Shafter City Council
February 3, 2026

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
75 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued) P. Other Postemployment Benefits (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense have been determined by an independent actuary (Note 10). For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. The General Fund and Internal Service Funds are typically used to liquidate the OPEB liability related to the City's governmental activities while the OPEB liability for Business-type activities is liquidated from the respective Enterprise Funds.

Generally accepted accounting principles require that the reported results must pertain to liability and fiduciary net position information within certain defined timeframes. For this report, the following timeframes are used:

Valuation date June 30, 2023
Measurement date June 30, 2024
Measurement period July 1, 2023 to June 30, 2024
Q. Net Position
In the Government-Wide Financial Statements and the Proprietary Fund Financial Statements, Net Position are classified in the following categories:

Net Investment in Capital Assets - This component of net position consists of capital assets, net of accumulated depreciation and amortization, reduced by outstanding balances of debt and deferred gain on refinancing that are attributed to the acquisition, construction, or improvement of those assets.

Restricted - This component of net position consists of restricted assets reduced by liabilities and deferred outflows/inflows of resources related to those assets.

Unrestricted - This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

R. Fund Balances
In the Governmental Fund Financial Statements fund balances are classified in the following categories:

Nonspendable - Items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds.

Restricted - Restricted fund balances encompass the portion of net resources subject to externally enforceable legal restrictions. This includes externally restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.

Committed - Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself (resolution or ordinance) at its highest level of decision making, normally the governing body and that remain binding unless removed in the same manner.

The City Council is considered the highest authority for the City.

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
76 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued) R. Fund Balances (Continued)
Assigned - Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has authorized the City Manager and the Director of Finance for that purpose. The City Council may also assign fund balance, however, unlike commitments, assignments generally only exist temporarily, and additional action does not normally have to be taken for the removal of an assignment.

Unassigned - These are either residual positive net resources of the General Fund in excess of what can properly be classified in one of the other categories, or negative balances in all other funds.

S. Spending Policy
In the Government-Wide Financial Statements and the Proprietary Fund Financial Statements, when an expense is incurred for purposes for which both restricted and unrestricted Net Position are available, the City’s policy is to apply restricted Net Position first.

In the Governmental Fund Financial Statements, when expenditures are incurred for purposes for which all restricted, committed, assigned and unassigned fund balances are available, the City’s policy is to apply in the following order, except for instances wherein an ordinance specifies the fund balance:
 Restricted
 Committed
 Assigned
 Unassigned
T. Property Taxes
In 1978, a State constitutional amendment (Article XIIIA) provided that the ad valorem real property tax rate be limited to 1% of market value and be levied only by the county and shared with all other jurisdictions. The County of Kern collects the property taxes and distributes them to taxing jurisdictions on the basis of the taxing jurisdictions’ assessed valuation, subject to adjustments for voter-approved debt. Property taxes are formally due on November 1 and February 1 and become delinquent as of December 10 and April 10, respectively. Taxes become a lien on the property effective March 1 of the preceding year.

U. Use of Accounting Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets, deferred outflows of resources, liabilities, deferred inflows of resources and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions.

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
77 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued) V. Implementation of New GASB Pronouncements for the Year Ended June 30, 2025 The requirements of the following accounting standards are effective for the purpose of implementation, if applicable to the City, for the year ended June 30, 2025. The financial statements included herein apply the requirements and provisions of these statements, including necessary retroactive adjustments to financial statement classifications and presentations.

GASB Statement No. 101 – In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Implementation of this Statement had a significant effect on the City's financial statements for the fiscal year ended June 30, 2025. See Note 19.

GASB Statement No. 102 – In December 2023, GASB issued 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. Implementation of this Statement did not have a significant effect on the City's financial statements for the fiscal year ended June 30, 2025.

W. Upcoming Government Accounting Standards Implementations The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB statements:

GASB Statement No. 103 – In April 2024, GASB issued Statement No. 103, Financial Reporting Model Improvements. The objective of 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. Application of this statement is effective for the City’s fiscal year ending June 30, 2026.

GASB Statement No. 104 – In September 2024, GASB issued 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 recognized 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 recognized 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. Application of this statement is effective for the City’s fiscal year ending June 30, 2026.

GASB Statement No. 105 – In December 2025, GASB issued Statement No. 105, Subsequent Events. This Statement establishes accounting and financial reporting requirements for events and transactions that occur after the financial statement date but before financial statements are issued. The Statement defines the types of subsequent events and requires disclosure of certain nonrecognized subsequent events. Application of this Statement is effective for the City’s fiscal year ending June 30, 2027.

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
78 Note 2 – Cash and Investments
Cash and investments are presented in the accompanying financial statements at June 30, 2025 as follows:

Fiduciary Funds
Governmental Business-Type Statement of
Activities Activities Total Net Position Total
Cash and investments 156,402,396 $ 3,492,020 $ 159,894,416 $ 1,068,800 $ 160,963,216 $ Cash and investments with fiscal agent - - - 555 555
Total cash and investments $ 3,492,020 156,402,396 $ 159,894,416 $ 1,069,355 $ 160,963,771 $ Government-Wide Statement of Net Position
Cash and investments consisted of the following at June 30, 2025:

Cash:

Cash on hand 5,759 $
Deposits with financial institution 25,649,242
Total cash 25,655,001
Investments:

Investments 135,308,215
Investments held by bond trustee 555
Total investments 135,308,770
Total cash and investments $ 160,963,771
A. Demand Deposits
The carrying amounts of the City’s demand deposits were $25,649,242 at June 30, 2025. Bank balances were $28,123,292 at that date, the total amount of which was collateralized or insured with securities held by the pledging financial institutions in the City’s name as discussed below.

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 in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The fair value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City’s deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City, however, has not waived the collateralization requirements.

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
79 Note 2 – Cash and Investments (Continued)
B. Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code and the City's investment policy.

Authorized Maximum Maximum
By Investment Maximum Percentage Investment in
Authorized Investment Types Policy Maturity of Portfolio One Issuer* Local Agency Bonds No 5 years None None
U.S. Treasury Obligations Yes 5 years None None
U.S. Agency Securities Yes 5 years None None
Banker's Acceptances Yes 180 days 40% 30%
Commercial Paper Yes 270 days 15% 10%
Negotiable Certificates of Deposit Yes 5 years 30% 30%
Repurchase Agreements Yes 7 days None None
Reverse Repurchase Agreements No 92 days None None
Medium-Term Notes Yes 5 years 15% 15%
Mutual Funds Yes N/A 10% 10%
Money Market Mutual Funds Yes N/A 10% 10%
Mortgage Pass-Through Securities No 5 years None None
County Pooled Investment Funds No N/A None None
Local Agency Investment Fund (LAIF) Yes N/A $75 Million** None JPA Pools (other investment pools) Yes N/A None None
** Limit set by LAIF governing Board not California Government Code * Based on state law requirements or City investment policy requirements, whichever is more restrictive.

In accordance with the City's investment policy, a maximum of 25% of the City's investment portfolio may be invested for more than 5 years, not to exceed 10 years.

The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

C. Fair Value Measurements
Fair value of assets measured on a recurring basis at June 30, 2025, are as follows:

Total Level 1 Level 2
Investments measured by fair value level:

Negotiable certificates of deposit 19,059,000 $ - $ 19,059,000 $ U.S. Treasury Notes 15,648,668 15,648,668 -
Non U.S. Government Agency Securities 150,360 - 150,360 Corporate Securities 18,797,744 - 150,360
Federal Agency Securities 51,625,568 - 18,797,744
Municipal Securities 11,982,510 - 11,982,510
Total investments by fair value level 117,263,850 $ 15,648,668 $ 50,139,974 Investments not subject to the fair value hierarchy:

Local agency investment funds - State of CA 2,438,956
Money market mutual funds 196,224
California CLASS 15,409,740
Total investments not subject to the fair value hierarchy 18,044,920 Total investments $ 135,308,770

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
80 Note 2 – Cash and Investments (Continued)
C. Fair Value Measurements (Continued)
Debt and equity securities classified in Level 1 are valued using prices quoted in active markets for those securities.

Debt and equity securities classified in Level 2 are valued using the following approaches:
• U.S. Treasuries, U.S. Agencies, and Commercial Paper: quoted prices for identical securities in markets that are not active;
• Medium term notes: quoted prices for similar securities in active markets; and • Asset-backed securities: recent appraisals of the asset value.

D. Risk Disclosure
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City's investments (including investments held by fiscal agent) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity:

Investment Type Total 1 year or less 1-3 years 3-5 years Local Agency Investment Funds $ 2,438,956 $ 2,438,956 $ - $ - California CLASS 15,409,740 15,409,740 - -
Money market mutual funds 195,669 195,669 - -
Certificates of deposit 19,059,000 4,209,000 9,909,000 4,941,000 U.S. Treasury Notes 15,648,668 2,858,219 6,161,410 6,629,039 Non U.S. Government Agency Securities 150,360 - 150,360 - Corporate Securities 18,797,744 2,600,167 4,229,641 11,967,936 Federal Agency Securities 51,625,568 451 26,358,330 25,266,787 Municipal Securities 11,982,510 990,520 6,373,993 4,617,997 Held by bond trustee:

Money market mutual funds 555 555 - -
Total investments $ 28,703,277 135,308,770 $ 53,182,734 $ 53,422,759 $ Disclosure Relating to Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5 percent or more of total City investments are as follows:

Reported Percentage
Issuer Investment Type Amount of Portfolio
Federal Home Loan Bank Federal Agency Securities 17,574,487 $ 12.99% Federal Farm Credit Bank Federal Agency Securities 12,670,860 9.36% Federal Home Loan Mortgage Corporation Federal Agency Securities 8,026,223 5.93%

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
81 Note 2 – Cash and Investments (Continued)
D. Risk Disclosure (Continued)
Disclosures Relating to Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits:

The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2025, the City’s deposits (bank balances) were collateralized under California Law.

Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the minimum rating required by the California Government Code, the City's investment policy, or debt agreements, and the actual Moody’s rating as of year-end for each investment type.

Minimum Ratings Rating
Legal at Year-End at Year-End
Investment Type Total Rating AA or AAA A /A-1 Not Rated Local Agency Investment Funds $ 2,438,956 N/A $ - $ 2,438,956 - $ California CLASS 15,409,740 A-1 - 15,409,740 -
Money market mutual funds 195,669 AA+ - - 195,669
Certificates of deposit 19,059,000 A 92,640 2,960,000 16,006,360 U.S. Treasury Notes 15,648,668 N/A 15,648,668 - -
Non U.S. Government Agency Securities 150,360 A - - 150,360 Corporate Securities 18,797,744 AA 12,759,708 5,789,036 249,000 Federal Agency Securities 51,625,569 N/A 51,625,569 - - Municipal Securities 11,982,509 N/A 11,006,839 975,670 - Held by bond trustee:

Money market mutual funds 555 AA 555 - -
Total investments $ 135,308,770 $ 91,133,979 $ 9,724,706 $ 34,450,085 E. California CLASS
California CLASS is a pooled investment option that was created via a joint exercise of powers agreement by and among California public agencies. California CLASS provides California public agencies with a convenience method for investing in high-liquid, short to medium term securities. Deposits and withdrawals to and from California CLASS are transferred on the basis of $1 and not fair value. Accordingly, under the fair value hierarchy, California CLASS is valued based on inputs not categorized as level 1, level 2 or level 3. As of June 30, 2025, the City had $15,409,740 invested in the California CLASS.

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
82 Note 2 – Cash and Investments (Continued)
F. Investment in State Investment Pool
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. As of June 30, 2025, the City had $2,438,956 invested in LAIF.

LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. LAIF is reported at amortized cost, which approximates fair value.

Note 3 – Lease Receivable
A. Governmental Activities
The portion of the City’s property is leased to others. Such property includes special purpose facilities, office and commercial space, and land. Lease receivable consists of agreements with other for the right-to-use of the underlying assets at various locations owned by the City. The terms of the arrangements range from 1 to 11 years.

The calculated interest rates used range from 0.41% to 2.45% and vary depending on the length of the lease. For the fiscal year ended June 30, 2025, the City recognized $197,574 in lease revenue and $11,402 in interest revenue.

At June 30, 2025, the City reported a deferred inflow of resources related to leases of $801,071.

A summary of changes in lease receivable for the fiscal year ended June 30, 2025 is as follows:

Balance Balance Due within Due in More
July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Lease receivable $ 975,617 $ (163,092) - $ $ 812,525 $ 165,962 $ 646,563 Classification
As of June 30, 2025, the required payments for these leases, including interest, are:

Year Ending
June 30, Principal Interest Total
2026 165,962 $ 9,583 $ 175,545 $
2027 168,892 7,733 176,625
2028 114,577 5,866 120,443
2029 58,374 4,812 63,186
2030 59,214 3,971 63,185
2031 - 2035 245,506 7,236 252,742
Total $ 39,201 812,525 $ 851,726 $
B. Business-Type Activities
The portion of the City’s property is leased to others. Such property includes special purpose facilities, office and commercial space, and land. Lease receivable consists of agreements with other for the right-to-use of the underlying assets at various locations owned by the City. The terms of the arrangements range from 2 to 21 years.

The calculated interest rates used range from 0.41% to 2.45% and vary depending on the length of the lease. For the fiscal year ended June 30, 2025, the City recognized $106,840 in lease revenue and $29,479 in interest revenue.

At June 30, 2025, the City reported a deferred inflow of resources related to leases of $1,595,654.

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
83 Note 3 – Lease Receivable (Continued)
B. Business-Type Activities (Continued)
A summary of changes in lease receivable for the fiscal year ended June 30, 2025 is as follows:

Balance Balance Due within Due in More
July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Lease receivable $ 1,851,738 $ (106,770) - $ $ 1,744,968 $ 108,763 $ 1,636,205 Classification
As of June 30, 2025, the required payments for these leases, including interest, are:

Year Ending
June 30, Principal Interest Total
2026 108,763 $ 28,046 $ 136,809 $
2027 113,444 26,540 139,984
2028 95,669 25,021 120,690
2029 88,211 23,634 111,845
2030 91,388 22,223 113,611
2031 - 2035 483,857 87,913 571,770
2036 - 2040 460,091 48,355 508,446
2041 - 2045 303,545 17,054 320,599
Total $ 278,786 1,744,968 $ 2,023,754 $
Note 4 – Interfund Balances and Transactions
A. Due to/Due from Other Funds
As of June 30, 2025, interfund receivables and payables were as follows:

Receivable Fund Payable Fund Amount Purpose
General Fund Federal Grants Special Revenue Fund $ 232,961 Overdrawn Cash General Fund Housing and Community Development Special Revenue Fund Overdrawn Cash 844 General Fund Water Services Enterprise Fund 215,217 Overdrawn Cash General Fund Rail Spur Services Enterprise Fund 1,838,087 Overdrawn Cash General Fund Fiber Optic and Communication Tower Enterprise Fund 658,589 Overdrawn Cash General Fund Transit Services Enterprise Fund 395,146 Overdrawn Cash General Fund Information Technology Internal Service Fund 198,937 Overdrawn Cash Total $ 3,539,781
Current interfund balances arise in the normal course of operations to cover cash shortages and are expected to be repaid shortly after the end of the fiscal year.

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
84 Note 4 – Interfund Balances and Transactions (Continued) B. Transfers
Interfund transfers for the year ended June 30, 2025, were as follows:

Transfers In Transfers Out Amount Purpose
General Fund Federal Grants Special Revenue Fund $ Administrative cost 67,797 General Fund SLESF Grants Special Revenue Fund Administrative cost 194,663 Subtotal 262,460
Water Services Enterprise Fund Federal Grants Special Revenue Fund Capital projects 1,108,431 Water Services Enterprise Fund Water Capital Improvement Capital Projects Fund 387,448 Capital projects Subtotal 1,495,879
Wastewater Services Fund Wastewater Capital Improvement Capital Projects Fund Capital projects 1,002,264 State Grants Special Revenue Fund Federal Grants Special Revenue Fund Administrative cost 88,237 Total $ 2,848,840
Note 5 – Capital Assets
A. Governmental Activities
Summary of changes in capital assets for governmental activities for the year ended June 30, 2025 are as follows:

Balance Adjustments/ Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated/amortized
Land $ 9,694,125 $ (985,753) - $ $ 11,625 $ 8,719,997
Construction in progress 10,131,228 2,859,552 (6,680) (9,435,604) 3,548,496 Total capital assets, not being depreciated/amortized 19,825,353 2,859,552 (992,433) (9,423,979) 12,268,493 Capital assets, being depreciated/amortized
Building and improvements 32,021,830 360,131 2,339,544 - 34,721,505 Improvements other than buildings 5,898,779 330,450 (1,123,709) 1,177,397 6,282,917 Machinery and equipment 4,214,085 1,220,197 - 5,434,282 - Automotive equipment 3,804,576 1,113,243 (59,843) 4,857,976 - Infrastructure 71,854,391 3,377,717 5,907,037 - 81,139,145 Subscription Asset 1,062,416 (30,916) - 1,031,501 1
Total capital assets, being depreciated/amortized 118,856,077 6,401,738 (1,214,468) 9,423,979 133,467,326 Accumulated depreciation/amortization:

Building and improvements (22,404,943) (811,314) - (23,216,257) - Improvements other than buildings (2,126,406) (198,859) 313,183 (2,012,082) - Machinery and equipment (3,521,847) (254,697) - (3,776,544) - Automotive equipment (2,848,203) (518,456) 59,841 (3,306,818) - Infrastructure (48,460,743) (1,922,009) - (50,382,752) - Subscription asset (354,831) (205,442) 30,917 (529,356) - Total accumulated depreciation/amortization (79,716,973) (3,910,777) 403,941 (83,223,809) - Total capital assets, being depreciated/amortized, net 39,139,104 2,490,961 (810,527) 9,423,979 50,243,517 Total capital assets, net $ 58,964,457 $ 5,350,513 $ (1,802,960) $ 62,512,010 - $

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
85 Note 5 – Capital Assets (Continued)
A. Governmental Activities (Continued)
Depreciation/amortization expense was charged to functions/programs as follows:

General government $ 1,871,852
Public safety 262,298
Public works 1,332,699
Culture and recreation 308,366
Internal service funds 135,562
Total depreciation/
amortization expense $ 3,910,777
B. Business-Type Activities
Summary of changes in capital assets for business-type activities for the year ended June 30, 2025 are as follows:

Balance Adjustments/ Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated/amortized
Land $ 628,861 $ - $ - $ 628,861 -
Construction in progress 3,418,974 1,324,166 (2,717,191) - 2,025,949 Total capital assets, not being depreciated/amortized 4,047,835 1,324,166 (2,717,191) - 2,654,810 Capital assets, being depreciated/amortized
Building and improvements 6,821,633 - - 6,821,631 (2)
Improvements other than buildings 2,687,874 - - 2,687,873 (1) Machinery and equipment 5,761,696 60,872 - 5,822,570 2
Automotive equipment 1,816,581 233,169 - 2,049,752 2
Infrastructure 62,899,964 2,734,463 2,717,191 - 68,351,618 Subscription Asset 126,570 (18,110) - 108,459 (1)
Total capital assets, being depreciated/amortized 80,114,318 3,028,504 (18,110) 2,717,191 85,841,903 Accumulated depreciation/amortized:

Building and improvements (4,025,833) (171,689) - (4,197,522) - Improvements other than buildings (815,043) (91,594) - (906,637) - Machinery and equipment (3,190,627) (240,777) - (3,431,404) - Automotive equipment (1,237,138) (195,877) - (1,433,012) 3 Infrastructure (29,209,410) (1,955,593) - (31,165,005) (2) Subscription Asset (50,934) (23,677) 18,110 (56,502) (1) Total accumulated depreciation/amortized (38,528,985) (2,679,207) 18,110 (41,190,082) - Total capital assets, being depreciated/amortized, net 41,585,333 349,297 2,717,191 - 44,651,821 Total capital assets, net $ 45,633,168 $ 1,673,463 $ - $ 47,306,631 - $ Depreciation/amortization expense for business-type activities for the year ended June 30, 2025 are as follows:

Water Services $ 1,256,536
Wastewater Services 884,136
Rail Spur Services 199,920
Fiber Optic and Communication Tower 168,725
Refuse Collection Services 15,786
Transit Services 154,104
Total depreciation/
amortization expense $ 2,679,207

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
86 Note 6 – Long-Term Debt
A. Governmental Activities
A summary of changes in the Long-Term Debt of the governmental activities for the year ended June 30, 2025, is as follows:

Balance Balance Due within Due in More
July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Subscription liability $ 631,109 $ (189,270) - $ $ 441,839 $ 176,998 $ 264,841 Classification
The City has entered into subscription-based information technology arrangements (SBITAs) for services related to cloud-based software applications, data storage and management services. Under the terms of these arrangements, the City does not take possession of the software at any time and the vendor provides ongoing services for the software's operation. The subscription periods vary, with initial non-cancellable terms ranging from 2 to 6 years. The calculated interest rates varied ranging from 2.92 percent to 3.01 percent, which is based on the length of the SBITA and date of the agreement.

As of June 30, 2025, the capitalized right-to-use assets related to SBITAs were $1,031,501 and the total subscription liability was $441,839, of which $176,998 is reported as a current liability representing the amount due within the next fiscal year.

The annual debt service requirements of the subscription liability are as follows:

Year Ending
June 30, Principal Interest Total
2026 176,998 $ 10,929 $ 187,927 $
2027 128,604 6,623 135,227
2028 131,801 3,426 135,227
2029 4,436 142 4,578
Total 441,839 $ 21,120 $ 462,959 $
B. Business-Type Activities
A summary of changes in the Long-Term Debt of the business-type activities for the year ended June 30, 2025, is as follows:

Balance Balance Due within Due in More
July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Subscription liability 68,561 $ - $ (19,480) $ $ 19,863 49,081 $ 29,218 $ Classification
The City has entered into subscription-based information technology arrangements (SBITAs) for services related to cloud-based software applications, data storage and management services. Under the terms of these arrangements, the City does not take possession of the software at any time and the vendor provides ongoing services for the software's operation. The subscription periods vary, with initial non-cancellable terms ranging from 2 to 6 years. The calculated interest rates varied ranging from 2.92 percent to 3.01 percent, which is based on the length of the SBITA and date of the agreement.

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
87 Note 6 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
As of June 30, 2025, the capitalized right-to-use assets related to SBITAs were $108,459 and the total subscription liability was $49,081, of which $19,863 is reported as a current liability representing the amount due within the next fiscal year.

The annual debt service requirements of the subscription liability are as follows:

Year Ending
June 30, Principal Interest Total
2026 19,863 $ 931 $ 20,794 $
2027 14,474 541 15,015
2028 14,744 273 15,017
Total 49,081 $ 1,745 $ 50,826 $
C. Fiduciary Funds
Summary of changes in fiduciary funds long-term debt for the year ended June 30, 2025 are as follows:

Balance Balance Due within Due in More
July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year 2016 Refunding Tax Allocation
Bonds, Series A 9,010,000 $ - $ (545,000) $ $ 8,465,000 $ 565,000 $ 7,900,000 Less: bond discounts (141,258) - 11,301 (129,957) (129,957) - Total $ - 8,868,742 $ (533,699) $ $ 8,335,043 $ 565,000 $ 7,770,043 Classification
On December 28, 2016, the Agency issued Successor Agency to the Shafter Community Development Agency Taxable Tax Allocation Refunding Bonds, 2016 Series A in the amount of $12,530,000, maturing through 2036 in annual principal payments ranging in amounts from $470,000 to $880,000. Interest is payable semi-annually ranging from 1.375% to 4.375%. The proceeds of the bonds were used to decrease the 2006 Tax Allocation Bonds Series A Project Area No. 1 original issue $9,150,000 and 2006 Tax Allocation Bonds Series A Project Area No. 2 original issue $6,685,000. The bonds are secured by pledged tax revenues on the taxable property within the former Shafter Community Development Project Area. Bonds outstanding at June 30, 2025 were $8,465,000.

In the event of default, bond owners will be limited to enforcing the obligation of the Agency to repay the Bonds on an annual basis to the extent of the Pledged Tax Revenues. No real or personal property in the Project Areas is pledged to secure the Bonds, and it is not anticipated that the Agency will have available moneys sufficient to redeem all of the Bonds upon the occurrence of an Event of Default.

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
88 Note 6 – Long-Term Debt (Continued)
C. Fiduciary Funds (Continued)
The annual debt service requirements on the loan outstanding at June 30, 2025, were as follows:

Year Ending
June 30, Principal Interest Total
2026 565,000 $ 344,059 $ 909,059 $
2027 585,000 324,288 909,288
2028 600,000 301,300 901,300
2029 625,000 275,269 900,269
2030 650,000 248,175 898,175
2031-2035 3,715,000 789,978 4,504,978
2036-2037 1,725,000 5,881,073 7,606,073
Total $ 8,164,142 8,465,000 $ 16,629,142 $
Note 7 – Special Assessment Debt with No City Commitment The special assessment bonds are secured by valid assessment liens upon certain property within the special assessment district and are not direct liabilities of the City and, accordingly, are not included in the accompanying basic financial statements. The City has no obligation beyond the balances in the designated agency funds for any delinquent assessment district bond payments. If delinquencies occur beyond the amounts held in the reserve funds created from bond proceeds, the City has no duty to pay the delinquency out of any available funds of the City. Neither the faith, credit, nor taxing power of the City is pledged to the payment of the bonds. The City acts solely as an agent for those paying assessments and for the bondholders.

On December 21, 1994, the City issued a Limited Obligation Improvement Bond, Assessment District No. 92-1, for the North Park/North Shafter Water Project. The principal amount of $155,143 and matures in increments through 2034 in semi-annual principal payments ranging in amounts from $1,253 to $8,100. Interest is payable semi-annually at

4.5% per annum. The principal amount of bonds outstanding at June 30, 2025, was $67,300.

Note 8 – Compensated Absences
A. Governmental Activities
A summary of changes in the compensated absences balances for the governmental activities for the year ended June 30, 2025 is as follows:

Balance
July 1, 2024, Increases/ Balance Due within Due in More as restated (Decreases) June 30, 2025 One Year Than One Year Compensated absences $ 2,051,936 $ 68,948 $ 2,120,884 $ 540,416 $ 1,580,468 Classification

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
89 Note 8 – Compensated Absences (Continued)
A. Governmental Activities (Continued)
Compensated absences in the governmental activities are obligations of the following funds:

Governmental Funds $ 1,960,445
Building Maintenance Internal Service Fund 5,178
Vehicle Maintenance Internal Service Fund 41,460
Information Technology Internal Service Fund 113,801
Total $ 2,120,884
B. Business-Type Activities
A summary of changes in the compensated absences balances for the business-type activities for the year ended June 30, 2025 is as follows:

Balance
July 1, 2024, Increases/ Balance Due within Due in More as restated (Decreases) June 30, 2025 One Year Than One Year Compensated absences 469,159 $ 27,296 $ 496,455 $ 107,427 $ 389,028 $ Classification
Compensated absences in the business-type activities are obligations of the following funds:

Water Services Fund $ 312,493
Wastewater Services Fund 133,341
Rail Spur Services Fund 8,829
Refuse Collection Services Fund 15,053
Transit Services Fund 26,739
Total $ 496,455

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
90 Note 9 – Pension Plans
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

Pension contribution made after measurement date:

CalPERS Miscellaneous 768,611 $ 195,839 $ 964,450 $
CalPERS Safety 646,473 - 646,473
Total pension contribution made after measurement date 1,415,084 195,839 1,610,923 Change in assumption
CalPERS Miscellaneous 53,927 13,740 67,667
CalPERS Safety 37,922 - 37,922
Total change in assumption 91,849 13,740 105,589
Projected earnings on pension plan investments in excess of actual earnings:

CalPERS Miscellaneous 120,787 30,776 151,563
CalPERS Safety 74,397 - 74,397
Total projected earnings on pension plan investments
in excess of actual earnings 195,184 30,776 225,960
Adjustment due to difference in proportions
CalPERS Miscellaneous 1,905,443 485,498 2,390,941
CalPERS Safety 812,101 - 812,101
Total adjustment due to difference in proportions 2,717,544 485,498 3,203,042 Difference between expected and actual experience
CalPERS Miscellaneous 174,325 44,417 218,742
CalPERS Safety 121,526 - 121,526
Total difference between expected and actual experience 295,851 44,417 340,268 Total deferred outflows of resources
CalPERS Miscellaneous 3,023,093 770,270 3,793,363
CalPERS Safety 1,692,419 - 1,692,419
Total deferred outflows of resources $ 770,270 4,715,512 $ 5,485,782 $ Net pension liability:

CalPERS Miscellaneous 2,099,388 $ 533,347 $ 2,632,735 $ CalPERS Safety 1,539,176 - 1,539,176
Total net pension liability $ 533,347 3,638,564 $ 4,171,911 $ Deferred inflows of Resources:

Employer contributions in excess of proportionate share of contribution CalPERS Miscellaneous 1,612,995 $ 412,036 $ $ 2,025,031 CalPERS Safety 660,623 - 660,623
Total employer contributions in excess
of proportionate share of contribution 2,273,618 412,036 2,685,654 Total deferred inflows of resources
CalPERS Miscellaneous 1,612,995 412,036 2,025,031
CalPERS Safety 660,623 - 660,623
Total deferred inflows of resources $ 2,273,618 $ 412,036 $ 2,685,654 Pension expenses:

CalPERS Miscellaneous $ 2,022,505 $ 516,645 $ 2,539,150 CalPERS Safety 946,811 - 946,811
Total net pension expenses $ 2,969,316 $ 516,645 $ 3,485,961

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
91 Note 9 – Pension Plans (Continued)
B. General Information about the Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in either the City’s Miscellaneous Employee Pension Plan (Miscellaneous Plan) or Safety Employee Pension Plan (Safety Plan), both of which are cost-sharing multiple employer defined benefit pension 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.

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

Benefits Provided
The Plans’ provisions and benefits in effect at June 30, 2024, measurement date, are summarized as follows:

Prior to On or After
Hire Date January 1, 2013 January 1, 2013
Benefit formula 2.0% @ 55 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Retirement age 50 - 55 52 - 67
Monthly benefits, as a % of eligible compensation 2.0% 2.0% Required employee contribution rates 7.00% 7.870%
Required employer contribution rates 12.520% 7.780%
Final Annual Compensation 1 year 1 year
Miscellaneous
Prior to On or After
Hire Date January 1, 2013 January 1, 2013
Benefit formula 3.0% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Retirement age 50 50 - 63
Monthly benefits, as a % of eligible compensation 2.0% to 2.5% 1.092% to 2.418% Required employee contribution rates 9.00% 13.750%
Required employer contribution rates 24.330% 13.760%
Final Annual Compensation 1 year 1 year
Safety

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
92 Note 9 – Pension Plans (Continued)
B. General Information about the Pension Plans (Continued) Benefits Provided (Continued)
At June 30, 2025, the following employees were covered by the benefit terms for the plans:

Miscellaneous Safety
Active employees 93 27
Inactive employees or beneficiaries currently
receiving benefits 91 31
Inactive employees entitled to, but not yet receiving
benefits 168 27
Total 352 85
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 Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2025, the contributions made to the Miscellaneous and Safety Plans were $964,450 and $646,473, respectively.

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

Plan Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Miscellaneous
Balance at: 6/30/23 (Valuation date) $ 51,969,954 $ 49,212,788 $ 2,757,166 Balance at: 6/30/24 (Measurement date) 55,119,093 52,486,358 2,632,735 Net changes during 2023-2024 3,149,139 3,273,570 (124,431) Safety
Balance at: 6/30/23 (Valuation date) $ 23,739,440 $ 22,108,913 $ 1,630,527 Balance at: 6/30/24 (Measurement date) 24,978,836 23,439,660 1,539,176 Net changes during 2023-2024 1,239,396 1,330,747 (91,351) The City’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2024, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures.

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
93 Note 9 – Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for each Plan as of June 30, 2023 and 2024 was as follows:

Miscellaneous Safety Total
Proportion - June 30, 2023 0.055139% 0.021813% 0.076952% Proportion - June 30, 2024 0.054434% 0.021111% 0.075545% Change - Increase/(Decrease) -0.000705% -0.000702% -0.001407% For the year ended June 30, 2025, the City recognized pension expense for the Miscellaneous and Safety Plans of $2,539,150 and $946,811, respectively. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Contribution made after the measurement date $ 964,450 $ - Difference between expected and actual
experience 218,742 -
Changes of assumptions 67,667 -
Net difference between projected and actual
earnings on pension plan investments 151,563 -
Employer contributions in excess/(under)
proportionate share of contributions - 2,025,031
Adjustments due to difference in proportions 2,390,941 - Total $ 3,793,363 $ 2,025,031
Miscellaneous Plan
Deferred Outflows Deferred Inflows
of Resources of Resources
Contribution made after the measurement date $ 646,473 $ - Difference between expected and actual
experience 121,526 -
Changes of assumptions 37,922 -
Net difference between projected and actual
earnings on pension plan investments 74,397 -
Employer contributions in excess/(under)
proportionate share of contributions - 660,623
Adjustments due to difference in proportions 812,101 -
Total $ 1,692,419 $ 660,623
Safety Plan

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
94 Note 9 – Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Deferred Outflows Deferred Inflows
of Resources of Resources
Contribution made after the measurement date $ 1,610,923 $ - Difference between expected and actual
experience 340,268 -
Changes of assumptions 105,589 -
Net difference between projected and actual
earnings on pension plan investments 225,960 -
Employer contributions in excess/(under)
proportionate share of contributions - 2,685,654
Adjustments due to difference in proportions 3,203,042 - Total $ 5,485,782 $ 2,685,654
Aggregate Total
For the Miscellaneous Plan and Safety Plan, $964,450 and 646,473, respectively, was reported as deferred outflows of resources related to pensions resulting from City’s contributions subsequent to the measurement date and 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 in pension expense as follows:

Measurement Period
Ended June 30 Miscellaneous Plan Safety Plan
2025 877,163 $ 275,463 $
2026 50,514 139,442
2027 (71,855) (4,127)
2028 (51,940) (25,455)
2029 - -
Thereafter - -
Total 803,882 $ 385,323 $
Deferred Outflows/(Inflows) of Resources
Actuarial Assumptions
The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Mortality Rate Table
Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter
Entry Age Actuarial Cost Method

6.90%

2.30%
Varies by Entry Age and Service
Derived using CalPERS’ membership data for all funds
1 The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
95 Note 9 – Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Discount Rate
In determining the long-term expected rate of return, CalPERS took into account, both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach.

Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both 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 long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.

Assumed
Asset Class1 Asset Allocation Real Return1,2
Global Equity - Cap-weighed 30.00% 4.54%
Global Equity - Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.00%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management Study The discount rate used to measure the total pension liability was 6.90% for the plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each 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 run out of assets. Therefore, the current 6.90% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 6.90% is applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained from the CalPERS website under the GASB 68 Section.

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
96 Note 9 – Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net position liability for the Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the Net Pension Liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90%)
Miscellaneous $ 10,070,527 $ 2,632,735 $ (3,489,663)
Safety 4,951,261 1,539,176 (1,251,430)
$ 15,021,788 $ 4,171,911 $ (4,741,093)
Plan's Net Pension Liability/(Asset)
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

D. Payable to the Pension Plan
At June 30, 2025, the City had no outstanding amounts owed to the pension plan for contributions for the year ended June 30, 2025.

Note 10 – Other Post Employment Health Benefits
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

OPEB contribution made after measurement date 81,979 $ 9,543 $ 91,522 $ Differences between actual and expected experience 66,417 7,732 74,149 Change in assumption 116,477 13,560 130,037
Total deferred outflows of resources $ 264,873 $ 30,835 $ 295,708 Total OPEB Liability $ 96,858 831,974 $ 928,832 $
Deferred inflows of Resources:

Differences between actual and expected experience 333,401 $ 38,816 $ 372,217 $ Change in assumption 69,277 8,065 77,342
Total deferred outflows of resources $ 402,678 $ 46,881 $ 449,559 OPEB Expense $ 100,239 $ 11,670 $ 111,909

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
97 Note 10 – Other Post Employment Health Benefits (Continued) B. General Information about OPEB
Plan Description
The City provides postemployment health benefits through a single-employer defined benefit plan administered by the City. Employees of the Miscellaneous bargaining group and other non-represented employees, who retire from the City with ten years or more of contiguous City service, are eligible for a Post-Retirement Health Benefit for themselves and spouse or child or children. This benefit is finite in nature and provides for the cost of benefits for one year only. This cost is computed at the rate of the current health care premiums and the current dental premiums, in place at the time of retirement.

Eligibility
Employees of the City are eligible for retiree health benefits if they retire within 120 days of their separation date.

Membership in the plan consisted of the following at June 30, 2018, the date of the latest actuarial valuation:

Active employees 84
Retirees 2
Total 86
Contributions
The obligation of the City to contribute to the plan is established and may be amended by the Board of Directors.

The Board of Directors has established a policy of funding the actuarially determined contribution (ADC) on a pay as you go basis. For the fiscal year ended June 30, 2020, the City’s average contribution rate was 0.33 % of coveredemployee payroll. Employees are not required to contribute to the plan.

C. Total OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2024. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2023. The total OPEB liability at June 30, 2024 was $928,832.

Actuarial Assumptions
The total OPEB liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Discount Rate
Inflation
Aggregate payroll increases
Expected long-term investment rate of return
Mortality, Termination, and Disability
Mortality Improvement Scale
Healthcare Trend Rate - Non-Medicare
Healthcare Trend Rate - Medicare (Kaiser)
Mortality projected fully generational with Scale MP-2021 An annual healthcare cost trend rate of 7.9% initially reduced by decrements to an ultimate of 3.45% therefore.

An annual healthcare cost trend rate of 5.65% initially reduced by decrements to an ultimate of 3.45% therefore.

3.93%

2.50%

2.75%
n/a
CalPERS 2000-2019 Experience Study
The actuarial assumptions used in the June 30, 2023 valuation were based on the results of an actuarial experience study for the period July 1, 2022 through June 30, 2023.

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
98 Note 10 – Other Post Employment Health Benefits (Continued) C. Total OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Discount Rate
The discount rate used to measure the total OPEB liability was 3.93 percent which increased from 3.65% in the previous year. This discount rate is the mid-point, rounded to five basis points, of the range of 3-20 year municipal bond rate indices; S&P Municipal bond 20 Year High Grade Rate Index, Bond Buyer 20-Bond GO Index, and Fidelity GO AA 20 Year Bond Index.

Change in the Total OPEB Liability
Total OPEB
Liability
Balance at June 30, 2023 (Valuation Date) $ 1,035,120
Changes Recognized for the Measurement Period:

Service Cost 83,690
Interest on the total OPEB liability 39,453
Difference between expected and actual experience (130,669) Changes of assumptions (22,919)
Benefit payments (75,843)
Net Changes during July 1, 2023 to June 30, 2024 (106,288) Balance at June 30, 2024 (Measurement Date) $ 928,832
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.93 percent) or 1-percentage- point higher (4.50 percent) than the current discount rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(2.93%) Rate (3.93%) (4.93%)
$ 928,832 1,012,765 $ 850,758 $
Plan's Total OPEB Liability
Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (6.9 percent decreasing to 2.5 percent) or 1-percentage-point higher (8.9 percent decreasing to 4.5 percent) than the current healthcare cost trend rates:

Healthcare Cost Healthcare Cost Healthcare Cost
Trend Rate - 1% Trend Rate Trend Rate + 1%
$ 928,832 806,334 $ 1,075,655 $
Plan's Total OPEB Liability

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
99 Note 10 – Other Post Employment Health Benefits (Continued) C. Total OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2025, the City recognized OPEB expense of $111,909. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Changes of assumptions $ 130,037 $ 77,342
Difference between expected and actual experience 74,149 372,217 Employer contributions made
subsequent to the measurement date 91,522 -
Total $ 295,708 $ 449,559
For the OPEB Plan $91,522 was reported as deferred outflows of resources related to pensions resulting from City’s contributions subsequent to the measurement date and will be recognized as a reduction of the Total OPEB 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 in pension expense as follows:

Measurement Period Deferred Outflows/
Ended June 30 (Inflows) of Resources
2025 (11,234) $
2026 (12,502)
2027 (13,223)
2028 (11,442)
2029 (11,442)
Thereafter (185,530)
$ (245,373)
The difference between projected OPEB plan investment earnings and actual earnings is amortized over a five year period. The remaining gains and losses are amortized over the expected average remaining service life. The expected average remaining service life is 12.6 years, which was determined as of July 1, 2018, the beginning of the measurement period, for employees covered by the OPEB plan benefit terms as of the valuation date.

Note 11 – Risk Management and Self-Insurance
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City obtains insurance coverage.

Public entity risk pools are formally organized and separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, those entities exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Each risk pool is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective risk pool, including selection of management and approval of operating budgets, independent of any influences by member municipalities beyond their representation of that board. Obligations and liabilities of these risk pools are not the City's responsibility.

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
100
Note 11 – Risk Management and Self-Insurance (Continued) Since 1986, the City has joined together with other cities to form a public entity risk pool known as the Central San Joaquin Valley Risk Management Authority - CSJVRMA (the “Authority”), a joint powers authority established in accordance with the California government code. The relationship between the City and the Authority is such that the Authority is not a component unit of the City for financial reporting purposes. Financial statements for the Authority may be obtained from the Authority's management.

The Authority is currently operating as a common risk management and insurance program for 53 member cities. The program's general objectives are to formulate, develop, and administer, on the behalf of the member cities, a program of insurance, to obtain lower cost for that coverage, and to develop a comprehensive loss control program. A member may withdraw from the Authority only by giving six-month notice. Cities applying for membership in the Authority may do so on approval of a two-thirds vote of the board of the Authority.

The latest financial information of the Authority for fiscal year ended June 30, 2024, is as follows:

Total assets $ 179,635,612
Total liabilities $ 144,400,470
Net position $ 35,235,142
Operating revenues $ 89,306,501
Operating expenses $ 94,324,180
Nonoperating revenues (expenses) $ 6,290,415
Change in net position $ 1,272,736
A. Coverage
The City participates in the Central San Joaquin Valley Risk Management Authority (CSJVRMA), a public entity risk pool currently operating as a common risk management and insurance program for 53 cities. The purpose of CSJVRMA is to spread the adverse effect of losses among the members and to purchase excess insurance as a group, thereby reducing its expense. The CSJVRMA is governed by a Board of Directors elected by the member agencies; it is not a component unit of the City. Audited financial statements are available from the Central San Joaquin Risk Management Authority at 1750 Creekside Oaks Drive, Suite 200, Sacramento, CA 95833.

The City is covered for the first $1,000,000 of each general liability claim and $250,000 of each workers’ compensation claim through the CSJVRMA. The City has the right to receive dividends or the obligation to pay assessments based on an estimated claims liabilities formula which, among other expenses, includes reported and incurred but not reported (IBNR) claims, and charges the City’s account for liability losses under $25,000 and workers’ compensation losses under $50,000.

The CSJVRMA participates in an excess pool which provides general liability coverage from $1,000,000 to $10,000,000 and workers’ compensation coverage from $250,000 to the statutory limit. The City has had no settlements which exceeded insurance coverage in the last ten fiscal years, and no changes in insurance coverage from the prior year. The City’s deductible amount is included with the premiums.

The CSJVRMA maintains separate records for each member for each year of participation. The records track cash paid to the CSJVRMA through deposit premium assessments, the City’s self-insured retention portion of claims paid, and the City’s allocation of shared risks. Three years after the close of the workers’ compensation coverage year and five years after the close of the general liability coverage year, the CSJVRMA assesses the status of all members for the year, then either makes a refund to a member if it has positive balance (i.e., payout and reserve experience is less than premiums paid) or collects any deficit.

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
101
Note 12 – Classification of Fund Balances
At June 30, 2025, fund balances are classified as follows:

Transportation Traffic Mitigation Non-major
General Special Revenue Improvement Capital Governmental Fund Fund Project Fund Funds Total
Nonspendable
Due from Fiduciary 745,013 $ - $ - $ - $ 745,013 $
Total nonspendable - 745,013 - - 745,013
Restricted
Transportation - 1,653,840 - - 1,653,840
State Grants - - - 5,896,203 5,896,203
State Gasoline Tax - - - 3,473,545 3,473,545
Road Maintenance & Rehabilitation Act - - - 1,166,959 1,166,959 Traffic Safety - - - 293,597 293,597
SLESF - law enforcement - - - 255,863 255,863
Assets forfeiture - drug enforcement and education - - - 224,079 224,079 Police services - - - 3,779 3,779
Lighting & Landscaping Maintenance - - - 2,652,929 2,652,929 Low Moderate Income Housing - - - 1,914,555 1,914,555
Water capital improvements - - - 2,515,597 2,515,597
Wastewater capital improvements - - - 14,440,010 14,440,010 Refuse capital improvements - - - 334,814 334,814
New parks and park improvements - - - 573,011 573,011
Total restricted - 1,653,840 33,744,941 - 35,398,781
Assigned
Loss contingency - State BOE petition 24,397,391 - - 24,397,391 - RDA bond proceeds for Shafter JCAI 1,490,000 - - - 1,490,000 TCP settlement proceeds for water treatment projects 3,538,591 - - - 3,538,591 Accumulated Losses in Other Funds 4,000,000 - - - 4,000,000 Funds available to loan to Water and Wastewater Funds 13,250,000 - - 13,250,000 - Funds available for Capital Projects 4,000,000 - - - 4,000,000 Traffic Mitigation improvement - 19,813,822 - 19,813,822 - Capital Assets Replacement - - - 4,868,045 4,868,045
MCCF Building and Equipment Replacement - - - 574 574
Median Mitigation Improvement - - - 115,875 115,875
Total assigned 50,675,982 19,813,822 - 4,984,494 75,474,298 Unassigned (deficit) 36,351,863 - - (371,166) 35,980,697 Total fund balances $ 87,772,858 $ 1,653,840 $ 19,813,822 $ 38,358,269 $ 147,598,789

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
102
Note 13 – Other Required Disclosures
A. Deficit Net Position/Fund Balances
At June 30, 2025, the following funds had a fund balances (deficit) or unrestricted net position (deficit), which will be eliminated through the reduction in future expenditures and/or the use of new funding sources:

Fund Fund Type Deficit
RDA Successor Agency Private Purpose Trust Fund Fiduciary Fund $ 8,130,324 Federal Grants Fund Special Revenue Fund 370,322
Housing and Community Development Special Revenue Fund 844 Building Maintenance Fund Internal Service Fund 20,073
Vehicle Maintenance Fund Internal Service Fund 16,974
The Special Revenue Fund and Internal Service Funds deficits are expected to be eliminated by future grant revenues, intergovernmental and charges for services. The Successor Agency to the Redevelopment Agency Private-Purpose Trust Funds deficit which will be eliminated by future revenues.

B. Expenditures Exceeding Appropriations
For the year ended June 30, 2025, expenditures exceeded appropriations in the following funds:

Excess Expenditures
Fund Over Appropriations
Traffic Mitigation Improvement Capital Projects Fund 198,868 $ Water Capital Improvement Capital Projects Fund 3,953
Note 14 ‒ Adjustments and Restatements of Beginning Balances Due to a decrease in the amount of fees being received, the City determined that the Refuse Services Enterprise Fund no longer meets the quantitative criteria for major governmental fund reporting. Accordingly, beginning in the current fiscal year, the Refuse Services Enterprise Fund are reported as nonmajor enterprise funds. The effect of this change in fund classification is presented in the column titled “Adjustment –Major to nonmajor fund” in the following table.

During the current year, the City implemented GASB Statement No. 101, Compensated Absences. In addition to the value of unused vacation time owed to employees upon separation of employment, the City now recognizes an estimated amount of sick leave earned as of year-end that will be used by employees as time off in future years as part of the liability for compensated absences. The effects of the change in accounting principle are summarized below in the “Restatement - GASB 101 implementation” column in the following table.

During the current fiscal year, during the current fiscal year we identified an error in the recording of revenue in prior periods. The correction of this error resulted in a restatement of beginning fund balance and net position as of July 1, 2024. The effects of the error correction are summarized below in the “Error Correction - TDA Revenue Correction” column in the following table.

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
103
Note 14 ‒ Adjustments and Restatements of Beginning Balances (Continued) June 30, 2024,
As Previously
Reported
Adjustment -
Major to
nonmajor funds
Restatement -
GASB 101
implementation
Error
Correction -
TDA Revenue
Correction
June 30, 2024,
As Restated
Government-wide
Governmental activities 186,143,227 $ - $ (814,676) $ 644,102 $ 185,972,653 $ Business-type activities 46,204,488 - (155,372) 524,346 46,573,462 Total government-wide $ - 232,347,715 $ (970,048) $ 1,168,448 $ 232,546,115 $ Governmental funds
Major funds:

General Fund 77,972,539 $ - $ - $ - $ 77,972,539 $
Transportation Fund (1,741,516) - - 3,096,990 1,355,474 Traffic Mitigation Improvement Fund 15,751,547 - - - 15,751,547 Nonmajor funds 34,972,873 - - - 34,972,873
Total governmental funds $ - 126,955,443 $ - $ 3,096,990 $ 130,052,433 $ Proprietary funds
Enterprise funds
Major funds:

Water Services Fund 20,148,311 $ - $ (96,726) $ - $ 20,051,585 $ Wastewater Services Fund 17,579,016 - (43,478) - 17,535,538 Rail Services Fund 6,052,281 - (584) - 6,051,697
Fiber Optic and Communication Tower Fund - 2,103,788 - - 2,103,788 Refuse Collection Services Fund 407,994 (407,994) - - - Non-major funds:

Refuse Collection Services Fund - 407,994 (3,684) - 404,310 Transit Services Fund (86,902) - (10,900) 524,346 426,544 Total enterprise funds $ - 46,204,488 $ (155,372) $ 524,346 $ 46,573,462 $ Internal service funds
Building Maintenance Fund (68,597) $ - $ (194) $ - $ (68,791) $ Liability Coverage Fund (641) - 2,184 - 1,543
Vehicle Maintenance Fund (21,687) - (10,567) - (32,254) Information Technology Fund 186,241 - (51,814) - 134,427 Total internal service funds $ - 95,316 $ (60,391) $ - $ 34,925 $ Note 15 – Commitments and Contingencies
A. Litigation
There are various claims and legal actions pending against the City for which no provision has been made in the accompanying general purpose financial statements. In the opinion of the City attorney and City management, liabilities arising from these claims and legal actions, if any, will not have an adverse material effect on the financial position of the City.

B. Grants
The City has received Federal grants for specific purposes that are subject to review and audit by the Federal government. Although such audits could result in expenditure disallowance under grant terms, and any required reimbursements are not expected to be material.

City of Shafter
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
104
Note 15 – Commitments and Contingencies (Continued)
C. State Board of Equalization Local Sales Tax Allocation Petitions In 2010, a petition was filled with the State Board of Equalization challenging the 1% local sales tax allocation for a large Shafter based retailer going back to the fourth quarter of 2009. This petition is ongoing and will most likely not be resolved for several years. In the meantime, the City is continuing to receive the local sales tax revenue from this retailer. Although management and the City’s attorney believe the City has a strong case, the City has assigned $24,397,371 of General Fund Balance as a loss contingency reserve in case of an adverse outcome.

D. Contractual Commitments
The City has capital contractual commitments for which funds have been encumbered as of June 30, 2025.

Encumbrances related to capital projects are funded through the current year appropriated budget, which carries over to the following year.

The following contractual construction commitments existed at June 30, 2025:

Contract Expenditures Remaining
Project Name Amount as of June 30, 2025 Commitments
Police Substation at 7th Std. Rd. $ 9,757,295 $ 514,541 $ 9,242,754 Shafter Aquatic Center Building Construction 4,318,218 484,623 3,833,595 Santa Fe Way Resurfacing Project 1,791,585 28,081 1,763,504 North Shafter Community Park 2,152,182 398,333 1,753,849 Roundabout at 7th Standard Road and Hwy 43 1,367,567 690,925 676,642 WWTP Expansion Project 2,212,411 1,624,309 588,102
Widen 7th Standard Road - Santa Fe to Hwy 43 1,307,241 719,595 587,646 Water Meter Retrofits 2,209,957 2,028,617 181,340
Hwy 43 Roundabout Project at Santa Fe 346,072 230,314 115,758 Shafter Aquatic Center Project 3,707,034 3,655,357 51,677 Total $ 29,169,562 $ 10,374,695 $ 18,794,867

105

REQUIRED SUPPLEMENTARY INFORMATION

106
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City of Shafter
Notes to the Required Supplementary Information
For the Year Ended June 30, 2025
107

1. Budgetary Information
Budgetary Policy and Control
The City Council adopts an annual budget, submitted by the City Manager prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the City Council. All appropriations lapse at year-end with the exception of capital improvement budgets which lapse when exhausted or within three years if not reappropriated. The City Council has the legal authority to amend the budget at any time during the fiscal year. The City Manager has the authority to make adjustments to the operating budget within a fund. Transfers of operating budgets between funds or from appropriated reserve accounts, use of unappropriated fund balances, cancellation of appropriation and all changes in capital improvement project budgets require the approval of the City Council.

Supplemental appropriations during the fiscal year were not material.

The annual budget is prepared on a basis consistent with generally accepted accounting principles. It is adopted for all governmental type funds, except for Debt Service Funds. The Police Services Fund, Housing and Community Development Fund, Lighting and Landscaping District and MCCF Building and Equipment Replacement Funds did not adopt a budget for year ended June 30, 2025.

The City maintains budgetary controls to ensure compliance with legal provisions embodied in the appropriated budget approved by the City Council. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) for the operating budget is at the fund level.

108
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City of Shafter
Required Supplementary Information (Unaudited)
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Fund
For the Year Ended June 30, 2025
109
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Property taxes and special assessments 3,432,800 $ 3,492,292 $ 3,851,860 $ 359,568 $ Property taxes in lieu of VLF 4,455,000 4,455,000 4,859,115 404,115 Sales tax 27,787,000 15,094,072 16,439,791 1,345,719
Franchise tax 1,589,500 1,589,500 1,750,482 160,982
Other taxes 114,800 114,800 136,071 21,271
Licenses, permits and fees 1,426,080 2,391,356 3,783,191 1,391,835 Fines, forfeitures and penalties 24,600 30,002 48,038 18,036 Investment earnings 1,721,030 3,056,804 4,652,835 1,596,031 Intergovernmental 21,400 1,243,895 468,303 (775,592)
Charges for current services 1,856,000 1,904,300 2,097,810 193,510 Other 24,780 33,911 39,210 5,299
Total revenues 33,405,932 42,452,990 38,126,706 4,720,774 EXPENDITURES:

Current:

General government 17,889,701 10,400,787 9,829,033 571,754 Public safety 11,492,147 12,549,144 11,543,659 1,005,485 Public works 6,745,035 7,471,277 6,257,722 1,213,555
Culture and recreation 510,113 528,786 187,477 341,309
Capital outlay 2,444,000 3,328,396 2,308,760 1,019,636
Debt Service:

Principal - - 134,616 (134,616)
Interest - - 12,771 (12,771)
Total expenditures 39,080,996 34,278,390 30,274,038 4,004,352 REVENUES OVER (UNDER) EXPENDITURES 3,371,994 (872,458) 7,852,668 8,725,126 OTHER FINANCING SOURCES (USES):

Proceeds from the sale of property - 1,685,191 - 1,685,191 Transfers in - - 262,460 262,460
Total other financing sources (uses) - 1,947,651 - 1,947,651 Net change in fund balance $ 3,371,994 $ (872,458) 9,800,319 $ 10,672,777 FUND BALANCE:

Beginning of year 77,972,539
End of year $ 87,772,858
Budgeted Amounts

City of Shafter
Required Supplementary Information (Unaudited) (Continued) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Transportation Special Revenue Fund
For the Year Ended June 30, 2025
110
Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Investment earnings - $ - $ 31,916 $ 31,916 $
Intergovernmental 850,000 850,000 1,565,054 715,054
Total revenues 850,000 850,000 1,596,970 746,970
EXPENDITURES:

Capital outlay 1,183,000 2,094,490 1,298,604 795,886
Total expenditures 1,183,000 2,094,490 1,298,604 795,886 Net change in fund balance $ (333,000) $ (1,244,490) 298,366 $ 1,542,856 FUND BALANCE (DEFICIT):

Beginning of year (1,741,516)
End of year $ (1,443,150)
Budgeted Amounts

City of Shafter
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in Total OPEB Liability and Related Ratios For the Year Ended June 30, 2025
111
Measurement period 2023-24 2022-23 2021-22 2020-21 2019-20 Total OPEB liability
Service cost $ 83,690 $ 82,817 $ 146,857 $ 142,020 $ 128,353 Interest on the total OPEB liability 39,453 36,941 28,421 28,307 42,434 Differences between expected and actual experience (130,669) (234,723) - (119,666) - Changes of assumptions (22,919) (9,557) (52,435) 4,828 97,708 Benefit payments, including refunds of
of employee contributions (75,843) (71,575) (121,118) (168,970) (19,108) Net change in total pension liability (106,288) 38,626 (232,998) 6,185 129,721 Total OPEB liability - beginning 1,035,120 996,494 1,229,492 1,223,307 1,093,586 Total OPEB liability - ending (a) $ 928,832 $ 1,035,120 $ 996,494 $ 1,229,492 $ 1,223,307 Covered-employee payroll $ 12,063,781 $ 10,570,782 $ 9,636,679 $ 10,859,666 $ 8,175,600 Total OPEB liability as a percentage of
covered-employee payroll 7.70% 9.79% 10.34% 11.32% 14.96% Measurement period 2018-19 2017-18 2016-17 2015-16
Total OPEB liability
Service cost $ 119,132 $ 87,622 $ 66,630 $ 64,533
Interest 41,112 25,248 19,164 17,574
Differences between expected and actual experience 166,836 - - - Changes of assumptions 30,457 107,545 (31,411) 33,613
Benefit payments, including refunds of
of employee contributions (80,664) (42,632) (42,461) (14,403) Net change in total pension liability 110,037 344,619 11,922 101,317 Total OPEB liability - beginning 983,549 638,930 627,008 525,691 Total OPEB liability - ending (a) $ 1,093,586 $ 983,549 $ 638,930 $ 627,008 Covered-employee payroll $ 6,904,125 $ 6,654,022 $ 5,982,927 $ 5,594,858 Plan net OPEB liability as a percentage of
covered-employee payroll 15.84% 14.78% 10.68% 11.21%
1 Historical information is presented for measurement periods after GASB No. 75 was implemented.

Last Ten Fiscal Years1

City of Shafter
Required Supplementary Information (Unaudited) (Continued) Schedules of Proportionate Share of the Net Pension Liability As of June 30, 2025
112
Measurement period, year ended 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Plan's proportion of the
net pension liability (asset) 0.054434% 0.055139% 0.034584% -0.373233% -0.013050% Plan's proportionate share of
the net pension liability (asset) 2,632,735 $ 2,757,166 $ 1,618,281 $ (7,086,949) $ (550,450) $ Plan's covered payroll 8,356,941 $ 6,893,592 $ 6,705,334 $ 8,071,316 $ 10,029,113 $ Plan's proportionate share of
the net pension liability as a percentage
of covered-employee payroll 31.50% 40.00% 24.13% -87.80% -5.49% Plan's fiduciary net position 52,486,358 $ 49,212,788 $ 47,414,042 $ 53,722,244 $ 44,449,649 $ Plan's fiduciary net position as a percentage
of the total pension liability 95.22% 94.69% 96.70% 115.20% 101.25% Plan's proportionate share of aggregate
employer contributions 706,899 $ 569,834 $ 500,845 $ 637,064 $ 843,597 $ Measurement period, year ended 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Plan's proportion of the
net pension liability (asset) -0.035956% -0.057907% 0.068420% 0.050280% -0.010180% Plan's proportionate share of
the net pension liability (asset) (1,439,873) $ (2,182,345) $ 2,697,227 $ 1,746,829 $ (279,264) $ Plan's covered payroll 9,962,904 $ 9,503,909 $ 9,075,068 $ 8,795,952 $ 8,385,083 $ Plan's proportionate share of
the net pension liability as a percentage
of covered-employee payroll -14.45% -22.96% 29.72% 19.86% -3.33% Plan's fiduciary net position 42,280,166 $ 39,076,002 $ 30,750,129 $ 27,283,433 $ 26,547,389 $ Plan's fiduciary net position as a percentage
of the total pension liability 103.53% 105.92% 91.94% 93.98% 101.06% Plan's proportionate share of aggregate
Last Ten Fiscal Years
Miscellaneous Plan

City of Shafter
Required Supplementary Information (Unaudited) (Continued) Schedules of Proportionate Share of the Net Pension Liability (Continued) As of June 30, 2025
113
Measurement period, year ended 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Plan's proportion of the
net pension liability (asset) 0.021111% 0.021813% 0.012884% -0.078276% 0.000274% Plan's proportionate share of
the net pension liability (asset) 1,539,176 $ 1,630,527 $ 885,312 $ (2,747,083) $ 18,262 $ Plan's covered payroll 3,706,841 $ 3,283,931 $ 1,372,566 $ 1,604,669 $ 1,604,669 $ Plan's proportionate share of
the net pension liability as a percentage
of covered-employee payroll 41.52% 588.07% 565.39% 334.52% 502.66% Plan's fiduciary net position $ 23,439,660 $ 22,108,913 $ 20,562,003 $ 21,919,953 $ 17,594,656 Plan's fiduciary net position as a percentage
of the total pension liability 93.84% 67.98% 68.75% 80.74% 69.45% Plan's proportionate share of aggregate
employer contributions $ 483,198 $ 453,710 $ 439,623 $ 413,337 $ 361,604 Measurement period, year ended 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Plan's proportion of the
net pension liability (asset) -0.006706% -0.011575% 0.018877% 0.015451% -0.000770% Plan's proportionate share of
the net pension liability (asset) $ (418,601) $ (679,163) $ 1,127,918 $ 800,238 $ (31,768) Plan's covered payroll $ 1,983,520 $ 1,896,452 $ 1,909,531 $ 1,600,988 $ 1,369,953 Plan's proportionate share of
the net pension liability as a percentage
of covered-employee payroll 469.78% 504.26% 498.95% 443.60% 353.04% Plan's fiduciary net position $ 15,852,988 $ 15,124,338 $ 11,774,640 $ 11,053,636 $ 10,860,631 Plan's fiduciary net position as a percentage
of the total pension liability 70.70% 71.50% 71.11% 72.67% 77.91% Plan's proportionate share of aggregate
Safety Plan
Last Ten Fiscal Years

City of Shafter
Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions – Pension
As of June 30, 2025
114
Fiscal Year: 2024-25 2023-24 2022-23 2021-22 2020-21
Contractually determined contribution (actuarially determined) 964,450 $ 706,899 $ 569,834 $ 500,845 $ 637,064 $ Contributions in relation to the actuarially determined contributions (964,450) (706,899) (569,834) (500,845) (637,064) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll $ 8,356,941 8,607,649 $ 6,893,592 $ 6,705,334 $ 8,071,316 $ Contributions as a percentage of covered payroll 11.20% 61.76% 59.88% 57.67% 55.02% Fiscal Year: 2019-20 2018-19 2017-18 2016-17 2015-16
Contractually determined contribution (actuarially determined) 843,597 $ 795,495 $ 803,239 $ 683,489 $ 653,073 $ Contributions in relation to the actuarially determined contributions (843,597) (795,495) (5,075,239) (683,489) (653,073) Contribution deficiency (excess) $ - - $ (4,272,000) $ - $ - $ Covered payroll $ 9,962,904 10,029,113 $ 9,503,909 $ 9,075,068 $ 8,795,952 $ Contributions as a percentage of covered payroll 8.41% 7.98% 53.40% 7.53% 7.42% Notes to Schedule:

Methods and assumptions used to determine contribution rates for the fiscal year ended June 30, 2025:

Actuarial cost method Entry Age Actuarial Cost Method
Amortization method/period Level percentage of payroll
Asset valuation method Fair Market Value
Inflation 2.30%
Salary increases Varies by entry age and service
Payroll growth 2.80%
Investment rate of return 6.80% net of pension plan investment and administrative expenses.

Retirement age
Mortality
Miscellaneous Plan
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2025 were derived from the June 30, 2022 funding valuation report.

The probabilities of retirement are based on the 2021 CalPERS Experience Study for the period from 2000 and 2019.

The probabilities of mortality are based on the 2021 experience study report. The mortality table was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries.

Last Ten Fiscal Years

City of Shafter
Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions – Pension (Continued)
For the Year Ended June 30, 2025
115
Fiscal Year: 2024-25 2023-24 2022-23 2021-22 2020-21
Contractually determined contribution (actuarially determined) $ 646,473 $ 483,198 $ 453,710 $ 439,623 $ 413,337 Contributions in relation to the actuarially determined contributions (646,473) (483,198) (453,710) (439,623) (413,337) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll $ 3,818,046 $ 3,706,841 $ 3,283,931 $ 1,372,566 $ 1,604,669 Contributions as a percentage of covered payroll 16.93% 13.04% 61.76% 59.88% 57.67% Fiscal Year: 2019-20 2018-19 2017-18 2016-17 2015-16
Contractually determined contribution (actuarially determined) $ 361,604 $ 320,722 $ 349,243 $ 299,645 $ 257,507 Contributions in relation to the actuarially determined contributions (361,604) (320,722) (2,034,243) (299,645) (257,507) Contribution deficiency (excess) $ - $ (1,685,000) - $ $ - $ - Covered payroll $ 2,113,776 $ 1,983,520 $ 1,896,452 $ 1,909,531 $ 1,600,988 Contributions as a percentage of covered payroll 17.11% 16.17% 107.27% 15.69% 16.08% Notes to Schedule:

Methods and assumptions used to determine contribution rates for the fiscal year ended June 30, 2025:

Actuarial cost method Entry Age Actuarial Cost Method
Amortization method/period Level percentage of payroll
Asset valuation method Fair Market Value
Inflation 2.30%
Salary increases Varies by entry age and service
Payroll growth 2.80%
Investment rate of return 6.80% net of pension plan investment and administrative expenses.

Retirement age
Mortality
The probabilities of retirement are based on the 2021 CalPERS Experience Study for the period from 2000 and 2019.

The probabilities of mortality are based on the 2021 experience study report. The mortality table was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries.

Safety Plan
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2025 were derived from the June 30, 2022 funding valuation report.

Last Ten Fiscal Years

116
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SUPPLEMENTARY INFORMATION
117

Special Revenue Funds:

Federal Grants Fund - This fund is used to account for various Federal Highway and transportation grants received by the City.

State Grants Fund - This fund is used to account for various capital projects funded by state grants.

Traffic Safety Fund - This fund is used to account for the City's share of traffic violation fines allocated for traffic enforcement and signage.

Supplemental Law Enforcement Services Fund ("SLESF") Grants Fund - This fund is used to account for revenues and expenditures associated with front line law enforcement and municipal police services.

State Gasoline Tax Fund - This fund is used to account for the City's share of gasoline taxes that are apportioned under Streets and Highways Code sections 2105, 2106, 2107, and 2107.5 of the State of California. These funds are restricted to activities and purchases that assist in the construction of and maintenance of local roads within the City limits.

Police Services Fund - This fund is used to account for the fines imposed by the County of Kern and local donations to assist with the Drug Awareness and Rehabilitation Education program (DARE).

Asset Forfeiture Fund - This fund is used to account for revenues associated with the sale of assets seized from individuals convicted of drug related crimes. The expenditures of this fund must assist in drug abuse enforcement or education.

Road Maintenance and Rehabilitation "Act" Fund - This fund is used to account for intergovernmental revenues and expenditures relative to the State of California Road Maintenance and Rehabilitation Act for maintenance or reconstruction related to streets.

Housing and Community Development Fund - This fund is used to account for revenues and expenditures related to programs and projects funded with Housing & Community Development grant proceeds.

Low and Moderate Income Housing Fund - This fund is used to account for balance of the former low and moderate income housing funds of the former Shafter Community Development Agency and revenues and expenditures related to such housing projects and programs.

Lighting and Landscaping District Fund - This fund is used to account for funds received from the lighting and landscaping district to provide for alternative sources of funding for maintenance and service of landscaping and public lighting facilities located within the public areas of the assessment districts.

Capital Projects Funds:

Water Capital Improvement Fund - This fund was established to account for the impact fees charged to developers for the improvements that will become necessary to keep pace with the demands placed on existing plant assets. This allows for an incremental charge for existing capacity to be established that will build additional plant capacity in staged phases.

Wastewater Capital Improvement Fund - This fund was established to account for the impact fees charged to developers for the improvements that will become necessary to keep pace with the demands placed on existing plant assets.

Refuse Capital Improvement Fund - This fund was established to account for the impact fees charged to developers for the cost of new refuse collecting system that will become necessary to keep pace with the demands placed on existing assets.

Non-Major Governmental Funds
118

Capital Projects Funds, Continued:

Park Capital Improvement Fund - This fund was established to account for the park-in-lieu fee that is charged to developers for the cost of new parks or improvements to existing parks.

Capital Assets Replacement Fund - This fund was established to account for the purchase or construction of a new City Hall facility. The purpose of the fund is to set-aside and restricts assets to replace existing facilities in the future.

Modified Community Correctional Facility ("MCCF") Building and Equipment Replacement Fund - This fund is used to account for the activities of the City's small prison equipment and building replacement operations that must be provided under a triple net lease with the owner.

Median Mitigation Improvement Fund - This fund was established to account for expenditures for the cost of median installation related projects that serve more than one project or multiple phases of projects.

Non-Major Governmental Funds (Continued)
119

State
Federal State Traffic SLESF Gasoline
Grants Grants Safety Grants Tax
ASSETS
Cash and investments - $ 6,026,638 $ 291,891 $ 253,236 $ 3,402,187 $ Receivables:

Interest 6,341 33,456 1,706 2,627 20,201
Intergovernmental - 47,059 - - 51,157
Total assets $ 6,107,153 6,341 $ 293,597 $ 255,863 $ 3,473,545 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable 84,213 $ 210,950 $ - $ - $ - $
Unearned revenues - - - - -
Due to other funds 232,961 - - - -
Total liabilities 210,950 317,174 - - -
Deferred inflows of resources
Unavailable revenue 59,489 - - - -
Total deferred inflows of resources - 59,489 - - -
Fund Balances:

Restricted - 5,896,203 293,597 255,863 3,473,545
Assigned - - - - -
Unassigned (deficit) (370,322) - - - -
Total fund balances (deficit) 5,896,203 (370,322) 293,597 255,863 3,473,545 Total liabilities, deferred inflows of
resources, and fund balances $ 6,341 $ 6,107,153 $ 293,597 $ 255,863 $ 3,473,545 (Continued)
Special Revenue
Non-Major Governmental Funds
City of Shafter
Combining Balance Sheet
June 30, 2025
120

Road Low and
Maintenance Housing and Moderate
Police Asset and Community Income
Services Forfeiture Rehabilitation Development Housing
ASSETS
Cash and investments 3,779 $ 222,769 $ 1,053,581 $ - $ 1,903,359 $ Receivables:

Interest - 1,310 6,445 - 11,196
Intergovernmental - - 106,933 8,501 -
Total assets $ 224,079 3,779 $ 1,166,959 $ 8,501 $ 1,914,555 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable - $ - $ - $ - $ - $
Unearned revenues - - - - -
Due to other funds - - - 844 -
Total liabilities - - - 844 -
Deferred inflows of resources
Unavailable revenue - - - 8,501 -
Total deferred inflows of resources - - - 8,501 -
Fund Balances:

Restricted 3,779 224,079 1,166,959 - 1,914,555
Assigned - - - - -
Unassigned (deficit) - - - (844) -
Total fund balances (deficit) 224,079 3,779 1,166,959 (844) 1,914,555 Total liabilities, deferred inflows of
resources, and fund balances $ 3,779 $ 224,079 $ 1,166,959 $ 8,501 $ 1,914,555 (Continued)
Special Revenue
City of Shafter
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2025
121

Special Revenue
Lighting and Water Wastewater Refuse Park
Landscaping Capital Capital Capital Capital
District Improvement Improvement Improvement Improvement ASSETS
Cash and investments 2,696,601 $ 2,501,114 $ 14,347,622 $ 332,856 $ 569,625 $ Receivables:

Interest 16,770 17,193 92,388 1,958 3,386
Intergovernmental - - - - -
Total assets $ 2,518,307 2,713,371 $ 14,440,010 $ 334,814 $ 573,011 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable 35,442 $ 2,710 $ - $ - $ - $
Unearned revenues 25,000 - - - -
Due to other funds - - - - -
Total liabilities 2,710 60,442 - - -
Deferred inflows of resources
Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
Fund Balances:

Restricted 2,652,929 2,515,597 14,440,010 334,814 573,011 Assigned - - - - -
Unassigned (deficit) - - - - -
Total fund balances (deficit) 2,515,597 2,652,929 14,440,010 334,814 573,011 Total liabilities, deferred inflows of
resources, and fund balances $ 2,713,371 $ 2,518,307 $ 14,440,010 $ 334,814 $ 573,011 (Continued)
City of Shafter
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2025
Capital Projects
122

Total
Capital MCCF Building Median Non-major
Assets and Equipment Mitigation Governmental
Replacement Replacement Improvement Funds
ASSETS
Cash and investments 4,868,045 $ 1,196 $ 115,197 $ 38,589,696 $ Receivables:

Interest - - 678 215,655
Intergovernmental - - - 213,650
Total assets $ 1,196 4,868,045 $ 115,875 $ 39,019,001 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable - $ 622 $ - $ 333,937
Unearned revenues - - - 25,000
Due to other funds - - - 233,805
Total liabilities 622 - - 592,742
Deferred inflows of resources
Unavailable revenue - - - 67,990
Total deferred inflows of resources - - - 67,990
Fund balances:

Restricted - - - 33,744,941
Assigned 4,868,045 574 115,875 4,984,494
Unassigned (deficit) - - - (371,166)
Total fund balances (deficit) 574 4,868,045 115,875 38,358,269 Total liabilities, deferred inflows of
resources, and fund balances $ 1,196 4,868,045 $ 115,875 $ 39,019,001 $ (Concluded)
City of Shafter
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2025
Capital Projects
123

State
Federal State Traffic SLESF Gasoline
Grants Grants Safety Grants Tax
REVENUES:

Property taxes and special assessments - $ - $ - $ - $ - $ Other taxes - - - - 601,811
Licenses, permits and fees - - - - -
Fines, forfeitures and penalties - - 19,450 - -
Investment earnings 58,783 279,590 13,880 20,630 160,119 Intergovernmental 198,037 1,524,632 - 194,663 -
Charges for current services - 47,059 - - -
Total revenues 1,851,281 256,820 33,330 215,293 761,930 EXPENDITURES:

Current:

Public works - - - - -
Capital outlay 1,067,284 1,892,106 49,999 - 95,039
Total expenditures 1,892,106 1,067,284 49,999 - 95,039

REVENUES OVER
(UNDER) EXPENDITURES (40,825) (810,464) (16,669) 215,293 666,891 OTHER FINANCING SOURCES (USES):

Transfers in - 88,237 - - -
Transfers out (1,264,465) - (194,663) - -
Total other financing sources (uses) (1,264,465) 88,237 (194,663) - - NET CHANGES IN FUND BALANCES (2,074,929) 47,412 (16,669) 20,630 666,891 FUND BALANCES (DEFICIT):

Beginning of year 1,704,607 5,848,791 310,266 235,233 2,806,654 End of year $ (370,322) $ 5,896,203 $ 293,597 $ 255,863 $ 3,473,545 (Continued)
City of Shafter
For the Year Ended June 30, 2025
Non-Major Governmental Funds
Special Revenue
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 124

Road Low and
Maintenance Housing and Moderate
Police Asset and Community Income
Services Forfeiture Rehabilitation Development Housing
REVENUES:

Property taxes and special assessments $ - $ - $ - $ - $ - Other taxes - 606,577 - - -
Licenses, permits and fees - - - - -
Fines, forfeitures and penalties - 8,210 - - -
Investment earnings 39 10,766 43,150 - 92,732
Intergovernmental - - - - -
Charges for current services - - - - -
Total revenues 39 18,976 649,727 - 92,732
EXPENDITURES:

Current:

Public works - - - - -
Capital outlay - 605,102 - - -
Total expenditures - 605,102 - - -

REVENUES OVER
(UNDER) EXPENDITURES 39 18,976 44,625 - 92,732
OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out - - - - -
Total other financing sources (uses) - - - - -
NET CHANGES IN FUND BALANCES 18,976 39 44,625 - 92,732
FUND BALANCES (DEFICIT):

Beginning of year 3,740 205,103 1,122,334 (844) 1,821,823 End of year 3,779 $ 224,079 $ 1,166,959 $ (844) $ 1,914,555 $ (Continued)
Special Revenue
City of Shafter
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2025
125

Special Revenue
Lighting and Water Wastewater Refuse Park
Landscaping Capital Capital Capital Capital
District Improvement Improvement Improvement Improvement REVENUES:

Property taxes and special assessments 1,140,990 $ - $ - $ - $ - $ Other taxes - - - - -
Licenses, permits and fees - 573,784 3,518,666 - 209,872 Fines, forfeitures and penalties - - - - -
Investment earnings 126,730 134,414 700,648 16,219 25,008 Intergovernmental - - - - -
Charges for current services - - - - -
Total revenues 708,198 1,267,720 4,219,314 16,219 234,880 EXPENDITURES:

Current:

Public works 565,235 - - - -
Capital outlay - 3,953 4,481 - -
Total expenditures 3,953 565,235 4,481 - -

REVENUES OVER
(UNDER) EXPENDITURES 704,245 702,485 4,214,833 16,219 234,880 OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out (387,448) - (1,002,264) - -
Total other financing sources (uses) (387,448) - (1,002,264) - - NET CHANGES IN FUND BALANCES 316,797 702,485 3,212,569 16,219 234,880 FUND BALANCES (DEFICIT):

Beginning of year 1,950,444 2,198,800 11,227,441 318,595 338,131 End of year 2,652,929 $ 2,515,597 $ 14,440,010 $ 334,814 $ 573,011 $ (Continued)
Capital Projects
City of Shafter
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2025
126

Total
Capital MCCF Building Median Total Other
Assets and Equipment Mitigation Governmental
Replacement Replacement Improvement Funds
REVENUES:

Property taxes and special assessments $ - $ - $ 1,140,990 - $ Other taxes - - 1,208,388 -
Licenses, permits and fees - - 150 4,302,472
Fines, forfeitures and penalties - - - 27,660
Investment earnings 96,975 - 5,614 1,785,297
Intergovernmental - - 1,917,332 -
Charges for current services - - - 47,059
Total revenues 96,975 - 5,764 10,429,198
EXPENDITURES:

Current:

Public works - - 565,235 -
Capital outlay - - 3,717,964 -
Total expenditures - - 4,283,199 -

REVENUES OVER
(UNDER) EXPENDITURES 96,975 - 5,764 6,145,999
OTHER FINANCING SOURCES (USES):

Transfers in - - - 88,237
Transfers out - - (2,848,840) -
Total other financing sources (uses) - - (2,760,603) -
NET CHANGES IN FUND BALANCES 96,975 - 5,764 3,385,396
FUND BALANCES (DEFICIT):

Beginning of year 4,771,070 574 110,111 34,972,873
End of year $ 4,868,045 $ 574 $ 115,875 $ 38,358,269
(Concluded)
Capital Projects
City of Shafter
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2025
127

Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Licenses, permits and fees 2,537,000 $ 3,718,783 $ 5,247,808 $ 1,529,025 $ Investment earnings 130,000 130,000 954,290 824,290
Total revenues 3,848,783 2,667,000 6,202,098 2,353,315
EXPENDITURES:

Current:

Public safety - 370,000 363,434 6,566
Capital outlay 1,966,336 1,570,955 1,776,389 (205,434)
Total expenditures 1,940,955 1,966,336 2,139,823 (198,868) Net change in fund balance $ 1,907,828 700,664 $ 4,062,275 2,154,447 $ FUND BALANCE:

Beginning of year 15,751,547
End of year $ 19,813,822
City of Shafter
Budgetary Comparison Schedule
Traffic Mitigation Improvement Capital Projects Fund
For the Year Ended June 30, 2025
Budgeted Amounts
128

Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Investment earnings - $ - $ 58,783 $ 58,783 $
Intergovernmental 5,088,650 5,148,140 198,037 (4,950,103) Total revenues 5,148,140 5,088,650 256,820 (4,891,320)
EXPENDITURES:

Capital outlay 6,098,387 4,547,193 1,067,284 3,479,909
Total expenditures 4,547,193 6,098,387 1,067,284 3,479,909 REVENUES OVER (UNDER) EXPENDITURES 600,947 (1,009,737) (810,464) (1,411,411) OTHER FINANCING SOURCES (USES):

Transfers out - - (1,264,465) (1,264,465)
Total other financing sources (uses) - - (1,264,465) (1,264,465) Net change in fund balance $ 600,947 (1,009,737) $ (2,074,929) (2,675,876) $ FUND BALANCE (DEFICIT):

Beginning of year 1,704,607
End of year $ (370,322)
City of Shafter
Budgetary Comparison Schedule
Federal Grants Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
129

Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Investment earnings - $ - $ 279,590 $ 279,590 $
Intergovernmental 6,000,000 6,000,000 1,524,632 (4,475,368) Charges for current services - - 47,059 47,059
Total revenues 6,000,000 6,000,000 1,851,281 (4,148,719) EXPENDITURES:

Capital outlay 11,429,402 7,818,995 1,892,106 5,926,889 Total expenditures 7,818,995 11,429,402 1,892,106 5,926,889 REVENUES OVER (UNDER) EXPENDITURES (1,818,995) (5,429,402) (40,825) 1,778,170 OTHER FINANCING SOURCES (USES):

Transfers in - - 88,237 88,237
Total other financing sources (uses) - - 88,237 88,237
Net change in fund balance $ (1,818,995) (5,429,402) $ 47,412 1,866,407 $ FUND BALANCE:

Beginning of year 5,848,791
End of year $ 5,896,203
City of Shafter
Budgetary Comparison Schedule
State Grants Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
130

Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Fines, forfeitures and penalties 26,520 $ 26,520 $ 19,450 $ (7,070) $ Investment earnings 3,000 3,000 13,880 10,880
Total revenues 29,520 29,520 33,330 3,810
EXPENDITURES:

Capital outlay 225,000 225,000 49,999 175,001
Total expenditures 225,000 225,000 49,999 175,001
Net change in fund balance $ (195,480) (195,480) $ (16,669) 178,811 $ FUND BALANCE:

Beginning of year 310,266
End of year $ 293,597
City of Shafter
Budgetary Comparison Schedule
Traffic Safety Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
131

Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Investment earnings - $ - $ 20,630 $ 20,630 $
Intergovernmental - 194,664 194,663 (1)
Total revenues 194,664 - 215,293 20,629
OTHER FINANCING SOURCES (USES):

Transfers out - - (194,663) (194,663)
Total other financing sources (uses) - - (194,663) (194,663) Net change in fund balance $ 194,664 - $ 20,630 (174,034) $ FUND BALANCE:

Beginning of year 235,233
End of year $ 255,863
City of Shafter
Budgetary Comparison Schedule
SLESF Grants Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
132

Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Other taxes 516,100 $ 516,100 $ 601,811 $ 85,711 $
Investment earnings 3,000 3,000 160,119 157,119
Total revenues 519,100 519,100 761,930 242,830
EXPENDITURES:

Capital outlay 450,000 450,057 95,039 355,018
Total expenditures 450,057 450,000 95,039 355,018
Net change in fund balance $ 69,043 69,100 $ 666,891 597,848 $ FUND BALANCE:

Beginning of year 2,806,654
End of year $ 3,473,545
City of Shafter
Budgetary Comparison Schedule
State Gasoline Tax Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
133

Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Investment earnings - $ - $ 39 $ 39 $
Total revenues - - 39 39
Net change in fund balance $ - - $ 39 39 $
FUND BALANCE:

Beginning of year 3,740
End of year $ 3,779
City of Shafter
Budgetary Comparison Schedule
Police Services Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
134

Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Fines, forfeitures and penalties - $ 8,210 $ 8,210 $ - $ Investment earnings 3,000 3,000 10,766 7,766
Total revenues 11,210 3,000 18,976 7,766
Net change in fund balance $ 11,210 3,000 $ 18,976 7,766 $ FUND BALANCE:

Beginning of year 205,103
End of year $ 224,079
City of Shafter
Budgetary Comparison Schedule
Asset Forfeiture Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
135

Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Other taxes 460,000 $ 460,000 $ 606,577 $ 146,577 $
Investment earnings - - 43,150 43,150
Total revenues 460,000 460,000 649,727 189,727
EXPENDITURES:

Capital outlay 500,000 1,090,633 605,102 485,531
Total expenditures 1,090,633 500,000 605,102 485,531
Net change in fund balance $ (630,633) (40,000) $ 44,625 675,258 $ FUND BALANCE:

Beginning of year 1,122,334
End of year $ 1,166,959
City of Shafter
Budgetary Comparison Schedule
Road Maintenance and Rehabilitation Act Special Revenue Fund For the Year Ended June 30, 2025
Budgeted Amounts
136

Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Investment earnings 25,000 $ 25,000 $ 92,732 $ 67,732 $ Total revenues 25,000 25,000 92,732 67,732
Net change in fund balance $ 25,000 25,000 $ 92,732 67,732 $ FUND BALANCE:

Beginning of year 1,821,823
End of year $ 1,914,555
City of Shafter
Budgetary Comparison Schedule
Low and Moderate Income Housing Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
137

Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Property taxes and special assessments 981,106 $ 981,106 $ 1,140,990 $ 159,884 $ Investment earnings - - 126,730 126,730
Total revenues 981,106 981,106 1,267,720 286,614
EXPENDITURES:

Current:

Public works 670,165 718,773 565,235 153,538
Total expenditures 718,773 670,165 565,235 153,538
Net change in fund balance $ 262,333 310,941 $ 702,485 440,152 $ FUND BALANCE:

Beginning of year 1,950,444
End of year $ 2,652,929
City of Shafter
Budgetary Comparison Schedule
Lighting and Landscaping District Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
138

Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Licenses, permits and fees 245,000 $ 423,211 $ 573,784 $ 150,573 $ Investment earnings 15,404 15,404 134,414 119,010
Total revenues 438,615 260,404 708,198 269,583
EXPENDITURES:

Capital outlay - - 3,953 (3,953)
Total expenditures - - 3,953 (3,953)
REVENUES OVER (UNDER) EXPENDITURES 438,615 260,404 704,245 265,630 OTHER FINANCING SOURCES (USES):

Transfers out - - (387,448) (387,448)
Total other financing sources (uses) - - (387,448) (387,448) Net change in fund balance $ 438,615 260,404 $ 316,797 (121,818) $ FUND BALANCE:

Beginning of year 2,198,800
End of year $ 2,515,597
City of Shafter
Budgetary Comparison Schedule
Water Capital Improvement Capital Projects Fund
For the Year Ended June 30, 2025
Budgeted Amounts
139

Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Licenses, permits and fees 1,700,000 $ 2,447,117 $ 3,518,666 $ 1,071,549 $ Investment earnings 60,000 60,000 700,648 640,648
Total revenues 2,507,117 1,760,000 4,219,314 1,712,197
EXPENDITURES:

Capital outlay 862,500 862,500 4,481 858,019
Total expenditures 862,500 862,500 4,481 858,019
REVENUES OVER (UNDER) EXPENDITURES 1,644,617 897,500 4,214,833 2,570,216 OTHER FINANCING SOURCES (USES):

Transfers out - - (1,002,264) (1,002,264)
Total other financing sources (uses) - - (1,002,264) (1,002,264) Net change in fund balance $ 1,644,617 897,500 $ 3,212,569 1,567,952 $ FUND BALANCE:

Beginning of year 11,227,441
End of year $ 14,440,010
City of Shafter
Budgetary Comparison Schedule
Wastewater Capital Improvement Capital Projects Fund
For the Year Ended June 30, 2025
Budgeted Amounts
140

Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Licenses, permits and fees 2,329 $ 2,329 $ - $ (2,329) $ Investment earnings 3,379 3,379 16,219 12,840
Total revenues 5,708 5,708 16,219 10,511
Net change in fund balance $ 5,708 5,708 $ 16,219 10,511 $ FUND BALANCE:

Beginning of year 318,595
End of year $ 334,814
City of Shafter
Budgetary Comparison Schedule
Refuse Capital Improvement Capital Projects Fund
For the Year Ended June 30, 2025
Budgeted Amounts
141

Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Licenses, permits and fees 15,000 $ 141,436 $ 209,872 $ 68,436 $ Investment earnings 544 544 25,008 24,464
Total revenues 141,980 15,544 234,880 92,900
Net change in fund balance $ 141,980 15,544 $ 234,880 92,900 $ FUND BALANCE:

Beginning of year 338,131
End of year $ 573,011
City of Shafter
Budgetary Comparison Schedule
Park Capital Improvement Capital Projects Fund
For the Year Ended June 30, 2025
Budgeted Amounts
142

Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Investment earnings 50,000 $ 50,000 $ 96,975 $ 46,975 $ Other 335,580 335,580 - (335,580)
Total revenues 385,580 385,580 96,975 (288,605)
Net change in fund balance $ 385,580 385,580 $ 96,975 (288,605) $ FUND BALANCE:

Beginning of year 4,771,070
End of year $ 4,868,045
City of Shafter
Budgetary Comparison Schedule
Capital Assets Replacement Capital Projects Fund
For the Year Ended June 30, 2025
Budgeted Amounts
143

Actual Variance with
Original Final Amounts Final Budget
REVENUES:

Licenses, permits and fees - $ 150 $ 150 $ - $
Investment earnings 1,600 1,600 5,614 4,014
Total revenues 1,750 1,600 5,764 4,014
Net change in fund balance $ 1,750 1,600 $ 5,764 4,014 $ FUND BALANCE:

Beginning of year 110,111
End of year $ 115,875
City of Shafter
Budgetary Comparison Schedule
Median Mitigation Improvement Fund
For the Year Ended June 30, 2025
Budgeted Amounts
144

Non-Major Enterprise Funds
Refuse Collection Services Fund - This fund is used to account for the activities of the City's refuse collection and recycling operations.

Transit Services Fund - This fund is used to account for the activities of the government's public transit operations. 145

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146

Refuse
Collection Transit
Services Services Total
ASSETS
Current assets:

Cash and investments 617,969 $ - $ 617,969 $
Receivables:

Accounts receivable, net 91,075 - 91,075
Interest 3,099 - 3,099
Intergovernmental - 335,873 335,873
Total current assets 712,143 335,873 1,048,016
Noncurrent assets:

Capital assets:

Depreciable, net 127,593 486,487 614,080
Total capital assets 127,593 486,487 614,080
Total noncurrent assets 486,487 127,593 614,080
Total assets 822,360 839,736 1,662,096

DEFERRED OUTFLOW OF RESOURCES
Related to OPEB 1,432 4,133 5,565
Related to pensions 26,399 87,395 113,794
Total deferred outflow of resources 91,528 27,831 119,359

LIABILITIES
Current liabilities:

Accounts payable 124,415 104,258 228,673
Accrued payroll 1,920 12,083 14,003
Due to other funds - 395,146 395,146
Deposits 61,409 - 61,409
Interest payable 228 - 228
Unearned revenue 89,967 49,785 139,752
Compensated absences, due within one year 3,405 6,763 10,168 Subscription liability, due within one year 5,598 - 5,598 Total OPEB liability, due within one year 443 1,279 1,722 Total current liabilities 287,385 569,314 856,699
Noncurrent liabilities:

Compensated absences, due in more than one year 11,648 19,976 31,624 Subscription liability, due in more than one year 8,990 - 8,990 Total OPEB liability, due in more than one year 4,055 11,706 15,761 Aggregate net pension liability 18,279 60,514 78,793
Total noncurrent liabilities 42,972 92,196 135,168
Total liabilities 330,357 661,510 991,867

DEFERRED INFLOWS OF RESOURCES
Related to OPEB 2,177 6,285 8,462
Related to pensions 14,121 46,750 60,871
Total deferred inflows of resources 16,298 53,035 69,333

NET POSITION
Investment in capital assets 127,593 486,487 614,080
Unrestricted (deficit) 393,319 (287,144) 106,175
Total net position $ 199,343 520,912 $ 720,255 $
City of Shafter
Combining Statement of Net Position
Non-Major Enterprise Funds
June 30, 2025
147

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148

Refuse
Collection Transit
Services Services Total
OPERATING REVENUES:

Charges for services 2,195,827 $ 261,960 $ 2,457,787 $
Other 273,412 1,045 274,457
Total operating revenues 535,372 2,196,872 2,732,244
OPERATING EXPENSES:

Salaries and wages 94,131 422,174 516,305
Administration 178,494 - 178,494
Contractual 1,937,476 13,121 1,950,597
Maintenance and repair 137 30,790 30,927
Utilities 14,079 1,581 15,660
Parts and supplies 56,952 8,913 65,865
Depreciation/amortization 15,786 154,104 169,890
Total operating expenses 821,675 2,106,063 2,927,738
OPERATING INCOME (LOSS) (286,303) 90,809 (195,494)
NONOPERATING REVENUES (EXPENSES):

Investment earnings 26,078 - 26,078
Interest expense (285) - (285)
Grants 59,102 - 59,102
Total nonoperating revenues (expenses) 59,102 25,793 84,895 Changes in net position (227,201) 116,602 (110,599)
NET POSITION (DEFICIT):

Beginning of year, as previously reported - (86,902) (86,902) Adjustments 404,310 513,446 917,756
Beginning of year, as restated (Note 14) 404,310 426,544 830,854 End of year 520,912 $ 199,343 $ 720,255 $
City of Shafter
Combining Statement of Revenues, Expenses, and Changes in Net Position Non-Major Enterprise Funds
For the Year Ended June 30, 2025
149

Refuse
Collection Transit
Services Services Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash receipts from customers 2,217,930 $ 1,057,783 $ 3,275,713 $ Cash payments to suppliers (2,021,017) (144,568) (2,165,585) Cash payments to or on behalf of employees (94,963) (383,722) (478,685) Net cash provided by (used in) operating activities 529,493 101,950 631,443

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Interfund payments - (147,322) (147,322)
Intergovernmental receipts - 59,102 59,102
Intergovernmental payments - (335,355) (335,355)
Net cash provided by
noncapital financing activities (423,575) - (423,575)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (60,872) (105,918) (166,790) Principal payments on capital debt (5,495) - (5,495)
Interest paid on capital debt (775) - (775)
Net cash provided by (used in) capital and
related financing activities (105,918) (67,142) (173,060) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings 22,979 - 22,979
Net cash provided by investing activities - 22,979 22,979 Net change in cash and cash equivalents - 57,787 57,787 CASH AND CASH EQUIVALENTS:

Beginning of year 560,182 - 560,182
End of year 617,969 $ - $ 617,969 $
(Continued)
City of Shafter
Combining Statement of Cash Flows
Non-Major Enterprise Funds
For the Year Ended June 30, 2025
150

Refuse
Collection Transit
Services Services Total

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

Operating (loss) 90,809 $ (286,303) $ (195,494) $
Adjustments to reconcile operating (loss) to
net cash (used in) operating activities:

Depreciation/amortization 15,786 154,104 169,890
Accounts receivable (1,963) 524,346 522,383
Prepaid items and inventories 7 708 715
Deferred outflows - OPEB related 1,067 233 1,300
Deferred outflows -pension related 15,634 (3,933) 11,701 Accounts payable (24,881) 100,120 75,239
Accrued payroll (632) 3,984 3,352
Compensated absences (9,130) 4,564 (4,566)
Aggregate net pension liability (1,573) 20,535 18,962
Total OPEB liability (2,956) (2,021) (4,977)
Deposits payable 8,054 - 8,054
Unearned revenue 14,967 (1,935) 13,032
Deferred inflows - OPEB related (2,947) 13,567 10,620
Deferred inflows - pension related (292) 1,524 1,232
Total adjustments 11,141 815,796 826,937
Net cash provided by (used in) operating activities $ 529,493 101,950 $ 631,443 $ (Concluded)
For the Year Ended June 30, 2025
City of Shafter
Combining Statement of Cash Flows (Continued)
Non-Major Enterprise Funds
151

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152

Internal Service Funds
Building Maintenance Fund - This fund is used to account for the accumulation and allocation of costs associated with the maintenance of the City Hall building.

Liability Coverage Fund - This fund is used to account for the accumulation and allocation of costs associated with risk management.

Vehicle Maintenance Fund - This fund is used to account for the accumulation and allocation of costs associated with the maintenance of the City fleet of vehicles.

Information Technology Fund - This fund is used to account for the costs associated with automation maintenance of the City's various computers, servers and interdepartmental electronic communications. 153

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154

Building Liability Vehicle Information
Maintenance Coverage Maintenance Technology Total
ASSETS
Current assets:

Cash and investments 53,977 $ 1,418 $ 47,335 $ - $ 102,730 $ Total current assets 53,977 1,418 47,335 - 102,730
Noncurrent assets:

Capital assets:

Depreciable, net - - - 530,846 530,846
Total capital assets - - - 530,846 530,846
Total noncurrent assets - - - 530,846 530,846
Total assets 1,418 53,977 47,335 530,846 633,576

DEFERRED OUTFLOW OF RESOURCES
Related to OPEB 2,912 566 1,670 9,592 14,740
Related to pensions 33,647 24,987 52,820 191,702 303,156 Total deferred outflow of resources 25,553 36,559 54,490 201,294 317,896

LIABILITIES
Current liabilities:

Accounts payable 46,649 $ - $ 1,311 $ 16,601 $ 64,561 $ Accrued payroll 3,910 - 3,417 22,787 30,114
Due to other funds - - - 198,937 198,937
Interest payable - - - 925 925
Compensated absences, due within one year 1,450 - 13,914 32,331 47,695 Subscription liability, due within one year - - - 45,782 45,782 Total OPEB liability, due within one year 901 175 517 2,969 4,562 Total current liabilities 52,910 175 19,159 320,332 392,576 Noncurrent liabilities:

Advance from other funds - - - - -
Compensated absences, due in more than one year 3,728 - 27,546 81,470 112,744 Subscription liability, due in more than one year - - - 24,572 24,572 Long-term debt, due in more than one year - - - - -
Total OPEB liability, due in more than one year 8,248 1,602 4,727 27,159 41,736 Aggregate net pension liability 23,297 10,754 36,574 132,738 203,363 Total non-current liabilities 35,273 12,356 68,847 265,939 382,415 Total liabilities 88,183 12,531 88,006 586,271 774,991

DEFERRED INFLOWS OF RESOURCES
Related to OPEB 4,428 860 2,538 14,582 22,408
Related to pensions 17,998 11,465 28,255 102,546 160,264 Related to leases - - - - -
Total deferred inflows of resources 22,426 12,325 30,793 117,128 182,672

NET POSITION
Investment in capital assets (901) (175) (517) 503,305 501,712 Unrestricted (deficit) (19,172) 2,290 (16,457) (474,564) (507,903) Total net position (deficit) $ (20,073) $ 2,115 $ (16,974) $ 28,741 $ (6,191) City of Shafter
Combining Statement of Net Position
All Internal Service Funds
June 30, 2025
155

Building Liability Vehicle Information
Maintenance Coverage Maintenance Technology Total
OPERATING REVENUES:

Charges for services 942,503 $ 1,477,530 $ 293,442 $ 1,430,700 $ 4,144,175 $ Other 5 1,073 - 500 1,578
Total operating revenues 1,478,603 942,508 293,442 1,431,200 4,145,753 OPERATING EXPENSES:

Salaries and wages 125,087 68 143,658 851,718 1,120,531 Administration 334,962 5,395 101,578 158,149 600,084
Contractual 8,005 1,472,601 12,728 61,829 1,555,163
Maintenance and repair 212,545 - 5,111 31,278 248,934
Utilities 202,475 - 4,440 16,389 223,304
Parts and supplies 11,513 - 11,454 282,368 305,335
Depreciation/amortization - - - 135,562 135,562
Total operating expenses 1,478,064 894,587 278,969 1,537,293 4,188,913 OPERATING (LOSS) 539 47,921 14,473 (106,093) (43,160)

NONOPERATING REVENUES
(EXPENSES):

Investment earnings 797 - 801 2,484 4,082
Interest expense - 33 6 (2,077) (2,038)
Total nonoperating
revenues (expenses) 33 797 807 407 2,044
Changes in net position 48,718 572 15,280 (105,686) (41,116) NET POSITION:

Beginning of year, as previously reported (68,597) (641) (21,687) 186,241 95,316 Adjustments (194) 2,184 (10,567) (51,814) (60,391)
Beginning of year, as restated (Note 14) (68,791) 1,543 (32,254) 134,427 34,925 End of year $ (20,073) $ 2,115 $ (16,974) $ 28,741 $ (6,191) City of Shafter
Combining Statement of Revenues, Expenses, and Changes in Net Position All Internal Service Funds
For the Year Ended June 30, 2025
156

Building Liability Vehicle Information
Maintenance Coverage Maintenance Technology Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash receipts from customers 942,508 $ 1,492,966 $ 293,442 $ 1,431,200 $ 4,160,116 $ Cash payments to suppliers (752,099) (1,494,859) (137,205) (530,833) (2,914,996) Cash payments to or on behalf of employees (135,417) (9,026) (132,194) (749,820) (1,026,457) Net cash provided by (used in) operating activities (10,919) 54,992 24,043 150,547 218,663

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Interfund payments (1,812) - (54,009) (38,586) (94,407) Net cash provided by (used in) noncapital
financing activities - (1,812) (54,009) (38,586) (94,407)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets - - - (406,681) (406,681) Principal payments on capital debt - - - (54,654) (54,654) Interest paid on capital debt - 33 6 (4,978) (4,939)
Net cash provided by (used in) capital and
related financing activities 33 - 6 (466,313) (466,274) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings 797 - 801 2,484 4,082
Net cash provided by investing activities - 797 801 2,484 4,082 Net increase (decrease) in cash and cash equivalents (10,886) 53,977 (29,159) (351,868) (337,936) CASH AND CASH EQUIVALENTS:

Beginning of year - 12,304 76,494 351,868 440,666
End of year 53,977 $ 1,418 $ 47,335 $ - $ 102,730 $

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

Operating (loss) $ 47,921 $ 539 $ 14,473 $ (106,093) $ (43,160) Adjustments to reconcile operating (loss) to net cash
provided by (used in) operating activities:

Depreciation/amortization - - 135,562 - 135,562
Accounts receivable 14,363 - - 14,363 -
Lease receivable - - - - -
Prepaid items and inventories 8,542 - 141 2,815 11,498
Deferred outflows - OPEB related 106 1,394 572 4,962 7,034 Deferred outflows -pension related (20,553) (11,952) 1 73,650 41,146 Accounts payable 8,860 (16,863) (2,034) 16,364 6,327
Accrued payroll 725 (1,837) 29 5,402 4,319
Compensated absences 1,565 (5,006) (4,182) 34,025 26,402 Aggregate net pension liability 5,651 16,998 - 5,633 28,282 Total OPEB liability 1,137 (3,032) (2,110) (17,588) (21,593) Deposits payable - - - - -
Unearned revenue - - - - -
Deferred inflows - OPEB related (1,194) 12,006 - (2,958) 7,854 Deferred inflows - pension related 2,232 (478) 102 (1,227) 629 Deferred inflows - Leases - - - - -
Total adjustments 7,071 (11,458) 9,570 256,640 261,823
Net cash provided by (used in) operating activities $ 54,992 $ (10,919) $ 24,043 $ 150,547 $ 218,663 City of Shafter
Combining Statement of Cash Flows
All Internal Service Funds
For the Year Ended June 30, 2025
157

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158

STATISTICAL SECTION
(UNAUDITED)
159

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160

Contents Page
1 Net Position by Component 162
2 Changes in Net Position 164
3 Governmental Activities Tax Revenue by Source 168
4 Governmental Activities Sales Tax Revenues by Business Category 169 5 Fund Balances of Governmental Funds 170
6 Changes in Fund Balances of Governmental Funds 172
7 General Governmental Revenues by Source 174
8 Assessed Value of Taxable Property 175
9 Direct and Overlapping Property Tax Rates 175
10 Principal Property Taxpayers 178
11 Property Tax Levies and Collections 179
12 Ratios of Outstanding Debt by Type 180
13 Historical and Overlapping Debt 181
14 Direct and Overlapping Debt 182
15 Demographic and Economic Statistics 183
16 Principal Employers 184
17 Full-time and Part-time City Employees Funded by Function 185 18 Operating Indicators by Function 186
19 Capital Assets Statistics by Function 188
Operating Information - These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules was derived from the City's comprehensive annual financial reports for the relevant year.

STATISTICAL SECTION
(Unaudited)
This part of the City of Shafter's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.

Financial Trends - These schedules contain information to help the reader to understand how the City's financial performance and well-being have changed over time.

Revenue Capacity - These schedules contain information to help the reader assess the City's property tax.

Debt Capacity - These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.

Demographic and Economic Information - These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. 161

2016 2017 2018 2019 2020
Governmental activities:

Net investment in capital assets $ 29,611,048 $ 23,168,573 $ 24,858,194 $ 32,365,663 $ 28,413,250 Restricted 8,033,789 993,526 6,352,954 7,547,228 7,194,403 Unrestricted 67,966,535 51,122,765 58,480,562 62,563,324 62,689,600 Total governmental activities $ 105,611,372 $ 75,284,864 $ 89,691,710 $ 102,476,215 $ 98,297,253 Business-type activities:

Net investment in capital assets $ 45,885,714 $ 46,783,879 $ 49,015,719 $ 49,475,583 $ 52,032,825 Restricted - - - - -
Unrestricted (deficit) (2,124,745) (6,401,622) (41,026) 1,276,100 547,708 Total business-type activities $ 43,760,969 $ 40,382,257 $ 48,974,693 $ 50,751,683 $ 52,580,533 Primary government:

Net investment in capital assets $ 75,496,762 $ 76,089,267 $ 79,607,499 $ 89,427,684 $ 95,217,045 Restricted 8,033,789 8,968,882 10,736,419 12,846,282 9,708,578 Unrestricted 65,841,790 67,179,252 65,796,359 65,883,414 70,348,734 Total primary government net position $ 149,372,341 $ 152,237,401 $ 156,140,277 $ 168,157,380 $ 175,274,357 (Continued)
Fiscal Year
City of Shafter
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
162

2021 2022 2023 2024 2025
Governmental activities:

Net investment in capital assets $ 44,475,566 $ 50,263,552 $ 50,504,240 $ 58,333,348 $ 62,512,010 Restricted 12,674,126 16,868,739 16,868,739 30,091,125 36,713,785 Unrestricted 76,928,223 90,338,740 90,338,740 97,718,754 107,334,803 Total governmental activities $ 134,077,915 $ 157,471,031 $ 157,711,719 $ 186,143,227 $ 206,560,598 Business-type activities:

Net investment in capital assets $ 52,007,797 $ 45,200,303 $ 45,200,303 $ 45,564,607 $ 47,272,138 Restricted - - - - -
Unrestricted (deficit) (488,595) 5,283,253 5,283,253 639,881 (512,958) Total business-type activities $ 51,519,202 $ 50,483,556 $ 50,483,556 $ 46,204,488 $ 46,759,180 Primary government:

Net investment in capital assets $ 96,483,363 $ 95,463,855 $ 95,704,543 $ 103,897,955 $ 109,784,148 Restricted 12,674,126 16,868,739 16,868,739 30,091,125 36,713,785 Unrestricted 76,439,628 95,621,993 95,621,993 98,358,635 106,821,845 Total primary government net position $ 185,597,117 $ 207,954,587 $ 208,195,275 $ 232,347,715 $ 253,319,778 (Concluded)
Fiscal Year
City of Shafter
Net Position by Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
163

2016 2017 2018 2019 2020
Expenses:

Governmental Activities:

General government $ 11,956,687 13,149,940 $ 13,874,474 $ 14,252,931 $ 18,153,345 $ Public safety 6,204,114 4,958,937 5,864,836 6,147,990 7,233,609 Fire 244,982 292,406 - - -
Public works 4,063,021 4,443,142 4,431,680 4,706,558 4,967,919 Culture & recreation 1,009,002 1,217,965 1,197,934 1,219,642 1,237,182 Interest on long-term debt - - - - -
Total governmental activities expenses 23,425,882 24,114,314 25,368,924 26,327,121 31,592,055 Business-type activities:

Water services 3,481,988 3,458,616 3,879,784 3,963,562 4,799,662 Wastewater services 2,149,564 2,085,894 2,489,418 2,374,999 2,472,967 Rail spur services 453,795 496,134 469,309 522,698 479,847 Fiber optic and communication tower 303,043 354,832 320,432 375,556 359,335 Modified community correctional facility operations 16,001,708 16,799,773 17,079,707 14,766,071 15,653,274 Modified community correctional facility COP 613,376 - - - - Refuse collection services 1,151,779 1,200,421 972,840 1,012,346 1,156,643 Transit services 313,136 347,624 389,616 403,708 388,791 Total business-type activities expenses 24,404,719 24,806,964 25,601,106 23,418,940 25,310,519 Total primary government expenses 48,921,278 47,830,601 50,970,030 49,746,061 56,902,574 Program Revenues:

Governmental Activities:

Charges for services
General government $ 6,857,466 6,759,926 $ 6,728,390 $ 4,415,751 $ 7,243,754 $ Public safety 161,313 760,305 406,321 1,678,707 431,338 Public works 3,112,912 2,630,967 3,603,483 4,495,996 407,755 Culture & recreation 46,168 14,896 13,848 30,402 -
Operating grants and contributions 25,142 165,034 164,966 164,296 259,700 Capital grants and contributions 1,386,698 1,913,148 1,139,320 1,881,146 3,721,835 Total governmental activities 11,492,159 12,341,816 12,056,328 12,666,298 12,064,382 Business-type activities:

Charges for services:

Water services 3,198,827 3,141,346 3,698,790 4,436,026 4,343,041 Wastewater services 1,640,635 1,514,281 1,798,535 2,021,085 1,985,144 Rail spur services 318,785 27,250 188,840 120,915 24,720 Fiber optic and communication tower 120,617 132,028 134,078 148,802 159,531 Modified community corrections facility 13,855,918 13,735,074 14,205,083 14,105,693 13,359,775 Modified community corrections facility COP - - - - -
Refuse collection services 1,166,075 1,163,476 1,061,137 1,047,175 1,041,957 Transit services 53,801 56,807 58,829 57,568 40,029
Operating grants and contributions 151,627 287,396 190,141 267,172 424,344 Capital grants and contributions 388,979 91,846 118,749 125,611 - Total business-type activities program revenues 20,648,066 20,396,702 21,454,182 22,330,047 21,378,541 Total primary government program revenues $ 32,738,518 32,140,225 $ 33,510,510 $ 34,996,345 $ 33,442,923 $ (Continued)
Fiscal Year
City of Shafter
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
164

2021 2022 2023 2024 2025
Expenses:

Governmental Activities:

General government $ 14,162,171 18,593,802 $ 23,644,884 $ 9,592,447 $ 12,757,653 $ Public safety 3,831,549 8,477,288 12,423,683 10,013,521 12,548,862 Fire - - - - -
Public works 6,677,328 5,138,132 10,366,240 10,349,042 8,381,690 Culture & recreation 659,182 (1,099,921) 2,101,829 841,661 870,381 Interest on long-term debt - - 329 - 21,727
Total governmental activities expenses 34,407,600 22,031,931 48,536,965 30,796,671 34,580,313 Business-type activities:

Water 4,276,541 4,482,734 6,522,566 6,951,784 7,313,136 Wastewater 2,016,122 2,620,461 2,933,128 3,156,877 3,408,601 Rail spur services 453,041 381,854 364,887 358,057 317,143 Fiber optic & communication tower 265,723 351,850 332,492 439,286 349,826 Modified community correctional facility operations 5,486,922 459,861 - - - Modified community correctional facility COP - - - - -
Refuse collection services 1,366,704 941,354 2,119,740 1,991,900 2,106,348 Transit services 455,275 247,316 577,264 688,387 821,675 Total business-type activities expenses 15,130,860 8,674,898 12,850,077 13,586,291 14,316,729 Total primary government expenses 30,706,829 49,538,460 61,387,042 44,382,962 48,897,042 Program Revenues:

Governmental Activities:

Charges for services
General government $ 7,016,970 9,745,034 $ 9,308,197 $ 8,306,233 $ 13,225,141 $ Public safety 134,619 122,308 1,058,668 873,519 145,519 Public works 1,148,514 2,711,537 683,710 101,535 862,390 Culture & recreation - - - - -
Operating grants and contributions 1,261,559 197,041 6,475,555 3,395,561 2,342,657 Capital grants and contributions 4,512,359 2,980,928 7,294,313 3,692,457 6,885,554 Total governmental activities 16,802,085 13,028,784 24,820,443 16,369,305 23,461,261 Business-type activities:

Charges for services:

Water 5,037,773 4,918,463 5,544,092 5,303,938 5,553,568 Wastewater 2,415,468 2,366,344 2,463,592 2,598,268 2,728,402 Rail spur Services 900 - - - -
Fiber Optic & communication tower Services 174,565 292,451 394,239 343,823 227,490 Modified community corrections facility - 3,998,498 - - - Modified community corrections facility COP - - - - -
Refuse collection services 1,228,478 1,410,767 1,619,575 1,948,635 2,195,827 Transit services 21,591 39,924 44,459 403,064 261,960
Operating grants and contributions 5,366 67,220 322,899 670,514 546,112 Capital grants and contributions 387,384 525,694 33,847 5,000 - Total business-type activities program revenues 13,101,589 9,789,297 10,422,703 11,273,242 11,513,359 Total primary government program revenues $ 22,818,081 29,903,674 $ 35,243,146 $ 27,642,547 $ 34,974,620 $ (Continued)
Fiscal Year
City of Shafter
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
165

2016 2017 2018 2019 2020
Net Revenues (Expense):

Governmental activities $ (11,933,723) $ (11,772,498) $ (13,312,596) $ (13,660,823) $ (19,527,673) Business-type activities (3,756,653) (4,410,262) (4,146,924) (1,088,893) (3,931,978) Total primary government net expense (15,690,376) (16,182,760) (17,459,520) (14,749,716) (23,459,651) General Revenues and Other Changes in Net Position:

Governmental activities:

Taxes:

Property taxes 1,296,584 1,499,108 1,670,464 1,788,640 1,943,805 Sales taxes 14,978,921 14,300,406 15,869,586 18,692,355 22,417,415 Gas tax 368,069 325,586 451,407 769,842 -
Franchise tax - - - 785,221 -
Other taxes 84,569 189,815 142,920 (88,866) 92,230
Motor vehicle in lieu, unrestricted 1,855,958 2,099,610 2,047,646 2,222,405 2,449,731 Investment earnings 1,142,751 855,702 665,212 3,098,836 2,410,215 Other general revenues 642,270 66,363 413,675 72,157 30,977 Extraordinary gain/(loss) - - - - -
Special Items gain/(loss) - - - - -
Transfers (1,121,280) (978,556) (12,637,878) (2,649,351) (5,313,794) Total government activities 19,247,842 18,358,034 8,623,032 23,906,018 24,815,800 Business-type activities:

Investment earnings 47,663 18,395 18,923 122,599 155,272 Other general revenues 82,925 85,303 82,559 93,933 294,762 Extraordinary Gain/(Loss) - - - - -
Transfers 1,121,280 978,556 12,637,878 2,649,351 5,313,794 Total business-type activities 1,251,868 1,082,254 12,739,360 2,865,883 5,763,828 Total primary government 19,440,288 20,499,710 21,362,392 26,771,901 30,579,628 Changes in net position
Governmental activities 7,314,119 6,585,536 (4,689,564) 10,245,195 5,288,127 Business-type activities (2,504,785) (3,328,008) 8,592,436 1,776,990 1,831,850 Total primary government $ 3,257,528 4,809,334 $ 3,902,872 $ 12,022,185 $ 7,119,977 $ (Continued)
Fiscal Year
City of Shafter
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
166

2021 2022 2023 2024 2025
Net Revenues (Expense):

Governmental activities $ (17,605,515) $ (9,003,147) $ (23,716,522) $ (15,071,468) $ (11,119,052) Business-type activities (2,029,271) 1,114,399 (2,427,374) (2,837,395) (2,803,370) Total primary government net expense (19,634,786) (7,888,748) (26,143,896) (17,908,863) (13,922,422) General Revenues and Other Changes in Net Position:

Governmental activities:

Taxes:

Property taxes 2,336,157 2,545,919 2,901,610 3,330,397 3,811,932 Sales taxes 22,014,895 23,647,976 25,136,604 18,852,252 16,439,791 Gas tax - - - - -
Franchise tax 903,471 1,105,290 1,281,802 2,008,528 1,750,482 Other taxes 94,632 108,562 111,561 95,844 211,044
Motor vehicle in lieu, unrestricted 2,835,678 3,069,166 3,954,781 4,427,286 4,859,115 Investment earnings 561,277 (119,850) 1,492,550 4,543,138 7,127,999 Other general revenues 4,975 74,662 9,243 50,516 4,777
Extraordinary gain/(loss) 3,688,708 - - - -
Special Items gain/(loss) 788,700 - - 1,170 -
Transfers (21,604) (1,724,170) (47,323) (689,785) (2,498,143) Total government activities 29,518,181 32,396,263 34,840,828 32,619,346 31,706,997 Business-type activities:

Investment earnings 75,978 (163,334) (55,444) 75,481 176,347 Other general revenues 418,290 41,908 94,275 157,569 314,598 Extraordinary Gain/(Loss) (3,743,612) - (23,288) - -
Transfers 21,604 1,724,170 47,323 689,785 2,498,143
Total business-type activities 515,872 (2,140,868) 62,866 922,835 2,989,088 Total primary government 30,255,395 30,034,053 34,903,694 33,542,181 34,696,085 Changes in net position
Governmental activities 11,912,666 23,393,116 11,124,306 17,547,878 20,587,945 Business-type activities (1,513,399) (1,026,469) (2,364,508) (1,914,560) 185,718 Total primary government $ 22,366,647 10,399,267 $ 8,759,798 $ 15,633,318 $ 20,773,663 $ (Concluded)
Fiscal Year
City of Shafter
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
167

Sales Other Taxes Unrestricted
Fiscal Property and Use Gas & Franchise Motor Vehicle
Year Tax Tax Tax Fees License Taxes Total
2015-16 $ 1,296,584 $ 14,978,921 $ 368,069 $ 403,059 $ 1,855,958 $ 18,902,591 2016-17 1,499,108 14,300,406 325,586 462,268 2,099,610 18,686,978 2017-18 1,670,464 15,869,586 451,407 537,499 2,047,646 20,576,602 2018-19 1,788,640 18,692,355 769,842 62,034 2,222,405 23,535,276 2019-20 1,943,805 22,417,415 - 877,451 2,449,731 27,688,402 2020-21 2,309,754 22,014,895 - 1,039,499 2,820,686 28,184,834 2021-22 2,514,862 23,647,976 - 1,244,908 3,069,166 30,476,912 2022-23 2,823,561 25,136,604 - 1,492,411 3,933,782 33,386,358 2023-24 3,259,876 18,852,252 - 2,201,225 4,400,954 28,714,307 2024-25 3,811,932 16,439,791 - 1,961,526 4,859,115 27,072,364 Source: City of Shafter
City of Shafter
Last Ten Fiscal Years
(accrual basis of accounting)
Governmental Activities Tax Revenues by Source
168

Fiscal Business General Food Year over Year
Year to Business Transportation Retail Products Construction County Pool Total Change 2015-16 2,058,564 $ 617,571 $ $ 5,321,565 $ 317,892 $ 4,898,703 $ 1,772,878 $ 0.58% 14,987,173 2016-17 1,448,082 574,277 5,537,588 316,351 4,715,817 1,896,780 14,488,894 -3.32% 2017-18 2,353,676 626,303 6,047,193 286,617 5,523,905 1,994,392 16,832,085 16.17% 2018-19 2,497,396 642,122 6,894,623 286,077 5,945,805 2,495,792 18,761,814 11.46% 2019-20 1,960,291 618,098 7,746,187 268,191 5,544,568 2,761,516 18,898,851 0.73% 2020-21 1,004,530 673,654 10,014,844 411,927 5,956,186 3,715,397 21,776,539 15.23% 2021-22 1,228,430 924,807 11,082,819 310,951 6,031,670 4,089,912 23,668,590 8.69% 2022-23 1,794,689 998,237 12,522,093 329,650 5,390,038 4,101,897 25,136,604 6.20% 2023-24 1,509,022 989,841 15,133,729 358,016 4,161,216 3,938,924 26,090,748 3.80% 2024-25 1,334,509 964,310 14,337,674 384,258 3,655,126 3,976,702 24,652,578 -5.51% Sales tax is based on the gross 1% local Bradly Burns Sales and Use Tax.

Direct allocations only and do not include state-wide and county-wide pools.

Source: City of Shafter, MuniServices, LLC.

City of Shafter
Last Ten Fiscal Years
(accrual basis of accounting)
Governmental Activities Sales Tax Revenues by Business Category 169

2016 2017 2018 2019 2020
General Fund:

Nonspendable $ 335,734 $ 1,437,038 $ 1,370,550 $ 1,356,170 $ 1,343,814 Assigned 37,501,707 42,138,208 40,681,889 32,265,562 34,542,535 Unassigned 22,850,298 21,722,000 13,111,861 17,809,130 20,105,952 Total general fund $ 60,687,739 $ 65,297,246 $ 55,164,300 $ 51,430,862 $ 55,992,301 All other governmental funds:

Nonspendable 1,555,460 $ 1,555,460 $ - $ - $ - $
Restricted 6,878,911 7,993,314 10,736,419 12,846,282 9,708,578 Assigned 7,784,159 8,922,341 8,671,160 11,064,055 12,702,113 Unassigned (deficit) (313,514) - - - (16,540)
Total all other governmental funds $ 15,905,016 $ 18,471,115 $ 19,407,579 $ 23,910,337 $ 22,394,151 Fund Balances of Governmental Funds
City of Shafter
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
170

2021 2022 2023 2024 2025
General Fund:

Nonspendable $ 1,286,270 $ 1,272,409 $ 1,132,650 $ 1,058,229 $ 745,013 Assigned 36,986,070 38,076,932 41,103,724 46,120,818 50,675,982 Unassigned 21,746,015 19,915,650 25,157,220 30,793,501 36,351,863 Total general fund $ 60,018,355 $ 59,264,991 $ 67,393,594 $ 77,972,548 $ 87,772,858 All other governmental funds:

Nonspendable - $ - $ 3,235 $ 837 $ - $
Restricted 12,674,126 16,868,739 27,932,770 30,091,125 35,398,781 Assigned 15,821,374 14,097,850 17,454,676 20,633,302 24,798,316 Unassigned (deficit) (8,951) (36,433) (530,064) (1,742,360) (371,166) Total all other governmental funds $ 28,486,549 $ 30,930,156 $ 44,860,617 $ 48,982,904 $ 59,825,931 Fiscal Year
City of Shafter
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
171

2016 2017 2018 2019 2020
Revenues:

Property taxes $ 1,530,566 $ 1,985,530 $ 2,120,395 $ 2,264,943 $ 2,503,442 Property tax in lieu of VLF 1,855,958 2,099,610 2,047,646 2,222,405 2,449,731 Other taxes 16,047,199 16,239,813 17,186,233 20,424,376 24,968,801 Licenses, permits and fees 3,102,903 3,190,405 3,812,988 5,969,293 4,797,163 Fines, forfeitures and penalties 33,019 57,879 41,750 30,195 53,365 Investment earnings 1,457,881 1,142,416 1,012,254 3,462,138 2,448,254 Lease revenue - - - 322,631 -
Intergovernmental 491,873 645,350 565,438 979,428 1,808,311 Charges for services 6,402,917 6,251,040 6,116,859 3,796,732 2,715,151 Other 642,270 66,363 413,675 72,157 127,127
Total revenues $ 31,564,586 $ 31,678,406 $ 33,317,238 $ 39,221,667 $ 42,193,976 Expenditures:

Current:

General government $ 12,801,949 $ 11,662,684 $ 16,969,395 $ 13,811,448 $ 17,567,544 Public safety 5,114,334 6,041,656 5,622,796 5,885,692 6,464,485 Public works 2,786,169 2,988,119 3,059,487 3,374,188 3,463,367 Culture & recreation 795,307 953,518 881,622 915,189 896,334 Capital outlay 3,591,448 1,878,267 3,171,661 11,816,479 6,265,216 Debt Service:

Principal - - - - -
Interest - - - - -
Total expenditures $ 25,089,207 $ 23,524,244 $ 29,704,961 $ 35,802,996 $ 34,656,946 (under) expenditures $ 6,475,379 $ 8,154,162 $ 3,612,277 $ 3,418,671 $ 7,537,030 Other financing sources (uses):

Transfers in $ 780,544 $ 256,388 $ 396,286 $ 343,915 $ 568,195 Transfers out (1,691,699) (1,234,944) (13,205,044) (2,993,266) (5,881,988) Extraordinary gain/(loss) - - - - -
Special items gain/(loss) - - - - -
Proceeds from sale of capital assets - - - - -
Total other financing sources (uses) (911,155) (978,556) (12,808,758) (2,649,351) (5,313,793) Net change in fund balances $ 7,175,606 5,564,224 $ (9,196,481) $ 769,320 $ 2,223,237 $

0.00% 0.00% 0.00% 0.00% 0.00%
(Continued)
Fiscal Year
City of Shafter
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(accrual basis of accounting)
Debt service as a percentage of noncapital
expenditures
172

2021 2022 2023 2024 2025
Revenues:

Property taxes $ 3,042,383 $ 3,537,685 $ 2,901,610 $ 3,330,397 $ 4,992,850 Property tax in lieu of VLF 2,820,686 2,820,686 3,933,782 4,400,954 4,859,115 Other taxes 23,824,480 25,737,938 27,488,102 22,068,257 19,534,732 Licenses, permits and fees 8,885,156 5,729,984 8,367,730 6,300,084 13,333,471 Fines, forfeitures and penalties 151,151 94,564 94,490 70,913 75,698 Investment earnings 581,939 (84,256) 1,531,848 6,257,432 7,424,338 Lease revenue 302,332 302,332 500,237 - -
Intergovernmental 3,033,340 3,069,353 10,380,089 8,626,657 3,950,689 Charges for services 1,444,044 1,222,654 2,018,985 2,266,563 2,144,869 Other 229,797 100,173 981,592 1,072,023 39,210
Total revenues $ 44,315,308 $ 42,531,113 $ 58,198,465 $ 54,393,280 $ 56,354,972 Expenditures:

Current:

General government $ 18,200,283 $ 20,485,110 $ 18,467,971 $ 9,097,268 $ 9,829,033 Public safety 7,461,897 7,654,419 7,882,558 9,776,986 11,907,093 Public works 4,390,489 4,860,155 5,395,752 6,534,245 6,822,957 Culture & recreation 257,135 274,058 264,395 259,616 187,477 Capital outlay 3,777,660 3,139,363 4,629,601 10,024,345 9,101,717 Debt Service:

Principal - - - 134,616 -
Interest - - - - 12,771
Total expenditures $ 34,087,464 $ 36,413,105 $ 36,792,439 $ 35,846,382 $ 37,995,664 (under) expenditures $ 10,227,844 $ 6,118,008 $ 21,406,026 $ 18,546,898 $ 18,359,308 Other financing sources (uses):

Transfers in $ 199,246 $ 3,677,637 $ 933,872 $ 1,817,242 $ 350,697 Transfers out (220,850) (5,438,121) (981,470) (2,619,929) (2,848,840) Extraordinary gain/(loss) (2,667,281) - - - -
Special items gain/(loss) - 709,636 - 44,142 -
Proceeds from sale of capital assets 788,700 - - 1,170 1,685,191 Total other financing sources (uses) 767,096 (4,427,765) 662,038 (757,375) (812,952) Net change in fund balances $ 1,690,243 10,994,940 $ 22,068,064 $ 17,789,523 $ 17,546,356 $

0.00% 0.00% 0.00% 0.00% 0.51%
(Concluded)
Debt services as a percentage of noncapital
expenditures
Fiscal Year
City of Shafter
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years
(accrual basis of accounting)
173

Fines Use of
Licenses Forfeitures Money Inter- Charges Total
Fiscal Permits and and governmental for Other Governmental Year Taxes and Fees Penalties Property Revenue Services Revenues Revenues 2015-16 19,433,723 $ 3,102,903 $ 33,019$ $ 1,457,881 $ 491,873 $ 6,402,917 642,270$ $ 31,564,586 2016-17 20,324,953 3,190,405 57,879 1,142,416 645,350 6,251,040 66,363 31,678,406 2017-18 21,354,274 3,812,988 41,750 1,012,254 565,438 6,116,859 413,675 33,317,238 2018-19 24,911,724 5,969,293 30,195 3,462,138 979,428 3,796,732 72,157 39,221,667 2019-20 29,921,974 4,797,163 53,365 2,448,254 1,808,311 2,715,151 449,758 42,193,976 2020-21 29,687,549 8,885,156 151,151 884,271 3,033,340 1,444,044 229,797 44,315,308 2021-22 32,096,309 5,729,984 94,564 218,076 3,069,353 1,222,654 100,173 42,531,113 2022-23 35,266,008 8,367,730 94,490 2,032,085 10,380,089 2,018,985 39,078 58,198,465 2023-24 30,731,205 6,688,371 70,913 4,015,741 8,646,362 3,722,035 42,884 53,917,511 2024-25 29,386,697 13,333,471 75,698 7,424,338 3,950,689 2,144,869 39,210 56,354,972 Source: City of Shafter
City of Shafter
All Governmental Funds
(modified accrual basis of accounting)
Last Ten Fiscal Years
General Governmental Revenues By Source
174

Fiscal Year Taxable Taxable Total
Ended Assessed Assessed Direct Tax
June 30 Secured Unsecured Value Secured Unsecured Utility Value Rate 2015-16 898,906 $ $ 99,515 $ 998,421 $ 284,331 56,002$ 1,281$ 341,614$ 3.420% 2016-17 1,065,208 75,586 1,140,794 315,372 75,772 1,382 392,526 3.290% 2017-18 1,204,353 56,071 1,260,424 321,755 66,586 1,382 389,723 3.100% 2018-19 1,283,375 70,134 1,353,509 332,611 62,976 1,382 396,969 3.590% 2019-20 1,421,154 79,946 1,501,100 354,961 69,806 1,382 426,150 2.502% 2020-21 1,663,286 76,955 1,740,241 363,184 71,016 1,264 435,464 2.510% 2021-22 1,838,516 74,720 1,913,236 383,633 70,294 1,264 455,191 1.171% 2022-23 2,257,331 307,168 2,564,499 399,243 72,981 1,264 473,488 1.155% 2023-24 2,543,968 340,491 2,884,459 435,700 75,068 1,264 512,032 1.155% 2024-25 2,859,209 349,421 3,208,630 452,365 88,647 2,066 543,078 1.165% City of Shafter
Assessed Value of Taxable Property
Last Ten Fiscal Years
(In Thousands)
City Redevelopment Agency
MuniServices, LLC / Neumo
Source: Kern County Assessor Data
175

2016 2017 2018 2019 2020
Overlapping Tax & Assessment
Debt: Shafter Allocation Factor
Kern County High School 1.696 1.167 2.417 2.425 2.443
Kern County Community College COP 1.094 1.848 - - -
Richland School District 53.494 52.914 54.167 52.135 53.543 Rio Bravo-Greeley School District 1.103 1.419 3.520 6.566 9.352 Rosedale Union School District 3.834 4.420 4.895 - -
Norris School District 1.689 1.111 1.091 1.086 1.059
City of Shafter - 1915 Act Bonds 100.000 100.000 100.000 100.000 100.000 Kern Community College Assessment District 1.186 1.264 1.464 1.442 1.469 Kern Community College Assessment District No. 1 -----
Total Assessment Rate 1.830 1.700 1.680 1.630 1.520
Direct and Overlapping General Fund
Debt: Shafter Allocation Factor
Kern County COP 0.975 1.018 1.282 1.291 1.308
Kern County Pension Obligations 0.975 1.018 1.282 1.291 1.308 Kern County Board of Education COP 0.975 1.018 1.282 1.291 1.308 Kern County Community College COP 0.968 1.035 1.315 1.304 1.332 Kern County Community College Benefit
Obligations 0.968 1.035 1.315 1.304 1.332
Kern High School COP 1.696 1.848 2.417 2.425 2.443
Rio Bravo-Greedley Union School District
Obligations 1.103 1.410 3.502 6.566 9.352
Kern County Public Cemetary District COP -----
City of Shafter -----
Total Direct & Overlapping Rate 3.660 3.390 4.000 3.830 3.500 Overlapping Tax Increment Debt (Successor Agency) 100.000 100.000 100.000 100.000 100.000 (Continued)
Source: MuniServices, LLC. / Neumo
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of the Example Unified School District bonds.

City of Shafter
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Ten Fiscal Years
Fiscal Year
176

2021 2022 2023 2024 2025
Overlapping Tax & Assessment
Debt: Shafter Allocation Factor
Kern County High School 3.573 3.787 4.407 4.547 4.856
Kern County Community College COP - - - - -
Richland School District 64.266 65.505 65.619 66.784 67.507 Rio Bravo-Greeley School District 23.576 24.725 33.930 33.746 35.245 Rosedale Union School District - - - - -
Norris School District 6.708 8.059 10.124 12.077 14.023 City of Shafter - 1915 Act Bonds 100.000 100.000 100.000 100.000 100.000 Kern Community College Assessment District 2.286 2.427 2.837 2.956 3.150 Kern Community College Assessment District No. 1 2.272 2.412 2.82 2.938 3.131 Total Assessment Rate 1.630 1.570 1.490 1.480 1.360
Direct and Overlapping General Fund
Debt: Shafter Allocation Factor
Kern County COP 2.223 2.397 2.754 2.877 3.111
Kern County Pension Obligations 2.223 2.397 2.754 2.877 3.111 Kern County Board of Education COP 2.223 2.397 2.754 2.877 3.111 Kern County Community College COP 2.050 2.173 2.542 2.648 2.817 Kern County Community College Benefit
Obligations 2.050 2.173 2.542 2.648 2.817
Kern High School COP - - - - -
Rio Bravo-Greedley Union School District
Obligations 23.576 24.725 33.930 33.746 35.245
Kern County Public Cemetary District COP -
City of Shafter 100.000 100.000 100.000 100.000 100.000 Total Direct & Overlapping Rate 2.510 2.370 2.100 2.000 1.820 Overlapping Tax Increment Debt (Successor Agency) 100.000 100.000 100.000 100.000 100.000 (Concluded)
Source: MuniServices, LLC. / Neumo
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of the Example Unified School District bonds.

Fiscal Year
City of Shafter
Direct and Overlapping Property Tax Rates (Continued)
(Rate per $100 of assessed value)
Last Ten Fiscal Years
177

Taxpayer Taxable Value City Taxable Taxable Value Total City Ross Dress For Less Inc. 299,861,046 $ 7.99% 72,584,571 $ 5.42% Amazon.Com Services LLC 250,968,128 6.69%
Walmart Stores East Lp 228,308,800 6.09%
4500 Express Ave Prop LLC 215,693,175 5.75%
Wonderful Real Estate Dev LLC 177,453,059 4.73%
4000 Fanucchi Way Prop LLC 159,172,077 4.24%
Target Corporation 136,302,316 3.63% 123,508,842 9.22%
Rexco Shafter LLC 68,560,755 1.83%
Lennar Homes Of California Inc. 66,317,451 1.77% 29,924,111 2.23% Paramount Logistics Park 141 LLC 59,494,044 1.59% 27,917,756 2.08% Bidart Bros Inc. 58,450,991 1.56% 43,021,679 3.21%
Elk Corporation of Texas 42,373,878 1.13% 38,057,285 2.84% Garlic Company 39,791,609 1.06% 22,153,799 1.65%
Grimmway Enterprises Inc. 39,593,524 1.06% 18,994,871 1.42% Kenneth O'Lester Co Inc. 30,631,256 0.82% 8,534,823 0.64% Farmland Reserve Inc. 28,566,540 0.76%
Mariner Ave Prop LLC 26,356,870 0.70%
Pacific Parks Lofts Lp 25,489,800 0.68%
Golden West BF Lp 22,645,033 0.60%
Seventh Standard Lp 21,743,844 0.58%
Grapery Inc. 21,388,396 0.57% 7,041,750 0.53%
Building Materials Manufacturing Corp 18,849,417 0.50% 19,126,834 1.43% Baker Hughes Oilfield Operations Inc. 13,826,264 0.37% 56,580,128 4.22% Edwards Tad William & Kimberley Joy 12,483,996 0.33%
GMC Roofing & Bldg Paper Products Inc. 10,534,719 0.28% 6,039,970 0.45% Vintage Production Cal LLC 4.86% 65,118,230
Roll Real Est Dev LLC 3.65% 48,881,164
BJ Serv Co USA 3.34% 44,790,509
Paramount Land Company LLC 1.91% 25,586,050
Weatherford Artificial Lift Systems 0.96% 12,905,919
Sill Properties 0.67% 8,976,202
Calif Paper Products LLC 0.55% 7,395,679
Tryad Service Corp 0.51% 6,825,086
Scannell Prop 183 LLC 0.48% 6,432,000
Agreserve Inc. 0.39% 5,236,802
A L Good Living Trust UAD 0.39% 5,178,372
37 Shafter RiteAid LLC 0.38% 5,101,898
Total Top 25 Taxpayers 2,074,856,988 $ 55.31% $ 715,914,330 53.43% Total Taxable Value $ 3,751,039,279 100.00% $ 1,340,035,141 100.00% MuniServices, LLC / Neumo
Source: Kern County Assessor Data;
City of Shafter
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
2025 2016
178

Taxes Levied
Fiscal for the Collections in
Year Ended Fiscal Year Total Percent Subsequent Percent June 30 (Original Levy) Adjustments Adjusted Levy Amount of Levy Years Amount of Levy 2016 $ 1,158,634 $ 13,788 $ 1,172,421 $ 1,155,301 98.54% 10,250 $ 1,165,551 99.41% 2017 1,290,938 59,919 1,350,857 1,343,064 99.42% 7,494 1,350,558 99.98% 2018 1,528,966 28,699 1,557,665 1,537,674 98.72% 13,298 1,550,972 99.57% 2019 1,635,697 9,711 1,645,408 1,622,400 98.60% - 1,622,400 98.60% 2020 1,629,581 (50,508) 1,579,073 1,552,960 98.35% - 1,552,960 98.35% 2021 1,990,346 75,000 2,065,346 2,061,912 99.83% - 2,061,912 99.83% 2022 2,152,359 35,620 2,187,979 2,183,949 99.82% - 2,183,949 99.82% 2023 2,760,614 (225,257) 2,535,357 2,501,026 98.65% 35,837 2,536,863 100.06% 2024 3,106,397 (132,634) 2,973,763 2,976,481 100.09% 25,598 3,002,079 100.95% 2025 3,418,487 41,809 3,460,296 3,422,726 98.91% 37,733 3,460,459 100.00% NOTE:

The amounts presented include City property taxes.

Allocation of "Collections in Subsequent Years" are based on actual prior levy collections allocated between levy years based on an estimate.

Source: Kern County Auditor Controller's Office
Fiscal Year of Levy Total Collections to Date
Last Ten Fiscal Years
Property Tax Levies and Collections
City of Shafter
Collected within the
179

Fiscal
Year Total Sales and Wastewater Total Total Percentage Debt Ended Governmental Loan Revenue Business-type Primary of Personal Per June 30 SBITAs Activities Agreements Bonds SBITAs Activities Government Income Capita 2016 - $ $ 1,524,142 - $ $ 458,689 -$ 1,982,831 $ $ 1,982,831 0.22% 110 2017 - 1,220,494 - 398,694 - 1,619,188 1,619,188 0.16% 86 2018 - - 908,208 337,848 - 1,246,056 1,246,056 0.12% 65 2019 - - 587,029 275,300 - 862,329 0.07% 41 862,329
2020 - - 256,727 210,624 - 467,351 0.04% 23 467,351
2021 - - 196,304 142,970 - 339,274 0.02% 17 339,274
2022 - - 133,442 72,760 - 206,202 0.01% 10 206,202
2023 783,991 783,991 68,038 96,718 - 164,756 0.05% 45 948,747 2024 631,109 631,109 - 68,561 - 68,561 0.03% 31 699,670 2025 441,839 441,839 - 49,081 - 49,081 0.02% 21 490,920 Notes: Details regarding the City's outstanding debt can be found in Note 6 of the financial statements.

Governmental Activities Business-type Activities
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
City of Shafter
180

Overlapping Tax and Assessment Debt
Kern County
High School
District
% Applicable Debt
Rio BravoGreeley Union
School District
% Applicable Debt
Rosedale Union
School District
% Applicable Debt
Kern Community
College Assess.

District
% Applicable Debt
2016 2.636% $ 5,180,167 14.205% $ 1,517,846 0.000% $ - 0.000% $ - 2017 2.932% 7,978,740 20.431% 2,125,084 0.000% - 0.000% - 2018 3.050% 9,849,249 19.547% 1,942,482 0.000% - 0.000% - 2019 3.122% 9,308,281 19.208% 1,849,497 0.000% - 0.000% - 2020 3.283% 8,967,554 22.503% 2,103,589 0.000% - 2.091% 1,577,241 2021 3.573% 13,435,774 23.576% 2,113,038 0.000% - 2.286% 2,440,558 2022 3.787% 13,207,966 24.725% 2,118,262 0.000% - 2.412% 3,645,815 2023 4.407% 14,229,155 33.930% 2,769,577 0.000% - 2.820% 9,301,860 2024 4.547% 16,897,389 33.746% 2,537,251 0.000% - 2.938% 11,101,821 2025 4.856% 16,904,038 35.245% 2,649,956 0.000% - 3.131% 11,186,906 Norris School
District
% Applicable Debt
Richland School
District
% Applicable Debt
Kern County
Community College
Dist Repair &
Improve
% Applicable Debt
City of Shafter
1915 Act Bonds
% Applicable Debt
2016 1.156% $ 312,322 56.415% $ 11,217,733 1.655% $ 2,384,956 100.000% $ 110,600 2017 1.767% 472,620 56.867% 10,774,966 1.886% 2,579,597 100.000% 103,400 2018 3.197% 849,904 60.943% 10,916,662 1.961% 2,528,829 100.000% 99,500 2019 4.363% 1,151,205 61.317% 10,231,555 1.992% 2,400,581 100.000% 95,500 2020 5.694% 2,103,589 61.840% 9,683,719 2.091% 1,577,241 100.000% 91,300 2021 6.708% 2,106,078 64.266% 9,409,314 2.272% 2,484,504 100.000% 86,900 2022 8.059% 2,938,428 65.505% 8,759,742 2.427% 2,298,638 100.000% 82,300 2023 10.124% 3,338,319 65.619% 7,911,779 2.837% 2,516,378 100.000% 77,500 2024 12.077% 3,951,652 66.784% 7,124,251 2.956% 2,449,218 100.000% 72,500 2025 14.023% 4,571,498 67.507% 6,311,208 3.150% 2,431,012 100.000% 67,300 Last Ten Fiscal Years
City of Shafter
Historical and Overlapping Debt
181

2024-25 Assessed Valuation: $ 3,764,402,243
OVERLAPPING TAX AND ASSESSMENT DEBT:

Total Debt
06/30/2025
%
Applicable
(1) City's Share
of Debt
06/30/25
Kern Community College District Safety, Repair & $ 77,174,970 3.150% $ 2,431,012 Kern Community College District School Facilities 357,295,000 3.131% 11,186,906 Kern High School District 348,106,209 4.856% 16,904,038 Richland School District 9,348,968 67.507% 6,311,208
Norris School District 32,600,000 14.023% 4,571,498
Rio Bravo-Greeley Union School District 7,518,673 35.245% 2,649,956 RNR School Financing Authority Community Facilities District No. 92-1 106,990,000 6.656% 7,121,254 City of Shafter 1915 Act Bonds 67,300 100.000% 67,300
Total Overlapping Tax and Assessment Debt 51,243,172
DIRECT AND OVERLAPPING DEBT:

Kern County General Fund Obligations $ 90,626,026 3.111% $ 2,819,376 Kern County Pension Obligations 66,299,737 3.111% 2,062,585 Kern County Board of Education Certificates of Participation 28,575,000 3.111% 888,968 Kern County Community College District Certificates of 19,431,000 2.817% 547,371 Kern County Community College District Benefit Obligations 70,460,000 2.817% 1,984,858 Rio Bravo-Greedley Union School District General Fund - Rosedale Union School District General Fund Obligations 9,300,000 4.690% 436,170 100.000% 441,839
9,181,167
8,465,000 100.000% 8,465,000
$ 68,889,339 (2)
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue bonds and non-bonded capital lease obligations.

Ratios to 2024-2025 Assessed Valuation:

Total Direct and Overlapping Tax and Assessment Debt 1.36% Total Direct Debt 0.00%
Combined Total Debt 1.82%
Ratios to Redevelopment Incremental Valuation ($466,920,372):

Total Overlapping Tax Increment Debt 1.81%
Source: Avenu Insights, LLC / Neumo
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.

City of Shafter
Direct and Overlapping Debt
Combined Total Debt
City of Shafter
Total Direct and Overlapping General Fund Obligation Debt OVERLAPPING TAX INCREMENT DEBT (Successor Agency)
182

City County Per Capita Public
Fiscal City Unemployment County Unemployment Personal Personal Median School Year Population (1) Rate (2) (1) Rate (2) Income (3) Income (3) Age (3) Enrollment (4) 2015-16 18,048 8.7% 886,507 10.6% 50,322$ $ 908,213,983 26.6 41,866 $ 2016-17 18,868 8.8% 895,112 9.4% 52,744 995,172,471 26.3 42,463 2017-18 19,271 10.7% 905,801 7.3% 56,100 1,081,096,548 26.5 43,279 2018-19 20,886 8.4% 916,464 6.0% 59,173 1,235,887,278 27.1 44,101 2019-20 20,441 24.6% 917,553 18.3% 61,544 1,258,012,319 26.7 45,232 2020-21 20,448 11.5% 914,193 12.5% 66,430 1,358,363,094 27.2 46,047 2021-22 20,486 5.9% 907,324 6.0% 76,303 1,563,144,282 27.4 46,555 2022-23 21,318 7.0% 907,476 8.6% 89,000 1,897,302,000 27.4 46,690 2023-24 22,226 6.7% 910,300 8.3% 99,571 2,213,055,044 27.5 46,734 2024-25 23,455 6.8% 923,961 8.7% 107,356 2,518,025,598 28 46,014 MuniServices, LLC an Avenu Insights and Analytics Company (1) State of California Department of Finance.
(2) State of California Employment Development Department. (3) U.S. Census Bureau.
(4) Includes Richland School District (SD), Kern High SD, and Maple Elementary SD.

City of Shafter
Demographic and Economic Statistics
Last Ten Fiscal Years
183

Employer Employees Employment Employees Employment
Amazon Fulfillment Center 2,496 26.55%
Ross Distribution Center 2,144 22.81% 589 8.07%
Target Distribution Center 1,210 12.87% 670 9.18%
Grimmway Enterprises 728 7.74% 670 9.18%
Walmart Distribution Center 470 5.00% 0.00%
Richland School District 445 4.73% 435 5.96%
GAF Materials Corp 238 2.53% 0.00%
Wonderful Orchards* 224 2.38% 0.00%
Shafter Nursing Care 186 1.98% 0.00%
Shafter High School (Kern HS District) 160 1.70% 0.00%
Fed Ex Ground 230 3.15%
City of Shafter 196 2.68%
Baker Hughes 180 2.47%
Williams-Sonoma 180 2.47%
American Tire Distribution 175 2.40%
JD Rush (Also Tryad Serv. Corp.) 161 2.21%
Total Top Employers 8,301 88.31% 3,486 47.75%
Total Labor Force (1) 9,400 7,300
Notes:

Results based on direct correspondence with City’s local businesses. *Wonderful Orchards has not responded to Neumo's headcount inquires, previous year count was applied.

City of Shafter
Principal Employers
Last Fiscal Year and Nine Years Ago
Source: 2016, City of Shafter Comprehensive Annual Financial Report For the Year Ended June 30th, 2016 (1) State of California Employment Development Department. 2025 2016
MuniServices, LLC / Neumo
184

Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General government 21 21 22 22 22 19 17 17 21 24
General government - PT 1 3 3
Public safety (1) 39 42 42 42 42 42 40 47 50 60
Public works 18 21 21 22 22 16 20 24 26 30
Public Works - PT 1 1 1 1 1
Education Partnership - - - - - 2 2 2 2 2
Education Partnership - PT - - - - - 11 12 22 17 20
Community Development 8 8 10 10 10 11 11 12 13 15
Water 6 6 6 6 6 6 6 6 5 5
Wastewater 3 3 2 2 2 3 3 3 3 3
Refuse collection (3) 5 4 4 4 4 3 1 1 - -
Transit service 8 8 8 9 9 1 1 1 2 4
Transit service - PT 3 3 3 2 -
Rail Operations 1 0 0 0 0 - - - - -
MCCF Facility (2) 90 89 90 90 90 1 - - - -
Sub-Total - FT 198 201 205 207 207 104 101 113 122 143
Sub-Total - PT - - - - - 15 16 27 23 24
Total 198 201 205 207 207 119 117 140 145 167
1 Public safety consists of police services and animal control. Fire services are outsourced to the County of Kern thru a fee for service contract. 2 MCCF Facility is a Modified Community Correctional Facility housing State of California inmates thru a contract with the State. 3 Refuse was outsourced to American Refuse and Varner Bros.

Source: City of Shafter
Full-Time Employees as of June 30
Funded by Function
City of Shafter
Last Ten Fiscal Years
Full-time and Part-time City Employees
185

2016 2017 2018 2019 2020
Police:

Calls for service 18,596 21,406 18,604 17,714 21,389
Total Crime UCR 709 646 656 752 589
Arrests & citations 1,003 1,148 1,027 1,027 1,611
Felony arrests 249 214 191 173 221
Misdemeanor arrests 754 934 836 854 1,390
Property loss 1,152,412 1,139,318 1,127,895 1,178,881 121,041 Property recovery 696,746 610,893 437,310 581,736 507,193 Traffic citations 468 1,158 747 762 1,438
Traffic accidents 200 238 244 229 251
Parking citations 111 300 137 247 255
Animal Control:

Citations 10 14 5 8 5
Violations 1,779 2,347 1,691 1,141 1,597
Adoptions 342 349 936 912 704
Public works:

Street resurfacing (miles) 1 1 0 1 0
Water:

New connections (SFE) 38 66 71 148 28
Average daily production
(thousands of gallons) 3,764 4,119 4,443 4,349 4,482
Sewer:

New connections (SFE) 105 225 231 277 151
Average daily sewage treatment
(thousands of gallons) 1,330 1,430 1,430 1,400 1,360
(Continued)
Source: City of Shafter
Fiscal Year
City of Shafter
Operating Indicators by Function
Last Ten Fiscal Years
186

2021 2022 2023 2024 2025
Police:

Calls for service 22,319 16,690 11,537 12,723 13,597
Total Crime UCR 627 669 610 1,576 1,708
Arrests & citations 3,867 2,295 2,386 2,133 3,198
Felony arrests 363 259 311 251 319
Misdemeanor arrests 1,705 1,167 1,386 932 1,211
Property loss 2,775,459 1,677,592 1,297,698 1,333,591 799,434 Property recovery 917,578 699,345 116,225 32,962 11,546 Traffic citations 1,801 868 587 950 1,668
Traffic accidents 221 166 195 200 187
Parking citations 83 75 67 201 310
Animal Control:

Citations 4 19 5 10 28
Violations 1,478 1,057 616 413 1,431
Adoptions 660 420 505 777 839
Public works:

Street resurfacing (miles) 1 1 1 1 1
Water:

New connections (SFE) 36 12 27 37 173
Average daily production
(thousands of gallons) 4,483 4,363 4,069 4,372 4,315
Sewer:

New connections (SFE) 11 6 23 35 167
Average daily sewage treatment
(thousands of gallons) 1,330 1,370 1,390 1,420 1,490
(Concluded)
Source: City of Shafter
Fiscal Year
City of Shafter
Operating Indicators by Function (Continued)
Last Ten Fiscal Years
187

Fiscal Year 2016 2017 2018 2019 2020 2022 2023 2024 2025 Police:

Stations 1 1 1 1 1 1 1 1 1
Fire:

Fire stations (County) 1 1 1 1 1 1 1 1 1
Public works:

Streets (miles) 84.00 98.00 117.00 123.00 124.00 140.00 140.00 146.00 148.00 Streetlights 860 860 990 994 1,074 1,489 1,557 1,560 1,747 Traffic signals 7 8 8 8 8 9 9 9 9
Parks and recreation:

Parks 5 5 6 6 8 9 10 10 12
Water:

Water mains (miles) 88.28 90.00 108.00 109.00 111.00 119.00 121.00 122.00 134.00 Maximum daily capacity
(thousands of gallons) 10,500 10,500 10,500 10,000 8,600 9,300 9,300 9,300 10,000 Wastewater:

Sanitary sewers (miles) 45.64 45.64 50.00 57.00 86.00 95.00 101.00 104.00 108.00 Storm sewers (miles) 5.41 6.00 8.00 8.00 10.00 11.00 12.00 13.00 15.00 Maximum daily treatment capacity
(thousands of gallons) 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Source: City of Shafter
Capital Asset Statistics by Function
Last Ten Fiscal Years
City of Shafter
188

MANAGEMENT REPORT

CITY OF SHAFTER

CITY COUNCIL REPORT
MEETING DATE: February 3, 2026
DEPARTMENT: Carol Chavolla, HR Director
SUBJECT: FIRST AMENDMENT OF THE CITY MANAGER EMPLOYMENT

AGREEMENT APPROVAL

RECOMMENDATION
Council find action is not defined as a “project” per Section 15378(b)(5) of the CEQA Guidelines; approve the First Amendment to the City Manager Employment Agreement with Lance Lippincott.

BACKGROUND
On August 27, 2024, the City Council appointed Lance Lippincott as the City Manager and approved an employment agreement setting forth the terms of that engagement.

The employment agreement requires the City Council to conduct annual performance evaluations. Following completion of the most recent evaluation, the City Council determined that the City Manager’s performance frequently exceeds performance expectations. Based on the City Manager’s performance and to address salary compaction between the City Manager and executive-level staff, the City Council directed that the City Manager’s Employment Agreement be amended to update the salary provisions as follows:
“City agrees to pay City Manager, and City Manager agrees to accept from City, as compensation for services rendered by City Manager pursuant to this Agreement, an annual base salary, commencing on the Effective Date, in the amount of Two Hundred Thirty-Five Thousand Dollars and Zero Cents ($235,000.00) (hereinafter "Annual Base Salary"), payable in installment payments in the same manner and at the same times as salaries of other executive managers of the City are paid." All other terms of the current employment agreement remain unchanged.

Effective January 1, 2017, California Government Code Section 54953 (c)(3) requires the City Council to orally report in open session a summary of the salary, salary schedules, and compensation in the form of fringe benefits for local agency executives, before the City Council may take final action on such compensation. This report and the oral presentation that is provided will satisfy those requirements.

FISCAL IMPACT

FIRST AMENDMENT OF THE CITY MANAGER EMPLOYMENT AGREEMENT APPROVAL - 2 -
The base salary fiscal impact is $25,000 annually. The total compensation fiscal impact, inclusive of applicable benefits, is approximately $30,185 annually. The fiscal impact can be absorbed within the approved Fiscal Year 2025/2026 Annual Operating Budget. A budget amendment is not required.

CEQA ANALYSIS
The action is not defined as a “project” per Section 15378(b)(5) of the CEQA Guidelines because the action is approval of the first amendment to the City Manager employment agreement and therefore, it is organizational and administrative activity that will not result in direct or indirect physical changes to the environment and not subject to CEQA.

APPROVED BY THE CITY ATTORNEY
Yes

ATTACHMENTS

1. First Amendment to the City Manager Employment Agreement - Lippincott, Lance

1 FIRST AMENDMENT TO
CITY MANAGER.EMPLOYMENT AGREEMENT
This First Amendment to the City Manager Employment Agreement (the "First Amendment") between the City of Shafter (the "City"), a California municipal corporation, and Lance Lippincott, an individual ("Lippincott"), is entered into this 3 rd d a y o f
F e b r u a r y , 2026. The above parties may be individually referred to as "Party" and collectively referred to as the "Parties."

RECITALS
A. The Parties entered into a City Manager Employment Agreement ("Agreement") services on August 27, 2024; and
B. The Parties now wish to amend the terms of the Agreement to update the salary provisions of the Agreement.

AGREEMENT
In consideration of the mutual obligations in this First Amendment and the Agreement, the Parties agree as follows:

SECTION 1. Section 3(A) of the Agreement is hereby amended to read as follows:
"A. City agrees to pay City Manager, and City Manager agrees to accept from City, as compensation for services rendered by City Manager pursuant to this Agreement, an annual base salary, commencing on the Effective Date, in the amount of Two Hundred Thirty-Five Thousand Dollars and Zero Cents ($235,000.00) (hereinafter "Annual Base Salary"), payable in installment payments in the same manner and at the same times as salaries of other executive managers of the City are paid."
SECTION 2. Except as expressly modified by this First Amendment, all provisions of the Agreement remain in full force and effect.
[SIGNATURES ON FOLLOWING PAGE]

2 IN WITNESS WHEREOF, the Parties hereto have executed this First Amendment as of the date first herein written above.

CITY OF SHAFTER
By: ______________________________
Chad Givens, Mayor

CITY MANAGER
By: ______________________________
Lance Lippincott, City Manager
ATTEST:
______________________________
Yazmina Pallares, City Clerk
Approved as to form:
______________________________
Marco A. Martinez, City Attorney

MANAGEMENT REPORT

CITY OF SHAFTER

CITY COUNCIL REPORT
MEETING DATE: February 3, 2026
DEPARTMENT: Michael James, Assistant City Manager
SUBJECT: SALES TAX INITIATIVE PUBLIC OUTREACH AND

ENGAGEMENT PROFESSIONAL SERVICES AGREEMENT

RECOMMENDATION
Council find the action exempt from the California Environmental Quality Act; authorize the City Manager to execute a professional services agreement with CiviSocial for communications training and engagement services in an amount not to exceed $20,000; and authorize the City Manager to execute a separate professional services agreement with Polco for digital engagement platform services in an amount not to exceed $10,000.

BACKGROUND
In support of the City Council’s ongoing priority to enhance public transparency, civic engagement, and community trust, the City of Shafter seeks to strengthen its communications and public engagement capacity in advance of a potential local sales tax measure that could be considered for the November 2026 ballot. Like many growing communities, Shafter faces increasing demands related to public safety, infrastructure, and community services, while traditional revenue sources have become more constrained. These conditions have prompted the City to explore improved methods of communicating fiscal realities and engaging residents in informed dialogue regarding future funding options.

To support this effort, Staff recommends entering into separate professional services agreements with CiviSocial and Polco, two firms with complementary areas of expertise. Together, these firms would implement a coordinated public outreach and engagement program designed to build internal communications capacity while establishing a structured, accessible platform for ongoing resident input. A formal request for proposals was not conducted, as professional services agreements of this scope do not trigger the City’s competitive procurement requirements.

CiviSocial specializes in hands-on communications strategy, social media storytelling, and staff training for public-sector organizations. Their proposed scope includes preparatory work followed by five days of on-site engagement in Shafter, during which they would work directly with City staff, stakeholders, and community members. The engagement is intended to develop a unified communications voice, improve digital storytelling practices, and train internal staff to serve as content creators who can

SALES TAX INITIATIVE PUBLIC OUTREACH AND ENGAGEMENT PROFESSIONAL SERVICES

AGREEMENT
- 2 -
maintain consistent, authentic public messaging related to City services, budget realities, and community priorities.

Polco provides a digital engagement platform that allows local governments to gather structured, data-driven community feedback through surveys, polls, and interactive tools. The platform supports ongoing engagement with verified resident panels, realtime sentiment tracking, and transparent sharing of engagement results. Polco’s services would provide the City with a reliable mechanism to test messaging, measure community priorities, and maintain continuous two-way communication with residents.

This item was previously scheduled for City Council consideration in December 2025 but was pulled from the agenda prior to discussion to allow the City Council and staff to step back and conduct a broader, policy-level discussion regarding a potential local sales tax and the City’s long-term revenue needs before proceeding with community engagement. Following that action, the City Council held a public workshop at a special meeting on January 20, 2026, to initiate a transparent, conceptual discussion regarding a potential local sales tax measure and related revenue considerations. No formal action was taken at that meeting.

Following the Council’s policy-level discussion at the January 20, 2026 public workshop, Staff is returning to the City Council for consideration of the proposed professional services agreements as an initial step toward building internal communications capacity and establishing a framework for future community engagement, should the Council choose to move forward.

Upon execution of the proposed agreements, services would commence promptly to ensure sufficient time for staff training and preparation in advance of any future Council consideration of a revenue measure.

FISCAL IMPACT
The total cost of the proposed professional services agreements is not to exceed $30,000. This includes $20,000 for communications training and engagement services provided by CiviSocial and $10,000 for digital engagement platform services provided by Polco. Sufficient funds are available within existing operational budgets to cover these costs, and no additional Council budget action is required.

CEQA ANALYSIS
The action is statutorily exempt from the California Environmental Quality Act pursuant to Section 15262 of the CEQA Guidelines, as it involves only feasibility and planning studies for possible future actions that have not been approved, adopted, or funded.

APPROVED BY THE CITY ATTORNEY
Not Applicable

ATTACHMENTS

1. Proposal Submitted by CiviSocial

Procurement Proposal for Shafter California
Community Communications and Engagement Optimization Program Prepared by:

CiviSocial
2408 NE 26th Terrace, Fort Lauderdale, FL 33305
Sam Toles, Founder and CEO
(323) 401 2587 (direct) – [email protected]
Prepared for:

Lance Lippincott
City of Shafter
336 Pacific Avenue
Shafter, CA 93263
January 12, 2026

1. Executive Summary
This proposal combines the complementary strengths of two companies: CiviSocial’s onsite communications and storytelling strategy with Polco’s Engage platform to help Shafter build/deepen modern communications, clarity, and community engagement and alignment.

CiviSocial will lead a 5-day in-person engagement focused on elevating Shafter’s community relations through modern, authentic social media storytelling. This includes defining the City’s voice, strengthening its digital presence, and equipping staW with a repeatable workflow that captures the stories, services, and successes that matter most to residents. Through stakeholder collaboration, hands-on training, and real-world content development, Shafter will leave with a stronger, more confident communications strategy built on transparency, human connection, and consistent outreach.

To reinforce and extend this work, Shafter will also receive one year of access to Polco’s Engage platform, providing a structured, data-driven foundation for ongoing public participation. Through Engagement Pages, Quick Polls, the Prioritize Tool, and several benchmarking datasets, the City can gather feedback, test messaging, measure sentiment, and keep residents continuously informed.

Together, this combined approach ensures that communications are not only compelling but also grounded in real community input and informed by clear, measurable signals.

2. Scope of Services
A) Polco OCering:

One-Year Access to the Engage Platform Includes:

1. Engage Module: A suite of digital tools designed to extend public participation beyond a single survey and support ongoing, meaningful engagement.

2. Engagement Pages: Public-facing project hubs that centralize updates, background materials, survey results, and future engagement opportunities in one location.

3. Quick Polls: Lightweight, real-time polling tools to capture feedback on emerging issues or follow-up questions as the conversation evolves.

4. Prioritize Tool: Interactive ranking tool that asks residents to weigh values, priorities, or scenarios (such as balancing preservation with development) providing structured input on complex trade-oWs.

5. Resident Subscriber Base / Panel: A growing, verified list of residents who opt in to receive updates and participate in future activities, forming an always-available digital focus group.

B) CiviSocial Program

1. The CiviSocial engagement will include +/- 2-weeks of preparatory pre-engagement work including deep data evaluation (both Polco generated and pre-existing work); an all-staW survey to identify ideal social media training candidates; a kick-oW meeting with the City Manager and Communications team; and other fact-finding activities surrounding the City’s current communications strengths, weaknesses, and overall strategy on social media.

2. This will be followed by 5-days of in-person, hands-on engagement in Shafter which includes:

- Meetings with stakeholders, staW, and residents to gather insights and perspectives. - Development of an overall voice and story map for the City's social media. - Providing tools and tactics to enhance social media eWectiveness. - Training sessions on best practices and innovative content strategies. - Identifying potential content creators within the community and City staW. - Training on creating eWective and compelling social media content. - Within the community (business owners, engaged residents, etc) - With City staW
- With economic development team members and, if desired, local businesses (or the Chamber of Commerce) to help accelerate growth and opportunity for Shafter.

3. CiviSocial Deliverables:

At the conclusion of the in-person engagement, we will deliver a presentation with the following elements:

1. The “Voice” of Your New Communications Strategy:
- Development of a unified and distinctive voice that reflects the City's identity.

2. Identity and Story Plan for Formerly Hidden Creators:
- Crafting stories that highlight previously unrecognized contributors and creators. - Crafting stories that highlight the value of services and potential need for further support.

3. Process Outline:
- Recommended staWing assignments and estimated time commitments - Plan on Calendar, Cadence, and Clearance (and risk mitigation) - A template schedule outlining content creation, approval processes, and recommended posting and platform cadence.

4. Overall Content Strategy and Recommendations on Implementation:
- Detailed content strategy including types of content, frequency, and themes. - Practical recommendations for implementing the strategy eWectively.

5. Platform-Specific Recommendations and Strategies:
- Tailored strategies for each social media platform used by The City of Shafter. - Best practices for maximizing engagement on each platform.

6. Recommended Engagement and Community Management Tactics:
- Strategies to foster community interaction and engagement. - Recommendations for fostering a positive online community.

7. Adaptability Guidelines Coupled with Risk Mitigation Tactics:
- Test-and-Learn strategy of rapid adaptation in response to feedback and analytics - Risk mitigation plan; guardrails for newly empowered creators

8. Tools recommendations for eWective and eWicient creation and distribution of content:
- List of available and recommended tools to optimize social media content creation - List of available and recommended tools to optimize social media content distribution - User training on select tools through video links (coupled with prior hands-on training)

4. Project Timeline
Phase Duration Key Activities
Polco Set-Up +/- 2-weeks Survey and onboarding
Data Collection 4-8 weeks Client engages community
Data Review + Virtual
Meetings
+/- 1 week CiviSocial and Shafter review
data and identify focus areas
CiviSocial Preparation +/- 2-weeks StaW Survey and Preparation Engagement 5 working Days Consulting and Training
Deliverables +/- 2 working days Creation of final deliverables

5. Fee Structures
The total fee for Polco’s proposed services is $10,000 which is broken down as follows:

Service Fee
One-Year Access to Engage Platform $7,500
Onboarding and platform / data guidance $2,500

The total fee for CiviSocial’s proposed services is $20,000 which is broken down as follows:

Service Fee
Pre-engagement Included
Engagement and Deliverables $20,000
Travel reimbursement Included

6. Payment Schedule*
Milestone Payment due
Polco: 30-days from Engage Activation $10,000
CiviSocial: Upon receipt of deliverables $20,000 (net 30 upon completion) *Please note that each company will issue separate contracts and payment requests for their respective services.

7. Conclusion
CiviSocial and Polco are committed to partnering with Shafter to strengthen community connection through clearer communication and more meaningful resident engagement. By combining CiviSocial’s on-site strategy, training, and storytelling framework with Polco’s ongoing engagement tools and data-driven insights, this joint approach will equip the City with a sustainable system for listening, communicating, and building trust. We look forward to collaborating with Shafter and supporting a more dynamic, responsive, and community-centered digital presence.

For any questions or further discussion, please contact:

CiviSocial: Polco:

Sam Toles Garrett Hernandez Rimer
(323) 401 2587 (303) 229 5064
[email protected] [email protected]
Thank you for considering our proposal.

Sincerely,
Sam Toles
Founder, CiviSocial

MANAGEMENT REPORT

CITY OF SHAFTER

CITY COUNCIL REPORT
MEETING DATE: February 3, 2026
DEPARTMENT: Michael James, Assistant City Manager
SUBJECT: APPROVAL OF REMODEL OF FORMER MODIFIED COMMUNITY

CORRECTIONAL FACILITY (MCCF) ADMINISTRATIVE OFFICE

FOR USE BY THE INFORMATION TECHNOLOGY DEPARTMENT

RECOMMENDATION
Council find that the project is exempt from the California Environmental Quality Act; approve the creation of a new capital improvement program budget in the amount of $200,000 to fund a temporary remodel of the administrative office space at the former Modified Community Correctional Facility for use by the City's Information Technology Department staff; and authorize the City Manager to award purchases and construction contracts for individual work items within the approved budget in accordance with the City's bidding and procurement policies, using informal bid procedures as applicable.

BACKGROUND
The City Council has previously authorized the release of a Request for Qualifications and Proposals (RFQP) to evaluate and plan for the long-term repurposing of the former Modified Community Correctional Facility (MCCF) as a modern municipal facility. The primary long-term goal is to relocate the Shafter Police Department to the MCCF site, while also accommodating permanent space for the Information Technology (IT) Department and other civic functions.

In the interim, the City has identified a need to temporarily relocate IT Department staff, who are currently working out of the Public Works Corporation Yard. The administrative office portion of the MCCF offers an opportunity to meet this short-term need. A proposed capital improvement project would fund a temporary remodel of this space to allow for its use by the IT Department. This work is independent of, but complementary to, the long-term planning effort underway through the RFQP process. The temporary remodel is intended to be limited in scope, focused on essential improvements to allow safe and functional occupancy, without foreclosing future options being studied under the design-build planning effort. In addition to supporting the IT Department, the remodeled space may also accommodate other City staff from City Hall, if needed.

FISCAL IMPACT

APPROVAL OF REMODEL OF FORMER MODIFIED COMMUNITY CORRECTIONAL FACILITY (MCCF) ADMINISTRATIVE OFFICE FOR USE BY THE INFORMATION TECHNOLOGY

DEPARTMENT
- 2 -
To support the temporary remodel of the administrative office space at the former Modified Community Correctional Facility, a new capital improvement program budget in the amount of $200,000 is proposed. Preliminary quotes have been obtained for the major work components, which total approximately $159,500, including:
• HVAC updates and repairs – $22,500
• Interior painting – $15,000
• Flooring – $12,000
• Interior lighting updates – $10,000
• Office furniture – $25,000
• Roof repairs – $75,000
The remaining balance of approximately $40,500 is intended to serve as contingency to address unanticipated conditions, procurement variability, or minor scope adjustments.

Individual work items will be procured in accordance with the City's bidding and procurement policies, using informal bid procedures as applicable.

CEQA ANALYSIS
The project is categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301 (Class 1 – Existing Facilities) of the CEQA Guidelines because it is the repair and minor alteration of the former Modified Community Correctional Facility that includes HVAC updates and repairs, interior painting, new flooring, interior lighting updates, new office furniture, and roof repairs that involve no expansion of the existing or former use.

APPROVED BY THE CITY ATTORNEY
Not Applicable

ATTACHMENTS
None