued unmodified opinions on Governmental Activities, Major Governmental Funds, Port of Richmond Fund, Municipal Sewer Fund and Aggregate 844

March 3, 2026
Remaining Fund Information. This is the highest possible rating. “In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the General Fund, the Community Development and Loan Programs Special Revenue Fund, the General Purpose Special Revenue Fund, the General Capital Improvement Fund, the Port of Richmond Enterprise Fund, the Municipal Sewer Enterprise Fund, and the aggregate remaining fund information of the City as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.”

Basis for Unmodified Opinions
The audit was conducted in accordance with generally accepted auditing standards in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. The responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of the report.

Disclaimer of Opinion
The auditors have issued a disclaimer of opinion on Business-Type Activities, Aggregated Discretely Presented Component Units, and Richmond Housing Authority.

This is due to their inability to audit the information for the fiscal year ending June 30, 2025, pending completion of their audit of fiscal years ending June 30, 2021, 2022, 2023, and 2024. More specifically, the auditors stated, “Because of the significance of the matter described in the Basis for Disclaimer of Opinion paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements of the business-type activities, Richmond Housing Authority Enterprise Fund, and the aggregate discretely presented component units of the City. Accordingly, we do not express an opinion on these financial statements.”

Basis for Disclaimer of Opinion
The financial statements of the Richmond Housing Authority, RHA Properties, RHA Housing Corporation, and RHA RAD LLC have not been audited for the year ending June 30, 2025. The Richmond Housing Authority’s financial activities are included in the City’s basic financial statements as a major enterprise fund and represent 7.52 percent,

15.32 percent, and 4.89 percent of the assets, net position, and revenues, respectively, of the City’s business-type activities. The financial activities of the RHA Properties, RHA Housing Corporation, and RHA RAD LLC are included in the City’s financial activities as discretely presented component units and represent the City’s only discretely presented component units.

Badawi & Associates is currently auditing RHA financials for the fiscal year ending June 30, 2021.

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March 3, 2026
Financial Highlights

General Fund
The General Fund is the primary operating fund of the City, and it is used to report the financial results of the daily operations of the City. In fiscal year 2024-25, the City’s General Fund revenues increased by $15.1 million or 6.9 percent to $233.7 million and expenditures increased by $49.5 million or 24.9 percent to $248.1 million. The total fund balance for the fiscal year increased by $3.9 million or 3.9 percent to $103.3 million. The General Fund reported an unassigned fund balance of $62.8 million, a decrease of $2.4 million or 3.7 percent from the prior year’s balance of $65.3 million.

Cash Reserve Policy
The City’s General Fund cash reserve policy requires the City to maintain a minimum year-end contingency reserve balance of 21 percent of next year’s budgeted General Fund expenditures and transfers out of $54.6 million. As of June 30, 2025, the City’s cash reserve, which is a component of the unassigned fund balance, is $62.8 million or

24.2 percent.

POLICY SYNERGIES:

City Council Goals and Priorities Goal Area No. 5 – Strengthening the City’s internal infrastructure and process, specifically Goal No. 5.2 Improve Fiscal Responsibility.

DOCUMENTS ATTACHED:

Attachment 1 – City of Richmond Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ended June 30, 2025
Attachment 2 – Presentation
846
847
848

City of Richmond
California

Annual Comprehensive
Financial Report

Fiscal Year Ended June 30, 2025

Prepared by the Finance Department
Emily Combs
Director of Finance/Treasurer

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City of Richmond
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents
Page

INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................................ i Letter of Transmittal ...................................................................................................................................................... v Organizational Chart .................................................................................................................................................. xxi List of Elected and Appointed Officials ................................................................................................................. xxii

FINANCIAL SECTION
Independent Auditor’s Report ................................................................................................................................... 1 Management’s Discussion and Analysis .................................................................................................................. 7 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ................................................................................................... .................................. 26 Statement of Activities ..................................................................................................... ..................................... 28 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet – Governmental Funds ......................................................................................... .................... 34 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ................................................................................................. ............................. 35 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ............................................................................................. ..................... 36 Reconciliation of the Governmental Funds Statement of Revenue, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ...................................... 37 Proprietary Fund Financial Statements:

Statement of Net Posi tion – Proprietary Funds ............................................................................................. 40 Statement of Revenues, Expenses and Changes in Fund
Net Position – Proprietary Funds .......................................................................................... ....................... 42 Statement of Cash Flows – Proprietary Funds ............................................................................................... 44 Fiduciary Fund Financial Statements:

Statement of Fiduciary Ne t Position – Fiduciary Funds ............................................................................... 48 Statement of Changes in Fiduci ary Net Position – Fiduciary Funds .......................................................... 49 Notes to Basic Financial Statements ......................................................................................... .......................... 53 i
851
City of Richmond
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents
Page
Required Supplemental Information:

Budget and Budgetary Accounting ...................................................................................................................... 171 Schedule of Revenues, Expenditures and Chan
ges in Fund Balances – Budget and Actual:

General Fund ................................................................................................................ ....................................... 173 Community Development and Loan Programs Special Revenue Fund ..................................................... 174 General Purpose Special Revenue Fund .......................................................................................................... 175 Schedule of Changes in the Net Pension Liability and Related Ratios – Miscellaneous Plan ........................... 176 Schedule of Contributions – Miscellaneous Plan ........................................................................................................ 178 Schedule of Changes in the Net Pension Liability and Related Ratios – Safety Plan ....................................... 180 Schedule of Contributions – Safety Plan ............................................................................................................... 182 Schedule of Changes in the Net Pension Liability and Related Ratios:

General Pension Plan ..................................................................................................................................................... 184 Police and Firemen’s Pension Plan ........................................................................................... .......................... 186 Other Post-Employment Benefits Plan Schedules - OPEB Plan:

Schedule of Changes in the Net OPEB Liability and Related Ratios ........................................................... 188 Schedule of Plan Contributions ......................................................................................................................... 190 Schedule of Investment Returns .............................................................................................. .......................... 190 Other Post-Employment Benefits Plan Schedules - RPOA Plan:

Schedule of Changes in the Net OPEB Liability and Related Ratios ........................................................... 192 Schedule of Plan Contributions ......................................................................................................................... 193 Supplementary Information:

Combining and Individual Fund Statements and Schedules:

Combining Balance Sheet – Nonmajor Governmental Funds ....................................................................... 200 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonm ajor Governmental Funds ....................................................................................... 206 Schedules of Revenue, Expenditures, and Changes in Fund Balance – Budget and Actual:

Nonmajor Governmental Funds:

State Gas Tax Fund ......................................................................................................... ................................. 211 Paratransit Operations Fund ................................................................................................ .......................... 212 Employment and Training Fund ................................................................................................................... 213 Public Safety Fund ......................................................................................................... .................................. 214 Lighting and Landsc aping Districts Fund .................................................................................................... 215 Developer Impact Fees Fund ................................................................................................. ......................... 216 Secured Pension Override Fund .............................................................................................. ...................... 217 Richmond Neighborhood St abilization Corporation Fund ....................................................................... 218 Rent Program Fund .......................................................................................................... ............................... 219 Cost Recovery Fund ......................................................................................................... ................................ 220 Environmental and Community Investment Agreement Fund ................................................................ 221 American Rescue Plan Act Fund ................................................................................................. .................. 222 Transformative Climate Grant Fund .......................................................................................... ................... 223 ii
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City of Richmond
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents
Page
Supplementary Information (Continued):

Combining and Individual Fund Statements and Schedules (Continued):

Encampment
Resolution Grant Fund
........................................................................................................... 224 General Pension Fund ..................................................................................................................................... 225 Police and Firemen’s Pension Fund .............................................................................................................. 226 2022 Pension Obligation Bonds Fund ........................................................................................................... 227 General Debt Service Fund .................................................................................................. ........................... 228 Civic Center Debt Service Fund ..................................................................................................................... 229 General Capital Improvement Fund ............................................................................................................. 230 Measure C/J Fund ........................................................................................................... ................................ 231 Harbor Navigation Fund ................................................................................................................................ 232 Combining Statements of Net Position – Nonmajor Enterprise Funds ........................................................... 234 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Nonmajor Enterprise Funds ....................................................................................... 235 Combining Statement of Cash Flows – Nonmajor Enterprise Funds ........................................................... 236 Combining Statement of Net Position – Internal Service Funds ................................................................... 238 Combining Statement of Revenues, Expenses and Changes in Net Position – In ternal Service Funds ........................................................................................................... 239 Combining Statement of Cash Flows – Internal Service Funds .................................................................... 240 Combining Statement of Fiduciary Net Position – Private Purpose Trust Funds ...................................... 242 Combining Statement of Changes in Fiduciary Net Position – Private Purpose Trust Funds ................. 243 Sub-Combining Statement of Fiduciary Net Position –
Successor Agency to the Richmond Community Redevelopment Agency ............................................. 244 Sub-Combining Statement of Changes in Fiduciary Net Position – Successor Agency to the Richmond Community Redevelopment Agency ............................................. 246 Combining Statement of Fiduciary Net Position – Custodial Funds ........................................................... 250 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ...................................... 252 iii
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City of Richmond
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents
Page

STATISTICAL SECTION
Net Position by Component Last Ten Fiscal Years ............................................................................................ 258 Changes in Net Position Last Ten
Fiscal Years ................................................................................................... 260 Fund Balances of Governmental Funds Last Ten Fiscal Years ......................................................................... 262 Changes in Fund Balance of Governmental Funds Last Ten Fiscal Years ...................................................... 264 Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years ....................................... 266 Property Tax Rates – All Overlapping Governments Last Ten Fiscal Years .................................................. 268 Principal Property Tax Payers Current Year and Nine Years Ago .................................................................. 270 Property Tax Levies and Collections Last Ten Fiscal Years .............................................................................. 271 Utility Users Tax Collections Last Ten Fiscal Years ........................................................................................... 272 Utility Users Tax Direct Rates On Charges For Services Last Ten Fiscal Years ............................................. 274 Top Ten Utility Users Taxpayers .......................................................................................................................... 276 Ratio of Outstanding Debt by Type Last Ten Fiscal Years ................................................................................ 277 Computation of Legal Bonded Debt Margin ...................................................................................................... 278 Revenue Bond Coverage 1999, 2006, 2008, 2010A, 2010B, 2017A, 2019A and 2019B Wastewater Revenue Bonds Last Ten Fiscal Years...................................................................... 279 Revenue Bond Coverage 1996, 1999, 2004, 2007 and 2009 Port Terminal Lease Revenue Bonds, Note and Point Potrero Lease Revenue Bonds Last Ten Fiscal Years ............................................. 280 Bonded Debt Pledged Revenue Coverage Tax Allocation Bonds and Refunding Bonds Last Ten Fiscal Years ................................................................................................. .............................. 281 General Bonded Debt Pension Obligation Bonds Last Ten Fiscal Years ........................................................ 282 Computation of Direct and Overlapping Debt .................................................................................................. 283 Demographic and Economic Statistics Last Ten Calendar Years ..................................................................... 284 Principal Employers Current Year and Nine Years Ago ................................................................................... 285 Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years .............................. 286 Operating Indicators by Function/Program Last Ten Fiscal Years ................................................................. 288 Capital Asset Statistics by Function/Program Last Ten Fiscal Years .............................................................. 290 iv
854

FINANCE DEPARTMENT
450 CIVIC CENTER PLAZA
RICHMOND, CA 94804
(510) 620-6740
February 9 , 2026
Citizens of the City of Richmond
The Honorable Mayor and
Members of the City Council
We are pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Richmond, California (City). The Finance Department has prepared this report to present the financial position and the results of the City’s operations for the fiscal year ended June 30, 2025, and the cash flows of its proprietary fund types for the year then ended. The basic financial statements and supporting schedules have been prepared in compliance with Article IV, Section 1(b)3 of the City Charter, with California Government Code Sections 25250 and 25253, and in accordance with Generally Accepted Accounting Principles (GAAP) for local governments as established by the Governmental Accounting Standards Board (GASB).

This report consists of management’s representations concerning the finances of the City.

Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft or misuse, and to compile sufficient and reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement.

As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material aspects.

The City Council is required to adopt an initial budget for the fiscal year to be effective July 1, for the ensuing fiscal year. Budgeted expenditures are adopted through the passage of a resolution, which constitutes the maximum authorized expenditures for the fiscal year and cannot legally be exceeded except by subsequent amendments of the budget by the City Council. Expenditures are controlled at the fund level for all budgeted departments within the City, which means the level at which expenditures may not legally exceed the appropriations. v
855
The City’s financial statements have been audited by an independent auditing firm of licensed certified public accountants. The objective of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2025, are free of material misstatement. The independent audit involved examining evidence supporting the amounts and disclosures in the financial statements on a test basis; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion on the City’s financial statements for the fiscal year ended June 30, 2025, but with a disclaimer of opinion for business-type activities as it relates to the Richmond Housing Authority Enterprise Fund and the aggregate discretely presented component units, as the financial statements of the Richmond Housing Authority and RHA Properties, RHA Housing Corporation and RHA RAD LLC have not been audited for the year ended June 30, 2025. The Independent Auditors’ Report is presented as the first component of the Financial Section of this report.

Accounting standards require that management provides a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors.

The Reporting Entity and Its Services
As required by GAAP, these basic financial statements present the City 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 City’s operations; therefore, data from these units are combined with data of the City. Discretely presented component units, on the other hand, are reported in a separate column in the basic financial statements to emphasize their legal separateness and independent operations from the City. Each blended component unit has a year-end date of June 30. The City’s three discretely presented component units are RHA Properties, RHA Housing Corporation, and RHA RAD LLC.

The City’s component units and assessment districts are as follows: the Richmond Housing Authority, the Richmond Joint Powers Financing Authority, the Richmond Neighborhood Stabilization Corporation, the Richmond Surplus Property Authority and Harbor Navigation, Country Club Vista, and Atlas Interchange Special Assessment Districts. The City also has one inactive component unit, Richmond Parking Authority.

Profile of the Government
The City of Richmond was chartered as a city in 1909, and is located 16 miles northeast of San Francisco, directly across San Francisco Bay. Richmond is on a peninsula separating San Francisco Bay (on the south) and San Pablo Bay (to the north), spanning 32 total miles of shoreline. The City's total area is 56 square miles, 33.7 of which is land area and 22.3 is water area. Richmond is situated near major metropolitan cities and major new growth areas. San Francisco is within 35 vi
856
minutes from Richmond by freeway; Oakland is approximately 20 minutes and San Jose is approximately 60 minutes to the south; and Sacramento, the state capit al, is approximately 90 minutes to the northeast. Central Marin County is 15 minutes from Richmond directly across the Richmond-San Rafael Bridge. Freeways provide direct access from Richmond to major new growth areas along Interstate 80 north and east to Vallejo, Fairfield, and Sacramento; along Interstate 680 in central Contra Costa County; and south along Interstate 880 to the San Jose area.

Richmond’s population is 113,594 as of January 1, 2025, according to the State of California Department of Finance. The population within a 30-mile radius of Richmond is over 3.7 million and within a 70-mile radius is approximately 7.8 million. Richmond is located on the western shore of Contra Costa County, and it is the largest city in the "West County" region consisting of five cities: Richmond, El Cerrito, San Pablo, Hercules, and Pinole.

The City of Richmond provides a full range of municipal services, including police and fire protection, construction and maintenance of highways, streets and infrastructure, library services, stormwater and municipal sewer systems, wastewater treatment facility, and the administration of recreational activities and cultural events. The City also operates the Richmond Memorial Convention Center and the Port of Richmond.

The City of Richmond operates under a Council-Manager form of government with six members elected by six districts to alternate four-year terms and the Mayor elected at-large to a four-year term as the seventh member. The City Manager, appointed by the Mayor and Council, has authority to manage the administrative and fiscal operations of the City. In addition to the City Manager, the City Attorney and City Clerk are appointed by the Mayor and Council.

The mission of the City of Richmond is:

The City of Richmond provides services that enhance economic vitality, the environment, and the quality of life of our community.

Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates.

Local Economy
The American Rescue Plan Act of 2021 (ARPA) was signed into law on March 11, 2021. The City’s allocated amount was $27.74 million received in two installments, $13.87 million in August 2021 and $13.87 million in August 2022. These funds have been allocated to programs that provide rent relief for those negatively impacted by COVID-19, assistance for the unhoused, community needs assessment, and community infrastructure improvements. The City has obligated all ARPA funds by December 31, 2024 and expects to expend the funds by December 31, 2026.
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Property Tax revenues continue to show steady growth in FY 2024-25, with actual General Fund property taxes increasing by 2.3 percent compared to the previous year. More recently, the 2025- 2026 County Assessment Roll reflects a 3.53 percent increase in Assessed Valuation (AV) for Secured Property Taxes, the primary factor influencing year-over-year change in this revenue source.

The City received $59.7 million in Sales Tax revenue, which is $1.6 million less than the previous fiscal year, a decrease of 2.6 percent. This variance is primarily due to the loss of revenue generated from businesses that were temporarily located in the city but have since moved or closed. Major retailers like Costco, Target, Home Depot, and Walmart continue to support this revenue stream.

Utility User Tax (UUT), which applies to cable television, gas and electricity, telecommunications, totaled $63.8 million. This is $4.7 million or 8 percent higher than the amount received the previous year. The variance is primarily due to amounts collected through the maximum cap payable provision of the Richmond Municipal Code and amounts remitted by Pacific Gas & Electric (PG&E) resulting from rate increases.

Other Taxes received in FY 2024-25 totaled $27.2 million, an increase of $8.4 million or 45 percent when compared to the prior fiscal year. This increase is mainly due to higher collections from Documentary Transfer Tax and Franchise Fees collected by PG&E. The Documentary Transfer Tax, which is collected by Contra Costa County on property sales, showed significant volatility with monthly payments ranging from as low as $300,000 to as high as $7 million. This revenue stream totaled $13.4 million, an increase of $4.8 million or 56 percent when compared to the prior year. For Franchise Fees collected by PG&E, amounts paid in FY 2024-25 reflect a full year of the new Franchise Agreement and totaled $7.6 million, a $3.3 million or 78 percent increase compared to the prior year.

Revenue for Licenses, Permits, and Fees (including Measure U Business Tax) totaled $17 million, a $151,000 increase when compared to the prior year. This marks the fourth full year that Business Tax was calculated on gross receipts as mandated with the passage of Measure U. Total Business Tax revenue was $14.7 million, an increase of $197,000 or 1.4 percent when compared to the FY 2024-25 Revised Budget. Approved by voters in 2020, Measure U, changed the Business License Tax calculation to be based on gross receipts instead of the number of employees or location. The Business Tax collected by the City now varies with inflation and the number of businesses, closely linking it to the local economy.

Significant Events and Accomplishments
The City of Richmond is committed to providing excellent municipal services to its diverse residents and visitors. Highlights of the City’s activities and accomplishments for the fiscal year ended June 30, 2025, include the following:

Community Services
Employment and Training
 Secured $500,000 for Richmond Wired for Success, an electrification training program in partnership with RichmondBUILD and Contra Costa College. viii
858
 Hosted a successful youth career and job fair with over 400 youth attendees and 40 Community Based Organizations (CBOs) and employers.
 Over 40 RichmondBUILD graduates secured employment.
 96 participants completed occupational skills training (healthcare, administrative, transportation and logistics).
 172 participants secured employment.
 Secured the Equal Representation in Construction Apprenticeship (ERiCA) grant, providing childcare stipends for RichmondBUILD participants while in training and in an apprenticeship.

Library
 Visits to library locations (combined) increased by 13%, from 60,100 to 67,700.  Checkouts of physical materials (books, DVDs, etc.) increased 20%, to 112,400.  eBook circulation increased by 8%.
 Bayview Branch Library material checkouts increased by 62%, to 3,528 and visits to the branch increased by 72%, to 3,316.

Literacy for Every Adult Program (LEAP)
 28 LEAP students made measurable gains in their English skills, as measured by pre and post-assessments.
 LEAP volunteers dedicated more than 1,100 hours to assist community members with their learning goals.

Office of Neighborhood Safety (ONS)
 At the end of June 2025, ONS fellows reported the following:
• 91% conflict resolution improving.
• 74% feel safer in community.
• 95% basic needs improving.
• 92% physical health improving.
• 94% mental health improving.
• 82% currently not using guns.
 ONS Neighborhood Change Agents (NCAs) also mediated 117 conflicts over 243 hours.

Of all these conflict mediations, 61 were in Central Richmond, 8 in North, and 26 in South.

Recreation
 A total of 40 teams registered and actively participated in the Futsal program, which was held at both the Recreation Complex and the Booker T. Anderson (BTA) Community Center gyms. Children aged 6 to 14 years old participated in the Futsal program.  Camp Achieve, a free educational summer camp for Richmond youth, served more than 300 participants in the zip codes of 94801, 94803, 94804, 94805 and 94806 at the Shields Reid, Nevin, Parchester, and Booker T. Anderson Community Centers. Participants were treated to free meals, educational field trips, enrichment programs (like STEM, ART, Dance, Chess, and Poetry) and curriculum led by WCCUSD teachers). Pre and post tests showed that students gained more than 2 months of literacy learning during the summer months when most students experience learning loss.
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 Richmond Senior Center expanded enrichment classes to the 1st and 3rd Saturdays from 10:00 AM - 2:00 PM. Classes include Advanced Line Dancing, Glamorous Art Performance Workshop, and Thread & Needles.
 Boosted large-scale concert and event rentals at the Richmond Memorial Auditorium, increasing facility usage and community engagement.
 Supported 38 Neighbor-to-Neighbor events with over 2,300 attendees in partnership with neighborhood councils.
 The Youth Outdoors Richmond program continued to provide eight dynamic events that welcomed more than 250 youth and adults, offering opportunities for outdoor adventure, cultural exploration, and intergenerational connection.

Richmond Fund for Children & Youth (RFCY)
 Released the department’s first multi-year Request for Proposals for FY 2025-28:
 92 applications received for this Request for Proposals (RFP).  37 youth-serving public and non-profit organizations awarded a total of $6,684,835 annually for three years.
 Implemented the use of a Grant Management System.
 Relaunched the Service Provider Working Group.
 Completed the bulk of comprehensive FY 2021-24 RFCY Evaluation Report, to be released in FY 2025-26.

Reach Out with Compassion and Kindness (ROCK)
 ROCK Team completed a three-tier hiring process that began with 143 Community Intervention Specialist and now has 7 full time employees (FTE) expected to start their training academy on December 1, 2025.
 Two ROCK Mobile Crisis Vans have been acquired, serviced, and registered with the Public Works Department.
 Bonterra Tech LLC completed the ROCK Team’s internal Record Management System (Apricot 360) to be used by field responders beginning on December 1, 2025.  Collaborated with Housing Department to identify RFP for three local organizations that met the criteria for opioid remediation funds.
 Request for Bid (RFB) was completed and a local vendor Glampervan in Oakland, California has begun the work to internally build out 2 Ford Transit Vans acquired in FY 2023-24 for community crisis response.
 Emphasized community engagement through an array of activities requiring community involvement. Activities included partnering with a local vendor for van wrapping of mobile crisis response vans; holding a youth logo contest that received 13 youth designs; and establishing an official mobile crisis response team name with 141 survey responses.

Community Development
 Received Council concurrence to develop the Hilltop Horizon Specific Plan based on a land concept plan that will guide the long-term revitalization of the former Hilltop Mall area into a vibrant mixed-use, major activity center with new housing, commercial, and open space opportunities.
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 Released the Richmond Accessory Dwelling Unit (ADU) Guidebook and a set of pre- approved ADU plans to help residents streamline the design and permitting process, reduce costs, and encourage construction of new housing consistent with state and local standards.  Obtained a $1.5 million Senate Bill (SB) 1 grant from the Ocean Protection Council to develop a SB 272-compliant sea level rise adaptation plan for the city.  Obtained a $9.5 million Reconnecting Communities Pilot Program grant from U.S.

Department of Transportation (DOT) for the City’s Complete Streets over 1-580 and Rail project.

Economic Development
Arts and Culture
 Chevron, 901 W Cutting Project. (Completed)
 Slate Art, Port Terminal 3 Public Art Project. (Completed)  Strategic Plan for Richmond Arts Corridor. (Contract Executed)  Parchester Village 88 panel mural – Meritage Homes. (Completed)  Mond An-Ex, Christopher Peterson painting accepted into Public Art Inventory.  "Changing Tides" Sculpture, Ferry Building – Maintenance – graffiti tags on stone seating (completed), rust treatment, and lighting maintenance.

Business Development
 The American Rescue Plan Act (ARPA) Small Business Support Program is nearing completion of final grant round, with the last eight businesses set to receive funding in late 2025. A celebratory check presentation is scheduled for December 12, 2025. To date, the program has delivered meaningful impact—48 local businesses have received $350,000, strengthening Richmond’s commercial corridors and boosting long-term economic resilience.
 The City proudly rebranded the Mobile Vendor Plaza into The Lot: Downtown Richmond Food Court, transforming a support program into a vibrant downtown destination that highlights local entrepreneurs and cultural diversity. The Lot now hosts 8 to 12 vendors during the weekly markets, with continued growth expected.  The City continues to advance equity and opportunity through Cannabis Equity Program.

In partnership with the Community Development Department’s Planning Division, the department is working on key updates to the Cannabis Ordinance to modernize the municipal code and create pathways for additional retail locations. The City has hosted three town hall meetings focused on transparency, program updates, and gathering direct feedback.
 Committed to delivering a comprehensive effort to strengthen economic opportunity, climate resilience, and community well-being through the Green Blue New Deal (GBND) initiative. Staff continued to collaborate across departments, and a quarterly update on GBND progress will be presented to the City Council in December 2025. This work underscores Richmond’s leadership in sustainable and equitable development. xi
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 Prepared to launch the Small Business Beautification Pilot Program focused on uplifting the Iron Triangle, Santa Fe, and Coronado neighborhoods. This Façade Improvement Pilot Program is designed to uplift Richmond’s small business districts. After extensive community engagement, the City is preparing to launch the program in late December 2025, taking a major step toward revitalizing some of the most vibrant commercial corridors.
 Provided tailored on-demand business support and guidance to new and established entrepreneurs, including business planning, marketing, and technical assistance. As of October 14, 2025, the program supported 39 businesses, awarded 9 incubator scholarships, delivered 80 hours of expert consulting, and offered additional training, wellness coaching, and networking opportunities.

Environmental and Health Initiatives
 Completed 30 no-cost solar installations through a partnership with Generating Renewable Ideas for Development (GRID) Alternatives on low-income homes funded by Environmental & Community Investment Agreement (ECIA).
 Completed 5 Zero Next Carbon Ready Homes funded by California Energy Commission grant led by MCE Clean Energy and ZNE Alliance.
 Hosted 2 no-cost solar sign-up workshops in partnership with GRID Alternatives and Richmond Rising.
 Presented on the City of Richmond’s Health in All Policies to University of California, Berkeley students.
 Completed draft of Health in All Policies 10-year Report.  Explored feasibility for the City to adopt Healthy Options at Point of Sale ordinance in partnership with Bay Area Community Resources (BACR).

Port of Richmond
 Participated in the following major Port Regional and National Industry Events: Pacific Trade Association Meeting, American Association of Port Authorities Annual (AAPA) Conference in Quebec, Canada, California Association of Port Authorities (CAPA) Ports Day in Sacramento, San Francisco Marine Exchange Annual Event, and annual Pacific Offshore Wind Conference.
 Launched a major milestone with the Point Potrero Marine Terminal (PPMT) Facilities Assessment project, which initiated a comprehensive assessment to evaluate operational capacity, infrastructure needs, and long-term planning strategies for one of the Port’s most critical terminals.
 Honda vehicle imports have resumed arrival at the Port, expanding and strengthening the Port’s automobile import portfolio beyond the ongoing Subaru business.  Prioritized safety and traffic improvements on Canal Boulevard and Point Potrero Marine Terminal (PPMT), which included installing new speed bumps near the Graving Basins to reduce vehicle speeds and completed restriping and berm painting on Canal Boulevard to improve traffic safety and operational efficiency.
 Completed the Crime Prevention Through Environmental Design (CPTED) Report in collaboration with the Richmond Police Department, a comprehensive report to enhance security, visibility, and environmental safety across Port facilities. xii
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 Completed key infrastructure upgrades to support Port operations, including heating unit repairs at the Riggers Loft Building, Port Administration offices, fire hydrant upgrades and certifications at the Auto Warehousing Company, and new fencing around the General Warehouse and Port parking areas.

Real Estate
 Coordinated authorization of the City Marina Lease Equity Transfer, with an expected annual property tax increase of $142,000 and a one-time Transfer Tax receipt of over $1.0 million.
 Updated the Civic Center Campus Lease for Senator John Garamendi.  Created leasehold space for the California State Senator Office of Jesse Arreguin within the Civic Center Campus.

Richmond Housing Authority (RHA)
 Selected a development partner (Eden Housing and Community Housing Development Corporation) for the redevelopment of the 100 units at Nystrom Village and negotiated/executed an Exclusive Right to Negotiate Agreement (ERNA).  Continued implementation of the Public Housing Authority Recovery and Sustainability (PHARS) Agreement between Housing and Urban Development (HUD), the City of Richmond, and RHA.
 Advanced Rental Assistance Demonstration (RAD) conversion planning for the Richmond Village property.
 Nevin Plaza Phase I renovations have been substantially completed; awaiting final contractor close-out documents, certificate of substantial completion, and final building permit approvals.
 Nevin Plaza Phase II Lease Disposition and Development Agreement was executed.  Submitted the audited Financial Data Schedule (FDS) for FY 2019-20, which is under review by HUD and the unaudited FDS for FY 2024-25, which is under review by HUD.

Internal Services
Human Resources (HR)
 Implemented a robust digital onboarding system that allows employees to complete all required forms electronically. This innovation enhances compliance tracking, minimizes paperwork, and provides HR with real-time visibility into onboarding progress. Including the launch of Richmond and Management Unlocked, providing access to valuable resources and information for the City’s incoming employees.  By implementing CalPERS’ self-service feature, HR enabled employees to make benefit changes online, significantly reducing paperwork and manual data entry for HR.

Additionally, hosted “Open House” sessions, offering employees convenient, in-person support for benefits and Open Enrollment questions.
 Developed standardized internal forms aligning with federal and state requirements, improving consistency, compliance, and ease of use for both employees and HR staff.  Successfully regenerated the Race Equity Program, further enhancing the commitment to fostering an inclusive and diverse workplace. This initiative has been a cornerstone of the City’s efforts to create a more equitable environment for everyone. xiii
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 The City’s robust training schedule has significantly contributed to the professional development and safety of all team members. These training programs have been well- received and have played a crucial role in enhancing the skills and knowledge of the workforce. HR held 79 trainings across a plethora of subjects and 84 safety-related trainings.
 The establishment of the Learning Management System has streamlined training processes, making it easier for employees to access and complete required courses online. This system ensures the HR team stays up-to-date with the latest industry standards and best practices.

Information Technology (IT)
 The Information Technology Department Network and Communications staff successfully completed the migration from the legacy ShoreTel phone system to RingCentral. The aging ShoreTel system was no longer supported by the manufacturer.  Offered City departments (in-person) hands-on training for Microsoft and Adobe desktop desktop desktopapplications including improving the ease-of-use of these tools including AI and improved Americans with Disabilities Act (ADA) capabilities.
 Managed the City’s enterprise Geographic Information System (GIS) system, Website and and
andSocial Media Management, Open Data System, and provides efficient digital initiatives for process improvements.
 Enterprise Resource Planning (ERP) Division worked collaboratively with City departments to implement the Intuitive Municipal Solutions (iMS) cloud-based software system to introduce a more streamlined and efficient process for managing Permitting, Planning, and Code Enforcement activities. This new system enhances communication and transparency, making it easier for the community to engage with City services.  ERP Division provided Planned Annual Continuing Education (PACE) programs for the City’s Finance and Human Resources Departments and prepared City staff for the current Tyler MUNIS upgrade.
 The IT/KCRT Department designed over 213 billboard “Datanet” screens for the KCRT Government Television channel, and for social media publishing during FY 2024-25. In addition, IT/KCRT continues to manage Board and Commission meetings including Council meetings with zero downtime.

Public Safety
Fire Department - Administration
 Promoted a Fire Chief to lead the City’s all-risk Fire Department, strengthening leadership, reinforcing the department’s commitment to innovation, advancing emergency response capabilities, and community-focused fire prevention and emergency preparedness.  Promoted one (1) Deputy Chief, two (2) Battalion Chiefs, one (1) Fire Marshal, one (1) Fire Inspector, three (3) Fire Captains, and one (1) Fire Engineer.  Explored the feasibility of transitioning into paramedic program Advanced Life Support (ALS) and reported the findings to the City Council based on Matrix Consulting Group’s report.
 Expanded peer support and mental health services of the department.  Reviewed and revised department policies and procedures to enhance effectiveness and operational efficiency.
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Fire Department – Emergency Operations
 Responded to 14,977 incidents, including 1,825 fire calls, 8,758 Emergency Medical Services (EMS)/rescue calls, and 2,631 good intent calls.  Hosted community engagement events, including an open house at Fire Station 64 during National Fire Safety Week, and Wildfire Preparedness Open House at Fire Station 63.

Fire Department - Emergency Services
 Graduated 35 Community Emergency Response Team (CERT) volunteers from the Spring 2025 CERT Academy after 10 weeks of training.
 Conducted in-person staff orientations at the City of Richmond Emergency Operations Center (EOC), providing training on EOC operations, start-up procedures, and Disaster Service Worker (DSW) roles to City employees.

Fire Department – Fire Prevention
 Completed 1,970 primary fire inspections (including construction, operational permit, Very High Fire Severity Zone (VHFHSZ)) and 84 fire access and trail surveys ensuring fire and life safety of the community.
 Designated and adopted an ordinance designating Fire Hazard Severity Zone (FHSZ) areas as moderate, high, and very high within City limits based on the Local Responsibility Area (LRA) recommended by the State Fire Marshal.
 Promoted three (3) Fire Inspectors I to Fire Inspector II and certified them as fire investigators.
 Transitioned the division to a paperless workflow, improving efficiency and record management through the implementation of iMS.

Fire Department – Support Services
 Started the repair, maintenance, and upgrade of Richmond Fire Boat “Victory.”  Designed the specifications of fire apparatus replacement – engine, Tractor Drawn Aerial (TDA), rescue, hazardous materials, breathing support apparatus, and support vehicles.

Fire Department – Training Division
 Conducted the Recruit Academy 25-1 and graduated eight firefighter trainees following 16 weeks of rigorous training.
 Administered the final probationary examinations of probationary firefighters from Recruit Academy 23-1, ensuring their operational readiness and consistent high standards in service.
 Facilitated several multi-agency specialized training programs, including Hazardous Materials Technician/Specialist, Structural Collapse, Trench Rescue, Rope Rescue, and Refinery Fire Tactics.
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Police Department (RPD)
 Successfully hired 21 new sworn officers and 13 professional staff members, strengthening RPD’s operational readiness.
 Richmond recorded one of the lowest annual homicide totals since 1971, with only two homicides year-to-date. Overall violent crime declined by 16% compared to last year, reflecting continued progress in community engagement, focused deterrence, and data- driven policing strategies.
 Welcomed over 700 community members to the annual “Cops and Goblins” Halloween Open House. Families experienced a haunted house walkthrough, trick-or-treating with RPD staff, and food and music provided by talented in-house officer DJs, reinforcing positive connections between officers and residents.
 The Crime Prevention Unit coordinated and participated in 160 community safety and outreach events across Richmond, expanding neighborhood partnerships, resource access, and trust.
 Completed the installation of new encrypted radio systems in all patrol vehicles and successfully transitioned alongside Contra Costa County agencies to meet Department of Justice (DOJ)-mandated encryption requirements, enhancing protect of criminal justice information and personally identifiable information.
 Partnered with local immigrant advocacy organizations and community groups to host several community meetings focused on immigration enforcement education and support .

These sessions provided residents with accurate information on RPD policies, reassured families about local protection, and ensured communities understood their rights and resources.

Public Works
Engineering
Capital Improvement Program (CIP)
 Completed construction for the 2024 Pavement Preventative Maintenance Slurry Seal Project.
 Completed construction for the Richmond Communities Clean Collaborative – Boorman Park Site Remediation Project.
 Completed construction for the Booker T. Anderson Community Center Phase II Infrastructure and HVAC Projects.
 Started construction for the Shields-Reid Park Revitalization Project.  Completed design for the 13th Street Complete Streets Project.  Completed design for the Revitalizing the Historic Richmond Main Library project.

Transportation
 Expanded the Richmond Moves micro transit program city-wide.  Richmond Moves completed 78,951 rides
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Water Resource Recovery (WRR)
 Replaced over two miles of sanitary sewer Grade 5 defective pipes (as required in Baykeeper Settlement Agreement).
 Completed System Evaluation Capacity Assurance Plan (SECAP) for the sanitary sewer collection system.
 Met Baykeeper Sanitary Sewer Overflow Reduction Goal of reporting less than 15 spills (reported 10 total).
 Completed Sludge Thickener Capital Improvement Project at Wastewater Treatment Plant.  Environmental Compliance implemented new pretreatment program management software. This will allow the program to remain compliant with Federal Code of Regulations, part 40 section 403.
 Staff participated in several public events providing information on Pollution Prevention and Stormwater Management.
 Staff continued to participate as co-permittee with Contra Costa County Clean Water Program regarding implementation of Municipal Regional Stormwater Permit version 3.0.

Permits and Land Development
 Successfully implemented the Sidewalk Vendor Enforcement Program in accordance with SB 946 (“Safe Sidewalk Vending Act”), combining education and enforcement efforts.

Key outcomes include significantly reduced unpermitted vendors, improved compliance, and safer pedestrian access. Established strong collaboration with the 23rd Street Merchants Association through quarterly meetings; at the most recent meeting, merchants expressed appreciation for the City’s enforcement efforts.  Implemented the new online permit application system (iMS). Despite the challenges during the transition, permit services to the public continued without interruption.  Completed restoration work as part of the Carlson Boulevard Repaving/Shasta Street Speed Hump Restoration project in coordination with the East Bay Municipal Utility District (EBMUD) and the Street Division, enhancing roadway safety and infrastructure reliability.  Developed a new Street Closure Policy to provide utility companies with clear guidelines and ensure adequate public outreach and notification for road closures.  Removed an unpermitted parklet structure, restoring street parking and ensuring public safety.

Operations & Maintenance
Abatement
 Encampments: Abated 190 tons of debris from 80 locations.  Illegal dumping: Removed 2,988 tons from 12,760 locations.  Graffiti: Abated 2,934 tags from 1,930 locations.
 Dumpster Days: Conducted 31 events.
 Seniors Assistance: Removed 300 tons of debris from 1,128 Seniors/disabled citizens’ homes.
 Weed Abatement: Abated 80 locations (Includes alleyways, Richmond Parkway, City lots).
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Equipment Maintenance
 12 new police vehicles to bolster public safety efforts.  4 new stake bed trucks to support parks & abatement.
 2 new transit vans for after school and summer programs.  3 new zero-turn lawn mowers for parks.

Lighting Improvement
 Installed new solar lighting to enhance visibility and public safety around the MVP Market area located at the corner of Macdonald Avenue and Marina Way. The project provided consistent illumination for evening market activities, improving both pedestrian comfort and community engagement within the area.
 Restored a total of 66 streetlights (22 along Canal Boulevard and 44 along Cutting Boulevard between I-580 and Canal Boulevard). These corridors had experienced significant outages due to theft and vandalism of electrical systems. The project involved extensive repair and reconnection of wiring systems, restoration of pole infrastructure, and re-energizing the circuits to reestablish safe and reliable roadway lighting for motorists and pedestrians.
 Installed new solar-powered roadway lighting along Castro Street (Hensley Street to Gate 91) to replace fixtures that had previously been removed due to vandalism. The project included replacing damaged poles, installing new solar units, and adding lighting coverage in previously unlit segments. The improvements increased roadway visibility and enhanced safety in the industrial and commuter areas along the corridor.  Installed a new motor for the circulation pumps at the Richmond Plunge. The failure of the previous motor had resulted in the temporary closure of the facility. Working collaboratively with the Stationary Engineers, the Electrical Shop supported the procurement and installation of the replacement motor, allowing the pool to reopen safely and resume normal operations.

Parks & Landscaping Maintenance
 Worked in collaboration with the Urban Forest Advisory Committee (UFAC) to advance Richmond’s first official City Tree designation.
 Led planning and operations for Richmond’s 2025 Arbor Day event, partnering with Groundwork Richmond, UFAC, and community volunteers. Held along the Richmond Greenway, the event drew over 50 participants who planted nearly 30 new trees.  Completed a multi-block landscaping effort along McDonald Avenue.

Streets Maintenance
 Resurfaced over 3 miles of roadways.
 Installed over 700 new signs throughout the city.
 Installed new street sweeping signs in 16 previously unsigned neighborhoods.  Refreshed or installed new crosswalks and curb paint at all school crossings.  Installed all new signs on San Pablo Avenue.
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Administrative Unit
 To enhance operational efficiency and better support the ongoing needs of the Public Works Department, the City consolidated all administrative unit staff into a single, centralized location. This is expected to streamline communication, improve coordination between divisions, and reduce delays associated with remote or distributed operations.  Executed 43 contracts amounting to $42.6 million across Operations and Maintenance, Engineering Capital Improvement Projects (ECIP), and Water Resource Recovery (WRR), ensuring that the City meets operational and developmental goals efficiently.  Procured 205 purchase orders totaling $72.6 million that were vital in supporting Operations and Maintenance, ECIP, and WRR.

Respectfully submitted,
Emily Combs
Director of Finance/Treasurer
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List of Elected and Appointed Officials
JU
NE 30, 2025
CI

TY COUNCIL
M
ayor ….................................................................................................................................................................................... Eduardo Martinez V
ice Mayor (District 6) ........................................................................................................................................................................ Claudia Jimenez D
istrict 1 ….............................................................................................................................................................................................. Jamelia Brown District 2 ….............................................................................................................................................................................................. Cesar Zepeda District 3 …............................................................................................................................................................................................ Doria Robinson District 4 …................................................................................................................................................................................................ Soheila Bana D
istrict 5 …………........................................................................................................................................................................................ Sue Wilson ADM

INISTRATION AND EXECUTIVE MANAGEMENT
Ci
ty Manager ……………………….……………………………………………………………………………………………………………… Shasa Curl D
eputy City Manager, Community Services …........................................................................................................................... LaShonda White D
eputy City Manager, Internal Services …...................................................................................................................................... Nickie Mastay Ci
ty Attorney …................................................................................................................................................................................ Dave Aleshire City Clerk …................................................................................................................................................................................. Pamela Christian Director of Community Development ….............................................................................................................................................. Lina Velasco D
irector of Economic Development …………….……………………………………………………………………………………. Nannette Beacham D
irector of Finance …....................................................................................................................................................................... Emily Combs D
irector of Information Technology …............................................................................................................................................... Sue Hartman D
irector of Human Resources ......…........................................................................................................................................... Sharrone Taylor D
irector of Public Works …......................................................................................................................................................... Daniel Chavarria C
hief of Police ............................................................................................................................................................................................ Bisa French F
ire Chief ...................................................................................................................................................................................................Aaron Osorio P
ort Director ….……………………………………………………………………………………………………................................... Charles Gerard xxii
872
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Richmond
Richmond, California
Report on the Audit of the Financial Statements
Disclaimer of Opinion and Unmodified Opinions
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 Richmond, California (City), as of and for the year ended June 30, 2025, and the related notes to the financial statements. We were engaged to audit the financial statements of the discretely presented component units as of and for the year ended June 30, 2025. These financial statements collectively comprise the City’s basic financial statements as listed in the table of contents.

Summary of Opinions
Opinion Unit Type of Opinion
Governmental Activities Unmodified
Business-Type Activities Disclaimer
Aggregate Discretely Presented Component Units Disclaimer Major Governmental Funds:

General Fund Unmodified
Community Development and
Loan Programs Special Revenue Unmodified General Purpose Special Revenue Unmodified
General Capital Improvement Fund Unmodified
Major Enterprise Funds:

Richmond Housing Authority Disclaimer
Port of Richmond Unmodified
Municipal Sewer Unmodified
Aggregate Remaining Fund Information Unmodified
Disclaimer of Opinion on Business-Type Activities, Aggregated Discretely Presented Component Units and Richmond Housing Authority
Because of the significance of the matter described in the Basis for Disclaimer of Opinion paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements of the business-type activities, Richmond Housing Authority Enterprise Fund, and the aggregate discretely presented component units of the City. Accordingly, we do not express an opinion on these financial statements.
873
To the Honorable Mayor and Members of the City Council
of the City of Richmond
Richmond, California

Basis for Disclaimer of Opinion
The financial statements of the Richmond Hous ing Authority and RHA Properties, RHA Housing Corporation and RHA RAD LLC have not been audited for the year ended June 30, 2025. The Richmond Housing Authority’s financial activities are included in the City’s basic financial statements as a major enterprise fund and represent 7.52%, 15.32%, and 4.89% of the assets, net position, and revenues, respectively, of the City’s business-type activities. The financial activities of the RHA Properties, RHA Housing Corporation and RHA RAD LLC are included in the City ’s financial activities as discretely presented component units and represent the City’s only discretely presented component units.

Unmodified Opinions on Governmental Activities, Major Governmental Funds, Port of Richmond, Municipal Sewer Fund and Aggregate Remaining Fund Information In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the General Fund, the Community Development and Loan Programs Special Revenue Fund, the General Purpose Special Revenue Fund, the General Capital Improvement Fund, the Port of Richmond Enterprise Fund, the Municipal Sewer Enterprise Fund, and the aggregate remaining fund information of the City as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Unmodified Opinions

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

Responsibilities of Management for the Financial Statements

The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control re levant 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 re quired 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.

2 874
To the Honorable Mayor and Members of the City Council
of the City of Richmond
Richmond, California

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, 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 circ umstances, 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 polic ies used and the reasonableness of significant accounting estimates made by management, as we ll 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.
3 875
To the Honorable Mayor and Members of the City Council
of the City of Richmond
Richmond, California

Required Supplementary Information

Accounting principles generally acce pted in the United States of America require that the management’s discussion and analysis, budgetary comparison in formation, and required pension and other post- employment benefits information on pages 7-20 and 173-193 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the ba sic 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 meth ods of preparing the information and comparing the information for consistency with management’s response s 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 combining and individual nonmajor fund financial statements and schedule and budget comparison information of nonmajor governmental funds are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonm ajor fund financial statements and schedule and budget comparison information of nonmajor governmental funds are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional proc edures, 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 themse lves, and other additional procedures in accordance with auditing standards generally accepted in the Unit ed States of America. In our opinion, the combining and individual nonmajor fund financ ial statements and schedule and budget comparison information of nonmajor governmental funds are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information

Management is responsible for the other information included in the annual report. The other information comprises the introductory section and statistical sect ion but does not include the financial statements and our auditor's report thereon. Our opinions on the fina ncial statements do not cover the other information, and we do not express an opinion or any form of assu rance thereon. In connection with our audit of the financial statements, our responsibilit y is to read the other informatio n and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

4 876
To the Honorable Mayor and Members of the City Council
of the City of Richmond
Richmond, California

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 9, 2026 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Emeryville, California
February 9, 2026
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MANAGEMENT’S DISCUSSION AND ANALYSIS

Fiscal Year Ended June 30, 2025

This narrative overview and analysis of the City of Richmond’s (City) Basic Financial Statements is for the fiscal year (FY) ended June 30, 2025. We encourage r eaders to consider the information presented here in conjunction with the accompanying transmittal letter, basic financial statements, and notes to the financial statements.

FINANCIAL HIGHLIGHTS

 The City’s total net position is $215.2 million, an increase of $83.2 million over the prior fiscal year.

Net position for governmental activities is $45.8 million, an increase of $64.5 million which is mainly attributed to an increase of $40.3 million in cash and investments and an increase of $33.4 million in capital assets. Net position for business-type activ ities is $169.4 million, an increase of $18.7 million which is mainly attributed to an increase of $3. 2 million to total assets and a decrease of $9.8 million to total liabilities. Additional information about the FY 2023-24 restatement of net position can be found in Note 10.

 The assets and deferred outflows of the governmental activities of the City exceeded its liabilities and deferred inflows at the close of FY 2024-25 by $4 5.8 million. The assets and deferred outflows of the business-type activities of the City exceeded its liabilities and deferred inflows by $169.4 million.

 As of June 30, 2025, the City’s unrestricted ne t deficit (governmental and business-type activities) totaled $306.5 million, a $64.8 million deficit decrease from prior year. The unrestricted net deficits represent the net unfunded liabilities of the government . Over time, increases and decreases in this account will allow the reader to determine if the City’s condition is improving or deteriorating.

Restricted net position for governmental and busin ess-type activities increased by a net $21.4 million to $190.4 million.

 The City’s financial statements include a disclaime r of opinion on the financial statements of the Richmond Housing Authority Enterprise Fund (RHA), a blended component unit included in the City’s business-type activities, and three discretely presented component units, RHA Properties, RHA Housing Corporation, and RHA RAD LLC. As of J une 30, 2025, the net position of RHA is $25.9 million, accounting for 15.3% of the City’s business-type activities. Additional information about the disclaimer of opinion can be found in the Independent Auditor’s Report.

 The City’s General Fund cash reserve policy requi res the City to maintain a minimum year-end contingency reserve balance of 21% of next y ear’s budgeted General Fund expenditures, including transfers out or $54.6 million. As of June 30, 2025, the City’s cash reserve, which is a component of the unassigned fund balance, is $62.8 million or 24.2%.

 The Net Pension Liability of $356.4 million represents the City’s unfunded pension obligation, decreased by $21.4 million from $377.8 million. The City reports $53.2 million in the Other Post- Employment Benefit (OPEB) liability for this fiscal year, which is a decrease of $10.2 million from the $63.4 million obligation reported in the prior year.

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 The City’s General Fund revenue and other fina ncing sources (uses) exceeded expenditures by $3.9 million in FY 2024-25. This is primarily attributable to an increase in revenue, specifically an increase in revenue from other taxes, fines and penalties.

OVERVIEW OF FINANCIAL STATEMENTS

The City’s basic financial statements are compri sed of government-wide fi nancial statements, fund financial statements, and notes to the financial stat ements. This report also contains other required supplementary information in addition to the basic financial statements.

Government-Wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to private-sector business.

The Statement of Net Position presents information on all the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference between the four reported as net position.

Over time, increases or decreases in net position may ser ve as a useful indicator of whether the financial position of the City is improving or deteriorating.

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

The government-wide financial statements distinguish f unctions of the City that are principally supported by taxes and grants, governmental activities, and business-type activities, which are intended to recover all or a significant portion of their costs through user fees and charges. The City’s activities include five blended component units, which c onsist of the Richmond Housing Authority, Richmond Joint Powers Financing Authority, Richmond Ne ighborhood Stabilization Corporati on, Richmond Surplus Property Authority, and Richmond Municipal Sewer District. Although legally separate, the City is financially accountable for the activities of these entities, which are therefore shown as blended as part of the primary government.

RHA Properties, RHA Housing Corporation, and R HA RAD LLC, while being legally separate entities, are included in the City's financial statement as di scretely presented component units for which the City bears financial responsibility.

The government-wide financial statements can be found on pages 26-29 of the financial report.

Fund Financial Statements

Fund Financial Statements are designed to report info rmation about the groupings of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives.

The City uses fund accounting to ensure and dem onstrate compliance with finance-related legal requirements.

Governmental Funds – Governmental funds focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resour ces available at the end of the FY 2024-25. Such information may be useful in determining what financia l resources are available in the near future to fund the City’s programs.
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Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide fina ncial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities.

The City has twenty-five governmental funds, of which four are considered major funds for presentation purposes. Each major fund is presented separately in the governmental fund Balance Sheet and in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances. The City’s four major funds are the General Fund, the Community Development and Loan Programs Fund, General Purpose Fund, and the General Capital Impr ovement Fund. The basic governmental fund financial statements can be found on pages 34-37 of the financial report. Data from the other twenty-one governmental funds are combined into a single, aggregated presentation and reported separately on pages 197-232 of the financial report.

Proprietary Funds – Proprietary funds of the City are two types: (1) enterprise funds and (2) internal service funds. The City maintains six enterprise funds that provide the same type of information as the government- wide financial statements, but in greater detail. The City maintains three internal service funds to account for its vehicle operations, risk management program , and compensated absences. The proprietary fund financial statements can be found on pages 39-45 and 233-240 of the financial report.

Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of third parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The fiduciary funds for the City consist of Private-Purpose Trust Funds and Custodial Funds. The fiduciary funds financial statements for these funds can be found on pages 47-49 and 241-253 of the financial report.

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 53-167 of the financial report.
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GOVERNMENT-WIDE FINANCIAL ANALYSIS

Government-wide Net Position
This comparative financial informa tion includes long-term and short-te rm information about the City’s overall financial condition. The following table provides the reader with highlights of changes between the audited fiscal year and the prior fiscal year.

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Government-wide Activities
The following table indicates changes in the net position for governmental and business-type activities between the audited fiscal year and the previous fiscal year.

Governmental Activities
Net position (deficit) of Governmental Activities at the end of FY 2023-24 was restated to negative $18.6 million. Additional information about the restat ement can be found in Note 10 on pages 115-116.

Governmental activities increased the net position by $64.5 million, accounting for 77.5% of the City’s total increase in net position of $83.2 million.

FY2025 FY2024 FY2025 FY2024 FY2025 FY2024
Revenues:

Program revenues:

Charges for serv ices $ 35,600 $ 33,923 $ 50,391 $ 50,392 $ 85,992 $ 84,315 Operating grants/contributions 63,595 50,287 5,032 3,426 68,627 53,713 Capital grants/contributions 2,464 5,089 - - 2,464 5,089 General revenues:

Property taxes-current collections 85,252 74,255 - - 85,252 74,255 Sales taxes 59,750 61,320 - - 59,750 61,320
Utility user taxes 63,825 59,120 - - 63,825 59,120 Documentary transfer taxes 13,383 8,566 - - 13,383 8,566 Other taxes 13,806 10,189 - - 13,806 10,189
Unrestricted Intergovernmental 402 8,695 - - 402 8,695 Use of money and property 15,764 14,919 3,549 4,093 19,313 19,012 Gain on sale of capital assets 3 50 - - 3 50
Other 1,478 1,801 - - 1,478 1,801
Total revenues 355,322 328,214 58,973 57,912 414,295 386,126 Expenses:

General government 76,627 70,312 - - 76,627 70,312 Public safety 117,952 114,082 - - 117,952 114,082
Public works 53,059 51,215 - - 53,059 51,215
Community development 11,826 6,710 - - 11,826 6,710 Cultural & recreation 13,619 12,963 - - 13,619 12,963 Housing & redevelopment 4,431 3,442 - - 4,431 3,442 Interest and fiscal charges 13,012 19,981 - - 13,012 19,981 Richmond Housing Authority - - 2,769 4,445 2,769 4,445 Port of Richmond - - 5,820 6,438 5,820 6,438 Municipal Sewer - - 28,140 24,835 28,140 24,835 Richmond Marina - - 288 213 288 213 Storm Sewer - - 2,399 2,752 2,399 2,752 Cable TV - - 1,187 898 1,187 898 Total expenses 290,525 278,706 40,603 39,581 331,127 318,287 Excess (Deficiency) of Revenues
Ov er (Under) Expenses 64,797 49,509 18,370 18,330 83,168 67,839 Transfers (337) (1,076) 337 1,076 - -
Changes in Net Position 64,460 48,433 18,707 19,406 83,168 67,839 Net position - beginning of year (18,613) (62,863) 150,686 133,909 132,074 71,046 Net position - end of year 45,848 (14,430) 169,394 153,315 215,241 138,885 Prior Year Restatements - (4,182) - (2,629) - -
restated $ 45,848 (18,613) $ $ 169,394 $ 150,686 $ 215,241 $ 132,074 City of Richmond's Changes in Net Position
For the Years Ended June 30, 2025 and 2024
(in thousands)
Governmental Activities Business-type Activities Totals 11 883

Total revenues of $355.3 million exceeded total expe nses of $290.5 million by $64.8 million. Revenues increased by $27.1 million or 8.3% from the prior year’s revenue of $328.2 million primarily due to an increase in charges for services, operating grants, prope rty taxes, utility user taxes, and other taxes.

Expenses increased by $11.8 million or 4.2% from the pr ior year’s expenses of $278.7 million primarily due to an increase in salary and administrative expenses.

Business-Type Activities
Business-type activities increased the City’s net position by $18.7 million. Key factors contributing to the increase in business-type activities are as follows:

 The Richmond Housing Authority’s (RHA) net position increased by $465 thousand from the previous year’s amount of $25.5 million. This increase is attr ibuted to a reduction in salaries and benefits, and administrative costs.

 The Port of Richmond’s (Port) net position incr eased by $7.2 million, an increase of 20% from the previous year’s amount of $36.6 m illion. This is attributed to an increase in interest earned and a reduction in operating expenses.

 The Municipal Sewer Fund’s net position increased by $8.7 million from the previous year’s amount of $77.8 million. This is attributed to an increase in service charges and revenue received for the West County Agency dissolution.

 Other Enterprise Funds’ net position increased by $2.4 million from the previous year’s amount of $10.9 million. This is attributed to an increase in grants.

Net Program (Expenses) Revenues
Comparisons of the costs of services by functions for the City’s government-wide activities are shown in the preceding tables on page 11, along with the revenues used to cover the net expenses.

The following table details the net program costs for each of the governmental functions.

Net (Expenses)
Expenses Revenues Revenues
Functions
General government 76,626,870$ 30,353,074 $ (46,273,796)$ Public safety 117,951,733 3,398,150 (114,553,583) Public works 53,058,696 31,559,485 (21,499,211) Community development 11,825,501 33,999,759 22,174,258 Cultural and recreational 13,619,035 2,246,385 (11,372,650) Housing and redevelopment 4,430,584 102,138 (4,328,446) Interest on long-term debt 13,012,295 - (13,012,295) Total 290,524,714$ 101,658,991$ (188,865,723)$
Governmental Activities
Expenses and Program Revenues
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Total governmental activities expenses of $290.5 million were offset by $101.7 million in program revenues in FY 2024-25. Program revenues are derived directly from the program itself or from parties outside the reporting government’s taxpayers or citizenry. They reduce the net cost of the function to be financed from the government’s general revenues. During the fiscal year, the net costs funded by the City’s general revenues were $188.9 million.

As reflected in the chart below, 35% of th e governmental program revenues came from Charges for Services, which includes licenses, permits, fees, fines, forfeitures, penalties, and several other revenues.

The remaining 63% of governmental program revenues came from Operating Grants and Capital Grants Contributions, which includes restricted revenues su ch as gas tax, transportation and sales tax, and Federal/State Grants.

General revenue is revenue not categorized as program revenues and include property taxes, sales taxes, utility users taxes, documentary transfer taxes, investment earnings, grants and contributions not related to specific programs and other miscellaneous general revenues. Total general revenues from governmental activities were $236.0 million in FY 2024-25. The three largest compone nts of general revenues received were Property Taxes-current collectio ns of $85.3 million, Sales Taxes of $59.7 million, and Utility User Taxes of $63.8 million. The following chart shows the City’s general revenues by source.

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The following table details net program costs for business-type activities. Business-type activities revenue exceeded expenses by $14.8 million, as Municipal Sewer, the Port of Richmond, and other Enterprise Funds contributed net revenues of $7.3 million, $5.4 million, and $2 million respectively.

As reflected in the following pie chart, 91% of the business-type program revenues came from Charges for Services and the remaining 9% were derived from Operating Grants and Contributions.

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FINANCIAL ANALYSIS OF THE CITY’S FUNDS

As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds

The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financial capacity.

At the end of FY 2024-25, the City’s governmental funds reported total fund balances of $263.7 million, an increase of $22.3 million, or 9.3% from prior year. Financial highlights for the City’s major funds are discussed below:

General Fund – The General Fund is the primary operating fund of the City. It is used to report the financial results of the daily operations of the City. The major revenue sources are utility users taxes, sales taxes, and property taxes. The major expenditures are salaries and administrative expenses.

The City’s General Fund revenues increased by $15.1 million or 6.9% and expenditures increased by $49.5 million or 24.9%. The increase in reve nues is primarily due to the increased collection of property taxes, other taxes, charges for services, and utility user ta xes. Property taxes increased by $1.3 million or 2.3%.

Other taxes increased by $8.4 million or 45%. Utility User taxes increased by $4.7 million or 8%. Charges for services revenue increased by $715 thousand or 14.5%. The increase in expenditure is due to an increase in salaries and administrative expenses. Public saf ety expenditures increased by $17.5 million or 16.5%.

Public works expenditures increased by $3.7 million or 11.5%. Cultural and r ecreational expenditures increased by $1.8 million or 15.3%. Capital outlay increased by $21.8 million due to the remeasurement of the new Police Department Facility (DiCon) lease amendment for five-year lease extension and five additional one-year renewal options under GASB 87.

At the end of the FY 2024-25, the total fund balance increased by $3.9 million from the prior year to $103.3 million. The General Fund reported an unassigned fund balance of $62.8 million, a decrease of $2.4 million from prior year’s balance of $65.3 million, of which the entire balance has been set aside for contingency.

Community Development and Loan Programs – This fund was established to account for the receipt of grant monies and the uses of Community Developm ent Block Grant, HOME Investment Partnership Program, and Neighborhood Stabilization Program. In conjunction with the dissolution of the Redevelopment Agency, this fund also accounts for the low- and moderate-income housing activities of the City as Housing Successor to the former Redevelopm ent Agency’s low-income and moderate-income housing activities. As of June 30, 2025, fund balance was $34.9 million, which represents a $173 thousand increase from prior year’s fund balance of $34.7 million.

General Purpose Fund – This fund was established to account for restricted revenues such as grant monies to be used for specific purposes or various project s. Total revenue increased by $10 million or 76% from prior year’s revenue of $13.2 million. This increase was primarily attributable to higher grant revenues received for various projects, including the Homeke y Project, the Shields-Reid Park Renovation Project, 15 887

the Richmond Communities Clean Collaborative infrast ructure projects, and the California Violence Intervention and Prevention Program.

General Capital Improvement Fund – The General Capital Improvement Fund is used to track the City’s capital improvement projects. In FY 2024-25, there was a total of $20.1 million transferred from the General Fund to support multiple capital projects, including the Main Library Renovation project, the Via Verdi mitigations project and the Street Paving Program. Ot her major contributions were to projects such as the Booker T. Anderson Jr. Center Infrastructure upgrade project, and the Boorman Park remediation project.

Proprietary Funds

The City’s proprietary funds are enterprise and internal service funds. Proprietary funds provide the same type of information found in the government-wide financial statements but in more detail.

The City’s major enterprise funds are the Richmond Housing Authority, Port of Richmond, and Municipal Sewer.

Richmond Housing Authority – The Richmond Housing Authority (RHA) provides affordable housing for low and very low-income residents of Richmond thr ough federally funded housing programs. RHA’s net position increased by $465 thousand to $25.9 million as of June 30, 2025.

The Port of Richmond – The Port of Richmond (Port) is a public enterprise established by the City and is administered as a department of the City. Operations include the marine terminal facilities and commercial property rentals. The Port’s net position increased by $7.2 million to $43.7 million as of June 30, 2025.

Municipal Sewer Fund – This fund is used to account for a variety of sewer service-related revenues and expenses. Municipal Sewer’s net position increased by $8.7 million to $86.5 million as of June 30, 2025.

GENERAL FUND BUDGETARY HIGHLIGHTS
The original adopted budget, excluding transfer s, bond premium and proceeds from sale of property, reflected $226.5 million in estimated revenues and $235.4 million in appropriations.

Budget adjustments reflect extensive analysis a nd updates arising from periodic review and Council approved amendments that occurred during the fiscal year.

The final revised budget includes $695 thousand increase in estimated revenues and $4.5 million increase in appropriations. Actual revenue of $233.8 million exceeded the revi sed revenue budget by $6.7 million, a variance of 3%. Key elements of the variances in revenues and appropriations are discussed below.

Property taxes received totaled $55.1 million, which was $2.5 million below both the original and revised budgets. The lower amount stems from residual Redevelopment Property Tax Trust Fund (RPTTF) Recognized Obligation Payment Schedule (ROPS) r eceipts for the Successor Ag ency Residual and Pass- through revenue. After several years of significant growth, the numbers have somewhat stagnated.

Sales taxes totaled $59.7 million, which was $1. 2 million below the revised budget and $706 thousand below the original budget. This dip is the result of one-time spikes related to businesses who located in Richmond on a short-term basis in FY 2023-24.
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Utility Users Tax (UUT) totaled $63.8 million, which exceeded expectations by $1.7 million. The primary source of the increase is in tax collections from gas and electricity due to rate increases by Pacific Gas and Electric and the amount related to the tax provision th at went up based on the regional gas and electricity Consumer Price Index.

Licenses, permits and fees totaled $14.8 million, which exceeded the revised budget by $986 thousand. A significant part of this revenue stream is the Bu siness License Tax. Richmond voters in 2020 approved Measure U which changed the way the business tax is calculated based on number of employees to gross receipts. Additionally, it changed the due date where now all business licenses expire on December 31 st of
each year rather than the anniversary date of each business basis. This change in expiration date required some businesses to transition their expiration which in many cases meant they would pay both a prorated amount and a full amount in the first full year of Measure U. This caused the amount received for FY 2023- 24 to be higher than the amount received in FY 2024-25.

The final estimated General Fund Revenues are $227.0 million, an increase of $545 thousand from the original adopted budget appropriation of $226.5 million. The increase stems from small adjustment to the Sales Tax and Charges for Services revenue categories.

The final adjusted appropriations are $243.1 million, an increase of $7.7 million from the original adopted budget appropriation of $235.4 million. The increase is driven by additional appropriations in General Government, Public Safety, and Capital outlay. The final budget appropriation for transfers out is $33.4 million, an increase of $12.9 million. The increase is due to City Council approved allocations to several capital projects to appropriate fund balance above the minimum reserve level of 21%.

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets

The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2025, amounted to $610.6 million, net of accumulated depreciation. Investment in capital assets includes land, construction in progress, buildi ngs and improvements, machinery and equipment, and infrastructure.

Details by type are shown in the following table.

The City’s infrastructure assets are re corded at their historical cost s in the government-wide financial statements. Additional information about the City’s capital assets can be found in Note 6 on pages 86-90. 17 889

Debt Administration

Long Term Debt – The City’s total debt outstanding increased by $14.6 million to $438.3 million as of June 30, 2025. The increase is partly due to a five-year lease extension, which also includes five additional one-year renewal options, with DiCon Fiberoptics for Police Department Facility. Details by type are shown in the following table.

The City does not have any general obligation bonds as of June 30, 2025.

Economic Factors
The City’s economic base has recovered from the slowdown related to the effects of the COVID-19 restrictions. As of January 1, 2025, property va lues assessed by the County have increased by 3.5% over the prior year. Increase to the Assessed Valuation ( AV) primarily stemmed from the new valuations of properties sold the prior year in Richmond. The Consumer Price Index (CPI) growth was 2.0% for most properties and there were significant property sales during the year. The refinery assessment by the County decreased from approximately $3.3 billion in 2024 to $3.2 billion in 2025, a decrease of $161 million or 5%. Redevelopment Property Tax Trust Fund (RPTTF) revenue fro m Recognized Obligation Payment Schedule (ROPS) payments, after many years of significant growth, have somewhat flattened out at around $10.5 million per year. Sales tax reve nue has rebounded to above pre-pa ndemic levels. Sales tax revenue was $47.7 million in FY 2018-19, dipped down to $44.5 million in FY 2019-20, rebounded to $49.0 million in FY 2020-21, and has continued to increase year- over-year. In FY 2023-24, sales tax revenue increased to $61.3 million but dipped to $59.7 million in FY 2024-25. This dip was the result of one-time spikes related to businesses who located to Richmond on a shor t-term basis. The sales tax business anchors in Richmond continued to display steady growth.

FY2025 FY2024 FY2025 FY2024* FY2025 FY2024
Lease revenue bonds 85,024,698$ 89,998,136$ 123,100,622$ 127,020,808$ 208,125,320$ 217,018,944$ Pension obligation bonds 154,140,000 154,140,000 - - 154,140,000 154,140,000 Total bonds payable 239,164,698 244,138,136 123,100,622 127,020,808 362,265,320 371,158,944 Loans payable 465,981 609,071 51,859,310 45,777,830 52,325,291 46,386,901 Financed Purchases 1,643,029 2,594,341 - - 1,643,029 2,594,341 Lease Liability 20,456,734 996,762 290,704 290,704 20,747,438 1,287,466 Subscription based I.T. Agreements 1,328,891 2,318,011 - - 1,328,891 2,318,011 Total outstanding debt 263,059,333$ 250,656,321$ 175,250,636 $ 173,089,342$ 438,309,969$ 423,745,663$ * Balance for June 30, 2024 restated.

Outstanding Debt
For the Years Ended June 30, 2025 and 2024
Governmental Activities Business-T ype Activities Totals 18 890

Measure H

In November 2018, Richmond voters approved Measure H which called for a new tiered calculation for the Documentary Transfer Tax. The tax rate increases based on the sale price of the property. The rate of 0.70% did not change for sales under $1 million, but for sales from $1 million and above, the rates changed according to the following table.

Prior to the new tiered system, Docu mentary Transfer Tax has always been one of the most volatile of revenue streams for the City. A few sales can have a dramatic impact on the General Fund, and this has not changed as revenue fluctuates year-to-year. In FY 2017-18, before the new tiered rate structure was established, the transfer tax collected totaled $6.5 million. In FY 2018-19, the tax collected went up to $8.0 million. In FY 2019-20, it went up modestly to $8.7 million. In FY 2020-21, due to a few unusually large real-estate transactions, it increased significantly to $19.9 million. In FY 2021-22, the Transfer Tax revenue decreased by $1.2 million to $18.6 million. In FY 2022-23, the Transfer Tax revenue saw a significant dip of $8.2 million, or a decrease of 44%, with a total of $10.4 million in Transfer Tax. In FY 2023-24, the Transfer Tax revenue saw another dip, this dip was $1.8 million, or a decrease of 18%, with a total of $8.6 million in Transfer Tax received. Finally, in FY 2024-25 the Transfer Tax revenue saw a significant increase of $4.8 million, corresponding to an increase of 56 %, with a total of $13.46 million in Transfer Tax received.

Measure U
In November 2020, Richmond voters approved Measure U, which significantly changed the calculation for the business license tax. This changed the tax calculation from being based on the number of employees or location to a percentage of the business’s gross receipt s. The percentage charged varies based on both the type of business and the amount of gross receipts wi th the new rates, ranging from 0.06% to 0.68% for businesses and 1.08% to 2.4% for rental properties. The new methodology brought in an additional $5.3 million for the City in FY 2021-22, an increase of 168% compared to prior year, an additional $7.7 million in FY 2022-23 with a total of $1 6.2 million, an increase of 91% over the previous year. In FY 2023-24, revenue received totaled $14.5 million, a decrease of $1.7 million or 10.8%. This decrease was expected as businesses transitioned to the new business tax calcu lation methodology based on gross receipts and the updated expiration date of December 31
st of each year. This expiration date change called for some businesses that did not expire on December 31 st to make two payments during the fiscal year – one was a partial payment for 2023, and the other was the fu ll payment for 2024. In FY 2024-25, Business License Tax revenue received totaled $14.7 million, an increase of $151 thousand or 0.9%.

The City continues to closely monitor revenue and expenditures through monthly variance reports to assure adherence to budget controls. Simultaneously, position control is strictly enforced, ensuring that any employee hired is moving into a funded position. For the upcoming fiscal year, staff is working to align the 19 891

budget forecast with City Council priorities and California State Auditor’s recommendations, review the City’s organizational structure, and provide recommended actions for fiscal sustainability.

This will include planning and a ddressing pension and Other Post-Emp loyment Benefits (OPEB) funding and determining adequate reserve level per the California State Auditor’s recommendation. Additionally, the City continues to analyze the structural integrity of all funds and identify additional cost reductions and efficiencies.

In August 2024, the Richmond City Council unanimously entered into a limited-term revenue agreement with Chevron. The agreement stated that Chevron will pay the City $550 million over 10 years. Under the agreement, Chevron will make annual payments of $50 million per year for the first five years and $60 million per year for the next five years. The limited-term revenue will be recorded in Richmond’s General Fund, and city leaders are still exploring options for how best to use these funds.

REQUESTS FOR INFORMATION

This financial report is designed to provide a general overview of the City’s finances for all its citizens, taxpayers, customers, investors, and creditors. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the City of Richmond, Finance Department, 450 Civic Center Plaza, Richmond, CA 94804. Alternatively, you may send your inquiries via email to [email protected].
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BASIC

FINANCIAL STATEMENTS
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GOVERNMENT-WIDE

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

Cash and investments 328,480,622$ 70,653,417 $ 399,134,039 $ Restricted cash and investments 19,014,896 3,166,331 22,181,227 Receivables:

Accounts, net 16,477,662 7,198,385 23,676,047 Interest 665,694 133,269 798,963 Grants 25,750,140 2,005,266 27,755,406 Loans - - - Leases 23,593 1,770,891 1,794,484 Internal balances 7,537,415 (7,537,415) - Prepaids and supplies 1,047,138 - 1,047,138 Total current assets 398,997,160 77,390,144 476,387,304 Noncurrent assets:

Due from developer - 10,221,743 10,221,743 Loans 53,268,501 - 53,268,501 Leases 765,898 57,118,190 57,884,088 Property held for resale 78,016 - 78,016 Capital assets:

Nondepreciable 111,382,071 137,767,371 249,149,442 Depreciable 803,372,305 359,049,689 1,162,421,994 Less accumulated depreciation (576,000,354) (224,937,561) (800,937,915) Total capital assets 338,754,022 271,879,499 610,633,521 Total noncurrent assets 392,866,437 339,219,432 732,085,869 Total assets 791,863,597 416,609,576 1,208,473,173

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension 62,764,095 1,425,032 64,189,127 Deferred outflows of resources - OPEB 719,989 1,273 721,262 Deferred charge on refunding 27,221,362 4,859,341 32,080,703 Total deferred outflows of resources 90,705,446 6,285,646 96,991,092

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 23,405,708 7,406,015 30,811,723 Interest payable 4,493,854 2,643,831 7,137,685 Refundable deposits 1,760,495 488,304 2,248,799 Unearned revenue 47,422,157 2,403,234 49,825,391 Compensated absences - due within one year 7,551,236 153,219 7,704,455 Claims liabilities - due within one year 15,600,347 - 15,600,347 Long-term debt - due within one year 11,047,460 4,902,785 15,950,245 Total current liabilities 111,281,257 17,997,388 129,278,645 Noncurrent liabilities:

Compensated absences 10,988,150 433,749 11,421,899 Claims liabilities 42,504,295 - 42,504,295 Long-term debt 252,011,873 170,347,851 422,359,724 Net pension liability 349,711,086 6,685,036 356,396,122 Net OPEB liability 51,109,901 2,099,086 53,208,987 Total noncurrent liabilities 706,325,305 179,565,722 885,891,027 Total liabilities 817,606,562 197,563,110 1,015,169,672

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 204,528 - 204,528 Deferred inflows of resources - OPEB 18,152,791 261,461 18,414,252 Deferred inflows of resources - leases 757,602 55,676,966 56,434,568 Total deferred inflows of resources 19,114,921 55,938,427 75,053,348

NET POSITION
Net investment in capital assets 229,834,689 101,488,204 331,322,893 Restricted for:

Capital projects 68,312,173 - 68,312,173 Debt service 242,098 3,068,545 3,310,643 Housing and redevelopment 12,089,128 - 12,089,128 Community development projects 101,496,804 - 101,496,804 Pension plans 5,162,825 - 5,162,825 Total restricted 187,303,028 3,068,545 190,371,573 Unrestricted (371,290,157) 64,836,936 (306,453,221) 45,847,560$ 169,393,685$ 215,241,245$ Total net position Primary Government
26 898
RHA Housing RHA
Corporation RAD LLC
210,417$ - $
- -
- -
- -
- -
- 15,510,000
- -
- -
- -
210,417 15,510,000
- -
- -
- -
- -
- -
- -
- -
- -
210,417 15,510,000
- -
- -
- -
- -
- -
- -
- -
66,407 -
- -
- -
- -
66,407 -
- -
- -
- -
- -
- -
- -

66,407 -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
144,010 15,510,000
144,010$ 15,510,000$
Component Units
See accompanying Notes to Basic Financial Statements
27 899
City of Richmond
Statement of Activities
For the year ended June 30, 2025
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Primary Government:

Governmental activities:

General government 76,626,870 $ 25,586,659 $ 4,766,415 $ - $ 30,353,074$ Public safety 117,951,733 3,124,973 212,123 61,054 3,398,150 Public works 53,058,696 5,791,738 23,602,716 2,165,031 31,559,485 Community development 11,825,501 183,896 33,577,953 237,910 33,999,759 Cultural and recreational 13,619,035 912,884 1,333,501 - 2,246,385 Housing and redevelopment 4,430,584 - 102,138 - 102,138 Interest on long-term debt 13,012,295 - - - - Total governmental activities 290,524,714 35,600,150 63,594,846 2,463,995 101,658,991 Business-type activities:

Richmond Housing Authority 2,769,346 390,507 2,491,939 - 2,882,446 Port of Richmond 5,820,213 11,217,471 - - 11,217,471 Municipal Sewer 28,139,510 35,467,783 - - 35,467,783 Richmond Marina 287,596 514,478 - - 514,478 Storm Sewer 2,399,162 2,038,500 2,539,989 - 4,578,489 Cable TV 1,186,703 762,659 - - 762,659 Total business-type activities 40,602,530 50,391,398 5,031,928 - 55,423,326 Total primary government 331,127,244$ 85,991,548 $ 68,626,774 $ 2,463,995$ 157,082,317$ Component units:

RHA Housing Corporation 5,600 - - - -

Total component units 5,600$ -$ -$ -$ -$ General Revenues:

Taxes:

Property taxes - current collections
Sales taxes
Utility user taxes
Documentary transfer taxes
Other taxes
Total taxes
Unrestricted intergovernmental
Use of money and property
Gain (loss) from sale of capital assets
Other
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year
Restatements
Net position - beginning of year, as restated
Net position - end of year
Program Revenues
28900
Governmental Business-Type RHA Housing RHA
Activities Activities Total Corporation RDA LLC
(46,273,796)$ -$ (46,273,796)$ (114,553,583) - (114,553,583) (21,499,211) - (21,499,211) 22,174,258 - 22,174,258 (11,372,650) - (11,372,650) (4,328,446) - (4,328,446) (13,012,295) - (13,012,295) (188,865,723) - (188,865,723) - 113,100 113,100 - 5,397,258 5,397,258 - 7,328,273 7,328,273 - 226,882 226,882 - 2,179,327 2,179,327 - (424,044) (424,044) - 14,820,796 14,820,796 (188,865,723) 14,820,796 (174,044,927)
(5,600) -
(5,600) -
85,252,050 - 85,252,050 - - 59,749,804 - 59,749,804 90,590 - 63,825,320 - 63,825,320 - - 13,383,387 - 13,383,387 - - 13,806,115 - 13,806,115 - - 236,016,676 - 236,016,676 90,590 - 401,774
- 401,774 - - 15,764,001 3,549,285 19,313,286 - - 2,512 - 2,512 - - 1,478,252 - 1,478,252 - - (337,185) 337,185 - - - 253,326,030 3,886,470 257,212,500 90,590 - 64,460,307 18,707,266 83,167,573 84,990 - (14,430,447) 153,315,383 138,884,936 59,020 15,510,000 (4,182,300) (2,628,964) (6,811,264) - - (18,612,747) 150,686,419 132,073,672 59,020 15,510,000 45,847,560$ 169,393,685$ 215,241,245$ 144,010$ 15,510,000$ Primary Government Component Units
Net (Expense) Revenue
and Changes in Net Position
See accompanying Notes to Basic Financial Statements
29 901
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30 902
FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
31 903
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32 904

GOVERNMENTAL FUND FINANCIAL STATEMENTS
The funds described below were determined to be ma jor governmental funds b y the City in the current fiscal year.

Individual nonmajor governmental funds may be found in the supplemental section.

The General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds and the related expenditures. The General Fund accounts for all financial resources of a governmental unit which are not accounted for in another fund.

The Community Development and Loan Programs Special Revenue Fund accounts for the receipt of Community Development Block Grant, HOME Investment Partnership Program, and Neighborhood Stabilization Program grant monies and the use of the grants. The Fund also accounts for the low and moderate income housing activities of the City as Housing Successor to the former Redevelopment Agency. Related to the grant disallowed costs discussed in the notes to the financial statements, the City purchased certain loans that had previously been funded with Community Development Block Grant and HOME funds. The grants and loan programs are to be used to provide, within the City of Richmond, new affordable housing, improve existing conditions, assist homeless and disabled with housing, and to expand economic opportunities in business, and employment for low and moderate income residents.

General Purpose Fund accounts for other restricted monies that are to be used for the specific purposes for which the funds were set up.

General Capital Improvement Fund accounts for monies designated for capital improvement projects. 33 905
City of Richmond
Balance Sheet
Governmental Funds
June 30, 2025
Community
Development General General Capital Other Total
General and Loan Purpose Improvement Governmental Governmental Fund Programs Fund Fund Funds Funds
ASSETS
Cash and investments 86,923,475$ 6,805,659$ 8,964,294$ 57,148,704$ 91,042,124$ 250,884,256$ Restricted cash and investments 4,277,473 3,052,445 - 102,072 11,582,906 19,014,896 Receivables:

Accounts, net 15,235,410 100,723 315,887 - 825,642 16,477,662 Interest 210,490 14,815 18,840 118,803 163,781 526,729 Grants - 45,391 13,670,019 - 11,111,389 24,826,799 Loans 3,113,684 43,796,922 3,828,882 - 2,529,013 53,268,501 Leases 789,491 - - - - 789,491 Due from other funds 3,614,068 - - - - 3,614,068 Advances to other funds 7,502,950 - - - - 7,502,950 Property held for resale - 78,016 - - - 78,016 Prepaids and supplies 882,915 - - - 64,368 947,283 Total assets 122,549,956 53,893,971 26,797,922 57,369,579 117,319,223 377,930,651

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

Liabilities:

Accounts payable and accrued liabilities 11,684,755 48,170 2,362,813 2,201,684 6,260,097 22,557,519 Refundable deposits 505,217 - - - 1,255,278 1,760,495 Due to other funds - - - - 3,579,603 3,579,603 Unearned revenue 3,876,265 - 14,527,415 - 29,018,477 47,422,157 Total liabilities 16,066,237 48,170 16,890,228 2,201,684 40,113,455 75,319,774 Deferred inflows of resources:

Unavailable revenue 2,413,684 18,989,814 8,575,499 - 8,159,786 38,138,783 Leases related 757,602 - - - - 757,602 Total deferred inflows of resources 3,171,286 18,989,814 8,575,499 - 8,159,786 38,896,385 Fund Balances:

Nonspendable 9,085,865 - - - - 9,085,865 Restricted 17,451,468 34,855,987 1,332,195 55,167,895 71,755,859 180,563,404 Committed 8,552,105 - - - - 8,552,105 Assigned 5,398,076 - - - 1,750,000 7,148,076 Unassigned 62,824,919 - - - (4,459,877) 58,365,042 Total fund balances 103,312,433 34,855,987 1,332,195 55,167,895 69,045,982 263,714,492 Total liabilities, deferred inflows
of resources, and fund balances 122,549,956$ 53,893,971$ 26,797,922$ 57,369,579$ 117,319,223$ 377,930,651$
See accompanying Notes to Basic Financial Statements
34 906
Total Fund Balances - Total Governmental Funds 263,714,492$ Capital assets used in governmental activities were not current financial resources.

Therefore, they were not reported in the Governmental Funds Balance Sheet. Except for the internal service funds reported below, the capital assets were adjusted as follows:

Government-
Wide Statement
of Net Position
Internal Service
Funds Total
Nondepreciable 111,382,071$ (5,320,774) $ 106,061,297 Depreciable, net 227,371,951 (11,500,972) 215,870,979 Total capital assets 338,754,022$ (16,821,746) $ 321,932,276 Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the Internal service funds were included in governmental activities in the Government- Wide Statement of Net Position. 34,767,595
Unavailable revenues recorded in the Fund Financial Statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 38,138,783 In the Government-Wide Financial Statements, deferred employer contributions for pension and OPEB, certain differences between actuarial estimates and actual results, and other adjustments resulting from changes in assumptions and benefits are deferred in the current year.

Deferred outflows of resources related to pension 62,605,998 Deferred outflows of resources related to OPEB 719,815
Deferred inflows of resources related to pension (204,528) Deferred inflows of resources related to OPEB (18,117,056) Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet.

Government-
Wide Statement
of Net Position
Internal Service
Funds Total
Compensated absences - due within one year (7,551,236) $ 9,011 $ (7,542,225)$ Interest payable (4,493,854) 4,490 (4,489,364) Long-term debt - due within one year (11,047,460) 294,381 (10,753,079) Compensated absences - due in more than one year (10,988,150) 21,690 (10,966,460) Long-term debt - due in more than one year (252,011,873) 624,265 (251,387,608) Deferred charge on refunding 27,221,362 - 27,221,362 Net pension liability/asset (349,711,086) 741,655 (348,969,431) Net OPEB liability (51,109,901) 286,891 (50,823,010) Total long-term liabilities (659,692,198)$ 1,982,383 $ (657,709,815) Net Position of Governmental Activities 45,847,560$
City of Richmond
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
Amounts reported for governmental activities in the statement of net position are different because:

See accompanying Notes to Basic Financial Statements
35 907
City of Richmond
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2025
Community American
Development General General Capital Rescue Other Total
General and Loan Purpose Improvement Plan Act Governmental Governmental Fund Programs Fund Fund Fund Funds Funds
REVENUES:

Property taxes 55,064,108$ -$ - $ -$ - $ 30,187,942$ 85,252,050$ Sales taxes 59,749,804 - - - - - 59,749,804 Utility user taxes 63,825,320 - - - - - 63,825,320 Other taxes 27,189,502 - - - - - 27,189,502 Licenses, permits and fees 14,755,450 224,903 121,854 - - 11,516,586 26,618,793 Fines, forfeitures and penalties 637,304 - 7,119 - - - 644,423 Use of money and property 4,348,043 559,030 390,651 2,295,541 - 4,899,461 12,492,726 Intergovernmental 1,063,303 237,910 22,277,140 - - 32,459,509 56,037,862 Charges for services 5,664,077 - 456,916 - - 8,469,379 14,590,372 Rent 879,271 - - - - - 879,271 Other 572,607 922,602 - - - 13,280 1,508,489 Total revenues 233,748,789 1,944,445 23,253,680 2,295,541 - 87,546,157 348,788,612
EXPENDITURES:

Current:

General government 48,454,590 - 5,006,134 19,911 - 21,129,943 74,610,578 Public safety 123,124,039 - 1,059,134 - - 846,404 125,029,577 Public works 35,830,513 - 490,320 3,364,818 - 13,285,031 52,970,682 Community development - 1,473,680 442,237 - - 7,131,985 9,047,902 Cultural and recreational 14,054,799 - 753,951 - - 20,205 14,828,955 Housing and redevelopment - 297,716 - - - 4,410,098 4,707,814 Capital outlay 22,806,160 - 13,917,968 2,713,888 - 10,420,480 49,858,496 Debt service: -
Principal 3,606,982 - - - - 4,110,000 7,716,982 Interest and fiscal charges 225,316 - - - - 12,153,250 12,378,566 Total expenditures 248,102,399 1,771,396 21,669,744 6,098,617 - 73,507,396 351,149,552

REVENUES OVER (UNDER)
EXPENDITURES (14,353,610)
173,049 1,583,936 (3,803,076) - 14,038,761 (2,360,940) OTHER FINANCING SOURCES (USES):

Proceeds from sale of property 1,415 - - - - 1,097 2,512 Other financing sources - Lease liability 21,315,218 - - - - - 21,315,218 Transfers in 23,059,557 - 368,756 20,076,138 - 15,399,068 58,903,519 Transfers out (26,132,806) - - (1,101,338) - (28,292,298) (55,526,442) Total other financing sources (uses) 18,243,384 - 368,756 18,974,800 - (12,892,133) 24,694,807 Net change in fund balances 3,889,774 173,049 1,952,692 15,171,724 - 1,146,628 22,333,867 FUND BALANCES (DEFICITS):

Beginning of year 99,422,659 34,682,938 - 39,996,171 3,429,640 63,982,380 241,513,788 Restatements - change in major funds - - (620,497) - (3,429,640) 4,050,137 - Restatements - - - - - (133,163) (133,163) Beginning of year, as restated 99,422,659 34,682,938 (620,497) 39,996,171 - 67,899,354 241,380,625
End of year 103,312,433$ 34,855,987 $ 1,332,195$ 55,167,895 $ - $ 69,045,982$ 263,714,492$ See accompanying Notes to Basic Financial Statements
36 908
City of Richmond
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities For the year ended June 30, 2025
Net Change in Fund Balances - Total Governmental Funds 22,333,867$ Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated lives as depreciation expense. This was the amount of capital assets recorded in the current period, net of the amount related to internal service funds. 47,326,873
Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities, but did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds, net of the amount related to internal service funds. (13,970,400) Gain on sale of assets are not recorded in the governmental funds since the assets are not recorded there but they are recorded in the Government-Wide Statement of Activities 2,512 Proceed from sale assets are recorded in the governmental funds but the gain or loss is recorded in the Government-Wide Statement of Activities (2,512)
Accrued compensated leave payments were reported as expenditures in the governmental funds, however expense is recognized in the Government-Wide Statement of Activities based on earned leave accruals. (620,271) Debt proceeds provide current financial resources to governmental funds, but issuing debt increased long- term liabilities in the Government-Wide Statement of Net Position. Repayment of debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

Long-term debt repayments 7,765,622
Amortization of deferred loss on refunding (1,512,298)
Lease laiblity remeasuremnt (21,315,218)
Amortization of bonds premium 863,438
Interest on long-term debt is recognized as an expenditure in the governmental funds when it is due. In the statement of activities, interest expense is recognized as the interest accrues, regardless of when it is due.

The difference between interest expense paid and interest accrued was: 56,619 Current year employer pension and OPEB contributions are recorded as expenditures in the governmental funds, however, these amounts are reported as a deferred outflow of resources in the Government-Wide Statement of Net Position. 44,062,216
Pension expense is reported in the Government-Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds. (44,053,773) OPEB expense is reported in the Government-Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds. 10,970,003 Unavailable revenues recorded in the Fund Financial Statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 3,871,386
Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue of the internal service funds was reported with governmental activities. 8,682,243
Change in Net Position of Governmental Activities 64,460,307$ Amounts reported for governmental activities in the Government-Wide Statement of Activities were different because:

See accompanying Notes to Basic Financial Statements
37 909
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38 910

PROPRIETARY FUND FINANCIAL STATEMENTS
Proprietary funds account for operations financed and operated in a manner similar to a private business enterprise.

The intent of the City is that most of the cost of providing goods and services be financed primarily through user charges.

The concept of major funds extends to proprietary funds. The City has identified the funds below as major proprietary funds in the current fiscal year.

Generally accepted accounting principles do not provide for the disclosure of budget versus actual comparisons regarding proprietary funds that are major.

The Richmond Housing Authority fund accounts for all funds provided by the Department of Housing and Urban Development (HUD) to assist low income families in obtaining decent, safe and sanitary housing.

The Por
t of Richmond fund accounts for all financial transactions relating to the City-owned marine terminal facilities and commercial property rentals.

The Municipal Sewer fund accounts for all financial transactions relating to the City's Wastewater Collection and Treatment. Services are on a user charge basis to residents and business owners located in Richmond. 39 911
City of Richmond
Statement of Net Position
Proprietary Funds
For the year ended June 30, 2025
Richmond Housing Port of Municipal Other Enter prise
Authority Richmond Sewer Funds
ASSETS
Current assets:

Cash and investments 3,503,338$ 20,505,373$ 39,374,021$ 7,270,685$ Restricted cash and investments 97,786 - 2,971,777 96,768 Receivables:

Accounts, net 658,398 6,213,344 62,532 264,111 Interest - 45,364 73,527 14,378 Grants 1,011,583 - - 993,683 Leases - 1,545,656 - 225,235 Prepaids - - - - Total current assets 5,271,105 28,309,737 42,481,857 8,864,860 Noncurrent assets:

Receivables:

Due from developer 10,221,743 - - - Lease receivables - 52,228,749 - 4,889,441 Capital assets:

Nondepreciable 1,708,686 5,845,256 122,983,522 7,229,907 Depreciable 44,836,474 87,500,286 191,344,030 35,368,899 Less accumulated depreciation (30,158,605) (69,499,895) (91,636,143) (33,642,918) Net capital assets 16,386,555 23,845,647 222,691,409 8,955,888 Total noncurrent assets 26,608,298 76,074,396 222,691,409 13,845,329 Total assets 31,879,403 104,384,133 265,173,266 22,710,189

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension 300,752 183,996 614,141 326,143 Deferred outflows of resources - OPEB 348 151 467 307 Deferred charge on refunding - - 4,859,341 - Total deferred outflows of resources 301,100 184,147 5,473,949 326,450

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 1,437,298 565,093 4,920,050 483,574 Interest payable - - 2,565,375 78,456 Due to other funds - - - 34,465 Refundable deposits 125,629 263,423 - 99,252 Unearned revenue 1,831,580 535,374 36,280 - Compensated absences - current 35,685 15,889 65,884 35,761 Claims payable - current - - - - Long-term debt - current - - 4,781,558 121,227 Total current liabilities 3,430,192 1,379,779 12,369,147 852,735 Noncurrent liabilities:

Advances from other funds - 7,502,950 - - Compensated absences 58,975 44,758 194,592 135,424 Claims payable - - - - Long-term debt 700,000 - 167,867,125 1,780,726 Net pension liability 1,410,867 863,155 2,881,025 1,529,989 Net OPEB liability 573,782 248,639 769,824 506,841 Total noncurrent liabilities 2,743,624 8,659,502 171,712,566 3,952,980 Total liabilities 6,173,816 10,039,281 184,081,713 4,805,715

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - OPEB 71,470 30,970 95,889 63,132 Deferred inflows of resources - leases - 50,755,764 - 4,921,202 Total deferred inflows of resources 71,470 50,786,734 95,889 4,984,334

NET POSITION (DEFICIT)
Net investment in capital assets 15,686,555 23,845,647 54,902,067 7,053,935 Restricted for debt service - - 2,971,777 96,768 Unrestricted 10,248,662 19,896,618 28,595,769 6,095,887 Total net position 25,935,217$ 43,742,265 $ 86,469,613 $ 13,246,590 $ Business-Type Activities
40 912
Business-Type
Activities
Governmental
Activities
Total Enterprise Internal Service
Funds Funds
70,653,417$ 77,596,366$
3,166,331 -
7,198,385 -
133,269 138,965
2,005,266 923,341
1,770,891 -
- 99,855
84,927,559 78,758,527
10,221,743 -
57,118,190 -
137,767,371 5,320,774
359,049,689 36,729,775
(224,937,561) (25,228,803)
271,879,499 16,821,746
339,219,432 16,821,746
424,146,991 95,580,273
1,425,032 158,097
1,273 174
4,859,341 -
6,285,646 158,271
7,406,015 848,189
2,643,831 4,490
34,465 -
488,304 -
2,403,234 -
153,219 9,011
- 15,600,347
4,902,785 294,381
18,031,853 16,756,418
7,502,950 -
433,749 21,690
- 42,504,295
170,347,851 624,265
6,685,036 741,655
2,099,086 286,891
187,068,672 44,178,796
205,100,525 60,935,214
261,461 35,735
55,676,966 -
55,938,427 35,735
101,488,204 15,903,100
3,068,545 -
64,836,936 18,864,495
169,393,685$ 34,767,595$
See accompanying Notes to Basic Financial Statements
41 913
City of Richmond
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2025
Richmond Housing Port of Municipal Other Enterprise
Authority Richmond Sewer Funds
OPERATING REVENUES:

Rental 353,506$ 4,200,163$ -$ 168,642$ Service charges 30,000 656,579 33,217,533 2,794,774 Lease income - 6,360,197 - 351,721 Other 7,001 532 2,250,250 500 Total operating revenues 390,507 11,217,471 35,467,783 3,315,637 OPERATING EXPENSES:

Salaries and benefits 859,328 546,548 2,065,712 1,016,104 General and administrative 960,402 1,973,592 16,429,151 1,966,863 Maintenance 935,144 251,212 234,489 673,728 De
preciation - 3,053,479 3,966,198 130,743 Claims losses - - - - Other 14,472 (5,168) 6,594 - Total operating expenses 2,769,346 5,819,663 22,702,144 3,787,438 OPERATING INCOME (LOSS) (2,378,839) 5,397,808 12,765,639 (471,801) NONOPERATING REVENUES (EXPENSES):

Interest income 79 1,760,396 1,362,822 425,988 Grants 2,491,939 - - 2,539,989 Interest ex
pense - (550) (5,437,366) (86,023) Total nonoperating revenues (expenses) 2,492,018 1,759,846 (4,074,544) 2,879,954 Income (loss) before
contributions and transfers 113,179 7,157,654 8,691,095 2,408,153 CONTRIBUTIONS AND TRANSFERS:

Transfers i
n 351,926 - - 72,037 Transfers out - - - (86,778) Total contributions and transfers 351,926 - - (14,741) Change in net position 465,105 7,157,654 8,691,095 2,393,412 NET POSITION:

Be
ginning of year 25,528,082 36,592,593 80,253,961 10,940,747 Restatements (57,970) (7,982) (2,475,443) (87,569) Beginning of year, as restated 25,470,112 36,584,611 77,778,518 10,853,178 End of year 25,935,217$ 43,742,265$ 86,469,613$ 13,246,590$ Business-Type Activities
42 914
Business-Type
Activities
Governmental
Activities
Total Enterprise Internal Service
Funds Funds
4,722,311$ - $
36,698,886 41,148,369
6,711,918 -
2,258,283 -
50,391,398 41,148,369
4,487,692 2,653,026
21,330,008 1,579,033
2,094,573 156,890
7,150,420 2,432,250
- 24,519,469
15,898 29,402
35,078,591 31,370,070
15,312,807 9,778,299
3,549,285 2,659,694
5,031,928 -
(5,523,939) (41,488)
3,057,274 2,618,206
18,370,081 12,396,505
423,963 426,019
(86,778) (4,140,281)
337,185 (3,714,262)
18,707,266 8,682,243
153,315,383 26,088,128
(2,628,964) (2,776)
150,686,419 26,085,352
169,393,685$ 34,767,595$
See accompanying Notes to Basic Financial Statements
43 915
City of Richmond
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2025
Richmond Housing Port of Municipal Other Enterprise
Authority Richmond Sewer Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers/interfund services 377,090$ 10,323,599$ 35,492,643$ 2,915,620$ Payments to suppliers (1,901,604) (2,010,514) (28,652,924) (2,659,749) Payments to employees (1,096,261) (626,968) (2,027,057) (1,065,705) Insurance premiums and claims paid - - - - Net cash provided by (used in) operating activities (2,620,775) 7,686,117 4,812,662 (809,834)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Interfund receipts (payments) - (4,641,912) - (42,445) Receipts from other governments 2,491,939 - - - Transfers in 351,926 - - 72,037 Transfers out - - - (86,778) Net cash provided by (used in)
noncapital financing activities 2,843,865 (4,641,912) - (57,186)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Grant receipts - - - 2,539,989 Acquisition of capital assets - (784,306) (13,487,158) (350,529) Issuance of long-term debt - - 7,415,273 - Principal payments on capital debt - - (2,930,000) (116,007) Interest paid - (550) (4,675,874) (90,808) Net cash provided by (used in)
capital and related financing activities - (784,856) (13,677,759) 1,982,645 CASH FLOWS FROM INVESTING ACTIVITIES:

Interest 79 1,737,438 1,367,864 420,895 Net cash provided by (used in) investing activities 79 1,737,438 1,367,864 420,895 Net cash flows 223,169 3,996,787 (7,497,233) 1,536,520 CASH AND INVESTMENTS - Beginning of year 3,377,955 16,508,586 49,843,031 5,830,933 CASH AND INVESTMENTS - End of year 3,601,124$ 20,505,373 $ 42,345,798 $ 7,367,453 $

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

Operating income (loss) (2,378,839)$ 5,397,808$ 12,765,639$ (471,801)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation expense - 3,053,479 3,966,198 130,743 Changes in assets and liabilities:

Receivables, net (30,950) (195,930) 24,860 244,965 Prepaids and other assets - - - - Accounts payable and accrued liabilities 6,360 184,122 (11,982,690) (23,089) Refundable deposits 2,054 25,000 - 3,931 Unearned revenue 17,533 1,196 - (591,867) Compensated absences payable 2,897 21,079 125,335 6,862 Claims payable - - - - Net pension liability and deferred outflows/inflows (127,462) (52,806) 64,080 42,794 Net OPEB liability and deferred outflows/inflows (112,368) (48,693) (150,760) (99,257) Lease receivable and deferred outflows/inflows - (699,138) - (53,115) Net cash provided by (used in) operating activities (2,620,775)$ 7,686,117$ 4,812,662$ (809,834)$ Business-Type Activities
44 916
Business-Type
Activities
Governmental
Activities
Total Enterprise Internal Service
Funds Funds
49,108,952$ 41,148,369 $
(35,224,791) (2,738,948)
(4,815,991) (2,897,934)
- (18,586,391)
9,068,170 16,925,096
(4,684,357) -
2,491,939 -
423,963 426,019
(86,778) (4,140,281)
(1,855,233) (3,714,262)
2,539,989 -
(14,621,993) (2,756,644)
7,415,273 -
(3,046,007) (283,146)
(4,767,232) (42,872)
(12,479,970) (3,082,662)
3,526,276 2,620,457
3,526,276 2,620,457
(1,740,757) 12,748,629
75,560,505 64,847,737
73,819,748$ 77,596,366$
15,312,807$ 9,778,299$
7,150,420 2,432,250
42,945 -
- 119,825
(11,815,297) (1,093,448)
30,985 -
(573,138) -
156,173 14,899
- 5,933,078
(73,394) (203,623)
(411,078) (56,184)
(752,253) -
9,068,170$ 16,925,096$
See accompanying Notes to Basic Financial Statements
45 917
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46 918

FIDUCIARY FUND FINANCIAL STATEMENTS
Fiduciary funds are presented separately from the Government-Wide and Fund Financial Statements.

Trust funds are used to account for assets held by the City as a trustee agent for individuals, private organizations, or other governments.

Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, or other governments.

The financial activities of the Trust and Custodial funds are excluded from the City-wide financial statements, but are presented in separate Fiduciary Fund Financial Statements. 47 919
City of Richmond
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
Private-Purpose
Trust Funds Custodial Funds
ASSETS
Cash and investments 13,934,247 $ 6,182,337 $ Restricted cash and investments 15,591,171 1,018,956 Interest receivable 2,382 12,709 Prepaids and other assets 4,740,753 - Total assets 34,268,553 7,214,002

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - deferred loss on refunding 256,237 - Total deferred outflows of resources 256,237 -

LIABILITIES
Accounts payable and accrued liabilities 33,675 2,632 Interest payable 347,828 -
Long-term debt:

Due within one year 8,130,000 - Due in more than one year 24,659,010 - Total liabilities 33,170,513 2,632 NET POSITION:

Held in trust for other governments 1,354,277 - Restricted for individuals, organizations, and other governments - 7,211,370 Total net position 1,354,277$ 7,211,370$ See accompanying Notes to Basic Financial Statements
48 920
City of Richmond
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2025
Private-Purpose
Trust Funds Custodial Funds
ADDITIONS:

Property taxes 11,757,814$ 1,054,903$ Contributions to trust - employers 16,730 234,328 Net investment income:

Interest income 846,055 280,540 Gain from sale of property 486,461 - Total additions 13,107,060 1,569,771 DEDUCTIONS:

Community development 1,328,399 - Payments in accordance with trust agreements 270,415 - Interest and fiscal charges 1,298,107 882,918 Other - 112,258 Total deductions 2,896,921 995,176 Change in net position 10,210,139 574,595 NET POSITION:

Beginning of year (8,855,862) 6,636,775 End of year 1,354,277$ 7,211,370$ See accompanying Notes to Basic Financial Statements
49 921
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50 922

NOTES TO BASIC

FINANCIAL STATEMENTS

51 923

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52 924
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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

A. Financial Reporting Entity
The City was incorporated in 1905 under the laws of the State of California and adopted its charter in 1909. The City operates under a Council-Manager fo rm of government and provides the following services to its citizens as authorized by its char ter: police and fire protection, planning and community development, streets and roads, parks and recreati on, library, sewage treatment, drainage and capital projects. In addition, the City has a port, marina , municipal and storm sewer enterprises, a housing authority, a joint powers financing authority, and a parking authority which is inactive.

The accompanying basic financial statements present the financial activity of the City, which is the primary government presented, along with the financ ial activities of its component units, which are entities for which the City is financ ially accountable. Although they ar e separate legal entities, blended component units are in substance part of the City’s operations and are reported as an integral part of the City’s financial statements. The discretely presented component unit, on the other hand, is reported in a separate column in the basic financial statements to emphasize it is legally separate from the government.

Primary Government
The financial statements of the primary government of the City include the activities of the City as well as the Richmond Housing Authority, the Richmond Joint Powers Financing Authority, the Richmond Neighborhood Stabilization Corporation, the Richmond Parking Authority, the Richmond Municipal Sewer District, and the Richmond Surplus Property Authority all of which are controlled by and dependent on the City. While these are separate legal entities, their financial activities are integral to those of the City. Their financial activities have been aggregated and merged (termed “blended”) with those of the primary government of the City in the accompanying financial statements.

Blended Component Units
Richmond Housing Authority (Housing Authority) – Formed in 1941 as a separate legal entity under the provisions of the Housing Act of 1937, the Housing Authority was established to use funds provided by the Department of Housing and Urban Development (HUD) to rehabilitate local deteriorated housing and to subsidize low-income families in obtaining decent, safe, and sanitary housing needs.

Although the Housing Authority is a separate legal entity, it is an integral part of the City. The City exercises significant financial and management control over the Housing Authority and members of City Council serve as the governing board of the Housing Authority. The financial statements of the Housing Authority are included in the City’s basic financial st atements as an enterprise fund. Separate financial statements for the Housing Authority may be obtained by contacting the Richmond Housing Authority, 450 Civic Center Plaza 2nd Floor, Richmond, California 94804. 53 925
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued A. Financial Reporting Entity, Continued
Blended Component Units, Continued
Richmond Joint Powers Financing Authority (JPFA) – A joint exercise of powers authority formed on December 1, 1989, by and between the City and the former Redevelopment Agency, the JPFA was created to assist the City, the Redevelopment Agency, and other local public agencies in financing and refinancing capital improvements and working capital pursuant to the Marks-Roos Local Bond Pooling Act of 1985. The JPFA is authorized to purchase obligations of the City, Redevelopment Agency, and other local public agencies.

Although the JPFA is a separate legal entity, it is an integral part of the City. The City exercises significant financial and management control over the JPFA and the members of the City Council serve as the Board of Directors. The operations of the JPFA are included in the City’s basic financial statements as a debt service fund. Separate financial statements for th e JPFA may be obtained by contacting Finance Department, City of Richmond, 450 Civic Center Plaza, Richmond, California 94804.

Richmond Neighborhood Stabilization Corporation (RNSC) – A California nonprofit public benefit Corporation formed in July 2009 by the City and the former Redevelopment Agency under the laws of the State of California. The Corporation was organize d for the purpose of administering and operating the City’s Neighborhood Stabilization Program (N SP), which includes purchasing, developing, financing, rehabilitating, land banking and/or demolis hing blighted properties and foreclosed or abandoned properties utilizing the NSP funds or other public and private funding sources, and assisting the City and the Agency in provid ing affordable home ownership opportunities for households of low and moderate income by facilitating the financing necessary for the sale and resale of deed-restricted affordable ownership units to low and moderate income households at affordable costs, and other similar functions.

The Corporation is governed by a board of directors consisting of the City Manager, the Finance Director, and five other City and Housing Authority Directors. Although the RNSC is a separate legal entity, it is an integral part of the City. The City exercises si gnificant financial and management control over the RNSC and members of the Board of Directors are appointed by City Council and City management has operational responsibility for the RNSC. The operations of the RNSC are included in the City’s basic financial statements as a special revenue fund. Separate financial statements for the RNSC may be obtained by contacting the Finance Department under RNSC, City of Richmond, 450 Civic Center Plaza, Richmond, California 94804.

Richmond Surplus Property Authority – Formed to become the owner of certain property declared surplus by the U.S. Government, the Authority is a separa te legal entity but it is an integral part of the City. The City exercises significant financial and management control over the Authority and members of the City Council serve as the governing board of the Authority. The Authority was reactivated in fiscal year 2011 to facilitate certain Port of Richmond transactions. The financial activities of the Authority are included in the Port of Richmond Enterprise Fund. Separate financial statements are not issued for the Authority.
54 926
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued A. Financial Reporting Entity, Continued
Blended Component Units, Continued
Richmond Parking Authority (Parking Authority) – Fo rmed in 1975 pursuant to the provisions of California statutes for the purpose of financing the construction of off-street parking facilities. Although the Parking Authority is a separate legal entity, it is an integral part of the City. The City exercises significant financial and management control over the Parking Authority and members of the City Council serve as the governing board of the Parking Authority. The Parking Authority is inactive.

Richmond Municipal Sewer District (RMSD) – The Richmond Municipal Sewer District (RMSD) was established on September 17, 1956, pursuant to the Municipal Sewer District Act of 1911. It encompasses approximately fourteen square miles of the City of R i c h m o n d . T h e d i s t r i c t w a s f o r m e d t o p r o v i d e “wastewater collection and treatment for the residents and businesses located in the central part of the City of Richmond”.

The RMSD contracts the operation and maintenance of the Wastewater Treatment Plant and the Sanitary Sewer Collection System to Veolia Water North America (formerly US Filter). However, the City of Richmond still maintains complete ownership of all th e assets for both the wastewater treatment plant and the collection system.

The district is a separate legal entity, but it is an integral part of the City. The City exercises significant financial and management control over the district and members of the City Council serve as the governing board of the district. The financial activities of the district are included in the Municipal Sewer Enterprise Fund. Separate financial statements are not issued for the district.

Discretely Presented Component Units
RHA Properties – A joint powers agreement between the City and the Housing Authority formed in 2004 for the purpose of owning and managing the operat ions of an affordable housing residential complex known as The Hilltop at Westridge Apartments in the City, dedicated to the needs of elderly persons.

The City and the Housing Authority funded the acquisition of this complex through the issuance of debt.

The City and Housing Authority exercise significant financial and management control over RHA Properties and appoint members of the Board of Di rectors, however RHA Properties manages its own programs separate from the City or the Housing Aut hority. Therefore, the financial activities of RHA Properties are discretely presented in the RHA Properties Component Unit column of the Statement of Net Position and the Statement of Activities.
55 927
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued A. Financial Reporting Entity, Continued
Discretely Presented Component Units, Continued
RHA Housing Corporation – RHA Housing Corporation was incorporated and registered on January 26, 2004 as a California nonprofit public benefit corporation to benefit and support the RHA with respect to the Easter Hill development. RHA Housing Corporation entered into RAD Conversion redevelopment activities and it acts as the sole and managing me mber of RHA RAD LLC. The Corporation’s fiscal year ends on December 31. The City and Housing Authority exercise significant financial and management control over RHA Housing Corporation and appoint members of the Board of Directors, however RHA Housing Corporation manages its own programs separate from the City or the Housing Authority.

Therefore, the financial activities of RHA Housing Corporation are discretely presented in the RHA Housing Corporation Component Unit column of the Statement of Net Position and the Statement of Activities. Separate financial statements for RHA Housing Corporation may be obtained by contacting the Richmond Housing Authority, 450 Civic Center Plaza 2 nd Floor, Richmond, California 94804.

RHA RAD LLC – A California limited liability company was formed on July 11, 2013 by RHA Housing Corporation, the sole and managing member. The co mpany is operated exclusively to further the tax exempt charitable purposes of the sole and managi ng member to provide affordable housing for low- income persons where no adequate housing exists for such persons, and to own and operate housing for the benefit of low-income persons who are in need of affordable, decent, safe and sanitary housing and related services, where an inadequate supply of hous ing exists for such persons. The City and Housing Authority exercise significant financial and management control over RHA RAD LLC and RHA Housing Corporation is the sole member of RHA RAD LLC, however RHA RAD LLC manages its own programs separate from the City or the Housing Authority. Therefore, the financial activities of RHA RAD LLC are discretely presented in the RHA RAD LLC Component Unit column of the Statement of Net Position and the Statement of Activities. Separate financial statements for RHA RAD LLC may be obtained by contacting the Richmond Housing Authority, 450 Civic Center Plaza 2 nd Floor, Richmond, California
94804.

In order for the Authority to proceed in its participation into the RAD Program as discussed in Note 18, RHA RAD LLC shall act as the managing general partner of RHA RAD Housing Partnership LP.

B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund ar e accounted for in a separate set of self-balancing accounts that comprise its assets, liabilities, defe rred outflows/inflows of resources, fund equity, revenues, and expenditures or expenses. City resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled.
56 928
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Government-Wide Financial Statements
The Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements presen t summaries of Governmental and Business-Type Activities for the City accompanied by a total column. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties. Fiduciary activities of the City are not included in these statements; they are presented separately.

The Statement of Activities 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 thos e that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular pr ogram and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

The Government-wide financial statements are pres ented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets, deferred outflows/inflows of resources and liabilities, includ ing capital assets as well as infrastructure assets and long-term liabilities, are included in the Statement of Net Position. The Statement of Activities presents all the City’s revenues, expenses and other changes in Net Position . Under the accrual basis of accounting, revenues are recognized in the period in wh ich they are earned while expenses are recognized in the period in which the liability is incurred.

Certain eliminations have been made in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and th e business-type activities, which are presented as internal balances and eliminated in the total column. In the Statement of Activities, internal service fund transactions have been eliminated. However, transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
 Due to/from other funds
 Advances to/from other funds
 Transfers in/out
The City applies all applicable GASB pronou ncements including all NCGA Statements and Interpretations currently in effect.
57 929
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Governmental Fund Financial Statements

Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and in the aggregate for all non-major funds. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the Government-Wide financial statements.

All governmental funds are accounted for on the “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingl y, only current assets and current liabilities are included on the Balance Sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

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

Accordingly, revenues are recorded when received such as business licenses and fines and penalties in cash, except that revenues subject to accrual (gen erally ninety days after the fiscal year-end) are recognized when due. The primary revenue sources which have been treated as susceptible to accrual by the City are property taxes, sales taxes, transi ent occupancy taxes, franchise taxes, certain other intergovernmental revenues, and earnings on investments. Expenditures are recorded in the accounting period in which the related fund liability is incurred also generally ninety days after the fiscal year end.

Reconciliations of the Fund Financial Statements to the Government-Wide Financial Statements are provided to explain the differences between the two approaches.

The City reports the following major governmental funds in the accompanying financial statements:

General Fund – the General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds and the related expenditures. The General Fund accounts for all financial resources of a governmental unit which are not accounted for in another fund.

Community Development and Loan Programs Special Revenue Fund – accounts for the receipt of Community Development Block Grant, HOME Investment Partnership Program, and Neighborhood Stabilization Program grant monies and the use of the grants. The Fund also accounts for the low and moderate income housing activities of the City as Housing Successor to the former Redevelopment Agency. Related to the grant disallowed costs discu ssed in Note 4, the City purchased certain loans that had previously been funded with Community Development Block Grant and HOME funds. The grants and loan programs are to be used to provide, within the City of Richmond, new affordable housing, improve existing housing conditions, assi st homeless and disabled with housing, and to expand economic opportunities in business and employment for low and moderate income residents.

General Purpose Fund – accounts for other restricted monies that are to be used for the specific purposes for which the funds were set up.

General Capital Improvement Fund – accounts fo r monies designated for capital improvement projects.
58 930
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Fund Net Position, and a St atement of Cash Flows for each major proprietary fund and in the aggregate for all non-major funds. A column representing internal service funds is also presented in these statements. However, internal se rvice balances and activi ties have been combined with the governmental activities in the Government-Wide Financial Statements.

Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets, liab ilities and deferred outflows/inflows of resources (whether current or non-current) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Fund Net Positi on presents increases (revenues) and decreases (expenses) in total net position.

Under the accrual basis of accounting , revenues are recognized in the period in which they are earned while expenses are recognized in th e period in which the liability is incurred, regardless of when cash changes hands.

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

The City reports the following major enterprise funds as proprietary funds of the City:

Richmond Housing Authority – This fund accounts for all funds provided by the Department of Housing and Urban Development (HUD) to assist low income families in obta ining decent, safe and sanitary housing.

Port of Richmond – This fund accounts for all financial transactions relating to the City-owned marine terminal facilities and commercial property rentals.

Municipal Sewer – This fund accounts for all financia l transactions relating to the City’s Wastewater Collection and Treatment. Services are on a user charge basis to residents and business owners located in Richmond.

The City also reports the following proprietary fund type:

Internal Service Funds – The funds account fo r insurance reserves, equipment services and replacement and compensated absences all of which are provided to other departments on a cost- reimbursement basis.
59 931
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Fiduciary Fund Financial Statements
Fiduciary Fund Financial Statements include a Statement of Fiduciary Net Position, and a Statement of Changes in Fiduciary Net Position. The City’s Fidu ciary funds represent Priv ate-Purpose Trust funds and Custodial funds. Custodial funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Private-Purp ose Trust funds are accounted for on an economic resources measurement focus under the accrual basis of accounting.

The City reports the following fiduciary fund types:

Trust Funds - The Pt. Molate Private-Purpose Trust Fund is used to account for assets held by the City as an agent for the U.S. Navy and a private developer for the cleanup of Point Molate as discussed in Note 18. The Successor Agency to the Richmo nd Community Redevelopment Agency Private- Purpose Trust Fund was established as of February 1, 2012 to account for the activities of the Successor Agency to the former Richmond Community Redeve lopment Agency as discussed in Note 19. The financial activities of the Trust Funds are excluded from the Government-Wide Financial Statements, but are presented in the separate Fiduciary Fund Financial Statements.

Custodial Funds – These funds are used to account for assets held by the City as an agent for individuals, private organizations, and other gove rnments, including special assessment districts within the City and non-public organizations. The financial activities of these funds are excluded from the Government-Wide Financial Statement, but are pr esented in separate Fiduciary Fund Financial Statements.

C. Cash and Investments
The City maintains a cash and investments pool that is available for use by all funds. Each fund’s portion of this pool is displayed as cash and investments on the balance sheet for governmental funds and the statements of net position for proprietary and fiduciary funds. Investments are stated at fair value.

In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB Statement No. 3) , certain disclosure requirements for deposi ts and investment risks were made in the following areas:
 Interest Rate Risk
 Credit Risk
o Overall
o Custodial Credit Risk
o Concentrations of Credit Risk
In addition, other disclosures are specified includin g use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end, and other disclosures. 60 932
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued C. Cash and Investments, Continued
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid money market investments with maturities of one-year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. The City categorizes the fair value measurements of its in vestments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, wh ich has three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The City did not have any investments measured using Level 3 inputs as of June 30, 2025.

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

Cash equivalents are considered amounts in dem and deposits and short-term investments with a maturity date within three months of the date acquired by the Ci ty and are presented as “cash and investments” in the accompanying basic financial statements.

For the purpose of the statement of cash flows, the City considers all pooled cash and investments (consisting of cash and investments and restricted cash and investments) held by the City as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The City also considers all non-pooled cash and investments (consisting of cash with fiscal agent and restricted cash and investments held by fiscal agent) as cash and cash equivalents because investments meet the criteria for cash and equivalents defined above.

D. Prepaids and Supplies
Certain payments to vendors reflect costs applicable to future fiscal years and are recorded as prepaid items in both Government-Wide and Fund Financial Statements. The cost of prepaid items is recorded as expenditures/expenses when consumed, rather than when purchased. Prepaid items in governmental funds are equally offset by nonspendable fund bal ance which indicates that they do not constitute available spendable resources even though they are a component of net current assets.

Supplies are valued at cost using the weighted av erage method. Supplies of the governmental funds consist of expendable supplies held for consumption. The cost is recorded as an expenditure in the governmental funds at the time individual invent ory items are consumed rather than when purchased.

Reported governmental fund inventories are equa lly offset by nonspendable fund balance which indicates that they do not constitute available spendable resources even though they are a component of net current assets.
61 933
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued E. Capital Assets
Capital assets are valued at historical cost or at estimated acquisition value on the date donated. If actual historical costs are not available, assets have been valued at approximate historical cost. The City’s policy is to capitalize assets costing at least $5,000, and the Housing Authority ’s policy is to capitalize assets costing at least $1,000. Depreciation is recorded on a straight-line basis over the following estimated useful lives:

Infrastructure includes street systems, parks, recreation lands, improvement systems, stormwater collection systems, and buildings combined with site amenities such as parking and landscaped areas used by the City
in the conduct of its business. Each major infrastructure system is divide d into subsystems. For example, the street system includ es pavement, curbs and gutters, sidewalks, medians, streetlights, tra
ffic control devices such as signs, signals and pavement m arkings, landscaping and land.

In the case of the initial capitalization of general infrastructure assets reported by governmental activities, the City chose to include all such items regardless of their acquisition date or amount.

Net interest costs incurred during the construction of capital assets for the business-type and proprietary funds are capitalized as part of the asset’s cost.

F. Property Held for Resale
Property held for resale is accounted for at the lower of cost or net realizable value or agreed upon sales price if a disposition agreement has been made with a developer.

The City received five properties for resale in fisc al year 2013 with a book value of $573,822 from the acceptance of a deed in lieu of foreclosure on the pr operty related to developer defaults on prior loans under the Richmond Neighborhood Stabilization loan program discussed in Note 4. These properties were rehabilitated during fiscal years 2014 and 2015 increasing the carrying value by a total of $749,716 and $39,303, respectively. In fiscal year 2014, the Ci ty received an additional four properties with a carrying value of $648,238. Six properties were sold in fiscal year 2016, the remaining two properties held for resale had a book value of $671,255 as of June 30, 2017. In fiscal year 2018, one property was sold during the year, and the carrying value of the one remaining property held for resale was $78,016 as of June 30, 2025.

Type Useful Life
Improvements other than buildings 20 years
Buildings and building improvements 20 - 50 years
Vehicles 3 - 10 years
Infrastructure 25 - 50 years
Machinery and equipment 3 - 20 years
62 934
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued G. Property Taxes
The State of California’s Constitution limits the combined maximum property tax rate on any given property to 1% of its assessed value except for vo ter approved incremental property taxes. Assessed value equals purchase price and may be adjusted by no more than 2% per year unless the property is modified, sold, or transferred. The State Legislature distributes property tax receipts from among the counties, cities, school districts, and other districts.

Contra Costa County assesses properties and bills for and collects property taxes as follows:

The term “unsecured” refers to taxes on personal property other than land and buildings. These taxes are secured by liens on the property being taxed. Pr operty taxes levied are recorded as revenue in the fiscal year of levy.

H. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet report a separate section for deferred outflows of resources. This sepa rate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The first item that qualifies for reporting in this category is the deferred charge on refunding reported in the statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The City also has deferred outflows of resources related to pensions and OPEB as discussed in Notes 12 and 14.

In addition to liabilities, the statement of net posi tion or balance sheet repo rt a separate section for deferred inflows of resources. This separate financial statement elemen t, deferred inflows of resources, represents an acquisition of net asse ts or fund balance that applies to a future period(s) and so will not b e r e c o g n i z e d a s a n i n f l o w o f r e s o u r c e s ( r e v e n u e ) until that time. The first item which qualifies for reporting in this category arises only under a modified accrual basis of accounting. Accordingly, the item, unavailable revenue, is only reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from three sources: loans receivable, grants receivable and interest on interfund advances. See Note 9 for further discussion . The City also has deferred inflows of resources related to leases, pensions and OPEB as discussed in Note 5, Notes 12 and 14. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

Secured Unsecured
Valuation/lien dates January 1 March 1
Levied dates July 1 July 1
Due dates 50% on November 1 July 1
50% on February 1
Delinquent as of December 10 (for November) August 31
April 10 (for February)
63 935
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued I. Net Position and Fund Balances
Net Position
In the City-wide financial statements, Net Position is classified as follows:

Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation plus deferred outflows of resources associated with the refunding of related capital debt, reduced by outstanding debt that was used for the acquisition, construction, or improvement of these capital assets.

Restricted Net Position – This amount is restricted by external creditors, grantors, contributors, laws or regulations of other governments. In addition, net position restricted for pension benefits are restricted as a result of enabling legislation.

Unrestricted Net Position – This amount is all net position that does not meet the definition of “net investment in capital assets” or “restricted net position.” When an expense is incurred for purposes for which bo th restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first.

Fund Balances
Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund’s cash and receivables, less its liabilities.

The City’s fund balances are classified based on sp ending constraints imposed on the use of resources.

For programs with multiple funding sources, the Ci ty prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassign ed. Each category in the following hierarchy is ranked according to the degree of spending constraint:

Nonspendable represents balances set aside to indi cate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, interfund advances and notes receivable are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then nonspendable amounts are required to be presented as a component of the applicable category.

Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose.

Committed fund balances have constraints imposed by formal action of the City Council which may be altered only by the same formal action of the City Council. The highest level of formal action of the City Council is an Ordinance.
64 936
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued I. Net Position and Fund Balances, Continued
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee, the Finance Director, and may be changed at the discretion of the City Council or its designee, during the budget approval process or via bu dget amendments in accordance with the City’s adopted budget policy. This category includes encumbrances; nonspendables, when it is the City’s intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed.

Unassigned fund balance represents residual amounts that have no t been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.

J. Compensated Absences
The City recognizes a liability for compensated absenc es for leave time that (1) has been earned for services previously rendered by employees, (2) a ccumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used as time off or settled (for example paid in cash to the employee) during or upon separation fr om employment. Based on the criteria listed, three types of leave qualify for liability recognition for compensated absences – vacation, sick leave, and compensated time-off. The liability for compensated absences is reported as incurred in the government- wide and Proprietary Fund Financial Statements. A liability for compensated absences is recorded in the governmental funds only if the liability has matured because of employee resignations or retirements.

The liability for compensated absenc es includes salary-related bene fits, where applicable. The flow assumption used by the City in estimating compensated absence amounts is that the oldest accrued leave is used first by employees (first in first out).

K. Bond Issuance Costs, Original Issue Discounts and Premiums and Deferred Charge on Refunding For proprietary fund types, bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Any differences between proprietary refunded debt and the debt issued to refund it, called a deferred charge on refunding, is amortized over the remaining life of either the refunded debt or the refunding debt, whichever is shorter. The deferred charge on refunding is reported as a deferred inflow or outflow of resources, as applicable. Bond issuance costs, other than prepaid insurance, are expensed in the year incurred.

L. Pension
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expens e, information about the fi duciary net position of the City’s California Public Employees’ Retirement System (CalPERS) and additions to/deductions from the Plans’ fiduciary net position have been determ ined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (i ncluding refunds of empl oyee contributions) are recognized when currently due and payable in a ccordance with the benefit terms. Investments are reported at fair value.
65 937
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued M. Other Post Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, de ferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plans and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by the CalPERS-CERBT Trust and the PARS Trust.

For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

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

2. CASH AND INVESTMENTS
The City maintains a cash and investment pool for a ll funds. Certain restricted funds that are held and invested by independent outside custodians through contractual agreements are not pooled. These restricted funds include cash and investment held by trustees. Interest income earned on pooled cash and investments is allocated to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related funds.

The following is a summary of cash and investments at June 30, 2025:

A. Classification
Cash and investments at June 30, 2025 consist of the following:

Total Discrete Total
Governmental Business-Type Total Primary Component Fiduciary Cash and Activities Activities Government Units Funds Investments Cash and investments 328,480,622$ 70,653,417$ 399,134,039$ 210,417$ 20,116,584$ 419,461,040$ Restricted cash and investments 19,014,896 3,166,331 22,181,227 - 16,610,127 38,791,354 Total cash and investments 347,495,518$ 73,819,748$ 421,315,266$ 210,417$ 36,726,711$ 458,252,394$ Primary Government
Government-Wide Statement of Net Position
Primary Government:

Local Agency Investment Funds (LAIF) 74,087,899 $
CalTrust Short-Term Fund 185,765,589
CalTrust Medium-Term Fund 96,768
PARS Pension Plan Investment 4,277,473
Wellington Trust Company Mutual Fund (Police and Firemen's Plan) 10,636,777 Money Market Mutual Funds (U.S. Securities) 134,433,353 Held by Trustee:

Money Market Mutual Funds (U.S. Securities) 12,890,966
Guaranteed Investment Contracts 625,001
Total investments 422,813,826
Cash in banks and on hand - Primary Government 35,228,151 Cash in banks - RHA 210,417
Total cash on hand and deposits 35,438,568
Total cash and investments 458,252,394$
66 938
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
B. Deposits
The carrying amount of the City’s cash deposit was $35,438,568 at June 30, 2025. Bank balances before reconciling items were a positive amount of $37,056, 028 at June 30, 2025. The City’s cash deposit was fully insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC). The remaining amount was collateralized with securities held by pledging the financial institutions.

The California Government Code (Code) Section 53 652 requires California banks and savings and loan associations to secure the City’s cash deposits by pl edging securities as collateral. The Code states that collateral pledged in this manner sha ll have the effect of perfecting a secu rity interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City’s name.

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

C. Investments Authorized by the Code and the City’s Investment Policy Under the provisions of the City’s Investment Po licy, and in accordance with California Government Code, the following investments are authorized:

Investments are stated at fair value using the aggregate method in all funds, resulting in the following investment income in all funds for the year ended June 30, 2025:

Minimum Maximum
Maximum Credit Maximum % Investment
Authorized Investment Type Maturity Qualit y of Portfolio in One Issuer U.S. Treasury Bills, Bonds and Notes 5 years A None None Obligations issued by the United States 5 years N/A None None Government Federally Sponsored Agencies
Treasury bonds and notes issued by the State 5 years A None None of California or any local agency with California
Commercial Paper 270 days A 25% 10%
Negotiable Certificates of Deposit 5 years A 30% None
Medium-Term Corporate Notes 5 years A 30% 10%
Money Market Mutual Funds N/A Top rating category 20% 10% Local Agency Investment Fund (LAIF) N/A N/A None $75 Million/Account Investment Trust of California (CalTrust) N/A N/A None None Interest income 15,514,626$
Realized gain (loss) on investments 2,055,508
Total investment income 17,570,134$
67 939
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
C. Investments Authorized by the Code and the City’s Investment Policy, Continued The City’s portfolio value fluctuates in an inverse relationship to any change in interest rate. Accordingly, if interest rates rise, the portfolio value will decline. If interest rates fall, the portfolio value will rise. The portfolio for year-end reporting purposes is treated as if it were all sold. Therefore, fund balance must reflect the portfolio’s change in value. These portfolio value changes are unrealized unless sold.

Generally, the City’s practice is to buy and hold investments until maturity dates. Consequently, the City’s investments are carried at fair value.

The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2025 include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments included the following:

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

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

At June 30, 2025, the City had $74,087,899 invested in LAIF, which had invested 3.81% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 3.00% in the previous year. The LAIF fair value factor of 1.001198310 was used to calculate the fair value of the investments in LAIF.

The City reports its investment in CalTrust at the fa ir value amount provided by CalTrust, which is the same as the value of the pool shares. The balance in the Short-Term Fund is available for withdrawal on demand and the balance in the Medium-Term Fund is available for withdrawal upon two days’ notice, and is based on the accounting records maintained by CalTrust. Included in CalTrust’s investment portfolio are: United States Treasury Notes, Bills, Bo nds or Certificates of Indebtedness; registered state warrants or treasury notes or bonds; California local agency bonds, notes, warrants or other indebtedness; federal agency or United States government-sponsored enterprise obligations; bankers acceptances; commercial paper; negotiable certificates of deposit; repurchase agreements; medium-term notes; money market mutual funds; notes, bonds or other obligation secured by a first priority security interest in securities authoriz ed under Government Code Section 53651; and mortgage passthrough securities, collateralized mortgage obligations, and other asset – backed securities. CalTrust’s Short-Term Fund has a target portfolio duration of 0 to 2 years and CalTrust’s Medium-Term Fund has a target portfolio duration of 1 to 3 years. At June 30, 2025 the Short-Term Fund investments matured in an average of 0.81 years and the Medium-Term Fund investments matured in an average of 2.35 years. 68 940
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
C. Investments Authorized by the Code and the City’s Investment Policy, Continued Prohibited Investments
Under the City’s Investment Policy, the City imposed restrictions on investments. The City cannot invest in any funds in inverse floaters, range notes, or interest only Separate Trading of Registered Interest and Principal of Securities (STRIPS) that are derived from a pool of mortgage s, or in any security that could result in zero interest accrual if held to maturity (other than money market mutual funds). It is the City’s policy not to invest in companies involved in the manufacturing of tobacco and tobacco-related products.

The City will not invest in companies involved in the development or manufacturing of commodities that facilitate violence, war, oppression, aparthei d, arms and weapons, border and mass surveillance industries, mass incarceration and detention, or those utilizing prison labor for production. The City will not investment any funds in international financial instruments that benefited from slavery, in Fossil Fuel companies, or in stocks, bonds, securities, or other obligations issued by provider of Data Broker or Extreme Vetting services to United States Immigration and Customs Enforcement (ICE).

D. Investments Authorized by Debt Issues and Lease Agreements Under the terms of the City’s and Authority’s debt i ssues and lease agreements, the City is subject to various restrictions in the type, ma turity and credit ratings of investments of the unspent proceeds of these issues. These restrictions are generally no more restrictive than those listed above regarding investment of the City’s funds. In addition, some bond indentures authorize investments in guaranteed investment contracts and investment agreements with maturity dates that coincide with the applicable debt maturities. At June 30, 2025, the City was in compliance with the terms of all these restrictions.

E. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturi ng or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

69 941
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
E. Interest Rate Risk, Continued
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity or earliest call date:

12 months
or Less Total
Primary Government:

Local Agency Investment Funds (LAIF) 74,087,899 $ 74,087,899 $ CalTrust Short-Term Fund 185,765,589 185,765,589 CalTrust Medium-Term Fund 96,768 96,768 PARS Pension Plan Investment 4,277,473 4,277,473 Wellington Trust Company Mutual Fund (Police and
Firemen's Plan) 10,636,777 10,636,777 Money Market Mutual Funds (U.S. Securities) 134,433,353 134,433,353 Held by Trustee:

Money Market Mutual Funds (U.S. Securities) 12,890,966 12,890,966 Guaranteed Investment Contracts 625,001 625,001 Total Investments 422,813,826 $ 422,813,826 Cash in banks and on hand - Primary Government 35,228,151 Cash in banks - RHA Housing Corporation 210,417
Total Cash and Investments 458,252,394 $
Remainin
g Maturity (in Months)
70 942
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
F. Credit Risk
Credit risk is the risk that an is suer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating at June 30, 2025 for each investment type:

G. Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its in vestments or collateral securities that are in the possession of an outside party. None of the City’s in vestments were subject to custodial credit risk for the current year.

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

Investment Type AAA AAf/S1+ AA-f/S1 Total
Money Market Mutual Funds (U.S. Securities) 12,890,966$ -$ -$ 12,890,966$ CalTrust Short-Term Fund - 185,765,589 - 185,765,589 CalTrust Medium-Term Fund - - 96,768 96,768 Totals 12,890,966$ 185,765,589$ 96,768$ 198,753,323 Not Rated:

Local Agency Investment Funds (LAIF) 74,087,899
PARS Pension Plan Investment 4,277,473
Wellington Trust Company Mutual Fund (Police and Firemen's Plan) 10,636,777 Guaranteed Investment Contracts 625,001
Money Market Mutual Funds (U.S. Securities) 134,433,353 Total Investments 422,813,826
Cash in Banks and On Hand - Primary Government 35,228,151 Cash in Banks - RHA Housing Corporation 210,417
Total Cash and Investments 458,252,394$
Credit Quality Rating as of Year-End
71 943
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
H. Fair Value Hierarchy, Continued
The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2025:

I. Concentration of Credit Risk
The City had no significant investments in the secu rities of any individual issuers, other than U.S.

Treasury securities, investment pools and money market funds at June 30, 2025.

3. INTERFUND TRANSACTIONS
A. Due To/From Other Funds
Due to/from other fund balances arise in the normal course of business and represent short-term borrowings occurring as a result of expenditures whic h are paid prior to the receipt of revenues. These balances are expected to be repaid shortly after the end of the fiscal year when revenues are received.

The amount for due from one fund to another at June 30, 2025 were as follows:

Total
Investment Type Level 2 Fair Value
Investments Measured at Amortized Cost
Held by Trustee:

Guaranteed Investment Contracts 625,001 $ 625,001 $ Money Market Mutual Funds 12,890,966 12,890,966 Total 13,515,967
Investments not subject to levelling:

Local Agency Investment Funds (LAIF) 74,087,899
CalTrust Short-Term Fund 185,765,589
CalTrust Medium-Term Fund 96,768
PARS Pension Plan Investment 4,277,473
Wellington Trust Company Mutual Fund (Police and Firemen's Plan) 10, 636,777 Money Market Mutual Funds (U.S. Securities) 134,433,353 Total Investments 422,813,826$
Fair Value Measurement Using
Due to Other Funds General Fund Total
Nonmajor Governmental Funds 3,579,603$ 3,579,603 $ Nonmajor Enterprise Funds 34,465 34,465 Total 3,614,068$ 3,614,068 $
Due from Other Funds
72 944
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

3. INTERFUND TRANSACTIONS, Continued
B. Advances To/From Other Funds
At June 30, 2025 the funds below had made advances which were not expected to be repaid within the next year.

In fiscal year 2006 the General Fund established repayment terms for its advance of $17,139,855 to the Port of Richmond Enterprise Fund to assist the Po rt with various lease transactions and other projects.

The advance did not bear interest for the first three years; the next five years it bore an interest rate of 4%, with the balance payable on or before June 30, 2015. The advance repayment terms were amended in October 2013, effective June 30, 2013, to convert the accrued unpaid interest of $745,119 to principal and reduce the advance balance by $842,877, and the advance no longer bears interest. Annual principal payments of $150,000 are due beginning June 30, 2 014 through June 30, 2066, with a final principal payment of $32,593 due on June 30, 2067, and in addition to those payments, the annual berthing cost of the vessel Red Oak Victory at the Port that is to be paid by the General Fund will instead offset and reduce the principal balance of the advance based on an established rental schedule. Historical rental payments from August 2004 to June 30, 2012 totaling $842,877 were applied to the principal balance of the loan as of June 30, 2013. Another provision of the amended agreement provides that upon the sale of any Port property, including Terminal One and Terminal Four, the proceeds from the sale are to be used to repay and reduce the principal balance of the advance. The balance of the advance as of June 30, 2025 is $7,502,950.

C. Transfers In/Out
With Council approval, resources may be transferred from one City fund to another. The purpose of the majority of the transfers is to move General Fund resources to provide funding for capital projects and an annual subsidy to non-major governmental funds, as well fund debt service. Transfers between funds during the fiscal year ended June 30, 2025 were as follows:

None of these transfers were unusual or non-recurring in nature.

General
Advances from Other Funds Fund Total
Port of Richmond 7,502,950 $ 7,502,950 $ Total 7,502,950$ 7,502,950 $ Advances to Other Funds
General Nonmajor Richmond Nonmajor Internal
General General Capital Purpose Governmental Housing Enterprise Service Transfers Out Fund Improvement Fund Funds Funds Authority Funds Funds Total General Fund -$ 15,976,138$ 75,000$ 9,231,686$ 351,926$ 72,037$ 426,019$ 26,132,806$ Nonmajor Governmental Funds 22,124,916 - - 6,167,382 - - - 28,292,298 General Capital Improvement Fund 847,863 - 253,475 - - - - 1,101,338 Nonmajor Enterprise Funds 86,778 - - - - - - 86,778 Internal Service Funds - 4,100,000 40,281 - - - - 4,140,281 Total 23,059,557$ 20,076,138$ 368,756$ 15,399,068$ 351,926$ 72,037$ 426,019$ 59,753,501$ Transfers In
73 945
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. NOTES AND LOANS RECEIVABLE
At June 30, 2025, notes and loans receivable under governmental activities consisted of the following:

Balance at
June 30, 2025
General Fund:

RHA RAD Project Loan 773,529$
Deferred Loans 221,335
Infill Phase II Loan 1,562,804
Nevin Court Homeowner Development Project 556,016
Subtotal - General Fund Loans 3,113,684
Richmond Neighborhood Stabilization Loans 779,013
General Purpose Fund:

Homekey Program 3,828,882
Community Development Block Grant, Home Investment
Partnership Program, EDA, CALHome Loans and City Loans
Deferred Loans 2,792,885
Home Improvement Program Loans 732,135
Rental Rehabilitation Loans 364,046
The Carquinez Project 148,490
Creely Avenue Housing Rehabilitation Loan (Arbors) 2,703,762 Lillie Mae Jones Project Loan 997,291
Greater Richmond Interfaith Program 965,048
CALHome Program 1,897,930
Nevin Plaza 1,750,000
RHA RAD Project Loan 3,876,701
Subtotal - CDBG, HOME, EDA, CALHome Loans, City Loans 16,228,288 Housing Successor Loans:

Rental Rehabilitation Loans 20,000
The Carquinez Project 1,152,510
Creely Avenue Housing Rehabilitation Loan (Arbors) 2,550,245 Lillie Mae Jones Project Loan 1,999,301
Miraflores Loan 3,467,430
MacDonald Place Senior Housing 3,188,532
Greater Richmond Interfaith Program 320,082
Silent Second Mortgage Loans 1,597,280
Deferred Loans 633,126
Chesley Avenue Mutual Housing Development 6,543,744
Easter Hill Project 4,891,967
RHA RAD Project Loan 1,204,417
Subtotal - Housing Successor Loans 27,568,634
American Rescue Plan Act Fund:

Nevin Plaza 1,750,000
Total Notes and Loans Receivable 53,268,501$
74 946
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. NOTES AND LOANS RECEIVABLE, Continued
RHA RAD Project
In December 2014, the General Fund loaned $700,000 to the Richmond Housing Authority Enterprise Fund for predevelopment costs related to the Triangle Court and Friendship Manor Rental Assistance Demonstration (RAD) Projects.

In December 2015, the loan agreement was replaced and the City entered into an amended agreement to loan $5,400,000 to the RHA Housing Corporation for the furt herance of the development of the RAD Projects as discussed in Note 18. Funding for the loan was revised in fiscal year 2018 and is as follows: $700,000 from the City’s General Fund, $3,600,000 from housing-in-lieu funds, and $1,100,000 from the Housing Successor funds. The housing-in-lieu funds and Housing Successor Funds are included in the Community Development and Loan Programs Fund. RHA Housing Corporation assigned the loan agreement and associated obligations to RHA RAD Housing Partners L.P. on December 22, 2015 upon closing of the financing for the rehabilitation of the RAD projects. See Note 18 for addi tional information related to the RAD projects. The loan is secured by a leasehold deed of trust, assign ment of rents and security agreement. The loan bears simple interest of 1% and the loan is repayable from residual receipts, as defined in the loan agreement, starting May 1 of the year after issuance of the Certif icate of Completion, and unpaid principal and accrued interest is due December 1, 2070. As noted above, $700,000 of the General Fund loan was disbursed in December 2014 and the balance at June 30, 2025, including accrued interest, was $773,529. As of June 30, 2025, $5,081,118 of the funds had been drawn down from the Housing Successor Community Development and Loan Programs Fund.

Deferred Loans
Deferred loans are granted to low and moderate income families to assist them in purchasing their homes.

Emergency repair loans not exceeding $10,000 funded by the HOME Investment Partnership Program (HIPP) are provided to low income families in Richmond to assist them in rehabilitating their existing housing units.

These loans are required to be repaid over a period of 15 years to 30 years.

During fiscal year 2019, the City’s General Fund purchased a portion of the deferred loans in the amount of $353,335 and the loans were transferred to the General Fund. As of June 30, 2025, the outstanding loan amount is $221,335. In addition, as of June 30, 2025, $2,792,885 of the funds had been drawn down from the CDBG & Home Program Fund and $633,126 from the Successor Housing Agency Fund.

Scattered Site Infill Housing Development (Infill Phase II) Under a loan agreement dated September 30, 2010, the City loaned Community Housing Development Corporation of North Richmond $1,198,013 to fund cons truction of 36 townhomes to be made available for very-low and low income households. Funding for the loan was as follows: $602,556 in HOME funds, $266,000 in CDBG funds and $329,457 in CDBG-R. Although the developer has not drawn down all of the proceeds from the HOME funds portion of the loan, the Department of Housing and Urban Development (HUD) has indicated that future drawdowns will not be reimbursed by the grantor. Related to the grant disallowed costs discussed in Note 17, during fiscal year 2018 the City purchased $1,331,709 of the loan balance that had previously been funded with Community Development Block Grant and HOME funds. 75 947
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. NOTES AND LOANS RECEIVABLE, Continued
Scattered Site Infill Housing Development (Infill Phase II), Continued During fiscal year 2019, the City’s General Fund purchased the loan balance in the amount of $1,099,594 and the loan and accrued interest of $265,104 were transferred to the General Fund.

The current funding was for predevelopment activities in conjunction with the construction and development of the townhomes. The loan is secured by a deed of trust on the property. The outstanding balance of the loan bears simple interest at the rate of 3% per year. The payment of principal and interest is deferred and due at the end of the term due September 30, 2065. As of June 30, 2025, $1,562,804, which includes accrued interest of $463,211 had been drawn down on the loan.

Nevin Court Homeowner Development Project
In May 2005, the City entered into an agreement with Community Housing and Development Corporation of North Richmond (Development), in the original amount of $227,000 to construct and develop 10 single family homes for low and moderate income households. The agreement was amended in November 2008, to increase the loan to $377,000. In fiscal year 2010, th e Development drew down $343,839, in fiscal year 2016 an additional $21,453 was drawn, and the outstanding balance of the loan is $490,203, which includes accrued interest of $124,911. The loan bears interest of 3% per year and the unpaid balance is due in November 2063.

During fiscal year 2019, the City’s General Fund pu rchased the loan balance in the amount of $365,292 and the loan and accrued interest of $124,911 were transferred to the General Fund. As of June 30, 2025, $556,016, which includes accrued interest of $190,724, had been drawn down on the loan.

Richmond Neighborhood Stabilization Loans
The Richmond Neighborhood Stabilization Corporatio n (RNSC) operates a residential rehabilitation loan program financed by Department of Housing and Ur ban Development grants that have passed through the City under its Neighborhood Stabilization Program (NSP1) and additional allocati on under the third round of funding referred to as (NSP3). The program prov ides affordable home ownership opportunities for households of low and moderate income by facilitating the development fina ncing necessary for the purchase, rehabilitation, and resale of deed-restricted affordable ownership units. During fiscal year 2014, the City foreclosed on seven of the loans with a carryin g value of $780,153 and reacqu ired the properties which have been recorded as property held for resale as discu ssed in Note 2. As of June 30, 2025, the total balance of outstanding loans for NSP1 was $779,013 and no NSP3 loans had been issued. Loans are payable upon the resale of improved properties.

Home Improvement Program Loans
“Silent second” mortgage loans are provided to low and moderate income first time homebuyers as gap financing to provide the minimum amount needed to close the gap between the primary lender’s requirements and the borrower’s ability to pay down payments or closing costs.

Home improvement program loans include amortized loans to assist low income families in Richmond in the improvement of their homes. The interest rates for thes e loans range from 0% to 3% and are payable over a period of 15 to 30 years.
76 948
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. NOTES AND LOANS RECEIVABLE, Continued
Rental Rehabilitation Loans
Rental Rehabilitation Loans help make rental units affordable to low and very low income housing families.

Loans assist private and non-profit owners in purchasing and rehabilitat ing existing multifamily housing units.

The Carquinez Project
Under a loan agreement dated November 14, 2008, the former Redevelopment Agency loaned Carquinez Associates, L.P. $1,000,000 to fund rehabilitation of a five-story bu ilding, with 36 apartments housing low- income seniors. On August 23, 2010 the agreement was amended to provide the Developer with a total amount of $1,301,000. Funding for the loan is as follows: $1,152,510 funded by Series 2007 Bonds and $148,900 funded by CDBG. Repayments on the loan are to be made from residual receipts as defined in the agreement.

The loan does not bear interest, and the unpaid pr incipal balance is due in November 2043. With the dissolution of the Redevelopment Agency as discussed in Note 19, the City agreed to become the successor to the Redevelopment Agency’s housing activities and as a result City, as Housing Successor, assumed the loans receivable of the Redevelopment Agency’s Lo w and Moderate Income Housing Fund, including the balance of the Carquinez loan as of February 1, 2012.

Creely Avenue Housing Rehabilitation (Arbors)
On September 15, 2006, the former Redevelopment Agency and the City loaned Arbors Preservation Limited Partnership the amount of $2,558,557, to construct extr emely low, very low and low income rental housing units and a new community room on Creely Avenue. On October 31, 2008, the loan was amended to provide the developer a total loan amount of $3,208,113. Funding for the loan is as follows: $2,160,282 in HOME funds, $103,377 in CDBG funds and $1,594,057 in 2007 Series B bond funds. Although the developer has not drawn down all of the proceeds from the HOME funds portio n of the loan, the Departme nt of Housing and Urban Development (HUD) has indicated that future drawdown s will not be reimbursed by the grantor. The loan bears simple interest at the rate of 3% per year. All unpaid principal and interest on the loan is due on April 29, 2063. With the dissolution of the Redevelopment Agency as discussed in Note 19, the City agreed to become the successor to the Redevelopment Agency’s housing activities and as a result the City, as Housing Successor, assumed the loans receivable of the Redevelopment Agency’s Low and Moderate Income Housing Fund, including the balance of the Arbors loan as of February 1, 2012. 77 949
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. NOTES AND LOANS RECEIVABLE, Continued
Lillie Mae Jones Project
On January 19, 2010, the former Redevelopment Agency and the City entered into an agreement with Lillie Mae Jones Plaza, L.P. and the Community Housing Development Corporation of North Richmond to loan $3,119,000 to construct and provide 26 housing units to very low and low income households. Funding for the loan is as follows: $1,081,291 in HOME funds, $84,000 in Section 108 funds and $1,953,709 in 2007 Series B bonds. Although the developer has not drawn down all of the proceeds of the HOME funds portion of the loan, HUD has indicated that future drawdowns will no t be reimbursed by the grantor. The loan bears an interest rate of 3% per year and repayments on the loan are to be made from residual receipts as defined in the agreement. All unpaid principal and accrued interest is due in January 2065. The agreement was amended in November 2011, due to securing a $293,884 loan from County of Contra Costa with Mental Health Services Act, which specifies that two units are required to be available to and occupied by Mental Health Services Act Eligible Tenants pursuant to the County Regulatory Agreement with Lillie Mae Jones Plaza, L.P. With the dissolution of the Redevelopment Agency as discussed in Note 19, the City agreed to become the successor to the Redevelopment Agency’s housing activities and as a result the City, as Housing Successor, assumed the loans receivable of the Redevelopment Agency’s Low and Moderate Income Housing Fund, including the balance of the Lillie Mae Jones loan as of February 1, 2012. As of June 30, 2025, Lillie Mae Jones has drawn down $2,996,592.

Greater Richmond Interfaith Program
The loan agreement date was on June 20, 2005. The borrower shall use the Loan funds for development and related soft costs that are eligible under the applicable CDBG and HOME regulations, and consistent with the approved development budget. In addition, the borrower shall submit to the City’s Community and Economic Development Department a copy of the Construction Plans for the Development. As of June 30, 2025, Greater Richmond Interfaith Program has drawn down $1,285,130.

CALHome Program
The CALHome loan program provides ho using assistance to Richmond reside nts to assist with first-time homeowner down payments or rehabilitation projects fo r owner-occupied homes. The loans are secured by deeds of trust on the properties. Principal and interest on the loans are deferred for 30 years, unless otherwise specified in the promissory note. With the dissolution of the Redevelopment Agency as discussed in Note 19, the CALHome loan program that was funded with gran t funds is now administered by the City effective February 1, 2012.

Housing Successor Loans
With the dissolution of the Redevelopment Agency as di scussed in Note 19, the City agreed to become the successor to the Redevelopment Agency’s housing activities and as a re sult City, as Housing Successor, assumed the loans receivable of the Redevelopment Agency’s Low and Moderate Income Housing Fund, including the balance of certain loans discussed above and all of the loans below as of February 1, 2012. 78 950
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. NOTES AND LOANS RECEIVABLE, Continued
Miraflores Loan
Under an amended loan agreement dated June 21, 2 011, the City agreed to loan Community Housing Development Corporation of North Richmond and Eden Housing, Inc., $1,465,000 to fund the construction of 110 senior housing units for low and moderate income residents. Funding for the loan is as follows:
$449,000 in CDBG funds, $925,000 in HOME funds, and $91,000 Redevelopment Agency Low and Moderate Income Housing Fund funds. Although the developer has not drawn down all of the proceeds of the HOME funds portion of the loan, HUD has indicated that future drawdowns will not be reimbursed by the grantor.

Related to the grant disallowed costs by HUD in previo us years, the City purchased $1,208,258 of the loan balance that had previously been funded by CDBG and HOME funds and the loans were transferred to the Housing Successor. With the dissolution of the Redevelo pment Agency as discussed in Note 19, the portion of the Miraflores loan that was funded by the Redevelopment Agency’s Low and Moderate Income Housing Fund was assumed by the City as Housing Successor.

The loan does not bear interest and the unpaid princi pal balance was due September 22, 2015, unless it was converted to a permanent loan. The loan was converted in to a permanent loan on June 25, 2015. In addition to the converted permanent loan, the Housing Successor approved an additional predevelopment loan in the amount of $1,500,000. As of June 30, 2025, $3,467,430 of the loan had been drawn down.

MacDonald Place Senior Housing
On June 26, 2007, the former Redevelopment Agency agreed to loan MacDonald Housing Partners, L.P., and Richmond Labor and Love Community Development Co rporation the amount of $4,720,000, to construct senior housing units, a management office, small meeting rooms and ancillary retail use, and a separate space for community services. The loan’s principal is due 57 years from the date of disbursement. The loan bears simple of interest of 2% per year payable from any re sidual receipts available from the prior calendar year with an additional 1% per year, but only to the extent that funds are available to pay such contingent interest from the Agency’s share of residual receipts, as defined in the agreement.

Silent Second Mortgage Loans
Loans were provided to qualifying individuals for the difference between the amount received by the individuals who qualified for low and moderate income housing loans and the amount needed to purchase the homes. The loans are to be forgiven in the future if the property owners do not sell or refinance the property.

Chesley Avenue Mutual Housing Development
On December 1, 2003, the former Redevelopment Agency loaned Chesley Avenue Limited Partnership the amount of $4,741,492, which includes accrued interest of $1,272,798 to construct very low and low income housing units. The loan’s principal is due in 2058; interest is payable starting May 1, 2006, at the rate of 2% per annum or in the amount of 95% of any residual receipts remaining from the prior year, whichever is less.

As of June 30, 2025, $6,543,744, which includes accrued interest of $1,802,252, had been drawn down on the loan.
79 951
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. NOTES AND LOANS RECEIVABLE, Continued
Easter Hill Project
The loan from the former Redevelopment Agency to Ea ster Hill Development, L.P. is providing financial assistance in the development of the Easter Hill Projec t. The Easter Hill Project consists of single and multifamily home components. Easter Hill Development, L.P. shall use the loan to pay for predevelopment, acquisition and construction costs. The outstanding balance of the loan bears simple interest at the rate of 2% per year. Repayments on the loan are to be made from residual receipts as defined in the agreement. All unpaid principal and accrued interest on the loan is due February 1, 2069.

Nevin Plaza I, L.P.

On March 1, 2023, the City entered into an agreement with Navin Plaza I, L.P., in the amount of $3,500,000, which includes $1,750,000 to evidence developer’s obligation to repay the portion of the loan funded with Coronavirus State and Local Fiscal Recovery Funds provided to the City through the American Rescue Plan Act of 2021 and $1,750,000 with City Affordable Housing Impact Fee Funds. The loan bears interest of 3% per year, the entire outstanding principal balance of the lo an together with accrued interest. The maturity date, which is the earlier of the 55
th anniversary of the date upon which the city building department issue its sign off on its final inspection following completion of rehabilitation of the project and the 57th anniversary of the date of the notes.

Homekey Program
The secured promissory note (Homekey Funds) was ex ecuted and delivered pursuant to an in accordance with an Affordable Housing Loan Agreement dated as of April 1, 2025. As of June 30, 2025, Homekey Program has drawn down $3,828,882.

5. LEASES RECEIVABLE
At June 30, 2025, leases receivable consisted of the following:

Balance at
June 30, 2025
Lease Receivable
Alcatraz Cruises 1,988,522$
California Oils 532,080
Foss Maritime 758,377
MSRC 7,344,223
Nematode 411,844
NRC 162,398
Point San Pablo 44,865
Richmond Art Center 769,391
Richmond Bay Marina 5,072,773
Terminal Three Partners 39,228,789
Dutra - Basin 2 & 3 1,588,335
Garamendi 20,100
Watershed Nursery 41,903
The Dutra Group - Basin 1 1,714,973
Total Lease Receivable 59,678,572$
80 952
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

5. LEASES RECEIVABLE, Continued
Alcatraz Cruises
On October 15, 2021, the City entered into a lease as Lessor for the use of Basin 4 and half of Basin 3 at Point Potrero Marine Terminal and the lease end date was on October 14, 2036. An initial lease receivable was recorded in the amount of $2,559,422 on July 1, 2021. As of June 30, 2025, the value of the lease receivable is $1,988,522. The lessee is required to make monthly fixed payments of $15,000.00, with step payment increase to $15,600 from October 15, 2026 to October 14, 2031 and 4% annual increase from October 15, 2031 to October 14, 2036. The lease has an interest rate of 1.2480%. The value of the deferred inflow of resources as of June 30, 2025 was $1,926,202, and the City recognized lease revenue of $170,628 during the fiscal year. The lessee has 2 extension option(s), each for 60 months.

California Oils
On July 1, 2016, the City entered into a lease as Lesso r for the use of Terminal 2 at 1145 Harbour Way South and the lease end date was on June 30, 2026. An init ial lease receivable was recorded in the amount of $2,449,191 on July 1, 2021. As of June 30, 2025, the value of the lease receivable is $532,080. The lessee is required to make monthly fixed payments of $38,868, with step payment increase to $40,810.54 from July 1, 2022 to June 30, 2023 and 3% monthly increase from July 1, 2023 to June 30, 2026. The lease has an interest rate of 1.0590%. The value of the deferred inflow of resources as of June 30, 2025 was $489,838 and the City recognized lease revenue of $489,838 during the fiscal year.

Foss Maritime
On October 1, 2012, the City entered into a lease as Lessor for the use of Basin 1 and Finger Pier 2 at Point Potrero Marine Terminal and the lease end date was on February 29, 2028. An initial lease receivable was recorded in the amount of $2,806,842 on July 1, 2021. As of June 30, 2025, the value of the lease receivable is $758,377. The lessee is required to make monthly fixed payments of $21,430 from March 1, 2023 to April 30, 2023, $22,501 from May 1, 2023 to April 30, 2024, and 3% annual increase from May 1, 2024 to February 29, 2028. The lease has an interest rate of 2.6820%. The value of the deferred inflow of resources as of June 30, 2025 was $711,276, and the City recognized lease revenue of $266,729 during the fiscal year. The lessee has 1 extension option(s), each for 60 months.

MSRC
On July 1, 2023, Richmond, CA entered into a lease as lessor for the use of Finger Pier 1 at 1314 Canal Boulevard and the lease end date was on June 30, 2043. An initial lease receivable was recorded in the amount of $7,623,365 on July 1, 2023. As of June 30, 2025, the value of the lease receivable is $7,344,223. The lessee is required to made monthly fixed payments of $33,022.23 , with step payment increase to $34,178.01 from July 1, 2024 to June 30, 2025. The lease has an interest rate of 3.6790%. The value of the deferred inflow of resources as of June 30, 2025 was $6,861,028, and Richmond, CA recognized lease revenue of $381,168 during the fiscal year.
81 953
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

5. LEASES RECEIVABLE, Continued
Nematode
On July 1, 2020, the City entered into a lease as Lesso r for the use of Terminal 4 at 1950 Stenmark Drive and the lease end date was on June 30, 2025. An initial leas e receivable was recorded in the amount of $719,233.

As of June 30, 2025, the value of the lease receivable is $411,844. The lessee is required to make monthly fixed payments of $6,816.50. The lease has an interest rate of 0.8930%. The value of the deferred inflow of resources as of June 30, 2025 was $399,574, and the City recognized lease revenue of $79,915 during the fiscal year. The lessee has 1 extension option(s), each for 60 months.

NRC
On October 1, 2017, the City entered into a lease as Lessor for the use of Basin 3 at 1337 Canal Boulevard and the lease end date was on September 30, 2027. An init ial lease receivable was recorded in the amount of $414,304 on July 1, 2021. As of June 30, 2025, the value of the lease receivable is $162,398. The lessee is required to make monthly fixed payments of $5,000, with step payment increase to $5,300 from October 1, 2022 to September 30, 2023 and 4% annual increase from October 1, 2023 to September 30, 2027. The lease has an interest rate of 0.3870%. The value of the deferred inflow of resources as of June 30, 2025 was $149,149, and the City recognized lease revenue of $66,289 during the fiscal year. The lessee has 1 extension option(s), each for 60 months.

Point San Pablo
On June 1, 2023, the City entered into a lease as Lesso r for the use of Terminal 4 at 1950 Stenmark Drive and the lease end date was on May 31, 2029. An initial lease receivable was recorded in the amount of $62,787 on June 1, 2023. As of June 30, 2025, the value of the le ase receivable is $44,865. The lessee is required to make monthly fixed payments of $786, with step payment incr ease to $842 from June 1, 2024 to May 31, 2025 and 7% annual increase from June 1, 2025 to May 31, 2029. The lease has an interest rate of 2.3260%. The value of the deferred inflow of resources as of June 30, 2025 was $40,986, and the City recognized lease revenue of $10,464 during the fiscal year. The lessee has 5 extension option(s), each for 12 months.

PRAM
On September 1, 2019, the City entered into a lease as Lessor for the use of The Washington Field House at 110 East Richmond Avenue and the lease end date was on August 31, 2024. An initial lease receivable was recorded in the amount of $10,333.79 on July 1, 2021. As of June 30, 2025, the value of the lease receivable is $0. The lessee is required to make monthly fixed payments of $275.00. The lease has an interest rate of 0.7270%.

The value of the deferred inflow of resources as of June 30, 2025 was $0, and the City recognized lease revenue of $544 during the fiscal year.

82 954
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

5. LEASES RECEIVABLE, Continued
Richmond Art Center
On July 1, 2017, the City entered into a lease as Lessor for the use of The Art Center buildings at 2540 and 2544 Barrett Avenue and the lease end date was on June 30, 2067. An initial lease receivable was recorded in the amount of $807,820.53 on July 1, 2021. As of June 30, 2025, the value of the lease receivable is $769,391.

The lessee is required to make monthly fixed payments of $2,344, with step payment increase to $2,503 from July 1, 2022 to June 30, 2067. The lease has an interest rate of 2.5830%. The value of the deferred inflow of resources as of June 30, 2025 was $737,575, and the City recognized lease revenue of $17,561 during the fiscal year.

Richmond Bay Marina – Re – assigned to SHM MBYH LLC
On July 1, 2000, the City entered into a lease as Lessor for the use of the land at 1340 Marina Way South and the lease end date was on June 30, 2055. An initial lease receivable was recorded in the amount of $5,534,412.78 on July 1, 2021. As of June 30, 2025, the va lue of the lease receivable is $5,072,773. The lessee is required to make quarterly fixed payments of $60,876. The lease has an interest rate of 2.5830%. The value of the deferred inflow of resources as of June 30, 2025 was $4,883,305, and the City recognized lease revenue of $162,777 during the fiscal year.

Terminal Three Partners – Re-assigned to IV1 1411 Harbor Way S. Owners LLC On December 15, 2020, the City entered into a lease as Lessor for the use of Terminal 3 at 1411 Harbour Way South and the lease end date was on December 14, 2086. An initial lease receiv able was recorded in the amount of $39,376,061.50 on July 1, 2021. As of June 30, 2025, the value of the lease receivable is $39,228,789.

The lessee is required to make monthly fixed payments of $36,667, with step payment increase to $38,133 from July 1, 2022 to June 30, 2023 and 2% annual increa se from July 1, 2023 to December 14, 2086. The lease has an interest rate of 1.1000%. The value of the deferred inflow of resources as of June 30, 2025 was $36,969,784, and the City recognized lease revenue of $601,569 during the fiscal year. The lessee has 4 extension option(s), each for 120 months.

Dutra – Basin 2 & 3
On June 1, 2017, the City entered into a lease as Lessor for the use of Basin 2, Basin 3 and the structure at 1319 Canal Boulevard and the lease end date was on May 31, 2032. An initial lease receivable was recorded in the amount of $2,393,510.09 on July 1, 2021. As of June 30, 2025, the value of the lease receivable is $1,588,335. The lessee is required to make monthly fixed payments of $16,500.00, with step payment increase to $17,160 from June 1, 2022 to May 31, 2023 and 2% annual increase from June 1, 2023 to May 31, 2032. The lease has an interest rate of 0.3160%. The value of the deferred inflow of resources as of June 30, 2025 was $1,516,499 and the City recognized lease revenue of $219,253 during the fiscal year. The lessee has 2 extension option(s), each for 60 months.

83 955
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

5. LEASES RECEIVABLE, Continued
YWCA
On July 1, 2015, the City entered into a lease as Lessor for the use of the building at 3230 MacDonald Avenue and the lease end date was on June 30, 2025. An initial lease receivable was re corded in the amount of $127,360.86 on July 1, 2021. As of June 30, 2025, the value of the lease receivable is $0 The lessee is required to make monthly fixed payments of $2,700.00. The lease has an interest rate of 0.8930%. The value of the deferred inflow of resources as of June 30, 2025 was $0, and th e City recognized lease revenue of $31,840 during the fiscal year.

AWC
On May 1, 2009, the City entered into a lease as Lesso r for the use of the land at 1311 Canal Boulevard and the lease end date was on December 31, 2024. An init ial lease receivable was re corded in the amount of $20,135,248.98 on July 1, 2021. As of June 30, 2025, the value of the lease receivable is $0. The lessee is required to make annual fixed payments of $5,718,800.00, with a fixed increase to $5,833,350 from July 1, 2022 to June 30, 2023 and $5,950,800 from July 1, 2023 to June 30, 2024. The lease has an interest rate of 0.8930%. The value of the deferred inflow of resources as of June 30, 2025 was $0, and the City recognized lease revenue of $2,876,464 during the fiscal year.

Garamendi
On January 3, 2023, the City entered into a lease as Le ssor for the use of the office space located at 440 Civic Plaza and the lease end date was on January 2, 2027. An initial lease receivable was recorded in the amount of $26,677 on January 3, 2023. As of June 30, 2025, the value of the lease receivable is $20,100. The lessee is required to make monthly fixed payments of $1,141. Th e lease has an interest rate of 2.7070%. The value of the deferred inflow of resources as of June 30, 2025 was $20,026, and the City recognized lease revenue of $13,375 during the fiscal year.

Watershed Nursery
On December 17, 2019, the City entered into a lease as Lessor for the use of 601 Canal Blvd Suite A and the lease end date was on December 18, 2031. An initial lease receivable was recorded in the amount of $55,493 on July 1, 2022. As of June 30, 2025, the value of the lease receivable is $41,903. The lessee is required to make monthly fixed payments of $480. The lease has an interest rate of 2.8420%. The value of the deferred inflow of resources as of June 30, 2025 was $37,897, and the City recognized lease revenue of $5,865 during the fiscal year.

The Dutra Group – Basin 1
On October 21, 2024, Richmond, CA entered into a lease as Lessor for the use of Basin 1 and the lease end date was on May 31, 2037. An initial lease receivable was recorded in the amount of $1,789,997 on October 21, 2024. As of June 30, 2025, the value of the lease receivable is $1,714,973. The lessee is required to make monthly fixed payments of $12,500, with step payment increase to $12,750 from October 1, 2025 to September 30, 2026 and 2% annual increase from October 1, 2026 to May 31, 2037. The lease has an interest rate of

2.7490%. The value of the deferred inflow of resources as of June 30, 2025 was $1,691,429 and Richmond, CA recognized lease revenue of $98,568 during the fiscal ye ar. The lessee has 2 extension option(s), each for 60 months.

84 956
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

5. LEASES RECEIVABLE, Continued
The future revenue payments as of June 30, 2025, are as follows:

Year Ending
June 30, Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2026 156,074$ 23,926 $ 532,080 $ 3,057 $ 270,849 $ 17,042 $ 156,925 $ 267,565 $ 80,905 $ 3,347 $ 70,349 $ 505 $ 2027 163,455 21,945 - - 286,947 9,582 177,907 261,441 81,630 2,622 73,461 227 2028 167,326 19,874 - - 200,581 2,023 200,203 254,522 82,362 1,890 18,589 12 2029 169,426 17,774 - - - - 223,881 246,760 83,101 1,151 - - 2030 171,553 15,647 - - - - 249,011 238,102 83,846 406 - - 2031-2035 919,340 44,740 - - - - 1,678,229 1,025,323 - - - - 2036-2040 241,347 2,013 - - - - 2,571,341 639,631 - - - - 2041-2045 - - - - - - 2,086,727 122,328 - - - - 2046-2050 - - - - - - - - - - - - 2051-2055 - - - - - - - - - - - - 2056-2060 - - - - - - - - - - - - 2061-2065 - - - - - - - - - - - - 2066-2070 - - - - - - - - - - - - 2071-2075 - - - - - - - - - - - - 2076-2080 - - - - - - - - - - - - 2081-2085 - - - - - - - - - - - - 2086-2089 - - - - - - - - - - - - Total 1,988,522$ 145,918$ 532,080$ 3,057$ 758,377$ 28,647$ 7,344,223$ 3,055,672$ 411,844$ 9,416$ 162,398$ 744$ NRCMSRC NematodeAlcatraz Cruises California Oils Foss Maritime Year Ending
June 30, Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2026 9,929 $ 939$ 10,284$ 19,752$ 113,568$ 129,936$ 54,366$ 431,243$ 214,179$ 4,710$ 2027 10,931 697 10,552 19,483 116,530 126,974 64,728 430,593 219,240 4,026 2028 12,011 432 10,828 19,208 119,570 123,934 75,400 429,827 224,406 3,325 2029 11,993 140 11,111 18,925 122,688 120,816 86,389 428,943 229,677 2,609 2030 - - 11,402 18,634 125,888 117,616 97,703 427,935 235,057 1,875 2031-2035 - - 61,637 88,542 680,437 537,083 670,130 2,120,023 465,776 1,480 2036-2040 - - 70,125 80,054 773,921 443,599 1,006,267 2,074,287 - - 2041-2045 - - 79,781 70,397 880,249 337,271 1,392,444 2,008,737 - - 2046-2050 - - 90,767 59,411 1,001,185 216,335 1,834,720 1,920,458 - - 2051-2055 - - 103,266 46,912 1,138,736 78,784 2,339,834 1,806,187 - - 2056-2060 - - 117,486 32,692 - - 2,915,274 1,662,268 - - 2061-2065 - - 133,665 18,101 - - 3,569,364 1,484,612 - - 2066-2070 - - 58,485 - - - 4,311,349 1,268,648 - - 2071-2075 - - - - - - 5,151,498 1,009,270 - - 2076-2080 - - - - - - 6,101,212 700,774 - - 2081-2085 - - - - - - 7,173,143 336,798 - - 2086-2089 - - - - - - 2,384,968 20,911 - - Total 44,865$ 2,208$ 769,391$ 492,111$ 5,072,773$ 2,232,347$ 39,228,789$ 18,561,514$ 1,588,335$ 18,024$ Richmond Art Center Richmond Bay Marina Terminal Three Partners Dutra - Basin 2 & 3Point San Pablo Year Ending
June 30, Principal Interest Principal Interest Principal Interest Principal Interest 2026 13,309 $ 380 $ 5,235 $ 1,124 $ 106,432 $ 45,818 $ 1,794,484 $ 949,344 $ 2027 6,791 54 5,643 970 112,478 42,817 1,330,295 921,429 2028 - - 6,074 804 118,755 39,646 1,236,104 895,496 2029 - - 6,527 626 125,269 36,300 1,070,063 874,042 2030 - - 7,005 434 132,029 32,772 1,113,492 853,422 2031-2035 - - 11,419 261 770,712 104,066 5,257,680 3,921,517 2036-2040 - - - - 349,298 9,746 5,012,298 3,249,330 2041-2045 - - - - - - 4,439,201 2,538,733 2046-2050 - - - - - - 2,926,673 2,196,204 2051-2055 - - - - - - 3,581,836 1,931,883 2056-2060 - - - - - - 3,032,760 1,694,960 2061-2065 - - - - - - 3,703,028 1,502,713 2066-2070 - - - - - - 4,369,834 1,268,648 2071-2075 - - - - - - 5,151,498 1,009,270 2076-2080 - - - - - - 6,101,212 700,774 2081-2085 - - - - - - 7,173,143 336,798 2086-2089 - - - - - - 2,384,968 20,911 Total 20,100$ 434$ 41,903$ 4,218$ 1,714,973$ 311,165$ 59,678,572$ 24,865,475$ TotalGaramendi Watershed Nursery The Dutra Group - Basin 1 85 957
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. CAPITAL ASSETS
The following is a summary of capital assets for governmental activities:

Balance at Balance at
July 1, 2024, as restated Additions Retirements Transfers June 30, 2025 Governmental Activities
Capital assets not being depreciated:

Land 24,634,683$ 3,115,939$ -$ -$ 27,750,622$ Construction in progress 61,354,913 24,454,264 - (2,177,728) 83,631,449 Total capital assets not being depreciated 85,989,596 27,570,203 - (2,177,728) 111,382,071 Capital assets being depreciated:

Buildings and improvements 157,794,660 3,136,561 (3,136,561) - 157,794,660 Machinery and equipment 62,989,702 1,361,262 (1,167,255) 2,177,728 65,361,437 Land improvements and infrastructure 547,774,577 - - - 547,774,577 Total capital assets being depreciated 768,558,939 4,497,823 (4,303,816) 2,177,728 770,930,674 Less accumulated depreciation for:

Buildings and improvements (62,324,858) (3,618,978) - - (65,943,836) Machinery and equipment (46,660,863) (3,316,108) 1,137,253 - (48,839,718) Land improvements and infrastructure (443,957,821) (6,373,989) - - (450,331,810) Total accumulated depreciation (552,943,542) (13,309,075) 1,137,253 - (565,115,364) Capital asset being depreciated, net 215,615,397 (8,811,252) (3,166,563) 2,177,728 205,815,310 Capital assets being amortized:

Leased buildings and improvements 6,690,416 21,315,218 - - 28,005,634 Subscription based I.T. agreeemnts 4,585,273 - (149,276) - 4,435,997 Total capital assets being amortized 11,275,689 21,315,218 (149,276) - 32,441,631 Less accumulated amortization for:

Leased buildings and improvements (5,734,641) (2,044,499) - - (7,779,140) Subscription based I.T. agreeemnts (2,206,050) (1,010,554) 110,754 - (3,105,850) Total accumulated amortization (7,940,691) (3,055,053) 110,754 - (10,884,990) Capital assets being amortized, net 3,334,998 18,260,165 (38,522) - 21,556,641 Governmental activity capital assets, net 304,939,991$ 37,019,116$ (3,205,085)$ -$ 338,754,022$ 86 958
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. CAPITAL ASSETS, Continued
Governmental activities depreciation expenses for ca pital assets and amortization expense for lease assets charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program for the year ended June 30, 2025 were as follows:

Lease Asset
DiCon Fiberoptics
On January 1, 2020, the City entered into a lease as Lessee for the use of DiCon Fiberoptics’ Building and the lease end date was on December 31, 2024. The lease was amended to extend the lease term for 5 years to December 31, 2029. The City is required to make mo nthly fixed payments of $152,298, with step payment increase to $156,735 from January 1, 2022 to December 31, 2022, 3% annual increase from January 1, 2023 to December 31, 2024, and monthly fixed payments of $140, 870 with 3% annual increa se from January 1, 2025 to December 31, 2029. The lease has an interest rate of 1.1810%. The value of the right to use asset as of June 30, 2025 of $28,005,634 with accumulated amortization of $7,779,141.

Subscription Based Information Technology Arrangements
Cobalt
On May 1, 2017, the City entered into a subscription for the use of Cobalt RMS Software and the lease end date is on June 30, 2027. The City is required to make annual fixed payments of $360,000 until June 30, 2023, and $200,000 from July 1, 2023 to June 30, 2027. The subscription has an interest rate of 2.5360%. The value of the right to use asset as of June 30, 2025 of $1,111,74 3 with accumulated amortization of $667,046. There are no options to extend the arrangement or purchase the software. eScribe
On April 27, 2021, the City entered into a subscription for the use of eScribe and the lease end date is on April 26, 2026. The City is required to make annual fixed payments of $47,242 with 5% annual increase. The subscription has an interest rate of 2.4450%. The value of the right to use asset as of June 30, 2025 of $158,237 with accumulated amortization of $124,198. The City has option to extend for 60 months.

Governmental Activities
Depreciation expense
General Government 3,896,493$
Public Safety 638,088
Public Services 6,104,608
Cultural and Recreational 167,721
Housing and Redevelopment 27,990
Community Development 41,925
Internal Service Funds 2,432,250
Total depreciation expense 13,309,075
Amortization expense
General Government 354,185
Public Safety 2,700,868
Total amortization expense 3,055,053
Total Governmental Activities 16,364,128$
87 959
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. CAPITAL ASSETS, Continued
GovInvest
On March 6, 2023, the City entered into a subscription for the use of GovInvest, Inc and the lease end date is on June 30, 2026. The City is required to make annual fixed payments of $26,400 until June 30, 2023 and $80,000 from July 1, 2023 to June 30, 2026. The subscrip tion has an interest rate of 2.7960%. The value of the right to use asset as of June 30, 2025 of $267,729 with accumulated amortization of $187,074. The City has option to extend for 12 months.

Public Safety Systems Data
On November 1, 2021, the City entered into a subscription for the use of Public Safety Systems Data and the lease end date is on October 31, 2026. The City is required to make annual fixed payments of $219,500. The subscription has an interest rate of 2.4450%. The value of the right to use asset as of June 30, 2025 of $840,217 with accumulated amortization of $581,689. There are no options to extend the arrangement or purchase the software.

RippleWorx
On January 1, 2023, the City entered into a 36-month subscription for the use of RippleWorx. The City is required to make annual fixed payments of $50,000.00. The subscription has an interest rate of 2.7960%. The value of the right to use asset as of June 30, 2025 of $149,276 with accumulated amortization of $124,397. There are no options to extend the arrangement or purchase the software.

ShotSpotter
On July 1, 2021, the City entered into a subscription for the use of ShotSpotter Subscription and the lease end date is on June 30, 2026. The City is required to make annual fixed payments of $203,907 until June 30, 2023 and $214,101 from July 1, 2023 to June 30, 2026. The subscription has an interest rate of 2.4450%. The value of the right to use asset as of June 30, 2025 of $816,036 with accumulated amortization of $612,027. There are no options to extend the arrangement or purchase the software.

Microsoft
On September 29, 2020, the City entered into a subscription for the use of Microsoft and the lease end date is on October 28, 2026. the City is required to make annual fixed payments of $140,021 until September 28, 2023 and $227,425 from September 29, 2023 to October 28, 2026. The subscription has an interest rate of 1.8500%.

The value of the right to use asset as of June 30, 2025 of $1,004,611 with accumulated amortization of $696,393.

The City has option to extend for 36 months.

88 960
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. CAPITAL ASSETS, Continued
The following is a summary of capital assets for business-type activities:

Balance at Balance at
July 1, 2024, as restated Additions June 30, 2025
Business-type Activities
Capital assets not being depreciated:

Land 7,195,986$ -$ 7,195,986$ Construction in progress 122,896,840 7,674,545 130,571,385 Total capital assets not being depreciated 130,092,826 7,674,545 137,767,371 Capital assets being depreciated:

Buildings and improvements 79,908,481 - 79,908,481 Machinery and equipment 18,931,015 - 18,931,015 Infrastructure 259,038,020 - 259,038,020 Total capital assets being depreciated 357,877,516 - 357,877,516 Less accumulated depreciation for:

Buildings and improvements (59,259,440) (734,507) (59,993,947) Machinery and equipment (16,771,199) (288,810) (17,060,009) Infrastructure (140,975,053) (5,866,621) (146,841,674) Total accumulated depreciation (217,005,692) (6,889,938) (223,895,630) Capital asset being depreciated, net 140,871,824 (6,889,938) 133,981,886 Capital assets being amortized:

Leased land and improvements 1,172,173 - 1,172,173 Total Capital assets being amortized 1,172,173 - 1,172,173 Less accumulated amortization for:

Leased land and improvements (781,449) (260,482) (1,041,931) Total accumulated amortization (781,449) (260,482) (1,041,931) Capital assets being amortized, net 390,724 (260,482) 130,242 Business-type activity capital assets, net 271,355,374$ 524,125$ 271,879,499$ 89 961
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. CAPITAL ASSETS, Continued
Business-type activities depreciation expenses for capital assets allocated to each program for the year ended June 30, 2025 were as follows:

Lease Asset
West County Wastewater District
On January 1, 2010, the City entered into a lease as Lessee for the use of West County Wastewater District’s land and the lease end date was on December 31, 2025. The City is required to make annually fixed payments of $153,000, with 3% annual increase from January 1, 2013 to December 31, 2017 and 6% annual increase from January 1, 2018 to December 31, 2025. The lease has an interest rate of 1.0590%. The value of the right to use asset as of June 30, 2025 of $1,172,173 with accumulated amortization of $1,041,931.

Business-Type Activities
Depreciation expense
Port of Richmond 3,053,479 $
Municipal Sewer 3,705,715
Richmond Marina 84,278
Storm Sewer 44,475
Cable TV 1,990
Total depreciation expense 6,889,937
Amortization expense
Municipal Sewer 260,483
Total amortization expense 260,483
Total Business-Type Activities 7,150,420$
90 962
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

7. COMPENSATED ABSENCES PAYABLE
Changes in compensated absence liabilities for the year ended June 30, 2025 were as follows:

The long-term portion of governmental activities compensated absences is liquidated primarily by the General Fund. Compensated absences for business-type activities are liquidated by the fund that has recorded the liability.

8. LONG-TERM DEBT
A. Governmental Activities
Following is a summary of governmental activities lo ng-term debt transactions during the fiscal year ended June 30, 2025:

Bonds Payable
Bonds payable at June 30, 2025 consisted of the following:

Balance Balance Due Within
June 30, 2024, as restated Additions* June 30, 2025 One Year Governmental Activities:

Compensated absences payable 17,904,217$ 635,169$ 18,539,386$ 7,551,236$ Business-Type Activities:

Compensated absences payable 571,425 15,543 586,968 153,219 18,475,642$ 650,712$ 19,126,354$ 7,704,455$ * Presented as net change
Balance at Balance at Due Within Due in More
July 1, 2024 Additions Retirements June 30, 2025 One Year than One Year Bonds payable:

Bonds 89,998,136$ -$ (4,973,438)$ (A) 85,024,698$ 4,330,000$ 80,694,698$ Bonds from direct placements 154,140,000 - - 154,140,000 2,980,000 151,160,000 Loans payable from direct borrowings 609,071 - (143,090) 465,981 115,373 350,608 Financed purchases from direct borrowings 2,594,341 - (951,312) 1,643,029 935,417 707,612 Lease liability 996,762 21,315,218 (1,855,246) 20,456,734 1,776,126 18,680,608 Subscription based I.T. agreements 2,318,011 - (989,120) 1,328,891 910,544 418,347 Total 250,656,321 $ 21,315,218 $ (8,912,206) $ 263,059,333 $ 11,047,460 $ 252,011,873 $

Net
JPFA Lease Revenue Bonds - 2016 23,098,498 $
JPFA Lease Revenue Bonds - 2019A 61,926,200
Pension Funding Bond Series 2022 (Refunding) 154,140,000 Total 239,164,698 $
91 963
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Richmond Joint Powers Financing Authority Lease Revenue Bonds, Series 2016 – Original Issue - $28,390,000
On February 1, 2016, the Authority issued Series 2016 Lease Revenue Bonds in the amount of $28,390,000. The proceeds from the Bonds were used to pay the obligations of the City related to the termination of the interest rate swap agreement and the option on swap agreement (swaption) related to the Authority’s Series 2009 Lease Revenue Refunding Bonds and to pay the costs associated with the issuance of the Series 2016 Bonds. On February 3, 2016 the interest rate swap agreement and the swaption related to the Series 2009 Bonds were terminated with a swap termination payment of $28,554,000.

The Bonds bear interest rates of 4.00% to 5.50%. Principal payments are due annually on November 1 through 2037 and semi-annual interest payments are due May 1 and November 1 commencing on May 1, 2016.

At June 30, 2025, the 2016 Bonds consisted of the following:

The annual debt service requirements are as follows:

Bonds outstanding 22,275,000$
Unamortized premium 823,498
Total 23,098,498$
For the Years
Ending June 30, Principal Interest Total
2026 1,445,000 $ 970,438 $ 2,415,438 $ 2027 1,510,000 889,175 2,399,175 2028 1,595,000 803,788 2,398,788 2029 1,665,000 714,138 2,379,138 2030 1,730,000 620,775 2,350,775 2031-2035 9,005,000 1,969,700 10,974,700 2036-2038 5,325,000 317,498 5,642,498 Total 22,275,000$ 6,285,512 $ 28,560,512 $
92 964
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Richmond Joint Powers Financing Authority Lease Revenue Bonds, Series 2019A – Original Issue - $63,970,000
The Series 2019A Bonds are being issued to: redeem $77,315,000 outstanding principal amount of the Authority’s Lease Revenue Refunding Bonds (Civic Center Project) Series 2009, purchase a reserve facility for deposit into the reserve account establishe d for the Series 2019A Bonds, fund a deposit into the Interest Account within the Revenue Fund to capitalize a portion of the interest due on May 1, 2020, and pay costs associated with the issuance of the Series 2019A Bonds. The Bonds are payable solely from, and secured solely by, Revenues of the Authority, cons isting primarily of Base Rental Payments to be received by the Authority from the City of Richmond under a Facility Lease, dated as of August 1, 2019, by and between the City and the Authority, for the right to use and the occupancy of certain real property and facilities. The Series 2019A Bonds will mature on November 1 annually commencing November 1, 2020. Interest on the Series 2019A Bonds is payable at the rate of 5% on November 1 and May 1 of each year, commencing May 1, 2020. The refunding resulted in an overall debt service savings of $29,893,316.

The net present value of the debt service savings is called an economic gain and amounted to $25,000,596.

At June 30, 2025, the 2019A Bonds consisted of the following:

The annual debt service requirements are as follows:

Bonds outstanding 51,525,000$
Unamortized premium 10,401,200
Total 61,926,200$
For the Years
Ending June 30, Principal Interest Total
2026 2,885,000 $ 2,504,125 $ 5,389,125 $ 2027 3,035,000 2,356,125 5,391,125 2028 3,190,000 2,200,500 5,390,500 2029 3,350,000 2,037,000 5,387,000 2030 3,525,000 1,865,125 5,390,125 2031-2035 20,525,000 6,421,875 26,946,875 2036-2038 15,015,000 1,151,375 16,166,375 Total 51,525,000 $ 18,536,125 $ 70,061,125 $ 93 965
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Pension Funding Bond Series 2022 (Refunding) – Amount $154,140,000 Taxable Pension Refunding Bonds, Series 2022 was issued under an Indenture, dated November 1, 2005, as supplemented by the First Supplemental Indenture, dated as of September 1, 2022 both by and between the City and U.S. Bank Trust Company, National Association, as trustee refund all of the City’s outstanding Taxable Pension Funding Bonds, Series 2005 B-1 Bonds and Taxable Pension Funding Bonds, Series 2005 B-2, pay interest rate swap termination fees as described herein, and pay the costs of issuance related to the Series 2022 Bonds.

The Series 2022 Bonds accrue interest from the date of delivery thereof and are payable semiannually on January 15 and July 15 of each year, commencing July 15, 2023. The refunding resulted in an overall debt service increase of $35.3 million over the term of th e debt. The net present value of the debt service savings is called an economic gain and amounted to approximately $10.2 million.

The annual debt service requirements are as follows:

Loans Payable
Loans payable from direct borrowing at June 30, 2025 consisted of the following:

California Energy Commission Phase 1 – Original Amount $621,558 On April 22, 2013, the City entered into a direct borrowing loan agreement with the California Energy Commission in the amount of $621,558. The purpose of the loan is to provide funding for the replacement of street lighting with new LED lights. The loan bear s a 3% interest rate and is due in semi-annual payments in December and June through December 2025.

For the Years
Ending June 30, Principal Interest Total
2026 2,980,000 $ 8,425,749 $ 11,405,749 $ 2027 3,345,000 8,299,575 11,644,575 2028 3,730,000 8,154,603 11,884,603 2029 4,150,000 7,986,306 12,136,306 2030 4,595,000 7,792,418 12,387,418 2031-2035 30,920,000 35,050,433 65,970,433 2036-2040 48,310,000 25,022,492 73,332,492 2041-2044 56,110,000 8,440,905 64,550,905 Total 154,140,000$ 109,172,481 $ 263,312,481 $ City Loans Payable
California Energy Commission Loan #1 29,882 $
California Energy Commission Loan #2 436,099
465,981$
94 966
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
California Energy Commission Phase 1 – Original Amount $621,558, Continued The annual debt service requirements on the loan are as follows:

California Energy Commission Phase 2 – Original Amount $1,239,036 During fiscal year 2015, the City entered into a direct borrowing loan agreement with the California Energy Commission in the amount of $1,239,036. The pu rpose of the loan is to provide funding for the replacement of street lighting with new LED lights. The loan bears interest at 1% and is due in semi- annual payments in December and June through June 2030.

The annual debt service requirements on the loan are as follows:

Financed Purchases
Financed purchases payable from direct borrowing at June 30, 2025 consisted of the following:

For the Years
Ending June 30, Principal Interest Total
2026 29,882 $ 449 $ 30,331 $ Total 29,882 $ 449 $ 30,331 $ For the Years
Ending June 30, Principal Interest Total
2026 85,490 $ 4,148 $ 89,638 $ 2027 86,347 3,291 89,638 2028 87,206 2,432 89,638
2029 88,086 1,552 89,638
2030 88,970 669 89,639 Total 436,099$ 12,092$ 448,191$
Qualified Energy Conservation 85,346$
JPFA Recovery Zone Economic Development 56,016
Street Light 583,021
Holman Capital Corporation #5 918,646
Total 1,643,029$
95 967
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Qualified Energy Conservation – Original Amount $1,052,526 On December 22, 2010 the City entered into a direct borrowing financed purchase with Bank of America in the amount of $1,052,526 to finance the purchase and installation of energy conservation equipment at various City-owned buildings. The City received an allocation of the national Qualified Energy Conservation Bond which includes a direct subsidy from the United States Treasury for the interest payable on the bonds under the Hir ing Incentives to Restore Employment Act (HIRE Act). The subsidy will be payable on or about the date that the City makes its debt service payments and is equal to 59.79% of the interest payable on the purchase. The subsidy received in fiscal year 2024 was $8,774. The purchase bears interest at a rate of 6.79% and principal and interest payments are due semi-annually each June 15 and December 15 commencing on December 15, 2011 through June 15, 2026.

The annual debt service requirements on the financed purchase are as follows:

Richmond Joint Powers Financing Authority Rec overy Zone Economic Development – Original Amount $1,316,000
On December 22, 2010 the Authority entered into a direct borrowing financed purchase with Bank of America in the amount of $1,316,000 to finance the impr ovements to three of the City’s fire stations and a senior center. The City agreed to use the three fire stations to the Authority in exchange for payments in the amount of the debt. The Authority received the proceeds under an allocation of the National Recovery Zone Economic Development Bonds under the American Recovery and Reinvestment Act of 2009, which includes a direct subsidy from the United States Treasury for the interest payable on the Bonds. The subsidy will be payable on or about the date that the Authority makes its debt service payments and is equal to 45% of the interest payable on the lease upon filing of a request by the Authority. The total subsidy received in fiscal year 20 25 was $3,809. The lease bears interest at a rate of

6.50% and principal and interest payments on the lease are due semi-annually each June 15 and December 15, commencing on June 15, 2011, through 2026.

The annual debt service requirements on the financed purchase are as follows:

For the Years
Ending June 30, Principal Interest Total
2026 85,346 $ 4,356 $ 89,702 $ Total 85,346 $ 4,356 $ 89,702 $ For the Years
Ending June 30, Principal Interest Total
2026 56,016 $ 1,821 $ 57,837 $ Total 56,016 $ 1,821 $ 57,837 $ 96 968
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Street Light - Original Amount $4,641,936
On July 31, 2013 the City entered into a direct borrowing financed purchase agreement with Bank of America in the amount of $4,641,936 to finance the purchase of streetlights and the associated upgrade costs. The purchase bears an interest rate of 2.55%. Principal and interest payments on the purchase are due semi-annually on each October 30 and April 30 commencing on April 30, 2014 through October 30, 2026.

The annual debt service requirements on the financed purchase are as follows:

Holman Capital Corporation #5 – Fire Apparatus Equipment Lease - Original Amount $2,687,645 On May 17, 2018 the City entered into a direct borrowing financed purchase agreement with Holman Capital Corporation in the amount of $2,687,645 to finance the purchase of one Spartan Ladder Truck and two Spartan Pumper Trucks, wh ich are pledged as collateral for the purchase. The purchase bears an interest rate of 3.91%. Principal and interest payments on the purchase ar e due quarterly on each August 17, November 17, February 17, and May 17 commencing on August 17, 2018 through May 17, 2028.

The annual debt service requirements on the financed purchase are as follows:

For the Years
Ending June 30, Principal Interest Total
2026 499,675 $ 11,738 $ 511,413 $
2027 83,346 1,063 84,409
Total 583,021$ 12,801$ 595,822$
For the Years
Ending June 30, Principal Interest Total
2026 294,381 31,638 326,019 2027 306,061 19,958 326,019 2028 318,204 7,814 326,018 Total 918,646 $ 59,410 $ 978,056 $ 97 969
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Lease Liability (Dicon Fiberoptics)
On January 1, 2020, the City entered into a lease as Lessee for the use of Dicon Fiberoptics and the lease end date was on December 31, 2024. The lease was amended to extend the lease term for 5 years to December 31, 2029. The City is required to make monthly fixed payments of $152,298, with step payment increase to $156,735 from January 1, 2022 to December 31, 2022, 3% annual increase from January 1, 2023 to December 31, 2024, and monthly fixed payments of $140,870 with 3% annual increase from January 1, 2025 to December 31, 2029. The lease has an interest rate of 1.1810%. As of June 30, 2025, the value of the lease liability is $20,456,734.

At June 30, 2025, the aggregate maturities of the governmental lease liability were as follows:

Subscription Based Information Technology Arrangements (SBITA) At June 30, 2025, SBITA liabilities consisted of the following:

For the Years
Ending June 30, Principal Interest Total
2026 1,776,126$ 232,089$ 2,008,215$
2027 1,857,787 210,674 2,068,461
2028 1,942,235 188,280 2,130,515
2029 2,029,556 164,873 2,194,429
2030 2,119,843 140,419 2,260,262
2031-2035 10,731,187 299,362 11,030,549 Total 20,456,734$ 1,235,697$ 21,692,431$
Balance at
June 30, 2025
Cobalt 385,283$
GovInvest 77,824
Public Safety Systems Data 214,261
ShotSpotter 208,991
Microsoft 442,532
Total SBITA 1,328,891$
98 970
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Cobalt
On May 1, 2017, the City entered into a subscription for the use of Cobalt RMS Software and the lease end date was on June 30, 2027. An initial subscription liability was recorded in the amount of $1,111,743 on July 1, 2022. As of June 30, 2025, the value of the subscription liability is $385,283. The City is required to make annual fixed payments of $360,000 until June 30, 2023, and $200,000 from July 1, 2023 to June 30, 2027. The subscription has an interest rate of 2.5360%.

At June 30, 2025, the aggregate maturities of the SBITA were as follows:

eScribe
On April 27, 2021, the City entered into a subscription for the use of eScribe and the lease end date was on April 26, 2026. An initial subscription liability was recorded in the amount of $142,427 on July 1, 2022.

The subscription liability was paid off as of June 30, 2025. The City is required to make annual fixed payments of $47,242 with 5% annual increase. The subscription has an interest rate of 2.4450%.

For the Years
Ending June 30, Principal Interest Total
2026 190,229$ 9,771$ 200,000$
2027 195,054 4,946 200,000
Total 385,283$ 14,717$ 400,000$
99 971
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
GovInvest
On March 6, 2023, the City entered into a subscripti on for the use of GovInvest, Inc and the lease end date was on June 30, 2026. An init ial subscription liability was recorded in the amount of $257,729 on July 1, 2022. As of June 30, 2025, the value of the subs cription liability is $77,824. The City is required to make fixed payments of $26,400 until June 30, 2023 and $80,000 from July 1, 2023 to June 30, 2026. The subscription has an interest rate of 2.7960%.

At June 30, 2025, the aggregate maturities of the SBITA were as follows:

Public Safety Systems Data
On November 1, 2021, the City entered into a subscription for the use of Public Safety Systems Data and the lease end date was on October 31, 2026. An initia l subscription liability was recorded in the amount of $840,217 on July 1, 2022. As of June 30, 2025, the value of the subscription liability is $214,261. The City is required to make fixed payments of $219,500. The subscription has an interest rate of 2.4450%.

At June 30, 2025, the aggregate maturities of the SBITA were as follows:

For the Years
Ending June 30, Principal Interest Total
2026 77,824 $ 2,176 $ 80,000 $ Total 77,824$ 2,176$ 80,000$
For the Years
Ending June 30, Principal Interest Total
2026 214,261 $ 5,239 $ 219,500 $ Total 214,261$ 5,239$ 219,500$
100
972
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
RippleWorx
On January 1, 2023, the City entered into a 36-month subscription for the use of RippleWorx. An initial subscription liability was recorded in the amount of $144,276 on July 1, 2022. The subscription liability was paid off as of June 30, 2025. The City is required to make annual fixed payments of $50,000. The subscription has an interest rate of 2.7960%.

ShotSpotter
On July 1, 2021, the City entered into a subscription for the use of ShotSpotter Subscription and the lease end date was on June 30, 2026. An initial subscripti on liability was recorded in the amount of $816,036 on July 1, 2022. As of June 30, 2025, the value of the subscription liability is $208,991. The City is required to make fixed payments of $203,907 until June 30, 20 23 and $214,101 from July 1, 2023 to June 30, 2026.

The subscription has an interest rate of 2.4450%.

At June 30, 2025, the aggregate maturities of the SBITA were as follows:

For the Years
Ending June 30, Principal Interest Total
2026 208,991 $ 5,110 $ 214,101 $ Total 208,991$ 5,110$ 214,101$
101
973
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Microsoft
On September 29, 2020, the City entered into a subscription for the use of Microsoft and the lease end date was on October 28, 2026. An initial subscription liability was recorded in the amount of $1,004,611 on July 1, 2022. As of June 30, 2025, the value of the subscription liability is $442,532. The City is required to make fixed payments of $140,021 until September 28, 2023 and $227,425 from September 29, 2023 to October 28, 2026. The subscription has an interest rate of 1.8500%.

At June 30, 2025, the aggregate maturities of the SBITA were as follows:

B. Business-Type Activities
The following is a summary of long-term debt of busi ness-type activities during the fiscal year ended June 30, 2025:

Bonds payable at June 30, 2025 consisted of the following:

For the Years
Ending June 30, Principal Interest Total
2026 219,238 $ 8,187 $ 227,425 $ 2027 223,294 4,131 227,425 Total 442,532$ 12,318$ 454,850$
Balance at Balance at Due Within Due in More
July 1, 2024, as restated Additions Retirements June 30, 2025 One Year than One Year Bonds payable 127,020,808$ -$ (3,920,186)$ (A) 123,100,622 $ 3,050,000$ 120,050,622$ Notes and loans payable
from direct borrowing 45,777,830 7,415,273 (B) (1,333,793) 51,859,310 1,562,081 50,297,229 Lease liability 290,704 - - 290,704 290,704 - Total 173,089,342$ 7,415,273$ (5,253,979)$ 175,250,636$ 4,902,785$ 170,347,851$ (A) Retirements of bonds payable include principal retirements in the amount of $2,930,000 and amortization of bond premiums and discounts in the amount of $990,186.
(B) California State Loan drawdown
Wastewater Revenue Bonds Series 2017A 31,302,194$
Wastewater Revenue Bonds Series 2019A 24,561,641
Wastewater Revenue Bonds Series 2019B 67,236,787
Total 123,100,622$
102
974
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
Richmond Wastewater Revenue Bonds, Series 2017A – Original Issue $33,530,000 On July 19, 2017 the City issued Series 2017A Wast ewater Revenue Bonds in the amount of $33,530,000.

The proceeds from the Bonds were used to finance improvements to the City’s wastewater collection, treatment and disposal system and to refund a ll of the City’s outstanding Wastewater Revenue Refunding Bonds, Series 2006A. Principal payments ar e due annually on August 1. Interest rates on the Bonds range from 2% to 5.25% and payments ar e due semiannually on August 1 and February 1 beginning February 1, 2018. The bonds mature on August 1, 2047.

At June 30, 2025 the Series 2017A Bonds consisted of:

Bonds outstanding 26,955,000$
Unamortized premium 4,347,194
Net 31,302,194$
103
975
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
Richmond Wastewater Revenue Bonds, Series 2017A – Original Issue $33,530,000, Continued The annual debt service requirements on the 2017A Bonds are as follows:

Richmond Wastewater Revenue Bond Series 2019A and Wastewater Revenue Refunding Bonds, Series 2019B – Original Issue Series 2019A ($22,510,000) and Series 2019B ($66,075,000) On June 26, 2019 the City issued Series 2019A Wastewater Revenue Bonds and the 2019B Wastewater Revenue Refunding Bonds in the amounts of $22,510,000 and $66,075,000, respectively. The proceeds from the 2019A Bonds were used to finance improvements to the City’s wastewater collection, treatment and disposal system. The proceeds from the 2019B Bonds were used to refund all of the City’s outstanding Wastewater Revenue Refunding Bonds, Series 2008A, and to partially refund and defease the City’s outstanding Wastewater Revenue Refunding Bonds, Series 2010B. The outstanding balance of the defeased 2010B Bonds was $36,480,000 at June 30, 2019. Principal payments are due annually on August 1. Interest rates on the Bonds range from 3% to 5% and payments are due semiannually on August 1 and February 1 beginning February 1, 2020. The refunding resulted in an overall debt service savings of $6,799,507. The net present value of the debt service savings is called an economic gain and amounted to $4,738,022. The bonds mature on August 1, 2049.

At June 30, 2025 the Series 2019A Bonds consisted of:

For the Years
Ending June 30, Principal Interest Total
2026 -$ 1,396,600$ 1,396,600$ 2027 - 1,396,600 1,396,600 2028 - 1,396,600 1,396,600 2029 - 1,396,600 1,396,600 2030 - 1,396,600 1,396,600 2031-2035 - 6,983,000 6,983,000 2036-2040 520,000 6,959,750 7,479,750 2041-2045 14,105,000 5,420,088 19,525,088 2046-2048 12,330,000 993,825 13,323,825 Total 26,955,000$ 27,339,663$ 54,294,663$
Bonds outstanding 22,510,000$
Unamortized premium 2,051,641
Net 24,561,641$
104
976
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
Richmond Wastewater Revenue Bond Series 2019A and Wastewater Revenue Refunding Bonds, Series 2019B – Original Issue Series 2019A ($22,510,000) and Series 2019B ($66,075,000), Continued The annual debt service requirements on the 2019A Bonds are as follows:

At June 30, 2025 the Series 2019B Bonds consisted of:

The annual debt service requirements on the 2019B Bonds are as follows:

For the Years
Ending June 30, Principal Interest Total
2026 - $ 973,900$ 973,900 $ 2027 - 973,900 973,900 2028 - 973,900 973,900 2029 - 973,900 973,900 2030 - 973,900 973,900 2031-2035 - 4,869,500 4,869,500 2036-2040 2,330,000 4,752,250 7,082,250 2041-2045 5,020,000 3,653,000 8,673,000 2046-2050 15,160,000 2,093,400 17,253,400 Total 22,510,000$ 20,237,650$ 42,747,650$ Bonds outstanding 58,045,000$
Unamortized premium 9,191,787
Net 67,236,787$
For the Years
Ending June 30, Principal Interest Total
2026 3,050,000 $ 2,569,100 $ 5,619,100 $
2027 3,175,000 2,413,475 5,588,475
2028 3,315,000 2,251,225 5,566,225
2029 3,455,000 2,081,975 5,536,975
2030 3,605,000 1,905,475 5,510,475
2031-2035 20,390,000 6,612,000 27,002,000 2036-2040 18,705,000 1,835,375 20,540,375 2041 2,350,000 35,250 2,385,250 Total 58,045,000$ 19,703,875 $ 77,748,875 $
105
977
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
Pledge of Wastewater Revenues
The City has pledged future wastewater customer revenues, net of specified operating expenses, to repay the 2017A, 2019A and 2019B Bonds through 2050. The Municipal Sewer Enterprise Fund’s total principal and interest remaining to be paid on the bonds is $190,858,013. The Municipal Sewer Enterprise Fund’s principal and interest paid for the current year, and total customer net revenues were $7,605,874 and $18,094,659, respectively.

Notes and Loans Payable – Direct Borrowing
Notes and loans payable at June 30, 2025, consisted of the following:

California Department of Boating and Waterways
The City has four direct borrowing loan agreements with the California Department of Boating and Waterways for total borrowings of $3,772,278. Proceeds from the loans were used to finance marina construction projects. The loans bear interest at rates ranging from 4.5% to 7.9% and are due in annual installments through August 2042. The total amount outstanding at June 30, 2025 was $1,901,953.

The annual debt service requirements on these loans are as follows:

California Department of Boating and Waterways 1,901,953$ RHA RAD Housing Partners L.P. Promissory Note 700,000
California State Loan 49,257,357
Total 51,859,310$
For the Years
Ending June 30, Principal Interest Total
2026 121,227$ 85,588$ 206,815$
2027 126,682 80,133 206,815
2028 132,383 74,432 206,815
2029 138,340 68,475 206,815
2030 144,566 62,248 206,814
2031-2035 694,589 213,369 907,958 2036-2040 532,588 76,613 609,201 2041-2043 11,577 1,055 12,632 Total 1,901,953$ 661,912$ 2,563,865$
106
978
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
RHA RAD Housing Partners, LP Promissory Note
On December 17, 2014, the Housing Authority’s Component Unit, RHA Housing Corporation, entered into an agreement with the City and promised to pa y the City a principal amount of $700,000, plus accrued interest. The proceeds of the Note were th en loaned from RHA Housing Corporation to the Housing Authority to finance acquisitions and development of the properties undergoing rehabilitation work in conjunction with a RAD conversion (Friendship Manor/Triangle Court). On December 22, 2015, the official closing of the RAD conversion took plac e, at which time the Note was assigned to a newly created entity, RHA RAD Housing Partners, L.P. The Note payable to the City was assigned from RHA Corporation to RHA RAD Housing Partners, L.P. al ong with a note receivable from the Housing Authority. The principle balance shall bear 1% simple interest. The term of the Note shall expire fifty- five years after. The balance of the promissory note at June 30, 2025 was $700,000.

In fiscal year 2015, the City had advanced the $700,000 to the Richmond Housing Authority Enterprise Fund, however, in fiscal year 2016 that loan was assigned to RHA RAD Housing Partners L.P. as discussed in Note 4. Therefore, the Richmond Housing Authority Enterprise Fund now owes this amount to RHA RAD Housing Partners L.P. and the interfund advance was converted to long-term debt in fiscal year 2016. The repayment schedule is not available.

California State Loan
Based on resolution Nos. 2019-0031 and 2019-0064, th e City Council approved the California State Loan agreement between the City of Richmond and the Ca lifornia State Water Resources Control Board for a $50 million loan for the Water Resource Recovery Facility Project. The principal is paid over 30 years and the applicable interest rate was set at 1.4%. As of June 30, 2025, the City had partially drawn down the loan and had an outstanding principal balance of $49,257,357. 107
979
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
California State Loan, Continued
The annual debt service requirements on the loan is as follows:

Lease Liability
At June 30, 2025 Lease Liabilities consisted of the following:

For the Years
Ending June 30, Principal Interest Total
2026 1,440,854$ 635,182$ 2,076,036$
2027 1,406,605 669,431 2,076,036
2028 1,426,297 649,739 2,076,036
2029 1,446,266 629,770 2,076,036
2030 1,446,513 609,523 2,056,036
2031-2035 7,646,343 2,733,837 10,380,180 2036-2040 8,196,786 2,183,393 10,380,179 2041-2045 8,786,853 1,593,328 10,380,181 2046-2050 9,419,398 960,782 10,380,180 2051-2054 8,041,442 282,702 8,324,144 Total 49,257,357$ 10,947,687$ 60,205,044$
Balance at
June 30, 2025
West County Wastewater District 290,704$
Total Lease Liability 290,704$
108
980
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
West County Wastewater District
On January 1, 2010, the City entered into a lease as Lessee for the use of West County Wastewater District and the lease end date was on December 31, 2025. An initial lease liability was recorded in the amount of $1,172,173 on July 1, 2021. As of June 30, 2024, the value of the lease liability is $290,704. The city is required to make annually fixed payments of $153,000, with 3% annual increase from January 1, 2013 to December 31, 2017 and 6% annual increase from January 1, 2018 to December 31, 2025. The lease has an interest rate of 1.0590%.

At June 30, 2025, the maturities of the lease liability were as follows:

Ending June 30, Principal Interest Total
2026 290,704 $ 3,079 $ 293,783$
Total 290,704$ 3,079 $ 293,783$
109
981
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
C. Events of Default, Termination Events and Subjective Acceleration Clauses Below is a summary of certain events of defa ult and termination events with finance related consequences, along with the subjec tive acceleration clauses, as applicable, for all of the City’s outstanding long-term debt obligations. Each agreem ent may contain additional events of default, termination events or other subjective acceleration clauses.

(A) If the City fails to pay debt service when due, the delinquent principal and interest is due and payable immediately. If the City files for reorganization under bankruptcy laws, the aggregate outstanding principal balance and accrued interest are immediately due and payable. (B) If the City fails to pay rental payable when due or the Authority fails to pay debt service when due, the delinquent principal and interest is due and pa yable immediately. In the event of default, the Authority has the option to exercise the right of en try and re-entry upon the leased property, including the right to re-lease the property if the City does not pay the delinquent rent.

Events of default Termination events Subjective
with finance-related with finance-related acceleration
consequences consequences clauses
Governmental Activities
Bonds Payable
Series 2022 Taxable Pension Refunding Bonds (A) N/A (A) JPFA Lease Revenue Bonds - 2016 (B) (B) N/A
JPFA Lease Revenue Bonds - 2019A (B) (B) N/A
Loans Payable
California Energy Commission Loan #1 (C) (C) (C)
California Energy Commission Loan #2 (C) (C) (C)
California State Loan (L) (L) (L)
Capital Leases
Qualified Energy Conservation Lease (D) (D) N/A
JPFA Recovery Zone Economic Development Lease (E) (E) N/A Street Light Capital Lease (G) (G) N/A
Holman Capital Corporation Lease #5 (H) (H) N/A
Business-Type Activities
Bonds Payable
Wastewater Revenue Bonds Series 2017A (A) N/A (A)
Wastewater Revenue Bonds Series 2019A (I) N/A (I)
Wastewater Revenue Bonds Series 2019B (I) N/A (I)
Notes and Loans Payable
California Department of Boating and Waterways (J) (J) (J) RHA RAD Housing Partners L.P. Promissory Note (K) (K) (K) 110
982
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
C. Events of Default, Termination Events and Subjective Acceleration Clauses, Continued (C) Events of default include the failure to comply with any of the terms in the loan agreement, failure to pay principal or interest when du e, failure of the City to undertake in a timely way the activities for which said Loan Agreement was executed, failure of the City to obtain prior written Commission approval before undertaking a change in the scope of the activities for which said Loan Agreement was executed, or the City becoming insolvent or bankru pt. On the occurrence of any event of default, the Commission may declare all or any portion of the pr incipal and accrued interest on the loan to be immediately due and payable. If the City fails to comply with the terms of the loan agreement, the Commission may declare the agreement to have been breached and be released from any further performance.
(D) Events of default include: (a) Failure to (i) pay any rental payment or other payment required to be paid under the agreement within 10 days after the date when due or (ii) maintain insurance as required; (b) failure to observe and perform any covenant, cond ition or agreement for a period of 30 days after written notice; (c) any false, incorrect or misleading statements, representations or warranties made by the City pursuant to the agreement; (d) any default occurs under any other agreement for borrowing money, lease financing of property; (e) the City file s becomes insolvent or files for bankruptcy. In the event of default, the lessor has the right to take various steps, including take possession of the equipment or accelerate the repayment of the principal and outstanding interest. (E) If the City fails to pay lease payments when due or observe other covenants in the lease agreement within thirty days of the written notice of the failure, the outstanding bal ances are due and payable immediately. If the City files for reorganization under bankruptcy laws, the aggregate outstanding principal balance and accrued interest are immediately due and payable. In the event of default, the Authority has the option to exercise the right of en try and re-entry upon the leased property, including the right to re-lease the property if the City does not pay the delinquent lease payments. (F) If the City fails to pay lease payments when due or observe other covenants in the lease agreement within thirty days of the written notice of the failure, the outstanding bal ances are due and payable immediately. If the City files for reorganization under bankruptcy laws, the aggregate outstanding principal balance and accrued interest are immediately due and payable. (G) If the City fails to pay lease payments when due or observe other covenants in the lease agreement, the outstanding balances are due and payable immedi ately. If the City files for reorganization under bankruptcy laws, the aggregate outstanding principal balance and accrued interest are immediately due and payable. Upon events of default, the Energy Commission may terminate the Agreement upon five days written notice to the City.
(H) If the City fails to pay lease payments when due or observe other covenants in the lease agreement within thirty days of the written notice of the failure, the outstanding bal ances are due and payable immediately. If the City files for reorganization under bankruptcy laws, the aggregate outstanding principal balance and accrued interest are immediately due and payable. In the event of default, the Lessor has the option to exercise the right of entry and re-entry upon the leased property, including the right to re-lease the property if the City does not pay the delinquent lease payments. 111
983
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
C. Events of Default, Termination Events and Subjective Acceleration Clauses, Continued (I) If the City fails to pay debt service when due, the delinquent principal and interest is due and payable immediately. If the City files for reorganization under bankruptcy laws, the aggregate outstanding principal balance and accrued interest are immediately due and payable. In the event of default, the City is required to transfer all Net Revenues held by the City to the Trustee, except as noted in the Indenture of Trust.
(J) If the City fails to pay debt service when due, the delinquent principal and interest is due and payable immediately. If the City files for reorganization under bankruptcy laws, the aggregate outstanding principal balance and accrued interest are immediatel y due and payable. In the event of default, the Department of Boating and Waterways has the op tion to declare all unperformed obligations immediately due and payable without further demand or notice to the City. (K) Events of default include the failure to repay th e principal and any interest on the loan within ten days of receipt of written notice that such payment is due pursuant to the loan documents, breach of covenants included in the loan documents, or becoming insolvent or bankrupt. In the event of default, the principal and accrued interest are immediately due and payable. (L) If the State Water Board Division determines that an event of default has occurred, the city may be required, upon demand, immediately to do each of the following: (1) Return to the State Water Board any grant or principal forgiveness amounts received pursuant to the agreement (2) Accelerate the payment of any principal owed under the agreement, all of which shall be immediately due and payable (3) Pay interest at the highest legal rate on all of the forgoing (4) Pay an additional payments. In addition, the Division may enforces its right under the agreement by any judicial proceeding, terminates the agreement, and receives reimbursement from the city.

D. Special Assessment Debt Without City Commitment
Special assessment districts have been established in various parts of the City to provide improvements to properties located in those districts. Properties in these districts are assessed for the cost of improvements; these assessments are payable solely by property owners over the term of the debt issued to finance these improvements. The City is not legally or morally obligated to pay these debts or be the purchaser of last resort of any foreclosed properties in these special assessment districts, nor is it obligated to advance City funds to repay these debts in the event of default by any of these districts. At June 30, 2025, the balances of these Districts’ outstanding debt were as follows:

Richmond JPFA Reassessment Revenue Refunding Bonds, Series 2016 (Country Club Vista) $3,085,000.

E. Conduit Debt
The City has assisted private-sector entities by sponsoring their issu ance of debt for purposes the City deems to be in the public interest. These debt issues are secured solely by the property financed by the debt. The City is not legally or mora lly obligated to pay these debts or be the purchaser of last resort of any foreclosed properties secured by these debts, nor is it obligated to advance City funds to repay these debts in the event of default by any of these issuer s. At June 30, 2025, the balance of this issuers’ outstanding debt was as follows:

Richmond Community Foundation, Richmond Housing Rehabilitation Program, Social Impact Bonds, Taxable Series 2015A $3,000,000 112
984
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

9. UNAVAILABLE AND UNEARNED REVENUE
At June 30, 2025, the following unavailable revenues were recorded in the Fund Financial Statements because the funds were not available to finance expenditures of the current period:

At June 30, 2025, the following unearned revenues were recorded in the City-wide financial statements on the Statement of Net Position:

Accounts
Loans and Grants
Receivable Receivable Total
General Fund 2,413,684$ -$ 2,413,684$ Community Development and Loan
Programs Fund 18,699,079 290,735 18,989,814 General Purpose Fund 3,136,561 5,438,938 8,575,499 Non-Major Governmental Funds - 8,159,786 8,159,786 Total 24,249,324$ 13,889,459$ 38,138,783$ Miscellaneous
Receipts, Grants
Prepaid Rent and Deposits Total
General Fund 2,680,107$ 1,196,158$ 3,876,265$ General Purpose Fund - 14,527,415 14,527,415 Non-Major Governmental Funds 2,067,510 26,950,967 29,018,477 Richmond Housing Authority Enterprise Fund 59,820 1,771,760 1,831,580 Port of Richmond Enterprise Fund - 535,374 535,374 Municipal Sewer Enterprise Fund - 36,280 36,280 Total 4,807,437$ 45,017,954$ 49,825,391$ 113
985
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

10. FUND BALANCE AND NET POSITION
A. Fund Balance Classification
Detailed classifications of the City’s fund balances, as of June 30, 2025, are below:

Community General General Capital Nonmajor
General Development and Purpose Improvement Governmental Fund Balance Classifications Fund Loan Program Fund Fund Fund Funds Total Nonspendable:

Items not in spendable form:

Prepaids, supplies and other assets 882,915$ -$ -$ -$ -$ 882,915$ Loans receivable 700,000 - - - - 700,000 Advances to other funds 7,502,950 - - - - 7,502,950 Total Nonspendable Fund Balances 9,085,865 - - - - 9,085,865 Restricted for:

Street Improvement Projects - - - - 13,093,298 13,093,298 Public Safety Grant Programs (Police and Fire) - - - - 276,777 276,777 Lighting and Landscaping - - - - 1,032,890 1,032,890 Housing and Community Development - 34,855,987 - - 2,256,403 37,112,390 Debt Service - - - - 242,098 242,098 Community Development Projects - - - - 40,842,002 40,842,002 Kids First Initiative 13,173,995 - - - - 13,173,995 Employment and Training - - - - 82,927 82,927 Other Capital Projects - - 1,332,195 55,167,895 2,502,287 59,002,377 Pension Plans 4,277,473 - - - 11,4 27,177 15,704,650 Total Restricted Fund Balances 17,451,468 34,855,987 1,332,195 55,167,895 71,755,859 180,563,404 Committed to:

Appropriation Authority 8,552,105 - - - - 8,552,105 Total Committed Fund Balances 8,552,105 - - - - 8,552,105 Assigned to:

Other Capital Projects - - - - 1,750,000 1,750,000 Other Contracts 5,398,076 - - - - 5,398,076 Total Assigned Fund Balances 5,398,076 - - - 1,750,000 7,148,076 Unassigned:

General Fund 62,824,919 - - - - 62,824,919 Other Governmental Fund Deficit Residuals - - - - (4,459,877) (4,459,877) Total Unassigned Fund Balances 62,824,919 - - - (4,459,877) 58,365,042 Total Fund Balances (Deficits) 103,312,433$ 34,855,987$ 1,332,195$ 55,167,895$ 69,045,982$ 263,714,492$ 114
986
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

10. FUND BALANCE AND NET POSITION, Continued
B. Cash Reserve Policy
In fiscal year 2023, the City Council updated the fund balance policy to require the City to maintain a year-end contingency reserve balanc e of a minimum of 21% of the next year’s budgeted General Fund expenditures including transfer out. This is the minimum needed to maintain the City’s creditworthiness and to adequately provide for economic and legislative uncertainties, cash flow needs and contingencies.

A policy based upon percentage assures that the re serve will remain a prudent cushion as the City’s budgets grow over time.

City Council approval is required before any cash can be withdrawn from the reserve fund. The Council shall have the discretion to use the reserve for one-time emergencies only and not to be used for ongoing expenditures. At the time of City Council approval of any use of reserves, a stabilization policy laying out the plans for restoration of reserves must be simultaneously put in plac e and approved by City Council.

The City’s cash reserve as of June 30, 2025, which is a component of unassigned fund balance of the General Fund, is $62,824,919, which is approximately 24.16% of fiscal year 2025-26 budgeted General Fund expenditures including transfers out. As the City experiences net revenue gains in future years, the reserve balance must continue to be maintained at a minimum of 21% of total expenditures, following the stabilization policy, in order to allow the City to build up its capacity to handle future short term economic downturns or emergencies with minimal to no impact to City services.

C. Deficit Fund Balances and Accumulated Deficits
At June 30, 2025, the following fund s had deficit fund balance or de ficit net position, which will be eliminated by future revenues:

D. Restatement of Net Position
During 2025, the City recorded the following restatements:
(1) Change in Reporting Entity – The General Purpose Fund moved from non-major to a major fund and the American Rescue Plan Act fund moved from major to a non-major fund.

Amount
Nonmajor Governmental Funds:

Paratransit Operations Fund (1,921,510) $
Transformative Climate Grant Fund (958,156)
Civic Center Debt Service Fund (1,663,138)
Nonmajor Enterprise Funds:

Cable TV Fund (1,675,433)
115
987
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

10. FUND BALANCE AND NET POSITION, Continued
D. Restatement of Net Position, Continued
(2) Implementation of GASB 101 to compensated absences – The City recorded a restatement of the prior year’s compensated absences liability balance to comply with the requ irements of GASB Statement No. 101, Compensated Absences. For Governmental Activities, compensated absences were increased by $4,584,325 and includes the $2,776 restatement from Internal Service Funds. For Business Activities, compensated absences were increased by $236,182 due to the restatement in the prior year. The breakdown of the $236,182 increase from Business Activities is listed in the fund financial as below. (3) Error correction to capital assets – The City reco rded restatements for capital assets due to capital projects in progress outlays that were expensed or capitalized incorrectly: For Governmental Activities, capital assets were understated by $535,188 and capi tal outlay expenditure wa s overstated by $535,188 in the prior year.
(4) Error correction to long-term debts – The City record a restatement for long-term debts due to the new amendment of loan schedule: For Business Activities, long-term debts were understated by $475,145 and fund balance was overstated by $475,145 in th e prior year. The amount is the same based on Municipal Sewer Fund.
(5) Error correction to accrued expenses – The City record a restatement for accrued expenses due to the incorrect invoice accrual period: For Governmental Activities, accrued expens es were overstated by $133,163 and capital outlay expenditure was understated by $133,163. For Business Activities, accrued expenses were overstated by $1,917,637 and maintenance expenditure was understated by $1,917,637.

Changes to or Change in
within the Accounting Error Error Error
Previously Financial Principle - Correction - Correction - Correction - Reported Reporting Entity GASB 101 Capital Assets Long-term Debts Accrued expenses As Restated Fund Financial
General Purpose Fund -$ (620,497)$ -$ -$ -$ -$ (620,497)$ American Rescue Plan Act Fund 3,429,640$ (3,429,640)$ -$ -$ -$ -$ -$ Internal Service Funds 26,088,128$ -$ (2,776)$ -$ -$ -$ 26,085,352$ Richmond Housing Authority Fund 25,528,082$ -$ (57,970)$ -$ -$ -$ 25,470,112$ Port of Richmond Fund 36,592,593$ -$ (7,982)$ -$ -$ -$ 36,584,611$ Municipal Sewer Fund 80,253,961$ -$ (82,661)$ -$ (475,145)$ (1,917,637)$ 77,778,518$ Non-Major Enterprise Funds 10,940,747$ -$ (87,569)$ -$ -$ -$ 10,853,178$ Non-Major Governmental Funds 63,982,380$ 4,050,137$ -$ -$ -$ (133,163)$ 67,899,354$ Governmental-Wide Financial
Governmental Activities (14,430,447)$ -$ (4,584,325)$ 535,188$ -$ (133,163)$ (18,612,747)$ Business Activities 153,315,383$ -$ (236,182)$ -$ (475,145)$ (1,917,637)$ 150,686,419$ Restatements
116
988
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

11. EXPENDITURES IN EXCESS OF APPROPRIATIONS
The following funds incurred departmental expenditures in excess of appropriations.

Excess of Expenditures
Fund/Department over Appropriations
General Fund
Capital outlay 19,851,299 $
Principal 2,795,726
Interest and fiscal charges 184,296
General Pension Fund
General Government 217,862
Police and Fire Pension Fund
Public safety 654,450
2022 Pension Obligation Bonds Fund
Interest and fiscal charges 610
Civic Center Debt Service Fund
Interest and fiscal charges 986
General Capital Improvement Fund
General Government 19,911
117
989
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. DEFINED BENEFIT PENSION PLANS
The following is a summary of the City’s pension plan amounts for the year ended June 30, 2025:

A. California Public Employees’ Retirement System Pension Plans I. General Information about the CalPERS Pension Plan
Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police and fire) and Misc ellaneous (all other) Plans, agent multiple-employer defined benefit pension plans administered by Ca lPERS, which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, wh o 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.

Deferred Net Deferred
Outflow of Pension Inflow of Pension
Resources Liability (Asset) Resources Expense (Revenue) California Public Employees' Retirement System:

Miscellaneous 25,905,704$ 121,527,542$ -$ 13,255,009$ Safety 38,283,423 230,933,732 204,528 30,509,407 Police and Firemen's Pension Plan - 3,188,765 - (1,711,995) General Pension Plan - 746,083 - 605,402 Totals 64,189,127$ 356,396,122$ 204,528$ 42,657,823$ 118
990
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. DEFINED BENEFIT PEN SION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued I. General Information about the CalPERS Pension Plan, Continued The City’s employees hired on or before December 31, 2012 participate in the Miscellaneous Plan under the 2.7% @ 55 Benefit Formula or the Safety Plan under the 3.0% @ 50 (Police) or 3.0% @ 55 (Fire) Benefit Formula. The Pension Reform Act of 2013 (PEPRA), Assembly Bill 340, is applicable to employees new to CalPERS and hired after December 31, 2012. The City’s employees hired on or after January 1, 2013 participate under the Miscellaneous Plan 2.0% @ 62 Be nefit Formula or the 2.7% @ 57 (Police and Fire) Benefit Formula.

The Plans’ provisions and benefits in effect at June 30, 2025, are summarized as follows:

Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.7% @ 55 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 55 52 - 67
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.0% to 2.5% Required employee contribution rates 8.00% 8.25%
Required employer contribution rates 13.27% 13.27%
Required UAL Contribution
Safety - Police Safety - Fire Safety - Police and Fire
Prior to Prior to On or after
Hire date January 1, 2013 January 1, 2013 January 01, 2013 Benefit formula 3.0% @ 50 3.0% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 - 55 50 - 57
Monthly benefits, as a % of eligible compensation 3.00% 2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 9.00%* 9.00%* 13.00% Required employer contribution rates 22.34% 22.34% 22.34% Required UAL Contribution
* Effective July 1, 2015, Safety (Police and Fire) employees hired prior to January 1, 2013 pay 3% of the employer's required contribution. Therefore, the required employer contribution rate is 18.07% and required employee contribution rate is 12%.

Miscellaneous
$ 10,460,916
$ 18,906,301
119
991
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. DEFINED BENEFIT PEN SION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued I. General Information about the CalPERS Pension Plan, Continued Beginning in fiscal year 2016, CalPERS collects employ er contributions for each Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability (UAL). The dollar amounts are billed on a monthly basis or can be prepaid in advance before July 31st to receive a savings of approximately 3%. In fiscal year 2022, the City started to prepay the unfunded liability on an annual basis. The City’s required contributions for the unfunded liability in the Miscellaneous and Safety Plans were $10,460,916 and $18,906,301 respectively, as noted in the tables above.

Employees Covered – As of the June 30, 2023 actuarial valuation date and the June 30, 2024 measurement date, the following employees were covered by the benefit terms for each Plan:

As of June 30, 2025, the City had 447 active em ployees in the Miscellane ous Plan and 196 active employees in the Safety Plan.

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 the July 1 following 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 addition al amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actu arially determined rate and the contribution rate of employees.

Contributions for the measurement period were $16,375,065 for the Miscellaneous Plan and $25,280,643 for the Safety Plan.

II. Net Pension Liability
The City’s net pension liability for each Plan is meas ured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each Plan is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

June 30, 2023 June 30, 2024 June 30, 2023 June 30, 2024 Inactive employees or beneficiaries
currently receiving benefits 1,014 1,019 559 565 Inactive employees entitled to but
not yet receiving benefits 570 588 95 108 Active employees 399 427 193 184 Total 1,983 2,034 847 857 Miscellaneous Safet y
120
992
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. DEFINED BENEFIT PEN SION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued II. Net Pension Liability, Continued
Actuarial Assumptions – For the measurement period ended June 30, 2024, the total pension liabilities were determined by the June 30, 2023 total pension liability. The June 30, 2024 total pension liabilities were based on the following actuarial methods and assumptions:

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2023 valuation were based on the results of 2023 actuarial experience study for the period 2001 to 2019. Further details of the Experience Study can be found on the CalPERS website.

Discount Rate – The discount rate used to measure the to tal pension liability for each Plan was 6.90%.

The projection of cash flows used to determine the discount rate for each Plan assumed that contributions from all plan members in the Public Employees Reti rement Fund (PERF) will be made at the current member contribution rates and that contributions fr om employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, each Plan’s fiduciary net position was projected to be available to make all projected futu re benefit payments of current plan members for all plans in the PERF. 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 for each Plan.

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

Miscellaneous (1) Safety (1)

Valuation Date June 30, 2023 June 30, 2023
Measurement Date June 30, 2024 June 30, 2024
Actuarial Cost Method Entry-Age Actuarial Cost Method Entry-Age Actuarial Cost Method Actuarial Assumptions:

Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Salary Increase Varies by Entry Age and Service Varies by Entry Age and Service Mortality (1) Derived using CalPERS’ membership
data for all funds
Derived using CalPERS’ membership data
for all funds
Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection
Allowance floor on purchasing power
applies, 2.30% thereafter
The lesser of contract COLA or 2.30%
until Purchasing Power Protection
Allowance floor on purchasing power
applies, 2.30% thereafter
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates include generational mortality improvement using 80% of S cale MP- 2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 CalPERS Experience Study report from November 2021 that can be found on the CalPERS website. 121
993
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. DEFINED BENEFIT PEN SION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued II. Net Pension Liability, Continued
In determining the long-term expected rate of retu rn, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. 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 single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both shor t-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 table below reflects the long-term expected real rate 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. These geometric rates of return are net of administrative expenses.

Assumed Asset
Asset Class (1) Allocation Real Return (1),(2)
Global Equit y - Cap-weighted 30.0% 4.54%
Global Equit y - Non-Cap-wei ghted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100.0%
(1) An expected inflation of 2.50% used for this period. (2) Figures are based on the 2021 Asset Liability Management study 122
994
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. DEFINED BENEFIT PEN SION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued II. Net Pension Liability, Continued

The changes in the Net Pension Liability as of the June 30, 2024 Measurement Date for each Plan follows:

Miscellaneous Plan:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2023 Measurement Date 539,760,608$ 409,739,923$ 130,020,685$ Changes in the year:

Service cost 7,316,334 - 7,316,334 Interest on the total pension liability 36,683,660 - 36,683,660 Differences between actual and
expected experience 5,026,256 - 5,026,256 Contribution - employer - 15,611,185 (15,611,185) Contribution - employees - 3,499,268 (3,499,268) Net investment income - 38,742,347 (38,742,347) Administrative expenses - (333,407) 333,407 Benefit payments, including refunds of
employee contributions (33,595,581) (33,595,581) - Net changes 15,430,669 23,923,812 (8,493,143) Balance at June 30, 2024 Measurement Date 555,191,277$ 433,663,735$ 121,527,542$ Safety Plan:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2023 Measurement Date 758,179,239$ 516,293,896$ 241,885,343$ Changes in the year:

Service cost 8,998,544 - 8,998,544 Interest on the total pension liability 51,297,671 - 51,297,671 Differences between actual and
expected experience 4,437,458 - 4,437,458 Contribution - employer - 22,864,777 (22,864,777) Contribution - employees - 4,333,792 (4,333,792) Net investment income - 48,906,825 (48,906,825) Administrative expenses - (420,110) 420,110 Benefit payments, including refunds of
employee contributions (47,342,941) (47,342,941) - Net changes 17,390,732 28,342,343 (10,951,611) Balance at June 30, 2024 Measurement Date 775,569,971$ 544,636,239$ 230,933,732$ Totals - Miscellaneous and Safety Plans 1,330,761,248$ 978,299,974$ 352,461,274$ Increase (Decrease)
Increase (Decrease)
123
995
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. DEFINED BENEFIT PEN SION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued II. Net Pension Liability, Continued
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower or 1-percentage point higher than the current rate:

Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

III. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2025, the City recognized pension expense of $43,764,416. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability 187,425,520$ 329,148,843$ Current Discount Rate 6.90% 6.90%
Net Pension Liability 121,527,542$ 230,933,732$ 1% Increase 7.90% 7.90%
Net Pension Liability 66,666,039$ 150,143,969$ Miscellaneous Plan Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 16,375,065$ -$ Differences between Expected and Actual Experience 2,513,128 - Net Differences between Projected and Actual
Earnings on Pension Plan Investments 7,017,511 - Total 25,905,704$ -$
124
996
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. DEFINED BENEFIT PEN SION PLANS, Continued
A. California Public Employees’ Retirement System Pension Plans, Continued III. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions, Continued

$41,655,708 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, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

IV. Pension Funding Policy & Section 115 Trust
In an effort to reduce Unfunded Actuarially Accrue d Liabilities (“UAL”) of the City’s pension plan, the City Council approved to establish a supplemental 115 Trust account on July 19, 2022. On June 27, 2023, the City adopted a Pension funding policy to place 10% of each year-end operating surplus (Total Actual Revenues minus Total Actual Expend itures, including Transfers In an d Transfers Out) in the General Fund in excess of the City’s Cash Reserve Policy into the Trust. The primary objectives of the policy are to: 1) Address the increasing annu al employer required UAL contribu tions due to variance in actual experience versus CalPERS actuarial assumptions including investment returns. 2)Prefunding the Trust Fund account can help the City improve its UAL fu nding ratio faster. 3)Provide budgetary flexibility during challenging budget years or to “smooth” payment spikes that could cause financial stress on the City.

Safety Plan Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 25,280,643$ -$ Differences between Expected and Actual Experience 3,688,799 204,528 Changes of Assumptions 641,085 - Net Differences between Projected and Actual
Earnings on Pension Plan Investments 8,672,896 - Total 38,283,423$ 204,528$
Total Both Plans 64,189,127$ 204,528$
Year Ended
June 30, Miscellaneous Safety Total
2025 2,249,584 $ 2,763,639 $ 5,013,223 $ 2026 11,149,659 15,016,430 26,166,089 2027 (1,668,765) (2,178,265) (3,847,030) 2028 (2,199,839) (2,803,552) (5,003,391) Total 9,530,639 $ 12,798,252 $ 22,328,891 $ Annual Amortization
125
997
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. DEFINED BENEFIT PEN SION PLANS, Continued
B. Other City Pension Plans
I. Plan Descriptions and Funding Policies
The City administers two single-employer pension pl ans which are not considered to be funded as defined by GASB No. 67 and 68. These are the Gene ral Pension Plan and Police and Firemen’s Pension Plan (collectively, the “Plans”). The General Pension Plan, a defined benefit pension plan, covers three former City employees (or their beneficiaries) not covered by CalPERS, all of whom have retired. The Police and Firemen’s Pension Plan, a defined benefit pension plan, covers twelve retired police and fire personnel (or their beneficiaries) employed prior to October 1964. Benefit provisions for the Plans are established by City Ordinance. No separate financial statements are issued for the Plans.

The City established the Secured Pension Override Special Revenue Fund to which proceeds of a special incremental property tax levy voted by the citizens of the City of Richmond are credited for the payment of benefits under the City’s pension plans. The incremental property tax revenue received for the year ended June 30, 2025 was $28,292,298 and the City used the funds to pay General Pension Plan contributions of $0.

Police and Firemen’s Pension Plan – Funding for the Plan is provided from the Secured Pension Override Special Revenue Fund. Employees were vested after five years of service. Members of the Plan are allowed normal retirement benefits after 25 or more continuous years of service. The City is required under its charter to contribute the remaining amount s necessary to fund the Plan using the entry age- normal actuarial method as specified by Ordinance. Management of the Plan is vested in the Pension Board which consists of seven members: the Mayor, City Manager, Director of Finance, two members appointed by the Mayor, with the concurrence of four members of the City Council, each of whom shall be and remain a resident of the City in order to be a member of the Board and serve a term of five years, one representative of the Police Department and one representative of the Fire Department. The Plan is closed to new members. Retirement benefits for Pl an members are calculated as one-half of the annual s a l a r y a t t a c h e d t o t h e r a n k o r p o s i t i o n h e l d b y t he retiree one year prior to the date of retirement.

Surviving spouses receive 100% of the retiree’s pension. Benefit terms provide for annual cost-of-living adjustments to each member’s retirement allowance subsequent to the member’s retirement date. The annual adjustments are an increase each year for changes in the salary attached to the retiree’s rank in the year before retirement.

126
998
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. DEFINED BENEFIT PEN SION PLANS, Continued
B. Other City Pension Plans, Continued
I. Plan Descriptions and Funding Policies, Continued
General Pension Plan – Retirement and other benefits are paid from the assets of the Plan and from related investment earnings. The City is required under its charter to contribute the remaining amounts necessary to fund the Plan using the entry age-norm al actuarial method as specified by Ordinance.

Management of the Plan is vested in the General Pe nsion Board which consists of seven members: the Mayor, City Manager, Director of Finance, two members appointed by the Mayor, with the concurrence of five members of the City Council, each of whom shall be and remain a resident of the City in order to be a member of the Board and serve a term of five years, and two members to be elected every five years by secret ballot vote of the rank and file of Plan employees and of Plan employees who have retired and are receiving pensions from the Plan. Four members of the General Pension Board are to be concurred in by four members.

The Plan is closed to new members. Retirement bene fits for Plan members are calculated as one-half of the average annual salary attached to the position held by the retiree during the three years prior to the date of retirement. Surviving spouses receive 100% of the retiree’s pension. Benefit terms provide for annual cost-of-living adjustments to each member’s retirement allowance subsequent to the member’s retirement date. The annual adjustments are an auto matic increase of 2% per year. City Council may grant additional increases of up to 3% per year to bring the total increase in a given year to 5%.

II. Significant Accounting Policies
City contributions for all plans are recognized when due and the City has made a formal commitment to provide contributions. Benefit payments and refunds are recognized when due and payable in accordance with the terms of the Plan. Administrative costs for all plans, except the investment management fees of the Police and Fireman’s Pension Plan, are paid by the City’s General Fund. The investment management fees are financed through investment earnings. Assets are valued at fair value based on available market information obtained from independent sources. 127
999
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. DEFINED BENEFIT PEN SION PLANS, Continued
B. Other City Pension Plans, Continued
III. Net Pension Liability of the Plans
The components of the net pension liability of the City for each of the Plans is the total pension liability, less each Plan’s fiduciary net position.

Actuarial Assumptions. The total pension liability for each plan as of June 30, 2025 was determined based on June 30, 2025 actuarial valuations. The following actuarial assumptions applied to all periods included in the measurement:

Mortality rates were based on the California PERS Mortality Table in its 2021 experience study (based on CalPERS 2000-2019 experience).

Discount Rates. The discount rates used to measure the total pension liability for the Police and Firemen’s Pension Plan and General Pension Plan were 5.20% and 5.20%, respectively, as of June 30, 2025 and 3.97% and 3.97%, respectively, as of June 30, 2024. The discount rate used for the total pension liability is based on the Fidelity 20-Year Municipal GO AA Index as of the measurement date.

Changes in Assumptions – The discount rate was changed from 3.97% to 5.20% based on the Fidelity 20- year municipal GO AA Index.

Police and Firemen's
Plan
General
Pension Plan
Discount rate, net of investment expenses 5.20% 5.20%
Expected return on plan assets N/A N/A
Inflation rate (short-term) 2.50% 2.50%
Inflation rate (long-term) 2.50% 2.50%
Cost-of-living increases 2% per year 5% per year
Actuarial cost method Entry age normal Entry age normal Salary increases N/A N/A
128
1000
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. DEFINED BENEFIT PEN SION PLANS, Continued
B. Other City Pension Plans, Continued
IV. Changes in the Net Pension Liability of Each Plan
The net pension liability of each Plan is measured as of June 30, 2025 as follows:

Police and Firemen's Plan:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2024 5,494,894$ -$ 5,494,894$ Changes in the year:

Interest on the total pension liability 206,468 - 206,468 Differences between actual and expected experience (1,744,085) - (1,744,085) Changes in assumptions Changes in benefit terms (174,378) - (174,378) Contribution - City - - - Contribution - employer - 594,134 (594,134) Contribution - employees - - - Net investment income - - - Other deductions - - - Benefit payments, including member contribution refunds (594,134) (594,134) - Net changes (2,306,129) - (2,306,129) Balance at June 30, 2025 3,188,765$ -$ 3,188,765$ Plan fiduciary net position as a percentage of the total pension liability 0.00% General Pension Plan:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2024 358,539$ -$ 358,539$ Changes in the year:

Interest on the total pension liability 9,952 - 9,952 Differences between actual and expected experience 622,841 - 622,841 Changes in assumptions Changes in benefit terms (27,387) - (27,387) Contribution - City - - - Contribution - employer - 217,862 (217,862) Contribution - employees - - - Net investment income - - - Benefit payments, including refunds of employee contributions (217,862) (217,862) - Net changes 387,544 - 387,544 Balance at June 30, 2025 746,083$ -$ 746,083$ Plan fid
uciary net position as a percentage of the total pension liability 0.00% Increase (Decrease)
Increase (Decrease)
129
1001
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. DEFINED BENEFIT PEN SION PLANS, Continued
B. Other City Pension Plans, Continued
IV. Changes in the Net Pension Liability of Each Plan, Continued Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net pension liability of the City for each of the Plans, calculated using the discount rate as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate:

V. Actuarially Determined Contributions
As of the June 30, 2025, actuarial valuations used to calculate the actuarially determined contributions (ADC) for each Plan, the ADC’s were determined using the entry-age normal cost method and the assumptions in Note 12B above.

For the Police and Firemen’s Pension Plan, the City’s contribution policy is to annually contribute an amount equal to (1) amortization of the unfunded liability as a level-dollar over a 10-year closed period as of July 1, 2013, plus (2) future gains and losses amortized over the same period, but not less than five years. Over the past five years, the City has contributed an average of 100% of the Actuarially Determined Contribution.

For the General Pension Plan, the City’s contribution policy is to annually contribute an amount equal to (1) amortization of the unfunded liability as a level-dollar over a 6-year closed period as of July 1, 2013, plus (2) future gains and losses amortized over the same period, but not less than five years. Over the past five years, the City has contributed an average of 102% of the Actuarially Determined Contribution.

The Actuarially Determined Contribution and the actu al contributions for each Plan for the year ended June 30, 2025 are presented below:

Police and General
Firemen's Plan Pension Plan
1% Decrease 4.20% 4.20%
Net Pension Liability (Asset) 3,329,187$ 768,191$ Current Discount Rate 5.20% 5.20%
Net Pension Liability (Asset) 3,188,765$ 746,083$ 1% Increase 6.20% 6.20%
Net Pension Liability (Asset) 3,059,164$ 725,255$ Actuarially
Determined Amount Percent
Contribution Contributed Contributed
Police and Firemen's Pension Plan - $ - $ n/a General Pension Plan - - n/a 130
1002
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. DEFINED BENEFIT PEN SION PLANS, Continued
B. Other City Pension Plans, Continued
VI. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2025, the City recognized pension expense (income) for each of the Plans as follows:

VII. PARS Defined Contribution Plan
Effective July 1, 2014, the City contracted with the Public Agency Retirement System (PARS), to sponsor a Section PARS 457 FICA Alternative Retirement Pl an created in accordance with IRC Sections 3121(b) (7) (F) and 457(b), which is a qualified defined contribu tion pension plan covering all eligible part-time, seasonal and temporary employees of the City on that date and hired thereafter.

The Plan requires these employees to contribute 6.2% and the City to contribute 1.3% of the employees pay plus administration costs. The City’s required contributions of $38,369 and the employees’ required contributions of $182,991 were made during the fiscal year ended June 30, 2025.

Pension Expense (Income)
Police and Firemen's Plan (1,711,995)$
General Pension Plan 605,402
Total (1,106,593)$
131
1003
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

13. ASSETS SET ASIDE FOR POLICE AND FIREMEN’S PENSION PLANS At June 30, 2025 the assets the City set aside to pay for the pension benefits as shown below. The value of the assets were valued at fair value. Those assets are not in an irrevocable trust thus not considered as part of the net pension liabilities balances of the pension plans.

Investment Policies
The General Pension and Police and Firemen’s Pension Plans’ policies in regard to the allocation of invested assets is established by the City Charter and may be amended by Resolution of the respective Boards. The Plans allow investments in the following:
(a) In investments which are authorized by General law for savings banks. (b) In investments other than those specified in subd ivision (a) hereof, including, but not limited to, corporate bonds and securities, common stocks, pref erred stocks, investments in real estate and investment trusts, provided that the total amount invested pursuant to this subdivision shall not exceed 50% of the total amount of funds invested pursuant to this section, and provided further that the following conditions are met:
(1) Any stocks or other corporate securities, in wh ich funds are invested, except stocks of banks, insurance companies or mutual funds, shall be re gistered on a national securities exchange as provided by the Federal Securities Exchange Act.
(2) The total amount invested in common and preferred stocks shall not exceed at cost at the time of purchase 25% of the total amount invested pursuant to this section. (3) The total amount invested in the common and preferred stocks of any one company shall not exceed at cost of the time of purchase 2% of the total amount invested pursuant to this section and shall not exceed 5% of the outstanding preferred or common stock of that company. (4) No funds shall be invested in the common stocks of any company unless it has paid cash dividends on such stocks in eight of the ten years immediately preceding its purchase by the Board. (5) No funds shall be invested in the stocks or ot her securities of any company other than a bank or insurance company unless it has assets of at least one hundred million dollars ($100,000,000), or in the stocks or other securities of a b ank or insurance company unless it has assets of at least fifty million dollars ($50,000,000).
(6) The total amount invested in real estate and other than real estate owned by or leased to the City of Richmond, which amount may include land, buildings, land and buildings or real estate loans, shall not exceed 25% of the total amount invested pursuant to this section and such investments shall be restricted to first trust deeds which are insured by the Federal Housing Administration or which are guaranteed by the Veterans Administration.

City of Richmond Investment Pool 788,502$
Wellington Trust Company Mutual Fund (Police and Firemen’s Plan) 10,636,777 Interest receivable 1,898
Assets available for benefits at June 30, 2025 11,427,177$ 132
1004
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. OTHER POSTEMPLOYMENT BENEFITS
The following is a summary of the City’s OPEB amounts for the year ended June 30, 2025:

A. General Information about the City’s Other Post Employment Benefit (OPEB) Plans Plan Description - In order to qualify for postemployment medical and dental benefits an employee must retire from the City and maintain enrollment in one of the City’s eligible health plans. The City pays a portion of the CalPERS premiums for retirees an d their dependents that vary by employment classification. In addition, the following eligibility rules and contribution requirements apply for future retirees, followed by current retirees. The City has two plans:

City OPEB Plan
The City is the Plan administrator, while PARS admi nisters the investment trust. The City OPEB Plan does not issue separate financial statements. PARS issues a publicly available financial report that includes financial statements and required suppleme ntary information. That report may be obtained from Public Agency Retirement Services, 4350 Von Karman Avenue, Suite 100, Newport Beach, CA, 92660.

RPOA OPEB Plan
The City of Richmond’s Police Officers Association (RPOA) Plan was established during fiscal year 2019 and the RPOA OPEB Plan joined the California Employ ers’ Retiree Benefit Trust (CERBT), an agent multiple-employer plan administered by CALPERS, consisting of an aggregation of single- employer plans. RPOA members who were actively employed as of January 1, 2017 transferred from the City OPEB Plan to the RPOA OPEB Plan. The CERBT issues a pu blicly available financial report that includes financial statements and required supplementary info rmation. That report may be obtained from the California Public Employees’ Retirement System, CERBT, P.O. Box 942703, Sacramento, CA 94229-2703.

Deferred Net Deferred
Outflow of OPEB Inflow of OPEB
Resources Liability Resources Expense (Income)
City OPEB Plan 30,194$ 49,823,418$ 6,205,992$ (990,655)$ RPOA OPEB Plan 691,068 3,385,569 12,208,260 (1,328,138) 721,262$ 53,208,987$ 18,414,252$ (2,318,793)$ 133
1005
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. OTHER POSTEMPLOYMENT BENEFITS, Continued
A. General Information about the City’s Other Po st Employment Benefit (OPEB) Plans, Continued A summary of the City OPEB Plan provisions follows:

Classification Eligibility (Age / Service Years)
Monthly Premium Paid by City Before/After Medicare
Eligibility
Employee Monthly
Contribution (1)
SEIU Local 1021 Service Retirement:
50/20, 51/18, 52/16, 53/14,
54/12, 55/10
Disability Retirement: any
age/10 years service
Retiree only or surviving spouse: the lesser of $435 and medical premium Retiree +1 or more: the lesser of $567
and medical premium
Plus PEMHCA Minimum
Retired on or after 7/1/1995: Reimbursement allowed
towards non-PERS plans
None
IFPTE, Miscellaneous Executive
Management, City Council
Service Retirement: Same as
SEIU
Retiree only or surviving spouse: the lesser of $435 and medical premium Retiree +1 or more: the lesser of $567
and medical premium
Plus PEMHCA Minimum
Effective 1/1/2017: $50
Effective 1/1/2018: $100
Fire Local 188 35/15 Percentage of premium (medical premium minus PEMHCA minimum) for retiree / dependents/survivin
g
spouse up to premium for coverage. Percentage is 80%,
increased to 90% after 15 years of service and 100% after 25 years of service. Total City contribution, excluding PEMHCA minimum, is capped at Kaiser non- Medicare
eligible premium for coverage selected.

Plus PEMHCA minimum
Effective 1/1/2017: $200
Effective 1/1/2018: $300
Effective 7/1/2019: $400
Fire Management and Fire
Executive Management
35/15 Percentage of premium (medical premium minus
PEMHCA minimum) for retiree/dependents/surviving
spouse up to premium for coverage. Percentage is 80%,
increased to 90% after 15 years of service and 100% after 25 years of service. Total City contribution, excluding PEMHCA minimum, is capped at Kaiser non-Medicare
eligible premium for coverage selected.

Plus PEMHCA minimum
Effective 1/1/2017: $200
Effective 1/1/2018: $300
Effective 7/1/2019: $400
Police Widows Death in line of duty Full premium of medical, dental and vision None Police Management and Police
Executive Management
50/20, 51/18, 52/16, 53/14,
54/12, 55/10
Service includes non City
service Minimum 5 years City
Service
Percentage of premium (medical premium minus
PEMHCA minimum) for retiree/dependents/surviving
spouse up to Kaiser (1) (Pre Medicare) and 2nd highest
premium plan (post Medicare). Percentage is 65% after
10 years of service, increased to 75% after 20 years of service, and 100% after 25 years of service.

Effective 7/1/2017: $300
Effective 7/1/2018: $425
Effective 7/1/2019: $525
134
1006
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. OTHER POSTEMPLOYMENT BENEFITS, Continued
A. General Information about the City’s Other Po st Employment Benefit (OPEB) Plans, Continued

Classification Subgroup
Retired July 1, 2007 or later
Retired prior to July 1, 2007
Retired July 1, 2007 or later
Retired November 5, 1999 to June
30, 2007
Retired before November 5, 1999
Fire Local 188
Fire Management Retire on or after 7/1/2006
Retire before 7/1/2006
Same as future retirees
Same as future retirees
Eligible at 35/15
Same as future retirees, but caps are:

Percentage of premium for retiree/dependents/surviving spouse up to Kaiser non- Medicare eligible premium for coverage selected. Percentage is 90%, increased to 100% after 27 years of service.

Plan Provisions for Current Retirees
SEIU Local 1021
IFPTE, Miscellaneous Executive
Management
Monthly Premium Reimbursement Before/After Medicare Eligibility Same as future retirees
Same as future retirees, but caps are:

Retiree only or surviving spouse: $224/$182
Retiree +1 or more: $344/$284
Same as future retirees
Same as future retirees, but caps are:

Retiree only or surviving spouse: $224/$182
Retiree +1 or more: $344/$284
Same as future retirees, but caps are:

Retiree only or surviving spouse: $124/$82
Retiree +1 or more: $244/$184
135
1007
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. OTHER POSTEMPLOYMENT BENEFITS, Continued
A. General Information about the City’s Other Po st Employment Benefit (OPEB) Plans, Continued

Classification Subgroup
Retire on or after 1/17/2017
Retire on or after 7/1/2008 but
before 1/1/2017
Retired between 7/1/2004 and
6/30/2008
Retired between 7/1/1997 and
6/30/2004
Retired between 7/1/1994 and
6/30/1997
Retired before 7/1/1994 Percentage of premium (medical premium minus PEMHCA minimum) for retiree/dependents/surviving spouse including dental and vision. Percentage is 65% for 10-19 years of service, increased to 75% after 20 years of service, and 100% after 27 years of service
Reimbursement, excluding the PEMHCA minimum, capped at $210 for single coverage and $300 for 2-party coverage
Premium paid for dental and vision.

Plus PEMHCA minimum
Plan Provisions for Current Retirees (Continued)
Monthly Premium Reimbursement Before/After Medicare Eligibility Lesser of: percentage of premium for retiree/dependents/surviving spouse times medical, dental, and vision premium or percentage of premium for retiree/dependents/surviving spouse but no more than $827 per month, minus dental and vision premiums. Percentage is 50% after 10 years of service, increased to 90% after 15 years of service, and 100% after 25 years of service PEMHCA minimum
Lesser of: percentage of premium for retiree/dependents/surviving spouse times medical premium or percentage of premium for retiree/dependents/surviving spouse but no more than $827 per month, minus dental and vision premiums.

Percentage is 50% after 10 years of service, increased to 90% after 15 years of service, and 100% after 25 years of service
City also pays PEMHCA minimum.

Reimbursement capped at $614.

Lesser of: percentage of premium for retiree/dependents/surviving spouse times medical premium minus PEMHCA minimum or percentage of premium for retiree/dependents/surviving spouse but no more than $827 per month, minus dental and vision premiums. Percentage is 50% after 10 years of service, increased to 90% after 15 years of service, and 100% after 25 years of service Plus PEMHCA Minimum: $136
City also pays PEMHCA minimum.

Reimbursement capped at $550.

Percentage of premium (medical premium minus PEMHCA minimum) for retiree/dependents/surviving spouse including dental and vision. Percentage is 65% for 10-19 years of service, increased to 75% after 20 years of service, and 100% after 27 years of service
Premium paid for dental and vision.

Plus PEMHCA minimum
Richmond Police Officer
Association (RPOA)
Percent of: medical premium minus PEMHCA minimum or (percent of cap) minus dental and vision premiums but no more than $827 per month, minus dental and vision premiums. Percentage is 50% after 10 years of service, increased to 90% after 15 years of service, and 100% after 25 years of service PEMHCA minimum
136
1008
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. OTHER POSTEMPLOYMENT BENEFITS, Continued
A. General Information about the City’s Other Po st Employment Benefit (OPEB) Plans, Continued

A summary of the RPOA OPEB Plan provisions follows:

Classification Subgroup
Retired on or after 7/1/2008
Retired between 1/1/1995 (1) and
6/30/2008
Plan Provisions for Current Retirees (Continued)
1) The City did provide medical premium benefits with single and 2-party caps for Police Management that retired prior to Janua ry 1, 1995, and as of June 30, 2025 there were two retirees receiving such benefits
Police Management and Police
Executive Management
Monthly Premium Reimbursement Before/After Medicare Eligibility Same as future retirees
Percentage of premium (medical premium minus PEMHCA minimum) for retiree/dependents/surviving spouse. Percentage is 65% for 10-19 years of service, increased to 75% after 20 years of service, and 100% after 27 years of service.

Retired after 1/1/2007 - Reimbursement capped at Kaiser premium, excluding the PEMHCA minimum, for pre-Medicare and 2nd highest premium plan for post- Medicare for coverage selected
Retired on or before 1/1/2007 - Reimbursement capped at 2nd highest premium plan, excluding the PEMHCA minimum, for coverage selected
Retired on or after 7/1/1995: Reimbursement allowed towards non-PERS plans NOTE: PEMHCA is billed to employers for all CalPERS medical plans. If a member is not enrolled in a PERS plan the employer is not billed.

Classification Eligibility (Age/Service Years)
Monthly Premium Paid by City Before/After Medicare
Eligibility
Employee Monthly
Contributions
Richmond Police Officer Association
(RPOA)
10 years of service
Service includes non City service
Minimum 5 years City service
Lesser of: percentage of premium for
retiree/dependents/surviving spouse times medical
premium or percentage of premium for
retiree/dependents/surviving spouse but no more than
$827 per month, minus dental and vision premiums.

Percentage is 50% after 10 years of service, increased to 90% after 15 years of service, and 100% after 25 years of service
Employer pays PEMHCA Minimum.

Effective 1/1/2017: $150
Effective 1/1/2018: $225
Effective 1/1/2019: $250
Effective 1/1/2020: $275
Effective 1/1/2021 $300
Classification Eligibility (Age/Service Years)
Richmond Police Officer Association
(RPOA)
Retired January 1, 2017 or later
Plan Provisions for Future Retirees
Monthly Premium Paid by City Before/After Medicare Eligibility Lesser of: percentage of premium for retiree/dependents/surviving spouse times medical premium or percentage of premium for retiree/dependents/surviving spouse but no more than $827 per month, minus dental and vision premiums. Percentage is 50% after 10 years of service, increased to 90% after 15 years of service, and 100% after 25 years of service
Employer pays PEMHCA Minimum.

Plan Provisions for Current Retirees
137
1009
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. OTHER POSTEMPLOYMENT BENEFITS, Continued
A. General Information about the City’s Other Po st Employment Benefit (OPEB) Plans, Continued For retirees eligible to continue health benefits, but failing to meet the criterion in the tables above, the City pays the Public Employees Medical and Hospital Care Act (PEMHCA) minimum, which is $158 in 2024.

City OPEB Plan Membership – As described above, Plan membership varies based on different employee bargaining groups. As of the June 30, 2023 valuation date, membership in the City OPEB Plan consisted of the following:

RPOA Plan Membership – As of the June 30, 2023 valuation date, membership in the RPOA OPEB Plan consisted of the following:

B. Funding Policy and Actuarial Assumptions
City OPEB Plan
Funding Policy – During the year ended June 30, 200 8, the City joined the Public Agencies Post- Retirement Health Care Defined Benefit Plan, an agen t multiple employer trust administered by Public Agency Retirement Services (PARS). The balance in the City’s PARS trust account as of June 30, 2025 was $56,551,061.

The City’s policy is to partially prefund these benefits by accumulating assets with PARS discussed above along with making pay-as-you-go payments pursuant to Resolution No. 52-06 of June 27, 2006. In July 2016, the City adopted its initial funding policy that requires the City to contribute 50% of year-end General Fund surplus in excess of th e City’s minimum required reserve level into the PARS account. In an effort to pay down the unfunded liability, in J anuary 2022, the City adopte d an additional funding policy that required the City to contribute 50% of any one-time General Fund revenues. Per the adopted policy, the City made a onetime contribution from FY2022 year surplus into the PARS account totaling $5,309,139 in Fiscal Year 2023. In June 2023, th e City updated the funding policy for additional contributions. Per the current policy the City shall place 10% of year-end operating surplus in the General Fund in excess of the City’s minimum required reserve level into the Trust accounts.

Active employees electing coverage 472
Active employees waiving coverage 48
Retirees and beneficiaries receiving benefits 636
Retirees with only non-medical OPEB coverage 9
Total 1,165
Active employees electing coverage 96
Active employees waiving coverage 4
Retirees and beneficiaries receiving benefits 33
Retirees with only non-medical OPEB coverage 4
Total 137
138
1010
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. OTHER POSTEMPLOYMENT BENEFITS, Continued
B. Funding Policy and Actuarial Assumptions, Continued
RPOA OPEB Plan
A new Richmond Police Officers Association (RPOA) contract was implemented on January 17, 2017.

The new RPOA plan includes members who were actively employed as of the January 17, 2017 contract date. The RPOA members were transferred from th e OPEB Plan to the new RPOA OPEB Plan during fiscal year 2025.

Funding Policy – The RPOA plan has assets designated for OPEB. These assets are invested in California Employers' Retiree Benefit Trust (CERBT) Strategy 2, which is a qualified irrevocable trust. Contributions to the CERBT account fall under the same policy as stated under the City OPEB plan. Per the surplus contribution policy, the City made a one-time contribution from the FY2022 year surplus into the CERBT account totaling $793,320 in FY2023. Benefit payments are not expected to be made from the trust in the near future. The City currently pays the annual retiree benefit payments using its general assets plus the annual active member contributions.

The balance in the CERBT trust account was $13,832,777 as of June 30, 2025.

Actuarial Assumptions – The total OPEB liability for each plan wa s determined by an actuarial valuation as of June 30, 2023 using standard update procedures. The City OPEB plan valuation used the following actuarial assumptions applied to all periods included in the measurement, unless otherwise specified:

Actuarial Assumptions
Valuation Date June 30, 2023
Measurement Date June 30, 2025
Actuarial Cost Method Entry Age Normal Cost, level percent of pay Actuarial Assumptions:

Discount Rate 6.50%
Inflation 2.50%
CPI Medical Care 3.50%
Payroll Growth 3.00%
Investment Rate of Return 6.50%
Mortality Based on assumptions for Public A gency Miscellaneous, Police and Fire members published in the 2021 CalPERS Experience Study.

Healthcare Cost Trend Rates:

Health - Not Medicare Eligible 6.90% for FY2025,
gradually decreasing over several decades to an ultimate rate of 3.90% in FY2076 and later years
Health - Medicare Eligible 5.10% for 2020, 5.10% for 2021, 4.70% for 2022, 4.70% for 2023, 5.10% for 2024,

5.10% for 2025, 5.00% for 2026-2027, 4.9% for 2028-2034 and tranitionin g to ultimate rate of 3.90% in 2076 and further years
Dental To increase 3.25% annually
Vision To increase 2.00% annually
139
1011
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. OTHER POSTEMPLOYMENT BENEFITS, Continued
B. Funding Policy and Actuarial Assumptions, Continued
The RPOA OPEB Plan valuation used the following actuarial assumptions applied to all periods included in the measurement, unless otherwise specified:

Discount rate – The discount rate used to measure the to tal City OPEB liability was 6.50% for the City OPEB Plan and 6.10% for the RPOA OPEB Plan. The proj ection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the City OPEB 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 City OPEB plan investments was applied to all periods of projected benefit payments to determine the total City OPEB liability.

Generally accepted accounting principles require that the liability discount rate be the single rate that reflects the following:

A. The long-term expected rate of return on City OPEB plan investments that are expected to be used to finance the payment of benefits, to the extent that (1) the City OPEB plan’s fiduciary net position is projected to be sufficient to make projected benefit payments and (2) City OPEB plan assets are expected to be invested using a strategy to achieve that return; and Actuarial Assumptions
Valuation Date June 30, 2023
Measurement Date June 30, 2025
Actuarial Cost Method Entry Age Normal Cost, level percent of pay Actuarial Assumptions:

Discount Rate 6.10%
Inflation 2.30%
CPI Medical Care 3.50%
Payroll Growth 3.00%
Investment Rate of Return 6.10%
Mortality Based on assumptions for Public Agency Miscellaneous, Police and Fire members published in the 2021 CalPERS Experience Stud y.

Healthcare Cost Trend Rates:

Health - Not Medicare Eligible 6.90% for FY2025, gradually decreasing over several decades to an ultimate rate of 3.90% in FY2076 and later years
Health - Medicare Eligible 5.10% for 2020, 5.10% for 2021, 4.70% for 2022, 4.70% for 2023, 5.10% for 2024,

5.10% for 2025, 5.00% for 2026-2027, 4.9% for 2028-2034 and tranitionin g to ultimate rate of 3.90% in 2076 and further years
Dental To increase 3.25% annually
Vision To increase 2.00% annually
140
1012
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. OTHER POSTEMPLOYMENT BENEFITS, Continued
B. Funding Policy and Actuarial Assumptions, Continued
B. A yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher (or equivalent quality on another rating scale), to the extent that the conditions in A. are not met. The municipal bond rate source used as of June 30, 2023 the Fidelity 20-Year General Obligation AA Municipal Bond Index.

Changes of assumptions since the prior actuarial valuation for the City OPEB Plan were:
 The long-term investment return assumption was changed from 6.25% to 6.50% based on updated capital market assumptions.
 The discount rate was changed from 6.25% to 6.50% based on updated expectations of long-term returns on trust assets and 20-year municipal bond rates.  The Healthcare Cost Trend Rates were changed fr om 6.70 to 6.50% and the ultimate rate from

3.9% to 3.9%
City OPEB Plan
Rate of Return – For the year ended June 30, 2025, the annual money-weighted rate of return on City OPEB Trust Fund investments, net of City OPEB plan investment expense, for the City OPEB Plan was 13.18%.

The money weighted rate of return expresses inve stment performance, net of investment expense, adjusted for the changing amounts actually invested.

Investment Policy – PARS offers different investment portfolios as part of the investment vehicle. The City invests in the “Balanced/Moderately Aggressive Hig hmark PLUS” portfolio; the primary goal of the Highmark Plus portfolio is growth of principal and income. The major portions of the assets are invested in the equity securities and market fluctuations are expected. The portfolio is constructed to control risk through three layers of diversification as follows:

Investments of the City OPEB Trust Fund at June 30, 2025 consisted of $56,551,061 invested in mutual funds.

Acceptable Range of
Asset Class Asset Allocation
Equity 50-70%
Fixed income 30-50%
Cash 0-20%
141
1013
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. OTHER POSTEMPLOYMENT BENEFITS, Continued
B. Funding Policy and Actuarial Assumptions, Continued
The long-term expected rate of return on City OPEB Plan investments was determined using a building- block method in which best-estimates of expected future real rates of return (expected returns, net of City OPEB Plan investment expense and inflation) are developed for each major asset class. The weighted asset class estimates are combined with the inflat ion and investment expense assumptions to produce the portfolio long-term expected rate of return. The target allocation for the City OPEB Plan’s asset allocation as of the measurement date are summarized in the following table:

RPOA OPEB Plan
Rate of Return – The long-term expected rate of return on RPOA OPEB Plan investments was determined using a building-block method in which best-estimates of expected future real rates of return (expected returns, net of RPOA OPEB Plan investment expense and inflation) are developed for each major asset class. The weighted asset class estimates are combined with the inflation and investment expense assumptions to produce the portfolio long-term expected rate of return.

Investment Policy – The target allocation for the RPOA OPEB Plan’s asset allocation as of the measurement date are summarized in the following table:

Long-Term
Expected Real
Asset Class Target Allocation Rate of Return
US equity-large cap 34.20% 7.50%
US equity-small cap 1.80% 8.60%
International development 13.50% 7.10%
Emerging market equity 4.50% 7.40%
REITs 3.00% 7.00%
Listed Infrastructure 3.00% 6.80%
Core Bonds 35.00% 4.70%
High yield bond 3.00% 6.80%
Cash and equivalents 2.00% 2.70%
Total 100.00%
Long-Term
Expected Real
Asset Class Target Allocation Rate of Return
Equity 34.0% 6.80%
Fixed Income 41.0% 3.70%
TIPS 5.0% 2.80%
Commodities 3.0% 3.40%
REITs 17.0% 6.00%
Total 100.0%
142
1014
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. OTHER POSTEMPLOYMENT BENEFITS, Continued
C. Changes in Net OPEB Liability
The changes in the net OPEB liability for the City OPEB Plan is as follows:

Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (a) - (b)
Balance at June 30, 2024 108,528,667 $ 49,695,446 $ 58,833,221 $ Changes Recognized for the Measurement Period:

Service Cost 1,955,691 - 1,955,691 Interest on the total OPEB liability 6, 668,378 - 6,668,378 Changes of assumptions (3,080,959) - (3,080,959) Contributions from the employer - 8,766,569 (8,766,569) Contributions from the employee - 674,725 (674,725) Net investment income - 5,199,338 (5,199,338) Administrative expenses - (87,719) 87,719 Benefit payments (1) (7,697,298) (7,697,298) - Net changes (2,154,188) 6,855,615 (9,009,803) Balance at June 30, 2025 (Measurement Date) 106,374,479$ 56,551,061 $ 49,823,418 $ (1) Benefit payments equal $5,163,208 explicit subsid y payments to retirees and $2,534,090 implicit subsid y costs incurred during the measurement period ending 6/30/2025. 143
1015
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. OTHER POSTEMPLOYMENT BENEFITS, Continued
C. Changes in Net OPEB Liability, Continued
The changes in the net OPEB liability for the RPOA OPEB Plan is as follows:

D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates The following presents the net OPEB liability of both plans, as well as what the net OPEB liabilities would be if it were calculated using the discount rate that is 1-percentage-point lower or 1-percentage point higher than the current discount rate:

Increase (Decrease)
Total OPEB Plan Fiduciary Net Position
Liability Net OPEB Liability/(Asset)
(a) (b) (a) - (b)
Balance at June 30, 2024 16,491,976$ 11,881,174$ 4,610,802$ Changes Recognized for the Measurement Period:

Service Cost 603,565 - 603,565 Interest on the total OPEB liability 973,105 - 973,105 Changes of assumptions (804,065) - (804,065) Contributions from the employer - 351,898 (351,898) Contributions from the employee - 356,850 (356,850) Net investment income - 1,293,209 (1,293,209) Benefit payments (1) (348,849) (348,849) - Administrative expense - (4,119) 4,119 Net changes 423,756 1,648,989 (1,225,233) Balance at June 30, 2025 (Measurement Date) 16,915,732$ 13,530,163$ 3,385,569$ (1) Benefit payments equal $349,744 explicit subsidy payments to retirees and $(895) implicit subsidy costs incurred during the measurement period ending 6/30/2024.

City OPEB Plan
Current
Discount Rate -1% Discount Rate Discount Rate +1%

5.50% 6.50% 7.50%
62,569,905$ 49,823,418 $ 39,263,123 $ RPOA OPEB Plan
Current
Discount Rate -1% Discount Rate Discount Rate +1%

5.10% 6.10% 7.10%
5,791,084$ 3,385,569 $ 1,424,805 $ Net OPEB Liability/(Asset)
Net OPEB Liability/(Asset)
144
1016
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. OTHER POSTEMPLOYMENT BENEFITS, Continued
D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates, Continued
The following presents the net OPEB liability of both Plans, as well as what the net OPEB liabilities would be if it were calculated using healthcare cost tr end rates that are 1-percentage-point lower or 1- percentage-point higher than the current healthcare cost trend rates:

E. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2025, the City recognized OPEB expense (income) on the City OPEB Plan and RPOA OPEB Plan of ($990,655) and ($1,328,138), respectively. At June 30, 2025, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:

City OPEB Plan
Current Healthcare Cost
Trend Rates Various -
1% Decrease see assumptions above 1% Increase
40,290,191$ 49,823,418 $ 61,504,792 $ RPOA OPEB Plan
Current Healthcare Cost
Trend Rates Various -
1% Decrease see assumptions above 1% Increase
2,113,131$ 3,385,569 $ 4,983,115 $ Net OPEB Liability/(Asset)
Net OPEB Liability/(Asset) Healthcare Cost Trend
Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows of Resources of Resources of Resources of Resources Differences between actual and expected
experience 30,194$ 707,216$ 42,597$ 6,022,646$ Changes of assumptions - 2,938,452 648,471 5,842,245 Net differences between projected and
actual earnings on plan investments - 2,560,324 - 343,369 Total 30,194$ 6,205,992$ 691,068$ 12,208,260$ City OPEB Plan RPOA OPEB Plan
145
1017
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. OTHER POSTEMPLOYMENT BENEFITS, Continued
E. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB, Continued Amounts reported as deferred outflows of resources and deferred inflows of resources related to the City OPEB Plan and RPOA OPEB Plan will be recognized as part of OPEB expense as follows:

15. DEFERRED COMPENSATION PLAN

City employees may defer a portion of their compensa tion under a City sponsored deferred compensation plan created in accordance with Internal Revenue Code Section 457. Under this plan, participants’ contributions are made as pre-tax de ductions and are not subject to taxa tion until the funds are distributed to them. Distributions may be made only at termination, retirement, death or in an emergency as defined by the plan.

The laws governing deferred compensati on plan assets require plan assets to be held by a Trust for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under this plan are not the City’s property and are not subject to claims by general creditors of the City, they have been excluded from these financial statements.

City OPEB Plan
Year Annual
Ended June 30, Amortization
2025 (1,666,267) $
2026 (2,004,746)
2027 (1,753,980)
2028 (750,805)
Total (6,175,798) $
RPOA OPEB Plan
Year Annual
Ended June 30, Amortization
2025 (1,730,130) $
2026 (1,969,237)
2027 (1,999,411)
2028 (1,945,124)
2029 (1,818,820)
Thereafter (2,054,470)
Total (11,517,192)$
146
1018
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

16. RISK MANAGEMENT

The City is exposed to various risks of loss related to theft of, damage to, and destruction of assets; general liability; errors and omissions; injuries to employees; natural disasters; and inverse condemnation. The City began self-insuring its workers’ compensation in 1976. In July 2009 the City joined the California Joint Powers Risk Management Authority (CJPRMA) for general liability and employment practices coverage. In April 2009 the City joined the California State Association of Counties Excess Insurance Authority (CSAC EIA) for worker’s compensation insurance. The City has chosen to establish a risk financ ing internal service fund where assets are accumulated for claim settlements and expenses associated with the above risks of loss up to certain limits.

Excess coverage for the risk categories excluding inverse condemnation is provided by policies with various commercial insurance carriers. Self-insurance and insurance company limits are as follows:

CJPRMA
The CJPRMA provides coverage against the following types of loss risks under the terms of a joint powers agreement with the City as follows:

Once the self-insured retention is exhausted on each claim, CJPRMA becomes responsible for payment of future expenses related to the claim. The City paid co ntributions of $4,147,823 for the year ended June 30, 2024. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating.

Audited financial statements for the CJPRMA are available from CJPRMA, 3201 Doolan Road, Suite 285, Livermore, CA 94551.

Type of Coverage Self-Insurance / Deductible Coverage Limit Insurance Carrier Difference in Conditions Earthquake: 5% of total insured value of each building; minimum $100,000
All others: $25,000
$50,000,000 inclusive of deductible Various
Crime / Employee Dishonesty $2,500 per claim $20,000,000 inclusive of deductible National Union Fire Insurance Company Property $100,000 per claim; except flood zones
A&V that have a deductible of $250,000
$400,000,000 inclusive of deductible $100,000,000 limit for flood all zones, except zones A & V, which have a limit of $50,000,000
Various
Boiler and Machinery $100,000 per claim $100,000,000 inclusive of deductible Travelers Property Casualty Company Port Liability $25,000 per claim $50,000,000 inclusive of deductible Various Aircraft (Drones) N/A Per schedule on file with the Company Starr Indemnity & Liability Co.

Excess Workers' Compensation $750,000 per claim $50,000,000 limit Various Student Volunteer N/A $50,000 limit Ace American
Pollution Liability - Policy 1 $250,000 per claim $20,000,000 inclusive of deductible Ascot Specialty Pollution Liability - Policy 2 $250,000 per claim $3,000,000 limit Ironshore Specialty Insurance Cyber Liability $100,000 per claim $2,000,000 limit Lloyds of London Terrorism $25,000 per claim $100,000,000 per occurrence Lloyd's of London Active Shooter (Alliant Deadly Weapon Program) $10,000 per claim $2,500,000 limit Lloyd's of London Excess Liability N/A $40,000,000 excess of $7,500,000 SIR Various Auto Physical Damage (APD) and Contractors Equipment N/A $10,000,000 Catastro phy Limit for loss per occurrence Hanover Ins. Co.

Watercraft $1,000 per claim $500,000 inclusive of deductible Various Type of Coverage (Deductible) Coverage Limits
Property ($750,000) 50,000,000 $
Liability ($750,000) 40,000,000
Employment Practices ($750,000) 5,000,000
147
1019
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

16. RISK MANAGEMENT, Continued

CSAC-EIA
C S A C - E I A i s a p u b l i c e n t i t y r i s k p o o l o f c i t i e s a n d c o u n t i e s w i t h i n C a l i f o r n i a . T h e C S A C - E I A p r o v i d e s workers’ compensation coverage up to the statutory limit and the City retains a self-insured retention of $750,000. Loss contingency reserves established by the CSAC-EIA are funded by contributions from member agencies. The City pays an annual contribution to the CSAC-EIA, which includes its pro-rata share of excess insurance premiums, charges for pooled risk, claims adjusting and legal costs, and administrative and other costs to operate the risk pool. The City paid contributions of $719,795 for the year ended June 30, 2025. CSAC- EIA provides insurance through the pool up to a ce rtain level, beyond which group purchased commercial excess insurance is obtained. CSAC-EIA is currently fully funded. No provision has been made on these financial statements for liabilities related to possible additional assessments.

Audited financial statements for CSAC-EIA are availa ble from CSAC-EIA, 75 Iron Point Circle, Suite 200, Folsom, CA 95630.

Housing Authority Insurance Group
The Housing Authority is exposed to various risks of loss related to torts: theft, damage, and destruction of assets; errors and omissions; injuries to employees an d natural disaster. The Authority joined together with other entities and participates in the Housing Authority Insurance Group, a public entity risk pool currently operating as a common risk management and insurance program for its member entities. The purpose of the Housing Authority Insurance Group is to spread the adverse effects of losses among the member entities and to purchase excess insurance as a group, thereby reducing its cost.

The Authority pays annual premiums to Housing Au thority Insurance Group for its property damage insurance as follows:

All of the Housing Authority properties are included in the general liability co verage under the CJPRMA program.

Liability for Self-Insured Claims
The City records a liability to reflect an actuarial esti mate of ultimate uninsured losses for both general liability claims (including property damage claims) and workers’ compensation claims. The estimated liability for workers’ compensation claims and general liability claims is based on case reserves and include amounts for claims incurred but not reported (IBNR), and is recorded in the Insurance Reserves Internal Service Fund. At June 30, 2025, the estimated claims payable of $58,104,642 consisting of reserves for both reported and IBNR losses, as well as allocated loss adjustment expenses, have been recorded in the Insurance Reserves Internal Service Fund. The claims payable are reported at their present value using expected future investment yield assumptions of 3% and an 80% co nfidence level. The undiscounted claims totaled $49,666,104 at June 30, 2025. Changes in the claims liabilities for the years ended June 30, 2025 and 2024 were as follows:

Property Annual Premium Deductible
Nystrom Village 46,074$ 25,000$
148
1020
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

16. RISK MANAGEMENT, Continued

For the years ended June 30, 2025, 2024 and 2023 the amount of settlements did not exceed insurance coverage.

17. SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The City’s non-major enterprise funds include the following:
 Richmond Marina Fund – Marina operations and ma intenance, including berth rentals and use of marina facilities.
 Storm Sewer Fund – Storm sewer management and urban runoff control.  Cable TV Fund – Administration and enforcemen t of the franchise agreements with two cable television systems, management of a municipal ca ble channel, departmental video services, media and public information, and telecommunications planning.

2025 2024
Claims liabilities, beginning of year 52,171,564$ 49,681,686$ Current year claims 15,165,000 15,050,000
Change in prior year claims 2,918,981 (2,494,275) Claim payments (8,361,304) (7,053,266)
Legal, administrative and other expenses (3,789,599) (3,012,581) Claims liabilities, end of year 58,104,642$ 52,171,564$ Claims liabilities, due in one year 15,600,347$ 14,192,093$

149
1021
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

17. SEGMENT INFORMATION FOR ENTERPRISE FUNDS, Continued Fiscal 2025 condensed financial information for the Richmond Marina Enterprise Fund is as follows:

Condensed Statement of Net Position
Assets:

Current assets 6,074,248$
Lease receivables 5,072,773
Capital assets 1,180,592
Total assets 12,327,613
Liabilities:

Current liabilities 330,232
Long-term liabilities 1,780,726
Total liabilities 2,110,958
Deferred inflows of resources:

Deferred inflows of resources - leases 4,883,305
Net position:

Net investment in capital assets (721,361)
Restricted for debt service 96,768
Unrestricted 5,957,943
Total net position 5,333,350$
Condensed Statement of Revenues, Expenses
and Changes in Net Position
Operating revenues:

Rental 162,777 $
Lease income 351,701
Operating expenses:

General and administrative (91,399)
Maintenance (25,896)
Depreciation (84,278)
Operating income 312,905
Nonoperating revenues (expenses):

Interest income 383,980
Interest expense (86,023)
Income (Loss) Before Contributions and Transfers 297,957 Transfers out (86,778)
Change in net position 524,084
Beginning net position 4,809,266
Ending net position 5,333,350$
Condensed Statement of Cash Flows
Net cash provided (used) by:

Operating activities 386,942$
Noncapital and related financin g activities (86,778)
Capital and related financin g activities (206,815)
Investing activities 380,221
Net increase 473,570
Beginning cash and investments 5,507,893
Ending cash and investments 5,981,463$
150
1022
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

18. COMMITMENTS AND CONTINGENCIES
A. Construction Commitments
The City’s future commitments under construction and other projects totaled approximately $238 million at June 30, 2025 for various projects.

B. Lease
The Police Department occupies leased premises owne d by DiCon Fiberoptics, Inc. The City’s original lease was a three-year lease which expired on December 31, 2009, and it had an option to extend for five additional one-year periods until December 31, 2014 . In October 2014, the City and DiCon Fiberoptics, Inc. entered into their first five-year lease amendment ("First Amendment to the Office Lease Agreement”) with the term commencing January 1, 2015 through De cember 31, 2019, with an option to renew for five additional one-year periods until December 31, 2024.

On November 21, 2024, the City entered into a “Second Amendment to the Office Lease Agreement” with DiCon Fiberoptics, Inc. extending the lease term for five years with five successive options each of one year to extend the Extended Term. During the initial five year extens ion, the Police Department will be billed a base rent of $140,870 and additional rent of $24,008 each calendar year. Beginning the sixth year, base rent will increase by a minimum of three percent up to a maximum of five percent.

C. Litigation
The City is involved in various claims and litigation resulting from its normal operations. The ultimate outcome of these matters is not presently determinable. In City management’s opinion these matters will not have a significant adverse effect on the City’s or RHA Properties’ financial position, except for what is noted below:

In March 2012, a developer and Native American Trib e (“Tribe”) (collectively, “Developer”) filed a complaint in federal court against the United States of America, two individuals, and the City contending breach of contract related to a Land Disposition Agreement (LDA) between the Developer and the City for the development of a portion of Point Molate (approximately 80 acres) for a specific use. The Developer sought damages of $30 million as well as lo st profits of over $750 million. The City disputed the allegations and contended that the LDA did not commit the Developer or the City to develop the property for the specific use and that the Develope r’s right to move forward with the development was subject to various federal approvals. The City received a favorable judgment on the matter, but an appeal by the Developer resulted in the Ninth Circuit reversing the decision. The plaintiffs filed an amended complaint.

Under the terms of the judgment, amended in August 2019, future proceeds from the sale of the property will be shared equally between the City and the Developer.

Under the amended judgment, the City was requir ed to and did engage a new developer for the sale/transfer and development of Point Molate (“Su nCal”). SunCal ultimately failed to meet certain conditions to complete the transaction and close es crow in May 2022. SunCal filed an action against the City in or around June 2022 in connection with Poin t Molate seeking damages as well as taking title to the property.
151
1023
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

18. COMMITMENTS AND CONTINGENCIES, Continued
C. Litigation, Continued
Separately, after the City approved SunCal’s proposed project and the CEQA-required environmental impact report for Point Molate’s development (“SEIR”), environmenta l rights groups challenged and filed appeals against the certification of SEIR. In No vember 2023, the appellate court set aside the SEIR and all “project related approvals”. Neither the City , SunCal, nor the Tribe took any subsequent action to correct the CEQA differences. Pursuant to that Sale, the City gives up to 50% share of sales proceeds under the Amended judgment and there are mutual waivers. By September 2025, the sale and transfer to the District was completed.

Further based on the decertification of the SEIR, in March 2025, the City prevailed in the SunCal action and obtained judgment, which SunCal immediately appealed.

While it appears that all matters under the Federal Judgment are satisfied, SunCal’s appeal of judgment in favor of the City remains ongoing.  While the subject contracts were set aside based on the appellate CEQA ruling, and therefore the agreements at issue are invalidated, SunCal continues to press litigation claiming over $70 million lost profit dama ges and other claims that the City denies.  The City no longer owns the subject property; the Tribe obtained title in 2022 under the Amended Judgment and completed the sale to the District. SunCal previously sought to enjoin the transfer to the Tribe but the Court refused to issue the injunction in or around August 2022.  The pending appeal is to determine whether the trial court’s ruling dismissing SunCal’s action based on the CEQA decision was correct. If the court of appeals agree with SunCal, the case will be sent back to the trial court to litigate SunCal’s claims that may survive the CEQA ruling, e.g., that the City’s alleged failure to transfer the property to SunCal remains irrespective of CEQA. The City may be negatively impacted should the court ru le in favor of reopening the case. As stated, significant damages are sought, yet a good portion of the damages should be limited due to the CEQA ruling.  The City also has strong defenses including the parties’ no damages contract clauses in the contracts and SunCal’s inability to close escrow. However, any such impact cannot be determined at this time, as SunCal’s appeal of its adverse judgment is underway.  It is anticipated that a resolution of the appeal will be completed by the end of 2026.

D. Grant Programs
The City participates in several federal and state grant programs. These programs are 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.

E. Housing Authority – Easter Hill Project
The Authority participated in several federally assisted programs, principally the Low-Income Public Housing Program and the HOPE VI Revitalization Grant. Although future reviews may identify disallowed costs, the Authority does not expect any such amounts to materially affect the accompanying financial statements.

In June 2000, the Authority rece ived a $35 million HOPE VI grant from Department of Housing and Urban Development (HUD) to revitalize the former 300- unit Easter Hill Public Housing Project, later renamed Richmond Village. The $120 million redevelopment was financed through multiple public and private partners, with approximately $108 million de dicated to physical improvements and $12 million to relocation, services, and administrative costs, resulting in approximately 320 new rental and 152
1024
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

18. COMMITMENTS AND CONTINGENCIES, Continued
E. Housing Authority – Easter Hill Project, Continued homeownership units, a community center, and other amenities. McCormack Baron Salazar, Inc. and Em Johnson Interest, Inc. served as the development team, completing and leasing all rental units and constructing and selling all 82 homeownership un its. Upon completion, the Authority recorded $14,276,909 as reimbursement from the developer.

For Richmond Village, the Authority advanced RAD repositioning activities by completing the exit of the investor limited partner, executing a Memo randum of Understanding with McCormack Baron Salazar, Inc. and the Community Housing Development Corporation, securing the RAD Commitment to Housing Assistance Payments (CHAP) on December 3, 2024. The Authority and its partners pursued a RAD/Section 18 Small Public Housing Authority blen d conversion for Richmond Village I, II, and III and initiated required due-diligence activities – including the environmental review and Physical Needs Assessment – to support preparation of the RAD Financing Plan, anticipated for submission by September 2026. Point Molate – Pollution Remediation
F. Point Molate – Pollution Remediation
In September 2008, the City entered into an Early Transfer Cooperative Agreement (ETCA) with the United States Department of the Navy the (Navy) to facilitate the transfer of 41 acres of property that was formerly the Naval Fuel Depot Point Molate (Point Molate). The ETCA identifies certain known pollution issues with the property, and the Navy is the responsible party. However, under the provisions of the ETCA, the Navy advanced $28 million to the City representing the estimated cost of cleanup, and the City committed to manage the project. Any polluti on found that was not caused by the Navy’s use of the land is to be paid by the City, however, as of June 30, 2025, no additional pollution has been identified.

The City also entered into an agreement in Septembe r 2008 with a Developer to sell approximately 134 acres of land located on Point Molate along with the 41 acres of which the Navy is to transfer to the City.

The Developer is to complete the cleanup on behalf of the City in accordance with the requirements of the ETCA. The City committed to pass-through the funds received from the Navy to the Developer.

In April 2010, the City and Developer entered into an agreement to establish a fiscal agent escrow account to maintain the funds held for the remediation of Point Molate. The funds advanced by the Navy are to be held in escrow with a fiscal agent and the agent is responsible for disbursing funds to the Developer as costs are incurred. The terms of the agreement are e ffective until a certificate of completion is issued for the remediation of the property.

Under the terms of the agreements with the Navy and the Developer, the City does not retain responsibility for the cleanup of the known pollution. The City is merely acting as a pass-thru of the grant funds from the Navy to the Developer and the activiti es for the project are reported in the Pt. Molate Private-Purpose Trust Fund.

153
1025
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

18. COMMITMENTS AND CONTINGENCIES, Continued
G. Other – Major Taxpayer
In fiscal year 2009, a major business license taxpayer filed a complaint challenging the legality of Measure T, a voter initiative that took effect on January 1, 2009. Measure T amended the City’s business license tax calculation for manufacturers. Although the City believed Measure T to be lawful, the court ruled on December 17, 2009 that the tax was unconstitutional . The court ruled in favor of the business license taxpayer awarding a refund of the $20.5 million Measure T taxes paid. The City filed an appeal, however in May 2010 the taxpayer and the City entered into a settlement agreement in order to achieve certainty in the tax revenue that the City w ill receive from the taxpayer over the next 15 years. The agreement provides for annual payments from the taxpayer rang ing from $4 million to $13 million starting July 1, 2011, with payments totaling $114 million. In addition , the agreement incorporated the prior settlement of a dispute over fiscal year 2006, 2007 and 2008 utility user’s taxes totaling $28 million that was paid in four installments beginning in fiscal year 2009. Payments totaling $114 million were received under the settlement agreements in fiscal years 2011 through 2025.

In August 2024, the City adopted a resolution that removed from the November 5, 2024 ballot a proposed business license tax on oil refining and a resolution that approved a tax settlement agreement between the City and the same business license taxpayer. With the tax settlement agreement, the taxpayer agreed to pay $550 million over the next ten years beginning in fiscal year 2026.

H. Marina Bay – Pollution Remediation
The Successor Agency owned a group of land tracts collectively referenced as the “Nine Deed Restricted Properties.” The Successor Agency was named as a responsible party at these sites under a Voluntary Cleanup Agreement with the State Department of Toxic Substances Control (DTSC) to conduct pollution monitoring and remediation. However, the Successo r Agency received appr oval from the DOF to transfer the properties and their maintenance to the City on June 30, 2016. Therefore, the City is now the responsible party at the sites. These nine properties sit within the larger Marina Bay development site. A Remediation Action Plan (RAP) was prepared for Marina Bay in 1993 and included references to each of the Deed Restricted Properties.

Eight of the nine deed restricted properties are subject to an Operations & Maintenance (O&M) Plan. The O&M Plans require annual inspections of the cap material and reporting of the findings to DTSC. The O&M Plans also require that a five-year review report be prepared and submitted to DTSC. The five-year review reports describe the inspection and maintenance activities that were performed over the previous five years. The annual inspection costs are estimated at $15,500, with the five year review estimated at $41,000 (this cost includes revising a previously submitted work plan, conducting the review, and preparing the report). The monitoring costs over a five-year period are estimated at $135,000.

Additionally, costs for environmental consultation to address DTSC concerns at the nine deed restricted properties are estimated at $15,000 annually.

154
1026
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

18. COMMITMENTS AND CONTINGENCIES, Continued
H. Marina Bay – Pollution Remediation, Continued
The RAP was subsequently amended in 2008 to addre ss Area T, one of the Nine Deed Restricted Properties. The amended RAP subjects the site to groundwater sampling and analysis. The approximate annual costs for the existing groundwater sampling and analysis program is $30,100. The known pollution at this site are petroleum hydrocarbons dissolved in groundwater. Active remediation was conducted from September 2008 through June 2020 by the former Redevelopment Agency and the Successor Agency and the active remediation has be en successful at removing a layer of petroleum hydrocarbons on the groundwater. However, the groundwater impacted with dissolved petroleum hydrocarbons is located in close proximity to the Ma rina Bay harbor. It is anticipated that DTSC will request that the Successor Agency submit a work plan describing the methods to petroleum hydrocarbons at Area T. Groundwater impacted by dissolved petroleum hydrocarbons is anticipated to be required by DTSC.

The Successor Agency requested that its consultant prepare a feasibility stu dy and cost analysis to conduct such remediation. The preliminary cost es timate to implement the groundwater remediation program is estimated at $135,000. A plan to maintain the cap on Area T will be prepared and the cost for this plan is $7,500. This preliminary estimate has not been accrued as a liability in the City’s Statement of Net Position. This estimate is also subject to change from price increases or reductions, technology, and changes in applicable laws or regulations.

A Covenant to Restrict Use of Property for Area FM, also one of the Nine Deed Restricted Properties, was recorded on March 21, 2005. As described in the deed restriction, the remedial alternative for Area FM includes installing and maintaining a temporary 1-foot-thick soil cap over the property as an interim measure; the final cap will consist of hardscape including commercial buildings, roadways, and parking areas. The deed restriction also requires the preparation of an O&M Plan. According to a DTSC- approved Remedial Design and Implementation Plan (RDIP) for Area FM, the proposed permanent cap will be implemented during site redevelopment acti vities and will consist of building foundations and slabs, paved walkways and parking areas, landscaping and other features constructed over the site. Site redevelopment has yet to occur, the interim temp orary cap has not been implemented, and the O&M Plan has yet to be prepared for Area FM. DTSC is re quiring the City to construct the temporary cap on Area FM. The City is preparing to construct a temporary asphalt cap to minimize surface water runoff and reduce routine maintenance and prepared a Work Plan Amendment for Construction of Temporary Asphalt Cap. Upon approval by DTSC, the City will install the temporary cap. The cost to prepare the planning documents, conduct observation, documentation, and reporting of the cap installation, as well as preparation of an O&M Plan is $176,800. The estima te cost to construct the temporary cap can’t be made at this time.

DTSC has also requested that the City provide do cumentation of the dredging conducted within the Marina Bay harbor. The cost to prepare the document is $1,500. DTSC has also requested that the City prepare and implement a work plan to conduct a supplemental subsurface investigation at Area FM. The scope of work includes: (1) installing and samplin g groundwater monitoring wells; (2) installing and sampling soil vapor probes; and (3) soil sampling. The cost to perform the supplemental investigation is not known at the time. Additionally, DTSC has requested that the City submit a real estate title report for Area FM.

155
1027
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

18. COMMITMENTS AND CONTINGENCIES, Continued
I. Encumbrances
The City uses an encumbrance system as an extension of normal budgetary accounting for governmental funds. Under this system, purchas e orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that po rtion of applicable appropriations. Encumbrances outstanding at year-end are recorded as restricted, committed or assigned fund balance, depending on the classification of the resources to be used to li quidate the encumbrance, sinc e they do not constitute expenditures or liabilities. Outstanding encumbrances at year-end are automatically reappropriated for the following year. Unencumbered and unexpended appropriations lapse at year-end. Encumbrances outstanding as of June 30, 2025 were as listed below:

Amount
General Fund 731,521 $
General Purpose Fund 3,857,975
Community Development and Loan Programs Fund 62,091
General Capital Improvement Fund 3,948,247
Non-Major Governmental Funds 14,074,738
22,674,572$
156
1028
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

19. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES A. Redevelopment Dissolution
The State of California adopted ABx1 26 on June 28, 2011, amended by AB1484 on June 27, 2012, which suspended all new redevelopment activities except for limited specified activities as of that date and dissolved redevelopment agencies on January 31, 2012.

The suspension provisions prohibit all redevelopment agencies from a wide range of activities, including incurring new indebtedness or obligations, entering into or modifying agreements or contracts, acquiring or disposing of real property, taking actions to adopt or amend redevelopment plans and other similar actions, except actions required by law or to carry out existing enforceable obligations, as defined in ABx1

26. ABx1 26 and AB1484 created three regulatory authorit ies, the Successor Agency Oversight Board, State Controller and Department of Finance (DOF), to re view former Agency’s asset transfers, obligation payments and wind down activities. ABx1 26 specif ically directs the State Controller to review the activities of all redevelopment agencies to determine whether an asset transfer between an agency and any public agency occurred on or after January 1, 2011. If an asset transfer did occur and the public agency that received the asset is not contractually committed to a third party for the expenditure or encumbrance of the asset, the legislation purports to require the State Controller to order the asset returned to the Redevelopment Agency or, on or af ter February 1, 2012, to the Successor Agency. The State Controller’s Office completed its asset transfer review in November 2013 and the State ordered the return of certain assets to the Successor Agency to the Redevelopment Agency. The City complied with certain aspects of the State’s order during fiscal year 2013 by returning applicable capital assets to the Successor Agency and the Oversight Board retroactively approved other prior transfers to the City and the State has indicated that no further action is nece ssary. The State also ordered the return of assets previously transferred to the City as Housing Succe ssor totaling $16,460,848, because the transfer of the housing assets had not been approved by the Oversight Board. The Ov ersight Board adopted a Resolution on February 25, 2014 retroactively a pproving the transfer of the loans to the Housing Successor.

Effective January 31, 2012, the Redevelopment Ag ency was dissolved. Certain assets of the Redevelopment Agency Low and Moderate Income Housing Fund were distributed to a Housing Successor; and the remaining Redevelopment Agency assets and liabilities were distributed to a Successor Agency.

Under the provisions of AB 1484, the City can el ect to become the Housing Successor and retain the housing assets. The City elected to become the Housing Successor and on February 1, 2012, certain housing assets were transferred to the City’s Low and Moderate Income Housing Fund which is included in the Community Development and Loan Programs Special Revenue Fund. The activities of the Housing Successor are reported in the Low and Moderate Inco me Housing Asset Fund as the City has control of those assets, which may be used in accordance with the low and moderate income housing provisions of California Redevelopment Law.
157
1029
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

19. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
A. Redevelopment Dissolution, Continued
The City also elected to become the Successor Agency and on February 1, 2012 the Redevelopment Agency’s remaining assets were distributed to and liabilities were assumed by the Successor Agency.

ABx1 26 requires the establishment of an Oversight Board to oversee the activities of the Successor Agency and one was established in April 2012. As of July 1, 2018, Contra Costa County has formed a county-wide Oversight Board to oversee the activities of all Successor Agencies within the County, including Richmond. The activities of the Successor Ag ency are subject to review and approval of the Oversight Board, which is comprised of seven members, including one member of City Council and one former Redevelopment Agency employee appointed by the Mayor.

AB1484 required the Successor Agency to complete two due diligence reviews – one for the low and moderate income housing assets of the Successor Agency (Housing DDR), and a second for all other balances of the Successor Agency (Non-housing DDR). The due diligence reviews were to calculate the balance of unencumbered balances as of June 30, 2012 available to be remitted to the County for disbursement to taxing entities. The Successor Agency submitted both due diligence reviews to the State Department of Finance for review and approval. The Department of Finance approved the Housing DDR, after making an adjustment, and the Successo r Agency remitted the unencumbered balance of $4,067,242 to the County in November 2014. The Department of Finance approved the Non-housing DDR in December 2014, and no funds were required to be remitted to the County. The Successor Agency received a Finding of Completion on December 9, 2014.

The activities of the Successor Agency are reported in the Successor Agency to the Richmond Community Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the Oversight Board. The City provides administrative services to the Su ccessor Agency to wind down the affairs of the former Redevelopment Agency.

Cash and investments of the Successor Agency as of June 30, 2025 are discussed in Note 2 above.

Information presented in the followi ng footnotes represents other asse ts and liabilities of the Successor Agency as of June 30, 2025.
158
1030
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

19. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
B. Capital Assets
The Successor Agency assumed the non-housing capi tal assets of the Redevelopment Agency as of February 1, 2012. All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their estimated fair market value on the date contributed. The Successor Agency’s policy is to capitalize all assets with costs exceeding certain minimum thresholds and with useful lives exceeding two years.

C. Long-term Obligations
The following is a summary of long-term debt transactions during the year ended June 30, 2025:

Bonds Payable
Bonds payable at June 30, 2025 consisted of the following:

Net
Subordinate Tax Allocation Bonds - 2007 Series B 8,860,367 $ Successor Agency of RCRA Refunding Bonds - 2014 Series A & B 2,309,249 Successor Agency of RCRA Refunding Bonds - 2021 Series A & B 13,944,394 Total 25,114,010 $
Balance Balance Due Within Due in More
July 1, 2024 Additions (A) Retirements June 30, 2025 One Year than One Year Bonds Payable $29,517,830 141,180$ (4,545,000)$ 25,114,010$ 5,675,000$ 19,439,010$ Loans payable from direct borrowing 9,985,000 - (2,310,000) 7,675,000 2,455,000 5,220,000 Total 39,502,830$ 141,180$ (6,855,000)$ 32,789,010$ 8,130,000$ 24,659,010$ (A) Includes bond accretion for capital appreciation bonds totaling $565,798. 159
1031
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

19. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
C. Long-term Obligations, Continued
Richmond Community Redevelopment Agency Subordinate Tax Allocation Bonds Series 2007A and Series B - Original Issue Series A $65,400,000, Series B $9,772,622 On July 12, 2007 the Redevelopment Agency issued Series 2007A Subordinate Tax Allocation Bonds in the amount of $65,400,000. The proceeds from the Bonds were used to pay the amount of $22,000,000 to the City to assist with the financing of the Civic Center Project, and to fund other Redevelopment Agency projects.

The 2007A Subordinate Tax Allocation Bonds were issu ed as variable auction rate bonds with interest calculated every thirty-five days, however, the Ag ency entered into a 29-year interest rate swap agreement for the entire amount of its 2007A Subord inate Tax Allocation Bonds. In fiscal year 2010 the Agency experienced a significant decline in tax increment revenue. In order to bring debt service in line with current revenues and maintain compliance with the required 1.4:1 tax increment to debt service coverage ratio, the Agency suspended a number of projects originally funded by the 2007A Bonds and applied approximately $36 million of the unspent 2007A proceeds and other available funds along with the proceeds from the issuance of the Subordinate Tax Allocation Refunding Bonds, Series 2010A to refund the outstanding balance of the 2007A Bonds. As part of the issuance of the 2010A Bonds, the interest rate swap agreement associated with the 2007A Bonds was amended and restated as discussed with the Series 2010A Bonds below.

On July 12, 2007 the Redevelopment Agency issued Series 2007B Housing Set-Aside Subordinate Tax Allocation Capital Appreciation Bonds in the amount of $9,772,622 at interest rates ranging from 5.57% to 6.40%. The proceeds from the 2007B Bonds will be used to finance certain low and moderate income housing activities of the Redevelopment Agency. The 2007B Bonds mature annually through 2037, in amounts ranging from $465,000 to $2,020,000. The 2007B Bonds are secured by a pledge of subordinated housing and non-housing tax revenues.
160
1032
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

19. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
C. Long-term Obligations, Continued
Richmond Community Redevelopment Agency Subordinate Tax Allocation Bonds Series 2007A and Series B - Original Issue Series A $65,400,000, Series B $9,772,622, Continued At June 30, 2025, the 2007B Bonds consisted of the following:

The annual debt service requirements on the 2007B Bonds are as follows:

Successor Agency to the Richmond Community Redevelopment Agency Refunding Bonds 2014 Series A & B – Original Issue Amounts $25,795,000 and $1,655,000, respectively The 2014 A & B Bonds were issued on March 27, 2014 by the Successor Agency to the Richmond Community Redevelopment Agency. The proceeds of the Bonds, together with other available funds, were used to refund and defease the outstanding balance of the current interest portion of the 1998 Harbour Redevelopment Project Tax Allocation Refunding Bonds Series A, and the outstanding balances of the Richmond Joint Powers Financing Authority Tax Allocation Revenue Bonds Series 2000 A & B and Richmond Joint Powers Financing Authority Tax Allocation Revenue Bonds Series 2003A. Interest rates range from 1.40% to 5.00% and is payable semiannually on March 1 and September 1. The 2014A Bonds mature annually on each September 1 through 2025 while the 2014B Bonds mature annually on each September 1 through 2018. Both Bonds are secured by a pledge of Redevelopment Property Tax Trust Fund revenues. The outstanding balances of the defeased debt as of June 30, 2025 were as follows:

Unamortized
Accretion / Premium
Value Amortization (Discount) Net
Capital appreciation bonds 12,040,000$ 565,798$ (3,745,431)$ 8,860,367$ For the Years
Ending June 30, Principal
2026 1,230,000 $
2027 1,285,000
2028 2,020,000
2029 830,000
2030 830,000
2031-2035 4,175,000
2036-2037 1,670,000
Total 12,040,000 $
Harbour Tax Allocation Refunding Bonds - 1998 Series A 2,290,000$ Total 2,290,000$
161
1033
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

19. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
C. Long-term Obligations, Continued
Successor Agency to the Richmond Community Redevelopment Agency Refunding Bonds 2014 Series A & B – Original Issue Amounts $25,795,000 and $1,655,000, respectively, Continued At June 30, 2025, the 2014 A & B Bonds consisted of the following:

The annual debt service requirements on the A & B bonds are as follows:

Successor Agency to the Richmond Community Redevelopment Agency Refunding Bonds 2021 Series A & B – Original Issue Amounts $15,070,000 and $2,665,000, respectively On December 18, 2020, the Redevelopment Agency issued Series 2020A&B Community Redevelopment Agency Refunding Bonds. The proceeds was used to repay a portion of the obligations of the Successor Agency under a Loan Agreement (Housing), dated as of October 1, 2004, by and between the Former Agency and the Richmond Joint Powers Financing Authority that secures payment of the Richmond Joint Powers Financing Authority Housing Set-Aside Tax Allocation Revenue Bonds, Series 2004B (Tax- Exempt) in the outstanding principal amount of $720,000, and refund the $21,625,000 outstanding principal amount of Richmond Community Redevelopment Agency Subordinate Tax Allocation Refunding Bonds (Merged Project Areas), 2010 Series A (the “2010A Bonds” and, together with the 2004 Loan Agreement, the “Prior Obligations”).

The Series 2021 Refunding Bonds will each be issued as fully registered Bonds and, when delivered, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository for the Series 2021 Refunding Bonds, as more fully described in APPENDIX G. The Series 2021 Refunding Bonds will be dated the date of delivery and issued in registered form in deno minations of $5,000 or any integral multiple of $5,000 and will mature on September 1 of each year in the amounts as set fo rth on the inside cover page . Interest on the Series 2021 Refunding Bonds will be payable on each March 1 and September 1, commencing September 1, 2021.

Bonds outstanding 2,290,000$
Unamortized premium 19,249
Net 2,309,249$
For the Years
Ending June 30, Principal Interest Total
2026 2,290,000 $ 54,750 $ 2,344,750 $
Total 2,290,000 $ 54,750 $ 2,344,750 $
162
1034
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

19. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
C. Long-term Obligations, Continued
Successor Agency to the Richmond Community Redevelopment Agency Refunding Bonds 2021 Series A & B – Original Issue Amounts $15,070,000 and $2,665,000, respectively, Continued At June 30, 2025, the bond premium consisted of the following:

The annual debt service requirements on the A & B bonds are as follows:

Loans Payable
The Richmond Joint Powers Financing Authority (Authority) has issued the Bonds listed below to assist in financing the Agency’s operations. The Authority has retained reserve amounts required under the respective Bond indentures and loaned the net pr oceeds of these Bond issues to the Agency. The Authority is responsible for paying principal and inte rest on the Bonds; the Agency is responsible for making payments to the Authority in the amounts shown below.

The outstanding balances of loans payable to the Autho rity at June 30, 2025 came from the Bond issues listed below:

Unamortized
Premium
Value (Discount) Net
Successor Agency Bond 2021A & B 12,965,000$ 979,394 $ 13,944,394 $ For the Years
Ending June 30, Principal Interest Total
2026 2,155,000 $ 458,700 $ 2,613,700 $ 2027 2,045,000 374,700 2,419,700 2028 6,075,000 212,300 6,287,300 2029 260,000 85,600 345,600 2030 270,000 75,000 345,000 2031-2035 1,640,000 186,000 1,826,000 2036-2037 520,000 10,400 530,400 Total 12,965,000$ 1,402,700$ 14,367,700$ JPFA Tax Allocation Revenue Bonds - 2003 Series B 1,705,000$ JPFA Tax Allocation Revenue Bonds - 2004 Series A & B 5,970,000 Total 7,675,000$
163
1035
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

19. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
C. Long-term Obligations, Continued
Loan from the Authority dated August 1, 2003
In 2003, the Authority issued 2003 Tax Allocation Revenue Bonds Series A and Series B in the original amount of $28,580,000. The net proceeds of the bond issue were loaned to the Agency to provide funding for certain capital improvements and to repay the Ci ty of Richmond $18,000,000 in partial payment of prior obligations. Under the terms of the loan agr eement between the Agency and the Authority dated August 1, 2003, repayment of the loan is being made from certain tax increment revenues derived from taxable property within the Post -2004 Limit Area pledged by the Agency for the purpose of loan repayment. On March 27, 2014, the Agency issued the Successor Agency to the Richmond Community Redevelopment Agency Refunding Bonds 2014 Series A & B which resulted in the refunding and defeasance of the outstanding balance of the 2003 Series A Bonds in the amount of $12,910,000, as discussed above.

At issuance, the Bonds were insured by MBIA Insurance Corporation (which was reinsured by National Public Finance Guarantee Corporatio n (“NPFGC”)). On December 5, 2017, Kroll Bond Rating Agency downgraded its insurance financial strength rating for NPFGC from ‘AA+’ to ‘AA’ and subsequently withdrew the rating citing business reasons. On January 17, 2018, Moody’s Investors Service (“Moody’s”) downgraded its insurance financial strength rating on NPFGC from ‘A3’ to ‘Baa2’. As a result of the foregoing, Moody’s downgraded its Insured Rating on the Bonds from ‘A3’ to ‘Baa2’. On February 13, 2019, S&P Global Ratings (formerly Standard and Poor’s Ratings Services) upgraded its Local Currency Long-Term and Underlying Ratings on the Bonds from ‘A+’ to ‘AA-‘.

The annual debt service requirements on the 2003 Series B loan as of June 30, 2025 are as follows:

Loan from the Authority dated October 1, 2004
In 2004, the Authority issued the 2004 Tax Allocation Revenue Bonds Series A and Series B in the original amounts of $15,000,000 and $2,000,000, respectively. Th e net proceeds of the bond issue were loaned to the Agency to provide funding for certain capital improvements, low/moderate income housing and to repay the City of Richmond $6,367,031 in prior obligations. Under the term s of the loan agreement between the Agency and the Authority dated August 1, 2003, repayment of the loan is being made from certain subordinate housing and non-housing tax increment revenues derived from the taxable property within the Merged Project Area pledged by the Agency for the purpose of loan repayment.

For the Years
Ending June 30, Principal Interest Total
2026 1,705,000 $ 53,708 $ 1,758,708 $ Total 1,705,000$ 53,708$ 1,758,708$ 164
1036
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

19. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
C. Long-term Obligations, Continued
Loan from the Authority dated October 1, 2004, Continued The annual debt service requirements for these loans as of June 30, 2025 are as follows:

Pledge of Redevelopment Tax Increment Revenues
The Bond issues and loans payable to the Authority discussed above consist of senior and parity obligations secured by future tax increment revenues. The pledge of all future tax increment revenues (housing and non-housing revenue) ends upon repaym ent of $54,618,772 remaining debt service on the Bonds and loans which is scheduled to occur in 2037.

With the dissolution of the Redevelopment Agency discussed above, Tax Increment is no longer distributed, and instead the Successor Agency rece ives payments from the County’s Redevelopment Property Tax Trust Fund (RPTTF) that are to be us e d t o f u n d d e b t s e r v i c e o n t h e B o n d s , w i t h n o distinction between housing and non-housing revenues . In addition, under the provisions of the laws dissolving the Redevelopment Agency, the Successor Agency only receives the funds necessary to fulfill its approved obligations. Total property taxes availa ble for distribution to the Successor Agency and other taxing entities for fiscal year 2025 calculat ed by the County Auditor–Controller were $47,357,204.

The total received by the Successor Agency for fisc al year 2025 debt service and other enforceable obligations was $10,414,679, which the Successor Agency used along with cash on-hand to pay debt service of $15,542,610.

Debt Without Agency or City Commitment
A special assessment district has been established in an area of the Agency to provide improvements to properties located in that district. Properties in the district are asse ssed for the cost of improvements:
these assessments are payable solely by property owners over the term of the debt issued to finance these improvements. The Agency is not legally or morally ob ligated to pay these debts or be the purchaser of last resort of any foreclosed properties in these special assessment districts, nor is it obligated to advance Agency funds to repay these debts in the event of default.

One District, Marina Westshore Community Facilities District No. 1998-1, had issued Community Facilities District No. 1998-1 Special Tax Bonds which had a remaining balance outstanding of $1,095,000 at June 30, 2025.

For the Years
Ending June 30, Principal Interest Total
2026 750,000 $ 304,368 $ 1,054,368 $ 2027 5,220,000 141,984 5,361,984 Total 5,970,000$ 446,352$ 6,416,352$ 165
1037
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

19. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES, Continued
C. Long-term Obligations, Continued
Conduit Debt
The Agency has assisted private-sect or entities by sponsoring their issuance of debt for purposes the Agency deems to be in the public interest. These debt issues are secured solely by the property financed by the debt. The Agency is not legally or morally obligated to pay these debts or be the purchaser of last resort of any foreclosed properties secured by these debts, nor is it obligated to advance Agency funds to repay these debts in the event of default by any of these issuers. At June 30, 2025, the balance of the issuers’ outstanding debt was as follows:

Crescent Park Apartment Project, 2007 Series A & Series A-T Revenue Bonds $ 14,357,879 D. Commitments and Contingencies
State Approval of Enforceable Obligations
The Successor Agency prepares a Recognized Oblig ation Payment Schedule (ROPS) annually that contains all proposed expenditures for the subsequent twelve-month period. The ROPS is subject to the review and approval of the Oversi ght Board as well as the State Department of Finance. Although the State Department of Finance may not question items included on the ROPS in one period, they may question the same items in a future period and di sallow associated activities. The amount, if any, of current obligations that may be denied by the State Department of Finance cannot be determined at this time. The City expects such amounts, if any, to be immaterial. 166
1038
City of Richmond
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

20. NEW ACCOUNTING STANDARDS
Accounting Standards Adopted
 GASB Statement No. 101, Compensated Absences – The primary objective of this Statement is to better meet the information needs of financial statem ent users by updating the recognition and measurement guidance for compensated absences. T hat objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirement of this statement applied to the City for the current fiscal year.  GASB Statement No. 102, Certain Risk Disclosures. The primary objective of this Statement is to provide users of government financial statements with essential information about risks related to government’s vulnerabilities due to certain concentrations or constraints. The City implemented the statement but did not result in any disclosure.

New Accounting Standards
The City is currently analyzing its a ccounting practices to determine the potential impact on the financial statements for the following GASB Statements:
 GASB Statement No. 103, Financial Reporting Model Improvements. The primary objective of this Statement is to improve key components of the financial reporting model to enhances its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. The requirements of this Statement are going to be effective for the City’s year ending June 30, 2026.
 GASB Statement No. 104, Disclosure of Certain Ca pital Assets. The primary objective is to provide users of government financial statements with esse ntial information about certain types of capital assets, including their nature, use, and related financ ial impacts. The requirements of this Statement are going to be effective for the City’s year ending June 30, 2026.  GASB Statement No. 105, Subsequent Events. The primary objective is to improve the financial reporting requirements for subsequent events, thereby enhancing consistency in their application and better meeting the information needs of financial statement users. The requirements of this Statement are going to be effective for the City’s year ending June 30, 2027.

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REQUIRED

SUPPLEMENTARY INFORMATION
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City of Richmond
Required Supplementary Information
For the year ended June 30, 2025

BUDGET AND BUDGETARY ACCOUNTING
Budgeting Procedures
The City adopts a budget annually to be effective July 1, for the ensuing fiscal year. Budgeted expenditures are adopted through the passage of a resolution. This resolution constitutes the maximum authorized expenditures for the fiscal year and cannot legally be exceeded except by subsequent amendments of the budget by the City Council.

The City uses an encumbrance system as an extension of normal budgetary accounting for the General Fund, special revenue funds, and capital projects funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations. Encumbrances outstanding at year-end are recorded as reservations of fund balance since they do not constitute expenditures or liabilities. Outstanding encumbrances at year-end are reappropriated for the following year. Unencumbered and unexpended appropriations lapse at year- end.

An operating budget is adopted each fiscal year on a basis consistent with Generally Accepted Accounting Principles (GAAP) for the General Fund, certain Special Revenue Funds (State Gas Tax, General Purpose, Paratransit Operations, Public Safety, Lighting and Landscaping Districts, Developer Impact Fees, Community Development and Loan Programs, Richmond Neighborhood Stabilization Corporation, Rent Program, Cost Recovery and Environmental Community Investment Agreement) and the debt service funds (Pension Obligation Bonds, General Debt Service and Civic Center Debt Service).

Public hearings are conducted on the proposed budgets to review all appropriations and sources of financing. Capital projects funds are budgeted on a project length basis and are therefore not comparable on an annual basis.

Expenditures are controlled at the fund level for all budgeted departments within the City. This is the level at which expenditures may not legally exceed appropriations. Budgeted amounts for the Statement of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual include budget amendments approved by City Council.
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172
1044
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Ne gative)
REVENUES:

Property taxes 57,597,487$ 57,597,487 $ 55,064,108 $ (2,533,379) $ Sales taxes 60,456,550 60,901,150 59,749,804 (1,151,346) Utility user taxes 62,092,359 62,092,359 63,825,320 1,732,961 Other taxes 23,405,397 23,405,397 27,189,502 3,784,105 Licenses, permits and fees 13,768,720 13,768,720 14,755,450 986,730 Fines, forfeitures and penalties 176,438 176,438 637,304 460,866 Use of money and property 1,796,421 1,796,421 4,348,043 2,551,622 Intergovernmental 505,000 505,000 1,063,303 558,303 Charges for services 5,739,753 5,839,753 5,664,077 (175,676) Rent 777,478 777,478 879,271 101,793 Other 183,230 183,230 572,607 389,377 Total revenues 226,498,833 227,043,433 233,748,789 6,705,356 EXPENDITURES:

Current:

General government 50,384,451 52,179,721 48,454,590 3,725,131 Public safety 130,566,963 134,120,333 123,124,039 10,996,294 Public works 36,567,587 37,471,069 35,830,513 1,640,556 Cultural and recreational 15,538,700 15,473,510 14,054,799 1,418,711 Capital outlay 1,476,000 2,954,861 22,806,160 (19,851,299) Debt service:

Principal 811,256 811,256 3,606,982 (2,795,726) Interest and fiscal charges 39,648 40,390 225,316 (184,926) Total expenditures 235,384,605 243,051,140 248,102,399 (5,051,259)

REVENUES OVER (UNDER)
EXPENDITURES (8,885,772) (16,007,707) (14,353,610) 1,654,097 OTHER FINANCING SOURCES (USES):

Proceeds from sale of property 15,000 15,000 1,415 (13,585) Other financing sources - Lease liability - - 21,315,218 21,315,218 Transfers in 29,996,811 30,844,674 23,059,557 (7,785,117) Transfers out (20,557,373) (33,872,398) (26,132,806) 7,739,592 Total other financing sources (uses) 9,454,438 (3,012,724) 18,243,384 21,256,108 Net change in fund balances 568,666$ (19,020,431)$ 3,889,774 22,910,205 $ FUND BALANCES (DEFICITS):

Beginning of year 99,422,659
End of year 103,312,433$
Budgeted Amounts
173
1045
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community Development and Loan Programs Special Revenue Fund For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Ne gative)
REVENUES:

Licenses, permits and fees 676,665$ 676,665 $ 224,903 $ (451,762) $ Use of money and property 406,183 406,183 559,030 152,847 Intergovernmental 434,954 434,954 237,910 (197,044) Other 1,001,600 1,001,600 922,602 (78,998) Total revenues 2,519,402 2,519,402 1,944,445 (574,957) EXPENDITURES:

Current:

Community development 3,191,493 3,444,935 1,473,680 1,971,255 Housing and redevelopment 1,520,165 1,527,165 297,716 1,229,449 Capital outlay 600,000 600,000 - 600,000 Total expenditures 5,311,658 5,572,100 1,771,396 3,800,704

REVENUES OVER (UNDER)
EXPENDITURES (2,792,256) (3,052,698) 173,049 3,225,747 OTHER FINANCING SOURCES (USES):

Proceeds from sale of property 167,717 167,717 - (167,717) Transfers out (480,000) (480,000) - 480,000 Total other financing sources (uses) (312,283) (312,283) - 312,283 Net change in fund balances (3,104,539)$ (3,364,981) $ 173,049 3,538,030 $ FUND BALANCES (DEFICITS):

Beginning of year 34,682,938
End of year 34,855,987$
Budgeted Amounts
174
1046
City of Richmond
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Purpose Special Revenue Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Licenses, permits and fees 175,040$ 175,040$ 121,854$ (53,186)$ Fines, forfeitures and penalties - - 7,119 7,119
Use of money and property - - 390,651 390,651
Intergovernmental 26,633,572 45,951,176 22,277,140 (23,674,036) Charges for services 400,000 500,000 456,916 (43,084) Other 5,834 5,834 - (5,834)
Total revenues 27,214,446 46,632,050 23,253,680
(23,378,370)
EXPENDITURES:

Current:

General government 7,774,375 19,474,803 5,006,134 14,468,669 Public safety 2,215,880 2,172,017 1,059,134 1,112,883 Public works 294,739 899,885 490,320 409,565
Community development - 724,011 442,237 281,774
Cultural and recreational 112,904 885,297 753,951 131,346 Housing and redevelopment 1,000 500 - 500
Capital outlay 5,886,327 19,041,920 13,917,968 5,123,952 Total expenditures 16,285,225 43,198,433 21,669,744 21,528,689

REVENUES OVER (UNDER)
EXPENDITURES 10,929,221 3,433,617 1,583,936 (1,849,681) OTHER FINANCING SOURCES (USES):

Transfers in 75,000 328,475 368,756 40,281
Total other financing sources (uses) 75,000 328,475 368,756 40,281 Net change in fund balances 11,004,221$ 3,762,092$ 1,952,692 (1,809,400)$ FUND BALANCES (DEFICITS):

Beginning of year (620,497)
End of year 1,332,195$
Budgeted Amounts
175
1047
City of Richmond
Required Supplementary Information
For the year ended June 30, 2025
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plan Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* Fiscal Year Ended: 6/30/2025 6/30/2024 6/30/2023 6/30/2022 Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 Total Pension Liability
Service cost 7,316,334$ 6,722,126$ 6,682,973$ 6,902,037$ Interest 36,683,660 35,674,633 35,458,653 35,423,024 Differences between actual
and expected experience 5,026,256 (7,762,052) (5,319,202) (6,412,719) Changes in assumptions - - 12,173,403 - Changes in benefits - 632,505 - - Benefit
payments, including refunds
of employee contributions (33,595,581) (32,597,551) (31,205,396) (30,000,846) Net change in the total pension liability 15,430,669 2,669,661 17,790,431 5,911,496 Total pension liability - beginning 539,760,608 537,090,947 519,300,516 513,389,020 Total pension liability - ending (a) 555,191,277$ 539,760,608$ 537,090,947$ 519,300,516$ Plan Fiduciary Net Position
Contributions - employer 15,611,185$ 14,445,711$ 14,802,460$ 14,612,575$ Contributions - employee 3,499,268 2,219,977 2,518,762 2,657,439 Net investment income 38,742,347 24,467,157 (33,609,940) 83,636,340 Plan to plan resource movement - - - (4,882) Administrative expense (333,407) (295,244) (279,875) (378,350) Benefit payments, including refunds
of employee contributions (33,595,581) (32,597,551) (31,205,396) (30,000,846) Other miscellaneous income (expense) - - - - Net change in plan fiduciary net position 23,923,812 8,240,050 (47,773,989) 70,522,276 Plan fiduciary net position - beginning 409,739,923 401,499,873 449,273,857 378,751,581 Plan fiduciary net position - ending (b) 433,663,735$ 409,739,923$ 401,499,868$ 449,273,857$ Net pension liability - ending (a) - (b) 121,527,542$ 130,020,685$ 135,591,079$ 70,026,659$ Plan fiduciary net position as a percentage
percentage of the total pension liability 78.11% 75.91% 74.75% 86.52% Covered payroll 41,658,338$ 33,889,757$ 31,565,766$ 32,686,024$ Net pension liability as a percentage of
covered payroll 291.72% 383.66% 429.55% 214.24%
Notes to the schedule:
* Fiscal year 2015 was the 1st year of implementation.

Benefit Changes: The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the June 30, 2019 valuation. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
176
1048
6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 7,529,439$ 7,652,864$ 7,637,812$ 8,053,459$ 7,200,571$ 7,446,410$ 34,974,846 34,315,542 33,323,855 32,804,753 32,305,003 31,414,256 (4,393,691) (331,531) (4,642,948) (4,464,966) (3,484,064) (5,280,549) - - (3,224,832) 25,548,824 - (7,116,200) - - - - - - (29,018,486) (27,565,398) (25,970,450) (25,074,448) (23,917,069) (23,302,793) 9,092,108 14,071,477 7,123,437 36,867,622 12,104,441 3,161,124 504,296,912 490,225,435 483,101,998 446,234,376 434,129,935 430,968,811 513,389,020$ 504,296,912$ 490,225,435$ 483,101,998$ 446,234,376$ 434,129,935$ 13,778,755$ 12,156,723$ 10,489,795$ 8,860,295$ 8,093,834$ 7,189,716$ 2,749,990 2,843,043 2,894,841 2,996,354 3,087,656 3,141,565 18,237,576 23,350,283 28,880,923 35,805,938 1,630,388 7,502,958 - - (842) (50,018) (4,762) (6,885) (526,586) (259,047) (542,721) (481,651) (205,714) (379,925) (29,018,486) (27,565,398) (25,970,450) (25,074,448) (23,917,069) (23,302,793) - 842
(1,030,636) - - - 5,221,249 10,526,446 14,720,910 22,056,470 (11,315,667) (5,855,364) 373,530,332 363,003,886 348,282,976 326,226,506 337,542,173 343,397,537 378,751,581$ 373,530,332$ 363,003,886$ 348,282,976$ 326,226,506$ 337,542,173$ 134,637,439$ 130,766,580$ 127,221,549$ 134,819,022$ 120,007,870$ 96,587,762$

73.77% 74.07% 74.05% 72.09% 73.11% 77.75%
35,129,597$ 36,295,759$ 35,725,311$ 35,964,798$ 36,638,889$ 36,151,102$ 383.26% 360.28% 356.11% 374.86% 327.54% 267.18%
Changes in Assumptions: None in 2019,2020 or 2021. In 2022, the accounting discount rate was reduced from 7.15% to 6.90%. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65% to 7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate. 177
1049
City of Richmond
Required Supplementary Information
For the year ended June 30, 2025
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plan Schedule of Contributions - Last 10 Years*
Fiscal Year Ended: 6/30/2025 6/30/2024 6/30/2023 6/30/2022 Actuarially determined contribution 15,611,185$ 14,445,711$ 14,802,460$ 14,466,499$ Contributions in relation to actuarially determined
contributions (15,611,185) (14,445,711) (14,802,460) (14,466,499) Contribution deficiency (excess) - $ - $ - $ - $ Covered payroll 47,441,258 $ 41,658,338 $ 33,889,757 $ 31,565,766 $ Contributions as a percentage of covered payroll 32.91% 34.68% 43.68% 45.83% Notes to the schedule:

Valuation date: 6/30/2021 6/30/2021 6/30/2020 6/30/2019 Actuarial cost method
Amortization method
Asset valuation method
Inflation
Payroll growth
Salary increases
Investment rate of return
Retirement age
Mortality rate table
Varies by Entry Age and Service.

6.80%
The probabilities of Retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions
The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2000 to 2019. Pre- retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 80% of Scale MP- 2020 published by the Society of Actuaries
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2024- 25 were derived from the June 30, 2021 funding valuation report.

Entry age normal
For details, see June 30, 2021 CalPERS Funding Valuation Report
For details, see June 30, 2021 CalPERS Funding Valuation Report

2.30%

2.80%
178
1050
6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 14,438,844$ 13,783,427 $ 12,150,650 $ 10,436,250 $ 8,867,763 $ 8,084,584 $ (14,438,844) (13,783,427) (12,150,650) (10,436,250) (8,867,763) (8,084,584) -$ - $ - $ - $ - $ - $ 32,686,024$ 35,129,597 $ 36,295,759 $ 35,725,311 $ 35,964,798 $ 36,638,889 $

44.17% 39.24% 33.48% 29.21% 24.66% 22.07%
6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 179
1051
City of Richmond
Required Supplementary Information
For the year ended June 30, 2025
Safety Agent Multiple-Employer Defined Benefit Pension Plan Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* Fiscal Year Ended: 6/30/2025 6/30/2024 6/30/2023 6/30/2022 Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 Total Pension Liability
Service cost 8,998,544$ 9,411,145$ 10,872,256$ 10,261,858$ Interest 51,297,671 50,102,721 48,797,968 48,387,109 Differences between actual
and expected experience
4,437,458 3,695,356 (6,331,832) (1,211,011) Changes in assumptions - - 19,873,614 - Changes in benefits - 272,955 - - Benefit payments, including refunds
of employee contributions
(47,342,941) (45,510,872) (42,486,153) (41,557,485) Net change in the total pension liability 17,390,732 17,971,305 30,725,853 15,880,471 Total pension liability - beginning 758,179,239 740,207,934 709,482,081 693,601,610 Total pension liability - ending (a) 775,569,971$ 758,179,239$ 740,207,934$ 709,482,081$ Plan Fiduciary Net Position
Contributions - employer
22,864,777$ 21,904,607 $ 21,911,673 $ 21,598,699 $ Contributions - employee 4,333,792 3,028,664 3,884,791 4,314,111 Net investment income 48,906,825 31,057,913 (42,434,599) 105,126,083 Plan to plan resource movement - - - 4,881 Administrative expense (420,110) (372,225) (352,374) (476,147) Benefit payments, including refunds
of employee contributions
(47,342,941) (45,510,872) (42,486,153) (41,557,485) Other miscellaneous income (expense) - - - - Net change in plan fiduciary net position 28,342,343 10,108,087 (59,476,662) 89,010,142 Plan fiduciary net position - beginning 516,293,896 506,185,809 565,662,471 476,652,329 Plan fiduciary net position - ending (b) 544,636,239$ 516,293,896$ 506,185,809$ 565,662,471$ Net pension liability - ending (a) - (b) 230,933,732$ 241,885,343$ 234,022,125$ 143,819,610$ Plan fiduciary net position as a percentage
percentage of the total pension liability

70.22% 68.10% 68.38% 79.73%
Covered payroll 31,146,084$ 28,453,678 $ 30,325,691 $ 33,272,769 $ Net pension liability as a percentage of
covered payroll
741.45% 850.10% 771.70% 432.24%
Notes to the schedule:

Benefit Changes: The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the June 30, 2019 valuation. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
180
1052
6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 10,958,278$ 11,313,128$ 11,391,456$ 11,650,927$ 10,297,536$ 10,142,245$ 47,218,257 46,009,128 44,562,419 43,264,626 41,950,593 40,142,006 (2,189,929) 433,759 413,272 797,969 2,950,295 3,799,388 - - (2,676,340) 35,109,898 - (9,563,090) - - - - - - (38,982,005) (37,105,985) (35,123,568) (33,620,000) (30,593,589) (28,747,508) 17,004,601 20,650,030 18,567,239 57,203,420 24,604,835 15,773,041 676,597,009 655,946,979 637,379,740 580,176,320 555,571,485 539,798,444 693,601,610$ 676,597,009$ 655,946,979$ 637,379,740$ 580,176,320$ 555,571,485$ 19,362,087$ 16,658,515$ 14,016,085$ 12,699,049$ 11,488,714$ 10,652,641$ 4,232,707 4,238,132 4,226,345 4,471,008 4,607,993 3,797,568 22,875,702 29,333,974 36,380,672 45,166,243 2,062,417 9,408,186 - - (1,062) 50,018 4,762 3,476 (662,340) (326,144) (684,883) (607,337) (258,432) (477,249) (38,982,005) (37,105,985) (35,123,568) (33,620,000) (30,593,589) (28,747,508) - 1,062 (1,300,605) - - - 6,826,151 12,799,554 17,512,984 28,158,981 (12,688,135) (5,362,886) 469,826,178 457,026,624 439,513,640 411,354,659 424,042,794 429,405,680 476,652,329$ 469,826,178$ 457,026,624$ 439,513,640$ 411,354,659$ 424,042,794$ 216,949,281$ 206,770,831$ 198,920,355$ 197,866,100$ 168,821,661$ 131,528,691$

68.72% 69.44% 69.67% 68.96% 70.90% 76.33%
34,316,884$ 35,870,534$ 34,439,607$ 37,273,957$ 37,352,212$ 36,161,966$ 632.19% 576.44% 577.59% 530.84% 451.97% 363.72%
Changes in Assumptions : None in 2019, 2020 or 2021. In 2022, the accounting discount rate was reduced from 7.15% to

6.90%. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65% to 7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate. 181
1053
City of Richmond
Required Supplementary Information
For the year ended June 30, 2025
Safety Agent Multiple-Employer Defined Benefit Pension Plan Schedule of Contributions - Last 10 Years*
Fiscal Year Ended: 6/30/2025 6/30/2024 6/30/2023 6/30/2022 Actuarially determined contribution 22,864,777$ 21,904,607$ 21,911,673$ 21,603,382$ Contributions in relation to actuarially
determined contributions (22,864,777) (21,904,607) (21,911,673) (21,603,382) Contribution deficiency (excess) -$ -$ -$ -$ Covered payroll 33,932,809$ 31,146,084$ 28,453,678$ 30,325,691$ Contributions as a percentage of covered payroll 67.38% 70.33% 77.01% 71.24% Notes to the schedule:

Valuation date: 6/30/2021 6/30/2021 6/30/2020 6/30/2019 Actuarial cost method
Amortization method
Asset valuation method
Inflation
Payroll growth
Salary increases
Investment rate of return
Retirement age
Mortality rate table
Varies by Entry Age and Service.

6.80%
The probabilities of Retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions
The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2000 to 2019. Pre- retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2024- 25 were derived from the June 30, 2021 funding valuation report.

Entry age normal
For details, see June 30, 2021 CalPERS Funding Valuation Report For details, see June 30, 2021 CalPERS Funding Valuation Report

2.30%

2.80%
182
1054
6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 21,315,231$ 19,355,578 $ 16,363,802 $ 14,013,858 $ 12,696,582 $ 11,492,798 $ (21,315,231) (19,355,578) (16,363,802) (14,013,858) (12,696,582) (11,492,798) -$ - $ - $ - $ - $ - $ 33,272,769$ 34,316,884 $ 35,870,534 $ 34,439,607 $ 37,273,957 $ 37,352,212 $

64.06% 56.40% 45.62% 40.69% 34.06% 30.77%
6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 183
1055
City of Richmond
Required Supplementary Information
For the year ended June 30, 2025
General Pension Plan
Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* Fiscal Year Ended: 6/30/2025 6/30/2024 6/30/2023 6/30/2022 Measurement Date 6/30/2025 6/30/2024 6/30/2023 6/30/2022 Total Pension Liability
Service cost -$ -$ -$ -$ Interest 9,952 18,066 13,321 16,222 Differences between actual
and expected experience 622,841 - (528,328) - Changes in assumptions (27,387) (1,445) (91,811) - Benefit payments, including refunds
of employee contributions (217,862) (252,208) (240,913) (371,727) Net change in the total pension liability 387,544 (235,587) (847,731) (355,505) Total pension liability - beginning 358,539 594,126 1,452,567 1,808,072 Total pension liability - ending (a) 746,083$ 358,539$ 604,836$ 1,452,567$ Plan Fiduciary Net Position
Contributions - employer 217,862$ 252,208$ 152,897$ 345,348$ Net investment income - - 26,443 3,617 Benefit payments, including member
contribution refunds (217,862) (252,208) (240,913) (371,727) Net change in the total pension liability - - (61,573) (22,762) Plan fiduciary net position - beginning - - 1,070,264 1,093,026 Plan fiduciary net position - ending (b) -$ -$ 1,008,691$ 1,070,264$ Net pension liability - ending (a) - (b) 746,083$ 358,539$ (403,855)$ 382,303$ Plan fiduciary net position as a percentage
percentage of the total pension liability 0.0% 0.0% 166.8% 73.7% Covered payroll n/a n/a n/a n/a
Net pension liability as a percentage of
covered payroll n/a n/a n/a n/a
* Error discovered in fiscal year ended 2024 that the Plan has no plan assets so should have been reported zero plan fiduciary net position in the past years. However, because the actuarial information is not available for the previous years, it is not practical to restated the prior years numbers. 184
1056
6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 -$ - $ - $ - $ - $ - $ 35,526 57,712 70,585 80,100 92,742 107,632 106,639 - 150,123 - 40,459 - 72,660 66,443 102,792 (20,669) - - (401,991) (424,760) (494,605) (524,939) (584,272) (623,662) (187,166) (300,605) (171,105) (465,508) (451,071) (516,030) 1,995,238 2,295,843 2,466,948 2,932,456 3,383,527 3,899,557 1,808,072$ 1,995,238 $ 2,295,843 $ 2,466,948 $ 2,932,456 $ 3,383,527 $ 319,025$ 503,714 $ 812,561 $ 814,594 $ 73,592 $ 602,970 $ 5,501 23,724 8,124 2,207 3,351 2,255 (401,991) (424,760) (494,605) (524,939) (584,272) (623,662) (77,465) 102,678 326,080 291,862 (507,329) (18,437) 1,170,491 1,067,813 741,733 449,871 957,200 975,637 1,093,026$ 1,170,491$ 1,067,813$ 741,733$ 449,871$ 957,200$ 715,046$ 824,747$ 1,228,030$ 1,725,215$ 2,482,585$ 2,426,327$

60.5% 58.7%

46.5% 30.1% 15.3% 28.3%
n/a n/a n/a n/a n/a n/a
n/a n/a n/a n/a n/a n/a
185
1057
City of Richmond
Required Supplementary Information
For the year ended June 30, 2025
Police and Firemen's Pension Plan
Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* Fiscal Year Ended: 6/30/2025 6/30/2024 6/30/2023 6/30/2022 Measurement Date 6/30/2025 6/30/2024 6/30/2023 6/30/2022 Total Pension Liability
Interest 206,468$ 221,136$ 257,381$ 283,996$ Differences between actual
and expected experience (1,744,085) - (515,830) - Changes in assumptions (174,378) (27,985) (912,308) - Benefit payments, including refunds
of employee contributions (594,134) (854,345) (971,644) (1,117,194) Net change in the total pension liability (2,306,129) (661,194) (2,142,401) (833,198) Total pension liability - beginning 5,494,894 6,156,088 7,839,576 8,672,774 Total pension liability - ending (a) 3,188,765$ 5,494,894$ 5,697,175$ 7,839,576$ Plan Fiduciary Net Position
Contributions - employer 594,134$ 854,345$ -$ -$ Net investment income - - 954,475 (1,939,002) Benefit payments, including member
contribution refunds (594,134) (854,345) (971,644) (1,117,194) Other deductibles - - (2,546) - Net change in the total pension liability - - (19,715) (3,056,196) Plan fiduciary net position - beginning - - 10,057,651 13,113,847 Plan fiduciary net position - ending (b) -$ -$ 10,037,936$ 10,057,651$ Net pension liability - ending (a) - (b) 3,188,765$ 5,494,894$ (4,340,761)$ (2,218,075)$ Plan fiduciary net position as a percentage
percentage of the total pension liability 0.0% 0.0% 176.2% 128.3% Covered payroll n/a n/a n/a n/a
Net pension liability as a percentage of
covered payroll n/a n/a n/a n/a
*Error discovered in fiscal year ended 2024 that the Plan has no plan assets so should have been reported zero plan fiduciary net position in the past years. However, because the actuarial information is not available for the previous years, it is not practical to restated the prior years numbers. 186
1058
6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 561,163$ 606,022 $ 952,312 $ 1,031,753 $ 1,111,386 $ 1,214,089 $ (3,680,825) - (3,103,425) - 261,891 - 28,483 - 1,037,914 - - - (1,412,673) (1,793,082) (2,170,136) (2,656,508) (2,859,902) (3,140,552) (4,503,852) (1,187,060) (3,283,335) (1,624,755) (1,486,625) (1,926,463) 13,176,626 14,363,686 17,647,021 19,271,776 20,758,401 22,684,864 8,672,774$ 13,176,626$ 14,363,686$ 17,647,021$ 19,271,776$ 20,758,401$ 937,004$ 937,004$ 1,270,466$ 1,270,466$ 1,270,466$ 1,222,197$ 2,527,138 584,954 645,593 589,027 1,340,997 (165,490) (1,412,673) (1,793,082) (2,170,136) (2,656,508) (2,859,902) (3,140,552) - - - - - - 2,051,469 (271,124) (254,077) (797,015) (248,439) (2,083,845) 11,062,378 11,333,502 11,587,579 12,384,594 12,633,033 14,716,878 13,113,847$ 11,062,378$ 11,333,502$ 11,587,579$ 12,384,594$ 12,633,033$ (4,441,073)$ 2,114,248$ 3,030,184$ 6,059,442$ 6,887,182$ 8,125,368$ 151.2% 84.0%

78.9% 65.7% 64.3% 60.9%
n/a n/a n/a n/a n/a n/a
n/a n/a n/a n/a n/a n/a
187
1059
City of Richmond
Required Supplementary Information
For the year ended June 30, 2025

OTHER POST-EMPLOYMENT BENEFITS PLAN SCHEDULES
OPEB Plan, an Agent Multiple-Employer Defined Benefit Plan Schedule of Changes in the Net OPEB Liability and Related Ratios - Last 10 Years* For the Measurement Period Ended: 6/30/2025 6/30/2024 6/30/2023 6/30/2022 Total OPEB Liability
Service cost 1,955,691$ 1,808,740$ 1,756,058$ 2,088,997$ Interest 6,668,378 6,379,004 6,314,835 6,997,592 Changes in benefit terms (3,080,959) (374,980) - - Differences between actual
and expected experience - (99,709) 103,835 (11,982,490) Changes in assumptions - - - (6,119,213) Benefit payments (7,697,298) (7,384,770) (6,931,088) (7,272,797) Net change in the total OPEB liability (2,154,188) 328,285 1,243,640 (16,287,911) Total OPEB liability - beginning 108,528,667 108,200,382 106,956,742 123,244,653 Total OPEB liability - ending (a) 106,374,479$ 108,528,667$ 108,200,382$ 106,956,742$ Plan Fiduciary Net Position
Contributions - employer 8,766,569$ 9,641,744$ 13,518,089$ 10,042,891$ Contributions - employee 674,725 640,963 585,950 589,125 Net investment income 5,199,338 5,554,054 3,089,068 (4,613,857) Administrative expense (87,719) (77,988) (64,547) (61,195) Benefit payments (7,697,298) (7,384,770) (6,931,088) (7,272,797) Plan to Plan transfer (1) - - - - Net change in the total OPEB liability 6,855,615 8,374,003 10,197,472 (1,315,833) Plan fiduciary net position - beginning 49,695,446 41,321,443 31,123,971 32,439,804 Plan fiduciary net position - ending (b) 56,551,061$ 49,695,446$ 41,321,443$ 31,123,971$ Net OPEB liability - ending (a) - (b) 49,823,418$ 58,833,221$ 66,878,939$ 75,832,771$ Plan fiduciary net position as a percentage
percentage of the total OPEB liability 53.16% 45.79% 38.19% 29.10% Covered employee payroll 64,916,948$
58,268,870$ 47,613,516$ 45,133,662$
Net OPEB liability as a percentage of
covered employee payroll 76.75% 100.97% 140.46% 168.02% (1) Transferred to the RPOA Plan established in fiscal year 2019. * Fiscal
year 2017 was the 1st year of implementation.
188
1060
6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017
2,072,961$ 4,292,499 $ 3,452,679 $ 6,730,397 $ 7,558,987 $ 6,846,932 7,222,766 7,625,498 7,927,217 7,064,307 - - (19,910,800) - - (140,135) (28,723,614) - (2,816,969) - 1,173,106 (42,412,472) (1,409,953) 8,715,168 (15,340,529) (7,011,178) (7,753,129) (7,247,073) (6,861,529) (6,497,645) 2,941,686 (67,373,950) (17,489,649) 13,694,284 (7,214,880) 120,302,967 187,676,917 205,166,566 191,472,282 198,687,162 123,244,653$ 120,302,967$ 187,676,917$ 205,166,566$ 191,472,282$ 9,515,699$ 12,720,085$ 6,714,785$ 13,599,120$ 13,218,475$ 623,088 642,475 532,288 765,475 278,850 6,562,745 709,908 1,170,454 632,089 227,394 (111,868) (89,764) (81,950) (49,169) (11,250) (7,011,178) (7,753,129) (7,247,073) (6,861,529) (6,497,645) - - (1,879,640) - - 9,578,486 6,229,575 (791,136) 8,085,986 7,215,824 22,861,318 16,631,743 17,422,879 9,336,893 2,121,069 32,439,804$ 22,861,318$ 16,631,743$ 17,422,879$ 9,336,893$ 90,804,849$
97,441,649$ 171,045,174$ 187,743,687$ 182,135,389$

26.32% 19.00% 8.86% 8.49% 4.88%
46,698,024$ 50,016,647$ 49,511,523$ 65,359,713$ 66,774,795$ 194.45% 194.82% 345.47% 287.25% 272.76%
189
1061
City of Richmond
Required Supplementary Information
For the year ended June 30, 2025
OTHER POST-EMPLOYMENT BENEFITS PLAN SCHEDULES, Continued OPEB Plan, an Agent Multiple-Employer Defined Benefit Plan, Continued Schedule of Plan Contributions - Last 10 Years*
Fiscal Year Ended: 6/30/2025 6/30/2024 6/30/2023 6/30/2022 Contractually required contributions (CRC)
(1)/Actuarially determined employer
contribution (ADEC) 7,089,882$ 8,162,863$ 8,107,624$ 9,525,000$ Contributions in relation to the CRC/ADEC (8,766,569) (9,641,744) (13,518,089) (10,042,891) Contribution deficiency (excess) (1,676,687)$ (1,478,881)$ (5,410,465)$ (517,891)$ Notes:

Schedule of Investment Returns - Last 10 Years*
Fiscal Year Ended: 6/30/2025 6/30/2024 6/30/2023 6/30/2022 Annual money weighted rate of return,
net of investment expense 10.46% 13.18% 9.03% -13.92%
* Fiscal year 2017 was the 1st year of implementation.
(1) Before FY2021, the City does not calculate an Actuarially Determined Contribution, but the City's agreements with its bargaining units provide for various benefit levels as discussed in the Notes to the Financial Statements.

Contributions reported include the implicit subsidy.
190
1062
6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017
12,641,000$ 7,753,129 $ 7,247,073 $ 6,861,529 $ 6,497,645 $ (9,515,697) (7,753,129) (7,247,073) (6,861,529) (6,497,645) 3,125,303$ -$ -$ -$ -$ 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017

26.66% 3.48% 6.74% 6.30% 10.75%
191
1063
City of Richmond
Required Supplementary Information
For the year ended June 30, 2025
OTHER POST-EMPLOYMENT BENEFITS PLAN SCHEDULES, Continued RPOA OPEB Plan, an Agent Multiple-Employer Defined Benefit Plan Schedule of Changes in the Net OPEB Liability and Related Ratios - Last 10 Years* For the Measurement Period Ended: 6/30/2025 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Total OPEB Liability
Service cost 603,565 $ 773,710 $ 751,175 $ 1,027,120 $ 1,871,012 $ 2,053,367 $ 1,939,517 $ Interest 973,105 1,045,967 962,027 1,107,706 800,939 850,944 764,597 Changes in benefit terms - - - - - - 21,995,467 Differences between actual
and expected experience - (3,178,929) 52,738 (4,595,658) 10,367 (1,784,304) - Changes in assumptions (804,065) 605,196 - (323,325) (9,082,375) 401,383 - Benefit payments (348,849) (341,982) (315,302) (382,892) (277,277) (156,536) (82,673) Net change in the total OPEB liability 423,756 (1,096,038) 1,450,638 (3,167,049) (6,677,334) 1,364,854 24,616,908 Total OPEB liability - beginning 16,491,979 17,588,017 16,137,379 19,304,428 25,981,762 24,616,908 - Total OPEB liability - ending (a) 16,915,735$ 16,491,979$ 17,588,017$ 16,137,379$ 19,304,428$ 25,981,762$ 24,616,908$ Plan Fiduciary Net Position
Contributions - employer 351,898$ 1,278,978$ 1,952,362$ 1,955,147$ 1,028,868$ 1,851,964$ -$ Contributions - employee 356,850 351,000 344,550 403,650 453,163 425,213 82,673 Net investment income 1,293,209 852,098 321,979 (833,976) 935,134 170,322 - Plan to Plan transfer (1) - - - - - - 1,879,640
Benefit payments (348,849) (341,982) (315,302) (382,892) (277,277) (156,536) (82,673) Administrative expense (4,119) (5,075) (4,052) (3,187) (2,612) - - Net change in the total OPEB liability 1,648,989 2,135,019 2,299,537 1,138,742 2,137,276 2,290,963 1,879,640 Plan fiduciary net position - beginning 11,881,177 9,746,158 7,446,621 6,307,879 4,170,603 1,879,640 - Plan fiduciary net position - ending (b) 13,530,166$ 11,881,177$ 9,746,158$ 7,446,621$ 6,307,879$ 4,170,603$ 1,879,640$ Net OPEB liability - ending (a) - (b) 3,385,569$ 4,610,802$ 7,841,859$ 8,690,758$ 12,996,549$ 21,811,159$ 22,737,268$ Plan fiduciary net position as a percentage
percentage of the total OPEB liability 79.99% 72.04% 55.41% 46.15% 32.68% 16.05% 7.64% Covered employee payroll 14,516,508$ 13,280,855$ 12,167,295$ 13,527,611$ 16,100,126$ 16,699,113$ 17,404,407$ Net OPEB liability as a percentage of
covered employee payroll 23.32% 34.72% 64.45% 64.24% 80.72% 130.61% 130.64% (1) Transferred from the OPEB Plan.
* Fiscal year 2019 was the 1st year of implementation.
192
1064
City of Richmond
Required Supplementary Information
For the year ended June 30, 2025
OTHER POST-EMPLOYMENT BENEFITS PLAN SCHEDULES, Continued RPOA OPEB Plan, an Agent Multiple-Employer Defined Benefit Plan, Continued Schedule of Plan Contributions - Last 10 Years*
Fiscal Year Ended: 6/30/2025 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Contractually required(CRC)
/Actuarially determined
employer contributions (ADEC) (1) 661,784 $ 1,130,352$ 1,107,178 $ 1,627,000 $ 1,878,000$ 1,851,964 $ 82,673$ Contributions in relation to the CRC/ADEC (351,898) (1,278,978) (1,952,362) (1,955,147) (1,028,868) (1,851,964) (82,673) Contribution deficiency (excess) 309,886 $ (148,626)$ (845,184)$ (328,147)$ 849,132 $ -$ -$ Notes:
* Fiscal year 2019 was the 1st year of implementation.
(1) Before FY2021 the City does not calculate an Actuarially Determined Contribution, but the City's agreements with its bargaining units provide for various benefit levels as discussed in the Notes to the Financial Statements. Contributions reported include the implicit subsidy. 193
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SUPPLEMENTARY

INFORMATION
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1068

NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
State Gas Tax Fund accounts for the subventions received from state gas taxes under the provision of the Streets and Highways Code. State gas taxes are restricted for street construction activities including location of underground utilities, geotechnical work relating to identification of soil and groundwater contamination, materials sampling, and testing.

Paratransit Operations Fund accounts for monies used to provide subsidized, accessible transportation to the seniors and disabled residents of the City of Richmond and the adjacent unincorporated areas of West Contra Costa County.

Employment & Training Fund is a fund set up to plan, administer and operate job training programs for the adult and youth residents of Richmond.

Public Safety Fund records the receipt and use of grant monies under the Local Law Enforcements Block Grant Program, Office of Traffic Safety Grants, OES Grants, FEMA Grants, and various other grants.

Lighting and Landscaping Districts Fund was set up to account for maintenance services in the nature of landscaping, lighting, cleaning provided to the Hilltop parking lot area, the Marina Way Development area, and the Marina Bay area.

Developer Impact Fees Fund is used to account for monies received from fees levied by the City on new commercial and residential projects. These funds will be used to mitigate the additional public safety and infrastructure costs resulting from these development projects.

Secured Pension Override Fund records the receipt of Pension Tax override collected through property taxes for payment of pension contributions.

Richmond Neighborhood Stabilization Corporation Fund accounts for the activities of the Corporation.

Rent Program Fund is used to account for fees paid by landlords to find the operation of Richmond's Fair Rent, Just Cause for Eviction, and Homeowner Protection programs.

Cost Recovery Fund is used to record the receipt and use of monies for services provided to the public and developers.

Environmental and Community Investment Agreement (ECIA) Fund accounts for funding received from Chevron in conjunction with the Chevron Modernization Project Environmental and Community Investment Agreement to fund various projects and programs within the City of Richmond.

American Rescue Plan Act Fund accounts for funding received from federal government in conjunction with the American Rescue Plan Act to provide resources to help turn the tide on the pandemic, address its economic fallout, and lay the foundation for a strong and equitable recovery.

Transformative Climate Grant Fund is used to record the receipt and use of grant monies from the Transformative Climate Communities (TCC) Program which commits to supporting community-led initiatives to build a healthier environment for local residents. The program funds projects to reduce greenhouse gas emissions and local air pollution.
197
1069
NONMAJOR GOVERNMENTAL FUNDS (Continued)
Special Revenue Funds (Continued)
Encampment Resolution Grant Fund is used to account for provides resources to address the Castro Encampment by offering crisis support for unhoused individuals and facilitating their transition to safe and stable housing.

General Pension Plan Fund is used to account for the activity of the General Pension Plan, a defined benefit plan that covers 28 former City employees not covered by PERS, all of whom have retired. 3 participants remain in the Plan.

Police and Firemen's Pension Plan Fund is used to account for the activity of the Police and Firemen's Pension Plan, a defined benefit pension plan that covers 75 police and fire personnel employed prior to October 1964, all of whom have retired. 12 participants remain in the Plan.

Debt Service Funds
2022 Pension Obligation Bonds Debt Service Fund receives transfers from the General Fund and the Pension Tax Override Fund, and pays the debt service on the 2022 Pension Obligation Bonds.

General Debt Service Fund accounts for monies received in connection with the 1995A and the 1999 Series A Pension Obligation Bonds and the related payments on such debt. The 1995 Series A bonds were to refinance the cost of capital improvements, and the 1999 Series A bonds were issued to find a portion of the unfunded accrued actuarial liability in the Pension Fund.

Civic Center Debt Service Fund accounts for principal and interest payments on the Civic Center Project Lease Revenue Bonds.

Capital Projects Funds
Measure C/J Fund was set up when the voters of Contra Costa County approved Measure C providing for the creation of the Contra Costa County Transportation Authority. The half-cent transportation sales tax was renewed under Measure J, effective April 1, 2009. The Authority collects one-half percent (0.5%) sales and use tax. Twenty percent (20%) of this tax is allocated to the City of Richmond to be used for the improvement of local transportation, including streets and roads in accordance with Measure C and Measure J compliance.

Harbor Navigation Fund records expenses relating to the construction of certain public improvements relating to the Port of Richmond consisting of dredging and deepening of the Richmond Harbor. 198
1070
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199
1071
City of Richmond
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
Paratransit Employment
State Gas Tax Operations and Training
Fund Fund Fund
ASSETS
Cash and investments 7,826,810 $ - $ - $ Restricted cash and investments - - 5,762 Receivables:

Accounts, net 540,376 226 3,518 Interest 15,993 - - Grants - 2,139,432 2,593,211 Loans - - - Prepaids, supplies and other assets - - - Total assets 8,383,179$ 2,139,658$ 2,602,491$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

Liabilities:

Accounts payable and accrued liabilities 393,668$ 102,699$ 166,406$ Refundable deposits - - - Due to other funds - 1,819,037 336,966 Unearned revenue - - 160,579 Total liabilities 393,668 1,921,736 663,951 Deferred inflows of resources:

Unavailable revenue - 2,139,432 1,855,613 Total deferred inflows of resources - 2,139,432 1,855,613 Fund Balances:

Restricted 7,989,511 - - Assigned - - - Unassigned - (1,921,510) 82,927 Total fund balances 7,989,511 (1,921,510) 82,927 Total liabilities, deferred inflows
of resources, and fund balances 8,383,179$ 2,139,658$ 2,602,491$ Special Revenue Funds
200
1072
Richmond
Lighting and Developer Secured Neighborhood
Public Safety Landscaping Impact Fees Pension Override Stabilization Rent Program Fund Districts Fund Fund Fund Corporation Fund Fund
276,209$ 1,069,298$ 13,373,750$ 3,083,691$ -$ 1,488,681$ - - - - 141,372 - - - - - - - 568 2,205 28,959 - - 3,917 - - - - - - - - - - 779,013 - - - - - - - 276,777$ 1,071,503$ 13,402,709$ 3,083,691$ 920,385$ 1,492,598$ -$ 38,613$ 19,891$ -$ 3,275$ 45,424$ - - - - - - - - - - 101,017 - - - - - - 6,864 - 38,613 19,891 - 104,292 52,288 - - - - - - - - - - - - 276,777
1,032,890 13,382,818 3,083,691 816,093 1,440,310 - - - - - - - - - - - - 276,777 1,032,890 13,382,818 3,083,691 816,093 1,440,310 276,777$ 1,071,503$ 13,402,709$ 3,083,691$ 920,385$ 1,492,598$ Special Revenue Funds
201
1073
City of Richmond
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
Environmental American
and Community Rescue Transformative
Cost Recovery Investment Plan Act Climate
Fund Agreement Fund Fund Grant Fund
ASSETS
Cash and investments 10,191,090$ 16,995,241$ 16,860,510$ -$ Restricted cash and investments - - - - Receivables:

Accounts, net 281,522 - - - Interest 25,997 34,965 37,005 - Grants 4,441,046 - 3,000 1,835,627 Loans - - 1,750,000 - Prepaids, supplies and other assets - - - 64,368 Total assets 14,939,655$ 17,030,206$ 18,650,515$ 1,899,995$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

Liabilities:

Accounts payable and accrued liabilities 2,573,614$ 740,371 $ 1,084,996 $ 575,114 $ Refundable deposits 1,255,278 - - - Due to other funds - - - 1,322,583 Unearned revenue 18,000 - 13,313,232 2,209 Total liabilities 3,846,892 740,371 14,398,228 1,899,906 Deferred inflows of resources:

Unavailable revenue 3,107,423 - - 958,245 Total deferred inflows of resources 3,107,423 - - 958,245 Fund Balances:

Restricted 7,985,340 16,289,835 2,502,287 - Assigned - - 1,750,000 - Unassigned - - - (958,156) Total fund balances 7,985,340 16,289,835 4,252,287 (958,156) Total liabilities, deferred inflows
of resources, and fund balances 14,939,655$ 17,030,206 $ 18,650,515 $ 1,899,995 $ Special Revenue Funds
202
1074
Encampment General Police 2022 Pension General Civic Center Resolution Pension and Firemen's Obligation Bonds Debt Service Debt Service Grant Fund Fund Pension Fund Fund Fund Fund
13,679,649$ -$ -$ 156,144$ 76,823$ 395,658$ - 616,210 10,809,069 8,643 - 1,850 - - - - - - - 1,360 538 327 161 - - - - - - - - - - - - - - - - - - - 13,679,649$ 617,570$ 10,809,607$ 165,114$ 76,984$ 397,508$ 90,437$ -$ -$ -$ -$ -$ - - - - - - - - - - - - 13,456,947 - - - - 2,060,646 13,547,384 - - - - 2,060,646 - - - - - - - - - - - -
132,265 617,570 10,809,607 165,114 76,984 - - - - - - - - - - - - (1,663,138) 132,265 617,570 10,809,607 165,114 76,984 (1,663,138) 13,679,649$ 617,570 $ 10,809,607$ 165,114 $ 76,984 $ 397,508 $ Debt Service FundsSpecial Revenue Funds
203
1075
City of Richmond
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
Total
Harbor Nonmajor
Measure C/J Navigation Governmental
Fund Fund Funds
ASSETS
Cash and investments 5,517,697$ 50,873$ 91,042,124$ Restricted cash and investments - - 11,582,906 Receivables:

Accounts, net - - 825,642 Interest 11,679 107 163,781 Grants 99,073 - 11,111,389 Loans - - 2,529,013 Prepaids, supplies and other assets - - 64,368 Total assets 5,628,449$ 50,980$ 117,319,223$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

Liabilities:

Accounts payable and accrued liabilities 425,589$ -$ 6,260,097$ Refundable deposits - - 1,255,278 Due to other funds - - 3,579,603 Unearned revenue - - 29,018,477 Total liabilities 425,589 - 40,113,455 Deferred inflows of resources:

Unavailable revenue 99,073 - 8,159,786 Total deferred inflows of resources 99,073 - 8,159,786 Fund Balances:

Restricted 5,103,787 50,980 71,755,859 Assigned - - 1,750,000 Unassigned - (4,459,877)
Total fund balances 5,103,787 50,980 69,045,982 Total liabilities, deferred inflows
of resources, and fund balances 5,628,449$ 50,980 $ 117,319,223$ Capital Projects Funds
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205
1077
City of Richmond
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2025
General Paratransit Employment
State Gas Tax Purpose Operations and Training
Fund Fund Fund Fund
REVENUES:

Property taxes -$ -$ -$ -$ Licenses, permits and fees - - - - Use of money and property 317,216 - - - Intergovernmental 6,380,391 - 1,098,645 2,443,496 Charges for services - - 226 - Other - - 10,466 - Total revenues 6,697,607 - 1,109,337 2,443,496 EXPENDITURES:

Current:

General government - - 1,351,154 - Public safety - - - - Public works 5,577,505 - - - Community development - - 1,745 6,406,182 Cultural and recreational - - - - Housing and redevelopment - - - - Capital outlay 136,514 - - - Debt service: -
Principal - - - - Interest and fiscal charges - - - - Total expenditures 5,714,019 - 1,352,899 6,406,182

REVENUES OVER (UNDER)
EXPENDITURES 983,588 - (243,562) (3,962,686) OTHER FINANCING SOURCES (USES):

Proceeds from sale of property - - - - Transfers in - - - 2,891,141 Transfers out - - - - Total other financing sources (uses) - - - 2,891,141 Net change in fund balances 983,588 - (243,562) (1,071,545) FUND BALANCES (DEFICITS):

Beginning of year 7,005,923 (620,497) (1,677,948) 1,154,472 Restatements - change in non-major fund - 620,497 - - Restatements - - - - Beginning of year, as restated 7,005,923 - (1,677,948) 1,154,472 End of year 7,989,511$ -$ (1,921,510)$ 82,927$ Special Revenue Funds
206
1078
Richmond
Lighting and Developer Secured Neighborhood
Public Safety Landscaping Impact Fees Pension Override Stabilization Rent Program Fund Districts Fund Fund Fund Corporation Fund Fund
-$ 1,895,644$ -$ 28,292,298$ -$ -$ - - 1,050,020 - - 2,833,664 11,857 37,312 588,129 - - 93,841 - - - - 16,600 - - - - - - - - - - - - 89 11,857 1,932,956 1,638,149 28,292,298 16,600 2,927,594 - - - - - - - - 3,105 - - - - 2,506,810 24,585 - - - - - - - - - - - 20,205 - - - - - - - 43,371 3,387,325 - - 97,570 - - - - - - - - - -
- - - - - - 2,506,810 145,465 - 43,371 3,387,325 11,857 (573,854) 1,492,684 28,292,298 (26,771) (459,731) 1,097 - - - - - - 787,762 - - - 290,391 - - - (28,292,298) - - 1,097 787,762 - (28,292,298) - 290,391 12,954 213,908 1,492,684 - (26,771) (169,340) 263,823 818,982 11,967,956 3,083,691 842,864 1,609,650 - - - - - - - - (77,822) - - - 263,823 818,982 11,890,134 3,083,691 842,864 1,609,650 276,777$ 1,032,890$ 13,382,818$ 3,083,691$ 816,093$ 1,440,310$ Special Revenue Funds
207
1079
City of Richmond
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2025
Environmental American
and Community Rescue Transformative
Cost Recovery Investment Plan Act Climate
Fund Agreement Fund Fund Grant Fund
REVENUES:

Property taxes -$ - $ - $ - $ Licenses, permits and fees 7,632,902 - - - Use of money and property 550,526 775,100 877,987 - Intergovernmental 7,155,482 - 7,456,360 3,184,791 Charges for services 2,094,884 - - - Other 2,725 - - - Total revenues 17,436,519 775,100 8,334,347 3,184,791 EXPENDITURES:

Current:

General government 11,385,759 1,913,750 589,164 3,196,463 Public safety - 188,849 - - Public works 831,409 331,800 3,199,833 27,326 Community development - - 724,058 - Cultural and recreational - - - - Housing and redevelopment - - 979,402 - Capital outlay 7,847,199 (16,465) 1,963,902 151,024 Debt service:

Principal - - - - Interest and fiscal charges - - - - Total expenditures 20,064,367 2,417,934 7,456,359 3,374,813

REVENUES OVER (UNDER)
EXPENDITURES (2,627,848)
(1,642,834) 877,988 (190,022) OTHER FINANCING SOURCES (USES):

Proceeds from sale of property - - - - Transfers in 1,520,000 - - - Transfers out - - - - Total other financing sources (uses) 1,520,000 - - - Net change in fund balances (1,107,848) (1,642,834) 877,988 (190,022) FUND BALANCES (DEFICITS):

Beginning of year 9,093,188 17,932,669 - (768,134) Restatements - change in non-major fund - - 3,429,640 - Restatements - - (55,341) - Beginning of year, as restated 9,093,188 17,932,669 3,374,299 (768,134) End of year 7,985,340$ 16,289,835$ 4,252,287$ (958,156)$ Special Revenue Funds
208
1080
Encampment General Police 2022 Pension General Civic Center Resolution Pension and Firemen's Obligation Bonds Debt Service Debt Service Grant Fund Fund Pension Fund Fund Fund Fund
-$ -$ -$ -$ -$ -$ - - - - - - 130,918 31,353 1,251,878 21,189 3,438 25,831 2,475,791 - - - - - - - - - - 6,374,269 - - - - - - 2,606,709 31,353 1,251,878 21,189 3,438 6,400,100 2,475,791 217,862 - - - - - - 654,450 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4,110,000
- - - 8,431,859 5,317 3,716,074 2,475,791 217,862 654,450 8,431,859 5,317 7,826,074 130,918 (186,509) 597,428 (8,410,670) (1,879) (1,425,974) - - - - - - - - - 8,427,321 - 1,482,453 - - - - - - - - - 8,427,321 - 1,482,453 130,918 (186,509) 597,428 16,651 (1,879) 56,479 1,347 804,079 10,212,179 148,463 78,863 (1,719,617) - - - - - - - - - - - - 1,347 804,079 10,212,179 148,463 78,863 (1,719,617) 132,265$ 617,570$ 10,809,607$ 165,114$ 76,984$ (1,663,138)$ Debt Service FundsSpecial Revenue Funds
209
1081
City of Richmond
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2025
Total
Harbor Nonmajor
Measure C/J Navigation Governmental
Fund Fund Funds
REVENUES: