Agenda packet — Rocklin City Council, February 24, 2026 (part 1 of 4)

ROCKLIN CITY COUNCIL
City Council Regular Meeting
City Hall - Council Chambers
3970 Rocklin Rd. Rocklin, CA
95677
Website:
www.rocklin.ca.us
February 24, 2026

CONSOLIDATED MEETING AGENDA
City of Rocklin City Council
Public Financing Authority
Closed Session 5:30 p.m.

General Session 6:00 p.m.

DAVID BASS,

Mayor

BILL HALLDIN,

Vice Mayor

KEN BROADWAY,

Council Member

JILL GAYALDO,

Council Member

GREG JANDA,

Council Member

ALY ZIMMERMANN,

City Manager

MATTHEW MCOMBER,

City Attorney

DANIEL CHOE,

City Treasurer

AVINTA SINGH,

City Clerk

HOW TO PARTICIPATE
The City of Rocklin welcomes your interest and involvement in the City's legislative process. The City Council has established a procedure for addressing the Council. Persons wishing to address the City Council are asked to voluntarily complete and submit a speaker identification sheet to the City Clerk.

Speaker identification sheets are available near the entrance of the Council Chambers. For items listed on the agenda, any person may address the City Council at the time the item is considered. Speakers are requested to restrict their comments to the item as it appears on the agenda and stay within the required three-minute time limit. The Brown Act does not permit the City Council to take action on items brought up under Citizens Addressing the City Council.

WRITINGS RECEIVED AFTER AGENDA POSTING
Any writing or documents related to an agenda item for this meeting provided to the City Council, Public Financing Authority or Successor Agency will be made available for public inspection at City Hall, 3970 Rocklin Road, Rocklin, during normal business hours.

AMERICANS WITH DISABILITIES ACT
In compliance with the Americans with Disabilities Act, if you require special assistance to participate in this meeting or other services in conjunction with this meeting, including receiving notices, agendas, and other writings in appropriate alternative formats, please contact our office at (916) 625- 5560 at least 48 hours prior to the meeting or time when services are needed so that we may make every reasonable effort to accommodate you.

LEVINE ACT PROVISIONS
The Levine Act requires a party (or the party’s agent(s)) to a proceeding before the City of Rocklin that
involves any action or consideration to their contract, license, permit, or other entitlement for use, to
disclose any campaign contribution made to a City elected or appointed officer (including Councilmembers, Planning Commissioners, and members of other City boards and commissions) totaling more than $500 within the 12 months before the City decision.

AUDIO/VISUAL PRESENTATIONS
If making a presentation regarding an agenda item, all audio/visual materials must be submitted to the City Clerk or Secretary at least 72 hours in advance. The City is not responsible for the compatibility or operation of non-city devices or the functionality of non-city presentations.

City Council Regular Meeting Agenda of February 24, 2026 1 CS1.

Pursuant to Government Code Section 54957, Public Employee Performance Evaluation: City Manager
CS2.

Pursuant to Government Code Section 54957, Public Employee Performance Evaluation: City Attorney

POSTING OF AGENDA
In accordance with Government Code Section 54954.2(a) this agenda was posted on the City's bulletin board at City Hall, 3970 Rocklin Road, Rocklin, and City of Rocklin website at www.rocklin.ca.us.

AGENDA

MEETING

INSTRUCTIONS
The public may listen to audio or view the meeting via live stream at https://www.rocklin.ca.us/agendas-minutes
.

For those that do not plan on attending in person, but wish to make a public comment during the meeting, public comments will be accepted in email form until 3:00 p.m. on the meeting day. Public comments should be submitted to the City Clerk at [email protected]
. Emailed public comments will be distributed to City Council and treated as a public record.

CALL TO ORDER

ROLL CALL

PUBLIC COMMENT ON CLOSED SESSION

CLOSED SESSION

REPORT OUT OF CLOSED SESSION

CALL GENERAL SESSION TO ORDER

PLEDGE OF ALLEGIANCE

AGENDA REVIEW

CITIZENS ADDRESSING THE CITY COUNCIL
This is an opportunity for public comment on matters not listed on the agenda. Public comment on items listed on the agenda will be taken when the agenda item is called.

REPORTS FROM CITY COUNCIL AND CITY MANAGER
Reports from the City Council will include any AB1234 Reports.

City Council Regular Meeting Agenda of February 24, 2026 2 C1.

Minutes of the February 10, 2026, Regular Meeting of the City Council C2.

Proclamation Honoring the Retirement of Rocklin Area Chamber of Commerce CEO Robin Trimble
C3.

Proclamation Recognizing the Sierra College Women's State Champion Soccer Team
C4.

Fiscal Year 2024/25 Annual Comprehensive Financial Report and GANN Appropriations Limit Schedule
C5..

Fiscal Year 2024/25 Single Audit Report
C6.

Transportation Development Fund Claims

CONSENT CALENDAR
Items C1 - C8 of the Consent Calendar are considered and acted upon by one Motion of the City Council. Item C9 (PFA1) is concurrently considered and acted upon by the Public Financing Authority of the City of Rocklin. Anyone may request an item be removed for separate consideration.

Recommendation:

Approve the Minutes of the February 10, 2026, Regular
Meeting of the City Council.

Recommendation:

Approve a Proclamation Honoring Robin Trimble for Over 20 Years of Service as the Chief Executive Officer of the Rocklin Area Chamber of Commerce, and Designate the Mayor to Sign the Proclamation on Behalf of the City Council.

Recommendation:

Approve a Proclamation
Recognizing the Sierra College
Women's State Champion Soccer Team,
and Designate the Mayor to Sign the
Proclamation on Behalf of the City Council.

Recommendation:

Adopt a Resolution of the City Council of the City of Rocklin Accepting the Annual Comprehensive Financial Report and GANN Appropriations Limit Schedule for the Fiscal Year Ended June 30, 2025.

Recommendation:

Adopt a Resolution of the City Council of the City of Rocklin Accepting and Approving the Single Audit Report for the Year Ended June 30, 2025.

Recommendation:

Adopt a Resolution of the City Council of the City of Rocklin Authorizing the City Manager to Submit Claims for Local Transportation and State Transit Assistance Funds.

City Council Regular Meeting Agenda of February 24, 2026 3 C7.

Environmental Systems Research Institute, Inc. Agreement C8.

Rocklin Road/I-80 Interchange Bicycle and Pedestrian Overcrossing Community Identification Sign
C9.

PFA1: Rocklin Public Financing Authority's Audited Basic Financial Statements for Fiscal Year 2024/25
P1.

Proclamation
Honoring the Retirement of Rocklin Area Chamber of Commerce CEO Robin Trimble
P2.

Proclamation Recognizing the Sierra College Women's State Champion Soccer Team
D1.

Engineering and Traffic Survey

Recommendation:

Adopt a Resolution of the City Council of the City of Rocklin Approving and Authorizing the City Manager to Execute a Software Solutions Agreement with Environmental Systems Research Institute, Inc.

Recommendation:

Adopt a Resolution of the City Council of the City of Rocklin Approving the Transportation Art/Community Identification Proposal for an Identification Sign on the Rocklin Road/I-80 Interchange Bicycle and Pedestrian Overcrossing and Authorizing City Staff to Submit the Proposal to the Caltrans District 3 Transportation Art Coordinator for Preliminary Approval.

Recommendation:

Adopt a Resolution of the Rocklin Public Financing Authority Accepting the Audited Basic Financial Statements for the Fiscal Year Ended June 30, 2025.

PRESENTATIONS
In addition to those items listed on the agenda, the Mayor may add additional ceremonial matters.

DISCUSSION ITEMS
Discussion Items include oral presentations including those recommending "receive and file".

Recommendation:

Introduce, Waive the Full Reading and Read By Title Only, an Ordinance of the City Council of the City of Rocklin Amending Chapter 10.11 of Title 10 of the Rocklin Municipal Code Related to Speed Limits within the City of Rocklin.

City Council Regular Meeting Agenda of February 24, 2026 4 D2.

Establishment of a Fire and Arson Investigation Unit

Recommendation:

Introduce, Waive the Full Reading and Read By Title Only, an Ordinance of the City Council of the City of Rocklin Establishing a Fire and Arson Investigation Unit Within the Rocklin Fire Department and Authorizing Designated Personnel to Exercise Peace Officer Powers Pursuant to California Penal Code Section 830.37.

FUTURE AGENDA ITEMS

ADJOURNMENT
City Council Regular Meeting Agenda of February 24, 2026 5 City Council
Staff Report

Subject:

Minutes of the February 10, 2026, Regular Meeting of the City Council Date:

February 24, 2026
Submitted By:

Avinta Singh, City Clerk
Department:

City Clerk's Office
Recommendation:

Approve the Minutes of the February 10, 2026, Regular Meeting of the City Council.

Item Number C1.

ATTACHMENTS:

1. Draft City Council Meeting Minutes of February 10, 2026 6 DRAFT Meeting Minutes of February 10, 2026 Rocklin City Council 1 | P a g e

ROCKLIN CITY COUNCIL

City Council Regular Meeting
City Hall – Council Chambers
3970 Rocklin Rd. Rocklin, CA 95677
Website: www.rocklin.ca.us

February 10, 2026
Closed Session 5:30 p.m.

General Session 6:00 p.m.

MEETING MINUTES
-DRAFT-

CALL TO ORDER

Mayor Bass called the meeting to order at 5:30 p.m.

ROLL CALL

Present: Councilmembers Ken Broadway, Jill Gayaldo, Bill Halldin, Greg Janda Mayor David Bass

Absent: None

PUBLIC CLOMMENT ON CLOSED SESSION

There were none.

Members of the City Council left the Council Chambers and convened Closed Session at 5:32 p.m.

CLOSED SESSION

CS1. Pursuant to Government Code Section 54956.9(d)(1), Conference with Legal Counsel, Existing Litigation: Hogan v. City of Rocklin, et al., Placer County Superior Case No. SVC0051563, E.D. Cal. Case No. 2:24-cv-03566-JAM-SCR

CS2. Pursuant to Government Code Section 54957, Public Employee Performance Evaluation: City Manager

CS3. Pursuant to Government Code Section 54957, Public Employee Performance Evaluation: City Attorney

7 DRAFT Meeting Minutes of February 10, 2026 Rocklin City Council 2 | P a g e

Members of the City Council returned to the Council Chambers at 6:05 p.m.

REPORT OUT OF CLOSED SESSION

There was no reportable action on CS1; Mayor Bass reported that the City Council would return to Closed Session on items CS2 and CS3 following General Session.

CALL GENERAL SESSION TO ORDER

Mayor Bass called the meeting to order at 6:05 p.m.

PLEDGE OF ALLEGIANCE

Mayor Bass led the pledge of allegiance.

AGENDA REVIEW

There were no changes to the agenda.

CITIZENS ADDRESSING THE CITY COUNCIL

Mr. Walter Moore and Mr. Pete McDonald invited members of the City Council to attend the opening night ceremonies for the Tri City Little League on March 6, 2026.

Mr. Kevin Shaw addressed the City Council expressing concerns about pedestrian and bicycle safety near Sier ra College Boulevard, and urged that sidewalk connectivity be encouraged during ongoing construction due to heavy traffic in the area.

Council Member Broadway noted that sidewalk improvements were planned for the area with both current and future development projects.

REPORTS FROM CITY COUNCIL AND CITY MANAGER

Vice Mayor Halldin reported attendance at the Roseville Area Chamber of Commerce’s Installation Dinner and congratulated Adrian Guerrero on being selected as the 2026 Chair and Sharon Brown on receiving the Lifetime Service Award.

Council Member Gayaldo reported attendance at the National Conference of Regions held in Washington D.C. which she attended on behalf of the Sacramento Area Council of Governments (SACOG), and shared that she presented a proclamation on the Mayor’s behalf to Steve Taylor in recognition of his 28 years of service as head basketball coach at Rocklin High School and his contributions to local youth and the community.

Council Member Broadway participated in mock interviews with students at Victory High School, and shared that he attended the ribbon cutting ceremony for the Secret Garden at the Rocklin Public Library.
8 DRAFT Meeting Minutes of February 10, 2026 Rocklin City Council 3 | P a g e

City Manager Aly Zimmermann shared that City facilities will be closed on Monday, February 16, 2026, in observance of Presidents Day.

CONSENT CALENDAR

C1. Minutes of the January 27, 2026, Regular Meeting of the City Council Action: Approved the Minutes of the January 27, 2026, Regular Meeting of the City Council.

C2. Five Star General Development Plan (Second Reading of Ordinance) Action: Adopted Ordinance No. 1198 of the City Council of the City of Rocklin Amending the Five Star General Development Plan (Ordinance No. 579) to Allow School Uses Within Area 15A, Subject to the Review and Approval of a Conditional Use Permit.

C3. Amendments to the List of Appointments to Regional Boards and Committees for Calendar Year 2026
Action: Adopted Resolution No. 2026-013 of the City Council of the City of Rocklin Amending the List of Appointments to Various Joint Power Agencies, Placer County Committees, Regional Boards, and the City's Architectural Review Committee.

C4. Amendments to the List of Appointments to Various Subcommittees, Committees and Work Groups for Calendar Year 2026
Action: Adopted Resolution No. 2026-014 of the City Council of the City of Rocklin Amending the List of Appointments to Various Subcommittees, Committees and Work Groups.

C5. Amendment No. 1 to the Contract for Services with 19six Architects Action: Adopted Resolution No. 2026-015 of the City Council of the City of Rocklin Ratifying and Authorizing the City Manager to Execute Am endment No. 1 to the Contract for Services with 19six Architects.

C6. BUILD Grant Application
Action: Adopted Resolution No. 2026-016 of the City Council of the City of Rocklin Authorizing the City Manager to Apply for the United States Department of Transportation BUILD Grant, Commit Matching Funds, and Accept Grant Award.

C7. Quarterly Treasurer's Report
Action: Received the Treasure r's Report for the Quarter Ending December 31, 2025.

9 DRAFT Meeting Minutes of February 10, 2026 Rocklin City Council 4 | P a g e

C8. Sunset Whitney Connector Bridge
Action: Adopted Resolution No. 2026-017 of the City Council of the City of Rocklin Approving and Authorizing the City Manager to Execute a Purchase Agreement with Contech Engineered Solutions, LLC.

PUBLIC COMMENT

There were none.

Motion to approve Consent Calendar Item Nos. C1 through C8, by Council Member Halldin, seconded by Council Member Gayaldo. Passed by the following vote:

Vote for Consent Item Nos. C1, C3 through C8:

Ayes: Councilmembers Broadway, Gayaldo, Halldin, Janda Mayor Bass
Noes: None

Absent: None
Abstain: None

Vote for Consent Item No. C2

Ayes: Councilmembers Gayaldo, Halldin, Janda
Noes: Council Member Broadway

Absent: None
Abstain: Mayor Bass

FUTURE AGENDA ITEMS

There were none.

Members of the City Council left the Council Chambers and reconvened Closed Session at 6:20 p.m.

Members of the City Council returned to the Council Chambers at 7:00 p.m. with no reportable action on CS2 or CS3.

10 DRAFT Meeting Minutes of February 10, 2026 Rocklin City Council 5 | P a g e

ADJOURNMENT

Mayor Bass adjourned the meeting at 7:00 p.m.

_____________________________
David Bass, Mayor

This is to certify that the foregoing is a true and
correct copy of the minutes of February 10, 2026
as approved by the Rocklin City Council.

_______________________________
Avinta Singh, City Clerk
11 City Council
Staff Report

Subject:

Proclamation Honoring the Retirement of Rocklin Area Chamber of Commerce CEO Robin Trimble
Date:

February 24, 2026
Submitted By:

Avinta Singh, City Clerk
Department:

City Clerk's Office
Recommendation:

Item Number C2.

ATTACHMENTS:

1. Proclamation Honoring Robin Trimble
12 Issued by City Council

Proclamation

WHEREAS, the Rocklin Area Chamber of Commerce has long served as a vital partner in supporting local businesses, fostering economic development, and strengthening the sense of community throughout the City of Rocklin; and

WHEREAS, Robin Trimble has served with distinction as Chief Executive Officer of the Rocklin Area Chamber of Commerce for nearly 21 years, providing consistent and dedicated leadership that has helped shape Rocklin’s vibrant and thriving local economy; and

WHEREAS, during her tenure, Robin Trimble has guided the Chamber through significant growth, expanded membership, enhanced programs like Leadership Rocklin, and strengthened financial stability, positioning the organization for continued success into the future; and

WHEREAS, Robin Trimble has elevated the Chamber’s role as a cornerstone of community connection through the coordination and continued success of Rocklin’s signature annual events, including the State of the City, Hot Chili & Cool Cars, and the beloved Tree Lighting Ceremony, which bring residents, businesses, and visitors together each year and contribute to Rocklin’s strong civic pride and vibrant local culture;

WHEREAS, Robin Trimble has supported Rocklin’s remarkable transformation over the past two decades, including the growth of the city’s education sector, the expansion of workforce opportunities, and the development of a strong and diverse local economy now home to nearly 2,800 businesses; and

WHEREAS, Robin Trimble has been a steadfast champion for Rocklin, known for bringing people together, promoting collaboration, and serving as a convener, coach, and advocate for the community’s continued progress; and

WHEREAS, Robin Trimble’s leadership has made a lasting impact on Rocklin’s business community, residents, and future, and her retirement in early 2026 marks the close of an extraordinary chapter of service.

NOW, THEREFORE, BE IT PROCLAIMED that the City Council of the City of Rocklin hereby recognizes and honors Robin Trimble for her 21 years of outstanding service as CEO of the Rocklin Area Chamber of Commerce, and expresses its deepest gratitude for her dedication, leadership, and commitment to the City of Rocklin.

___
David Bass, Mayor Dated: February 24, 2026
ATTEST:

Avinta Singh, City Clerk
13 City Council
Staff Report

Subject:

Proclamation Recognizing the Sierra College Women's State Champion Soccer Team
Date:

February 24, 2026
Submitted By:

Avinta Singh, City Clerk
Department:

City Clerk's Office
Recommendation:

Approve a Proclamation
Recognizing the Sierra College Women's State Champion Soccer Team,
and Designate the Mayor to Sign the Proclamation on Behalf of the City Council.

Item Number C3.

ATTACHMENTS:

1. Proclamation Recognizing the Sierra College State Champion Women's Soccer Team 14 Issued by City Council

Proclamation
WHEREAS, the Sierra College Women’s Soccer Team achieved a historic milestone by capturing the first 3C2A State Championship in program history, defeating Golden West College by a score of 2–0 on Sunday, December 7, 2025, at Saddleback College in Mission Viejo; and

WHEREAS, after years of perseverance and competitive excellence, the Wolverines delivered a dominant championship performance, controlling possession and tempo throughout the match and demonstrating exceptional teamwork, preparation, and resolve on the sport’s biggest stage; and

WHEREAS, the team’s championship victory was marked by standout performances, including goals by Addison Johnson and Olivia Sisto, and a complete effort from players across the field, reflecting a collective commitment to excellence; and

WHEREAS, sophomore midfielder Josie Young was named Tournament Most Valuable Player, recognizing her pivotal role throughout the postseason and her leadership, versatility, and impact on both sides of the ball; and

WHEREAS, the Wolverines concluded their championship season with an outstanding overall record of 19-2-4, an 11-game winning streak, and an unbeaten run dating back to October 10, and a Big 8 Conference Championship, exemplifying sustained excellence and competitive integrity; and

WHEREAS, Head Coach Jason Gantt and the coaching staff provided exceptional leadership and mentorship, fostering a culture of discipline, unity, and resilience that propelled the program to its first state title; and

WHEREAS, the accomplishments of the Sierra College Women’s Soccer Team bring pride to the college and the community, and serve as an inspiration to student-athletes throughout the region.

NOW, THEREFORE, BE IT PROCLAIMED that the City Council of the City of Rocklin hereby recognizes and congratulates the Sierra College Women’s Soccer Team on winning the 3C2A State Championship and commend the players, coaches, and staff for their historic achievement.

_
David Bass, Mayor Dated: February 24, 2026

ATTEST:

Avinta Singh, City Clerk
15 City Council
Staff Report

Subject:

Fiscal Year 2024/25 Annual Comprehensive Financial Report and GANN Appropriations Limit Schedule
Date:

February 24, 2026
Submitted By:

Angela Doyle, Senior Accountant
Diane Ahn, Accounting Officer
Daniel Choe, Administrative Services Deputy Director
Department:

Administrative Services - Finance
Recommendation:

Adopt a Resolution of the City Council of the City of Rocklin Accepting the Annual Comprehensive Financial Report and GANN Appropriations Limit Schedule for the Fiscal Year Ended June 30, 2025.

Background:

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Rocklin Municipal Code, Title 2, Section 2.28.030 requires an annual audit of all City financial transactions by an independent auditor and the submission of an audit report to the City Council. Additionally, the California Constitution Article 13B Section 1.5 requires a review of the annual appropriations limit (GANN) as part of an annual financial audit.

The City of Rocklin contracts with Chavan & Associates LLP, a firm of Certified Public Accountants licensed to practice in the State of California, to perform the annual independent audit and prepare the Annual Comprehensive Financial Report (ACFR), included as Attachment 2. The following are the financial highlights for the fiscal year ended June 30, 2025, as reported in the ACFR.

Government-Wide
Government-wide revenues represent all revenues of the City as a whole, across all governmental activities, and are not limited to the General Fund.

As of the close of the fiscal year (FY) 2024/25, the City's total assets and deferred outflows were greater than its liabilities and deferred inflows by $438.8 million. This amount, known as the City's net position, increased by $10.9 million (2.6%) from the prior year total of $427.9 million. The net position is a key measure of the City’s overall financial condition and its ability to meet future financial obligations.

Item Number C4.

16 Government-Wide General Revenues increased by 6.95%, rising from $82.2 million to $87.9 million. These revenues include major sources such as property taxes, sales and use taxes, gas tax, transient occupancy tax, motor vehicle fees, franchise fees, impact fees, investment earnings, and other revenues. During FY 2024/25 property taxes grew by 4.9% and investment earnings increased by 19.3%. Sales and use tax revenues were relatively flat, decreasing slightly by 0.4%, while impact fee revenues significantly increasing by 108.8%.

Program Revenues, which are tied to specific services and grants, increased by $3.0 million (15.8%) compared to the prior year. In total, combined Government-Wide revenues, both General and Program revenues, were approximately $110.2 million for FY 2024/25.

General Fund
The General Fund reflects the City’s primary operating fund and is used to account for core municipal services such as public safety, parks, recreation, and general administration. Unlike the government-wide totals, which include all governmental activities and funds, the General Fund focuses only on operating resources that are not restricted to specific purposes.

General Fund revenues totaled $70.1 million, and expenditures totaled $72 million for FY 2024/25. In addition, the General Fund received $6.5 million in transfers from other funds and transferred out $1.3 million to support other programs and capital needs. After accounting for these transfers, the General Fund's fund balance grew by $3.3 million for the year.

The increase in fund balance during FY 2024/25 was mainly due to higher-than-anticipated revenues and lower overall spending. Revenue growth was driven primarily by stronger property tax collections and increased interest earnings. Expenditures were lower in part due to the timing of planned project and program costs, with some activities extending into the subsequent fiscal year and related spending to occur as work progresses.

Financial Audit
The auditor's letters to the City Council (Attachments 4 and 5) are required by audit standards, and they convey there were no difficulties encountered performing the audit or disagreements between the auditors and City staff, upcoming accounting pronouncements, and other information relative to the audited financial statements.

GANN APPROPRIATIONS LIMIT
Under Article XIIIB of the California Constitution (the GANN Spending Limitations Initiative), California governmental agencies are restricted in the amount of annual appropriations derived from tax proceeds. Section 1.5 of Article XIIIB, effective July 1, 1990, requires a limited procedures review of the appropriation limit as part of the annual audit. The audits for the fiscal year ending June 30, 2025, reviewed the City’s GANN Appropriation Limit, and no exceptions were noted.

Staff recommends the City Council accept the ACFR and GANN Appropriations Limit Schedule for the fiscal year ended June 30, 2025, and the auditor's letters to the City Council for the following reasons:

An annual audit is required by the Rocklin Municipal Code, and federal and state grant requirements.

The public accounting firm of Chavan & Associates, LLP has audited the City's FY 2024/25 financial statements and has issued an unqualified ("clean") auditor's opinion 17 that the financial statements are fairly presented in accordance with generally accepted accounting principles, as well as there were no reported material weaknesses or significant deficiencies.

The auditor's letters to the City Council reflects no significant audit issues or disagreements with management relative to the audit.

Chavan & Associates, LLP has reviewed the GANN appropriations limit for the fiscal year ended June 30, 2025, per established procedures, and no exceptions were noted.

Fiscal Impact:

There is no direct fiscal impact to the General Fund from the staff recommendation.

ATTACHMENTS:

1. Resolution

2. Resolution Exhibit A -
FY 2024/25 Annual Comprehensive Financial Report

3. Resolution Exhibit B - FY 2024/25 GANN Report

4. Governance Audit Letter

5. Management Letter
18 Resolution No. 2026- February 24, 2026 Page 1 of 1
1 RESOLUTION NO. 2026-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROCKLIN

ACCEPTING THE ANNUAL COMPREHENSIVE FINANCIAL REPORT

AND GANN APPROPRIATIONS LIMIT SCHEDULE FOR THE
FISCAL YEAR ENDED JUNE 30, 2025

WHEREAS, Chavan & Associates LLP performed an independent financial audit for the City of Rocklin for fiscal year ended June 30, 202 5, and prepared the Annual Comprehensive Financial Report (ACFR); and

WHEREAS, Chavan & Associates LLP has issued an unqualified (“clean”) auditor’s opinion, with no reported material weaknesses or significant deficiencies; and

WHEREAS, Chavan & Associates LLP reviewed the (GANN) appropriations limit for the fiscal year ended June 30, 202 5, per established procedures, and no exceptions were noted.

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

Section 1 . The Annual Comprehensive Financial Statements and Gann Appropriations Limit Schedule for the fiscal year ended June 30, 2025, attached hereto as Exhibit “A” and Exhibit “B,” are accepted.

PASSED AND ADOPTED this 24th day of February, 2026, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

____________________________________
David Bass, Mayor

ATTEST:

___________________________
Avinta Singh, City Clerk
19 20

This page is intentionally blank

21 Annual Comprehensive Financial Report

For the Fiscal Year Ended June 30, 2025

Prepared by

ADMINISTRATIVE SERVICES DEPARTMENT

FINANCE DIVISION

Daniel Choe, Deputy Director of Administrative Services/City Treasurer Diane Ahn, Accounting Officer
Angela Doyle, Senior Accountant
Taryn Purpura, Accountant II

In conjunction with Department Staff

22 This page is intentionally blank

23 Vision Statement

To become a city that provides its citizens with
exceptional quality of life, while maintaining its
small town sense of community.

24 This page is intentionally blank

25 CITY OF ROCKLIN

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025

TABLE OF CONTENTS

INTRODUCTORY SECTION
Transmittal Letter ................................................................................................................................................... 1 Organizational Chart .......................................................................................................... .................................... 6 Directory of City Officials ...................................................................................................................................... 7 Location Map .................................................................................................................. ....................................... 8 GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................................ 9

INANCIAL SECTION
Independent Auditor’s Report .............................................................................................................................. 13 Management’s Discussion and Analysis (Required Supplementary Information) ............................................... 18

Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position .................................................................................................... .................... 31 Statement of Activities ...................................................................................................... ...................... 32 Fund Financial Statements
Governmental Funds:

Balance Sheet ................................................................................................................ .................... 34 Reconciliation of the Government Funds Balance Sheet to the Government-Wide Financial Statement of Net Position ....................................................... 36 Statement of Revenues, Expenditures and Changes in Fund Balances ............................................ 37 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities .......................................................................................................... 39 Proprietary Funds (Internal Service Funds):

Statement of Net Position ................................................................................................................. 40 Statement of Revenues, Expenses, a nd Changes in Fund Net Position ............................................ 41 Statement of Cash Flows ...................................................................................................... ............ 42 Fiduciary Funds:

Statement of Fiduciary Net Position .......................................................................................... ....... 43 Statement of Changes in Fiduciary Net Position .............................................................................. 44

Notes to the Basic Financial Statements
Note 1 – Significant Accounting Policies .................................................................................. ........... 47 Note 2 – Cash and Investments ............................................................................................. ................ 61 Note 3 – Accounts Receivable .............................................................................................. ................ 65 Note 4 – Leases Receivable ................................................................................................ ................... 66 Note 5 – Interfund Transactions ........................................................................................... ................. 66 Note 6 – Loans Receivable ................................................................................................. ................... 68 Note 7 – Capital Assets ................................................................................................... ...................... 70 Note 8 – Noncurrent Liabilities ........................................................................................... .................. 71 Note 9 – Net Position/Fund Balance ........................................................................................ ............. 73 Note 10 – Risk Management ................................................................................................... ................ 77 Note 11 – Retirement Plans .................................................................................................. ................... 78 Note 12 – Other Postemployment Benefits Plan ................................................................................ ..... 83 Note 13 – Commitments and Contingencies ........................................................................................... 89 Note 14 – Special Tax Assessment Districts .................................................................................. ......... 90 Note 15 – Successor Agen cy Trust (Former RDA) ................................................................................. 93

26 CITY OF ROCKLIN

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis) – General Fund ........................................................................................ 96 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis) – SB325 Sales Tax ............................................................................. ..... 97 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis) – Low-a nd-Moderate Income Housing Fund .......................................... 98 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis) – Streets Grants .............................................................................. ......... 99 Schedule of Pension Contributions ............................................................................................. ....................... 100 Schedule of Changes in Net Position Liabilities, Net Pension Liabilities and Proportionate Shares ................. 101 Schedule of Contributions for Other Postemployment Benefits ........................................................................ 103 Schedule of Changes in Net OPEB Liability ...................................................................................................... 104

UPPLEMENTARY INFORMATION
Combining Nonmajor Governmental Funds:

Combining Balance Sheet ...................................................................................................... ...................... 107 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..................................... 108 Combining Special Revenue Nonmajor Governmental Funds:

Combining Balance Sheet ...................................................................................................... ...................... 110 Statement of Revenues, Expenditures and Changes in Fund Balances........................................................ 117 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis) ...................................................................................................... 124 Combining Capital Projects Nonmajor Governmental Funds:

Combining Balance Sheet ...................................................................................................... ...................... 144 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..................................... 147 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis) ...................................................................................................... 150 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis) – Capital Projects Major Governmental Fund – Traffic Circulation Impact Fee Fund .......................................................................................... ........ 160 Combining Permanent Nonmajor Governmental Funds:

Combining Balance Sheet ...................................................................................................... ...................... 162 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..................................... 163 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis) ...................................................................................................... 164 Combining Debt Service Nonmajor Governmental Funds:

Combining Balance Sheet ...................................................................................................... ...................... 168 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..................................... 169 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis) ...................................................................................................... 170 Combining Internal Service Funds:

Statement of Net Position .................................................................................................... ........................ 174 Statement of Revenues, Expenses, a nd Changes in Fund Net Position ....................................................... 175 Statement of Cash Flows ...................................................................................................... ....................... 176

27 CITY OF ROCKLIN

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025

Combining Custodial Funds:

Combining Statement of Fiduciary Net Position ................................................................................ ......... 178 Combining Statement of Chang es in Fiduciary Net Position ...................................................................... 181

TATISTICAL SECTION
Net Position by Component ................................................................................................................................ 188 Changes in Net Position ..................................................................................................................................... 190 Fund Balances of Governmental Funds .............................................................................................................. 194 Changes in Fund Balances of Governmental Funds ........................................................................................... 196 Assessed Value of Taxable Property .................................................................................................................. 198 Direct and Overlapping Property Tax Rates ....................................................................................................... 199 Principal Property Taxpayers ............................................................................................................................. 200 Direct and Overlapping Debt .............................................................................................................................. 201 Pledged-Revenue Coverage ................................................................................................................................ 202 Ratio of Outstanding Debt by Type .................................................................................................................... 203 Principal Employers ........................................................................................................................................... 204 Operating Indicators by Function ....................................................................................................................... 205 Capital Asset Statistics by Function ................................................................................................................... 206

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29 INTRODUCTORY SECTION
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31 City of Rocklin Transmittal Letter

CITY OF ROCKLIN
3970 Rocklin Road
Rocklin, California 95677
Telephone (916) 625-5000
Fax (916) 625-5095
Feb
ruary 24, 2026
To the H
onorable Mayor, Members of the City Council, and Citizens of Rocklin, California:

We are pleased to present the Annual Comprehensive Financial Report ( ACFR) of the City of Rocklin, California (the City), for the fiscal year ended June 30, 2025, as required by Chapter 2.28 of the Rocklin Municipal Code. Although formally submitted to the Mayor and City Council, t he ACFR is published to provide financial information to the residents of Rocklin, the investment community, the general public, and other interested parties.

This letter of transmittal is designed to be read with and complement the Management’s Discussion and Analysis (MD&A), which reports on the financial highlights of the City and provides additional analysis on the variances and trends reported as part of the financial statements. The MD&A can be found immediately following the independent auditors' report.

Management assumes all responsibility for the completeness and reliability of the information presented in this report. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and presents fairly the respective financial position and changes of the City, as of June 30, 2025.

The City contracted with Chavan & Associates, LLP , a firm of Certified Public Accountants licensed to practice in the State of California, to perform the annual independent audit. The auditors have issued an unmodified (“clean”) opinion on the City’s financial statements for the fiscal year ended June 30, 2025.

The independent auditor’s report is presented as the first item in the financial section of the report.

PROFILE OF THE CITY
The City of Rocklin was incorporated in 1893. The City is located on Interstate 80 and Highway 65, 20 miles northeast of Sacramento at the base of the Sierra F oothills in Placer County, California. Rocklin spans 20 square miles, and as of January 2025, had a population of 73,172, according to California Department of Finance. Rocklin is a preferred location to live, work, visit, and grow business because of its convenient

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32 City of Rocklin Transmittal Letter
location, excellent schools, and universities, abundant recreational opportunities, and highest commitment to public safety. In 2024, SafeWise ranked Rocklin among the top 10 safest cities in California, based on FBI crime statistics and demographic data. Rocklin is home to Sierra Community College and an accredited private institution of higher education, Jessup University . The City is a safe community with low crime rates, excellent schools, and beautiful parks, and continues to be a leader in providing excellent services and a high quality of life.

The City, with 268.5 budgeted full-time employees, provides the following public services: public safety (police and fire/EMS), planning, building, and engineering, construction and maintenance of streets, storm drains and other infrastructure, parks and recreation, and general administrative services. The City maintains a website at https:// www.rocklin.ca.us, which provides online services and extensive information about the City.

The City of Rocklin is a General Law City operating under the City Council/Manager form of government, which vests authority in an elected City Council. The City Council is the City’s legislative and policymaking body, responsible for appointing the following key positions: City Manager, City Attorney, City Treasurer, and City Clerk. Additionally, the City Council appoints members to the following committees and commissions: Architectural Review Committee, Arts Commission, Board of Appeals, Community Recognition Commission, Investment Advisory Committee, Parks and Recreation Commission, and Planning Commission. The City Manager oversees the overall administration of the City.

The City Council also acts as the Board of Directors for the Rocklin Public Financing Authority (RPFA). The RPFA was formed as a joint powers authority between the City and the former Rocklin Redevelopment Agency to serve as a financing mechanism for various capital projects. For financial reporting purposes , the RPFA is considered a component unit of the City, and is incorporated within this document. Additional information on this legally separate entity can be found in Note 1 of the notes to the financial statements.

The City has established a Successor Agency, which replaced the former Rocklin Redevelopment Agency, dissolved in 2012. The Successor Agency is not a component unit of the City and is , instead, a separate legal entity overseen by the Placer County Consolidated Oversight Board and the California State Department of Finance . The City’s role as the Successor Agency is fiduciary in nature. The Successor Agency is reported as a private-purpose trust fund, which is a fiduciary fund type. Additional information can be found in Note 15 of the notes to the financial statements.

Through the fiscal year ended June 30, 2025, the City prepared and adopted an annual budget that served as the foundation of the City’s financial planning and financial control. Budget authority was established at the fund level, and the City Council appropriated funds annually to provide public services. The budget included the a ctivities of the General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds, Custodial Funds, and Internal Service Funds. Each year through fiscal year 2024/2025 , the City Manager submitted a proposed budget to the City Council by May 15. The City Council review ed the proposed budget and could make revisions during a public workshop, with the final budget adopted by June 30, in accordance with Chapter 3.28 of the Rocklin Municipal Code.

Beginning with the fiscal year 2025/2026 budget cycle, the City transitioned to a biennial budget to promote long-term fiscal planning, improve alignment with the City Council’s two-year strategic planning framework, and enhance operational efficiency. With this transition, the City Council ad opts a budget covering two subsequent fiscal years (i.e., fiscal year 2025/2026 and fiscal year 2026/2027). Budget authority continues to be established at the fund level, and the City Council appropriate funds through

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33 City of Rocklin Transmittal Letter
the biennial budget. A copy of the adopted budget, including a digital budget book, is available on the City’s website and may be downloaded or viewed interactively at : https://www.rocklin.ca.us/city- budgets.

The City has established a comprehensive framework of internal controls designed to protect the assets of the government from loss, theft, or misuse. This framework is designed so accurate accounting data is compiled to allow for the preparation of financial statements consistent with Generally Accepted Accounting Principles (GAAP). Internal controls provide reasonable, but not absolute assurance these objectives are met. The concept of reasonable assurance recognizes that the cost of internal controls should not exceed the benefits and that decisions often require the use of estimates and judgments by management.

ECONOMIC FACTORS AND OUTLOOK
Looking ahead to fiscal year 2025/2026 and fiscal year 2026/2027, the City of Rocklin’s economic outlook reflects continued stability with moderated growth amid evolving consumer behavior. While p opulation growth is expected to remain modest, broader economic conditions are anticipated to temper revenue growth.

As of January 2025, the City’s population was estimated at 73,172, reflecting a 2 percent increase from the prior year. Population growth is projected to remain steady over the near term and consistent with recent trends.

Property tax revenues are projected to increase modestly over the next two fiscal years, reflecting limited assessed valuation growth on existing properties and fewer higher- value home sales. Following a 5 percent increase in fiscal year 2024/2025, property tax revenues are projected to total approximately $26.7 million in fiscal year 2025/2026, a 2 percent increase over prior- year actuals, with similar incremental growth anticipated in fiscal year 2026/2027. These projections align with current market conditions indicating stabilization in home values and reduced transaction activity.

Sales tax revenues are expected to remain soft in fiscal year 2025/2026 and fiscal year 2026/2027 due to broader economic trends and shifts in consumer spending. After a slight decline in fiscal year 2024/2025, consumer spending is anticipated to remain cautious as households prioritize essential and non -taxable goods amid higher debt levels, lower personal savings, and continued price sensitivity. As a result, sales tax revenues are projected at approximately $21.0 million in fiscal year 2025/2026, a decrease of about 5 percent from fiscal year 2024/2025 actuals, with continued softness anticipated in fiscal year 2026/2027.

In response to these conditions, the City’s financial planning for fiscal year 2025/26 and fiscal year 2026/27 emphasizes conservative revenue assumptions, ongoing monitoring of economic indicators, and evaluation of alternative revenue sources to maintain service levels. The City will continue to focus on long-term fiscal sustainability through prudent bu dgeting, strategic use of reserves, and alignment of expenditures with available resources as economic conditions evolve.

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34 City of Rocklin Transmittal Letter

LONG TERM FINANCIAL PLANNING
The City consistently plans its budgets with a focus on its long-term needs. This is accomplished through conservative fiscal management practices , adherences to financial policies, and the establishment of dedicated funds to allocate City revenues toward long-term financial needs. These funds include:

Operating Reserves: The City maintains a General Fund operating reserve for the purpose of bridging a gap between projected revenue and expenditures during periods of significant revenue declines and/or expenditure growth and the City has adequate resources in case of emergency or unforeseen events. Pursuant to the City Council’s adopted policy, the City will maintain an operating reserve equal to 25 percent of the planned budgeted expenditures in the General Fund, excluding capital costs. As of June 30, 2025, the General Fund operating reserve is $16.9 million.

Building Reserve: The City maintains a building reserve to fund capital maintenance projects to sustain existing City facilities or to support the expansion of existing City facilities to address workforce needs of City services. As of June 30 2025, the Building Reserve is $2.1 million.

Disaster Contingency Reserve: The City maintains an emergency reserve of $1 million. This money is used in the event of a declared emergency, providing financial support for recovery efforts.

Fleet Replacement Fund: The City funds the cost of replacement vehicles and equipment over the asset's useful life. This ensures the systematic replacement of vehicles and equipment to keep the City’s vehicular fleet safely and properly operating. As of June 30, 202 5, the Fleet Replacement Fund is at $9.0 million, equivalent to 86 percent of the vehicle depreciation cost.

OPEB/Pension Trust Funds: The City maintains irrevocable IRS Section 115 trusts through the California Employers’ Retiree Benefit Trust (CERBT) and Public Agency Retirement Services (PARS) to prefund retiree health costs and address other post -employment benefit (OPEB) unfunded liabilities. As of June 30, 2025, the City’s total OPEB liability is $47.1 million, with an 88 percent funded status.

Park Infrastructure Reserve : The City established a park infrastructure reserve to fund capital improvement and maintenance projects to sustain existing park facilities and amenities. As of June 30, 2025, the park infrastructure reserve is $1.5 million.

Self-Insured Losses Reserve: The City maintains a self- insured losses reserve of $2 million. This money is used for losses not covered under existing insurance programs.

ACKNOWLEDGMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded the City the Certificate of Achievement for Excellence in Financial Reporting for its ACFR for the fiscal year ended June 30, 2024. This award recognizes reports that are clearly presented, well organized, and prepared in conformity with GAAP and applicable legal requirements, consistent with GFOA guidelines. This ACFR also meets the program’s requirements, and City will submit it to GFOA to determine its eligibility for the certificate.

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35 City of Rocklin Transmittal Letter
The City also received the GFOA Distinguished Budget Presentation Award for its fiscal year 2025/2026 and fiscal year 2026/2027 biennial budget, marking the second consecutive year the City has received this recognition. The award is granted to budgets that function effectively as policy documents, financial plans, operations guides, and communication tools.

The Administrative Services Department, particularly the Finance Division , takes great pride in the preparation of the ACFR. The professionalism, commitment, and effort of each employee in the Finance Division made this report possible. We also want to thank other employees in the Administrative Services Department and other City departments who contributed to the preparation of this report. We commend the City Council for their interest, support, and exemplary leadership in planning and conducting the financial operations of the City in a responsive and progressive manner.

Respectfully submitted,

Aly Zimmermann Tameka Usher Daniel Choe
City Manager Director of Administrative Services Deputy Director of Administrative Services/ City Treasurer

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36 Rocklin Residents
City Council
City Manager
City Attorney
Boards/
Commissions
City Clerk
Administrative Services Community
Development
Fire
Parks & Recreation
Police
Public Works
Finance
Human Resources
Information Technology
Payroll
Building & Permit Center
Code Enforcement
Engineering
Planning Services
Emergency Management
Fire Operations
Fire Prevention
Recreation
Parks
Operations
Investigations
Support Services
Environmental
Facilities
Fleet
Landscape
Traffic Signals & Lighting
Streets
City Manager’s Office
Economic Development
Housing

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37 City of Rocklin
Annual Comprehensive Financial Report
As of December 10, 2025
Directory of City Officials
City Council
Name Term Expires
David Bass, Mayor December 2028
Bill Halldin, Vice-Mayor December 2026
Greg Janda, Councilmember December 2028
Ken Broadway, Councilmember December 2028

Jill Gayaldo, Councilmember December 2026
City Officials
Name
Position
Aly Zimmermann City Manager
Andrew Keys Assistant City Manager
Matthew McOmber City Attorney
Avinta Madhukansh-Singh City Clerk
Daniel Choe City Treasurer

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38 City of Rocklin
CA
P
L
A
C
E
R
C
O
U
N
T
Y

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

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41 FINANCIAL SECTION

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43 16450 Monterey Road, Suite 5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com

INDEPENDENT AUDITOR’S REPORT

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

Report on Financial Statements

Opinion

We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Rocklin (the “City"), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

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

Basis for Opinions

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

Responsibilities of Management for the Financial Statements

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

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

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44 16450 Monterey Road, Suite 5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Auditor’s Responsibilities for the Audit of the Financial Statements

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

In performing an audit in accordance with GAAS and GAGAS, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and other required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements.

Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an

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45 16450 Monterey Road, Suite 5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
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 fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of m anagement and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual fund financial statements and schedules 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 comprehensive financial report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Report on Summarized Comparative Information

We have previously audited the City’s June 30, 2024 financial statements, and we expressed unmodified audit opinions on the respective financial statements in our report dated November 18, 2024. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2024, is consistent, in all material respects, with the audited financial statements from which it has been derived.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated November 30, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 internal control over financial reporting or on compliance.

That report is an integral part of an audit

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46 16450 Monterey Road, Suite 5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

November 30, 2025
Morgan Hill, California

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47 MANAGEMENT’S DISCUSSION

AND ANALYSIS

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48 City of Rocklin Management’s Discussion and Analysis

INTRODUCTION

The Management’s Discussion and Analysis (MD&A) is a required section of the City’s Annual Comprehensive Financial Report, as shown in the overview below. The purpose of the MD&A is to offer readers a narrative overview and analysis of t he City’s financial activity for the fiscal year ended June 30, 2025. We encourage readers to consider this MD&A in conjunction with the Basic F inancial Statements to provide a comprehensive understanding of the City’s operations and financial standing.

Required Components of the Annual Comprehensive Financial Report

INANCIAL HIGHLIGHTS

 Government-Wide Highlights:

As of the close of the fiscal year 2024/2025, the assets and deferred outflows of the City exceeded liabilities and deferred inflows by $438.8 million. This net position increased by $10.9 million, or 2.6%, during fiscal year 2024/2025 from $427.9 million.

The City’s Gov ernment-Wide General Revenues in creased by 6 .95% from $82.2 million to $ 87.9 million. General revenues include items such as property tax, sales and use tax es, gas tax, transient occupancy tax, motor vehicle fees, franchise fees, impact fees, investment earnings, and other revenues. For fiscal year 2024/2025 property taxes increased by 4.9% and investment earnings increased by 19.3% , while sales and use taxes decreased by 0.4% and impact fees increased by 108.8%. Program Revenues increased by 15.8%, or $3.0 million from the prior year. When combined, total Government-Wide revenues ( General and P rogram revenues) were approximately $110.2 million for fiscal year 2024/2025.

The City’s Government -Wide expenses increased by 5.7% from $93.9 million to $99.3 million this fiscal year.

 Fund Highlights:

General Fund revenues totaled $70.1 million, and expenditures totaled $72 million. Transfers in from other funds were $6.5 million, and transfers out totaled $1.3 million. Overall , in the General Fund fund balance increased by $3.3 million. The increase in fund balance in fiscal year 2024/2025 reflects higher revenues and lower expenditures. Revenue growth was primarily driven by increases in

Management’s
Discussion & Analysis

Government-Wide
Financial Statements

Fund
Financial Statements

Notes to the
Financial Statements

Basic
Financial Statements

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49 City of Rocklin Management’s Discussion and Analysis property tax collections and interest earnings, while reduced capital project spending contributed to lower expenditures.

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The Financial Statements are comprised of Government-Wide (City-wide) Financial Statements, Fund Financial Statements, Notes to the Financial Statements , Required Supplementary Information, and Supplementary Information. The Government -wide and Fund Financial Statements provide the reader with two different perspectives of the City's financial activities and financial position.

The Government-Wide Financial Statements

Government-Wide Financial Statements provide a longer -term view of the City's activities as a whole, and comprise of the Statement of Net Position and the Statement of Activities.

The Statement of Net Position provides information about the financial position of the City, including its capital assets, long-term liabilities, and deferred inflows/outflows of resources on a full accrual basis, similar to that used by corporations. The difference between the total assets and deferred outflows of resources and the total liabilities and deferred inflows of resources is reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The Statement of Activities provides information about the City's revenues and its expenses, also on a full accrual basis, with the emphasis on measuring net revenues and/or expenses for each of the City's programs. The Statement of Activities explains in detail the change in net position for the fiscal year. All changes in net position are reported as soon as the event causing the change occurs, regardless of the timing of related cash flows.

Therefore, some revenues and expenses reported in this statement are for items that will only result in cash flows for future fiscal periods.

Both the Statement of Net Position and the Statement of Activities distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business- type activities).

Governmental Activities – All of the City's basic services are considered to be governmental activities, including general government, community development, parks and recreation, public safety, and public works. These services are supported by general City revenues , such as taxes, and by specific pr ogram revenues, such as development and recreation program fees.

Business-Type Activities – The City does not have any business-type activities.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources segregated for specific activities or objectives. The City, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Fund Financial Statements report the City's operations in more detail than the government-wide statements and focus primarily on the short-term activities of the City's general fund and other major funds. The fund financial statements measure only current revenues and expenditures and fund balances; they exclude capital assets,

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50 City of Rocklin Management’s Discussion and Analysis long-term debt, and other long-term amounts.

Major funds present the major activities of the City for the fiscal year, and may change from year to year as a result of changes in the pattern of the City's activities. Each major fund is individually presented, and all non- major funds are summarized and presented in a single column. Subordinate schedules present the detail of non- major funds. The City's funds are segregated into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds – The City's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances available at year-end. Financial statements are prepared on the modified accrual basis, which means they measure only current financial resources and uses. Carrying amounts for capital assets and other long-lived assets, along with long-term liabilities are not presented on the balance sheet in the governmental fund financial statements. Unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.

Since 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 financial statements. Such information may be useful in evaluating the City's near- term financing requirements. Both the governmental balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. For fiscal year 2024/2025, the City had five major funds, twenty-one nonmajor special revenue funds, eleven nonmajor capital projects funds, two nonmajor permanent funds, and two non-major debt service funds.

Proprietary Funds – The City has and maintains proprietary funds, which include two internal service funds.

Internal service funds are used to accumulate and allocate costs internally among the City's various functions.

The City uses one internal service fund to account for its fleet operations and one for risk management functions.

Because these services predominately benefit only governmental functions, they have been included within governmental activities in the government-wide financial statements.

Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reported in the government-wide financial statements because the resources of these funds are not available to support the City’s own programs. The accounting for fiduciary funds is much like that used for business-type activities. For fiscal year 2024 /2025, the City had one private -purpose trust fund and eight custodial funds. Private-purpose trust funds are used to account for resources legally held in trust for special purposes. Custodial funds are held by the City in a custodial nature and are accounted for using an economic resource measurement focus.

OTES TO THE FINANCIAL STATEMENTS

Notes to the Financial Statements provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes can be found immediately following the fund financial statements.

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51 City of Rocklin Management’s Discussion and Analysis

REQUIRED SUPPLEMENTARY INFORMATION

In addition to the basic financial statements and accompanying not es, this report presents certain required supplementary information including a budgetary comparison for the General Fund and other major funds as presented in the governmental fund financial statements. Information regarding the City’s pension liabilities and information regarding the City’s progress in funding its obligation to provide OPEB to its employees is included.

SUPPLEMENTARY INFORMATION

The supplementary information section of this report includes combining and individual fund statements and schedules designed to provide additional information on non -major governmental funds including special revenue, debt service, capital project funds, proprietary internal service fund information and agency funds.

An unaudited statistical section provides historical and current data on financial trends, revenue and debt capacity, demographic and economic information, and operating information.

OVERNMENT-WIDE FINANCIAL ANALYSIS

Assets
In the Statement of Net Position schedule shown on the next page, total assets increased by $11.99 million.

Current and other assets increased by $12.6 million compared to the prior fiscal year. This increase was attributed to higher cash and investment balances, which was the result of fair market value fluctuations and increased revenues. Capital Assets decreased $566 thousand from depreciation.

Deferred Outflows of Resources
In the Statement of Net Position schedule shown on the next page, Deferred Outflows of Resources decreased by $ 7.0 million. This decline was primarily due to changes in actuarial assumptions, difference between projected and actual plan earnings, and changes in proportionate shares.

Liabilities
In the Statement of Net Position schedule shown on the next page, total liabilities decreased by $2.9 million.

Noncurrent liabilities decreased by $2.7 million from the prior fiscal year, mainly due to the higher-than-expected rate of return on the assets of the pension plan. This partly led to a $2.8 million decrease in Net Pension Liability.

Current and other liabilities decreased by $169 thousand from the prior fiscal year, primarily from a decrease in Accounts Payable and Accrued Liabilities.

Deferred Inflows of Resources
In the Statement of Net Position schedule shown on the next page, Deferred Inflows of Resources decreased by $3.0 million, primarily due to the amortization of lower-than-expected investment returns in the CalPERS pension plans.

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52 City of Rocklin Management’s Discussion and Analysis Net Position
In the Statement of Net Position schedule shown below, the City's Total Net Position increased $10.9 million.

Net position may serve over time as an indicator of the City's financial position. A significant portion of the City's $438.8 million total net position was for net investment in capital assets of $327.9 million, (e.g., land, buildings, general government infrastructure, equipment, and vehicles) net of accumulated depreciation and reduced by any related debt used to acquire or construct those assets. The $509 thousand increase in net investment in capital assets is primarily due to new asset purchases, partially offset by depreciation.

Governmental Activities

Revenues
In the Statement of Activities schedule shown on the next page, total program revenue and total general revenue combined show an increase of $8.8 million.

Program revenues increased by $3.0 million from the prior fiscal year, attributed to the following factors:
• Charges for services in creased by $ 2.1 million ( 20%) primarily due to increased development activity resulting in more building permit and inspection fee revenues. • Operating grants and contributions decreased by $ 2.8 million ( 36%), mainly due to prior year, non-reoccurring reimbursements for non-capital road projects and a state planning grant. • Capital grants and contributions increased by $3.7 million (431%), primarily due to South Placer Regional Transportation Authority funded work performed on the Rocklin Road and I-80 Interchange Improvement project.

Dollar Percent
2025 2024 Change Change
Assets
Curre
nt and other assets 177,357,922$ 164,805,527$ 12,552,395$ 7.62% Capital assets - net 336,684,869 337,250,532 (565,663) -0.17% Total Assets 514,042,791$ 502,056,059$ 11,986,732$ 2.39% Deferred Outflows of Resources 25,025,747$ 32,073,804$ (7,048,057)$ -21.97% Liabilities
Current and other liabilities 13,422,194$ 13,590,954$ (168,760)$ -1.24% Noncurrent liabilities 81,072,837 83,820,840 (2,748,003) -3.28% T otal Liabilities 94,495,031$ 97,411,794$ (2,916,763)$ -2.99% Deferred Inflows of Resources 5,799,342$ 8,846,435$ (3,047,093)$ -34.44% Net Position
Net investment in capital assets 327,920,022$ 327,411,118$ 508,904$ 0.16% Restricted 41,507,301 37,577,474 3,929,827 10.46% Unrestricted 69,346,842 62,883,042 6,463,800 10.28% Total Net Position 438,774,165$ 427,871,634$ 10,902,531$ 2.55% Governmental Activities
Table 1 - Net Position

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53 City of Rocklin Management’s Discussion and Analysis General revenues increased by $5.7 million due to the following factors:
• Taxes and assessments rose by $4.5 million (6%), driven primarily by a $1.2 million increase in property taxes and a $2.3 million increase in impact fees. • Investment earnings increased by $1.1 million (19%), reflecting higher interest rates and market fluctuations.

Expenses
Total expenses increased by $5.3 million due to the following factors:
• General government expenses increased by $2. 6 million (1 6%), primarily due to increases in insurance costs and contribution toward the acquisition of the Clover Valley slopes and valley floors for preservation under a conservation easement.
• Public safety expenses increased by $ 1.4 million (4%) from increased labor and related pension costs.
• Parks and recreation expenses increased by $717 thousand (9%), mainly due to increases in labor costs, concert operations, and rising utilities expenses.

Dollar Percent
Func
tions/Programs 2025 2024 Change Change
Program Rev enues
Charges for services 12,925,192$ 10,781,142$ 2,144,050$ 19.89% Operating grants and contributions 4,840,144 7,613,156 (2,773,012) -36.42% Capital grants and contributions 4,528,545 853,139 3,675,406 430.81% Total Program Rev enues 22,293,881 19,247,437 3,046,444 15.83% General Rev enues
Tax es and assessments 80,490,050 75,954,320 4,535,730 5.97% Investm ent earnings 6,747,339 5,658,816 1,088,523 19.24% Other revenues 656,920 571,316 85,604 14.98% Total General Rev enues 87,894,309 82,184,452 5,709,857 6.95% E xpenses
G eneral governm ent 18,899,129 16,290,451 2,608,678 16.01% Public safety 39,956,060 38,550,514 1,405,546 3.65% Public works 24,952,800 24,692,787 260,013 1.05% Parks and recreation 8,897,994 8,181,120 716,874 8.76% Com m unity developm ent 6,560,650 6,188,821 371,829 6.01% Interest on fiscal charges 19,026 40,062 (21,036) -52.51% Total Expenses 99,285,659 93,943,755 5,341,904 5.69% Ex cess (Deficiency) of Revenues over Ex penses 10,902,531 7,488,134 3,414,397 45.60% Special Item G ain (Loss) Disposal Capital Assets - 45,084 (45,084) -100.00% Increase / (Decrease) in Net Position 10,902,531 7,533,218 3,369,313 44.73% Net Position, Beginning of Year 427,871,634 420,338,416 7,533,218 1.79% Net Position, End of Year 438,774,165$ 427,871,634$ 10,902,531$ 2.55% Gov ernmental Activ ities
Table 2 - Statement of Activities

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54 City of Rocklin Management’s Discussion and Analysis FINANCIAL ANALYSIS OF THE CITY’S FUNDS

A summary of the changes in fund balance of the M ajor Funds and Other Governmental F unds is presented below:

The total Governmental fund balances for fiscal year 2024/2025 were $1 40.7 million, reflecting a $11.5 million increase during the year. This includes both Major Funds and Other Governmental Funds.

• The fund balance in the General Fund in creased by $3.3 million, driven by higher property tax revenues, increased interest earnings, and larger transfers in to re imburse the General Fund for indirect service costs.
• The fund balance in the SB325 Sales Tax Fund increased by $ 138 thousand, primarily because capital spending on street projects was postponed to the next year for projects such as the Pavement Management Program.
• The fund balance in the Low-and-Moderate-Income Housing Asset Fund in creased by $ 199 thousand from interest earnings. Expenditures were related to administration and programs to assist unhoused population.
• The fund balance in the Traffic Circulation Impact Fee Fund increased by $1.8 million, mainly due to increased impact fee revenues and interest earnings exceeding expenditures . The Traffic Impact Fee expenditures consisted of public streets improvement projects, such as Sierra College Boulevard Widening.
• The fund balance in the Streets Grants Fund increased by $ 1.3 million, mainly due to a timing difference where amounts owed to the fund in previous year , 2023/24, were received in 2024/25.
• The fund balance in the Nonmajor Governmental Fund’s increased by $4.7 million, mainly due to increases in the SB 1 Road Maintenance & Rehabilitation Act Fund, Community Facilities District No. 5 Fund, Community Park Fees Fund, and Capital Construction Tax Fund. These fund balances are being accumulated for future projects and maintenance expenditures.

Low and Traffic
Moderate Circulation
SB325 Income Impact Nonma jor
General Sales Tax Housing Fee Streets Governmental
Fund Fund Asset Fund Fund Grants Funds Total
Total Revenues 70,199,112$ 5,912,534 $ 465,786$ 3,444,340$ 5,236,818$ 25,167,605$ 110,426,195$ Total Expenditures (72,035,558) (4,976,178) (116,748) (1,240,010) (3,947,290) (15,351,456) (97,667,240) Revenues Over
(Under) Expenditures (1,836,446) 936,356 349,038 2,204,330 1,289,528 9,816,149 12,758,955 Transfers In 6,503,717 87,177 - - 55,316 657,053 7,303,263 Transfers Out (1,340,003) (885,615) (150,181) (381,470) (87,177) (5,728,018) (8,572,464) Net Change in
Fund Balances 3,327,268 137,918 198,857 1,822,860 1,257,667 4,745,184 11,489,754 Beginning of Year 61,470,623 5,424,024 13,287,107 19,101,597 (1,292,506) 31,197,856 129,188,701 End of Year 64,797,891$ 5,561,942 $ 13,485,964$ 20,924,457$ (34,839)$ 35,943,040$ 140,678,455$ Table 3 - Summary of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds Major Funds

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55 City of Rocklin Management’s Discussion and Analysis

CAPITAL ASSETS

The capital assets of the City are those assets which are used in the performance of the City’s functions including infrastructure assets. As of June 30, 2025 , the net capital assets for governmental activities totaled $336.7 million, reflecting a decrease of $566 thousand from the prior year. Depreciation on these capital assets, recognized in the Government -Wide Financial Statements , totaled $ 15.0 million. The following table summarizes the City’s capital assets at the end of the fiscal year:

Additional detail and information on capital asset activity is described in Note 7 of this report.

• Construction in progress decreased by $2.7 million, driven mainly by the $15.8 million in completed projects being transferred out, partially offset by $13.2 million in new additions. The completed projects transferred out included Pavement Rehabilitation, the Pacific at Rocklin Road Roundabout, and the Bike Pump Track.
• Park improvements increased by $1.3 million, driven by the addition of $2.3 million for the Bike Pump Track, partially offset by $1.1 million of depreciation of various park improvements. • Park equipment increased $76 thousand due to a new play structure installed at Quarry Park. • Infrastructure increased by $2.1 million, primarily reflecting $13.4 million in completed projects transferred in, partially offset by $11.3 million of depreciation , which reduce s asset values over their useful lives.
• Decreases in Facilities & other improvements and Park buildings were mainly due to annual depreciation.

Dollar Percent
2025 2024 Change Change
Land 8,338,942$ 8,338,942$ -$ 0.00% Land improvements 108,402 108,402 - 0.00% Park land 61,097,079 61,097,079 - 0.00% Construction in progress 13,730,312 16,415,766 (2,685,454) -16.36% Subscription right of use assets 590,090 596,611 (6,521) -1.09% Buildings 10,078,307 11,042,322 (964,015) -8.73% Facilities & other improvements 2,623,397 2,945,762 (322,365) -10.94% Machinery & equipment 776,707 778,403 (1,696) -0.22% Fleet machinery & equipment 7,139,927 7,067,481 72,446 1.03% Park buildings 1,628,760 1,711,047 (82,287) -4.81% Park equipment 75,910 - 75,910 100.00% Park improvements 9,756,638 8,492,896 1,263,742 14.88% Infrastructure 220,740,398 218,655,821 2,084,577 0.95% Total Capital Assets, Net 336,684,869$ 337,250,532$ (565,663)$ -0.17%

Table 4 - Capital Assets at Year End - Net
Governmental Activities

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56 City of Rocklin Management’s Discussion and Analysis

DEBT ADMINISTRATION

During the year, Long-Term Debt from governmental activities decreased by $1.96 million. The decrease was mostly due to higher-than-expected investment returns and changes in assumptions within the CalPERS pension plan, which de creased the City’s proportionate share of the Net Pension Liabilities by $2.79 million. Conversely, t he City ’s net OPEB liability in creased by $1. 41 million due to lower-than - expected investment returns during the measurement period. Other decreases in Long -Term Debt resulted from principal payments on outstanding bonds and direct borrowings.

The following table summarizes the City’s debt at the end of the year:

Additional detail and information on long-term debt activity is described in Note 8 of this report.

GENERAL FUND BUDGETARY HIGHLIGHTS

Rocklin Municipal Code Chapter 3.28 requires the City Manager to submit a proposed budget on or before May 15th of each year. The City Council reviews and may revise the proposed budget in a public workshop.

The budget must be formally adopted by the City Council on or before June 30 th of each year. The City Council adopted the fiscal year 2024/2025 budget in June 2024.

Changes to the City's General Fund budget for fiscal year 2024/2025, from the original to the final budget, are detailed in the Required Supplementary Information section, along with a comparison to actual activity for the year. Budget amendments must be approved by a resolution of the City Council . The General Fund revenue budget increased by $300,589 between the original and final budget. The increase was due to a $196,000 increase from intergovernmental reimbursement revenue, an $87,900 increase in rental revenue, and $16,689 in other reimbursement revenue.

The City had actual expen ditures of approximately $72.0 million, coming in $13.4 million below the final amended budget and $3.2 million below the original budget. This variance was driven by deferred vehicle purchases, project timing related to certain park improvements and the new fire station extending into the subsequent fiscal year, as well as other expenditures that did not occur during fiscal year 2024/2025. 2025 2024 Dollar Change
Percemt
Change
2016 Lease Revenue Bonds 7,205,813$ 7,548,363$ (342,550) -4.54% OPUS Bank Loan - RPFA Refunding 521,002 1,029,183 (508,181) -49.38% Subscription Liabilities 595,829 598,561 (2,732) -0.46% Claims Payable 2,936,110 2,811,286 124,824 4.44% Net Pension Liability 64,097,316 66,883,471 (2,786,155) -4.17% Net OPEB Liability 5,532,878 4,126,333 1,406,545 34.09% Compensated Absences 3,694,038 3,543,996 150,042 4.23% Total Long-Term Debt 84,582,986$ 86,541,193$ (1,958,207)$ -2.26% Table 5 - Long-Term Debt
Governmental Activities

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57 City of Rocklin Management’s Discussion and Analysis ECONOMIC FACTORS BEARING ON THE CITY’S FUTURE

Looking forward to 2025/2026, the City expects to remain fiscally sound. While the revenue outlook is generally positive, increased operational costs, slowing sales tax growth, and rising labor expenses will require prudent monitoring to maintain fiscal stability. Key factors considered in the development of the budget for fiscal years 2025/2026 and 2026/2027 include:

• Property taxes are the largest component of General Fund revenues. Property tax revenue budget is expected to grow by 4.2% in FY 2025/26 and by an additional 3.9% in FY 2026/27, driven by rising assessed valuations of existing properties.
• Sales tax revenue is projected to increase by 4.6% in FY 2025/26 relative to the FY 2024/25 budget.

While this reflects growth, revenues are anticipated to remain below FY 2023/24 actuals, though slightly above FY 2022/23 levels—indicating a modest recovery amid evolving market conditions.

For FY 2026/27, sales tax is forecasted to rise by 2.7% year-over-year. • Operating expenses are expected to rise, primarily due to increased contracted cost -of-living adjustments for labor, higher pension contributions, retiree health obligations, and workers’ compensation premiums. Additionally, expenses in the supplies and service category are expected to grow, driven by rising utility rates and insurance premiums.

The budget is balanced and strategically developed to address the City’s long-term needs, ensuring fiscal sustainability and the continued delivery of high-quality services to the community.

EQUEST FOR FINANCIAL INFORMATION

This financial report is designed to provide a general overview of the City of Rocklin's finances for all of Rocklin's residents, 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 Clerk, 3970 Rocklin Road, Rocklin, California, 95677, or submitted via email to [email protected].

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58 This page is intentionally blank

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59 BASIC FINANCIAL STATEMENTS

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60 This page is intentionally blank

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61 City of Rocklin
Statement of Net Position
June 30, 2025
(With Comparative Totals for June 30, 2024)
2025 2024
ASSETS
Current Assets:

Cash and investments 157,464,585$ 142,425,078$
Restricted cash and investments 1,257,596 1,764,583 Receivables - net 10,420,757 11,353,809
Inventory and other assets 127,564 58,374
Total Current Assets 169,270,502 155,601,844
Noncurrent Assets:

Leases receivable 3,615,516 3,830,409
Loans receivable 4,471,904 5,373,274
Capital assets - net 336,684,869 337,250,532
Total Noncurrent Assets 344,772,289 346,454,215
Total Assets 514,042,791$ 502,056,059$

DEFERRED OUTFLOWS OF RESOURCES
OPEB Adjustments 6,531,797$ 5,900,884$
Pension Adjustments 18,493,950 26,172,920
Total Deferred Outflows of Resources 25,025,747$ 32,073,804$

LIABILITIES
Current Liabilities:

Accounts payable and accrued liabilities 9,014,863$ 9,782,639$ Deposits 797,595 1,006,834
Interest payabl
e 37,000 43,000
Other liabilities 62,588 38,128
Claims payable - current portion 125,234 161,176 Compensated absences - current portion 2,531,134 1,733,264 Long-term debt - due within one year 853,780 825,913 Total Current Liabilities 13,422,194 13,590,954
Noncurrent Liabilities:

Long-term debt - due after one year 7,468,863 8,350,194 Claims payable 2,810,876 2,650,110
Compensated absences 1,162,904 1,810,732
Net pension liability 64,097,316 66,883,471
Net OPEB liability 5,532,878 4,126,333
Total Noncurrent Liabilities 81,072,837 83,820,840 Total Liabilities 94,495,031$ 97,411,794$

DEFERRED INFLOWS OF RESOURCES
Deferred Gain on Early Defeasance of Long-Term Debt 442,204$ 663,307$ Leases receivable 3,312,511 3,791,504
OPEB Adjustments 1,393,525 2,376,280
Pension Adjustments 651,102 2,015,344
Total Deferred Inflows of Resources 5,799,342$ 8,846,435$

NET POSITION
Net investment in capital assets 327,920,022$ 327,411,118$ Restricted for:

CFD operations and maintenance 7,604,628 6,251,089 Housing rehabilitation 14,332,366 14,132,400
Settlements 3,779,515 3,763,783
Lighting and landscape operations and maintenance 1,286,351 1,510,395 Police services programs 535,033 526,081
Street maintenance and construction 12,378,705 9,107,200 Expendable endowments 17,957 17,946
Nonexpendable endowments 491,455 491,455
Debt service 597,385 1,105,196
Other 483,906 671,929
Total restricted 41,507,301 37,577,474
Unrestricted 69,346,842 62,883,042
Total Net Position 438,774,165$ 427,871,634$
The accompanying notes are an integral part of these financial statements.

Governmental Activities

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62 City of Rocklin
Statement of Activities
For the Year Ended June 30, 2025
(With Comparative Totals for June 30, 2024)
Program Revenues

Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total 2025 2024 Primary Government:

Governmental Activities:

General government 18,899,129 $ 1,108,676 $ 2,284,384 $ 46,883 $ 3,439,943 $ (15,459,186) $ (12,587,336) $ Public safety 39,956,060 1,924,950 925,933 - 2,850,883 (37,105,177) (35,379,890) Public works 24,952,800 170,496 1,161,728 502,511 1,834,735 (23,118,065) (23,632,941) Parks and recreation 8,897,994 2,964,557 256,898 - 3,221,455 (5,676,539) (4,840,471) Community development 6,560,650 6,756,513 211,201 3,979,151 10,946,865 4,386,215 1,784,382 Interest and fiscal charges 19,026 - - - - (19,026) (40,062) Total Governmental Activities 99,285,659$ 12,925,192$ 4,840,144$ 4,528,545$ 22,293,881$ (76,991,778) (74,696,318) General Revenues and Special Items:

Taxes:

Property taxes 25,984,239 24,762,287
Sales and use taxes 22,118,636 22,202,133
Gas tax 7,058,011 6,897,034
Transient occupancy taxes 1,261,061 1,121,843
Other taxes 16,757,494 16,015,656
Total taxes 73,179,441 70,998,953
Motor vehicle fees 112,907 88,058
Franchise fees 2,860,741 2,790,010
Impact fees 4,336,961 2,077,299
Investment earnings 6,747,339 5,658,816
Other revenues 656,920
571,316
Total General Revenues 87,894,309 82,184,452
Special item - gain (loss) on disposal of capital assets - 45,084 Total General Revenues and Special Items 87,894,309 82,229,536 Change in Net Position 10,902,531 7,533,218
Net Position - Beginning of Year 427,871,634 420,338,416 Net Position - End of Year 438,774,165$ 427,871,634$
The accompanying notes are an integral part of these financial statements.

Net (Expense) Revenue and
Change in Net Position

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63 Fund Title Fund Description
General Fund Primary operating fund of the City: accounts for all activities except those legally or administratively required to be accounted for in other funds.

SB325 Sales Tax Accounts for sales tax revenue collected in accordance with Senate Bill 325 to be used for transit services, construction and maintenance of streets.

Low and Moderate Income Housing Asset
Special Revenue
Accounts for the housing assets of the former Rocklin
Redevelopment Agency transferred to the City of Rocklin as Housing Successor.

Traffic Circulation Impact Fee Capital Projects Accounts for activities related to traffic congestion management.

Streets Grants Accounts for funds received as reimbursement or grants related to street capital projects.

MAJOR GOVERNMENTAL FUNDS

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64 City of Rocklin
Balance Sheet
Governmental Funds
June 30, 2025
(With Comparative Totals for June 30, 2024)
Low and Traffic
Moderate Income Circulation
Housing Impact
General SB325 Asset Fee
ASSETS Fund Sales Tax Fund Fund
Cash and investments 66,311,511$ 6,084,467$ 9,851,535$ 20,741,759$ Restricted cash and investments - - - - Receivables:

Taxes 5,605,548 - - - Interest receivable 3,078 - - - Intergovernmental - - - - Other receivables 1,363,370 338,555 - - Due from other funds 1,512,405 - - - Prepaid items 58,178 - - - Leases receivable 3,615,516 - - - Loans receivable - - 3,671,362 481,556 Total assets 78,469,606$ 6,423,022$ 13,522,897$ 21,223,315$

LIABILITIES, FUND BALANCES AND

DEFERRED INFLOWS OF RESOURCES
Liabilities:

Accounts payable and accrued liabilities 5,933,440$ 630,286$ 36,933$ 94,857$ Deposits 593,594 - - 204,001 Due to other funds - - - - Unearned revenues 1,308,220 175,111 - - Other liabilities 6,905 55,683 - - Compensated absences 2,517,045 - - - Total liabilities 10,359,204 861,080 36,933 298,858

DEFERRED INFLOWS OF RES
OURCES
Leases receivable 3,312,511 - - - Unavailable revenue - - - - Total deferred inflows of resources 3,312,511 - - - Fund Balances:

Nonspendable:

Endowments - - - - Leases receivable 303,005 - - - Prepaid items 58,178
Long-term receivables - - - - Restricted - 5,561,942 13,485,964 481,556 Committed 32,434,050 - - 20,442,901 Unassigned (Deficit) 32,002,658 - - - Total fund balances 64,797,891 5,561,942 13,485,964 20,924,457 Total liabilities, fund balances and
deferred inflows of resources 78,469,606$ 6,423,022$ 13,522,897$ 21,223,315$ The accompanying notes are an
integral part of these financial statements.

Continued
Major Funds

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65 City of Rocklin
Balance Sheet
Governmental Funds
June 30, 2025
(With Comparative Totals for June 30, 2024)
ASSETS
Cash and investments
Restricted cash and investments
Receivables:

Taxes
Interest receivable
Intergovernmental
Other receivables
Due from other funds
Prepaid items
Leases receivable
Loans receivable
Total assets

LIABILITIES, FUND BALANCES AND

DEFERRED INFLOWS OF RESOURCES
Liabilities:

Accounts payable and accrued liabilities
Deposits
Due to other funds
Unearned revenues
Other liabilities
Compensated absences
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Leases receivable
Unavailable revenue
Total deferred inflows of resources
Fund Balances:

Nonspendable:

Endowments
Leases receivable
Prepaid items
Long-term receivables
Restricted
Committed
Unassigned (Deficit)
Total fund balances
Total liabilities, fund balances and
deferred inflows of resources
The accompanying notes are an
integral part of these financial statements.

Major Funds
Nonmajor
Streets Governmental
Grants Funds 2025 2024
-$ 36,319,954$ 139,309,226 $ 126,791,120 $ - 1,257,596 1,257,596 1,764,583

- 773,997 6,379,545 7,179,764 - - 3,078 10,804 81,814 920,616 1,002,430 1,966,832 1,229,898 102,366 3,034,189 2,139,141 - - 1,512,405 993,512 - - 58,178 10,738 - - 3,615,516 3,830,409 - 318,986 4,471,904 5,373,274 1,311,712$ 39,693,515$ 160,644,067$ 150,060,177$ 413,917$ 1,695,804$ 8,805,237$ 9,647,829$ - - 797,595 1,006,834 897,795 614,610 1,512,405 993,512 - 629,564 2,112,895 1,704,146 - - 62,588 38,128 - - 2,517,045 1,723,548 1,311,712 2,939,978 15,807,765 15,113,997 - - 3,312,511 3,791,504 34,839 810,497 845,336 1,965,975 34,839 810,497 4,157,847 5,757,479 - 491,455 491,455 491,455 - - 303,005 38,905 58,178 -
- - - 13,225 - 21,486,384 41,015,846 37,086,019 - 14,775,700 67,652,651 64,739,576 (34,839) (
810,499) 31,157,320 26,819,521 (34,839) 35,943,040 140,678,455 129,188,701 1,311,712$ 39,693,515$ 160,644,067$ 150,060,177$ Concluded
Total Governmental Funds

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66 City of Rocklin
Reconciliation of the Government Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
Total Fund Balances - Total Governmental Funds 140,678,455$ Amounts reported for governmental activities in the Statement of Net Position were different because:

Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. The capital assets were adjusted as follows:

Capital assets 612,902,137
Less: accumulated depreciation (283,357,195)
Total Capital Assets 329,544,942
Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in Governmental Funds Balance Sheet. (37,000) Internal service funds are used by management to charge the costs of vehicle maintenance and various insurance costs to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the Statement of Net Position. 22,206,362
Benefit plan adjustments from timing differences, including contributions made to benefit plans that reduce the net benefit liability in the next fiscal year, the impact from changes in proportionate shares on beginning balances, and differences between projected and actual earnings on plan investments, have been reported as deferred outflows of resources. 25,025,747 Benefit plan adjustments from timing differences, including changes in assumptions, differences between expected and actual experiences, changes in proportionate shares related to contributions and differences between projected and actual earnings on plan investments, have been reported as deferred inflows of resources. (2,044,627)
Certain revenues were recorded as deferred inflows of resources in the governmental funds because they did not meet the revenue recognition criteria of availability. However, they were previously included as revenue in the Government-Wide Statement of Activities under the full accrual basis. 845,336 Liabilities were reported for certain revenues that were not available to pay current period expenditures and were reported as unearned in the fund statements. 2,112,895 Long-term debt defeasances are reported in the funds as other financing uses based on cash payments related to the repayment of debt. However, the difference between the refunded debt and the refunding debt is reported as a deferred gain or loss in the government-wide statement of net position. (442,204)
Long-term obligations were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet. The long-term liabilities were adjusted as follows:

Long-term debt (8,322,643)
Compensated absences (1,162,904)
Net pension liability (64,097,316)
Net OPEB liability (5,532,878)
Total Long-Term Obligations (79,115,741)
Net Position of Governmental Activities 438,774,165$
The accompanying notes are an integral part of these financial statements.

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67 City of Rocklin
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2025
(With Comparative Totals for June 30, 2024)
Low and Traffic
Moderate Income Circulation
Housing Impact
General SB325 Asset Fee
Fund Sales Tax Fund Fund

REVENUES
Taxes and assessments 53,054,663$ 5,041,587$ -$ 2,179,406$ Licenses and permits 4,336,242 - - - Fines and forfeitures 571,211 - - - Intergovernmental 950,779 700,705 - 502,511 Charges for services 2,917,626 - - - Use of money and property 5,704,919 170,242 463,786 762,423 Contributions and donations 1,977,851 - - - Other revenues 685,821 - 2,000 - Total Revenues 70,199,112 5,912,534 465,786 3,444,340

EXPENDITURES
Current:

General government 17,855,069 37,367 13,808 - Public safety 36,748,614 - 355 - Public works 3,930,224 2,280,183 - - Parks and recreation 5,110,953 - - - Community development 5,419,117 444,990 102,585 98,893 Capital outlay 2,958,646 2,213,638 - 1,141,117 Debt service:

Principal 2,732 - - - Interest and fiscal charges 10,203 - - - Total Ex
penditures 72,035,558 4,976,178 116,748 1,240,010 Excess (Deficiency) of Revenues over Expenditures (1,836,446) 936,356 349,038 2,204,330

OTHER FINANCING SOURCES (USES)
Settlements and recoveries - - - - Transfers in 6,503,717 87,177 - - Transfers out (1,340,003) (885,615) (150,181) (381,470) Total Other Financing Sources (Uses) 5,163,714 (798,438) (150,181) (381,470) Net Change in Fund Balances 3,327,268 137,918 198,857 1,822,860

Fund Balances Beginning 61,470,623 5,424,024 13,287,107 19,101,597 Fund Balances Ending 64,797,891 $ 5,561,942 $ 13,485,964 $ 20,924,457 $ The accompanying notes are an
integral part of these financial statements.

Continued
Major Funds

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68 City of Rocklin
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2025
(With Comparative Totals for June 30, 2024)

REVENUES
Taxes and assessments
Licenses and permits
Fines and forfeitures
Intergovernmental
Charges for services
Use of money and property
Contributions and donations
Other revenues
Total Revenues

EXPENDITURES
Current:

General government
Public safety
Public works
Parks and recreation
Community development
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Ex
penditures
Excess (Deficiency) of Revenues over Expenditures

OTHER FINANCING SOURCES (USES)
Settlements and recoveries
Transfers in
Transfers out
Total Other Financin
g Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
The accompanying notes are an
integral part of these financial statements.

Major Funds
Nonmajor
Streets Governmental
Grants Funds 2025 2024
-$ 19,380,329$ 79,655,985 $ 75,965,125 $ - 75,848 4,412,090 3,528,288 - 26,890 598,101 270,272 5,236,818 1,127,447 8,518,260 5,680,001 - 2,150,800 5,068,426 4,144,791 - 1,098,734 8,200,104 7,067,514 - 1,134,480 3,112,331 3,904,309 - 173,077 860,898 816,789 5,236,818 25,167,605 110,426,195 101,377,089 - 325,257 18,231,501 15,785,461 - 227,758 36,976,727 33,721,747 - 6,987,350 13,197,757 12,647,318 - 2,421,336 7,532,289 7,746,830 - 174,447 6,240,032 5,618,500 3,947,290 4,128,650 14,389,341 10,895,962

- 823,181 825,913 1,317,243 - 263,477 273,680 307,494 3,947,290 15,351,456 97,667,240 88,040,555 1,289,528 9,816,149 12,758,955 13,336,534

- - - - 55,316 657,053 7,303,263 6,970,751 (87,177) (5,728,018) (
8,572,464) (6,965,150)
(31,861) (5,070,965) (1,269,201) 5,601 1,257,667 4,745,184 11,489,754 13,342,135 (1,292,506) 31,197,856 129,188,701 115,846,566 (34,839)$ 35,943,040$ 140,678,455$ 129,188,701$ Concluded

Total Governmental Funds

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69 City of Rocklin
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities
For the Year Ended June 30, 2025
Net Change in Fund Balances - Total Governmental Funds 11,489,754$ Amounts reported for governmental activities in the Statement of Activities were different because:

Governmental Funds report capital outlay as expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated useful lives as depreciation expense.

Capital additions 13,416,267
Depreciation expense (13,971,331)
The remaining net book value from the disposal of long-lived assets such as capital assets is not a current economic resource and therefore is not reported in the fund statements but is reported in the Government-Wide Statement of Activities as a special item. (83, 045) Internal service funds are used by management to charge the costs of vehicle maintenance, and various insurance costs to individual funds. The net revenue or (excess expenses) of the internal service funds is reported with government activities. 2, 356,079 Certain revenues were not recorded or recorded as unearned revenue in the governmental funds because they did not meet the revenue recognition criteria of availability. However, they were included as revenue in the Government-Wide Statement of Activities under the full accrual basis. 408,749 Certain revenues were recorded as deferred inflows of resources in the governmental funds because they did not meet the revenue recognition criteria of availability. However, they were included as revenue in the Government-Wide Statement of Activities under the full accrual basis. (1, 120,639) Long-term compensated absences and claims payables were reported in the Government-Wide Statement of Activities, but they did not require the use of current financial resources and were not reported as expenditures in governmental funds.

Compensated absences 647,580
In governmental funds, actual contributions to pension plans are reported as expenditures in the year incurred. However, in the Government-Wide Statement of Activities, only the current year pension expense as noted in the plans' valuation reports is reported as an expense, as adjusted for deferred inflows and outflows of resources. (3,528,573)
Repayment of long-term debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position. 1, 074,567 Certain expenses reported in the statement of activities do not require the use of current financial resources and are not reported as expenditures in the fund statements as follows:

Other postemployment benefits adjustments and deferrals 207,123 Interest expense on long-term debt was reported in the Government-Wide Statement of Activities, but it did not require the use of current financial resources. Therefore, interest expense was not reported as expenditures in governmental funds. The following amount represented the net change in accrued interest from prior year. 6,000 Change in Net Position of Governmental Activities 10,902,531$ The accompanying notes are an integral part of these financial statements.

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70 City of Rocklin
Statement of Net Position
Internal Service Funds
June 30, 2025
(With Comparative Totals for June 30, 2024)
2025 2024
ASSETS
Current assets:

Cash and investments 18,155,359$ 15,633,958$
Accounts receivable 1,515 57,268
Inventory and other 69,386 47,636
Total current assets 18,226,260 15,738,862
Non-current assets:

Capital assets - net 7,139,927 7,067,481
Total non-current assets 7,139,927 7,067,481
Total assets 25,366,187$ 22,806,343$

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 209,626$ 134,810$ Claims payable 125,234 161,176
Compensated absences - current portion 14,089 9,716
Total current liabilities 348,949 305,702
Non-current liabilities:

Claims payable 2,810,876 2,650,110
Compensated absences - 248
Total non-current liabilities 2,810,876 2,650,358 Total liabilities 3,159,825$ 2,956,060$

NET POSITION
Net Investment in capital assets 7,139,927$ 7,067,481$ Unrestricted 15,066,435 12,782,802
Total net position 22,206,362$ 19,850,283$
The accompanying notes are an integral part of these financial statements.

Totals

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71 City of Rocklin
Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds
For the Year Ended June 30, 2025
(With Comparative Totals for June 30, 2024)
2025 2024

OPERATING REVENUES
Charges for services 7,532,980$ 7,166,809$
Intergovernmental 14,831 1,806
Other revenue 37,457 27,360
Total operating revenues 7,585,268 7,195,975

OPERATING EXPENSES
Salaries and benefits 3,232,371 2,391,513
Services and supplies 3,668,459 3,457,006
Depreciation 1,075,277 1,033,923
Total operating expenses 7,976,107 6,882,442
Operating income (loss) (390,839) 313,533

NONOPERATING REVENUES (EXPENSES)
Gain (loss) on sale of assets 83,580 45,135
Investment earnings 421,062 318,631
Total nonoperating revenues (expenses) 504,642 363,766 Income (loss) before operating transfers 113,803 677,299 Transfers in 1,340,000 54,550
Transfers out (70,799) (60,151)
Income (loss) before capital contributions 1,383,004 671,698 Capital contributions 973,075 1,899,151
Change in net position 2,356,079 2,570,849
Total net position - beginning 19,850,283 17,279,434 Total net position - ending 22,206,362$ 19,850,283$
The accompanying notes are an integral part of these financial statements.

Totals

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72 City of Rocklin
Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
(With Comparative Totals for June 30, 2024)
2025 2024
Cash flows from operating activities:

Receipts from interfund services provided 7,588,733$ 7,109,541$ Other receipts 52,288 29,166
Payments to suppliers for goods and services (3,497,454) (3,055,223) Payments to employees for services (3,221,361) (2,389,425) Net cash provided (used) by operating activities 922,206 1,694,059 Cash flows from noncapital financing activities:

Interfund transactions 1,269,201 (5,601)
Net cash provided (used) by noncapital financing activities 1,269,201 (5,601) Cash flows from capital financing activities:

Purchases (sales) of capital assets - net (1,064,143) (1,992,694) Proceeds from capital contributions 973,075 1,899,151 Net cash provided (used) by capital financing activities (91,068) (93,543) Cash flows from investing activities:

Investment income received 421,062 318,631
Net cash provided (used) by investing activities 421,062 318,631 Net increase (decrease) in cash and cash equivalents 2,521,401 1,913,546 Cash and cash equivalents - beginning 15,633,958 13,720,412 Cash and cash equivalents - ending 18,155,359$ 15,633,958$ Reconciliation of operating income to net cash provided (used) by operating activities:

Operating income (loss) (390,839)$ 313,533$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 1,075,277 1,033,923
Change in operating assets and liabilities:

Accounts receivable 55,753 (57,268)
Inventory (21,750) 2,931
Accounts payable and accrued liabilities 74,816 64,025 Claims payable 124,824 338,659
Compensated absences 4,125 (1,744)
Net cash provided (used) by operating activities 922,206$ 1,694,059$ The accompanying notes are an integral part of these financial statements.

Totals

Page 42 ends

73 Successor
Agency
Private-Purpose
Trust Custodial
Funds Funds
ASSETS
Current assets:

Cash and investments 1,283,475 $ 5,760,487 $
Cash and investment with trustee/fiscal agent 450 4,083,991 Accounts receivable - 37,261
Total current assets 1,283,925 9,881,739
Non-current assets:

Land 480,576 -
Total assets 1,764,501$ 9,881,739 $

LIABILITIES
Current liabilities:

Unearned revenues 1,241,341 $ - $
Deposits - 181,397
Interest payable 225,992 -
Due within one year 975,390 -
Total current liabilities 2,442,723 181,397
Noncurrent liabilities:

Bonds payable - net 14,869,685 -
Total liabilities 17,312,408$ 181,397 $

NET POSITION
Held in trust for Redevelopment Dissolution (15,547,907) $ - $ Restricted for individuals, organizations and other governments - 9,700,342 Total Net Position (15,547,907)$ 9,700,342 $
The accompanying notes are an integral part of these financial statements.

City of Rocklin
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025

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74 Successor
Agency
Private-Purpose
Trust Custodial
Funds Funds

ADDITIONS
Property taxes 1,028,922 $ - $
Tax assessments - 4,343,765
Investment earnings 14,039 335,158
Other revenue - 11,809
Total additions 1,042,961 4,690,732

DEDUCTIONS
Professional services 6,285 107,200
Fees and charges 70,000 43,965
Repairs and maintenance 1,600 46,883
Debt service principal - 1,928,181 Debt service interest 579,543 2,296,797
Total deductions 657,428 4,423,026

Change in net position 385,533 267,706
Total net position - beginning (15,933,440) 9,432,636 Total net position - ending (15,547,907)$ 9,700,342$ The accompanying notes are an integral part of these financial statements.

City of Rocklin
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025

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75 NOTES TO FINANCIAL STATEMENTS

Page 45 ends

76 This page intentionally left blank

Page 46 ends

77 City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The City of Rocklin (City) was incorporated in 1893 under the laws and regulations of the State of California (State). The City operates under a City Council/Manager form of government and provides the following services: general government, community development, public safety, parks and recreation, and public works.

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

A. Financial Reporting Entity

The City operates as a self-governing local government unit within the State. It has limited authority to levy taxes and has the authority to determine user fees for the services that it provides. The City’s main funding sources include property taxes, sales taxes, other intergovernmental revenue from state and federal sources, user fees, and federal and state financial assistance.

The financial reporting entity consists of (a) the primary government, the City, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which t he nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. Financial accountability is defined as the appointment of a voting majority of the component unit’s board, and either (a) the City has the ability to impose its will on the organization, or (b) there is a potential for the organization to provide a financial benefit to or impose a financial burden on the City.

As required by GAAP, these financial statements present the government and its component unit, an entity for which the government is considered to be financially accountable. This component unit is reported on a blended basis. A blended component unit, although a legally separate entity, is, in substance, part of the government’s operations and so data from this unit is combined with data of the primary government. The financial statement of the individual component unit, if applicable as indicated below, may be obtained from the City of Rocklin website.

The City’s reporting entity includes the following blended component unit:

Rocklin Public Financing Authority
The Rocklin Public Financing Authority (Authority) was formed on December 13, 1994, as a joint powers authority between the City and the former Redevelopment Agency to serve as a financing mechanism for various capital projects. Upon the dissolution of the Rocklin Redevelopment Agency on February 1, 2012, the City appointed itself successor agency governed by an oversight board consisting of members from all taxing authorities in the redevelopment area to wind up all redevelopment activities, which consiste d primarily of debt. Because of the limited authority of the successor, their membership in the Authority is also limited as the successor cannot obligate the Authority or issue new debt on its own. The City Council acts as the governing board in a concurrent session. The Authority provides services solely for the benefit of the City and is presented in the governmental activities in the fund financial statements as a blended component unit.

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78 City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

B. Basis of Presentation, Accounting and Measurement Focus

The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Government-Wide Financial Statements

The City's government -wide financial statements include a Statement of Net Position a nd a Statement of Activities. These statements present summaries of governmental activities for the City. Fiduciary activities of the City are not included in these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities , which rely to a significant extent on fees and charges for support. The City did not have any business -type activities during the year.

These statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, deferred outflows of resources, liabilities, deferred inflows of resources (including capital assets, as well as infrastructure assets, and long-term liabilities), are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position.

Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those clearly identifiable with a specific function or segment. In conformity with the City’s indirect cost allocation plan, certain indirect costs are included in the program expense reported for individual functions and activities.

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

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

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds are excluded from the government -wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements.

Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated. The following interfund activities have been eliminated:

• Transfers in/Transfers out
• Internal Service Fund charges

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79 City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

Fund Financial Statements

Governmental Funds
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is provided to reconcile and expla in the differences in fund balances in th ese statements to the net position presented in the government -wide financial statements. The City has presented all major funds that met the applicable criteria.

All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present 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 in cash, except that revenues subject to accrual (up to 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, special assessments, intergovernmental rev enues, other taxes, interest revenue, rental revenue and certain charges for services. Fines, forfeitures, licenses and permits are not susceptible to accrual because they are usually not measurable until received in cash.

Expenditures are recorded in the accounting period in which the related fund liability is incurred.

Unearned revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues also arise when the government receives resources before it has a legal claim to them, as wh en grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unearned revenue is removed from the combined balance sheet and revenue is recognized.

The following funds are major funds:

General Fund
The General Fund is used to account for resources traditionally associated with the City , which are not required legally or by sound financial management to be accounted for in another fund. The General Fund pays for the City’s general operating expenditures, the fixed charges, and the capital costs that are not paid through other funds. The General Fund is a combination of other funds, which include, Quarry Park Amphitheater, Quarry Park Adventures Reserve, Streets Maintenance Reserve, Economic Development Reserve, Technology Fee, Retirees Health, Boroski Landfill Monitoring, ADA, and Parks Maintenance Reserve.

Low and Moderate Income Housing Asset Fund
This special revenue fund accounts for the administration and operation of the City’s low and moderate income housing program , which includes interest from loan programs and grants, of the former Rocklin Redevelopment Agency transferred to the City of Rocklin as the Housing Successor.

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80 City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

Traffic Circulation Impact Fee Capital Projects Fund
This capital projects fund accounts for activities related to congestion management and traffic relief.

SB325 Sales Tax Fund
This fund accounts for sales tax revenue collected in accordance with Senate Bill 325 to be used for transit services, construction and maintenance of streets.

Streets Grants Fund
This fund accounts for funds received as reimbursement or grants related to street capital projects.

Additionally, the City reports the following nonmajor fund types of governmental funds:

Special Revenue Funds
Special revenue funds account for and report the proceeds of specific revenue sources that are restricted , committed or assigned to specific purposes other than debt service or capital projects.

Capital Project Funds
Capital project funds account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets in governmental funds.

Debt Service Funds
Debt service f unds account for the accumulation of resources for, and payment on, long-term obligation debt principal and interest.

Permanent Funds
Permanent funds account for and report financial resources for the principal corpus of endowments where only the investment earnings can be spent on specified purposes.

Proprietary Funds

In the fund financial statements, proprietary funds are presented using the accrual basis of accounting.

Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the “economic resources measurement focus”. This means all assets, deferred outflow s of resources, liabilities (whether current or noncurrent) and deferred inflow s of resources associated with their activities a re included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.

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

The City’s internal service funds are proprietary funds. Internal service funds account for charges to City departments for services provided, on a cost reimbursement basis. Amounts paid to acquire capital assets are capitalized as assets in the internal service funds financial statements.

Fleet Management Internal Service Fund
The Fleet Management Internal Service Fund is used to account for the financing of the City’s fleet services provided by one City department to other departments on a cost -reimbursement basis. The Fleet

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81 City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

Management Internal Service Fund balances and activities have been combined with governmental activities in the government-wide financial statements.

Risk Management Internal Service Fund
The Risk Management Internal Service Fund is used to account for and finance the risk management functions for the City. This includes : general liability, workers compensation, property damage, dental, vision, and other insurance expenditures and also holds resources for Self -Insured Losses and Disaster Contingency. The Risk Management Internal Service Fund balances and activities have been combined with governmental activities in the government-wide financial statements.

Fiduciary Funds

Private Purpose Trust Funds
Private Purpose Trust Funds account for resources held for other individuals and entities in a manner similar to private enterprise.

Custodial Funds
Custodial Funds are used to account for assets held by the City in a trustee capacity or as a custodian for individuals, private organizations, other governments and/or other funds. Custodial funds are used to report fiduciary activities that are not required to be reported in pension (and other employee benefits) trust funds, investment trust funds, or private-purpose trust funds. Custodial funds are accounted for using an economic resource measurement focus and require a resource flow statement.

C. Cash Deposits and Investments

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

Deposit and Investment Risk Disclosures - In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB Statement No. 3), certain disclosures are required for Deposit and Investment Risks in the following areas, if applicable:

• Interest Rate Risk
• Credit Risk
o Overall
o Custodial Credit Risk
o Concentrations of Credit Risk
• Foreign Currency Risk

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

The City participates in the Local Agency Investment Fund (LAIF), an investment pool for local governments and special districts managed by the State of California. Under Federal Law, the State of California cannot declare bankruptcy; therefore , deposits in LAIF shall not be subject to either of the following: (a) transfer or loan pursuant to Government Code Sections 16310, 16312, or 16313, or (b) impoundment or seizure by any state official or state agency.

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82 City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

The City participates in the Placer County Treasurers Investment Portfolio, an investment pool for local governments, school districts, and special districts in Placer County. Investments are made in accordance with Government Code Section 27000.5, “When investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds, the primary objective of the county treasurer is to safeguard the principal of the funds under his or her control. The secondary objective is to meet the liquidity needs of the depositor. The third objective is to achieve a return on the funds under his or her control.”

Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value Measurement and Application. Accordingly, the change in fair value of investments is recognized as an increase or decrease to investment assets and investment income.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction. In determining this amount, three valuation techniques are available:

• Market approach - This approach uses prices generated for identical or similar assets or liabilities.

The most common example is an investment in a public security traded in an active exchange such as the New York Stock Exchange.
• Cost approach - This technique determines the amount required to replace the current asset. This approach may be ideal for valuing donations of capital assets or historical treasures. • Income approach - This approach converts future amounts (such as cash flows) into a current discounted amount.

Each of these valuation techniques requires inputs to calculate a fair value. Observable inputs have been maximized in fair value measures, and unobservable inputs have been minimized.

D. Interfund Receivables and Payables

Items classified as interfund receivables/payables are referred to as “advances to/advances from other funds” or as “due to/from other funds”. Due to/from other funds include short-term lending/borrowing transactions between funds. This classification also includes the current portion of an advance to or from another fund.

Advances to/advances from other funds represents non -current portions of any long-term lending/borrowing transactions between funds. This amount will be equally offset by a reserve of fund balance, which indicates that it does not represent available financial resources, and is not available for appropriation.

E. Receivables

In the government -wide statements, receivables consist of all revenues earned at year -end and not yet received. Major receivable balances for the governmental activities include property taxes, sales and use taxes, transient taxes, franchise taxes, intergo vernmental subventions, interest earnings, and expense reimbursements.

In the fund financial statements, material receivables in governmental funds include revenue accruals such as property tax, sales tax, transient tax, franchise tax, and intergovernmental subventions since they are usually both measurable and available. Non-exchange transactions collectible but not available, such as property tax, are deferred in the fund financial statements in accordance with the modified accrual basis, but not deferred in the government-wide financial statements in accordance with the accrual basis.

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Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available. The City’s experience is that all accounts receivable are collectible; therefore an allowance for doubtful accounts is unnecessary.

F. Loans Receivable

Under the City’s housing assistance program, loans are made to qualified individuals and businesses within prescribed project areas for the purpose of housing acquisition, housing rehabilitation and/or economic development. The majority of these loans are on a deferred payback program . Repayments of the outstanding loans are applied to the principal balance of the loan receivable. The long-term portion of loans receivable has been offset by Unearned Revenues in the accompanying financial statements, as applicable.

G. Leases Receivable

The City’s measures leases receivable at the present value of rent payments expected to be received during the contract term. The City records deferred inflow s of resources at the initiation of the contract in an amount equal to the initial recording of the leases receivable plus incentive payments received, if any. The deferred inflow of resources is amortized on a straight-line basis over the term of the contract. If there is no stated rate in the contract and the implicit rate cannot be determined, the City uses its own estimated incremental borrowing rate as the discount rate to measure the leases receivable. The City’s estimated incremental borrowing rate is based on its actual incremental borrowing rate for the most recent debt issuance.

H. Inventories

The City maintains an inventory for fuel that is recorded at cost in the Fleet Internal Service Fu nd and expensed when consumed. The cost of other consumable materials and supplies on hand are immaterial to the financial statements, and the City has therefore chosen to report these items as expenditures/expenses at the time of purchase.

I. Prepaid Items

Prepaid items are also recognized under the consumption method. Payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid expenses in both government-wide and fund financial statements.

J. Capital Assets

The City's assets are capitalized at historical cost or estimated historical cost, if actual is unavailable, except for donated capital assets. Donated works of art and similar items, and capital assets received in a service concession arrangement , are reported at acquisition value at the date of donation. Policy has set the capitalization threshold for reporting at $10,000 for non-i nfrastructure capital assets, $5,000 for grant funded non-infrastructure capital assets, and $100,000 for infrastructure capital assets.

Public domain (infrastructure) capital assets include streets, bridges, curbs and gutters, sidewalks, drainage systems, and lighting systems. The accounting treatment of property, plant and equipment (capital assets) depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements.

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Depreciation/amortization of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation/amortization reflected in the Statement of Net Position. Depreciation/amortization is provided over the assets’ estimated useful lives using the straight - line method of depreciation. The range of estimated useful lives by asset type is as follows:

Equipment, machinery and vehicles 3-10 years
Facilities and improvements 15 years
Infrastructure 25-50 years
Buildings and building improvements 30 years

Intangible right-to-use lease assets are amortized over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised, then the lease asset is amortized over the useful life of the underlying asset.

Intangible right-to-use subscription assets are amortized over the shorter of the subscription term or the useful life of the underlying information technology asset.

In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for in the same way as in the government-wide statements.

K. Deferred Outflows/Deferred Inflows

Deferred outflows of resources is a consumption of net assets by the City that is applicable to a future reporting period; for example, prepaid items and deferred charges. Deferred inflows of resources is an acquisition of net assets by the City that is applicable to a future reporting period; for example, unearned revenue and advance collections. The City has deferred outflows and deferred inflows of resources related to the implementation of GASB 68 for pension retirement plan s, GASB 75 for Other Post Ret irement Benefit Plans, and leases receivables.

L. Interest Payable

In the government -wide financial statements, interest payable on long -term debt is recognized as an incurred liability for governmental fund types. The City has not allocated the interest on long- term debt to departments.

In the fund financial statements, governmental fund types do not recognize the interest payable when the liability is incurred. Interest on long-term debt is recorded in the fund statements when payment is made.

M. Claims Payable

The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for general liability claims. The estimated liability for these claims includes "incurred but not reported" (IBNR) claims. There is no fixed payment schedule to pay these liabilities.

N. Compensated Absences

The City recognizes a liability for compensated absences for leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years,

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and (3) is more likely than not to be used as time off or settled during or upon separation from employment.

Based on the criteria listed, two types of leave qualify for liability recognition for compensated absences – vacation and sick leave. The liability for compensated absences is reported as incurred in the government - wide and proprietary fund financial statements. The liability for compensated absences includes salary - related taxes and benefits, where applicable.

Vacation
The City’s policy permits employees to accumulate earned but unused vacation benefits, which are eligible for payment at the employee’s current pay rate upon separation from employment.

Sick Leave
The City’s policy permits employees to accumulate earned but unused sick leave. Upon separation from service, some employees in certain bargaining units are eligible for partial payment of unused benefits at the rate of pay on separation. A liability for both the estimated value to be used and paid out is included in the liability for compensated absences.

O. Long-Term Liabilities

The accounting treatment of long-term liabilities depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government -wide or fund financial statements.

All long -term liabilities to be repaid from governmental resources are reported as liabilities in the government-wide statements. The long -term liabilities consist of Lease Revenue Bonds and unamortized premiums, direct borrowings, the net OPEB liability, the pension obligations, compensated absences, and a liability for claims.

Long-term liabilities for governmental funds are not reported as liabilities in the fund financial statements.

The debt proceeds are reported as revenue. Payment s of principal and interest reported as expenditures.

Long-term liabilities for proprietary funds are reported in the f und statements similar to how they are reported in the government -wide statements. Debt proceeds are reported as liabilities and payments are reported as reductions to the liability and as interest expense.

P. Subscription Based Information Technology Arrangements

The City recognizes subscription liabilities with an initial, individual value of $50,000 or more. The City uses its estimated incremental borrowing rate to measure subscription liabilities unless it can readily determine the interest rate in the arrangement. The City’s estimated incremental borrowing rate is based on its actual incremental borrowing rate for the most recent debt issuance.

Q. Pensions Expense

For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) pla ns (the Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

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R. Other Postemployment Benefits Other Than Pensions (OPEB)

For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense information about the fiduciary net position of the City’s Retiree Benefits Plan (the OPEB Plan) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the OPEB Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms.

Investments are reported at fair value, except for money market investments and participating interest - earning investment contracts that have a maturity at the time of purchase of one year or less, which are reported at cost.

Valuation Date June 30, 2024
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024

S. Fund Balances

In accordance with GASB 54, Fund Balance Reporting and Governmental Fund Type Definitions, the City classifies governmental fund balances as follows:

Nonspendable
• Assets that will never convert to cash (prepaid items, inventory). • Assets that will not convert to cash soon enough to affect the current period (long-term loans receivable). • Resources that must be maintained intact pursuant to legal or contractual requirements (the principal of an endowment).

Restricted
• Resources that are subject to externally enforceable legal restrictions imposed by parties outside the City (Creditors, Grantors, Contributors, other Governments). • Resources that are subject to limitations imposed by law through constitutional provisions or legislation (Gas Tax).

Committed
• Self-imposed limitations set in place prior to the end of the period (encumbrances, economic contingencies, and uncertainties).
• Limitation established at the highest level of decision -making (Council) and requires formal action at the same level to remove.
• Council resolution is required to establish, modify, or rescind a fund balance commitment.

Assigned
• Amounts in excess of nonspendable, restricted, and committed fund balance in funds other than the General Fund are reported as assigned fund balance.

Unassigned
• Residual net resources.
• Total fund balance in the General Fund in excess of nonspendable, restricted, committed, and assigned fund balance (surplus).
• Excess of nonspendable, restricted, and committed fund balance over total fund balance (deficit).

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Flow Assumption / Spending Order Policy
When expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to be spent first. When expenditures are incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to be spent first out of committed funds, then assigned funds, and finally, unassigned funds, as needed, unless the City Council has directed otherwise.

T. Net Position

In the government-wide financial statements, net position is classified in the following categories:

Net Investment in Capital Assets
This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets. In addition, deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are also included in the net investment in capital assets component of net position.

Restricted Net Position
This amount is restricted by external creditors, grantors, contributors, or laws and regulations of other governments. Certain proceeds from debt and loans are reported as restricted net position because their use is limited by applicable debt or other covenants.

Unrestricted Net Position
This amount is net position that do es not me et the definition of "net investment in capital assets" or "restricted net position."

The detail of amounts reported for each of the above defined net position categories is reported in the government-wide Statement of Net Position.

Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position is available, the City's policy is to apply restricted net position first.

U. Interfund Transactions

Interfund services provided and used are accounted for as revenue, expenditures or expenses, as appropriate.

Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursed fund.

Nonrecurring or non-routine permanent transfers of equity are reported as residual equity transfers. All other interfund transactions, except for interfund services provided and used and reimbursements, are reported as transfers.

V. Property Taxes and Special Assessments

Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the cities in accordance with statutory regulations.

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Property taxes attach annually as an enforceable lien on January 1. Taxes are levied on January 1, are payable in two installments, and are delinquent at December 10 and April 10. The County of Placer (the County) is responsible for the collection and allocation of property taxes. The County apportions secured property tax revenue in accordance with the alternate methods of distribution, the “Teeter Plan,” as prescribed by Section 4717 of the California Revenue and Taxation code. Therefore, the City receives 100% of the secured property tax levies to which it is entitled, whether or not collected.

W. Stewardship, Compliance, and Accountability

It is the City's policy to adopt annual budgets. The City Council may amend the budget by motion during the fiscal year.

Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at the end of the fiscal year. Budget information is presented for governmental fund types on a basis consistent with accounting principles generally accepted in the United States of America. Budgeted revenue and expenditure amounts represent the original budget and all approved budget amendments.

The City follows these procedures in establishing the budgetary data reflected in the financial statements:

1. Public meetings are conducted to obtain public comments. The City Council annually adopts the budget for the ensuing fiscal year prior to July 1st.

2. Legally adopted budgets and formal budgetary integration is employed as a management control device during the year for all Governmental, Proprietary and Fiduciary Fund Types.

3. Under Article XIII B of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess m ust either be refunded to the State Controller, returned to the taxpayers through revised tax rates or revised fees schedules, or an excess in one year may be offset against a deficit in the following year. For the fiscal year ended June 30, 2025, based on the City’s calculations, proceeds of taxes did not exceed the appropriations limit.

4. Budgeted appropriations for the various governmental funds become effective each July 1st.

X. Unearned Revenue

Unearned revenue arises when assets are received before revenue recognition criteria have been satisfied.

Grants and entitlements received before eligibility requirements are met are recorded as deferred inflows from unearned revenue. In the governmental f und financial statements, receivables associated with non- exchange transactions that will not be collected within the availability period have been recorded as deferred inflows from unavailable resources.

Y. Use of Estimates

The preparation of basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

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June 30, 2025

Z. Comparative Data

Comparative data for the prior year has been presented in the accompanying financial statements in order to provide an understanding of changes in the government's financial position and operations.

AA. Implementation of New Accounting Pronouncements

GASB Statement No. 101, Compensated Absences

During the year, the City implemented GASB Statement No. 101 Compensated Absences. This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through nonc ash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences.

However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences.

This Statement requires that a liability for certain types of compensated absences—including parental leave, military leave, and jury duty leave —not be recognized until the leave commences. This Statement also requires that a liability for specific types of compensated absences not be recognized until the leave is used.

A liability for leave that has been used but not yet paid or settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary -related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities. The implementation of this standard did not have a material impact on the City’s financial statements.

GASB Statement No. 102, Certain Risk Disclosures

This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued.

If a government determines that those criteria for disclosure have been met for a concentration or constraint, it should disclose information in the notes to financial statements in sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and the government’s vulnerability to the risk of a substantial impact. The disclosure should include descriptions for (1) the concentration or constraint, (2) each event associated with the concentration or constraint that could cause a substantial impact if the event had occurred or had begun to occur prior to the issuance of the financial statements, and (3) actions taken by the government prior to the issuance of the financial statements to mitigate the risk. The requirements of this Statement are effective for fiscal years beginning after June 15,

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June 30, 2025

2024, and all reporting periods thereafter. The implementation of this standard did not have a material impact on the City’s financial statements and management determined there were no concentrations or constraints that make the City vulnerable to the risk of substantial impact.

BB. Upcoming New Accounting Pronouncements

The City is currently analyzing its accounting practices to determine the potential impact on the financial statements of the following recent GASB Statements:

GASB Statement No. 103, Financial Reporting Model Improvements

This Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability.

This Statement establishes new accounting and financial reporting requirements or modifies existing requirements related to (a) Management’s D iscussion and A nalysis (MD&A), (b) Unusual or infrequent items, (c) Presentation of the proprietary fund statement of revenues, expenses, and changes in fund net position, (d) Information about major component units in basic financial statements , (e ) Budgetary comparison information, and (f) Financial trend information in the statistical section

The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter.

GASB Statement No. 104, Disclosure of Certain Capital Assets

This Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right -to-use assets reco gnized in accordance with Statement No. 94, Public -Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital assets note disclosures. Subscription assets r ecognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class.

This Statement also requires additional disclosures for capital assets held for sale. A capital asset is a capital asset held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it is probable that the sale will be finalized within one year of the financial statement date. Governments should consider relevant factors to evaluate the likelihood of the capital asset being sold within the established time frame. This Statement requires that capital assets held for sale be evaluated each reporting period.

Governments should disclose (1) the ending balance of capital assets held for sale, with separate disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major class of asset. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter.

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91 City of Rocklin
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June 30, 2025

NOTE 2 - CASH AND INVESTMENTS

As of June 30, 2025, cash and investments were reported in the financial statements as follows:

A. Cash Deposits

The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest and places the City ahead of general creditors of the institution.

The market value of pledged securities must equal at least 110 percent of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes that have a value of 150 percent of the City's t otal cash deposits. The City has waived the collateral requirements for cash deposits, which are fully insured to $250,000 by the Federal Deposit Insurance Corporation (FDIC).

The bank balances before reconciling items totaled $12, 457,912 at June 30, 2025, and could be different from carrying amounts due to deposits in transit and outstanding checks. The uninsured amount was $11,889,380, which was collateralized by securities held by pledging financial institutions.

B. Local Agency Investment Fund

LAIF is regulated by the California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. As of June 30, 2025, the fair value was $65,359,644.

The balance is available for withdrawal on demand. Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage -backed securities, other asset- backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government -sponsored enterprises, United States Treasury Notes and Bills, and corporations. As of June 30, 2025 , these investments matured in an average of 248 days.

C. Placer County Treasurer’s Investment Portfolio

The Placer County Treasurer’s Investment Portfolio operates under the oversight of the Placer County Treasurer’s Review Panel. Investments are made in accordance to California Government Code Section 27000.5 and limited to those investments specified by California Government Code Sections 53601 and 53635. As of June 30, 2025, the value of City investment in the fund was $9, 385,465. These monies are held in various investments consisting of treasury notes and bills, other government bonds , and money market instruments.

Total
Governmental Fiduciary Cash and
Activities Activities Investments
Cash and Investments 157,464,585$ 7,043,962$ 164,508,547$ Restricted Cash and Investments 1,257,595 4,084,441 5,342,036 Total Cash and Investments 158,722,180$ 11,128,403$ 169,850,583$ Fair Value

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92 City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

D. Investment Policies

City Investment Policy
Under the provisions of the City's investment policy, and in accordance with California Government Code, the following investments are authorized:

Category Standard
U.S. Treasuries No portfolio limit; 5 years max maturity Federal Agencies No portfolio limit; 20% max callable federal agency securities; 30% max per institution/issuer; 5 years max maturity
Supranational Obligations "AA" rated or better by a NRSRO; 30% portfolio max; 10% max per institution/issuer; 5 years max maturity; USD denominated senior unsecured unsubordinated obligations issued or
unconditionally guaranteed by IBRD, IFC, or IADB; Eligible for purchase and sale within the U.S.

Municipal Securities (CA, Other States) "A" rating category or better by a NRSRO; 30% portfolio max; 5% max per institution; 5 years max maturity
Corporate Medium Term Notes "A" rating category or better by a NRSRO; 30% portfolio max; 5% max per institution/issuer; 5 years max maturity; Issued by corporations organized and operating within the U.S. or by depository institutions licensed by the U.S. or any state and operating within the U.S.

Mortgage-Backed Securities "AA" rating category or better by a NRSRO; 20% portfolio max; 5% max per institution/issuer; 5 years max maturity; Mortgage Pass-Through Securities, Collateralized Mortgage Obligations, Asset-Backed, or Mortgage-Backed bonds
Negotiable Certificates of Deposit (NCD) The amount invested in NCDs subject to limitations of California Government Code; Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated “A-1” or better by a NRSRO; or long-term obligations rated “A” or its equivalent or better by a NRSRO; 30% portfolio max (combined with CDARS); 5% max per
institution/ issuer; 5 years max maturity

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Category Standard
Time Deposits (Non-negotiable CD/TD) 20% portfolio max; Max per institution/issuer limited to maximum covered under federal insurance; 5 years max maturity; Non-negotiable time deposits FDIC or collateralized in accordance with California Government Code and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA)
Collateralized Bank Deposits No portfolio limit; deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651 Banker’s Acceptances Short-term debt obligations "A-1" rating category or better by a NRSRO or long- term debt obligations "A" rating category or better by a NRSRO; 40% portfolio max; 5% max per institution/issuer; 180 days max maturity Commercial Paper Issued by domestic corporation with assets >$500 million and having an "A-1" long-term rating or better by a NRSRO or if the issuer has other debt obligations, having an "A" long-term rating or better by a NRSRO; or Issuer organized in the U.S. as a special purpose corporation, trust, or limitied liability company with program-wide credit enhancements and an "A-1" rating or better by a NRSRO; 25% portfolio max; 5% max per institution/issuer; 10% max of the outstanding paper of the issuing corporation; 270 days maturity Money Market Mutual Funds 20% portfolio max; 20% max per shares of any one Money Market Mutual Fund; Shares of beneficial interest issued by Mutual Funds and Money Market Funds registered with SEC under the Investment Company Act of 1940; Companies shall either: (i) Attain highest rating by two NRSROs; or (ii) Have an investment adviser registered with SEC with > 5 years experience investing in securities as authorized by by California Government Code, Section 53601, inclusive and with AUM >$500 million; The purchase price of shares of Mutual Funds or Money Market Funds shall not include any commission that the companies may charge
Mutual Funds 20% portfolio max; 10% max per shares of any one mutual fund; Shares of beneficial interest issued by Mutual Funds and Money Market Funds registered with SEC under the Investment Company Act of 1940; Companies shall either:
(i) Attain highest rating by two NRSROs; or (ii) Have an investment adviser registered with SEC with > 5 years experience investing in securities as authorized by California Government Code, Section 53601 and with AUM >$500 million; Mutual Funds that invest in securities and obligations as authorized under California Government Code, Section 53601 (a) to (k) and (m) to (q). The purchase price of shares of Mutual Funds or Money Market Funds shall not include any commission that the companies may charge Local Agency Investment Fund (LAIF) Maximum amount permitted by State law and LAIF Local Government Investment Pools 25% portfolio max in the Placer County Treasurer's Investment Pool Repurchase Agreements No portfolio limit; 1 year max maturity; 102% collateralized; Securities used as collateral for Repurchase Agreements will be delivered to an acceptable third-party custodian; Repurchase agreements are subject to a Master Repurchase Agreement (in the form developed by SIFMA) between the City and the provider of the repurchase agreement

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E. Risk Disclosures

Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the term of an investment’s maturity, the greater the sensitivity to changes in market interest rates. It is the City’s practice to manage its exposure to interest rate risk by purchasing a combination of shorter and longer -term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for the City’s operations. The City’s policy is to limit the weighted average maturity of its investment portfolio to less than five years. As of June 30, 2025, none of the City investments exceeded five years and 6 5% of the City’s total cash and investments were liquid or matured within one year.

Credit Risk

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of an investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. As of June 30, 2025, the City’s investments were in compliance with the ratings required by the City’s investment policy, indenture agreements and Government Code.

Concentrations of Credit Risk

As of June 30, 2025, the City had no investments in any one issuer exceeding that allowed by City policy, which is more conservative than stipulated by the California Government Code.

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 investments or collateral securities that are in the possession of an outside party. The California Government Code and the City's investment policy contains legal or policy requirements that would limit the exposure to custodial credit risk for investments.

For the investments maintained by the City, no security was uninsured, or unregistered , or held by a brokerage firm which is also the counterparty for the security. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).

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95 City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

As of June 30, 2025, the City’s investments had the following maturities and ratings:

F. Fair Value Measurements

GASB 72 established a hierarchy of inputs to valuation techniques. This hierarchy has three levels:
• Level 1 inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other than quoted prices that are observable. • Level 3 inputs are unobservable inputs, such as a property valuation or an appraisal.

NOTE 3 - ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following as of June 30, 2025:

Fair AAAm/ Not G72
Cash or Investment Type Value <1 Year >1 Year Exempt Aaa-mf Rated Input Local Agency Investment Fund (LAIF) 65,359,644$ 65,359,644$ -$ 65,359,644$ -$ -$ Level 1/2 Money Market/Mutual Funds 5,659,543 5,659,543 - - 5,659,543 - Level 2 Special Assessment Bonds 4,614,604 - 4,614,604 - - 4,614,604 Level 1/2 County Treasurer's Investment Portfolio 9,385,465 9,385,465 - 9,385,465 - - Level 2 Cash with Fiscal Agent 4,084,539 - 4,084,539 - - 4,084,539 Level 1 Cash on Hand 3,328 3,328 - 3,328 - - n/a Chandler Investments:

Agency 3,202,670 - 3,202,670 - 3,202,670 - Level 1 Agency CMBS 3,304,742 - 3,304,742 - 3,304,742 - Level 1 Corporate 17,769,005 - 17,769,005 - 17,769,005 - Level 1 Money Market Fund 407,840 411,992 (4,152.00) - 407,840 - Level 1 Supranational 3,706,545 - 3,706,545 - 3,706,545 - Level 1 US Treasury 44,566,582 22,167,544 22,399,038 - 44,566,582 - Level 1 Municipal Bond 611,532 611,532 - - 611,532 - n/a Cash 1,095 1,095 - - 1,095 - n/a Cash Deposits 7,173,449 7,173,449 - 7,173,449 - - n/a Total Cash and Investments 169,850,583$ 110,773,592$ 59,076,991$ 81,921,886$ 79,229,554$ 8,699,143$ Investment Maturities Year End Rating
Streets Internal
General Sale s Tax Grants Nonmajor Service
Receivables Fund SB325 Fund Funds Funds Total
Federal Government -$ -$ 81,814$ 134,394$ -$ 216,208$ State Government - - - 926,108 - 926,108 Local Taxes 5,609,737 - - 257,862 - 5,867,599 Local Other 1,362,259 338,555 1,229,898 478,615 1,515 3,410,842 Totals 6,971,996$ 338,555$ 1,311,712$ 1,796,979$ 1,515$ 10,420,757$

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96 City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

NOTE 4 - LEASES RECEIVABLES

As of June 30, 2025, the City’s leases receivable were $3,615,516 and deferred inflows of resources were $3,312,511. The net present value of the leases receivable was valued using an interest rate of 2.95% with annual payments of $325,000 over sixteen years.

The future payments were as follows:

NOTE 5 - INTERFUND TRANSACTIONS

A. Interfund Receivables and Payables

Due To/From Other Funds

The timing of when cash is received and paid can result in a negative cash balance in a fund as of fiscal year end. At year-end, a liability, “Due To Other Funds” is created to eliminate any negative cash balances along with a corresponding asset, “Due From Other Funds ”. In the following fiscal year, the liabilities are settled and the assets are liquidated. As of June 30, 2025, interfund receivables and payables consisted of the following:

Year Ending
June 30 Principal Interest Total
2026 221,319$ 103,681$ 325,000$
2027 227,937 97,063 325,000
2028 234,752 90,248 325,000
2029 241,772 83,228 325,000
2030 249,002 75,998 325,000
2031-2035 1,361,247 263,753 1,625,000
2036-2039 1,079,487 58,013 1,137,500
Total 3,615,516$ 771,984$ 4,387,500$
Due from Due to
Fund Other Funds Other Funds
General Fund 1,512,405$ -$
Streets Grants Fund - 897,
795
Nonmajor Funds - 614,610
Total 1,512,405$ 1,512,405$

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97 City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

B. Transfers In/Out

Interfund transfers result from the movement of resources from one fund to another within the governmental unit. At June 30, 2025, interfund transfers consisted of the following:

Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, and (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due.

Fund Fund Type Transfers in Transfers out
Major Funds:

General Fund General 6,503,717$ 1,340,003$
Low Mod Income Housing Asset Special Revenue - 150,181 Traffic Circulation Impact Fee Capital Projects - 381,470 Nonmajor Funds:

Capital Construction Debt Service Debt Service 531,432 - Gas Taxes Special Revenue - 184,197
SB1 Road Maintenance and Rehab Act Special Revenue 107,613 - Lighting Maintenance District #1 Special Revenue - 2,288 Sales Tax SB 325 Special Revenue 87,177 885,615 Community Facilities District No. 1 Special Revenue - 2,435,166 Community Facilities District No. 5 Special Revenue 18,006 920,745 Community Facilities District No. 6 Special Revenue - 49,073 Landscaping and Lighting Maintenance District No. 2 Special Revenue - 420,809 Park Development & Maintenance Tax Fund Special Revenue - 655,719 Streets SR/Grants Special Revenue 55,316 87,177 Traffic Safety/PD Grants Special Revenue 2 -
OPIOID Settlement Special Revenue - 173,077 CDBG HUD Entitlement Special Revenue - 57,055 Grants and Other Reimbursables Special Revenue - 33,119 Supplemental Law Enforcement Grant Special Revenue - 215,348 Capital Construction Tax Capital Projects - 531,432 Oak Tree Mitigation Capital Projects - 20,706 Whitney Ranch Trunk Sewer Project Capital Projects - 5,261 Whitney Ranch Interchange Fees Capital Projects - 3,326 Wetlands Maintenance Permanent - 2,691
Conservation Easement Endowment Fund Permanent - 18,006 Total Governmental Funds 7,303,263 8,572,464
Internal Service Funds:

Fleet Management Internal Service 1,340,000 66,600
Risk Management ISF Internal Service - 4,199 Total Internal Service Funds 1,340,000 70,799
Total Transfers 8,643,263$ 8,643,263$

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98 City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

NOTE 6 - LOANS RECEIVABLE
Through the City’s various programs , the City has loaned funds to qualifying individuals and businesses.

Interest rates vary depending on the terms of the loan. Interest is accrued on the loans that bear interest.

Loans receivable consisted of the following as of June 30, 2025:

The following is a summary of the loans and notes receivable outstanding as of June 30, 2025:

Highway 65 Sunset Interchange Loan
As members of the “Bizz Johnson Joint Powers Authority” (JPA), Placer County, the City of Roseville, and the City of Rocklin made loans to the JPA for the construction of the Sunset Blvd. Highway 65 interchange.

The original loan amount from the City of Rocklin was $2,033,684. The loan does not bear interest. The timing of the JPA repayments is at the discretion of the JPA Board. At June 30, 2025, a balance of $481,555 was outstanding.

William Jessup University Ave.

On February 25, 2017 , the City entered into a reimbursement agreement with WJU to release WJU from obligations for street improvements on University Ave that were completed by the City. In lieu of WJU’s construction and street improvements, WJU was to reimburse the City $3,015,066 . Reimbursement payments were to be made over 6 years (2019 to 2024) and bear interest at 2.15% per annum, with the final payment due July 1, 2024. There was no balance outstanding as of June 30, 2025.

Community Development Block Grant (CDBG) Revolving Loans The City participated in a CDBG Revolving loan program. The program is federally funded and provide d housing rehabilitation loans to eligible applicants. The City made loans to resident homeowners who qualify as low income, some of which are deferred and are not repaid until the title to the property changes. The balance of these loans at June 30, 2025 was $310,714.

First Time Home Buyers
The City has made various loans to qualifying participants within the City as part of the Federal First Time Home Buyers Program (HOME). Interest rates vary depending on the terms of the loan and interest is deferred until the loan is refinanced or title t o the property changes and may be waived under certain conditions if the loan is carried to full term. The HOME notes receivable balance at June 30, 2025 was $623,856.

Loans Receivable Beginning Additions Deletions Ending
Highway 65 Sunset Blvd. Interchange 669,665$ -$ 188,110$ 481,555$ William Jessup University Ave. 502,511 - 502,511 - Community Development Block Grant 310,714 - - 310,714 First Time Home Buyers 623,856 - - 623,856 Down Payment Assistance 923,657 8,000 80,830 850,827 Villa Serena II 377,964 - 113,804 264,160 College Manor 650,000 - - 650,000 Sunset Blvd 575,000 - - 575,000 HPD Shannon Bay 415,212 - 10,890 404,322 Placer West Housing Partners 311,470 - - 311,470 Placer County Flood Control District 13,225 - 13,225 - Total Loans Receivable 5,373,274$ 8,000$ 909,370$ 4,471,904$

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99 City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

Down Payment Assistance Loans
The former Rocklin Redevelopment Agency had a down payment assistance program in 2007 to help low and moderate income individuals with purchases of a home. Qualifying individuals received down payment assistance with the loan deferred as long as it is an owner-occupied dwelling. Interest and/or principal may be waived if certain terms are met by the borrower. The Down Payment Assistance loans receivable at June 30, 2025 was $850,827.

Villa Serena II Loan
On July 24, 2001, the former Rocklin Redevelopment Agency entered into an agreement with Stanford Arms, a California Limited Partnership, for a loan in the amount of $1,100,000. The loan has been used to assist with the construction of the Villa Serena affordable senior project known as Stanford Arms. The loan is at 3% simple interest and is to be repaid from residual receipts over a thirty-year period. The final payment date is dependent on residual receipts. The loan is secured by a deed of trust covering the property, improvements, fixtures and by all deposits of the borrower. At June 30, 2025, a balance of $ 264,160 was outstanding.

College Manor
On November 1, 2007, the former Rocklin Redevelopment Agency entered into an agreement with CAHA College Manor LP, a California Limited Partnership, for a loan in the amount of $650,000. The loan has been used to finance the acquisition and renovation of l ow-income apartments located at 4201 Racetrack Road. The loan is at 3% simple interest and is to be repaid from residual receipts over a fifty -five-year period. The final payment date is dependent on residual receipts. At June 30, 2025, a balance of $ 650,000 was outstanding.

Sunset Blvd
On June 24, 2008, the former Rocklin Redevelopment Agency authorized a loan in the amount of $575,000 to Sunset Street Housing Partners for an existing apartment complex located at 3655 Sunset Blvd. The loan provides for 3% simple interest for 30 years with payments to begin after the second anniversary of the loan document execution date and the final payment due December 22, 2038. Associated with this project, the former Rocklin Redevelopment Agency also approved Conduit Debt issuance in the maximum amount of $10,000,000 in multifamily revenue bonds by the California Statewide Communities Development Authority. At June 30, 2025, a balance of $575,000 was outstanding.

HPD Shannon Bay, LP
On September 9, 2008, the former Rocklin Redevelopment Agency authorized a housing rehabilitation loan in the amount of $500,000 with HPD Shannon Bay LP for a 50 -unit multi-family housing project referred to as the Shannon Bay Apartments. The loan provides for 3% simple interest for 30 years with a five-year period of interest only payments. The loan then converts to an amortizing loan during which time an annual payment of $25,296 will be paid and at the end of the loan term a balloon payment for the remaining balance becomes due and payable. The final payment is due January 11, 2040. Associated with this project, the former Rocklin Redevelopment Agency also approved Conduit Debt issuance in the maximum amount of $6,000,000 in multifamily revenue bonds by the California Statewide Communities Development Authority. At June 30, 2025, a balance of $404,322 was outstanding.

Placer West Housing Partners, LP
On December 8, 2009, the former Rocklin Redevelopment Agency authorized a housing rehabilitation loan in the amount of $500,000 with Placer West Housing Partners LP for a 44- unit affordable housing project located at 6055 Placer West Drive in Rocklin. The loan provides for 3% simple interest for 30 years with partial interest only payments in the amount of $2,000 to begin on the second anniversary of the loan document execution date of December 22, 2009. The final payment is due December 21, 2040. A balloon

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City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

payment of the remaining unpaid balance of principal and interest shall be due at the conclusion of the loan term. At June 30, 2025, a balance of $311,470 was outstanding.

Placer County Flood Control District
During the fiscal year ended June 30, 2018, the City authorized a $182,063 loan with the Placer County Flood Control District (the District) to help fund the Antelope Creek Flood Control Project, Upper Weir.

The District intended to fund the project through a combination of the Dry Creek Trust Fund and two Department of Water Resources g rants. The District was to make future reimbursement payments to each participant totaling the amount of each participant’s original advance payment plus simple interest as determined by the Construction Cost Index (CCI). The City ha d a 13.42% share of the total project costs.

Reimbursement of advanced payment was to be made twice yearly when the Trust Fund ha d a balance of at least $25,000 over the minimum balance of $50,000. At June 30, 2025, no balance was outstanding.

NOTE 7 - CAPITAL ASSETS

Capital assets consisted of the following as of June 30, 2025:

Depreciation expense was charged to the following functions in the statement of activities:

Governmental activities: Beginning Additions Retirements Transfers Ending Nondepreciable Capital Assets:

Land 8,338,942$ -$ -$ -$ 8,338,942$ Land Improvements 108,402 - - - 108,402 Park Land 61,097,079 - - - 61,097,079 Construction In Progress 16,415,766 13,200,755 (83,044) (15,803,165) 13,730,312 Total Nondepreciable Capital Assets 85,960,189 13,200,755 (83,044) (15,803,165) 83,274,735 Depreciable/amortizable capital assets:

Subscription right of use assets 609,650 - - - 609,650 Buildings 35,369,470 - - - 35,369,470 Facilities & Other Improvements 7,744,496 - - - 7,744,496 Machinery & Equipment 3,957,671 139,601 (155,511) - 3,941,761 Fleet Machinery & Equipment 17,603,175 1,147,723 (1,205,746) - 17,545,152 Park Buildings 2,717,879 - - - 2,717,879 Park Equipment 1,629,694 75,910 (33,063) - 1,672,541 Park Improvements 28,922,543 - - 2,388,471 31,311,014 Infrastructure 436,781,170 (3,935,273) 13,414,694 446,260,591 Total Depreciable/Amortizable 535,335,748 1,363,234 (5,329,593) 15,803,165 547,172,554 Total Capital Assets 621,295,937 14,563,989 (5,412,637) - 630,447,289 Accumulated Depreciation/Amortization:

Subscription right of use assets 13,039 6,521 - - 19,560 Buildings 24,327,148 964,015 - - 25,291,163 Facilities & Other Improvements 4,798,734 322,365 - - 5,121,099 Machinery & Equipment 3,179,268 141,297 (155,511) - 3,165,054 Fleet Machinery & Equipment 10,535,694 1,075,277 (1,205,746) - 10,405,225 Park Buildings 1,006,832 82,287 - - 1,089,119 Park Equipment 1,629,694 - (33,063) - 1,596,631 Park Improvements 20,429,647 1,124,729 - - 21,554,376 Infrastructure 218,125,349 11,330,117 (3,935,273) - 225,520,193 Total Accumulated Depreciation/Amort. 284,045,405 15,046,608 (5,329,593) - 293,762,420 Total Capital Assets - Net 337,250,532$ (482,619)$ (83,044)$ -$ 336,684,869$ Public Safety 856,305
Parks and Recreation 1,249,525
Public Works 12,940,778
Total Depreciation/Amortization Expense 15,046,608$

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101
City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

NOTE 8 - NONCURRENT LIABILITIES

The City's noncurrent liabilities consisted of the following as of June 30, 2025:

The annual debt service requirements on general long-term debt is as follows:

2016 Rocklin Public Finance Authority Lease Revenue Bonds On October 4th, 2016, the Rocklin Public Financing Authority issued lease revenue bonds in the amount of $9,455,000, at a premium of $688,769, to defease the outstanding 2003 certificates of participation and finance the acquisition and construction of various capital improvement projects. The security for the bonds was the pledge of lease payment revenues received by the Authority under a lease agreement with the City.

These bonds were reported as City debt as required by GASB 62 and NCGA Statement 5. The term of the bonds was 25 years. Interest rates on the bonds range from 2% to 5%. Principal payments ranging from $245,000 to $525,000 are payable annually on November 1 st, and interest payments ranging from $7,875
to $180,973 are payable semi-annually on May 1 st and November 1 st, through November 1, 2040. The aggregate debt service savings was $15,000 from this refunding.

Due
Beginning Ending Within One
Description Balance Additions Deletions Balance Year
Lease Revenue Bonds:
2016 Lease Revenue Bonds 7,080,000$ -$ 315,000$ 6,765,000$ 330,000$ Unamortized Premiums 468,363 - 27,550 440,813 - Subtotal Lease Revenue Bonds 7,548,363 - 342,550 7,205,813 330,000 Direct Borrowings:

Pacific Premier Bank Loan - RPFA Refunding 1,029,183 - 508,181 521,002 521,002 Subscription Liabilities 598,561 - 2,732 595,829 2,778 Claims Payable 2,811,286 1,458,841 1,334,017 2,936,110 125,234 Net Pension Liability 66,883,471 4,989,212 7,775,367 64,097,316 - Net OPEB Liability 4,126,333 11,152,022 9,745,477 5,532,878 - Compensated Absences 3,543,996 4,455,607 4,305,565 3,694,038 2,531,134 Total Noncurrent Liabilities 86,541,193$ 22,055,682$ 24,013,889$ 84,582,986$ 3,510,148 $

Year Ending
June 30, Principal Interest Total Principal Interest Total 2026 330,000$ 198,350 528,350$ 521,002$ 5,731$ 526,733$ 2027 345,000
183,200 528,200 - - - 2028 360,000 169,100 529,100 - - - 2029 375,000 158,150 533,150 - - - 2030 380,000 150,363 530,363 - - - 2031-2035 2,060,000 593,738 2,653,738 - - - 2036-2040 2,390,000 262,050 2,652,050 - - - 2041-2045 525,000 7,873 532,873 - - - Total 6,765,000$ 1,722,824$ 8,487,824$ 521,002$ 5,731$ 526,733$ Lease Revenue Bonds Direct Borrowings

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102
City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

Rocklin Public Finance Authority Pacific Premier Bank Loan On July 1, 2017, the City, on behalf of Community Facilities Districts (CFD) 6, 8 and 9, agreed to borrow from the Rocklin Public Financing Authority (Authority) an amount necessary to refund 1999 CFD special tax bonds and pledged the special tax revenues levied in each CFD to the Authority. In the 2017 Special Tax Revenue Refunding Loan Agreement, the Authority agreed to borrow from Pacific Premier Bank the funds necessary to refund the 1999 CFD special tax bonds and, in turn, refund the 2003 Authority bonds.

The loan is secured by a pledge of the revenues received by the Authority from the 2017 CFD loan payments.

Pacific Premier Bank has no remedy against the City if special taxpayers in the CFD fail to make their payments. The loan was for $5,000,077 at a fixed interest rate of 2.2% and matures on September 1, 2025.

This loan was reported as City debt as required by GASB 62 and NCGA Statement 5. The refunding resulted in an economic gain of $1,989,923. The aggregate de bt service of the Pacific Premier loan was $233,844 less than the debt service requirements of the refund ed debt, including cash prepayments made during the refunding.

City of Rocklin Sunset Whitney Note
On December 18, 2017, the City entered into a note payable with Sunset Whitney, LLC to pay $3,000,000 as a part of a $5,800,000 purchase of golf course land. Principal and interest payments were to be made on the first of December each year, and interest accrued at 2% of the outstanding principal balance per annum for six years, beginning December 31, 2018. This note was fully paid during the year.

Subscription Based Information Technology Agreements
On July 1, 2021, the City entered into a 1,122 month subscription for the use of Priority Dispatch System Software. The initial subscription liability and right of use asset was $609,650. As of June 30, 2025, the value of the subscription liability was $595,829 and the right of use asset was $590,090, net of accumulated amortization totaling $19,560. The City is required to make annual fixed payments of $12,935. The subscription has an interest rate of 1.7047%. See Note 7 for more information regarding the changes in the subscription right of use assets. The following tabl e summarizes the future payments for the subscription liability.

Claims Payable
The City has recorded a liability for potential claims in excess of amounts covered by the insurance pool.

At June 30, 2025, the City had a claims payable lia bility of $2,936,110. See Note 9 for further discussion on the City’s risk management activities.

Net Pension Liability
As a result of the implementation of GASB 68, the City has recorded a net pension liability for its CalPERS Miscellaneous, Fire and Police pension plans. At June 30, 2025, the City had a net pension liability of $64,097,316. See Note 11 for further discussion on the pension liability.

Year Ending
June 30, Principal Interest Total
2026 2,778 $ 10,157 $ 12,935 $
2027 2,825 10,110 12,935
2028 2,874 10,061 12,935
2029 2,943 9,992 12,935
2030 2,993 9,942 12,935
Thereafter 581,416 560,570 1,141,986
Total 595,829 $ 610,832 $ 1,206,661 $

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103
City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

Net OPEB Liability
A net OPEB liability is the cumulative difference between annual OPEB cost and an employer’s contributions to a plan. At June 30, 2025, the City had a net OPEB obligation of $ 5,532,878. See Note 12 for further discussion on OPEB.

Compensated Absences
The City records compensated absences for all employee absences that are expected to be paid such as vacation and illness. Compensated absences had a balance of $3,694,038 at June 30, 2025; of that amount, $2,531,134 is expected to be paid within a year.

Arbitrage
The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of tax - exempt bonds after August 31, 1986. Arbitrage regulations deal with the investment of all tax-exempt bond proceeds at an interest yield greater than the interest yield to bondholders. Generally, all interest paid to bondholders can be retroactively rendered taxable if applicable rebates are not reported and paid to the Internal Revenue Service (IRS) at least every five years. The City performed calculations of excess investment earnings on various bonds and financings , and at June 30, 2025, there were no arbitrage liabilities.

NOTE 9 - NET POSITION/FUND BALANCE

Net Position
Net position consisted of the following as of June 30, 2025:

Restricted Unrestricted Total
Capital Assets - Net 336,684,869$ -$ -$ 336,684,869$ Associated Long-term Debt (8,322,643) - - (8,322,643) Deferred Gain on Refunding (442,204) - - (442,204) Fund Balance Restrictions - 41,015,846 - 41,015,846 Nonexpendable endowments - 491,455 - 491,455 Net Position - - 438,774,165 438,774,165 Net Investment in Capital Assets - - (327,920,022) (327,920,022) Restricted Net Position - - (41,507,301) (41,507,301) Total 327,920,022$ 41,507,301$ 69,346,842$ 438,774,165$ Net Investment
in Capital Assets

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104
City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

Fund Balance
Fund balances consisted of the following at June 30, 2025:

Nonspendable Restricted Committed Unassigned Total
Endowments 453,455$ -$ -$ -$ 453,455$ Wetlands Maintenance 38,000
17,957 - - 55,957 Debt Service - 597,384 - - 597,384 Low and Moderate Income Housing - 13,485,964 - - 13,485,964 SB325 Sales Tax - 5,561,942 - - 5,561,942 SB1 Road Maintenance & Rehab Act - 4,252,819 - - 4,252,819 Gas Tax - 2,563,943 - - 2,563,943 Lighting Districts - 1,286,348 - - 1,286,348 Community Facilities Districts - 7,604,629 - - 7,604,629 Housing Rehabilitation - 846,403 - - 846,403 Asset Forfeiture - 427,425 - - 427,425 CASp Certification and Training - 107,608 - - 107,608 Recreation Facilities Contributions - 2,353 - - 2,353 Costco Settlement - 3,755,224 - - 3,755,224 OPIOID Settlement - 24,291 - - 24,291 Traffic Circulation Impact Fees - 481,556 20,442,901 - 20,924,457 Capital Construction Tax - - 5,871,113 - 5,871,113 Oak Tree Mitigation Fees - - 472,230 - 472,230 North West Area Comm Park Fees - - 1,090,903 - 1,090,903 Public Facilities Impact Fees - - 2,301,770 - 2,301,770 Whitney Ranch Interchange Fee - - 2,069,852 - 2,069,852 Trails Impact Fees - - 95,257 - 95,257 Community Center Impact Fees - - 412,552 - 412,552 Park Development Capital Projects - - 609,936 - 609,936 General Fund:

Unassigned - - - 32,098,918 32,098,918 Building Repair Reserve - - 2,137,026 - 2,137,026 Operating Reserve - - 16,900,500 - 16,900,500 Park Infrastructure Reserve - - 1,517,532 - 1,517,532 S
urplus Reserve - - 5,119,218 - 5,119,218 Reserve for Encumbrances - - 2,687,792 - 2,687,792 ARPA - - 2,164,153 - 2,164,153 Economic Development - - 1,123,703 - 1,123,703 Technology Fee - - 762,930 - 762,930 Retiree's Health - - - (96,260) (96,260) QP Amphitheater Events - - 21,196 - 21,196 Leases receivable 303,005 - - - 303,005 Prepaid 58,178 58,178
Traffic Safety/PD Grants - - - (19,844) (19,844) Streets Grants - - - (34,839) (34,839) Bicycle and Pedestrian Facilities - - - (376,248) (376,248) Grants and Other Reimbursables - - - (414,407) (414,407) Community Parks Fund - - 1,852,087 - 1,852,087 Total 852,638$ 41,015,846$ 67,652,651$ 31,157,320$ 140,678,455$

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105
City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

Nonspendable fund balances included the following as of June 30, 2025:

1. Endowments include principal corpus from which income will fund maintenance of Wetlands and Preserve Area maintenance and operations.

2. Leases receivable include balances from long-term leases of City owned property to third parties, offset by amounts deferred over the term of the lease.

3. Prepaid items reflect nonspendable amounts for costs applicable to future periods.

Restricted fund balances included the following as of June 30, 2025:

1. Wetlands Maintenance includes amounts other than the non-spendable endowment to be used on the maintenance of the wetlands on a parcel in Stanford Ranch Phase III.

2. Debt Service includes amounts used for debt service in the Rocklin Public Financing Authority debt service fund.

3. Low and Moderate Income Housing F und includes amounts used to increase the City’s supply of low and moderate income housing.

4. SB325 Sales Tax includes amounts to be used for repair and maintenance of City streets in accordance with Senate Bill 325.

5. SB1 Road Maintenance & Rehab Act includes amounts to be used for City road maintenance projects in accordance with Senate Bill 1, Chapter 5, Statutes of 2017.

6. Gas T ax includes amounts received and expended for construction and street maintenance purposes as defined in Sections 2105, 2106, 2107, and 2107.5 of the California Streets and Highways Code.

7. Lighting Districts includes amounts to be used to maintain and operate the City’s lighting districts.

8. Community Facilities D istricts include amounts to be used to maintain and operate the City’s community facilities districts.

9. Housing R ehabilitation includes amounts to be used for the City’s housing rehabilitation programs.

10. Asset Forfeiture includes amounts that are restricted to police activities.

11. CASp Certification and Training includes amounts to be used for Certified Access Specialist program training in accordance with Assembly Bill 1379.

12. Recreation Facilities Contributions include amounts set aside for recreation facilities construction and improvements.

13. Costco Settlement includes funds received according to the Settlement Agreement between Costco, the Town of Loomis, and the City of Rocklin, dated October 2022.

14. OPIOID Settlement includes funds received according to the Opioid Settlement Agreement and any amendments between California Cities and Counties with Pharmaceutical companies and Distributors dated July 21, 2021. All settlement funds will be used for opioid remediation, and a minimum of 70% of the settlement funds received are required to be used for future opioid remediation.

15. Traffic Circulation Impact Fees include long-term receivables related to street improvements needed to reduce the impact caused by new development within the City.

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106
City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

Committed fund balances included the following as of June 30, 2025:

1. General Fund:
a. Building Repair Reserves include amounts set aside for routine building maintenance and to support the expansion of existing City facilities to address workforce needs of city services.
b. Operating Reserve includes amounts set aside for operating expense contingencies. c. Park Infrastructure Reserve includes amounts set aside for routine park facilities maintenance and future park infrastructure projects.
d. Surplus Reserve includes surplus amounts set aside for operating expense contingencies. e. Reserve for Encumbrances includes amounts set aside for encumbrances, or open purchase orders, rolled forward to the following year.
f. ARPA committed fund balance includes amounts set aside f rom the ARPA revenue loss replacement grant.
g. Quarry Park Adventures includes amounts set aside for Adventure Park operations. h. Economic Development includes amounts set aside to promote economic development within the City.
i. Technology Fee includes a 6% fee assessed on certain program revenues to fund the cost of technology systems.

2. Traffic Circulation Impact Fees include amounts to be used for street improvements to reduce the impacts caused by new development within the City.

3. Capital Construction Tax includes amounts set aside for city construction projects.

4. Oak Tree Mitigation includes amounts set aside for oak tree preservation.

5. North West Rocklin Community Park Fee includes Impact Fees to be used for community parks in the North West Rocklin (Whitney Ranch) area.

6. Public Facilities Impact Fees include amounts to be used to fund expansion of public facilities to serve new development within the City.

7. Whitney Ranch Interchange Fee includes Impact Fees to be used to develop Highway 65 interchanges in the Whitney Ranch area.

8. Trails Impact Fees include amounts to be used for trail improvements to reduce the impact caused by new development within the City.

9. Community Center Impact Fees include amounts to be used for community center improvements and reduce the impact caused by new development within the City.

10. Park Development Capital Projects include amounts used for community park and city- wide recreational facilities improvements to reduce the impacts of increased use by new development within the City.

11. QP Amphitheater Events includes amounts to be used for Quarry Park Amphitheater.

12. The Community Park Fees Capital Projects includes amounts to be used for community park projects from community park fees.

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June 30, 2025

The following funds had deficit fund balances as of June 30, 2025:

1. The Retiree’s Health had a deficit fund balance of $96,260 as of June 30, 2025, that is to be funded through revenues collected from other funds.

2. The Traffic Safety/PD Grants had a deficit fund balance of $ 19,844 as of June 30, 2025, that is to be funded through deferred and unearned grants.

3. The Streets Grants had a deficit fund balance of $34,839 as of June 30, 2025, that is to be funded through deferred and unearned grants.

4. The Bicycle and Pedestrian Facilities had a deficit fund balance of $376,248 as of June 30, 2025, that is to be funded through deferred and unearned grants.

5. The Grants and Other Reimbursables had a deficit fund balance of $414,407 as of June 30, 2025, that is to be funded through deferred and unearned grants.

NOTE 10 - RISK MANAGEMENT

The City’s insurance coverage and the respective coverage providers are as follows:

The City is a member of the Northern California Cities Self Insurance Fund (NCCSIF) along with twenty- one other northern California cities. The NCCSIF is a joint powers authority (JPA) organized in accordance with Title 1, Division 7, Chapter 5, Article 1 of the California Government Code. The purpose is to create a common pool of funds to be used to meet obligations of the parties to provide workers’ compensation benefits for their employees and to provide excess liability insurance. The NCCSIF provides cl aims processing administrative services, risk management services, and actuarial studies.

A member from each city governs the NCCSIF. City Council members do not have significant oversight responsibility, since they evenly share all factors of responsibility with the other cities. The City does not retain the risk of loss. However, ultimate lia bility for payment of claims and insurance premiums resides with member cities. The NCCSIF is empowered to make supplemental assessments as needed to eliminate deficit positions of member cities. If the JPA becomes insolvent, the City is responsible only t o the extent of any deficiency in its share of the equity balance.

The NCCSIF establishes claims liabilities based on estimates of the ultimate cost of claims (including future claims settlement expenses) that have been reported but not settled, plus estimates of claims that have been incurred but not reported. Because ac tual claims costs depend on various factors, the claims liabilities are recomputed periodically using a variety of actuarial and statistical techniques to produce current estimated Amount Coverage Provider Payment Source
Liability Claim:
$0 - $50,000 Self-insured Banking layer
$50,001 - $1,250,000 NCCSIF Shared risk
$1,250,001 - $40,000,000 Excess coverage CJPRMA
Workers' Compensation:
$0 - $100,000 Self-insured Banking layer
$100,001 - $500,000 NCCSIF Shared risk
$500,001 - Statutory Excess coverage PRISM

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June 30, 2025

claims that reflect recent settlements, claim frequency, and other economic and social factors. A provision of inflation is implicit in the calculation of estimated future claims costs. Adjustments to claims liabilities are charged or credited to expense in the periods in which they are made.

The City participates in excess insurance coverage provided by California joint powers authorities (JPAs), the California Joint Powers Risk Management Authority (CJPRMA) and the Public Risk Innovation, Solutions, and Management (PRISM) . These JPAs self-fund to $7,500,000 for l iability insurance and $5,000,000 for worker’s c ompensation insurance and then purchase reinsurance over that amount to their various limits. The City is self -insured for employee dental and vision claims. There have been no significant reductions in insurance coverage from coverage in the prior fiscal year. Settlements have not exceeded the insurance coverage for the past three fiscal years.

The City’s equity investment in the NCCSIF of $ 4,050,895 is recorded in the Risk Management Internal Service Fund. The audited financial statements of the JPA are available at the NCCSIF’s office. The following is a summary of the claims liabilities for the last three fiscal years:

NOTE 11 - RETIREMENT PLANS

A. General Information about the Pension Plans

Plan Description
All qualified employees are eligible to participate in the City ’s Miscellaneous agent multiple employer - defined benefit pension plan or the Safety (Fire and Police) cost-sharing multiple employer-defined benefit pension plans (Plans) administered by the California Public Employees’ Retirement System (CalPERS).

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.

Year Ended Year Ended Year Ended
June 30, 2025 June 30, 2024 June 30, 2023
Claims payable, beginning of year 2,811,286$ 2,472,627$ 2,832,930$ Fiscal year claims and changes in estimates 1,458,841 689,479 264,968 Claims payments (1,334,017) (350,820) (625,271) Claims payable, end of year 2,936,110$ 2,811,286$ 2,472,627$

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June 30, 2025

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members. Benefits are based on age at retirement, highest salary for either a one or three year period and years of credited service. The cost-of -living adjustments for the Plans are applied as specified by the California Public Employees’ Retirement Law. The Plans’ provisions and benefits in effect at June 30, 2025, are summarized as follows:

Employees Covered
At June 30, 2025, the following employees were covered by the benefit terms for the Plans:

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 the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rates are the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2025, the City’s contributions were as follows:

Classic PEPRA Fire PEPRA Fire Police PEPRA Police
Hire date Before 1/1/2013 1/1/2013 Before 1/1/2013 1/1/2013 Before 1/1/2013 1/1/2013 Benefit formula 2% @ 55 2% @ 62 3% @ 50 2.7% @ 57 3% @ 50 2.7% @ 57 Benefit vesting schedule 5 Years 5 Years 5 Years 5 Years 5 Years 5 Years Benefit payments Monthly for
Life
Monthly for
Life
Monthly for
Life
Monthly for
Life
Monthly for
Life
Monthly for
Life
Retirement age 55 62 50 57 50 57
Monthly benefits as a %
of eligible compensation 2% 2% 3% 2.7% 3% 2.7%
Required employee cont. rates 7.55% 8.25% 8.99% 13.75% 8.99% 13.75% Required employer cont. rates 10.89% 8.25% 27.32% 13.76% 27.32% 13.76% Miscellaneous Safety
Miscellaneous Safety
Active 141 98
Transferred 113 54
Separated 183 21
Retired 196 110
Total 633 283
Miscellaneous Safety
Employer contributions $ 3,916,842 $ 5,557,250

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June 30, 2025

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions

Pension Liability
As of June 30, 2025, the City reported net pension liabilities for each plan as follows:

The following summarizes the changes in the total pension liability, fiduciary net position and net pension liability of the City’s Miscellaneous agent multiple employer plan:

The City’s net pension liability for the Fire and Police Safety plans are measured as the proportionate share of the net pension liability while the Miscellaneous plan’s net pension liability is a direct calculation based on its actuarial study and is not proportionate. The net pension liability of all the Plans are measured as of June 30, 2024, and the total pension liability for the Plans used to calculate the net pension liability was determined by an actuari al valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. The City’s proportion of the net pension liability for the Fire and Police Plans was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City ’s proportionate share of the net pension liability for the Fire and Police Plans as of the fiscal years ended June 30, 2024 and 2025 was as follows:

Net Pension
Liability
Miscellaneous $ 26,020,352
Safety - Proportionate 38,076,964
Total Net Pension Liability $ 64,097,316

Total Pension
Liability
Plan
Fiduciary Net
Posi t
ion
Net Pension
Liability
(Asse
t)
Beginning Balance 114,014,505$ 85,895,925$ 28,118, 580$ Service cost 2,184,550 - 2,184,550 Interest in Total Pension Liability 7,781,263 - 7,781,263 Difference between actual and expected experience 439,784 - 439,784 Employer contributions - 3,193,802 (3,193,802) Employee contributions - 1,163,685 (1,163,685) Net investment income - 8,216,232 (8,216,232) Benefit payments (5,549,267) (5,549,267) -
Administrative expenses - (69,894) 69,894 Net changes 4,856,330 6,954,558 (2,098,228) Ending Balance 118,870,835$ 92,850,483$ 26,020,352$
Safety
June 30, 2024 0.3107%
June 30, 2025 0.3140%
Change in Proportions 0.0032%

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June 30, 2025

For the year ended June 30, 2025, the City recognized a pension expense of $12,845,209. The following summarizes the pension expense components by plan:

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

The City reported $9,474,092 as deferred outflows of resources related to contributions subsequent to the measurement date that 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:

Miscellaneous Safety Total
Pension expense per plans 4,108,184$ 5,208,452$ 9,316,636$ GASB 68 adjustments 1,458,806 2,069,767 3,528,573 Pension expense per government-wide statements 5,566,990$ 7,278,219$ 12,845,209$ Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
3,916,842 $ -$ 5,557,250$ -$
Change
s in assumptions - - 938,138 - 316,789 - 3,107,419 101,036
- - 1,197,820 -

-
- 303,385 550,066
1,315,840 - 1,840,467 -
5,549,471 $ -$ 12,944,479$ 651,102$
Net differences between projected and actual
on plan investments
Total
Changes in proportions
Differences between the employer's contributions
Safety
the employer's proportionate share of
Miscellaneous
Pension contributions subsequent to measurement
Differences between expected and actual
Fiscal Year Ending: Miscellaneous Safety
2026 210,843$ 2,794,148$
2027 2,245,538 4,508,840
2028 (354,852) 62,864
2029 (468,900) (629,725)
2030 - -
Thereafter - -
Total 1,632,629$ 6,736,127$
Deferred Outflows/(Inflows) of Resources

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June 30, 2025

Actuarial Assumptions
The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:

Discount Rate
The discount rate used to measure the total pension liability was 6.9 percent for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans ran out of assets. Therefore, the current

6.9 percent discount rate is adequate, and the use of the municipal bond r ate calculation is not necessary.

The long term expected discount rate of 6.9 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website. The long-term expected rate of return on pension plan investment s 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.

CalPERS will continue to check the materiality of the difference in calculation until such time as they change their methodology. The long- term expected rate of return on pension 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 develo ped for each major asset class. In determining the long-term expected rate of return, CalPERS too k into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short- term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short -term and l ong-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculat ing the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short -term and long- term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. 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 ra te and asset allocation. These rates of return are net of Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal
Asset Valuation Method Market Value of Assets
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Projected Salary Increase (1)
Investment Rate of Return 6.9% (2)
Retirement Age (3)
Mortality (3)
(3) Derived using CalPERS' membership data for all funds (1) Varies by age and service
(2) Net of pension plan investment expenses, including inflation

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June 30, 2025

administrative expenses.

C. Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the City’s net pension liability for the Plans, calculated using the discount rate for the Plans, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

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

NOTE 12 - OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB)

Plan Description
The City provides certain health care benefits for eligible retired employees through the California Public Employees’ Retirement System (CalPERS) under the Public Employees’ Medical and Hospital Care Act (PEMHCA). This is a single-employer defined-benefit postemployment healthcare benefits plan . Eligible retirees may enroll in any of the available CalPERS medical plans. CalPERS issues a separate annual comprehensive financial report that includes financial statements and required supplementary information.

Assumed Long-Term
Asset Expected Real
Asset Class (a) Allocation Return (1)(2)
Global Equity Cap Weighted 30.00% 4.54%
Global Equity NonCap Weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
(1) An expected inflation of 2.3% used for this period. (2) Figures are based on the 2021-22 Asset Liability Study.

Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability 43,304,228$ 59,618,742$
Current Discount Rate 6.90% 6.90%
Net Pension Liability 26,020,352$ 38,076,964$
1% Increase 7.90% 7.90%
Net Pension Liability 15,569,966$ 21,715,383$

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June 30, 2025

Copies of the report may be obtained from the CalPERS website at www.calpers.ca.gov.

Commencing with fiscal year 2014, the City participates in the California Employers’ Retiree Benefit Trust (CERBT) Fund, which is administered by CalPERS. CERBT is a tax -qualified irrevocable trust organized under Internal Revenue Code Section 115 and established to pref und retiree healthcare benefits. CERBT, an agent multiple -employer trust, issues a publicly available financial report including GASB Statement No. 74, Financial Reporting for Postemployment Benefits Plans Other Than Pension Plans, disclosure information in aggregate with the other CERBT participating employers. That report can be obtained from the CalPERS Web site at www.calpers.ca.gov.

Benefits Provided
The City provides post-retirement benefits to eligible employees as follows:

Employees Covered by Benefit Terms

At June 30, 2025, the benefit terms covered the following employees:

Contributions
The City makes contributions, based on an actuarially determined rate, which are approved by the authority of City Council. Total contributions during the year were $ 2,451,068. Total contributions included in the measurement period were $ 2,474,828. The actuarially determined contribution for the fiscal year was $2,091,466. The City’s contributions were 9.35% of covered employee payroll during the fiscal year ended June 30, 2025. Employees are not required to contribute to the plan.

Benefits Provided:

Eligibility:

Surviving Spouse:

Other:

City monthly cap:
2022 Misc $1,200
2022 Safety $1,200
Unrepresented/Hourly receive PEMHCA minimum ($133/month 2018), 1 Fire retiree receives higher existing benefit of $1,766/month, and 2 Police retiree receive the higher existing benefit of $1,377/month
Full-time employees retiring directly from City under CalPERS (age 50 and 5 years, or disability)
Miscellaneous PEPRA retirees age 52 and 5 years
Surviving spouse coverage based on retirement plan election Same benefit continues to surviving spouse
No City paid dental, vision, life, Medicare Part B
Previous medical benefits can be found in the back of the report Active employees 257
Inactive employees 199
Total employees 456

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June 30, 2025

Actuarial Assumptions
The following summarizes the actuarial assumptions for the OPEB plan included in this fiscal year:

Discount Rate
The projection of cash flows used to determine the discount rate assumed that the City ’s contribution will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to cover all future OPEB payments. Therefore, the discount rate was set to be equal to the long-term expected rate of return which was applied to all periods of projected benefit payments to determine the total OPEB liability.

Valuation Date: June 30, 2024
Measurement Date: June 30, 2024
Actuarial Cost Method:

Amortization Period: 10 years
Asset Valuation Method:

Actuarial Assumptions:

Discount Rate 6.50%
Inflation 2.50%
Payroll Increases 2.75%
Medical Trend
Investment Rate of Return
Mortality CalPERS 2021 Experience Study
Retirement
Service Requirement
Investment gains and losses spread over 5-year rolling period Actives and Retirees currently covered: 100%
Actives currently waived: 80%
Retirees currently Waived: 10% elect at 65
Unrepresented & Hourly: 60%
Misc. Benefit 2%@55
Expected Retirement Age (ERA) 61.2
Safety Benefit 3%@50
ERA 54.7 (Fire) 54.2 (Police)
PEPRA Mi
sc. Benefit 2%@62
ERA 63.1
PEPRA Safety Benefit 2.7%@57
ERA 56.7 (Fire) 55.5 (Police)

6.50%, Net of OPEB plan investment expenses, including inflation Entry-Age Normal, Level % of pay
Non-Medicare - 8.6% for 2025, decreasing to an ultimate rate of 3.9% in 2076 Medicare - 6.3% for 2025, decreasing to an ultimate rate of 3.9% in 2076

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June 30, 2025

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

Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 202 4 (measurement date), and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2024 (valuation date) for the fiscal year ended June 30, 2025 (reporting date). The following summarizes the changes in the net OPEB liability for the year ended June 30, 2025:

As of June 30, 2025, the City had total assets of $ (96,260) in a City Retirees Health Fund. Cash in the Retirees Health Fund is transferred to CERBT periodically.

Asset Class
Percentage
of Portfolio
Long-Term Expected
Rate of Return
Global Equity 49.00% 4.60%
Fixed Income 23.00% 2.70%
TIPS 5.00% 1.60%
Commodities 3.00% 2.30%
REITs 20.00% 4.00%
Total 100.00%
Weighted Average Return 3.82%
Assumed Long-Term Rate of Inflation 2.50%

6.50%Expected Long-Term Net Rate of Return, Rounded
Fiscal Year Ended June 30, 2025
(Measurement Date June 30, 2024)
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability (Asset)
Balance at June 30, 2024 41,539,485$ 37,413,152$ 4,126,333$ Service cost 1,391,920 - 1,391,920
Interest in Total OPEB Liability (TOL) 2,605,874 - 2,605,874 Employer contributions - 2,474,828 (2,474,828) Balance of diff between actual and exp experience 6,354,373 - 6,354,373 Balance of changes in assumptions (2,365,558) - (2,365,558) Actual investment income - 4,111,479 (4,111,479) Administrative expenses - (12,198) 12,198 Benefit payments (2,474,828) (2,474,828) -
Adjustments - 5,955 (5,955)
Net changes 5,511,781 4,105,236 1,406,545
Balance at June 30, 2025 47,051,266$ 41,518,388$ 5,532,878$

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June 30, 2025

Deferred Inflows and Outflows of Resources
At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Of the total amount reported as deferred outflows of resources related to OPEB, $2,451,068 resulting from City contributions subsequent to the measurement date and before the end of the fiscal year will be included as a reduction of the net OPEB liability in the year ended June 30, 2026.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

OPEB Expense

The following summarizes the OPEB expense by source during the year ended June 30, 2025:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between actual and expected experience 3,574,931$ -$ Difference between actual and expected earnings 505,798 - Change in assumptions - 1,393,525
OPEB contribution subsequent to measurement date 2,451,068 - Totals 6,531,797$ 1,393,525$
Year Ended June 30,
2026 307,180$
2027 1,620,860
2028 (127,321)
2029 (75,915)
2030 605,283
Thereafter 357,120
Total 2,687,207$
Service cost 1,391,920$
Interest in TOL 2,605,874
Expected investment income (2,337,945)
Actuarial adjustments (5,955)
Difference between actual and expected experience 403,163 Difference between actual and expected earnings 211,090 Change in assumptions (36,
400)
Administrative expenses 12,198
OPEB Expense 2,243,945$

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June 30, 2025

The following summarizes changes in the net OPEB liability as reconciled to OPEB expense during the year ended June 30, 2025:

Sensitivity to Changes in the Discount Rate

The net OPEB liability of the City , as well as what the City 's net OPEB liability would have been if calculated using a discount rate with one percentage point lower and one percentage point higher, is as follows:

Sensitivity to Changes in the Healthcare Cost Trend Rates

The net OPEB liability of the City, as well as what the City's net OPEB liability would have been if it were calculated using healthcare cost trend rates one percentage point lower and one percentage point higher than current healthcare cost trend rates, is as follows:

5,532,878$
(4,126,333)
1,
406,545
Changes in deferred outflows (630,911)
Changes in deferred inflows (982,757)
Employer contributions and implicit subsidy 2,451,068
OPEB Expense 2,243,945$
Net OPEB liability ending
Net OPEB liability beginning
Change in net OPEB liability
(1% Decrease ) 6.50% (1% Increase )
Net OPEB Liability (Asset) 10,578,921$ 5,532,878$ 1,243,712$ Discount Rate
(1% Decrease ) Current (1% Increase )
Net OPEB Liability (Asset) 3,384,057$ 5,532,878$ 7,524,668$ Trend Rate

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June 30, 2025

NOTE 13 - COMMITMENTS AND CONTINGENCIES

A. Commitments

The City had the following significant unexpended contractual commitments as of June 30, 2025:

B. Lawsuits

The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City busines s. Based upon consultation with the City Attorney, these cases, in aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize.

C. Federal, State and County Grant Programs (Contingencies)

The City participates in a number of Federal, State and County programs that are fully or partially funded by grants received from other governmental units. Expenditures financed by grants are subject to audit by the appropriate grantor government. If expenditures are disallowed due to noncompliance with grantor program regulations, the City may be required to reimburse the grantor government. As of June 30, 2025, some amounts of grant expenditures have not been audited, but the City believes that disallowed expenditures, if any, based on subsequent audits will not have a material effect on any individual governmental funds or the overall financial condition of the City.

Original Commitment
Project Name Commitment Remaining
Lenslock Service and Cameras 615,781$ 123,156$
SWRA Building Demolition 657,000 241,463
JSP-SWRA Bridge 489,493 218,951
China Garden Drainage Improvements 400,000 392,800 Striping and Marking Maintenance 915,051 897,692
Oak & Pine Block Improvements 148,946 59,194
Whitney Ranch Parkway Widening 1,000,000 810,921
Sierra College Blvd I-80 Resurfacing 161,000 63,425 Sunset Blvd Widening 200,000 37,336
Aguilar Road Improvements 722,747 363,513
Rocklin Rd Widening 110,220 52,398
At Grade Railroad Improvements 696,748 482,787
I-80 Westbound Auxiliary Lane 2,675,000 2,083,410
Rocklin Road Sierra College Corridor 7,175,000 2,261,333 Sierra College Boulevard Widening 617,300 543,041 Monument Springs Bridge 1,816,094 1,195,720
Roadway Improvement 300,000 138,450
Fire Station 22 1,220,353 626,541
19,920,733$ 10,592,131$

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June 30, 2025

NOTE 14 - SPECIAL TAX ASSESSMENT DISTRICTS

The Mello-Roos Community Facilities Act of 1982 (Mello-Roos Act) allows establishment of Community Facilities Districts (CFD). Under the Mello-Roos Act, special taxes are levied by CFDs to provide services such as police and fire protection, and to finance infrastructure improvements. The City of Rocklin has established CFDs that have issued bonds and levied taxes under the Mello-Roos Act. The City is not liable for repayment of these bonds and acts only as an agent for the property owners/bond holders in c ollecting and forwarding the special taxes. The assets held by the City on behalf of these districts and related liabilities are recorded in Custodial funds. Special taxes have also been levied under the Mello-Roos Act to pay for services provided by CFD’s No. 1, No. 5, and No. 6. The activities of these CFDs are accounted for in Special Revenue funds, which are presented in the City’s Basic Financial Statements.

The Landscaping and Lighting Act of 1972 (Lighting Act) allows local government agencies to form Landscape and Lighting Districts for the purpose of financing the costs and expenses of landscaping and lighting public areas. The City has formed two districts which levy special assessments under the Lighting Act: Lighting Maintenance District No.1 and Landscaping and Lighting Maintenance District No. 2. The activities of these districts are accounted for in Special Revenue funds and are included in the City’s Basic Financial Statements. The disclosures in Note 1 3 include those required by California Government Code section 50075.1.

The following table presents the balances of the various district bonds as of June 30, 2025:

Community Facilities District No. 1 Special Tax
Community Facilities District No. 1 was formed in 1986 to provide fire protection and suppression services and ambulance and paramedic services to various developments within the City of Rocklin. These services are provided by the City of Rocklin Fire Depa rtment. The cost for these services is born e by the City and partially offset by the special tax levied on parcels within the district. As such, district expenditures are primarily a reimbursement to the City. For fiscal year 2025, revenues were $2,459,710 and reimbursement expenditures were $2,459,709. If expenditures exceed revenues in a fiscal year, the excess expenditures are paid with cash on hand. There were no active projects during the fiscal year.

Balance
Community Facilities District Bonds June 30, 2025
CFD No. 6 - Sunset West Drainage 78,117$
CFD No. 8 - Sunset West Park Drive 202,165
CFD No. 9 - Sunset West/Blue Oaks 240,720
CFD No. 10 - 2015 Whitney Ranch 18,010,000
CFD No. 10 - 2019 Whitney Ranch 15,520,000
CFD No. 10 - 2022 Whitney Ranch 13,605,000
CFD No. 11 - Sierra College Interchange 3,315,000
Total CFD Bonds 50,971,002$

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City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

Community Facilities District No. 3 Bonds
Community Facilities District No. 3 was formed in 1990 to issue bonds for street related improvements and projects, such as the construction of roadways, storm drainage facilities, sanitary sewer facilities, water lines, and gas lines. The district’s impro vements and projects have been completed. For fiscal year 2025, there was no revenue and expenditure . The primary source of revenues is special taxes, and expenditures are for activities related to debt service. If expenditures exceed revenues in a fiscal year, the excess expenditures are paid with cash on hand.

Community Facilities District No. 5 Special Tax
Community Facilities District No. 5 was formed in 1996 to fund the operation and maintenance of street and parkway lights, streetscapes, open space, and parks in various developments within the City of Rocklin.

For fiscal year 2025, revenues were $7,732,606 and expenditures were $6,407,370. The primary source of revenues is special taxes and expenditures are for operating costs such as payroll, maintenance, professional services, and utilities. If expenditures exceed revenues in a fiscal year, the excess expenditures are paid with cash on hand. There were no active projects during the fiscal year.

Community Facilities District No. 6 Bonds
Community Facilities District No. 6 was formed in 1998 to issue bonds for installation, construction, and acquisition of drainage facilities and open space. The district’s improvements and projects have been completed. For fiscal year 2025, revenues were $ 70,934 and expenditures were $ 92,838. The primary source of revenues is special taxes and expenditures are for activities related to debt service. If expenditures exceed revenues in a fiscal year, the excess expenditures are paid with cash on hand.

Community Facilities District No. 6 Special Tax
A special tax has been levied to fund the operation and maintenance of the open space and storm drainage facilities of Community Facilities District No. 6. For fiscal year 2025, revenues were $ 385,536 and expenditures were $ 357,230. The primary source of revenue is special taxes and expenditures are for operating costs such as payroll, maintenance and professional services. If expenditures exceed revenues in a fiscal year, the excess expenditures are paid with cash on hand. There were no active projects during the fiscal year.

Community Facilities District No. 7 Bonds
Community Facilities District No. 7 was formed in 1997 to issue bonds for the construction and acquisition of a highway interchange and connectors to provide access between Blue Oaks Blvd. and Highway 65. The district’s improvements and projects have been completed. For fiscal year 2025, revenues were $1,182 and expenditures were $ 46,883. The primary source of revenues is special taxes and expenditures are for activities related to debt service. If expenditures exceed revenues in a fiscal year, the excess expenditures are paid with cash on hand.

Community Facilities District No. 8 Bonds
Community Facilities District No. 8 was formed in 1998 to issue bonds for the construction, acquisition, and widening of portions of Park Dr. and Blue Oaks Blvd. and the installation of backbone utility infrastructure within the same area. The district’s improvements and projects have been completed. For fiscal year 2025, revenues were $208,610 and expenditures were $219,264. The primary source of revenues is special taxes and expenditures are for activities related to debt service. If expenditures exceed revenues in a fiscal year, the excess expenditures are paid with cash on hand.

Community Facilities District No. 9 Bonds
Community Facilities District No. 9 was formed in 1998 to issue bonds for the construction, acquisition, and widening of portions of Lone Tree, Blue Oaks, and West Oaks Boulevards and installation of traffic

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City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

control lights. The district’s improvements and projects have been completed. For fiscal year 2025, revenues were $245,006 and expenditures were $258,894. The primary source of revenues is special taxes and expenditures are for activities related to debt service. If expenditures exceed revenues in a fiscal year, the excess expenditures are paid with cash on hand.

Community Facilities District No. 10 Bonds
Community Facilities District No. 10 was formed in 2005 to issue bonds for the construction of transportation, wastewater system, drainage, landscaping facilities and other public improvements for development within the Whitney Ranch District. During fiscal year 2016, $27.09 million in special tax bonds were issued to refund the original bonds and provide $5.85 million for additional improvements.

During fiscal year 2019, $17.828 million in special tax bonds were issued to finance the acquisition of public facilities. During fiscal year 2022 , $13.605 million in special tax bonds were issued to finance the acquisition of public facilities . For fiscal year 2025 , revenues were $ 3,566,666, and expenditures were $3,232,399. The primary source of revenues is special taxes and expenditures are for activities related to debt service. If expenditures exceed revenues in a fiscal year, the excess expenditures are paid with cash on hand.

Community Facilities District No. 11 Bonds
Community Facilities District No. 11 was formed in 2006 to issue bonds for the construction of a new interchange on Interstate 80 at Sierra College Blvd. This project has been completed. For fiscal year 2025, revenues were $598,336, and expenditures were $572,748. The primary source of revenues is special taxes and expenditures are for activities related to debt service. If expenditures exceed revenues in a fiscal year, the excess expenditures are paid with cash on hand.

Lighting Maintenance District No. 1
Lighting Maintenance District No. 1 was formed in 1979 to provide maintenance of streetlights and safety lighting throughout various portions of the City of Rocklin. During the fiscal year, 1,632 streetlights, 20 traffic signals, 3 flashing lights, and safety lighting was maintained. For fiscal year 2025, revenues were $251,513, and expenditures were $ 249,224. The primary source of revenues is special assessments, and expenditures are primarily for payroll, maintenance, professional services, and utilities. There were no active projects during the fiscal year.

Landscaping and Lighting Maintenance District No. 2
Landscaping and Lighting Maintenance District No. 2 was formed in 1996 to provide maintenance of streetlights, safety lighting, and roadway landscaping throughout various portions of the City of Rocklin.

During the fiscal year, 2, 924 streetlights, 52 traffic signals, and 154 irrigation controllers for roadway landscaping and safety lighting was maintained. For fiscal year 2025, revenues were $ 2,785,824, and expenditures were $ 3,009,867. The primary source of revenues is special assessments, and expenditures are primarily for payroll, maintenance, professional services, and utilities.

Park Development and Maintenance Tax
The Park Development and Maintenance Tax was enacted in 1998 , reenacted in 2009, and reenacted in 2019, to provide development, installation, servicing, maintenance, repair and operation of parks in the City of Rocklin. From fiscal year 2010 through 2025, there have been no projects funded by the tax. The tax revenue has been primarily used for payroll, professional services and utilities in connection with park maintenance and operation.

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City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

The table below presents historical park tax revenues and related expenditures for the last five fiscal years.

Expenditures in excess of park tax revenues are paid from general fund.

NOTE 1 5 - SUCCESSOR AGENCY TRUST (FORMER ROCKLIN REDEVELOPMENT

AGENCY)

Pursuant to Assembly Bills 1X26 and 1484 (“the Bills”), all redevelopment agencies in the State of California were dissolved on February 1, 2012. The Bills authorized certain local agencies, such as a city or county, to become the Successor Agency. On Janu ary 1, 2012, the City Council elected to become the Successor Agency for the former Rocklin Redevelopment Agency. The Successor Agency is responsible for winding down the affairs of the former redevelopment agency, which include s making payments due for enforceable obligations and disposition of the assets of the former redevelopment agency. Examples of enforceable obligations include payments to contractors, bond debt service payments, and loan payments.

The Successor Agency has an oversight board that supervises its work. The Oversight Board is comprised of representatives of the local agencies that serve the redevelopment project areas within the County.

Successor agencies are only allocat ed revenue in the amount necessary to pay the enforceable obligations of the former redevelopment agency. The agency will only receive this revenue until all enforceable obligations have been paid in full and all assets have been liquidated. The assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private purpose trust fund) in the financial statements of the City.

On December 10, 2013, by resolution, the City Council elected to assume responsibility for performing the housing functions of the former Rocklin Redevelopment Agency. All housing assets were transferred from the Successor Agency Housing Fund to the City of Rocklin. The housing assets previously accounted for as a private purpose trust fund are now accounted for as a special revenue fund in the City's financial statements.

Revenue
Year Ended Park Tax Over (Under)
June 30, Revenue Expenditures Expenditures
2020 612,175$ 2,413,143$ (1,800,968)$
2021 627,285 2,466,342 (1,839,057)
2022 637,420 2,518,471 (1,881,051)
2023 653,165 2,740,169 (2,087,004)
2024 659,060 2,814,453 (2,155,393)
2025 662,350 2,889,920 (2,227,570)
Total 3,851,455$ 15,842,498$ (11,991,043)$

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City of Rocklin
Notes to the Basic Financial Statements
June 30, 2025

Successor Agency Noncurrent Liabilities

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

2018 Tax Allocation Refunding Bonds
During fiscal year 2019 , the Successor Agency issued the Series 2018 Tax Allocation Bonds totaling $19,175,000, at a premium of $2,107,808, to defease and redeem all amounts under the 2002 Tax Allocation Bonds, 2005 Tax Allocation Bonds, and 2007 Tax Allocation Bonds. The bonds are secured by a pledge of, and lien on, and repaid from property tax revenues deposited with respect to the Project Area from time to time in the Redevelopment Property Tax Trust Fund established and held by the Placer County Auditor- Controller. If an event of default has occurred under the Indenture and is continuing, the Trustee may, or, if requested in writing by the owners of a majority in aggregate principal amount of the Bonds then outstanding, the Trustee shall, (a) declare the principal of the Bonds, together with the accrued interest thereon, to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable, anything in the Indenture or in the Bonds to the contrary notwithstanding, and (b) the Trustee shall, subject to the provisions of the Indenture, exercise any other remedies available to the Trustee and the Bond Owners in law or at equity. The term of the bonds is 19 years. Interest rates on the bonds range from 3 % to 5%. Principal payments ranging from $630,000 to $1,470,000 are payable annually on September 1
st, and interest payments ranging from $ 11,813 to $440,363, are payable semi- annually on March 1st and September 1st, through September 1, 2037. The aggregate debt service savings was $4,742,243, and the loss on defeasance was $289,857.

The following summarizes the Successor Agency’s future debt service obligations:

Due
Beginning Ending Within One
Description Balance Additions Deletions Balance Year
General Long-Term Debt:
2018 Refunding Tax Allocation Bonds 15,310,000$ -$ 835,000$ 14,475,000$ 870,000 $ Amortized Premium:
2018 Refunding Tax Allocation Bonds 1,475,466 - 105,390 1,370,076 105,390 Total Noncurrent Liabilities 16,785,466$ -$ 940,390$ 15,845,076$ 975,390 $ Year Ending
June 30, Principal Interest Total
2026 870,000$ 656,225$ 1,526,225$
2027 915,000 611,600 1,526,600
2028 955,000 564,850 1,519,850
2029 1,010,000 515,725 1,525,725
2030 1,060,000 463,975 1,523,975
2031-2035 6,145,000 1,449,251 7,594,251 2036-2040 3,520,000 167,487 3,687,487 Total 14,475,000$ 4,429,113$ 18,904,113$

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REQUIRED SUPPLEMENTARY INFORMATION

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City of Rocklin
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual (GAAP Basis)
General Fund
For the Year Ended June 30, 2025
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes and assessments 49,935,000 $ 49,935,000 $ 53,054,663 $ 3,119,663 $ Licenses and permits 4,268,200 4,268,200 4,336,242 68,042 Fines and forfeitures 507,100 503,600 571,211 67,611 Intergovernmental 558,600 754,600 950,779 196,179 Charges for services 2,348,400 2,360,150 2,917,626 557,476 Use of money and property 2,643,800 2,731,700 5,704,919 2,973,219 Contributions and donations 1,931,000 1,931,000 1,977,851 46,851 Other revenues 534,000 542,439 685,821 143,382 Total Revenues 62,726,100 63,026,689 70,199,112 7,172,423

EXPENDITURES
Current:

General government 15,134,530 19,428,933 17,855,069 1,573,864 Public safety 36,777,300 37,871,873 36,748,614 1,123,259 Public works 3,965,500 5,313,090 3,930,224 1,382,866 Parks and recreation 5,514,800 5,863,327 5,110,953 752,374 Community development 6,349,100 6,953,641 5,419,117 1,534,524 Capital outlay 1,048,100 10,005,312 2,958,646 7,046,666 Debt service:

Principal retirement - - 2,732 (2,732) Interest and fiscal charges - - 10,203 (10,203) Total Ex
penditures 68,789,330 85,436,176 72,035,558 13,400,618 Excess (Deficiency) of Revenues
over Expenditures (6,063,230) (22,409,487) (1,836,446) 20,573,041

OTHER FINANCING SOURCES (USES)
Transfers in 6,891,400 9,190,999 6,503,717 (2,687,282) Transfers out (671,100) (4,109,600) (1,340,003) 2,769,597 Total Other Financin
g Sources (Uses) 6,220,300 5,081,399 5,163,714 82,315 Net Change in Fund Balances 157,070 (17,328,088) 3,327,268 20,655,356 Fund Balances Beginning 61,470,623 61,470,623 61,470,623 - Fund Balances Ending 61,627,693$ 44,142,535$ 64,797,891$ 20,655,356$ The City's legal budget authority is by the fund level.

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City of Rocklin
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual (GAAP Basis)
SB325 Sales Tax
For the Year Ended June 30, 2025
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes and assessments 5,059,600$ 5,059,600$ 5,041,587$ (18,013)$ Intergovernmental 644,800 644,800 700,705 55,905 Use of money and property 54,200 54,200 170,242 116,042 Total Revenues 5,758,600 5,758,600 5,912,534 153,934

EXPENDITURES
Current:

General government 105,200 105,200 37,367 67,833 Public works 2,498,200 2,498,200 2,280,183 218,017 Community development 993,400 1,239,982 444,990 794,992 Capital outlay 3,427,500 6,503,095 2,213,638 4,289,457 Total Expenditures 7,024,300 10,346,477 4,976,178 5,370,299 Excess (Deficiency) of Revenues
over Expenditures (1,265,700) (4,587,877) 936,356 5,524,233

OTHER FINANCING SOURCES (USES)
Transfers in - - 87,177 87,177 Transfers out (778,100) (778,100) (885,615) (107,515) Total Other Financing Sources (Uses) (778,100) (778,100) (798,438) (20,338) Net Change in Fund Balances (2,043,800) (5,365,977) 137,918 5,503,895 Fund Balances Beginning 5,424,024 5,424,024 5,424,024 - Fund Balances Ending 3,380,224$ 58,047$ 5,561,942$ 5,503,895$ The City's legal budget authority is by the fund level.

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City of Rocklin
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual (GAAP Basis)
Low and Moderate Income Housing Asset Fund
For the Year Ended June 30, 2025
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 270,300$ 270,300$ 463,786$ 193,486$ Total Revenues 270,300 270,300 465,786 195,486

EXPENDITURES
Current:

General government 4,930,000 4,935,571 13,808 4,921,763 Public safety 2,500 2,500 355 2,145
Community development 65,000 109,122 102,585 6,537 Total Expenditures 4,997,500 5,047,193 116,748 4,930,445 Excess (Deficiency) of Revenues
over Expenditures (4,727,200) (4,776,893) 349,038 5,125,931

OTHER FINANCING SOURCES (USES)
Transfers in - - - - Transfers out (150,000) (150,000) (150,181) (181) Total Other Financing Sources (Uses) (150,000) (150,000) (150,181) (181) Net Change in Fund Balances (4,877,200) (4,926,893) 198,857 5,125,750 Fund Balances Beginning 13,287,107 13,287,107 13,287,107 - Fund Balances Ending 8,409,907$ 8,360,214 $ 13,485,964$ 5,125,750 $ The City's legal budget authority is by the fund level.

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City of Rocklin
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual (GAAP Basis)
Streets Grants
For the Year Ended June 30, 2025
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 3,550,000$ 5,236,817$ 5,236,818$ 1$ Total Revenues 3,550,000 5,236,817 5,236,818 1

EXPENDITURES
Capital outlay 3,550,000 3,947,291 3,947,290 1 Total Expenditures 3,550,000 3,947,291 3,947,290 1 Excess (Deficiency) of Revenues
over Expenditures - 1,289,526 1,289,528 2

OTHER FINANCING SOURCES (USES)
Transfers in - 55,316 55,316 - Transfers out - (87,177) (87,177) - Total Other Financing Sources (Uses) - (31,861) (31,861) - Net Change in Fund Balances - 1,257,665 1,257,667 2 Fund Balances Beginning (1,292,506) (1,292,506) (1,292,506) - Fund Balances Ending (1,292,506)$ (34,841)$ (34,839)$ 2$ The City's legal budget authority is by the fund level.

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Schedule of Pension Contributions (GASB 68)
Miscellaneous Plan 2016 2017 2018 2019 2020
Contractually Required
Contributions (Actuarially Determined) 1,796,306$ 2,019,082$ 2,128,089$ 2,245,112$ 2,525,776$ Contributions in Relation to
Actuarially Determined Contributions 1,796,306 3,691,282 2,523,306 2,863,892 2,915,971 Contribution Deficiency (Excess) - (1,672,200) (395,217) (618,780) (390,195) Covered Employee Payroll 10,608,255$ 10,273,081$ 11,211,773$ 11,276,404$ 11,546,463$ Contributions as a
Percentage of Covered Payroll 16.93% 35.93% 22.51% 25.40% 25.25% Miscellaneous Plan 2021 2022 2023 2024 2025
Contractually Required
Contributions (Actuarially Determined) 2,743,889$ 3,090,721$ 3,196,535$ 3,184,093$ 3,916,842$ Contributions in Relation to
Actuarially Determined Contributions 6,432,032 3,090,721 4,768,135 3,184,093 3,916,842 Contribution Deficiency (Excess) (3,688,143) - (1,571,600) - - Covered Employee Payroll 11,597,699$ 11,404,973$ 11,558,710$ 11,882,354$ 12,363,044$ Contributions as a
Percentage of Covered Payroll 55.46% 27.10% 41.25% 26.80% 31.68% Safety Plan 2016 2017 2018 2019 2020
Contractually Required
Contributions (Actuarially Determined) 2,561,660$ 2,623,619$ 2,825,491$ 3,012,461$ 3,501,382$ Contributions in Relation to
Actuarially Determined Contributions 2,561,660 2,623,619 2,837,597 3,089,436 3,501,382 Contribution Deficiency (Excess) - - (12,106) (76,975) - Covered Employee Payroll 9,191,925$ 9,200,222$ 10,029,811$ 10,838,835$ 11,354,811$ Contributions as a
Percentage of Covered Payroll 27.87% 28.52% 28.29% 28.50% 30.84% Safety Plan 2021 2022 2023 2024 2025
Contractually Required
Contributions (Actuarially Determined) 3,990,103$ 4,280,173$ 4,786,119$ 4,925,622$ 5,557,250$ Contributions in Relation to
Actuarially Determined Contributions 4,143,874 4,280,173 4,786,119 4,925,622 5,557,250 Contribution Deficiency (Excess) (153,771) - - - - Covered Employee Payroll 11,888,369$ 11,720,404$ 13,126,407$ 12,803,337$ 13,097,814$ Contributions as a
Percentage of Covered Payroll 34.86% 36.52% 36.46% 38.47% 42.43% Notes to Schedule:

Valuation Date: June 30, 2023
Assumptions Used: Entry Age Method used for Actuarial Cost Method Level Percentage of Payroll and Direct Rate Smoothing

3.8 Years Remaining Amortization Period
Inflation Assumed at 2.3%
Investment Rate of Returns set at 6.9%
The CalPERS discount rate was increased from 7.5% to 7.65% in FY 2016, decreased from 7.15% in FY2018 and 6.9% in FY2023.

The CalPERS mortality assumptions were adjusted in fiscal year 2023.

City of Rocklin
June 30, 2025
The mortality table was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing morality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website.

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Schedule of Changes in Net Pension Liabilities, Net Pension Liabilities and Proportionate Shares (GASB 68) Miscellaneous Plan (A gent-Multi Employer) 2016 2017 2018 2019 2020 T ota
l Pension liability
Service cost 1,453,844$ 1,558,565$ 1,668,040$ 1,838,731$ 1,837,828$ Interest 4,835,092 5,163,328 5,444,560 5,748,392 6,162,322 Changes of benefit terms - - - - - Diff. bet. expected and actual exper. (1,262,496) - 4,723,245 (507,928) - Changes of assumptions 251,382 655,412 130,415 764,300 1,694,787 Benefit payments (2,507,060) (2,905,028) (3,049,139) (3,360,693) (3,623,752) Net change in T otal Pension Liability 2,770,762 4,472,277 8,917,121 4,482,802 6,071,185 T otal Pension Liability - beginning 64,741,542 67,512,304 71,984,581 80,901,702 85,384,504 T otal Pension Liability - ending 67,512,304$ 71,984,581$ 80,901,702$ 85,384,504$ 91,455,689$ Plan fiduciary net position
Employer contributions 2,685,315$ 1,796,306$ 3,691,282$ 2,523,306$ 2,863,892$ Employee contributions 729,001 739,091 759,805 867,085 974,104 Net investment income 1,095,538 289,358 5,590,957 4,804,549 4,033,001 Benefit payments (2,507,060) (2,905,028) (3,049,139) (3,360,693) (3,623,752) Net plan to plan resource movement 49 - - (141) - Administrative expense (56,265) (30,457) (73,620) (88,483) (43,788) Other misc income (expense) - - - (168,031) 141 Net change in plan fiduciary net position 1,946,578 (110,730) 6,919,285 4,577,592 4,203,598 Plan fiduciary net position - beginning 48,027,689 49,974,267 49,863,537 56,782,822 61,360,414 Plan fiduciary net position - ending 49,974,267$ 49,863,537$ 56,782,822$ 61,360,414$ 65,564,012$ Net Pension Liability (NPL) 17,538,037$ 22,121,044$ 24,118,880$ 24,024,090$ 25,891,677$ Plan fiduciary net position as a
percentage of the total Pension liability 74.02% 69.27% 70.19% 71.86% 71.69% Covered payroll 9,856,574$ 10,608,255$ 10,273,081$ 11,211,773$ 11,276,404$ NPL as a percentage of covered payroll 177.93% 208.53% 234.78% 214.28% 229.61% Safety Plan (Cost Sharing) 2016 2017 2018 2019 2020
Proportion of Net Pension Liability 0.22348% 0.23212% 0.23783% 0.24676% 0.25436% Proportionate Share of Net Pension Liability 15,339,447$ 20,085,433$ 23,586,276$ 23,778,037$ 26,063,854$ Covered Payroll 8,344,457$ 9,191,925$ 9,200,222$ 10,029,811$ 10,838,835$ Proportionate Share of Net Pension
Liability as a % of Covered Payroll 183.83% 218.31% 256.37% 237.07% 240.47% Plan Fiduciary's Net Position as a
percenta
ge of the Total Pension Liability 80.28% 74.06% 73.31% 75.26% 75.26% Continued
Notes to Schedule:

The CalPERS discount rate was increased from 7.5% to 7.65% in FY 2016, decreased from 7.15% in FY2018 and 6.9% in FY2023.

The CalPERS mortality assumptions was adjusted in fiscal year 2023.

City of Rocklin
June 30, 2025

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Schedule of Changes in Net Pension Liabilities, Net Pension Liabilities and Proportionate Shares (GASB 68) Miscellaneous Plan (A gent-Multi Employer) 2021 2022 2023 2024 2025 T otal Pension liability
Service cost 1,864,754$ 1,848,673$ 2,016,032$ 2,147,141$ 2,184,550$ Interest 6,546,678 6,862,818 7,137,937 7,456,529 7,781,263 Changes of benefit terms - - - 121,142 - Diff. bet. expected and actual exper. - - (294,254) 301,238 439,784 Changes of assumptions 1,147,218 184,084 3,599,971 - - Benefit payments (3,946,715) (4,385,151) (4,886,808) (5,162,471) (5,549,267) Net change in T otal Pension Liability 5,611,935 4,510,424 7,572,878 4,863,579 4,856,330 T otal Pension Liability - beginning 91,455,689 97,067,624 101,578,048 109,150,926 114,014,505 T otal Pension Liability - ending 97,067,624$ 101,578,048$ 109,150,926$ 114,014,505$ 118,870,835$ Plan fiduciary net position
Employer contributions 2,915,971$ 6,432,032$ 3,090,721$ 4,768,135$ 3,193,802$ Employee contributions 991,487 986,233 1,056,241 1,081,416 1,163,685 Net investment income 3,289,827 16,024,892 (6,626,820) 4,977,682 8,216,232 Benefit payments (3,946,715) (4,385,151) (4,886,808) (5,162,471) (5,549,267) Net plan to plan resource movement - - - - - Administrative expense (92,429) (68,649) (54,639) (59,042) (69,894) Other misc income (expense) - - - - - Net change in plan fiduciary net position 3,158,141 18,989,357 (7,421,305) 5,605,720 6,954,558 Plan fiduciary net position - beginning 65,564,012 68,722,153 87,711,510 80,290,205 85,895,925 Plan fiduciary net position - ending 68,722,153$ 87,711,510$ 80,290,205$ 85,895,925$ 92,850,483$ Net Pension Liability (NPL) 28,345,471$ 13,866,538$ 28,860,721$ 28,118,580$ 26,020,352$ Plan fiduciary net position as a
percentage of the total Pension liability 70.80% 86.35% 73.56% 75.34% 78.11% Covered payroll 11,546,463$ 11,597,699$ 11,404,973$ 11,558,710$ 11,882,354$ NPL as a percentage of covered payroll 245.49% 119.56% 253.05% 243.27% 218.98% Safety Plan (Cost Sharing) 2021 2022 2023 2024 2025
Proportion of Net Pension Liability 0.26798% 0.27662% 0.27662% 0.31073% 0.31397% Proportionate Share of Net Pension Liability 29,157,726$ 14,960,301$ 14,960,301$ 38,764,891$ 38,076,964$ Covered Payroll 11,888,369$ 11,720,404$ 11,720,404$ 13,126,407$ 12,803,337$ Proportionate Share of Net Pension
Liability as a % of Covered Payroll 245.26% 127.64% 113.97% 295.32% 297.40% Plan Fiduciary's Net Position as a
percentage of the Total Pension Liability 75.10% 88.29% 76.68% 76.68% 76.21% Concluded
City of Rocklin
June 30, 2025

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Rocklin City CouncilFebruary 24, 2026

Rocklin City Council
February 24, 2026