Soledad City Council
August 19, 2026

Services provided under this budget include:
• Street maintenance and storm drain system upkeep
• Utility services (water and electricity for streetlights and landscaped areas) • Street sweeping, mowing, and irrigation system repairs • Restroom cleaning and general park maintenance
• Vandalism and graffiti abatement
• Equipment and infrastructure repairs
• Tree trimming and general landscaping
Maintenance activities cover all MAD/BAD streets, open spaces, and the following park facilities:
• San Antonio Park (0.46 acres)
• Joe O. Ledesma Park (0.6 acres)
• Peverini Park (2.9 acres) – includes public restrooms • Santa Barbara Park (1.08 acres)
• Gabilan Pond Park (Miravale I stormwater detention basin – 3.8 acres) • Orchard Lane Park (3.7 acres) – includes a splash pad and restrooms • Parcel E Park (Vintage Estates Subdivision – 0.57 acres) • Landscape Areas – Along San Vicente Road and Orchard Lane FY 2025-26 Budget Accomplishments
• Completed a citywide Crack Seal Project to preserve pavement integrity and extend the lifespan of streets within the assessment districts.
308
Performance Objectives/Projects to be Delivered in FY 2026-27 In addition to routine maintenance and operations, this fiscal year will include:
• Complete slurry seal and pavement striping improvements within designated MAD/BAD areas to extend pavement life, maintain roadway conditions, and improve safety. • Continue providing park attendant services at Orchard Lane Park to support Splash Pad operations, maintain public restroom access, and provide a clean and welcoming environment for park users.
309
8/10/2026 12:28:29 PM Page 1 of 13
Budget Worksheet
Soledad, CA Account Summary
For Fiscal: 2025-2026 Period Ending: 06/30/2026
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
Fund: 646 - VINEYARDS ASSMNT DIST
Revenue
Department: 0000 - 0000
RevCategory: 40 - Property Taxes
646-0000-40100 PROPERTY TAX - SECURED 263,000.00 266,119.39 265,000.00 267,059.59 262,544.00 262,126.87 262,450.00 RevCategory: 40 - Property Taxes Total: 263,000.00 266,119.39 265,000.00 267,059.59 262,544.00 262,126.87 262,450.00 RevCategory: 48 - Other Revenue
646-0000-48410 INTEREST REVENUE 400.00 14,226.96 10,000.00 9,506.28 10,000.00 6,684.41 6,000.00 RevCategory: 48 - Other Revenue Total: 400.00 14,226.96 10,000.00 9,506.28 10,000.00 6,684.41 6,000.00 Department: 0000 - 0000 Total: 263,400.00 280,346.35 275,000.00 276,565.87 272,544.00 268,811.28 268,450.00 Revenue Total: 263,400.00 280,346.35 275,000.00 276,565.87 272,544.00 268,811.28 268,450.00 Expense
Department: 0000 - 0000
ExpCategory: 52 - Services & Supplies
646-0000-52200 PROFESSIONAL SERVICES/FEES 6,000.00 2,075.00 3,000.00 6,075.00 8,734.00 0.00 8,734.00 ExpCategory: 52 - Services & Supplies Total: 6,000.00 2,075.00 3,000.00 6,075.00 8,734.00 0.00 8,734.00 ExpCategory: 58 - Debt Service
646-0000-58125 INTEREST (VINEYARD) 62,093.76 62,093.76 55,234.00 55,234.38 47,950.00 47,950.00 40,100.00 646-0000-58225 PRINCIPAL (VINEYARD) 190,000.00 190,000.00 195,000.00 195,000.00 200,000.00 200,000.00 205,000.00 ExpCategory: 58 - Debt Service Total: 252,093.76 252,093.76 250,234.00 250,234.38 247,950.00 247,950.00 245,100.00 ExpCategory: 59 - Transfers Out
646-0000-59000 TRANSFER OUT 0.00 0.00 0.00 13,352.98 4,610.00 4,610.00 10,711.00 ExpCategory: 59 - Transfers Out Total: 0.00 0.00 0.00 13,352.98 4,610.00 4,610.00 10,711.00 Department: 0000 - 0000 Total: 258,093.76 254,168.76 253,234.00 269,662.36 261,294.00 252,560.00 264,545.00 Expense Total: 258,093.76 254,168.76 253,234.00 269,662.36 261,294.00 252,560.00 264,545.00 Fund: 646 - VINEYARDS ASSMNT DIST Surplus (Deficit): 5,306.24 26,177.59 21,766.00 6,903.51 11,250.00 16,251.28 3,905.00 310
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:28:29 PM Page 2 of 13
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
Fund: 647 - RANCHO SAN VICENTE-CHISPA
Revenue
Department: 0000 - 0000
RevCategory: 40 - Property Taxes
647-0000-40100 PROPERTY TAX - SECURED 106,635.00 106,368.42 109,834.00 109,151.04 113,130.00 113,307.75 116,524.00 RevCategory: 40 - Property Taxes Total: 106,635.00 106,368.42 109,834.00 109,151.04 113,130.00 113,307.75 116,524.00 RevCategory: 48 - Other Revenue
647-0000-48410 INTEREST REVENUE 2,000.00 16,193.14 2,000.00 18,983.44 10,000.00 17,329.51 10,000.00 RevCategory: 48 - Other Revenue Total: 2,000.00 16,193.14 2,000.00 18,983.44 10,000.00 17,329.51 10,000.00 Department: 0000 - 0000 Total: 108,635.00 122,561.56 111,834.00 128,134.48 123,130.00 130,637.26 126,524.00 Revenue Total: 108,635.00 122,561.56 111,834.00 128,134.48 123,130.00 130,637.26 126,524.00 Expense
Department: 0000 - 0000
ExpCategory: 51 - Salaries & Benefits
647-0000-51100 SALARIES 0.00 920.41 0.00 0.00 0.00_____________________________ 0.00 647-0000-51130 OVERTIME 0.00 0.88 0.00 0.00 0.00_____________________________ 0.00 647-0000-51140 CERTIFICATES 0.00 4.45 0.00 0.00 0.00_____________________________ 0.00 647-0000-51200 SOCIAL SECURITY / MEDICARE 0.00 134.30 0.00 0.00 0.00_____________________________ 0.00 647-0000-51210 PERS-PENSION 0.00 153.71 0.00 0.00 0.00_____________________________ 0.00 647-0000-51220 BENEFITS 0.00 13.79 0.00 0.00 0.00_____________________________ 0.00 647-0000-51230 INSURANCE-MED,DEN,VISION 0.00 289.92 0.00 0.00 0.00_____________________________ 0.00 647-0000-51310 WORKERS COMP 0.00 0.00 0.00 2,996.08 0.00_____________________________ 3,176.61 ExpCategory: 51 - Salaries & Benefits Total: 0.00 1,517.46 0.00 2,996.08 0.00 3,176.61 0.00 ExpCategory: 52 - Services & Supplies
647-0000-52049 PRINTING & ADVERTISING 500.00 0.00 500.00 0.00 500.00 0.00 500.00 647-0000-52060 CITY ADMINISTRATION 29,007.58 0.00 29,878.00 0.00 30,774.00_____________________________ 0.00 647-0000-52069 COUNTY COLLECTION FEE 1,305.00 0.00 1,305.00 0.00 1,305.00 0.00 1,305.00 647-0000-52070 DISTRICT ADMINISTRATION 5,000.00 0.00 5,000.00 2,000.00 5,000.00 2,000.00 5,000.00 647-0000-52080 FLEET SERVICES 0.00 166.42 0.00 0.00 0.00_____________________________ 0.00 647-0000-52085 FUEL 0.00 1,593.00 0.00 116.54 0.00_____________________________ 0.00 647-0000-52091 TRAVEL, MEETINGS & TRAINING 0.00 2.50 0.00 0.00 0.00_____________________________ 0.00 647-0000-52200 PROFESSIONAL SERVICES/FEES 0.00 4,660.14 0.00 61.16 0.00_____________________________ 4,071.02 647-0000-52415 CELLULAR PHONE 0.00 402.04 0.00 0.00 0.00_____________________________ 0.00 311
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:28:29 PM Page 3 of 13
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
647-0000-52420 PARK ELECTRICAL CHARGES 1,329.35 0.00 1,369.00 0.00 1,410.00 0.00 1,453.00 647-0000-52422 STREET LIGHTING 2,708.61 718.09 2,790.00 1,126.37 2,874.00 7,350.66 2,960.00 647-0000-52430 PARK WATER CHARGES 3,323.36 4,645.30 3,423.00 3,892.92 3,526.00 4,520.16 3,632.00 647-0000-52431 PARKWAY WATER CHARGES 23,948.93 4,855.51 24,667.00 6,327.59 25,407.00 6,763.93 26,170.00 647-0000-52518 FACILITIES EXPENSE 0.00 2.63 0.00 0.00 0.00_____________________________ 395.00 647-0000-52520 MAINTENANCE AGREEMENTS 0.00 654.04 0.00 11.02 0.00_____________________________ 0.00 647-0000-52522 PARK MAINTENANCE 26,582.07 2,070.32 27,380.00 620.16 28,201.00 13,159.45 29,047.00 647-0000-52525 REPAIRS & MAINTENANCE SUP… 0.00 157.47 0.00 1,141.54 0.00_____________________________ 1,500.00 647-0000-52527 SOUND WALL MAINTENANCE 5,053.22 0.00 5,205.00 0.00 5,361.00 0.00 5,522.00 647-0000-52530 STREET LANDSCAPING 19,936.55 33,050.00 20,535.00 32,125.00 21,151.00 24,750.00 21,785.00 647-0000-52532 STREET SWEEPING 0.00 8,648.01 0.00 9,677.00 0.00_____________________________ 654.98 ExpCategory: 52 - Services & Supplies Total: 118,694.67 61,625.47 122,052.00 57,099.30 125,509.00 65,165.20 97,374.00 ExpCategory: 59 - Transfers Out
647-0000-59000 TRANSFER OUT 0.00 0.00 0.00 29,878.00 0.00 30,774.00 31,697.00 ExpCategory: 59 - Transfers Out Total: 0.00 0.00 0.00 29,878.00 0.00 30,774.00 31,697.00 Department: 0000 - 0000 Total: 118,694.67 63,142.93 122,052.00 89,973.38 125,509.00 99,115.81 129,071.00 Expense Total: 118,694.67 63,142.93 122,052.00 89,973.38 125,509.00 99,115.81 129,071.00 Fund: 647 - RANCHO SAN VICENTE-CHISPA Surplus (Deficit): -10,059.67 59,418.63 -10,218.00 38,161.10 -2,379.00 31,521.45 -2,547.00 312
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:28:29 PM Page 4 of 13
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
Fund: 648 - DIAMOND RIDGE ASSMENT DIS
Revenue
Department: 0000 - 0000
RevCategory: 40 - Property Taxes
648-0000-40100 PROPERTY TAX - SECURED 315,000.00 319,947.81 317,000.00 312,915.61 320,684.00 319,531.50 321,143.00 RevCategory: 40 - Property Taxes Total: 315,000.00 319,947.81 317,000.00 312,915.61 320,684.00 319,531.50 321,143.00 RevCategory: 48 - Other Revenue
648-0000-48410 INTEREST REVENUE 2,000.00 35,363.26 20,000.00 30,612.95 20,000.00 26,232.55 17,500.00 RevCategory: 48 - Other Revenue Total: 2,000.00 35,363.26 20,000.00 30,612.95 20,000.00 26,232.55 17,500.00 Department: 0000 - 0000 Total: 317,000.00 355,311.07 337,000.00 343,528.56 340,684.00 345,764.05 338,643.00 Revenue Total: 317,000.00 355,311.07 337,000.00 343,528.56 340,684.00 345,764.05 338,643.00 Expense
Department: 0000 - 0000
ExpCategory: 52 - Services & Supplies
648-0000-52200 PROFESSIONAL SERVICES/FEES 7,000.00 5,075.00 6,000.00 3,075.00 9,182.00 3,625.00 9,176.00 ExpCategory: 52 - Services & Supplies Total: 7,000.00 5,075.00 6,000.00 3,075.00 9,182.00 3,625.00 9,176.00 ExpCategory: 58 - Debt Service
648-0000-58120 INTEREST (DIAMOND RIDGE) 124,325.00 136,567.75 124,325.00 126,802.50 116,892.00 116,600.00 105,960.00 648-0000-58220 PRINCIPAL (DIAMOND RIDGE) 175,000.00 165,000.00 175,000.00 170,000.00 180,000.00 180,000.00 195,000.00 ExpCategory: 58 - Debt Service Total: 299,325.00 301,567.75 299,325.00 296,802.50 296,892.00 296,600.00 300,960.00 ExpCategory: 59 - Transfers Out
648-0000-59000 TRANSFER OUT 0.00 0.00 0.00 15,645.78 7,457.00 7,457.00 16,645.00 ExpCategory: 59 - Transfers Out Total: 0.00 0.00 0.00 15,645.78 7,457.00 7,457.00 16,645.00 Department: 0000 - 0000 Total: 306,325.00 306,642.75 305,325.00 315,523.28 313,531.00 307,682.00 326,781.00 Expense Total: 306,325.00 306,642.75 305,325.00 315,523.28 313,531.00 307,682.00 326,781.00 Fund: 648 - DIAMOND RIDGE ASSMENT DIS Surplus (Deficit): 10,675.00 48,668.32 31,675.00 28,005.28 27,153.00 38,082.05 11,862.00 313
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:28:29 PM Page 5 of 13
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
Fund: 649 - DIAMOND RIDGE BAD-PH 1
Revenue
Department: 0000 - 0000
RevCategory: 40 - Property Taxes
649-0000-40100 PROPERTY TAX - SECURED 85,955.00 84,592.38 88,176.00 88,237.83 103,464.00 102,882.69 109,052.00 RevCategory: 40 - Property Taxes Total: 85,955.00 84,592.38 88,176.00 88,237.83 103,464.00 102,882.69 109,052.00 RevCategory: 48 - Other Revenue
649-0000-48410 INTEREST REVENUE 2,000.00 24,203.61 2,000.00 24,977.37 15,000.00 23,053.52 10,000.00 RevCategory: 48 - Other Revenue Total: 2,000.00 24,203.61 2,000.00 24,977.37 15,000.00 23,053.52 10,000.00 Department: 0000 - 0000 Total: 87,955.00 108,795.99 90,176.00 113,215.20 118,464.00 125,936.21 119,052.00 Revenue Total: 87,955.00 108,795.99 90,176.00 113,215.20 118,464.00 125,936.21 119,052.00 Expense
Department: 0000 - 0000
ExpCategory: 51 - Salaries & Benefits
649-0000-51100 SALARIES 0.00 620.72 0.00 0.00 0.00_____________________________ 0.00 649-0000-51130 OVERTIME 0.00 0.35 0.00 0.00 0.00_____________________________ 0.00 649-0000-51140 CERTIFICATES 0.00 3.34 0.00 0.00 0.00_____________________________ 0.00 649-0000-51200 SOCIAL SECURITY / MEDICARE 0.00 91.76 0.00 0.00 0.00_____________________________ 0.00 649-0000-51210 PERS-PENSION 0.00 109.20 0.00 0.00 0.00_____________________________ 0.00 649-0000-51220 BENEFITS 0.00 9.02 0.00 0.00 0.00_____________________________ 0.00 649-0000-51230 INSURANCE-MED,DEN,VISION 0.00 159.39 0.00 0.00 0.00_____________________________ 0.00 649-0000-51310 WORKERS COMP 0.00 0.00 0.00 1,730.23 0.00_____________________________ 1,834.89 ExpCategory: 51 - Salaries & Benefits Total: 0.00 993.78 0.00 1,730.23 0.00 1,834.89 0.00 ExpCategory: 52 - Services & Supplies
649-0000-52049 PRINTING & ADVERTISING 1,284.72 0.00 1,323.00 0.00 1,363.00 0.00 1,404.00 649-0000-52060 CITY ADMINISTRATION 26,035.11 0.00 26,816.00 0.00 27,621.00_____________________________ 0.00 649-0000-52069 COUNTY COLLECTION FEE 5,205.00 749.44 5,205.00 767.32 5,205.00 787.90 5,205.00 649-0000-52070 DISTRICT ADMINISTRATION 5,000.00 0.00 5,000.00 2,000.00 5,000.00 2,000.00 5,000.00 649-0000-52080 FLEET SERVICES 0.00 107.10 0.00 0.00 0.00_____________________________ 0.00 649-0000-52085 FUEL 0.00 798.94 0.00 65.70 0.00_____________________________ 0.00 649-0000-52091 TRAVEL, MEETINGS & TRAINING 0.00 1.50 0.00 0.00 0.00_____________________________ 0.00 649-0000-52120 CONTINGENCY 2,507.98 0.00 2,583.00 0.00 2,661.00 0.00 2,741.00 649-0000-52200 PROFESSIONAL SERVICES/FEES 0.00 6,660.14 0.00 4,061.16 0.00_____________________________ 4,071.02 314
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:28:29 PM Page 6 of 13
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
649-0000-52210 ENGINEERING 1,317.17 0.00 1,357.00 0.00 1,397.00 0.00 1,439.00 649-0000-52415 CELLULAR PHONE 0.00 178.01 0.00 0.00 0.00_____________________________ 0.00 649-0000-52518 FACILITIES EXPENSE 0.00 2.63 0.00 0.00 0.00_____________________________ 0.00 649-0000-52519 MAINTENANCE 0.00 132.20 289,001.00 6,713.07 0.00_____________________________ 0.00 649-0000-52520 MAINTENANCE AGREEMENTS 0.00 405.19 0.00 16.83 0.00_____________________________ 0.00 649-0000-52523 PERCOLATION POND 6,583.43 0.00 6,781.00 0.00 6,984.00 0.00 7,194.00 649-0000-52525 REPAIRS & MAINTENANCE SUP… 0.00 147.30 0.00 0.00 0.00_____________________________ 0.00 649-0000-52529 STORM DRAIN MAINTENANCE 3,260.06 0.00 3,358.00 0.00 3,459.00 2,565.00 3,562.00 649-0000-52532 STREET SWEEPING 13,792.58 8,648.01 14,206.00 9,677.00 14,633.00 1,524.40 15,072.00 ExpCategory: 52 - Services & Supplies Total: 64,986.05 17,830.46 355,630.00 23,301.08 68,323.00 10,948.32 41,617.00 ExpCategory: 57 - Capital Outlay
649-0000-57000 CAPITAL PROJECTS 0.00 151.18 0.00 91,701.49 70,000.00 22,619.44 680,000.00 ExpCategory: 57 - Capital Outlay Total: 0.00 151.18 0.00 91,701.49 70,000.00 22,619.44 680,000.00 ExpCategory: 59 - Transfers Out
649-0000-59000 TRANSFER OUT 0.00 0.00 0.00 26,816.00 0.00 27,621.00 28,449.00 ExpCategory: 59 - Transfers Out Total: 0.00 0.00 0.00 26,816.00 0.00 27,621.00 28,449.00 Department: 0000 - 0000 Total: 64,986.05 18,975.42 355,630.00 143,548.80 138,323.00 63,023.65 750,066.00 Expense Total: 64,986.05 18,975.42 355,630.00 143,548.80 138,323.00 63,023.65 750,066.00 Fund: 649 - DIAMOND RIDGE BAD-PH 1 Surplus (Deficit): 22,968.95 89,820.57 -265,454.00 -30,333.60 -19,859.00 62,912.56 -631,014.00 315
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:28:29 PM Page 7 of 13
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
Fund: 650 - DIAMOND RIDGE PARKS
Revenue
Department: 0000 - 0000
RevCategory: 40 - Property Taxes
650-0000-40100 PROPERTY TAX - SECURED 162,410.00 158,493.98 163,676.00 163,978.84 166,966.00 166,131.98 173,306.00 RevCategory: 40 - Property Taxes Total: 162,410.00 158,493.98 163,676.00 163,978.84 166,966.00 166,131.98 173,306.00 RevCategory: 48 - Other Revenue
650-0000-48410 INTEREST REVENUE 150.00 13,932.77 150.00 18,550.08 10,000.00 17,873.93 10,000.00 RevCategory: 48 - Other Revenue Total: 150.00 13,932.77 150.00 18,550.08 10,000.00 17,873.93 10,000.00 Department: 0000 - 0000 Total: 162,560.00 172,426.75 163,826.00 182,528.92 176,966.00 184,005.91 183,306.00 Revenue Total: 162,560.00 172,426.75 163,826.00 182,528.92 176,966.00 184,005.91 183,306.00 Expense
Department: 0000 - 0000
ExpCategory: 51 - Salaries & Benefits
650-0000-51100 SALARIES 0.00 592.42 0.00 0.00 0.00_____________________________ 0.00 650-0000-51130 OVERTIME 0.00 0.35 0.00 0.00 0.00_____________________________ 0.00 650-0000-51140 CERTIFICATES 0.00 3.34 0.00 0.00 0.00_____________________________ 0.00 650-0000-51200 SOCIAL SECURITY / MEDICARE 0.00 87.39 0.00 0.00 0.00_____________________________ 0.00 650-0000-51210 PERS-PENSION 0.00 103.79 0.00 0.00 0.00_____________________________ 0.00 650-0000-51220 BENEFITS 0.00 8.63 0.00 0.00 0.00_____________________________ 0.00 650-0000-51230 INSURANCE-MED,DEN,VISION 0.00 159.39 0.00 0.00 0.00_____________________________ 0.00 650-0000-51310 WORKERS COMP 0.00 0.00 0.00 2,247.35 0.00_____________________________ 2,382.21 ExpCategory: 51 - Salaries & Benefits Total: 0.00 955.31 0.00 2,247.35 0.00 2,382.21 0.00 ExpCategory: 52 - Services & Supplies
650-0000-52049 PRINTING & ADVERTISING 645.20 0.00 665.00 0.00 684.00 0.00 705.00 650-0000-52060 CITY ADMINISTRATION 26,856.63 0.00 27,662.00 0.00 28,492.00_____________________________ 0.00 650-0000-52069 COUNTY COLLECTION FEE 5,205.00 0.00 5,205.00 0.00 5,205.00 0.00 5,205.00 650-0000-52070 DISTRICT ADMINISTRATION 5,000.00 0.00 5,000.00 2,000.00 5,000.00 2,000.00 5,000.00 650-0000-52080 FLEET SERVICES 0.00 88.02 0.00 0.00 0.00_____________________________ 0.00 650-0000-52085 FUEL 0.00 1,159.76 0.00 83.08 0.00_____________________________ 0.00 650-0000-52091 TRAVEL, MEETINGS & TRAINING 0.00 1.50 0.00 0.00 0.00_____________________________ 0.00 650-0000-52200 PROFESSIONAL SERVICES/FEES 0.00 6,660.14 0.00 4,061.50 0.00_____________________________ 4,071.02 650-0000-52415 CELLULAR PHONE 0.00 291.29 0.00 0.00 0.00_____________________________ 0.00 316
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:28:29 PM Page 8 of 13
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
650-0000-52421 PARK/LANDSCAPE ELECTRICAL … 658.59 627.50 652.00 1,022.51 672.00 5,102.00 692.00 650-0000-52422 STREET LIGHTING 626.93 0.00 621.00 361.29 640.00 675.00 659.00 650-0000-52430 PARK WATER CHARGES 6,708.82 37,764.93 6,644.00 33,720.84 6,844.00 34,969.76 7,049.00 650-0000-52432 STREET LANDSCAPE WATER CH… 4,607.67 0.00 4,563.00 0.00 4,700.00 600.00 4,841.00 650-0000-52518 FACILITIES EXPENSE 0.00 39.69 0.00 0.00 0.00_____________________________ 238.05 650-0000-52519 MAINTENANCE 15,134.10 13,572.15 15,588.00 38,560.37 16,056.00 63,135.77 16,537.00 650-0000-52520 MAINTENANCE AGREEMENTS 0.00 437.13 0.00 7.67 0.00_____________________________ 0.00 650-0000-52524 PLANTER WALL MAINTENANCE 1,843.07 0.00 1,825.00 0.00 1,880.00 0.00 1,937.00 650-0000-52525 REPAIRS & MAINTENANCE SUP… 0.00 699.71 0.00 10.47 0.00_____________________________ 480.45 650-0000-52528 SOUND WALL RESERVE 1,448.65 0.00 1,435.00 0.00 1,478.00 0.00 1,522.00 ExpCategory: 52 - Services & Supplies Total: 68,734.66 61,341.82 69,860.00 79,827.73 71,651.00 111,272.05 44,147.00 ExpCategory: 57 - Capital Outlay
650-0000-57000 CAPITAL OUTLAY - IMPROVEM… 0.00 0.00 0.00 0.00 0.00 0.00 15,000.00 ExpCategory: 57 - Capital Outlay Total: 0.00 0.00 0.00 0.00 0.00 0.00 15,000.00 ExpCategory: 59 - Transfers Out
650-0000-59000 TRANSFER OUT 0.00 0.00 0.00 27,662.00 0.00 28,492.00 29,347.00 ExpCategory: 59 - Transfers Out Total: 0.00 0.00 0.00 27,662.00 0.00 28,492.00 29,347.00 Department: 0000 - 0000 Total: 68,734.66 62,297.13 69,860.00 109,737.08 71,651.00 142,146.26 88,494.00 Expense Total: 68,734.66 62,297.13 69,860.00 109,737.08 71,651.00 142,146.26 88,494.00 Fund: 650 - DIAMOND RIDGE PARKS Surplus (Deficit): 93,825.34 110,129.62 93,966.00 72,791.84 105,315.00 41,859.65 94,812.00 317
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:28:29 PM Page 9 of 13
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
Fund: 651 - MIRAVALE/ORCHARD LANDSCAP
Revenue
Department: 0000 - 0000
RevCategory: 00 - 00
651-0000-48026 MISCELLANEOUS REVENUE 0.00 0.00 0.00 0.00 0.00_____________________________ 685.00 RevCategory: 00 - 00 Total: 0.00 0.00 0.00 0.00 0.00 685.00 0.00 RevCategory: 40 - Property Taxes
651-0000-40100 PROPERTY TAX - SECURED 415,203.00 328,416.30 406,029.00 169,870.52 366,709.00 380,867.89 390,673.00 RevCategory: 40 - Property Taxes Total: 415,203.00 328,416.30 406,029.00 169,870.52 366,709.00 380,867.89 390,673.00 RevCategory: 48 - Other Revenue
651-0000-48410 INTEREST REVENUE 2,500.00 55,685.86 2,500.00 58,077.36 30,000.00 46,678.32 30,000.00 RevCategory: 48 - Other Revenue Total: 2,500.00 55,685.86 2,500.00 58,077.36 30,000.00 46,678.32 30,000.00 Department: 0000 - 0000 Total: 417,703.00 384,102.16 408,529.00 227,947.88 396,709.00 428,231.21 420,673.00 Revenue Total: 417,703.00 384,102.16 408,529.00 227,947.88 396,709.00 428,231.21 420,673.00 Expense
Department: 0000 - 0000
ExpCategory: 51 - Salaries & Benefits
651-0000-51100 SALARIES 0.00 785.00 0.00 0.00 0.00_____________________________ 0.00 651-0000-51130 OVERTIME 0.00 0.61 0.00 0.00 0.00_____________________________ 0.00 651-0000-51140 CERTIFICATES 0.00 3.90 0.00 0.00 0.00_____________________________ 0.00 651-0000-51200 SOCIAL SECURITY / MEDICARE 0.00 115.18 0.00 0.00 0.00_____________________________ 0.00 651-0000-51210 PERS-PENSION 0.00 133.68 0.00 0.00 0.00_____________________________ 0.00 651-0000-51220 BENEFITS 0.00 11.64 0.00 0.00 0.00_____________________________ 0.00 651-0000-51230 INSURANCE-MED,DEN,VISION 0.00 228.10 0.00 0.00 0.00_____________________________ 0.00 651-0000-51310 WORKERS COMP 0.00 0.00 0.00 2,703.70 0.00_____________________________ 2,866.54 ExpCategory: 51 - Salaries & Benefits Total: 0.00 1,278.11 0.00 2,703.70 0.00 2,866.54 0.00 ExpCategory: 52 - Services & Supplies
651-0000-52046 GRAFFITI REMOVAL SUPPLIES 20,900.85 0.00 21,528.00 1,395.00 22,174.00 0.00 22,839.00 651-0000-52049 PRINTING & ADVERTISING 628.42 0.00 647.00 0.00 667.00 151.64 687.00 651-0000-52060 CITY ADMINISTRATION 28,347.76 0.00 29,198.00 0.00 30,074.00_____________________________ 0.00 651-0000-52069 COUNTY COLLECTION FEE 3,673.18 1,715.92 3,673.00 1,968.10 3,673.00 216.86 3,673.00 651-0000-52070 DISTRICT ADMINISTRATION 5,281.84 0.00 5,282.00 2,000.00 5,282.00 2,000.00 5,282.00 651-0000-52080 FLEET SERVICES 0.00 153.14 0.00 0.00 0.00_____________________________ 0.00 318
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:28:29 PM Page 10 of 13
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
651-0000-52085 FUEL 0.00 1,584.24 0.00 113.61 0.00_____________________________ 0.00 651-0000-52091 TRAVEL, MEETINGS & TRAINING 0.00 2.50 0.00 0.00 0.00_____________________________ 0.00 651-0000-52200 PROFESSIONAL SERVICES/FEES 0.00 5,793.68 0.00 1,444.94 0.00_____________________________ 1,658.93 651-0000-52400 UTILITIES 0.00 250.97 0.00 8,092.36 0.00_____________________________ 20,999.26 651-0000-52415 CELLULAR PHONE 0.00 393.81 0.00 0.00 0.00_____________________________ 0.00 651-0000-52422 STREET LIGHTING 70,379.74 10,283.98 72,491.00 7,697.25 74,666.00 2,281.64 76,906.00 651-0000-52516 LANDSCAPE MAINT. (EASEMEN… 145,700.30 164,386.17 150,071.00 202,393.50 154,573.00 199,252.85 159,211.00 651-0000-52518 FACILITIES EXPENSE 0.00 2.63 0.00 13.10 0.00_____________________________ 0.00 651-0000-52520 MAINTENANCE AGREEMENTS 0.00 608.21 0.00 10.30 0.00_____________________________ 0.00 651-0000-52522 PARK MAINTENANCE 101,100.00 53,356.57 101,100.00 58,839.27 101,100.00 66,488.54 101,100.00 651-0000-52525 REPAIRS & MAINTENANCE SUP… 0.00 162.92 0.00 54.30 0.00_____________________________ 1,515.29 651-0000-52532 STREET SWEEPING 0.00 8,647.99 0.00 9,677.12 0.00_____________________________ 3,045.94 ExpCategory: 52 - Services & Supplies Total: 376,012.09 247,342.73 383,990.00 293,698.85 392,209.00 297,610.95 369,698.00 ExpCategory: 59 - Transfers Out
651-0000-59000 TRANSFER OUT 0.00 0.00 0.00 29,198.00 0.00 30,074.00 30,976.00 ExpCategory: 59 - Transfers Out Total: 0.00 0.00 0.00 29,198.00 0.00 30,074.00 30,976.00 Department: 0000 - 0000 Total: 376,012.09 248,620.84 383,990.00 325,600.55 392,209.00 330,551.49 400,674.00 Expense Total: 376,012.09 248,620.84 383,990.00 325,600.55 392,209.00 330,551.49 400,674.00 Fund: 651 - MIRAVALE/ORCHARD LANDSCAP Surplus (Deficit): 41,690.91 135,481.32 24,539.00 -97,652.67 4,500.00 97,679.72 19,999.00 319
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:28:29 PM Page 11 of 13
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
Fund: 652 - MIRAVALE/ORCHARD BENEFIT
Revenue
Department: 0000 - 0000
RevCategory: 40 - Property Taxes
652-0000-40100 PROPERTY TAX - SECURED 139,920.00 151,235.91 156,099.00 341,766.21 173,400.00 184,182.24 189,392.00 RevCategory: 40 - Property Taxes Total: 139,920.00 151,235.91 156,099.00 341,766.21 173,400.00 184,182.24 189,392.00 RevCategory: 48 - Other Revenue
652-0000-48410 INTEREST REVENUE 475.00 21,678.60 475.00 31,184.31 20,000.00 36,198.73 20,000.00 RevCategory: 48 - Other Revenue Total: 475.00 21,678.60 475.00 31,184.31 20,000.00 36,198.73 20,000.00 Department: 0000 - 0000 Total: 140,395.00 172,914.51 156,574.00 372,950.52 193,400.00 220,380.97 209,392.00 Revenue Total: 140,395.00 172,914.51 156,574.00 372,950.52 193,400.00 220,380.97 209,392.00 Expense
Department: 0000 - 0000
ExpCategory: 51 - Salaries & Benefits
652-0000-51100 SALARIES 0.00 502.87 0.00 0.00 0.00_____________________________ 860.68 652-0000-51130 OVERTIME 0.00 0.35 0.00 0.00 0.00_____________________________ 0.00 652-0000-51140 CERTIFICATES 0.00 2.92 0.00 0.00 0.00_____________________________ 0.00 652-0000-51200 SOCIAL SECURITY / MEDICARE 0.00 73.84 0.00 0.00 0.00_____________________________ 66.25 652-0000-51210 PERS-PENSION 0.00 87.96 0.00 0.00 0.00_____________________________ 0.00 652-0000-51220 BENEFITS 0.00 7.38 0.00 0.00 0.00_____________________________ 0.00 652-0000-51230 INSURANCE-MED,DEN,VISION 0.00 143.58 0.00 0.00 0.00_____________________________ 0.00 652-0000-51310 WORKERS COMP 0.00 0.00 0.00 1,871.26 0.00_____________________________ 1,983.54 ExpCategory: 51 - Salaries & Benefits Total: 0.00 818.90 0.00 1,871.26 0.00 2,910.47 0.00 ExpCategory: 52 - Services & Supplies
652-0000-52049 PRINTING & ADVERTISING 624.26 0.00 643.00 0.00 680.00 0.00 700.00 652-0000-52060 CITY ADMINISTRATION 27,414.32 0.00 28,237.00 0.00 29,866.00_____________________________ 0.00 652-0000-52069 COUNTY COLLECTION FEE 3,661.74 0.00 3,662.00 0.00 3,662.00 0.00 3,662.00 652-0000-52070 DISTRICT ADMINISTRATION 5,281.84 0.00 5,282.00 2,000.00 5,282.00 2,000.00 5,282.00 652-0000-52080 FLEET SERVICES 0.00 68.39 0.00 0.00 0.00_____________________________ 0.00 652-0000-52085 FUEL 0.00 680.61 0.00 53.03 0.00_____________________________ 0.00 652-0000-52091 TRAVEL, MEETINGS & TRAINING 0.00 1.00 0.00 0.00 0.00_____________________________ 0.00 652-0000-52200 PROFESSIONAL SERVICES/FEES 0.00 4,660.02 0.00 64.59 0.00_____________________________ 71.03 652-0000-52210 ENGINEERING 1,357.13 3.00 1,398.00 0.00 1,478.00 0.00 1,523.00 320
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:28:29 PM Page 12 of 13
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
652-0000-52415 CELLULAR PHONE 0.00 162.83 0.00 0.00 0.00_____________________________ 0.00 652-0000-52510 DETENTION BASIN MAINTENA… 3,651.90 0.00 3,761.00 0.00 3,978.00 0.00 4,098.00 652-0000-52517 BRYANT CANYON CHANNEL 5,413.55 0.00 5,576.00 0.00 5,898.00 0.00 6,075.00 652-0000-52518 FACILITIES EXPENSE 0.00 1.31 0.00 0.00 0.00_____________________________ 0.00 652-0000-52520 MAINTENANCE AGREEMENTS 0.00 348.92 0.00 5.95 0.00_____________________________ 0.00 652-0000-52525 REPAIRS & MAINTENANCE SUP… 0.00 76.24 243,369.00 0.00 0.00_____________________________ 0.00 652-0000-52529 STORM DRAIN MAINTENANCE 4,172.54 0.00 4,298.00 0.00 4,546.00 0.00 4,682.00 652-0000-52532 STREET SWEEPING 10,686.02 0.00 11,007.00 0.00 11,642.00 0.00 11,991.00 ExpCategory: 52 - Services & Supplies Total: 62,263.30 6,002.32 307,233.00 2,123.57 67,032.00 2,071.03 38,013.00 ExpCategory: 57 - Capital Outlay
652-0000-57000 CAPITAL PROJECTS 0.00 127.30 0.00 77,222.26 30,000.00 19,797.25 833,677.00 ExpCategory: 57 - Capital Outlay Total: 0.00 127.30 0.00 77,222.26 30,000.00 19,797.25 833,677.00 ExpCategory: 59 - Transfers Out
652-0000-59000 TRANSFER OUT 0.00 0.00 0.00 28,237.00 0.00 29,866.00 30,762.00 ExpCategory: 59 - Transfers Out Total: 0.00 0.00 0.00 28,237.00 0.00 29,866.00 30,762.00 Department: 0000 - 0000 Total: 62,263.30 6,948.52 307,233.00 109,454.09 97,032.00 54,644.75 902,452.00 Expense Total: 62,263.30 6,948.52 307,233.00 109,454.09 97,032.00 54,644.75 902,452.00 Fund: 652 - MIRAVALE/ORCHARD BENEFIT Surplus (Deficit): 78,131.70 165,965.99 -150,659.00 263,496.43 96,368.00 165,736.22 -693,060.00 Report Surplus (Deficit): 242,538.47 635,662.04 -254,385.00 281,371.89 222,348.00 454,042.93 -1,196,043.00 321
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:28:29 PM Page 13 of 13
Fund Summary
Fund
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Budget
2023-2024
Total Budget
Defined Budgets
2024-2025
Total Activity
2023-2024
Total Activity
2026-2027
2026-2027
646 - VINEYARDS ASSMNT DIST 5,306.24 26,177.59 21,766.00 6,903.51 11,250.00 16,251.28 3,905.00 647 - RANCHO SAN VICENTE-CHISPA -10,059.67 59,418.63 -10,218.00 38,161.10 -2,379.00 31,521.45 -2,547.00 648 - DIAMOND RIDGE ASSMENT DIS 10,675.00 48,668.32 31,675.00 28,005.28 27,153.00 38,082.05 11,862.00 649 - DIAMOND RIDGE BAD-PH 1 22,968.95 89,820.57 -265,454.00 -30,333.60 -19,859.00 62,912.56 -631,014.00 650 - DIAMOND RIDGE PARKS 93,825.34 110,129.62 93,966.00 72,791.84 105,315.00 41,859.65 94,812.00 651 - MIRAVALE/ORCHARD LANDSCAP 41,690.91 135,481.32 24,539.00 -97,652.67 4,500.00 97,679.72 19,999.00 652 - MIRAVALE/ORCHARD BENEFIT 78,131.70 165,965.99 -150,659.00 263,496.43 96,368.00 165,736.22 -693,060.00 Report Surplus (Deficit): 242,538.47 635,662.04 -254,385.00 281,371.89 222,348.00 454,042.93 -1,196,043.00 322
FY 2026-27 BUDGET NARRATIVE
Name of Activity: Impact Fees
Account #770-0000 to 776-0000
Funding Source: Impact Fees
Budget Overview
Development impact fees are one-time fees charged to new development to help fund the public infrastructure and facilities needed to accommodate community growth. These fees help ensure that new development pays its proportionate share of growth-related capital costs, rather than shifting those costs to existing residents and businesses.

The City of Soledad collects development impact fees to support eligible capital improvements necessary to serve new development. Depending on the specific fee, revenues may help fund improvements to streets and transportation infrastructure, parks and recreational facilities, water, wastewater and stormwater systems, public safety facilities, and other infrastructure needed to support a growing community.

Impact fee revenues are restricted and may only be used for eligible growth-related capital improvements consistent with the purpose for which each fee was collected. They generally cannot be used to fund routine City operations or ongoing maintenance. The City must administer and expend these funds in accordance with its adopted impact fee program and applicable state law, ensuring a reasonable relationship between new development and the facilities funded through the fees.

FY 2025-26 Budget Accomplishments
• Acquired adjacent property at 1232 Monterey Street to expand Vosti Park. • Completed and the Council adopted the Toledo Basin (Gabilan Pond Park) Conceptual Design
Performance Objectives/Projects to be Delivered in FY 2026-27 • Update the City’s Development Impact Fee Study to ensure that new development pays its appropriate share of growth-related infrastructure and facility costs, including development within the Miramonte Specific Plan area.
• Conduct a comprehensive assessment of City Hall facilities to evaluate existing conditions, space needs, and improvements necessary to accommodate future organizational and community growth.
323
• Pursue grant funding for improvements to Chester Aaroe Park, including development of currently underutilized areas and the addition of new recreational amenities to better serve the community.
324
8/10/2026 12:42:38 PM Page 1 of 10
Budget Worksheet
Soledad, CA Account Summary
For Fiscal: 2025-2026 Period Ending: 06/30/2026
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
Fund: 770 - PARK IMPACT
Revenue
Department: 0000 - 0000
RevCategory: 48 - Other Revenue
770-0000-48100 IMPACT FEES 645,190.00 149,311.80 400,000.00 11,809.49 200,000.00 41,801.33 40,000.00 770-0000-48410 INTEREST REVENUE 3,000.00 16,289.03 6,000.00 17,202.20 10,000.00 8,822.11 7,500.00 RevCategory: 48 - Other Revenue Total: 648,190.00 165,600.83 406,000.00 29,011.69 210,000.00 50,623.44 47,500.00 Department: 0000 - 0000 Total: 648,190.00 165,600.83 406,000.00 29,011.69 210,000.00 50,623.44 47,500.00 Revenue Total: 648,190.00 165,600.83 406,000.00 29,011.69 210,000.00 50,623.44 47,500.00 Expense
Department: 0000 - 0000
ExpCategory: 52 - Services & Supplies
770-0000-52200 PROFESSIONAL SERVICES/FEES 0.00 0.00 0.00 38,665.08 0.00_____________________________ 5,039.47 ExpCategory: 52 - Services & Supplies Total: 0.00 0.00 0.00 38,665.08 0.00 5,039.47 0.00 ExpCategory: 57 - Capital Outlay
770-0000-57000 CAPITAL OUTLAY - IMPROVEM… 0.00 99,174.44 370,000.00 235,910.23 455,000.00 342,719.04 20,000.00 ExpCategory: 57 - Capital Outlay Total: 0.00 99,174.44 370,000.00 235,910.23 455,000.00 342,719.04 20,000.00 ExpCategory: 59 - Transfers Out
770-0000-59000 TRANSFER OUT 19,356.00 0.00 12,000.00 354.28 6,000.00 1,254.04 6,000.00 ExpCategory: 59 - Transfers Out Total: 19,356.00 0.00 12,000.00 354.28 6,000.00 1,254.04 6,000.00 Department: 0000 - 0000 Total: 19,356.00 99,174.44 382,000.00 274,929.59 461,000.00 349,012.55 26,000.00 Expense Total: 19,356.00 99,174.44 382,000.00 274,929.59 461,000.00 349,012.55 26,000.00 Fund: 770 - PARK IMPACT Surplus (Deficit): 628,834.00 66,426.39 24,000.00 -245,917.90 -251,000.00 -298,389.11 21,500.00 325
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:42:38 PM Page 2 of 10
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
Fund: 771 - POLICE IMPACT
Revenue
Department: 0000 - 0000
RevCategory: 48 - Other Revenue
771-0000-48100 IMPACT FEES 0.00 7,104.55 6,500.00 177.85 6,500.00 0.00 5,000.00 771-0000-48410 INTEREST REVENUE 0.00 1,136.93 750.00 1,365.35 750.00 1,176.41 750.00 RevCategory: 48 - Other Revenue Total: 0.00 8,241.48 7,250.00 1,543.20 7,250.00 1,176.41 5,750.00 Department: 0000 - 0000 Total: 0.00 8,241.48 7,250.00 1,543.20 7,250.00 1,176.41 5,750.00 Revenue Total: 0.00 8,241.48 7,250.00 1,543.20 7,250.00 1,176.41 5,750.00 Expense
Department: 0000 - 0000
ExpCategory: 52 - Services & Supplies
771-0000-52200 PROFESSIONAL SERVICES/FEES 0.00 0.00 0.00 0.00 0.00_____________________________ 265.47 ExpCategory: 52 - Services & Supplies Total: 0.00 0.00 0.00 0.00 0.00 265.47 0.00 ExpCategory: 59 - Transfers Out
771-0000-59000 TRANSFER OUT 0.00 0.00 195.00 5.34 195.00 0.00 150.00 ExpCategory: 59 - Transfers Out Total: 0.00 0.00 195.00 5.34 195.00 0.00 150.00 Department: 0000 - 0000 Total: 0.00 0.00 195.00 5.34 195.00 265.47 150.00 Expense Total: 0.00 0.00 195.00 5.34 195.00 265.47 150.00 Fund: 771 - POLICE IMPACT Surplus (Deficit): 0.00 8,241.48 7,055.00 1,537.86 7,055.00 910.94 5,600.00 326
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:42:38 PM Page 3 of 10
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
Fund: 772 - FIRE IMPACT
Revenue
Department: 0000 - 0000
RevCategory: 48 - Other Revenue
772-0000-48100 IMPACT FEES 30,000.00 40,239.60 40,000.00 2,159.70 40,000.00 0.00 10,000.00 772-0000-48410 INTEREST REVENUE 1,500.00 15,566.35 12,000.00 16,936.45 12,000.00 7,659.39 6,000.00 RevCategory: 48 - Other Revenue Total: 31,500.00 55,805.95 52,000.00 19,096.15 52,000.00 7,659.39 16,000.00 Department: 0000 - 0000 Total: 31,500.00 55,805.95 52,000.00 19,096.15 52,000.00 7,659.39 16,000.00 Revenue Total: 31,500.00 55,805.95 52,000.00 19,096.15 52,000.00 7,659.39 16,000.00 Expense
Department: 0000 - 0000
ExpCategory: 52 - Services & Supplies
772-0000-52030 ORDINANCE & PUBLISHINGS 0.00 0.00 0.00 159.04 0.00_____________________________ 0.00 772-0000-52200 PROFESSIONAL SERVICES/FEES 0.00 0.00 0.00 50,442.09 0.00_____________________________ 265.47 ExpCategory: 52 - Services & Supplies Total: 0.00 0.00 0.00 50,601.13 0.00 265.47 0.00 ExpCategory: 57 - Capital Outlay
772-0000-57000 CAPITAL OUTLAY - IMPROVEM… 0.00 0.00 0.00 353,795.42 125,000.00_____________________________ 111,832.76 ExpCategory: 57 - Capital Outlay Total: 0.00 0.00 0.00 353,795.42 125,000.00 111,832.76 0.00 ExpCategory: 59 - Transfers Out
772-0000-59000 TRANSFER OUT 900.00 0.00 1,200.00 64.80 1,200.00 0.00 300.00 ExpCategory: 59 - Transfers Out Total: 900.00 0.00 1,200.00 64.80 1,200.00 0.00 300.00 Department: 0000 - 0000 Total: 900.00 0.00 1,200.00 404,461.35 126,200.00 112,098.23 300.00 Expense Total: 900.00 0.00 1,200.00 404,461.35 126,200.00 112,098.23 300.00 Fund: 772 - FIRE IMPACT Surplus (Deficit): 30,600.00 55,805.95 50,800.00 -385,365.20 -74,200.00 -104,438.84 15,700.00 327
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:42:38 PM Page 4 of 10
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
Fund: 773 - GENERAL GOV. IMPACT
Revenue
Department: 0000 - 0000
RevCategory: 48 - Other Revenue
773-0000-48100 IMPACT FEES 392,665.00 108,831.17 200,000.00 32,649.15 200,000.00 62,346.53 60,000.00 773-0000-48410 INTEREST REVENUE 500.00 20,610.59 15,000.00 24,044.83 15,000.00 23,114.23 12,000.00 RevCategory: 48 - Other Revenue Total: 393,165.00 129,441.76 215,000.00 56,693.98 215,000.00 85,460.76 72,000.00 Department: 0000 - 0000 Total: 393,165.00 129,441.76 215,000.00 56,693.98 215,000.00 85,460.76 72,000.00 Revenue Total: 393,165.00 129,441.76 215,000.00 56,693.98 215,000.00 85,460.76 72,000.00 Expense
Department: 0000 - 0000
ExpCategory: 52 - Services & Supplies
773-0000-52200 PROFESSIONAL SERVICES/FEES 0.00 0.00 0.00 9,721.67 0.00 12,143.47 2,750.00 ExpCategory: 52 - Services & Supplies Total: 0.00 0.00 0.00 9,721.67 0.00 12,143.47 2,750.00 ExpCategory: 57 - Capital Outlay
773-0000-57000 CAPITAL OUTLAY - IMPROVEM… 50,000.00 0.00 0.00 0.00 0.00 0.00 100,000.00 ExpCategory: 57 - Capital Outlay Total: 50,000.00 0.00 0.00 0.00 0.00 0.00 100,000.00 ExpCategory: 59 - Transfers Out
773-0000-59000 TRANSFER OUT 11,780.00 0.00 6,000.00 979.47 6,000.00 1,870.40 1,800.00 ExpCategory: 59 - Transfers Out Total: 11,780.00 0.00 6,000.00 979.47 6,000.00 1,870.40 1,800.00 Department: 0000 - 0000 Total: 61,780.00 0.00 6,000.00 10,701.14 6,000.00 14,013.87 104,550.00 Expense Total: 61,780.00 0.00 6,000.00 10,701.14 6,000.00 14,013.87 104,550.00 Fund: 773 - GENERAL GOV. IMPACT Surplus (Deficit): 331,385.00 129,441.76 209,000.00 45,992.84 209,000.00 71,446.89 -32,550.00 328
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:42:38 PM Page 5 of 10
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
Fund: 774 - TRANSPORTATION IMPACT
Revenue
Department: 0000 - 0000
RevCategory: 48 - Other Revenue
774-0000-48100 IMPACT FEES 489,120.00 243,738.78 300,000.00 127,419.24 300,000.00 113,223.13 100,000.00 774-0000-48410 INTEREST REVENUE 2,000.00 50,479.22 35,000.00 57,668.49 35,000.00 54,535.06 35,000.00 RevCategory: 48 - Other Revenue Total: 491,120.00 294,218.00 335,000.00 185,087.73 335,000.00 167,758.19 135,000.00 Department: 0000 - 0000 Total: 491,120.00 294,218.00 335,000.00 185,087.73 335,000.00 167,758.19 135,000.00 Revenue Total: 491,120.00 294,218.00 335,000.00 185,087.73 335,000.00 167,758.19 135,000.00 Expense
Department: 0000 - 0000
ExpCategory: 52 - Services & Supplies
774-0000-52200 PROFESSIONAL SERVICES/FEES 11,050.00 53,025.75 25,000.00 36,981.67 25,000.00 3,023.47 2,750.00 ExpCategory: 52 - Services & Supplies Total: 11,050.00 53,025.75 25,000.00 36,981.67 25,000.00 3,023.47 2,750.00 ExpCategory: 57 - Capital Outlay
774-0000-57000 CAPITAL OUTLAY - IMPROVEM… 0.00 0.00 150,000.00 0.00 150,000.00 0.00 50,000.00 ExpCategory: 57 - Capital Outlay Total: 0.00 0.00 150,000.00 0.00 150,000.00 0.00 50,000.00 ExpCategory: 59 - Transfers Out
774-0000-59000 TRANSFER OUT 14,674.00 0.00 9,000.00 3,822.58 9,000.00 3,396.69 3,000.00 ExpCategory: 59 - Transfers Out Total: 14,674.00 0.00 9,000.00 3,822.58 9,000.00 3,396.69 3,000.00 Department: 0000 - 0000 Total: 25,724.00 53,025.75 184,000.00 40,804.25 184,000.00 6,420.16 55,750.00 Expense Total: 25,724.00 53,025.75 184,000.00 40,804.25 184,000.00 6,420.16 55,750.00 Fund: 774 - TRANSPORTATION IMPACT Surplus (Deficit): 465,396.00 241,192.25 151,000.00 144,283.48 151,000.00 161,338.03 79,250.00 329
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:42:38 PM Page 6 of 10
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
Fund: 775 - STORM DRAIN IMPACT
Revenue
Department: 0000 - 0000
RevCategory: 48 - Other Revenue
775-0000-48100 IMPACT FEES 165,430.00 158,426.65 165,000.00 20,098.54 165,000.00 102,664.89 100,000.00 775-0000-48410 INTEREST REVENUE 0.00 10,685.86 8,500.00 870.32 8,500.00 3,610.32 2,000.00 RevCategory: 48 - Other Revenue Total: 165,430.00 169,112.51 173,500.00 20,968.86 173,500.00 106,275.21 102,000.00 Department: 0000 - 0000 Total: 165,430.00 169,112.51 173,500.00 20,968.86 173,500.00 106,275.21 102,000.00 Revenue Total: 165,430.00 169,112.51 173,500.00 20,968.86 173,500.00 106,275.21 102,000.00 Expense
Department: 0000 - 0000
ExpCategory: 52 - Services & Supplies
775-0000-52200 PROFESSIONAL SERVICES/FEES 0.00 0.00 0.00 11,406.67 0.00 3,023.47 2,750.00 ExpCategory: 52 - Services & Supplies Total: 0.00 0.00 0.00 11,406.67 0.00 3,023.47 2,750.00 ExpCategory: 58 - Debt Service
775-0000-58100 INTEREST 0.00 3,058.46 0.00 152.70 0.00_____________________________ 0.00 ExpCategory: 58 - Debt Service Total: 0.00 3,058.46 0.00 152.70 0.00 0.00 0.00 ExpCategory: 59 - Transfers Out
775-0000-59000 TRANSFER OUT 4,963.00 0.00 4,950.00 602.96 4,950.00 3,079.95 3,000.00 ExpCategory: 59 - Transfers Out Total: 4,963.00 0.00 4,950.00 602.96 4,950.00 3,079.95 3,000.00 Department: 0000 - 0000 Total: 4,963.00 3,058.46 4,950.00 12,162.33 4,950.00 6,103.42 5,750.00 Expense Total: 4,963.00 3,058.46 4,950.00 12,162.33 4,950.00 6,103.42 5,750.00 Fund: 775 - STORM DRAIN IMPACT Surplus (Deficit): 160,467.00 166,054.05 168,550.00 8,806.53 168,550.00 100,171.79 96,250.00 330
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:42:38 PM Page 7 of 10
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
Fund: 776 - PUBLIC SAFETY IMPACT
Revenue
Department: 0000 - 0000
RevCategory: 48 - Other Revenue
776-0000-48100 IMPACT FEES 122,565.00 18,610.64 70,000.00 11,336.93 70,000.00 50,954.43 50,000.00 776-0000-48410 INTEREST REVENUE 0.00 5,146.50 4,000.00 5,785.43 4,000.00 6,775.68 3,000.00 RevCategory: 48 - Other Revenue Total: 122,565.00 23,757.14 74,000.00 17,122.36 74,000.00 57,730.11 53,000.00 Department: 0000 - 0000 Total: 122,565.00 23,757.14 74,000.00 17,122.36 74,000.00 57,730.11 53,000.00 Revenue Total: 122,565.00 23,757.14 74,000.00 17,122.36 74,000.00 57,730.11 53,000.00 Expense
Department: 0000 - 0000
ExpCategory: 52 - Services & Supplies
776-0000-52200 PROFESSIONAL SERVICES/FEES 0.00 0.00 0.00 0.00 0.00 0.00 2,750.00 ExpCategory: 52 - Services & Supplies Total: 0.00 0.00 0.00 0.00 0.00 0.00 2,750.00 ExpCategory: 59 - Transfers Out
776-0000-59000 TRANSFER OUT 3,677.00 0.00 2,100.00 340.11 2,100.00 1,528.63 1,500.00 ExpCategory: 59 - Transfers Out Total: 3,677.00 0.00 2,100.00 340.11 2,100.00 1,528.63 1,500.00 Department: 0000 - 0000 Total: 3,677.00 0.00 2,100.00 340.11 2,100.00 1,528.63 4,250.00 Expense Total: 3,677.00 0.00 2,100.00 340.11 2,100.00 1,528.63 4,250.00 Fund: 776 - PUBLIC SAFETY IMPACT Surplus (Deficit): 118,888.00 23,757.14 71,900.00 16,782.25 71,900.00 56,201.48 48,750.00 331
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:42:38 PM Page 8 of 10
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
Fund: 779 - WATER IMPACT
Revenue
Department: 0000 - 0000
RevCategory: 48 - Other Revenue
779-0000-48100 IMPACT FEES 224,865.00 229,900.26 225,000.00 23,428.06 225,000.00 111,932.24 100,000.00 779-0000-48410 INTEREST REVENUE 600.00 113,006.18 85,000.00 123,052.72 85,000.00 108,691.02 70,000.00 RevCategory: 48 - Other Revenue Total: 225,465.00 342,906.44 310,000.00 146,480.78 310,000.00 220,623.26 170,000.00 Department: 0000 - 0000 Total: 225,465.00 342,906.44 310,000.00 146,480.78 310,000.00 220,623.26 170,000.00 Revenue Total: 225,465.00 342,906.44 310,000.00 146,480.78 310,000.00 220,623.26 170,000.00 Expense
Department: 0000 - 0000
ExpCategory: 52 - Services & Supplies
779-0000-52136 FACILITIES MASTER PLAN 0.00 0.00 0.00 25,872.00 0.00_____________________________ 8,460.00 779-0000-52200 PROFESSIONAL SERVICES/FEES 0.00 0.00 0.00 9,721.67 0.00 3,023.47 2,750.00 ExpCategory: 52 - Services & Supplies Total: 0.00 0.00 0.00 35,593.67 0.00 11,483.47 2,750.00 ExpCategory: 57 - Capital Outlay
779-0000-57000 CAPITAL OUTLAY - IMPROVEM… 0.00 24,680.73 0.00 12,580.98 0.00_____________________________ 3,282.81 ExpCategory: 57 - Capital Outlay Total: 0.00 24,680.73 0.00 12,580.98 0.00 3,282.81 0.00 ExpCategory: 59 - Transfers Out
779-0000-59000 TRANSFER OUT 6,746.00 0.00 6,750.00 702.84 6,750.00 3,357.97 3,000.00 ExpCategory: 59 - Transfers Out Total: 6,746.00 0.00 6,750.00 702.84 6,750.00 3,357.97 3,000.00 Department: 0000 - 0000 Total: 6,746.00 24,680.73 6,750.00 48,877.49 6,750.00 18,124.25 5,750.00 Expense Total: 6,746.00 24,680.73 6,750.00 48,877.49 6,750.00 18,124.25 5,750.00 Fund: 779 - WATER IMPACT Surplus (Deficit): 218,719.00 318,225.71 303,250.00 97,603.29 303,250.00 202,499.01 164,250.00 332
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:42:38 PM Page 9 of 10
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
Fund: 780 - WASTEWATER IMPACT
Revenue
Department: 0000 - 0000
RevCategory: 48 - Other Revenue
780-0000-48100 IMPACT FEES 245,965.00 105,553.80 245,000.00 21,294.87 245,000.00 81,068.71 80,000.00 780-0000-48410 INTEREST REVENUE 1,000.00 17,836.62 12,500.00 21,181.24 12,500.00 21,010.40 10,000.00 RevCategory: 48 - Other Revenue Total: 246,965.00 123,390.42 257,500.00 42,476.11 257,500.00 102,079.11 90,000.00 Department: 0000 - 0000 Total: 246,965.00 123,390.42 257,500.00 42,476.11 257,500.00 102,079.11 90,000.00 Revenue Total: 246,965.00 123,390.42 257,500.00 42,476.11 257,500.00 102,079.11 90,000.00 Expense
Department: 0000 - 0000
ExpCategory: 52 - Services & Supplies
780-0000-52200 PROFESSIONAL SERVICES/FEES 0.00 9,795.25 0.00 9,721.65 0.00 3,023.46 2,750.00 ExpCategory: 52 - Services & Supplies Total: 0.00 9,795.25 0.00 9,721.65 0.00 3,023.46 2,750.00 ExpCategory: 59 - Transfers Out
780-0000-59000 TRANSFER OUT 7,379.00 0.00 7,350.00 638.85 7,350.00 2,432.06 2,400.00 ExpCategory: 59 - Transfers Out Total: 7,379.00 0.00 7,350.00 638.85 7,350.00 2,432.06 2,400.00 Department: 0000 - 0000 Total: 7,379.00 9,795.25 7,350.00 10,360.50 7,350.00 5,455.52 5,150.00 Expense Total: 7,379.00 9,795.25 7,350.00 10,360.50 7,350.00 5,455.52 5,150.00 Fund: 780 - WASTEWATER IMPACT Surplus (Deficit): 239,586.00 113,595.17 250,150.00 32,115.61 250,150.00 96,623.59 84,850.00 Report Surplus (Deficit): 2,193,875.00 1,122,739.90 1,235,705.00 -284,161.24 835,705.00 286,363.78 483,600.00 333
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:42:38 PM Page 10 of 10
Fund Summary
Fund
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Budget
2023-2024
Total Budget
Defined Budgets
2024-2025
Total Activity
2023-2024
Total Activity
2026-2027
2026-2027
770 - PARK IMPACT 628,834.00 66,426.39 24,000.00 -245,917.90 -251,000.00 -298,389.11 21,500.00 771 - POLICE IMPACT 0.00 8,241.48 7,055.00 1,537.86 7,055.00 910.94 5,600.00 772 - FIRE IMPACT 30,600.00 55,805.95 50,800.00 -385,365.20 -74,200.00 -104,438.84 15,700.00 773 - GENERAL GOV. IMPACT 331,385.00 129,441.76 209,000.00 45,992.84 209,000.00 71,446.89 -32,550.00 774 - TRANSPORTATION IMPACT 465,396.00 241,192.25 151,000.00 144,283.48 151,000.00 161,338.03 79,250.00 775 - STORM DRAIN IMPACT 160,467.00 166,054.05 168,550.00 8,806.53 168,550.00 100,171.79 96,250.00 776 - PUBLIC SAFETY IMPACT 118,888.00 23,757.14 71,900.00 16,782.25 71,900.00 56,201.48 48,750.00 779 - WATER IMPACT 218,719.00 318,225.71 303,250.00 97,603.29 303,250.00 202,499.01 164,250.00 780 - WASTEWATER IMPACT 239,586.00 113,595.17 250,150.00 32,115.61 250,150.00 96,623.59 84,850.00 Report Surplus (Deficit): 2,193,875.00 1,122,739.90 1,235,705.00 -284,161.24 835,705.00 286,363.78 483,600.00 334
8/10/2026 12:44:11 PM Page 1 of 5
Budget Worksheet
Soledad, CA Account Summary
For Fiscal: 2025-2026 Period Ending: 06/30/2026
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
Fund: 516 - SUCCESSOR AGENCY
Revenue
Department: 0000 - 0000
RevCategory: 00 - 00
516-0000-48050 SALE OF PROPERTY 0.00 0.00 0.00 241,908.57 0.00_____________________________ 0.00 RevCategory: 00 - 00 Total: 0.00 0.00 0.00 241,908.57 0.00 0.00 0.00 RevCategory: 40 - Property Taxes
516-0000-40100 PROPERTY TAX - SECURED 1,143,095.00 1,241,084.00 1,229,258.00 1,247,962.00 1,235,000.00 1,247,583.00 1,234,289.00 RevCategory: 40 - Property Taxes Total: 1,143,095.00 1,241,084.00 1,229,258.00 1,247,962.00 1,235,000.00 1,247,583.00 1,234,289.00 RevCategory: 48 - Other Revenue
516-0000-48410 INTEREST REVENUE 2,500.00 37,279.78 0.00 54,408.87 0.00_____________________________ 47,987.01 RevCategory: 48 - Other Revenue Total: 2,500.00 37,279.78 0.00 54,408.87 0.00 47,987.01 0.00 Department: 0000 - 0000 Total: 1,145,595.00 1,278,363.78 1,229,258.00 1,544,279.44 1,235,000.00 1,295,570.01 1,234,289.00 Revenue Total: 1,145,595.00 1,278,363.78 1,229,258.00 1,544,279.44 1,235,000.00 1,295,570.01 1,234,289.00 Expense
Department: 0000 - 0000
ExpCategory: 51 - Salaries & Benefits
516-0000-51310 WORKERS COMP 0.00 0.00 0.00 2,022.61 0.00_____________________________ 2,143.99 ExpCategory: 51 - Salaries & Benefits Total: 0.00 0.00 0.00 2,022.61 0.00 2,143.99 0.00 ExpCategory: 52 - Services & Supplies
516-0000-52200 PROFESSIONAL SERVICES/FEES 15,100.00 9,408.00 22,120.00 237,282.00 6,250.00 7,400.00 6,400.00 516-0000-52215 ATTORNEY SERVICES 0.00 2,502.00 0.00 72.00 0.00_____________________________ 36.00 ExpCategory: 52 - Services & Supplies Total: 15,100.00 11,910.00 22,120.00 237,354.00 6,250.00 7,436.00 6,400.00 ExpCategory: 58 - Debt Service
516-0000-58110 INTEREST 2016 A 64,825.00 0.00 43,063.00 0.00 33,875.00 33,875.00 24,500.00 516-0000-58115 INTEREST 2016 B 241,344.00 282,492.70 214,075.00 253,118.24 198,375.00 198,375.00 181,394.00 516-0000-58210 PRINCIPAL 2016 A 340,000.00 0.00 365,000.00 0.00 370,000.00 0.00 380,000.00 516-0000-58215 PRINCIPAL 2016 B 560,000.00 0.00 585,000.00 0.00 610,000.00 0.00 625,000.00 ExpCategory: 58 - Debt Service Total: 1,206,169.00 282,492.70 1,207,138.00 253,118.24 1,212,250.00 232,250.00 1,210,894.00 335
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:44:11 PM Page 2 of 5
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
ExpCategory: 59 - Transfers Out
516-0000-59000 TRANSFER OUT 0.00 0.00 0.00 50,042.51 16,500.00 16,500.00 16,995.00 ExpCategory: 59 - Transfers Out Total: 0.00 0.00 0.00 50,042.51 16,500.00 16,500.00 16,995.00 Department: 0000 - 0000 Total: 1,221,269.00 294,402.70 1,229,258.00 542,537.36 1,235,000.00 258,329.99 1,234,289.00 Expense Total: 1,221,269.00 294,402.70 1,229,258.00 542,537.36 1,235,000.00 258,329.99 1,234,289.00 Fund: 516 - SUCCESSOR AGENCY Surplus (Deficit): -75,674.00 983,961.08 0.00 1,001,742.08 0.00 1,037,240.02 0.00 336
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:44:11 PM Page 3 of 5
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
Fund: 531 - LOW AND MOD ASSET FUND
Revenue
Department: 0000 - 0000
RevCategory: 00 - 00
531-0000-47120 PROGRAM INCOME 0.00 0.00 0.00 0.00 575,000.00_____________________________ 71,179.00 531-0000-49000 TRANSFER IN 0.00 0.00 0.00 34,022.51 0.00_____________________________ 0.00 RevCategory: 00 - 00 Total: 0.00 0.00 0.00 34,022.51 575,000.00 71,179.00 0.00 RevCategory: 48 - Other Revenue
531-0000-48410 INTEREST REVENUE 0.00 35,451.70 0.00 0.00 0.00_____________________________ 733.07 RevCategory: 48 - Other Revenue Total: 0.00 35,451.70 0.00 0.00 0.00 733.07 0.00 Department: 0000 - 0000 Total: 0.00 35,451.70 0.00 34,022.51 575,000.00 71,912.07 0.00 Revenue Total: 0.00 35,451.70 0.00 34,022.51 575,000.00 71,912.07 0.00 Expense
Department: 0000 - 0000
ExpCategory: 51 - Salaries & Benefits
531-0000-51100 SALARIES 19,624.00 19,240.89 0.00 19,748.51 0.00_____________________________ 841.14 531-0000-51130 OVERTIME 0.00 419.87 0.00 750.92 0.00_____________________________ 0.00 531-0000-51140 CERTIFICATES 0.00 8.31 0.00 0.00 0.00_____________________________ 0.00 531-0000-51200 SOCIAL SECURITY / MEDICARE 1,501.00 1,464.50 0.00 1,588.77 0.00_____________________________ 62.56 531-0000-51210 PERS-PENSION 3,925.00 1,369.52 0.00 1,451.90 0.00_____________________________ 65.72 531-0000-51220 BENEFITS 0.00 0.00 0.00 89.32 0.00_____________________________ 6.13 531-0000-51230 INSURANCE-MED,DEN,VISION 981.00 771.61 0.00 570.91 0.00_____________________________ 58.30 531-0000-51265 LTD & AD&D 127.00 0.00 0.00 0.00 0.00_____________________________ 0.00 531-0000-51267 LIFE, AD&D, LTD 0.00 113.97 0.00 36.59 0.00_____________________________ 0.00 ExpCategory: 51 - Salaries & Benefits Total: 26,158.00 23,388.67 0.00 24,236.92 0.00 1,033.85 0.00 ExpCategory: 52 - Services & Supplies
531-0000-52200 PROFESSIONAL SERVICES/FEES 7,500.00 0.00 7,500.00 2,204.24 7,500.00 0.00 2,500.00 ExpCategory: 52 - Services & Supplies Total: 7,500.00 0.00 7,500.00 2,204.24 7,500.00 0.00 2,500.00 337
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:44:11 PM Page 4 of 5
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Activity
2024-2025
Total Budget
2023-2024
Total Activity
2023-2024
Total Budget
2026-2027
2026-2027
Defined Budgets
ExpCategory: 57 - Capital Outlay
531-0000-57000 CAPITAL OUTLAY - IMPROVEM… 0.00 1,403,191.85 0.00 0.00 0.00_____________________________ 0.00 ExpCategory: 57 - Capital Outlay Total: 0.00 1,403,191.85 0.00 0.00 0.00 0.00 0.00 Department: 0000 - 0000 Total: 33,658.00 1,426,580.52 7,500.00 26,441.16 7,500.00 1,033.85 2,500.00 Expense Total: 33,658.00 1,426,580.52 7,500.00 26,441.16 7,500.00 1,033.85 2,500.00 Fund: 531 - LOW AND MOD ASSET FUND Surplus (Deficit): -33,658.00 -1,391,128.82 -7,500.00 7,581.35 567,500.00 70,878.22 -2,500.00 Report Surplus (Deficit): -109,332.00 -407,167.74 -7,500.00 1,009,323.43 567,500.00 1,108,118.24 -2,500.00 338
Budget Worksheet For Fiscal: 2025-2026 Period Ending: 06/30/2026 8/10/2026 12:44:11 PM Page 5 of 5
Fund Summary
Fund
2025-2026
YTD Activity
2025-2026
Total Budget
2024-2025
Total Budget
2023-2024
Total Budget
Defined Budgets
2024-2025
Total Activity
2023-2024
Total Activity
2026-2027
2026-2027
516 - SUCCESSOR AGENCY -75,674.00 983,961.08 0.00 1,001,742.08 0.00 1,037,240.02 0.00 531 - LOW AND MOD ASSET FUND -33,658.00 -1,391,128.82 -7,500.00 7,581.35 567,500.00 70,878.22 -2,500.00 Report Surplus (Deficit): -109,332.00 -407,167.74 -7,500.00 1,009,323.43 567,500.00 1,108,118.24 -2,500.00 339
CIP
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
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DEPARTMENT 2024-25 2025-26 2026-27 CLASSIFICATION
CITY COUNCIL 1.00 1.00 1.00 Mayor

4.00 4.00 4.00 Council Member

5.00 5.00 5.00 TOTAL - COUNCIL
PLANNING COMM 5.00 5.00 5.00 Planning Commissioner

5.00 5.00 5.00 TOTAL - PLANNING COMMISSIONER
TUT OVERSIGHT COMM 0.00 7.00 7.00 Committee Member

0.00 7.00 7.00 TOTAL - TUT OVERSIGHT COMMITTEE MEMBER
ADMINISTRATION 1.00 1.00 1.00 City Manager

0.00 1.00 1.00 Assistant City Manager

1.00 1.00 1.00 Executive Assistant to the City Manager

1.00 1.00 1.00 Human Resources Manager

0.80 0.80 0.80 Administrative Assistant (Confidential)

3.80 4.80 4.80 TOTAL - ADMINISTRATION
COMMUNITY & 1.00 1.00 1.00 Community/Economic Development Director ECONOMIC DEV 1.00 1.00 1.00 Economic Development Coordinator

1.00 0.00 0.00 Administrative Assistant (reclassified to DPT)

1.00 1.00 1.00 Management Analyst

1.00 1.00 1.00 Senior Planner

0.00 1.00 1.00 Homeless Services Coordinator (Grant-Funded)

1.00 0.00 0.00 Building Permit Technician (reclassified to DPT)

0.00 2.00 2.00 Development Permit Technician

6.00 7.00 7.00 TOTAL - COMMUNITY & ECONOMIC DEV
COMMUNITY 1.00 1.00 1.00 Community Engagement Manager
ENGAGEMENT 1.00 1.00 1.00 Community Engagement Coordinator

2.00 2.00 2.00 TOTAL - COMMUNITY ENGAGEMENT
FINANCE 1.00 1.00 1.00 Management Analyst

2.00 2.00 2.00 Customer Service Utility Billing Technician

3.00 3.00 3.00 TOTAL - FINANCE
INFORMATION 1.00 1.00 1.00 Director of Information Technology TECHNOLOGY 1.00 1.00 1.00 Information Technology Technician

2.00 2.00 2.00 INFORMATION TECHNOLOGY
POLICE 1.00 1.00 1.00 Police Chief

1.00 1.00 1.00 Deputy Police Chief

0.00 1.00 1.00 Police Lieutenant

5.00 4.00 4.00 Police Sergeant

13.00 13.00 13.00 Police Officer

1.00 1.00 1.00 Police Administrative Services Manager

1.00 1.00 1.00 Police Records Supervisor

1.00 1.00 1.00 Property and Evidence Supervisor

3.00 3.00 3.00 Community Services Officer

0.00 0.00 0.00 Office Specialist (unfund FY 24/25; reclassified to higher level class)

1.00 1.00 1.00 Victim Assistance Advocate

27.00 27.00 27.00 TOTAL - POLICE
RECREATION 1.00 1.00 1.00 Parks and Recreation Director

0.00 0.00 0.00 Recreation Manager

1.00 1.00 1.00 Recreation Supervisor

2.00 2.00 2.00 Recreation Program Coordinator

4.00 4.00 4.00 TOTAL - RECREATION
POSITION ALLOCATION - FY 2026/27
AUTHORIZED POSITIONS BY FISCAL YEAR Exhibit "B"
432
DEPARTMENT 2024-25 2025-26 2026-27 CLASSIFICATION
POSITION ALLOCATION - FY 2026/27
AUTHORIZED POSITIONS BY FISCAL YEAR Exhibit "B"
PUBLIC WORKS 1.00 1.00 1.00 Public Works Director

2.00 2.00 2.00 Public Works Manager

1.00 1.00 1.00 Management Analyst

7.00 7.00 7.00 Maintenance Worker

1.00 1.00 1.00 Senior Maintenance Worker

1.00 1.00 1.00 Maintenance/Mechanic

1.00 1.00 1.00 Fleet Mechanic

1.00 1.00 1.00 Executive Assistant

1.00 0.00 0.00 City Engineer (Flexible Staffing)

0.00 1.00 1.00 Construction/Project Manager

2.00 1.00 1.00 Assistant Engineer/Associate Engineer

1.00 0.00 0.00 Maintenance Manager

19.00 17.00 17.00 TOTAL - PUBLIC WORKS
(Water/Wastewater) 0.00 0.00 0.00 Senior Water System Operator

0.00 1.00 1.00 Water Resources Manager (Flexible Staffing to CE)

4.00 4.00 4.00 Water System Operator

1.00 1.00 1.00 Water Reclamation Chief Plant Operator
Water Reclamation Operator II
Water Reclamation Operator I
Water Reclamation Operator-in-Training (1-assigned to WW Collect)

2.00 2.00 2.00 Water Reclamation Shift Supervisor

1.00 1.00 1.00 Wastewater Collections System Supervisor

1.00 2.00 2.00 Utility Maintenance Mechanic

1.00 1.00 1.00 Senior Utility Maintenance Mechanic

0.00 1.00 1.00 Utility Maintenance Supervisor

1.00 1.00 1.00 Electrician

1.00 1.00 1.00 Administrative Assistant

18.00 21.00 21.00 TOTAL - PUBLIC WORKS - UTILITIES

94.80 104.80 104.80 TOTAL AUTHORIZED POSITIONS

84.80 87.80 87.80 TOTAL FULL-TIME EQUIVALENT (FTE)
Footnotes:

6.00 6.00 6.00
433
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8

ELECTED OFFICIAL
Mayor and City Council N/A N/A N/A 5.00

COUNCIL ELECTED OFFICIAL
Planning Commission N/A N/A N/A 5.00

TRANSACTIONS AND USE TAX OVERSIGHT COMMITTEE
Committee Member N/A N/A N/A 7.00

EXECUTIVE MANAGEMENT GROUP (EM)
City Manager Exempt N/A N/A 1.00
Assistant City Manager Exempt N/A N/A $16,887.37 $17,647.30 $18,441.43 $19,271.29 $20,138.50 1.00 Parks and Recreation Director Exempt (3) 78 EM $11,753.61 $12,282.52 $12,835.24 $13,412.82 $14,016.40 1.00 Community & Economic Development Director Exempt (3) 91 EM $13,867.08 $14,491.10 $15,143.19 $15,824.64 $16,536.75 1.00 Public Works Director Exempt (3) 96 EM $15,085.89 $15,764.75 $16,474.17 $17,215.50 $17,990.20 1.00 Police Chief Exempt (3) 86 EM $15,692.42 $16,398.58 $17,136.52 $17,907.66 $18,713.50 1.00

UNREPRESENTED CONFIDENTIAL GROUP (CF)
Administrative Assistant (Confidential) (1) 52 CF $5,217.03 $5,451.80 $5,697.13 $5,953.50 $6,221.41 0.80 Police Administrative Services Manager Exempt (1) 55 CF $6,616.48 $6,914.22 $7,225.36 $7,550.50 $7,890.27 1.00 Executive Assistant to the City Manager (1) 58 CF $7,120.98 $7,441.43 $7,776.29 $8,126.22 $8,491.90 1.00 Management Analyst Exempt (1) 62 MM $8,251.52 $8,622.84 $9,010.87 $9,416.36 $9,840.09 3.00 Human Resources Manager Exempt (1) 70 CF $8,951.55 $9,354.37 $9,775.31 $10,215.20 $10,674.89 1.00 Information Technology Manager Exempt (1) 70 CF $8,951.55 $9,354.37 $9,775.31 $10,215.20 $10,674.89 1.00 Community Engagement Manager Exempt (1) 70 CF $8,951.55 $9,354.37 $9,775.31 $10,215.20 $10,674.89 1.00 Public Works Manager Exempt (1) 71 CF $10,170.48 $10,628.15 $11,106.42 $11,606.21 $12,128.49 2.00 City Engineer Exempt (1) 88 CF $12,189.72 $12,738.26 $13,311.48 $13,910.50 $14,536.47 0.00 Water Resources Manager Exempt (1) 88 CF $12,555.41 $13,120.41 $13,710.83 $14,327.81 $14,972.56 1.00 Police Lieutenant Exempt (1) 90 CF $12,683.68 $13,254.45 $13,850.90 $14,474.19 $15,125.53 1.00 Deputy Police Chief Exempt (1) 83 CF $13,100.17 $13,689.68 $14,305.71 $14,949.47 $15,622.20 1.00

PROFESSIONAL/MID-MGMT (MM)
Police Records Supervisor (1) 47 MM $5,721.17 $5,978.63 $6,247.66 $6,528.81 $6,822.61 1.00 Property and Evidence Supervisor (1) 47 MM $5,721.17 $5,978.63 $6,247.66 $6,528.81 $6,822.61 1.00 Information Technology Technician (1) 47 MM $5,721.17 $5,978.63 $6,247.66 $6,528.81 $6,822.61 1.00 Assistant Planner (1) 48 MM $5,693.40 $5,949.60 $6,217.34 $6,497.12 $6,789.49 0.00 Economic Development Coordinator Exempt (1) 52 MM $6,465.28 $6,745.53 $7,060.25 $7,377.96 $7,709.97 1.00 Community Engagement Coordinator Exempt (1) 52 MM $6,465.28 $6,745.53 $7,060.25 $7,377.96 $7,709.97 1.00 Homeless Services Coordinator (Grant-Funded through 6/30/27) Exempt (1) 52 MM $6,465.28 $6,745.53 $7,060.25 $7,377.96 $7,709.97 1.00 Associate Planner Exempt (1) 52 MM $6,465.28 $6,745.53 $7,060.25 $7,377.96 $7,709.97 0.00 Recreation Supervisor Exempt (1) 55 MM $6,489.25 $6,781.27 $7,086.42 $7,405.31 $7,738.55 1.00 Salary Schedule

FOUR AND ONE-HALF PERCENT STEP ADVANCEMENT
$50/meeting

MONTHLY SALARY
EXHIBIT "C"
Section One of Classification and Compensation Plan
SUMMARY OF JOB CLASSIFICATIONS AND SALARY SCHEDULE FY 26/27 # Auth. Positions
Mayor; $1,050/month and City Council; $950/month
$150/meeting
Classification FLSA Exempt Status See Footnote Salary Range $21,198.60/month
Approved 8/5/2026 - Reso. No 6398
434
Salary Schedule Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8

FOUR AND ONE-HALF PERCENT STEP ADVANCEMENT

MONTHLY SALARY
EXHIBIT "C"
Section One of Classification and Compensation Plan
SUMMARY OF JOB CLASSIFICATIONS AND SALARY SCHEDULE FY 26/27 Classification FLSA Exempt Status See Footnote Salary Range # Auth. Positions Approved 8/5/2026 - Reso. No 6398
Assistant Engineer (1) 66 MM $7,058.56 $7,376.20 $7,708.13 $8,054.99 $8,417.47 1.00 Laboratory Analyst Exempt (1) 56 MM $6,702.53 $7,004.15 $7,319.33 $7,648.70 $7,992.89 0.00 Utility Maintenance Supervisor (1) 59 MM $7,666.92 $8,011.93 $8,372.47 $8,749.23 $9,142.94 1.00 Wastewater Collections System Supervisor (1) 59 MM $7,666.92 $8,011.93 $8,372.47 $8,749.23 $9,142.94 1.00 Water Reclamation Shift Supervisor (1) 59 MM $7,666.92 $8,011.93 $8,372.47 $8,749.23 $9,142.94 2.00 Senior Planner Exempt (1) 67 MM $8,277.38 $8,649.86 $9,039.10 $9,445.86 $9,870.93 1.00 Laboratory Director Exempt (1) 67 MM $8,277.38 $8,649.86 $9,039.10 $9,445.86 $9,870.93 0.00 Building Official Exempt (1) 69 MM $8,277.38 $8,649.86 $9,039.10 $9,445.86 $9,870.93 0.00 Engineering Project Manager Exempt (1) 67 MM $8,277.38 $8,649.86 $9,039.10 $9,445.86 $9,870.93 1.00 Associate Civil Engineer Exempt (1) 78 MM $9,459.15 $9,884.81 $10,329.63 $10,794.46 $11,280.21 0.00 Water Reclamation Chief Plant Operator Exempt (1) 72 MM $9,827.27 $10,269.49 $10,731.62 $11,214.54 $11,719.20 1.00

CLASSIFIED (CL)
Maintenance Worker (1) 38 CL $4,844.39 $5,062.39 $5,290.20 $5,528.25 $5,777.03 7.00 Customer Service Utility Billing Technician (1) 39 CL $4,962.55 $5,185.86 $5,419.22 $5,663.09 $5,917.93 2.00 Administrative Assistant (1) 39 CL $4,962.55 $5,185.86 $5,419.22 $5,663.09 $5,917.93 1.00 Recreation Program Coordinator (1) 39 CL $4,962.55 $5,185.86 $5,419.22 $5,663.09 $5,917.93 2.00 Senior Maintenance Worker (1) 41 CL $5,210.67 $5,445.15 $5,690.19 $5,946.24 $6,213.83 1.00 Mechanic/Maintenance Worker (1) 43 CL $5,471.21 $5,717.41 $5,974.70 $6,243.56 $6,524.52 1.00 Community Services Officer (1) 46 CL $5,494.76 $5,742.02 $6,000.41 $6,270.43 $6,552.60 3.00 Victim Assistance Advocate (1) 46 CL $5,494.76 $5,742.02 $6,000.41 $6,270.43 $6,552.60 1.00 Development Services Technician (1) 48 CL $5,491.62 $5,738.74 $5,996.98 $6,266.85 $6,548.86 2.00 Utility Maintenance Mechanic (1) 49 CL $5,910.21 $6,176.17 $6,454.10 $6,744.54 $7,048.04 2.00 Fleet Mechanic (1) 50 CL $5,939.19 $6,206.45 $6,485.74 $6,777.60 $7,082.59 1.00 Electrician (1) 51 CL $6,650.29 $6,949.55 $7,262.28 $7,589.08 $7,930.59 1.00 Senior Utility Maintenance Mechanic (1) 51 CL $6,650.29 $6,949.55 $7,262.28 $7,589.08 $7,930.59 1.00 Water Systems Operator (1) 51 CL $6,650.29 $6,949.55 $7,262.28 $7,589.08 $7,930.59 4.00 Executive Assistant (1) 53 CL $6,388.25 $6,675.72 $6,976.12 $7,290.05 $7,618.10 1.00 Water Reclamation Operator-In-Training (1) 38 CL $4,844.39 $5,062.39 $5,290.20 $5,528.25 $5,777.03 Water Reclamation Operator I (1) 45 CL $5,744.77 $6,003.28 $6,273.43 $6,555.73 $6,850.74 Water Reclamation Operator II (1) 51 CL $6,650.29 $6,949.55 $7,262.28 $7,589.08 $7,930.59

POLICE SERGEANT (PS)
Police Sergeant* (2) 59 PS $10,344.32 $10,809.82 $11,296.26 $11,804.59 $12,335.80 $12,890.91 $13,471.00 $14,077.19 4.00

POLICE OFFICER (PO)
Police Officer (2) 45 PO $7,526.43 $7,865.12 $8,219.05 $8,588.91 $8,975.41 Police Officer II* (2) 45 PO $7,526.43 $7,865.12 $8,219.05 $8,588.91 $8,975.41 $9,379.30 $9,801.37 $10,242.43

SEASONAL/PART-TIME (HOURLY RATE)

13.00 6.00
435
Salary Schedule Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8

FOUR AND ONE-HALF PERCENT STEP ADVANCEMENT

MONTHLY SALARY
EXHIBIT "C"
Section One of Classification and Compensation Plan
SUMMARY OF JOB CLASSIFICATIONS AND SALARY SCHEDULE FY 26/27 Classification FLSA Exempt Status See Footnote Salary Range # Auth. Positions Approved 8/5/2026 - Reso. No 6398
Police Cadet - Trainee $27.00
Intern/Youth Commissioner $16.90 $17.66 $18.46 $19.29 $20.15 Facility Custodial Lead $18.00 $18.81 $19.66 $20.54 $21.47 Recreation Instructor $18.50 $19.33 $20.20 $21.11 $22.06 Recreation Leader II $17.40 $18.18 $19.00 $19.86 $20.75 Recreation Leader I $16.90 $17.66 $18.46 $19.29 $20.15
Recreation Program Assistant $20.00 $20.90 $21.84 $22.82 $23.85 Program Instructor II $24.00 $25.08 $26.21 $27.39 $28.62 Program Instructor III $27.00 $28.22 $29.48 $30.81 $32.20 Footnotes: 104.80

87.80 (1) Pursuant to Resolution No. 6245/ SA-2025-01, effective 7/4/26, three percent (3%) COLA increase for Unrepresented and Confidential classifications, Professional/Mid-Management Unit classifications, and General Unit classification. (2) Pursuant to Resolution No. 6245/ SA-2025-01, effective 7/4/26, three and one quarter percent (3.25%) COLA increase for Police Sergeant and Police Officer classifications. (3) Pursuant to Resolution No. xxxx, effective 7/4/26, three percent (3%) COLA increase for certain Executive Management classifications. * Upon completion of Employee's 5th year of service in Police Officer or Police Sergeant classification, Employee will be eligible to receive 3 future step increases Total FTEs:

Total Authorized Positions:
436
Exhibit D
City of Soledad
Proposition 4 General Fund Appropriations Limitations for Fiscal Year 2026-2027
1 Fiscal year 2025-26 Appropriations limit established by resolution $35,976,859 2 Population Estimate – Department of Finance (Jan 1, 2025) 20,434* 3 Population Estimate – Department of Finance (Jan 1, 2026) 20,494* 4 Population conversion factor (1.049+100/100) 1.0495
5 Per Capita Personal Income Index (0.29+100/100) 1.0029 6 Calculation of Factor (line 4 x line 5) 1.0525
7 Fiscal Year 2026-27 Appropriation Limit $37,865,644
8 Appropriation Subject to the limitation $12,276,046
9 Amount under the limitation $25,589,598
Notes:
* Used modified population figures from the Department of Finance Letter dated May 2026. 437
FY 2026
-2027
Budget
Presentation
Megan Hunter, City Manager
Mike Howard, Assistant City
Manager
City Council
Wednesday, August 19, 2026
438
Budget Presentation
A lot continues to Happen in Soledad!
$56,553,887 Operating Budget
Alignment of the 2026 City Council Strategic
Goals and feedback from public outreach
439
Budget Message
Economic uncertainty continues to persist, now with the current war and the relocation of major companies out of California Modest increase in property tax with continued slowing in sales tax and development
Budget pressure as costs continue to increase faster than revenue in the long term
Increased staffing and capital costs
Deferred capital needs for Soledad are significant for General Fund facilities
CAL FIRE staffing at three personnel per shift
440
Budget Message
Advanced major
economic development
at Soledad Marketplace
•Tractor Supply, Wingstop,
Quick Quack Car Wash
Expanded support for
local business and
entrepreneurs
Secured a $300,000
CDBG Planning Grant
for the Container
Village
Established Sendero, a
16-bed interim housing
facility
Advanced more that
250 new housing units
Developed City’s FirstTime Homebuyer
program
Began construction of
the City’s Recycled
Water Project
Secured funding for
major sustainability
and infrastructure
initiatives
Completed Phase I of
the Community Center
renovation
Adopted the City’s
Parks and Recreation
Master Plan
Improved pedestrian
and roadway safety
Secured a $300,000
Clean California Grant
Strengthened City
operations and public
safety capacity
Improved long-term
planning, transparency,
and civic engagement
Secured nearly $5
million in grants.
441
Future Budget Risks and
Opportunities
Expiration of Measure Y in
2032 – 15% of the General
Fund
CAL FIRE increased staffing
requirements
Escalating staff and
construction costs that are
outpacing fees
Potential growth of new
retail development in the
Soledad Marketplace and
downtown
Affordable housing
development
Vacant industrial land for
potential development
Development of Miramonte
to add nearly 2,400 houses
and neighborhood service
commercial projects
442
Building for the Future
• General Fund Capital Improvement Fund
o Current balance is projected to be $7.3 million at the end of FY 26-27 o Support projects not eligible for utility revenues, grants, or impact fees • 5-Year Capital Improvement Program
o Ensures the City is able to match expenditures with funding sources • Future impact fee studies and cost allocation plan
• Water and Sewer Rate Study to ensure rates cover operating and infrastructure maintenance
• Implementation of the Strategic Plan for future budget alignment 443
Organizational Chart
Mayor and
City Council (5)
City Manager (1)
Management
Analyst - Finance
(1)
Customer Service
Utility Billing
Technician (2)
Human Resources
Manager (1)
Administrative
Assistant – Conf
(.8)
Public Works
Director (1)
Executive
Assistant (1)
Management
Analyst – Public
Works (1)
Water Resources
Manager (1)
Water
Reclamation
Chief Plant Op (1)
Water Reclamation
Shift Supervisor (2)
Utility Maintenance
Supervisor (1)
Wastewater
Collections
Supervisor (1)
Public Works
Manager – Utilities
(1)
Engineering Project
Manager (1)
Assistant Engineer
(1)
Public Works
Manager – Parks (1)
Fleet Mechanic (1)
Mechanic
/Maintenance
Worker (1)
Senior
Maintenance
Worker (1)
Maintenance
Worker (7)
Comm & Econ
Development
Director (1)
Management
Analyst - Housing
(1)
Homeless
Services
Coordinator
(1 – Grant
Funded)
Econ Dev
Coordinator (1)
Senior Planner (1)
Parks and
Recreation
Director (1)
Recreation
Supervisor (1)
Recreation
Program
Coordinator (2)
Community
Engagement
Manager (1)
Community
Engagement
Coordinator (1)
Police Chief (1)
Deputy Police
Chief (1)
Police Sergeant (4)
Police Officer (13)
Community
Services Officer (3)
Police Lieutenant
(1)
Police Admin
Services
Manager(1)
Property and
Evidence
Supervisor (1)
Police Records
Supervisor (1)
Victims Assistance
Advocate (1)
Fire
(CalFire Contract)
Information
Technology
Manager (1)
Information
Technology
Technician (1)
City Attorney
(Contract)
Electrician (1)
Assistant City
Manager (1)
Executive Assistant
to the City Manager
(1)
444
Budget Preparation
The City fiscal year budget is prepared using several sources:
 City Council Strategic Goals
2026 Community Budget Survey Results
 5-year Capital Improvement Plan
Master Plans such as Parks, Water, Sewer
Water and Sewer Rate Plan
Staff Input with historical data
State and County estimates
445
City Council Strategic Goal Pillars
Economy Housing
Environmental
Justice and
Equity
Community
Places
Mobility Safety Youth Health
Education Internal
Operations
446
Budget Outreach
July 29th – Community Budget Meeting
August 1st – El Mercadito
August 4th – National Night Out
August 8th – Paint the Valley Purple
Online Survey
447
Budget Survey Results
With the current fiscal year budget challenges and the need to reduce services, the community was asked what services were most important to them for the City to try and preserve.

PUBLIC SAFETY
• Response Time – 53%
• Animal Control – 28%
• Code Enforcement – 17%
• Other – 2% (Speed bumps & Traffic Enforcement)

HOUSING, ECONOMIC & COMMUNITY DEVELOPMENT
• Inspection Frequency – 14%
• Permit Processing Time – 29%
• Service Delivery – 57%
• In Person – 37%
• Self Service – 20%
448
Budget Survey Results – Cont.

RECREATION AND COMMUNITY ENGAGEMENT
• Engagement – 25%
• In Person – 21%
• Virtual – 4%
• Community Events – 46%
• Community Center Hours – 29%

PARKS & PUBLIC WORKS
• Clean Facilities – 46%
• Landscaping Upkeep – 20%
• Public Works Response Time – 27%
• Other – 7% (Road Work & Extra Bathroom Hours)
449
Budget Survey Results – Cont.

The online survey included an “Other Priorities” write in category, responses included:
450
What is not in the budget
No new positions, 6 unfunded full-time positions
Positions not funded in the FY 2026-27 budget are:
• IT Manager
• Community Engagement Coordinator
• Recreation Program Coordinator
• Community Service Officer
• Police Officer
• Part-time Staff
• Reduction of Temporary Staff
• Reduction of profession services
• Increase staff grant management
• Increase staff construction management
• Elimination of Lobbiest/Grant service contract
451
Budget Capital Projects
FY 2026-2027 Capital Budget - $20,544,090 ($12,649,412 Grant Funded) • Reclaimed Water Project
• Water Meter Replacement Project
• Well Rehabilitation and Upgrades
• Water Tank Rehabilitation
• Slurry Seal Project
• Street Restriping
• Pedestrian Safety Enhancements
• West Street Road Diet Project
• Community Center Modernization Upgrades
• Downtown Streetscape
452
General Fund
Revenue $15,942,457
City Council 129,266
City Manager/City Clerk 521,687
City Attorney 165,000
Planning/Building 1,394,284
Human Resources 173,646
Information Technology 181,423
Finance 111,164
Police 6,371,149
Fire 3,202,457
Parks 855,023
Public Works 292,539
Recreation 1,101,650
Comm Engagement 103,002
Animals 137,646
Non-Departmental 1,646,725
Total Expenditures $16,386,661
Use of Reserves $444,204
453
General Fund
71%
26%
1% 2%
FY 2025/26
Salaries &
Benefits
Service &
Supplies
Other Charges
Capital Projects
General Fund Allocations - $15,604,362
454
General Fund
8%
30%
8%
15%
8%
7%
4%
2% 6%
1%
4% 1%
5%
FY 2026/27
Property Taxes
Vehicle License Fee
Sales Taxes
Measure Y
Measure S
Other Taxes
Licenses & Permits
Other Agents
Franchise Fees
Charges for Services
Grants
Use of Money
Other
General Fund Revenues - $15,942,457
455
General Fund
FY 2026/27 City Council - 1%
City Manager - 3%
City Attorney - 1%
Planning - 6%
Building - 3%
Human Resources - 1%
Information Tech - 1%
Finance - 1%
Police - 39%
Fire - 19%
Parks - 5%
Public Works - 2%
Recreation - 7%
Comm Engagement - 1%
Animals - 1%
Non-Departmental - 9%
General Fund Appropriations - $16,386,661
456
General Fund
In June 2022 the City Council amended
Administrative Policy/Procedure No 4000-
16, to increase the established General
Fund Reserve to $2,000,000
In June 2022 the City Council established
a General Fund Capital Projects Fund.

Projected balance at the end of FY 26-27
is projected to be $7.3 million
457
General Fund
The FY 25-26 General Fund budget is presented as
balanced, using $444,204 from operating reserves.

If FY 25-26 closes as planned and FY 26-27 goes as
anticipated, the General Fund should be
approximately $5,807,896 minus the $2,000,000
Emergency Reserve allocated by the Council,
leaving a total of $3,807,896. 458
Review and Analysis
Ongoing challenges:
• Normal revenue increases are not keeping pace with day-today expense increases, such as PERS and salary and benefits • General Fund City infrastructure is aged and in need of maintenance
• Current ongoing General Fund expenses do not allow for reserve set aside
• CAL FIRE increase to 3-0 staffing
• Sunset of Measure Y is approaching (2032)
459
Measure Y
• Measure Y, the temporary emergency one percent sales tax measure that was placed on the June 2012 election ballot, became effective in October 2012.
The 5-year emergency measure was set to sunset in October 2017; however, following voter approval of Measure I in November 2014, it will be extended for an additional 15 years through 2032.
Proceeds from Measure Y continue to be essential in preserving City services. It represents about 15% of the General Fund revenue. • Consistent with the Ordinance that enacted the temporary sales tax measure, the City Council established a 7-member City of Soledad Transaction and Use Tax Oversight Committee.
• Staff’s projection for FY 26-27 is $2,428,000, an increase of $29,000 over FY 25-26.
460
Measure Y Allocations
Police:
• Existing positions, overtime, and other items previously committed for funding which includes 7 full-time positions • 3 police officers • 1 victim advocate
• 1 Sergeant
• 1 Lieutenant
• 1 Community Service Officer
• Continued funding for police vehicles
• Total recommended allocation $1,395,445
Fire:
• Partial payment of the City’s CAL FIRE contract
• Total recommended allocation $1,008,275
Administration:
• CDTFA Administration Costs
• Total recommended allocation $24,280
461
Measure Y
57%
42%
1%
FY 2026/27
Police
Fire
Administration
Measure Y Appropriations - $2,428,000
462
Measure S
• Measure S, the one-half percent sales tax that was placed on the November 2020 election ballot, became effective in April 2021 The measure to fund quality-of-life services for the community is considered a permanent tax
• The centerpiece of the Measure is the creation of our own Parks & Recreation Department
• Total cost of all Measure S related activities is $730,461, net of Recreation and Measure S Revenue. This represents a General Fund additional contribution to fund Measure S related activities 463
Measure S Allocations
Revenue
• Measure S Revenue – $1,214,000
• Recreation Program Revenue – $265,000
Parks
• Maintenance of City Parks - $855,023
Recreation/Community Center
• Recreation Programs & Community Center Costs - $1,101,650 Animal Control
• Animal Control Officer Costs - $137,646
Community Engagement
• Community Engagement & Social Media - $103,002
Administration:
• CDTFA Administration Costs - $12,140
464
Measure S
39%
50%
6% 5%
1%
FY 2026/27
Parks
Recreation
Animals
Comm Engagement
Administration
Measure S Appropriations - $2,209,461
465
Enterprise Funds
The City has four Enterprise Funds:
• Water
• Wastewater (Sewer)
• Solid Waste
• Sanitation
FY 26-27 a new Water, Sewer, and Recycled Water rate study is underway and will be completed during the fiscal year
Water and Wastewater studies have been completed and
incorporated into the 5-year CIP Plan
Significant repairs in both system are needed over the next several years 466
Enterprise Funds - Water
• The Water Fund projected revenues for FY 26-27 are $5,253,210 with projected expenditures at $4,971,166
• Of the total expenditures, $1,146,233 is related to capital expenditures
• Without the capital expenditures, the fund would have a surplus of $1,428,277
• The Water Fund has one remaining debt service loan:
2021 Water System Improvements Note Payable
• Matures in FY 33-34
• Remaining principal balance - $679,110
• Debt Service Coverage (Target 1.20) – Actual 15.21%
467
Enterprise Funds - Water
33%
35%
8%
23%
2%
FY 2026/27
Salaries & Benefits
Services & Supplies
Other Charges
Capital Project
Debt Service
Water Enterprise Appropriations - $4,971,166
468
Enterprise Funds - Wastewater
• The Wastewater Fund projected revenues for FY 26-27 are $8,370,841, with projected expenditures at $10,030,163
• The budget includes capital project spending of $1,335,500 • The largest single expenditure item in the Wastewater Fund is the State loan debt service payment of $1,542,438 annually
• The Wastewater Fund has one remaining debt service loan:
2008 Clean Water State Revolving Fund
• Matures in FY 39-40
• Remaining principal balance - $21,594,133
• Annual payment $1,542,438
• Debt Service Coverage (Target 1.20) – Actual 1.44
469
Enterprise Funds - Wastewater
28%
29%
12%
13%
17%
FY 2026/27
Salaries & Benefits
Services & Supplies
Other Charges
Capital Project
Debt Service
Wastewater Enterprise Appropriations - $10,030,163
470
Enterprise Funds – Solid Waste
• The Solid Waste Fund projected revenues for FY 25-26 are $4,980,000, with projected expenditures and transfers at $4,680,820 • At the end of the FY, excess funds are transferred to the General Fund which represents our “Franchise Fee”
• Rates are set by Tri Cities and adopted by City Council annually 471
Enterprise Funds – Solid Waste
6%
78%
16%
FY 2026/27
Salaries & Benefits
Services & Supplies
Transfer to GF
Solid Waste Enterprise Appropriations - $4,680,820
472
Enterprise Funds - Sanitation
• The Sanitation Fund projected revenues for FY 26-27 are $371,500 with projected expenditures at $337,370
• Current sanitation fee is $6 per month which has been in place since 1993
• Sanitation Fund uses are for graffiti removal, animal control, litter maintenance, and environmental sanitation services 473
Enterprise Funds - Sanitation
48% 51%
1%
FY 2026/27
Salaries & Benefits
Services & Supplies
Other Charges
Sanitation Enterprise Appropriations - $337,370
474
Special Revenue Funds
Special Revenue Funds are funds that can only be used for a specific purpose. They are not General Fund dollars.

The City of Soledad has six classifications of Special Revenue Funds:
• Streets and Transportation
• Community Development
• Public Safety
• Special Assessment Districts
• Impact Fees
475
Special Revenue Funds
Street and Transportation Funds consist of:
Gas Tax
• Used for street maintenance and construction
Gas Tax – SB1
• Used for specific projects as indicated annually by the City and sent to the State
Measure X (TAMC Sales Tax Measure)
• Used for street maintenance and street projects within the City of Soledad
476
Special Revenue Funds
Community Development Funds consist of:
Program Income – Home and CDBG
• Funds used for future housing/business projects
CDBG Grants
• Funds used for the specific purpose of the grant
Recycled Water Project
• Funds to be used for system installation
477
Special Revenue Funds
Public Safety Funds consist of:
Traffic Safety Fund (Proposition 172)
• Funds used for Public Safety
• Police Department vehicle leases
Asset Forfeitures – Police
• When released the funds can only be used for police expenditures Vehicle Abatement
• Used for Code Enforcement related expenditures
Fire EMS (CSA 74)
• Used for Fire equipment and supplies
478
Special Revenue Funds
Special Assessment District Funds consist of:
The Vineyards
Rancho San Vicente
Diamond Ridge
Miravale / Orchard
• Special Assessments are used for park maintenance,
regular maintenance and debt service for infrastructure. • Rates are established through an Engineers Report and adopted by City Council annually.
479
Special Revenue Funds – Impact Fees
• Impact Fee Funds consist of:
 Park
 Police (Legacy)
 Fire (Legacy)
 General Government
 Transportation
 Storm Drain
 Public Safety (New combined Police & Fire)
 Water
 Wastewater
• Impact Fees provide insight into the “growth” of the City, as developers pay these fees to enable the City to expand the necessary infrastructure resulting from that growth.
• Expenditures are categorized as Capital Projects and may only be utilized for the development of new or enhanced services. They cannot be used for the maintenance of existing infrastructure.
• Projects in the proposed FY budget are in the Parks Impact Fund, General Facility Impact Fund, and Traffic Impact Fund
480
Successor Agency Funds
• In 2011, the Governor of California dissolved Redevelopment Agencies. Since then, we have been winding down the activities of the Former Soledad Redevelopment Agency.
• The Successor Agency to the former RDA is now a Private Purpose Trust.
Primary activities are the development of the former RDA and Debt Service payments.
• The Successor Housing Fund is a City Fund.
Funds can be used for future low-income housing projects. • A “Last and Final” ROPS was submitted and approved by the Department of Finance
481
Successor Agency Funds
The Successor Agency to the former RDA has two current
outstanding debt service bonds. These bonds were refunded in 2016 and resulted in savings in excess of $4 million 2016A TARB – Matures in FY 2028-2029
• Current outstanding principal - $1,170,000
2016B TARB – Matures in FY 2032-2033
• Current outstanding principal - $5,745,000
482
Successor Agency Funds
1% 1%
98%
FY 2026/27
Administration
Transfer to GF
Debt Service
Successor Agency Appropriations - $1,234,289
483
Future Items on the Horizon
PERS costs are continuing to increase for all jurisdictions New revenue source is needed to restore unfunded
positions and balance the General Fund balance
Deferred maintenance on the City’s General Fund existing infrastructure is mounting
The expiration of Measure Y Funds in 2032 is a significant threat to the financial stability of the City 484
General Fund Financial Forecast
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
Revenues
Expenditures
485
Council Action for August 19, 2026
Consideration and Adoption of Joint Resolution:

1. Accepting and Approving the 2026-2027 Fiscal Year Proposed Budget;

2. Authorizing the City Manager and Finance Director to realign the Budget for Fiscal Year 2025-2026 to reflect the estimated actual revenues and expenditures for the 2025-2026 Fiscal Year;

3. Approving the Position Allocation for FY 2026-2027;

4. Reaffirm the Salary Schedule of the City’s Classification & Compensation Plan for FY 2026-2027, that was approved at the August 5, 2026, City Council Meeting, including the compensation for City Council, Planning Commissioners, and City of Soledad Transactions and Use Oversight Committee;

5. Reaffirming the City of Soledad’s Emergency Contingency Reserve Policy (Fund Balances); and

6. Establishing the Proposition 4 General Fund Appropriations Limitation for Fiscal Year 2026-2027
486
Conclusion
Thank you for the City Council’s ongoing support as we strive to provide excellent services while ensuring our expenditures align with our revenues.
The recommended budget presents a balanced budget using $444,204 of the General Fund operating reserve
The City is positioned to weather an economic slowdown in the short term
The City should continue seeking sources of funds for ongoing operations and capital projects to accommodate the needs of our community
City Council should be commended for building a healthy reserve well in excess of its original goal
While we face some challenges ahead, we believe we will continue to overcome them through careful planning. 487 SUBJECT: Resolution No. 6413, A Resolution of the City Council of the City of Soledad Authorizing the City Manager and City Attorney to Negotiate, Prepare, and Execute a Deferred Development Impact Fee Agreement with Stockfive Development Inc.

TO: Honorable Mayor Velazquez and City Council
FROM: Beatriz Trujillo, Community and Economic Development Director and Ariana Mora, Senior Planner
MEETING DATE: August 19, 2026

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 2.

Recommendation
It is recommended that the City Council adopt Resolution No.6413, “Authorizing the City Manager and City Attorney to Negotiate, Prepare, and Execute a Deferred Development Impact Fee Agreement with Stockfive Development, Inc.", consistent with the terms and conditions approved by the City Council.

Executive Summary
Stockfive Development Inc. (“Developer”) requests consideration of a Deferred Development Impact Fee Agreement for the project previously proposed at 423 Nestles Road (APN 022-292-039) in the Soledad Marketplace, with Stockfive replacing Woodman Investment Inc. as developer. The requested changes are limited to this developer substitution—because Woodman Investment Inc. is no longer pursuing the project—and an increase in the maximum authorized deferral amount to $200,000, since impact fees are under review and may rise before building permit plans are submitted. All other project components and previously approved deal points would remain unchanged. The deferral is intended to support continued investment and buildout in the Soledad Marketplace while protecting the City’s long-term fiscal interests by ensuring full recovery of the deferred fees.

Background
The developer, Stockfive Development Inc., intends to build a commercial retail space within the Soledad Marketplace at 423 Nestles Rd. The Soledad Marketplace project was approved by the Soledad Planning Commission on July 12, 2018, authorizing the construction and operation of a new commercial shopping center. The project site is located within the H-C Highway Commercial zoning district, which is intended to accommodate a range of retail, service, and commercial uses serving both residents and regional travelers.
488
The project and proposed Deferred Development Impact Fee Agreement were previously considered by the City Council. On June 10, 2026, the City Council approved Resolution No. 6370 related to the project and the proposed arrangement. Since that action, the developer for the project has changed from Woodman Investment Inc. to Stockfive Development Inc. The current request is to formally recognize the change in developer and update the applicable agreement accordingly. The proposed change does not alter the project or the previously proposed deal points, which would remain the same.

As part of the entitlement process, the project underwent review and approval consistent with the City’s development standards, including land use compatibility, site design, circulation, and infrastructure capacity. All new construction projects are required to comply with applicable City regulations, including the payment of permit fees, plan check fees, and development impact fees. These fees are assessed to ensure that new development contributes its fair share toward the cost of public infrastructure and services required to support growth.

Development impact fees are one-time charges imposed on new development to help fund the public infrastructure and facilities needed to support growth and mitigate impacts. They ensure that new development pays its fair share of costs for services such as roads, water and sewer systems, public safety facilities, and parks, rather than shifting those costs to existing residents and businesses. These fees are typically collected at the time of building permit issuance or certificate of occupancy and are used for capital improvements needed to accommodate additional demand on City services. At the same time, the City recognizes that in certain circumstances, the timing of fee payments can create financial challenges for developers, particularly when large capital investments are required prior to project stabilization or occupancy.

In these cases, a Deferred Development Impact Fee Agreement may be considered as a financing mechanism that balances the City’s need for fiscal protection with the developer’s need for cash flow flexibility. Under a deferred agreement, impact fees remain fully obligated and payable; however, the timing of payment is structured over a defined period rather than being required in full at issuance of a Certificate of Occupancy or another standard milestone. This approach benefits the developer by reducing upfront capital pressure at critical stages of construction and project launch, while also benefiting the City by facilitating project completion, supporting economic development, and ensuring eventual full recovery of fees, often with interest and appropriate security provisions. When structured appropriately, deferred fee agreements allow the City to maintain the integrity of its development impact fee program while also supporting timely development that contributes to local economic activity, job creation, and expanded commercial services for the community. In the past, the City approved a similar agreement for Premiere Cinemas.

Review & Analysis
The City recognizes that the timing of development impact fee payments is essential to ensuring that new development contributes its fair share toward infrastructure costs, but can create financial constraints during construction, particularly for commercial parcels like the Soledad Marketplace. This is especially true for a currently underutilized lot in the Marketplace that has not yet secured the financing needed to support the high upfront costs of vertical construction and project delivery. These challenges are most significant in the early stages of development, when major expenses for land development, construction, infrastructure improvements, financing, and tenant recruitment must be incurred before any operational revenue is generated.

A Deferred Development Impact Fee Agreement may serve as a structured financing tool to address feasibility constraints that have limited investment interest in portions of the Soledad Marketplace. 489
While still requiring full payment of all City development impact fees, the agreement allows those fees to be paid over time under a predictable schedule, typically with interest and appropriate security provisions to protect the City’s financial interests. This structure can reduce upfront financial pressure, improve project feasibility, and help facilitate development that might otherwise be delayed or not proceed.

By supporting the delivery of commercial projects, these agreements can also promote economic development through job creation, increased sales tax revenue, and expanded access to goods and services for residents, while helping reduce the risk of long-term vacancy or incomplete development and encouraging a more complete buildout of the Marketplace area. Overall, this approach maintains the integrity of the City’s development impact fee program while providing flexibility that can improve project feasibility and encourage investment in areas where market conditions alone have not yet supported full development. It supports the City’s goal of balancing fiscal responsibility with economic development by helping entitled commercial areas such as the Soledad Marketplace move toward full activation.

The Community and Economic Development Department estimates eligible City development impact fees at $172,948.08. Staff requests authorization to defer up to $200,000 because the City is currently updating its impact fees. This higher limit would provide flexibility if the estimate is revised or fees increase before building permit plans are submitted, avoiding the need to return to the Council for additional approval. Staff also requests authorization for the City Manager and City Attorney to negotiate and execute a Deferred Development Impact Fee Agreement consistent with the following City Council deal points:

Deferred Fee Amount: Not to exceed $200,000
Interest Rate: 3.811% LAIF (Local Agency Investment Fund) rate or 3%, whichever is lower Repayment Period: 5 years
Payment Structure: monthly
Initial Payment Due: Upon issuance of Certificate of Occupancy Staff would work with the City Attorney and Developer to prepare the final agreement, including standard provisions addressing payment administration, default remedies, security requirements, and other legal protections necessary to safeguard the City's financial interests. The agreement applies only to eligible City development impact fees. Fees collected on behalf of outside agencies, including but not limited to TAMC Regional Traffic Impact Fees, Soledad Unified School District fees, and other third-party obligations, are not included unless separately authorized by the applicable agency. In making its determination, the City Council may consider fiscal impacts, project feasibility, consistency with City policies, and the broader public benefits associated with supporting activation and continued investment within the Soledad Marketplace.

Financial Considerations
Approval of the proposed resolution would authorize the City Manager and City Attorney to negotiate and execute a Deferred Development Impact Fee Agreement for up to $200,000 in eligible City development impact fees. While the agreement would defer receipt of fee revenues over a five-year repayment period, the City would recover the full fee amount together with interest at the LAIF rate or 3%, whichever is lower. The proposed arrangement may improve the financial feasibility of development within the Soledad Marketplace while preserving the City's long-term fiscal interests and supporting future economic activity, job creation, and sales tax generation. 490
Resolution No. 6413
Attachment 1 - Memo from Stock Five Development, Inc.

Attachment 2 - City of Soledad Development Impact Fees
Strategic Plan Alignment
The proposed Deferred Development Impact Fee Agreement is consistent with the City’s Strategic Plan goals related to economic development. The agreement supports Strategy 1.1.3, which focuses on redeveloping underutilized sites to promote light industrial, office, and retail growth by providing targeted development incentives such as fee flexibility that can assist projects aligned with community and economic development objectives. It also aligns with Strategy 1.2.3, which calls for assessing the feasibility of high-impact regional destination projects and evaluating incentive and permitting tools needed to facilitate investment. In addition, the agreement supports Strategy 1.4.4, which emphasizes activating vacant land through tailored incentive programs, including development fee adjustments and other financial tools designed to encourage investment and support project feasibility.

Alternatives
Adopt Resolution No. 6413 authorizing the City Manager and City Attorney to negotiate, prepare, and execute a Deferred Development Impact Fee Agreement consistent with the City Council-approved deal points.

Adopt the resolution with modifications to the proposed deal points, including the deferred fee amount, interest rate, repayment period, payment schedule, or other terms.

Decline to authorize a Deferred Development Impact Fee Agreement and provide alternative direction to staff.

Planning/CEQA
The proposed action is not a project subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15378(b)(4) and 15378(b)(5), as the approval of the Deferred Development Impact Fee Agreement constitutes a fiscal and administrative activity involving the timing and method of fee repayment and does not, in itself, authorize new development, construction, or a direct physical change to the environment. Furthermore, the Soledad Marketplace shopping center has already been approved by the City through Conditional Use Permit (CUP) 2018-01, and the proposed agreement does not modify, expand, or intensify the previously approved project. The action is limited to the financing structure for payment of eligible development impact fees associated with an already entitled development project.

Public Notice Requirements
Not Applicable.

Attachment(s):
491
RESOLUTION NO. 6413

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLEDAD

AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO NEGOTIATE,

PREPARE, AND EXECUTE A DEFERRED DEVELOPMENT IMPACT FEE
AGREEMENT WITH STOCK FIVE DEVELOPMENT, INC.

WHEREAS, the City Council previously considered and approved Resolution No. 6370 on June 10, 2026, relating to the development project located at 423 Nestles Road (APN 022-292- 039) within the Soledad Marketplace authorizing the City Manager and City Attorney to negotiate, prepare and execute a deferred development impact agreement with Woodman Investment, Inc. (“Woodman”); and
WHEREAS, subsequent to the City Council’s approval of Resolution No. 6370, the developer for the project has changed from Woodman to Stock Five Development, Inc. (“Stock Five”), and the City desires to formally recognize and approve such change; and WHEREAS, the new Developer is also subject to the payment of applicable City development impact fees, which are required to ensure that new development contributes its fair share toward infrastructure and public service costs associated with growth; and WHEREAS, development impact fees are typically due at the time of building permit issuance or certificate of occupancy and are used to fund essential public facilities, including transportation improvements, water and wastewater systems, public safety facilities, parks, and other community infrastructure; and
WHEREAS, Stock Five has requested that the City Council consider a deferred payment structure for eligible City development impact fees to improve project feasibility and facilitate development of a currently underutilized site within the Soledad Marketplace; and WHEREAS, staff is recommending authorization to defer up to $200,000 as the development impact fees are under review and will likely increase, and the higher limit would provide flexibility if the estimate was miscalculated or fees increase before Stock Five submits building plans; and
WHEREAS, all other terms in the previously approved resolution would remain the same; and
WHEREAS, the City Council finds that, in certain circumstances, deferring payment of development impact fees may support project feasibility and completion while ensuring full recovery of all applicable fees, together with interest and appropriate safeguards to protect the City's financial interests; and
492
WHEREAS, the City Council desires to establish the principal business terms for a Deferred Development Impact Fee Agreement and authorize the City Manager and City Attorney to negotiate, prepare, and execute the final agreement consistent with those terms; and WHEREAS, the City Council has considered the staff report, supporting documentation, and all public testimony presented regarding this matter; and WHEREAS, the City Council finds that approval of this Resolution is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15378(b)(4) and 15378(b)(5), as the action constitutes a fiscal and administrative activity that does not approve or authorize any physical change in the environment, and is related solely to the timing and method of payment of development impact fees associated with a previously approved project.

NOW, THEREFORE, BE IT HEREBY RESOLVED that the City Council of the City of Soledad:

1. Authorizes the City Manager and City Attorney to negotiate, prepare, and execute a Deferred Development Impact Fee Agreement with Wood Investments Company, Inc., consistent with the following terms:
a. Deferred Fee Loan Amount: Not to Exceed $200,000;
b. Interest Rate: Local Agency Investment Fund (LAIF) rate or three percent (3%), whichever is lower;
c. Repayment Period: Five (5) years;
d. Payment Structure: Monthly payments; and
e. Initial Payment Due: Upon issuance of the Certificate of Occupancy.

2. Authorizes the City Manager, City Attorney, and their designees to include such additional terms, conditions, security provisions, default remedies, and administrative requirements as they deem necessary and appropriate to protect the City's financial interests and implement the intent of this Resolution.

3. Authorizes the City Manager, or designee, to execute all documents and take all actions necessary to implement the Deferred Development Impact Fee Agreement.

4. Finds and determines that the Deferred Development Impact Fee Agreement will preserve the City's ability to recover all applicable deferred development impact fees, together with interest and appropriate repayment protections, while supporting economic development and activation of the Soledad Marketplace.

PASSED AND ADOPTED by the City Council of the City of Soledad, at a regular meeting duly held on the 19th day of August 2026, by the following vote:

AYES, and in favor thereof Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:
493
ANNA M. VELAZQUEZ, Mayor
ATTEST:

MEGAN HUNTER, City Clerk
494
495

CITY OF SOLEDAD

DEVELOPMENT IMPACT FEE SUMMARY
(Fees per Unit - Residential/1,000 Square Feet) (1)
Land Use
Classification
General
Government Public Safety(2) Park Water Wastewater Storm Drain Traffic Admin (3%) Total Fees Single Family
Residential (Per
Unit) $ 5,348.00 $ 1,670.00 $ 8,788.00 $ 3,063.00 $ 3,350.00 $ 2,254.00 $ 6,827.00 $ 939.00 $ 32,239.00 Multi-Family
Residential (Per
Unit) $ 4,279.00 $ 1,335.00 $ 7,030.00 $ 2,450.00 $ 2,680.00 $ 1,802.00 $ 4,711.00 $ 729.00 $ 25,016.00 Commercial (Per
1,000 Non-Res. SF) $ 1,316.00 $ 410.00 N/A $ 753.00 $ 824.00 $ 554.00 $ 5,387.00 $ 278.00 $ 9,522.00 Office (Per
1,000 Non-Res. Sf) $ 4,064.00 $ 1,268.00 N/A $ 2,328.00 $ 2,545.00 $ 1,712.00 $ 6,492.00 $ 552.00 $ 18,961.00 Industrial (Per
1,000 Non-Res. SF) $ 2,560.00 $ 799.00 N/A $ 1,467.00 $ 1,603.00 $ 969.00 $ 5,519.00 $ 391.00 $ 13,308.00 NOTES: (1). Some figures may not sum due to rounding
(2). The previous Fire Facilities Fee and Police Facilities Fee have been combined into one Public Safety Fee.

Attachment 2
496
SUBJECT: Resolution No. 6410, a Resolution of the City Council of the City of Soledad Approving a Contract for Construction Services with Cervantes Landscape Services, Inc. (CLS) in an Amount of $378,500 plus a 5% Contingency ($18,925) for a Total-Not-to-Exceed Amount of $397,425 for the Front Street Landscape Improvements Project and Authorizing the City Manager to Execute said Contract on Behalf of the City of Soledad
TO: Honorable Mayor Velazquez and City Council
FROM: Don Wilcox, Public Works Director and Alex Ramos, Engineering Project Manager
MEETING DATE: August 19, 2026

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 3.

Recommendation
It is recommended that the City Council of the City of Soledad consider and adopt Resolution No.6410, “Approving a Contract for Construction Services with Cervantes Landscape Services, Inc. (CLS) in An Amount of $378,500 Plus a 5% Contingency ($18,925) for a Total Not-to-Exceed Amount of $397,425 for the Front Street Landscape Improvements Project and Authorizing the City Manager to Execute said Contract on Behalf of the City of Soledad.”
Executive Summary
The Front Street Landscape Improvements Project represents the next phase in the City's ongoing investment to enhance one of Soledad's primary gateway corridors and create a more vibrant and welcoming downtown environment. Building upon the recently completed Front Street Maintenance Project, the proposed improvements will provide a cohesive landscape treatment throughout the corridor, replacing areas where landscaping did not establish as anticipated while enhancing the overall visual character of Front Street.

Background
The City publicly solicited construction bids and received seven (7) responsive bids, with Cervantes Landscape Services Inc. determined to be the lowest responsive and responsible bidder. Approval of the proposed Resolution will award a construction contract in the amount of $378,500, plus a 5 percent construction contingency of $18,925, for a total not-to-exceed amount of $397,425, allowing the City to advance this Strategic Plan priority.
497
Review & Analysis
The City solicited bids for the Front Street Landscape Improvements Project on July 2, 2026, with bids due on July 31, 2026. A total of seven (7) bids were received, as summarized below:

Name of Bidder Bid Amount
Cervantes Landscape Services Inc. $378,500.00
Landscape Pros ML Inc. $385,000.00
Marina Landscaping Inc. $393,500.00
Perma-Green Hydroseeding Inc. $468,000.00
Bortolussi & Watkin, Inc. $469,875.00
K&D Landscaping $566,869.00
Smith & Enright Landscaping, Inc. $665,256.94
Staff reviewed the submitted bids and determined that Cervantes Landscape Services Inc. (CLS) is the lowest responsive and responsible bidder. The review consisted of confirming the contractor’s possession of the appropriate contractor’s license, demonstrating the ability to successfully complete projects of similar size and complexity, and submitting all required bid documents in accordance with the contract bids. CLS’s bid is also well within range of the Engineer’s Estimate of $371,460, slightly higher by 1.9%.

Staff recommends awarding a construction contract to CLS in the amount of $378,500 plus a 5 percent construction contingency of $18,925, for a total not-to-exceed amount of $397,425. The contingency is intended to address unforeseen field conditions, minor design refinements, and other constructionrelated issues that may arise during the course of the project. The City’s standard contract form will be used.

Financial Considerations
The Front Street Landscape Improvements Project will be funded in its entirety through the City's Measure X Capital Projects Fund. The project is identified in the City's adopted Capital Improvement Program (CIP) and is budgeted for completion during the current fiscal year.

All project costs are fully funded, and approval of this item does not require any additional unbudgeted General Fund expenditures.

Strategic Plan Alignment
This project is consistent with Objective 1.3.5 – Develop and Implement a Comprehensive Downtown Streetscape Plan. Specifically, the Strategic Plan identifies implementation of the Front Street Landscape Improvements Project to enhance and refresh the downtown's visual appeal.

Alternatives
Adopt the proposed Resolution; or
Do not adopt the proposed Resolution. This is not recommended as this project is an urgent project programmed under the City's newly adopted Strategic Plan to advance Downtown revitalization, placemaking, and infrastructure improvements.

Planning/CEQA
498
Resolution No. 6410
Exhibit A - CLS Construction Contract
The proposed project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15304 (Class 4 – Minor Alterations to Land). Class 4 consists of minor public or private alterations to the condition of land, water, and/or vegetation that do not involve the removal of healthy, mature, or scenic trees, except for forestry or agricultural purposes.

The proposed project consists of landscape and irrigation improvements within existing landscaped medians and bulb-out areas along the Front Street corridor and will not result in any expansion of the existing use.

Public Notice Requirements
None required.

Attachment(s):
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RESOLUTION NO. 6410

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLEDAD

APPROVING A CONTRACT FOR CONSTRUCTION SERVICES WITH CERVANTES LANDSCAPE SERVICES, INC. (CLS) IN AN AMOUNT OF $378,500 PLUS A 5% CONTINGENCY ($18,925) FOR A TOTAL NOT-TO-EXCEED AMOUNT OF $397,425

FOR THE FRONT STREET LANDSCAPE IMPROVEMENTS PROJECT AND

AUTHORIZING THE CITY MANAGER TO EXECUTE SAID CONTRACT ON

BEHALF OF THE CITY OF SOLEDAD
WHEREAS, the City of Soledad is committed to enhancing its public infrastructure, strengthening community identity, and investing in projects that improve the appearance and functionality of its public spaces; and
WHEREAS, Front Street serves as one of the City's primary gateway corridors and a key point of arrival for residents and visitors traveling along Highway 101; and WHEREAS, the City recently completed the Front Street Maintenance Project, which included roadway rehabilitation, accessibility improvements, traffic safety enhancements, utility improvements, and landscape improvements throughout the corridor; and WHEREAS, following completion of the Front Street Maintenance Project, the City identified an opportunity to further enhance the corridor through a comprehensive landscape improvement project that creates a cohesive, attractive, and maintainable streetscape consistent with the City's vision for Downtown Soledad; and
WHEREAS, the City completed the design of the Front Street Landscape Improvements Project and subsequently evaluated project delivery strategies before combining the irrigation and landscape improvements into a single construction contract to improve construction coordination and overall project efficiency; and
WHEREAS, the City formally solicited competitive bids for construction services on July 2, 2026, with bids due on July 31, 2026; and

WHEREAS, the City received seven (7) bids and determined that Cervantes Landscape Services, Inc. submitted the lowest responsive and responsible bid in the amount of $378,500; and
WHEREAS, staff recommends approval of a construction contract with Cervantes Landscape Services Inc. in the amount of $378,500, plus a 5% contingency in the amount of $18,925, for a total not-to-exceed amount of $397,425; and WHEREAS, funding for the Project is available through the City's Measure X Capital Projects Fund, and no additional unbudgeted General Fund contribution is required; and WHEREAS, the Project has been determined to be categorically exempt from the 500
California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15304 (Class 4 – Minor Alterations to Land); and
WHEREAS, staff has reviewed the bid proposal and determined the costs to be fair, reasonable, and necessary to complete the Project.

NOW THEREFORE, BE IT HEREBY RESOLVED, by the City Council of the City of Soledad that the City Manager is hereby authorized to execute the City’s standard Public Works Construction Contract, a copy of which is attached hereto as “Exhibit A” with Cervantes Landscape Services, Inc. (CLS) for the Front Street Landscape Improvements Project in the amount of $378,500, plus a 5% contingency in the amount of $18,925, for total not-to-exceed amount of $397,425.

PASSED AND ADOPTED by the City Council of the City of Soledad at a regular meeting duly held on the 19th of August 2026, by the following vote:

AYES, and in favor thereof, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ANNA M. VELAZQUEZ, Mayor
ATTEST:

MEGAN HUNTER, City Clerk
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Exhibit A
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5.1 Six Most Recently Completed Projects

6.1 Mape Memorial Park Pathway Relocation/11711 Mape Way, Dublin, CA 94568/Construction of concrete pathway at Mape Memorial Park.

6.2 City of Dublin/100 Civic Plaza, Dublin, CA 94568/[email protected]/(510) 908-4192

6.3 Prime Contractor: CLS/Cervantes Landscape Services, Inc./16649 Sycamore Ave, Patterson, CA 95363/ [email protected]/(209) 277-9861

6.4 Architect/Engineer: N/A

6.5 Project/Construction Manager: Javier Cervantes; (209) 777-7302; [email protected]

6.6 Scope of Work: Construction of a concrete pathway, post and cable fencing, installation of site furnishings, turf from sod, and mulch. The work includes, but is not limited to, demolition, earthwork, post and cable fencing, site furnishings, site concrete, irrigation modifications, soil preparation, and turf from sod.

6.7 Initial Contract Price: $147,777.00; Final Contract Price: $151,377.00

6.8 Original Scheduled Completion: 09/01/2025, Actual Completion Date: 08/18/2025

6.9 Time extensions granted: 0

6.10 Number and amount of stop notices or mechanic’s liens filed: 0

6.11 Amount of liquidated damages assessed against Bidder: 0

6.12 Nature and resolution of any claim, lawsuit, and/or arbitration between Bidder and the owner: N/A

6.1 McConnell Park Phase 2/10081 Hampton Oak Drive, Elk Grove, CA 95624/Construction of a dog park.

6.2 Consumnes Community Services District/8820 Elk Grove Blvd, Elk Grove, CA 95624/[email protected]//(916) 216-6105

6.3 Prime Contractor: CLS/Cervantes Landscape Services, Inc./16649 Sycamore Ave, Patterson, CA 95363/ [email protected]/(209) 277-9861

6.4 Architect/Engineer: N/A

6.5 Project/Construction Manager: Javier Cervantes/[email protected]/(209) 777-7302

6.6 Scope of Work: The construction of a dog park including clearing, grubbing, grading, drainage, existing utility tie-ins, irrigation, planting, and installation of: concrete flatwork, concrete curbs, fencing, decomposed granite, site furnishings, shade structure, and other appurtenances as required for a complete installation.

6.7 Initial Contract Price: $212,250.00; Final Contract Price: $225,273.25

6.8 Original Scheduled Completion: 11/06/2024; Actual Completion Date: 11/14/2024

6.9 Time extensions granted: 1

6.10 Number and amount of stop notices or mechanic’s liens filed: 0

6.11 Amount of liquidated damages assessed against Bidder: 0

6.12 Nature and resolution of any claim, lawsuit, and/or arbitration between Bidder and the owner: N/A 519

6.1 Center Medians Landscape Plant Renovation and Upgrades. /Dougherty Rd & Dublin Blvd, Dublin, CA/Reconstruction of center medians at various locations in Dublin, CA.

6.2 MCE Corporation/5709 Scarlett Court, Dublin, CA 94568/ [email protected]//(925) 557-5170

6.3 Prime Contractor: CLS/Cervantes Landscape Services, Inc./16649 Sycamore Ave, Patterson, CA 95363/ [email protected]/(209) 277-9861

6.4 Architect or Engineer: N/A

6.5 Project/Construction Manager: Alejandro Cervantes Jr./(209) 485-8499/[email protected]

6.6 Scope of Work: Initial clean-up and landscape clearing - Removal of debris, dead plant material, deceased trees, stumps, and root balls. Rough grade planter areas for planting. Planting of 1 gal. and 5 gal. plants, as well as 15. gals.

6.7 Initial Contract Price: $39,850.00; Final Contract Price: $39,850.00

6.8 Original Completion Date: 06/27/2025; Final Completion Date: 06/27/2025

6.9 Time extensions granted: 0

6.10 Number and amount of stop notices or mechanic’s liens filed: 0

6.11 Amount of liquidated damages assessed against Bidder: 0

6.12 Nature and resolution of any claim, lawsuit, and/or arbitration between Bidder and the owner: N/A

6.1 Center Medians Landscape Plant Renovation and Upgrades. /Hacienda Drive & Dublin Blvd, Dublin, CA/Reconstruction of center medians at various locations in Dublin, CA.

6.2 MCE Corporation/5709 Scarlett Court, Dublin, CA 94568/ [email protected]//(925) 557-5170

6.3 Prime Contractor: CLS/Cervantes Landscape Services, Inc./16649 Sycamore Ave, Patterson, CA 95363/ [email protected]/(209) 277-9861

6.4 Architect or Engineer: N/A

6.5 Project/Construction Manager: Alejandro Cervantes Jr./(209) 485-8499/[email protected]

6.6 Scope of Work: Initial clean-up and landscape clearing - Removal of debris, dead plant material, deceased trees, stumps, and root balls. Rough grade planter areas for planting. Planting of 1 gal. and 5 gal. plants, as well as 15. gals.

6.7 Initial Contract Price: $37,300.00; Final Contract Price: $37,300.00

6.8 Original Completion Date: 06/30/2025; Final Completion Date: 06/30/2025

6.9 Time extensions granted: 0

6.10 Number and amount of stop notices or mechanic’s liens filed: 0

6.11 Amount of liquidated damages assessed against Bidder: 0

6.12 Nature and resolution of any claim, lawsuit, and/or arbitration between Bidder and the owner: N/A 520

6.1 Baldwin Road Medians/Baldwin Road, Patterson, CA 95363/Landscape and concrete reconstruction of Baldwin Road Median.

6.2 Baldwin Ranch Development, LLC/1412 Rockhaven Drive Modesto, CA 95356/[email protected]/(209) 535-4012

6.3 Prime Contractor: CLS/Cervantes Landscape Services, Inc./16649 Sycamore Ave, Patterson, CA 95363/ [email protected]/(209) 277-9861

6.4 Architect/Engineer: N/A

6.5 Project/Construction Manager: Alejandro Cervantes Perez/[email protected]/(209) 277-9861

6.6 Scope of Work: Landscape and concrete reconstruction of Baldwin Road Median.

6.7 Initial Contract Price: $329,436.00; Final Contract Price: $329,436.00

6.8 Original Scheduled Completion: 08/30/2024; Actual Completion Date: 08/23/2024

6.9 Time extensions granted: 0

6.10 Number and amount of stop notices or mechanic’s liens filed: 0

6.11 Amount of liquidated damages assessed against Bidder: 0

6.12 Nature and resolution of any claim, lawsuit, and/or arbitration between Bidder and the owner: N/A

6.1 Baldwin Medians/Sperry Ave, Patterson, CA 95363/Landscape and concrete reconstruction of Baldwin Medians.

6.2 Baldwin Ranch Development, LLC/1412 Rockhaven Drive Modesto, CA 95356/[email protected]/(209) 535-4012

6.3 Prime Contractor: CLS/Cervantes Landscape Services, Inc./16649 Sycamore Ave, Patterson, CA 95363/ [email protected]/(209) 277-9861

6.4 Architect/Engineer: N/A

6.5 Project/Construction Manager: Alejandro Cervantes Perez/[email protected]/(209) 277-9861

6.6 Scope of Work: Landscape and concrete reconstruction of Baldwin Median.

6.7 Initial Contract Price: $259,852.00; Final Contract Price: $259,852.00

6.8 Original Scheduled Completion: 04/19/2024; Actual Completion Date: 04/12/2024

6.9 Time extensions granted: 0

6.10 Number and amount of stop notices or mechanic’s liens filed: 0

6.11 Amount of liquidated damages assessed against Bidder: 0

6.12 Nature and resolution of any claim, lawsuit, and/or arbitration between Bidder and the owner: N/A 521

5.2 Three Largest Completed Projects

6.1 McConnell Park Phase 2/10081 Hampton Oak Drive, Elk Grove, CA 95624/Construction of a dog park.

6.2 Consumnes Community Services District/8820 Elk Grove Blvd, Elk Grove, CA 95624/[email protected]//(916) 216-6105

6.3 Prime Contractor: CLS/Cervantes Landscape Services, Inc./16649 Sycamore Ave, Patterson, CA 95363/ [email protected]/(209) 277-9861

6.4 Architect/Engineer: N/A

6.5 Project/Construction Manager: Javier Cervantes/[email protected]/(209) 777-7302

6.6 Scope of Work: The construction of a dog park including clearing, grubbing, grading, drainage, existing utility tie-ins, irrigation, planting, and installation of: concrete flatwork, concrete curbs, fencing, decomposed granite, site furnishings, shade structure, and other appurtenances as required for a complete installation.

6.7 Initial Contract Price: $212,250.00; Final Contract Price: $225,273.25

6.8 Original Scheduled Completion: 11/06/2024; Actual Completion Date: 11/14/2024

6.9 Time extensions granted: 1

6.10 Number and amount of stop notices or mechanic’s liens filed: 0

6.11 Amount of liquidated damages assessed against Bidder: 0

6.12 Nature and resolution of any claim, lawsuit, and/or arbitration between Bidder and the owner: N/A

6.1 Baldwin Road Medians/Baldwin Road, Patterson, CA 95363/Landscape and concrete reconstruction of Baldwin Road Median.

6.2 Baldwin Ranch Development, LLC/1412 Rockhaven Drive Modesto, CA 95356/[email protected]/(209) 535-4012

6.3 Prime Contractor: CLS/Cervantes Landscape Services, Inc./16649 Sycamore Ave, Patterson, CA 95363/ [email protected]/(209) 277-9861

6.4 Architect/Engineer: N/A

6.5 Project/Construction Manager: Alejandro Cervantes Perez/[email protected]/(209) 277-9861

6.6 Scope of Work: Landscape and concrete reconstruction of Baldwin Road Median.

6.7 Initial Contract Price: $329,436.00; Final Contract Price: $329,436.00

6.8 Original Scheduled Completion: 08/30/2024; Actual Completion Date: 08/23/2024

6.9 Time extensions granted: 0

6.10 Number and amount of stop notices or mechanic’s liens filed: 0

6.11 Amount of liquidated damages assessed against Bidder: 0

6.12 Nature and resolution of any claim, lawsuit, and/or arbitration between Bidder and the owner: N/ 522

6.1 Baldwin Medians/Sperry Ave, Patterson, CA 95363/Landscape and concrete reconstruction of Baldwin Medians.

6.2 Baldwin Ranch Development, LLC/1412 Rockhaven Drive Modesto, CA 95356/[email protected]/(209) 535-4012

6.3 Prime Contractor: CLS/Cervantes Landscape Services, Inc./16649 Sycamore Ave, Patterson, CA 95363/ [email protected]/(209) 277-9861

6.4 Architect/Engineer: N/A

6.5 Project/Construction Manager: Alejandro Cervantes Perez/[email protected]/(209) 277-9861

6.6 Scope of Work: Landscape and concrete reconstruction of Baldwin Median.

6.7 Initial Contract Price: $259,852.00; Final Contract Price: $259,852.00

6.8 Original Scheduled Completion: 04/19/2024; Actual Completion Date: 04/12/2024

6.9 Time extensions granted: 0

6.10 Number and amount of stop notices or mechanic’s liens filed: 0

6.11 Amount of liquidated damages assessed against Bidder: 0

6.12 Nature and resolution of any claim, lawsuit, and/or arbitration between Bidder and the owner: N/A 523

5.3 Similar Projects

6.1 Center Medians Landscape Plant Renovation and Upgrades. /Dougherty Rd & Dublin Blvd, Dublin, CA/Reconstruction of center medians at various locations in Dublin, CA.

6.2 MCE Corporation/5709 Scarlett Court, Dublin, CA 94568/ [email protected]//(925) 557-5170

6.3 Prime Contractor: CLS/Cervantes Landscape Services, Inc./16649 Sycamore Ave, Patterson, CA 95363/ [email protected]/(209) 277-9861

6.4 Architect or Engineer: N/A

6.5 Project/Construction Manager: Alejandro Cervantes Jr./(209) 485-8499/[email protected]

6.6 Scope of Work: Initial clean-up and landscape clearing - Removal of debris, dead plant material, deceased trees, stumps, and root balls. Rough grade planter areas for planting. Planting of 1 gal. and 5 gal. plants, as well as 15. gals.

6.7 Initial Contract Price: $39,850.00; Final Contract Price: $39,850.00

6.8 Original Completion Date: 06/27/2025; Final Completion Date: 06/27/2025

6.9 Time extensions granted: 0

6.10 Number and amount of stop notices or mechanic’s liens filed: 0

6.11 Amount of liquidated damages assessed against Bidder: 0

6.12 Nature and resolution of any claim, lawsuit, and/or arbitration between Bidder and the owner: N/A

6.1 Center Medians Landscape Plant Renovation and Upgrades. /Hacienda Drive & Dublin Blvd, Dublin, CA/Reconstruction of center medians at various locations in Dublin, CA.

6.2 MCE Corporation/5709 Scarlett Court, Dublin, CA 94568/ [email protected]//(925) 557-5170

6.3 Prime Contractor: CLS/Cervantes Landscape Services, Inc./16649 Sycamore Ave, Patterson, CA 95363/ [email protected]/(209) 277-9861

6.4 Architect or Engineer: N/A

6.5 Project/Construction Manager: Alejandro Cervantes Jr./(209) 485-8499/[email protected]

6.6 Scope of Work: Initial clean-up and landscape clearing - Removal of debris, dead plant material, deceased trees, stumps, and root balls. Rough grade planter areas for planting. Planting of 1 gal. and 5 gal. plants, as well as 15. gals.

6.7 Initial Contract Price: $37,300.00; Final Contract Price: $37,300.00

6.8 Original Completion Date: 06/30/2025; Final Completion Date: 06/30/2025

6.9 Time extensions granted: 0

6.10 Number and amount of stop notices or mechanic’s liens filed: 0

6.11 Amount of liquidated damages assessed against Bidder: 0

6.12 Nature and resolution of any claim, lawsuit, and/or arbitration between Bidder and the owner: N/A 524
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SUBJECT: Consideration of Adoptions for Resolution No's. 6411 and 6412, Resolutions of the City Council of the City of Soledad Appointing a Nominee to the Office of Mayor and a Nominee to the Office of District 1 Councilmember and Canceling the City's General Municipal Election for Mayor and the City's General Election for Councilmember in District 1, scheduled for Tuesday, November 3, 2026, Pursuant to Elections Code Section 10299
TO: Honorable Mayor Velazquez and City Council
FROM: Mike Rodriquez, City Attorney
MEETING DATE: August 19, 2026

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 4.

Recommendation
It is recommended that the City Council consider adoption of a Resolution “Appointing a Nominee to the Office of Mayor and a Nominee to the Office of District 1 Councilmember and Canceling the City’s General Municipal Election for Mayor and the City’s General Municipal Election for Councilmember in District 1 Scheduled for Tuesday, November 3, 2026, Pursuant to Elections Code Section 10299.” Executive Summary
Pursuant to California Elections Code Section 10229, when no person or only one person has been nominated for an office elected on a citywide basis or from a legislative district, the City Council may, following the required public notice, either appoint the person who has been nominated or direct that the election proceed for that office. At the close of the nomination period, only one candidate qualified for each of two City offices: Fernando Cabrera for Mayor and Fernando Ansaldo Sánchez for District 1 Councilmember. Accordingly, and subject to the requirements of Elections Code Section 10229, the City Council may consider whether to appoint either or both qualified candidates to their respective offices or proceed with the November 3, 2026 election for those offices.

The Council's decision also has a fiscal impact. Monterey County Elections estimates election costs at approximately $6 to $10 per registered voter. If the Council appoints the candidates for Mayor and District 1, an election would only be necessary for District 2, with an estimated cost of $17,238 to $28,730. If elections are held for all three offices, the estimated cost is $54,768 to $91,280. Therefore, appointing both candidates could save the City's General Fund approximately $37,530 to $62,550 in election costs.
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Background
For the upcoming November 3, 2026 General Municipal Election, the City has three offices up for election: the Mayor’s seat and City Council seats for Districts 1 and 2. The regular candidate filing period was July 13 through August 7, 2026.

The City began informing Soledad residents about the candidate filing period on July 8, 2026, including posting information on the City’s website and placing an advertisement in the Salinas Valley Tribune.

The City also posted multiple reminders on social media regarding the August 7 filing deadline and provided notice to its contact lists, including members of the Planning Commission and Transactions and Use Tax Citizens Oversight Committee.

Because the incumbent Mayor did not file nomination papers by the August 7 deadline, the nomination period for the Mayor’s seat was extended through August 12, 2026, as provided by state law. After the close of the regular filing period at 5:00 p.m. on August 7, the City posted notice that the filing period for Mayor had been extended through August 12.

By the close of the applicable nomination periods, two candidates had qualified for the District 2 Councilmember seat. However, only one candidate qualified for each of the other two offices:

Fernando Cabrera for Mayor and Fernando Ansaldo Sánchez for District 1 Councilmember.

Review & Analysis
Per Elections Code Section 10229, if as in Soledad, by the 88th day before the municipal election, no one or only one person has been nominated for any office that is elected on a citywide basis or that is selected from or by a legislative district, the elections official shall submit a certificate of these facts to the governing body and inform the governing body that it may, at a regular or special meeting held before the municipal election, adopt one of the following courses of action:

1. Appoint to the office the person who has been nominated; or

2. Hold the election.

In accordance with Section 10299, the City Clerk provided certification to the Council that with respect to the Mayor’s position and the District 1 Councilmember’s seat, facts exist to invoke Elections Code Section 10299. See Exhibit A. Additionally, this same certification was posted at various locations in the City on August 10, 2026, and August 12, 2026, and was published in a local newspaper on August 15, 2026.

Section 10229 provides that, after the fifth day following the date of posting or publication of the required notice, the City Council may make an appointment or direct that an election be held. A person appointed pursuant to this section would take office following the November election and serve in the same manner as if elected at the municipal election. If no appointment is made by the 75th day before the election, August 20, 2026, the election must proceed. If the election proceeds, eligible individuals would have an opportunity to qualify as write-in candidates during the applicable write-in filing period.

Given the statutory deadline, the Council must take action this evening if it wishes to appoint either of the candidates for the offices for which only one candidate qualified.

There are reasonable considerations both for and against utilizing the appointment process.

Appointment would avoid the cost and administrative resources associated with conducting elections 539
for the Mayor and District 1 Councilmember seats when only one candidate qualified for each office.

Despite the City's outreach regarding the candidate filing period, including information provided through the City's website, social media, newspaper advertising, and community contact lists, no additional candidates qualified for these offices. The filing period for Mayor was also extended through August 12, 2026, because the incumbent did not file for reelection.

The Council considered a similar situation for the November 5, 2024 election, when it had the opportunity to appoint candidates for Mayor and the District 3 and District 4 Councilmember seats. At that time, the Council elected to proceed with the election, in part to preserve the opportunity for individuals to qualify as write-in candidates. Ultimately, no write-in candidates qualified for those offices.

Conversely, proceeding with an election would preserve the opportunity for additional individuals to qualify as write-in candidates and would allow voters to cast ballots for these offices. Although appointment is expressly authorized by state law when only one candidate qualifies, the Council may determine that conducting an election provides greater opportunity for voter participation and avoids any public perception that the electoral process has been limited.

The Council should weigh these considerations, along with the fiscal impact of conducting the election, in determining whether to appoint the qualified candidates for Mayor and/or District 1 Councilmember or direct that the election proceed for those offices.

Due to applicable time constraints on Council action, resolutions have been prepared for Council consideration that would appoint Nominee Fernando Cabrera to the Mayor’s seat for a two-year term and Nominee Fernando Ansaldo Sánchez to the District 1 Councilmember’s seat for a four-year term.

The resolutions will also serve to cancel the elections for either or both the Mayor and the District 1 Councilmember position at the November 3rd election. City residents will continue to participate in the election process for other local and statewide matters, while the residents in District 2 will move forward with their election process for their Councilmember. If the Council decides not to make appointments, no further action is necessary and the election will proceed as planned.

Financial Considerations
Given the City's current financial constraints, the potential cost savings associated with appointment are an appropriate factor for the Council to consider. According to estimates provided by Monterey County Elections, election costs are estimated at approximately $6 to $10 per registered voter. If the Council appoints the qualified candidates for Mayor and District 1, the City would only incur election costs associated with District 2, which has approximately 2,873 registered voters. Based on the County's estimate, the City's election costs would range from approximately $17,238 to $28,730. If the Council elects to proceed with the election for all three offices, election costs would be based on approximately 9,128 registered voters citywide, resulting in an estimated cost of $54,768 to $91,280.

This would represent a savings between $37,530 to $62,550 to the General Fund.

Strategic Plan Alignment
Approval of either of the two resolutions before the Council is consistent with Soledad Strategic Plan Objective Goal 10.5.1- Maintain fiscal stability and responsible financial management. As is noted above, appointment to the referenced positions will result in cancelation of elections and cost-savings associated with elections-related services and staff allocations. Council action on this matter is also consistent with Soledad Strategic Plan Objective 10.2.4- Promote fair, inclusive and transparent elections, as the involved decision-making, all of which is being transacted in a public meeting forum, 540
Resolution No. 6410
Resolution No. 6411
Exhibit A
Attachment A
serves to educate the public on the elections and appointment process, which has changed with the introduction of districts.

Alternatives
Adopt one or both of the resolutions before the Council appointing nominees to office.

Take no appointment action and allow the election to proceed as previously noticed.

Planning/CEQA
Approval of either or both of the resolutions before the Council is exempt from environmental review under the general rule in California Environmental Quality Act (CEQA) Guidelines Section 15061(b) (3) that CEQA only applies to projects that have the potential for causing a significant effect on the environment. The resolutions will merely serve to appoint nominees to local office and as such, it can be seen with certainty that there is no possibility that these resolutions will have a significant effect on the environment.

Public Notice Requirements
Notice regarding the Council’s action this evening was accomplished by posting and publication in accordance with applicable law. In addition to posting outside of City Hall and on the website, staff posted notices in the Weeklys on August 13 and in the Californian on August 15, 2026.

Attachment(s):
541
RESOLUTION NO. 6410

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLEDAD

APPOINTING A NOMINEE TO THE OFFICE OF MAYOR AND CANCELING THE CITY’S GENERAL MUNICIPAL ELECTION FOR MAYOR SCHEDULED FOR TUESDAY, NOVEMBER 3, 2026, PURSUANT TO ELECTIONS CODE SECTION 10299 WHEREAS, on June 17 2026, the City Council adopted Resolution No. 6378 calling for the holding of a General Municipal Election on Tuesday, November 3, 2026, for the election of Councilmembers in Districts 1, and 2 and the Mayor’s seat, as required by the provisions of the laws of the State of California relating to General Law cities; and WHEREAS, the Notice of the Election was published on July 8, 2026; and WHEREAS, the nomination period for City offices was open from July 13 through August 7 for Councilmembers, and extended to August 12 for the Mayor’s seat, and at the close of the nomination period, only one individual, Fernando Cabrera, had been nominated for the office of Mayor; and
WHEREAS, a certificate prepared by the City Clerk describing the aforesaid circumstances with respect to the Mayor’s position was provided to the City Council and was posted pursuant to law on August 13, 2026, and published thereafter in a newspaper of general circulation on August 15, 2026 (See Attachment A); and
WHEREAS, pursuant to California Elections Code Section 10299, since at the close of the nomination period on August 12, 2026, only one person has been nominated for the office of Mayor, the City Council may take one of the following actions:

1. Appoint to the office the person who has been nominated; or

2. Hold the election.

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

Section 1. Pursuant to Elections Code Section 10229, Fernando Cabrera is appointed to the Office of Mayor for a two-year term.

Section 2. The citywide General Municipal Election for Mayor scheduled for November 3, 2026, is hereby canceled.

Section 3. Fernando Cabrera shall qualify and take office and serve exactly as if elected at the November 3, 2026, municipal election for the office of Mayor. 542
PASSED AND ADOPTED by the City Council of the City of Soledad at a regular public meeting thereof held on the 19
th day of August 2026, by the following vote:

AYES: and in favor thereof, Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:
______________________________________
Anna Velazquez, the Honorable Mayor
ATTEST:
___________________________________
Megan Hunter, City Clerk

543
RESOLUTION NO. 6411

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLEDAD APPOINTING A NOMINEE TO THE OFFICE OF DISTRICT 1 COUNCILMEMBER AND CANCELING THE CITY’S GENERAL MUNICIPAL ELECTION FOR DISTRICT 1 COUNCILMEMBER SCHEDULED FOR TUESDAY, NOVEMBER 3, 2026, PURSUANT TO ELECTIONS CODE SECTION 10299
WHEREAS, on June 17, 2026, the City Council adopted Resolution No. 6378 calling for the holding of a General Municipal Election on Tuesday, November 3, 2026, for the election of Councilmembers in Districts 1 and 2 and the Mayor’s seat, as required by the provisions of the laws of the State of California relating to General Law cities; and WHEREAS, the Notice of the Election was published on July 8, 2026; and WHEREAS, the nomination period for City offices was open from July 13 through August 7 for Councilmembers, and extended to August 12 for the Mayor’s seat, and at the close of the nomination period, only one individual, Fernando Ansaldo Sanchez, had been nominated for office in District 1; and
WHEREAS, a certificate prepared by the City Clerk describing the aforesaid circumstances in District 1 was provided to the City Council and was posted pursuant to law on August 10, 2026, and published thereafter in a newspaper of general circulation on August 15, 2026 (See Attachment A); and
WHEREAS, pursuant to California Elections Code Section 10299, since at the close of the nomination period on August 7, 2026, only one person has been nominated for office in District 1, the City Council may take one of the following actions:

1. Appoint to the office the person who has been nominated; or

2. Hold the election.

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

Section 1. Pursuant to Elections Code Section 10229, Fernando Ansaldo Sanchez is appointed to the Office of City Councilmember in District 1 for a four-year term.

Section 2. The General Municipal Election for District 1 Councilmember scheduled for November 3, 2026, is hereby canceled in District 1.

Section 3. Fernando Ansaldo Sanchez shall qualify and take office and serve exactly as if elected at the November 3, 2026, municipal election for the office of Councilmember. 544
PASSED AND ADOPTED by the City Council of the City of Soledad at a regular public meeting thereof held on the 19
th day of August, 2026, by the following vote:

AYES: and in favor thereof, Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:
______________________________________
Anna Velazquez, the Honorable Mayor
ATTEST:
___________________________________
Megan Hunter, City Clerk

545
Darlene Noriega, Deputy City Clerk
CITY CLERK’S CERTIFICATION THAT ONLY ONE PERSON HAS BEEN NOMINATED TO BE ELECTED AS MAYOR I, Darlene Noriega, Deputy City Clerk of the City of Soledad, do hereby certify pursuant to Section 10229, Elections Code of the State of California, to the following facts relating to the General Municipal Election to be held on Tuesday, November 3, 2026:

As of the close of the extended Candidate nomination period on August 12, 2026, only one person filed nomination papers to fill the City Council seat for Mayor that is up for election at the November 3, 2026, General Municipal Election. Therefore, there are not more candidates than offices to be elected for City of Soledad office of Mayor.

The person so nominated for Mayor:

Fernando Cabrera
That Section 10229 of the California Elections Code allows one of the following courses of action to be taken by the City Council at a regular or special meeting held before the General Municipal Election in the event that only one person is nominated to an office:

1. Appoint to the office the person who has been nominated, or

2. Hold the election if either no one or only one person has been nominated.

A notice of these facts will be published on August 15, 2026, in a newspaper of general circulation in the City pursuant to Section 6061 of the Government Code. After the fifth day following the date of posting or publication, the City Council will meet to either make the appointment and cancel the election for that office or direct an election to be held. The persons appointed, if any, shall qualify and take office and serve exactly as if elected at a municipal election for the office.

If the City Council makes an appointment pursuant to Section 10229, California Elections Code, the City Clerk shall not accept for filing any statement of write-in candidacy for City Council for office of Mayor, which are submitted after the appointment is made.

If, by the 75th day before the General Municipal Election, no person has been appointed to the office of Mayor, the election for Mayor shall be held along with all other elective offices on the ballot. If an appointment is made to this office, the General Municipal Election for Mayor will be canceled but will be held for all other elective offices on the ballot.

Exhibit A
546
Darlene Noriega, Deputy City Clerk
CITY CLERK’S CERTIFICATION THAT ONLY ONE PERSON HAS BEEN NOMINATED TO BE ELECTED IN ELECTORAL DISTRICT NO. 1
I, Darlene Noriega, Deputy City Clerk of the City of Soledad, do hereby certify pursuant to Section 10229, Elections Code of the State of California, to the following facts relating to the General Municipal Election to be held on Tuesday, November 3, 2026:

As of the close of the nomination period on August 7, 2026, only one person filed nomination papers to fill the City Council seat for Electoral District No. 1 that is up for election at the November 3, 2026, General Municipal Election. Therefore, there are not more candidates than offices to be elected for City of Soledad Electoral District No. 1.

The person so nominated for Electoral District No. 1 is:

Fernando Ansaldo-Sánchez
That Section 10229 of the California Elections Code allows one of the following courses of action to be taken by the City Council at a regular or special meeting held before the General Municipal Election in the event that only one person is nominated to an office:

1. Appoint to the office the person who has been nominated, or

2. Hold the election if either no one or only one person has been nominated.

A notice of these facts will be published on August 15, 2026, in a newspaper of general circulation in the City pursuant to Section 6061 of the Government Code. After the fifth day following the date of posting or publication, the City Council will meet to either make the appointment and cancel the election for that office or direct an election to be held. The persons appointed, if any, shall qualify and take office and serve exactly as if elected at a municipal election for the office.

If the City Council makes an appointment pursuant to Section 10229, California Elections Code, the City Clerk shall not accept for filing any statement of write-in candidacy for City Council from Electoral District No. 1, which are submitted after the appointment is made.

If, by the 75th day before the General Municipal Election, no person has been appointed to the office pursuant to (1) above, the election for Electoral District Nos. 1 shall be held along with all other elective offices on the ballot. If an appointment is made to this office, the General Municipal Election for Electoral District Nos. 1 will be canceled but will be held for all other elective offices on the ballot. 547
Attachment A
548
SUBJECT: Acceptance of the City and Soledad Successor Agency's Audited Financial Statements for Fiscal Year Ended June 30, 2025.

TO: Honorable Mayor Velazquez and City Council
FROM: Mike Howard, Assistant City Manager
MEETING DATE: August 19, 2026

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 5.

Recommendation
It is recommended that the City Council and the Board of Directors of the Soledad Successor Agency accept the City and Successor Agency’s Audited Financial Statements for Fiscal Year Ended June 30, 2025.

Executive Summary
Each year, the City is required by California Government Code provisions to have an independent certified public accountant audit its fiscal year-end financial statements for the General Fund, Special Revenue Funds, and Enterprise Funds. For the fiscal year ended June 30, 2025, the City of Soledad had additional federal grant expenditures exceeding $1,000,000, which required a Single Audit. The auditor’s report states that the financial statements were free from material misstatement; in other words, the City received a clean audit opinion.

Background
The State of California Government Code (sections 25250 & 25253) requires all general-purpose local government to issue an annual report on the financial position and activities of that government. The report must be presented in conformance with generally accepted accounting principles (GAAP) and must be audited by an independent firm of certified public accountants (CPA) in conformance with generally accepted auditing standards (GAGAS). The goal of the audit by an independent firm is to provide reasonable assurance that the accounting transactions, practices, and procedures result in fair presentation of the financial position of the organization. In addition, the audit provides the same type of assurance about management’s assertions about the adequacy of internal accounting controls to safeguard the assets of the entities.

The City of Soledad received $6.2 million of American Rescue Plan Act (ARPA) funds. In the fiscal year 2024-25, the City expended more than $1,000,000 of Federal Grant funds which required a more detailed audit of the City’s grant fund’s receipts and expenditures and the issuance of a Single Audit. 549
City of Soledad 06-30-2025 Financial Statements
City of Soledad 6-30-2025 Management Report
City of Soledad 06-30-2025 Measure Y Letter
Review & Analysis
The independent auditor has rendered an unqualified audit opinion indicating that the City and Successor Agency are materially in compliance and has accounting records that properly reflect the financial position of those entities. Included in the report is a letter from the auditor stating that the Measure Y and Measure S cash receipts and disbursements have been accounted for in a proper manner.

This information will be provided to the City’s two oversight committees at their next scheduled meeting.

Financial Considerations
There is no cost associated with the acceptance of the audited financial statements.

Strategic Plan Alignment
The City's audited financial statements support strategic goal number 10.5.1 - Maintain fiscal stability and responsible financial management.

Alternatives
Receive and file the audited financial statements for FY 2024-25; or Postpone the acceptance of the audited report pending clarification if any.

Planning/CEQA
Acceptance of the City and Soledad Successor Agency's Audited Financial Statements for Fiscal Year Ended June 30, 2025, is not considered a project for the purposes of CEQA since it has no potential for resulting in either a direct or indirect impact to the environment. (See CEQA Guidelines Section 15378.)
Public Notice Requirements
None required
Attachment(s):
550

CITY OF SOLEDAD
INDEPENDENT AUDITOR’S REPORT
AND

FINANCIAL STATEMENTS
JUNE 30, 2025
551

TABLE OF CONTENTS
Page
INDEPENDENT AUDITOR’S REPORT 1 – 3
BASIC FINANCIAL STATEMENTS:

Government-Wide Financial Statements
Statement of Net Position 4
Statement of Activities 5
Fund Financial Statements
Balance Sheet - Governmental Funds 6
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 7
Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds 8
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities 9
Statement of Net Position – Proprietary Funds 10
Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds 11
Statement of Cash Flows – Proprietary Funds 12
Statement of Fiduciary Assets and Liabilities – Custodial Funds 13 Statement of Changes in Fiduciary Net Position – Custodial Funds 14 Statement of Fiduciary Net Position – Private Purpose Trust Fund 15 Statement of Changes in Fiduciary Net Position – Private Purpose Trust Fund 16 Notes to Basic Financial Statements 17 – 46
552
TABLE OF CONTENTS (Continued)
Page
Required Supplementary Information
Budgetary Comparison Schedule – General Fund 47
Budgetary Comparison Schedule – Program Income Fund 48
Budgetary Comparison Schedule – Low and Moderate Housing Asset 49 Budgetary Comparison Schedule – Measure X Fund 50
Schedule of the City’s Proportionate Share of Net Pension Liability 51 Schedule of Contributions 52
Supplemental Only Information
Combining Balance Sheet – Nonmajor Governmental Funds 53 – 55 Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Governmental Funds 56 – 58 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER

MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS 59 – 60
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR

EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE 61 – 63
Schedule of Expenditures of Federal Awards 64
Notes to Schedule of Expenditures of Federal Awards 65
Schedule of Findings and Questioned Costs 66
Summary Schedule of Prior Audit Findings 67
553
1753 E. FIR AVENUE FRESNO, CALIFORNIA 93720 PHONE 559.659.3045 FAX 559.659.0615 RYAN P. JOLLEY

A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS Ryan P. Jolley C.P.A.

Bryant L. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Brandon J. Lang C.P.A.

Lan T. Kimoto
Kali A. Kaakah
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of Soledad, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Soledad (the “City”), California, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

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

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

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 554
2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

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

Accounting principles generally accepted in the United States of America require that the budgetary comparison information on pages 47–50, the schedule of the City’s proportionate share of net pension liability on page 51, and the schedule of contributions on page 52, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of 555
3 America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated July 31, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

July 31, 2026
556
See accompanying notes. 4

CITY OF SOLEDAD

STATEMENT OF NET POSITION
JUNE 30, 2025
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 26,589,561 $ 17,211,168 $ 43,800,729 $ Cash and investments with fiscal agent - 496 496
Accounts receivable, net 391,225 2,276,004 2,667,229
Due from other governments 2,176,255 - 2,176,255
Interest receivable 15,182 10,774 25,956
Notes receivable 9,163,913 17,487 9,181,400
Deferred charges - 1,653,397 1,653,397
Capital assets, net of allowance
for depreciation 54,129,086 50,700,798 104,829,884
Total assets 75,298,412 89,036,934 164,335,346
DEFERRED OUTFLOWS OF RESOURCES 2,063,624 1,036,772 3,100,396

LIABILITIES
Accounts payable and accrued expense 1,403,099 735,742 2,138,841 Accrued interest payable 974 2,573 3,547
Unearned revenues 70,000 - 70,000
Deposits payable 140,927 180,136 321,063
Long-term liabilities
Due within one year 11,171 1,620,108 1,631,279
Due in more than one year - 22,273,244 22,273,244
Compensated absences 882,758 376,134 1,258,892
Lease liability 35,459 14,121 49,580
Net pension liability 2,579,300 5,133,918 7,713,218
Total liabilities 27,781,358 7,678,306 35,459,664
DEFERRED INFLOWS OF RESOURCES 57,385 79,415 136,800

NET POSITION
Net investment in capital assets 50,689,627 30,235,734 80,925,361 Restricted for debt service - 1,542,934 1,542,934
Restricted for long-term notes receivable 9,163,913 - 9,163,913 Restricted for specific projects and programs 19,057,327 - 19,057,327 Unrestricted 16,717,773 4,431,970 21,149,743
Total net position $ 48,496,441 83,342,837 $ 131,839,278 $ 557
See accompanying notes. 5
CITY OF SOLEDADSTATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2025 Operating Capital
Charges for Grants and Grants and Governmental Business-Type Expense Services Contributions Contributions Activities Activities Total Primary Government
Governmental activities
General government 2,667,450 $ - $ - $ 31,410 $ (2,636,040) $ - $ (2,636,040) $ Public works 5,613,424 - 1,337,012 979,006 (3,297,406) - (3,297,406) Community development 1,880,693 415,460 536,846 - (928,387) - (928,387) Public safety 7,879,840 446,952 516,405 2,338 (6,914,145) - (6,914,145) Community services 2,049,249 222,430 2,678,491 11,809 863,481 - 863,481 Debt Service
Interest and fiscal charges - 153 - - (153) - (153)
Total governmental activities 1,084,842 20,090,809 5,068,754 1,024,563 (12,912,650) - (12,912,650) Business-type activities
Water 4,001,328 3,967,070 - 23,428 - (10,830) (10,830)
Sewer 8,539,006 8,009,714 - 1,527,650 - 998,358 998,358 Garbage 4,619,803 3,746,102 - - - 873,701 873,701
Total business-type activities 16,596,587 16,286,436 - 1,551,078 - 1,861,229 1,861,229 Total primary government $ 17,681,429 36,377,245 $ 5,068,754 $ 2,575,641 $ (12,912,650) 1,861,229 (11,051,421) General Revenue
Property taxes and assessments - 6,257,961 6,257,961Sales taxes - 5,775,949 5,775,949Franchise and other taxes - 201,677 201,677Transient lodging taxes - 220,866 220,866Utility users tax - 1,169,981 1,169,981Business license tax - 85,264 85,264Investment income 808,735 1,260,142 2,068,877Rents and other income 35,700 291,673 327,373Transfers (1,052,129) 1,052,129 - Total general revenue and transfers (207,694) 16,315,642 16,107,948 Change in Net Position 1,653,535 3,402,992 5,056,527
Net Position
Beginning of year 46,842,906 79,939,845 126,782,751
End of year $ 48,496,441 83,342,837 $ 131,839,278 $
Functions/Programs
Net Revenue/(Expense) and
Program Revenue Changes in Net Position
558
See accompanying notes. 6
CITY OF SOLEDAD BALANCE SHEET – GOVERNMENTAL FUNDS JUNE 30, 2025 Formerly Major Formerly Nonmajor Formerly Major Other Total American Low-Moderate Park Grant Governmental Governmental General Rescue Plan Program Income State Grants Housing Asset Prop 68 Measure X Funds Funds ASSETS
Cash and investments 12,774,814 $ - $ 768,845 $ 1,698,201 $ 631 $ - $ 1,028,068 $ 9,951,733 $ 26,222,292 $ Accounts receivable - - - - - - - 391,225 391,225
Due from other governments 1,231,860 - - 205,749 - - 477,166 261,480 2,176,255 Due from other funds 355,521 - - - - - - - 355,521
Interest receivable 6,959 - 379 1,020 - - 587 6,026 14,971 Notes receivable - - 6,281,323 - 1,989,332 - - 893,258 9,163,913 Total assets $ - 14,369,154 $ 7,050,547 $ 1,904,970 $ 1,989,963 $ - $ 1,505,821 $ 11,503,722 $ 38,324,177 $

LIABILITIES
Accounts payable and accrued expense 601,639 $ - $ - $ 70,730 $ 631 $ - $ 86,163 $ 612,655 $ 1,371,818 $ Unearned revenues 70,000 - - - - - - - 70,000
Due to other funds - - - - - - - 355,521 355,521
Deposits and other liabilities - 140,927 - - - - - - 140,927 Total liabilities - 812,566 - 70,730 631 - 86,163 968,176 1,938,266

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - 6,281,323 - 1,989,332 - - 893,258 9,163,913 Total deferred inflows of resources - - 6,281,323 - 1,989,332 - - 893,258 9,163,913

FUND BALANCE
Restricted
Capital improvement projects 7,247,157 - - - - - - 2,233,484 9,480,641 Circulation improvements - - - - - - 1,419,658 2,943,442 4,363,100 Lighting, landscape & park maintenance - - - - - - - 3,598,256 3,598,256 Public safety programs - - - - - - - 846,106 846,106
Community services - - - 1,834,240 - - - 21,000 1,855,240 Low-income housing activities - - 769,224 - - - - - 769,224 Committed for contingency reserve 2,000,000 - - - - - - - 2,000,000 Unassigned - 4,309,431 - - - - - - 4,309,431
Total fund balance 13,556,588 - 769,224 1,834,240 - - 1,419,658 9,642,288 27,221,998 Total liabilities, deferred inflows of resources,
and fund balance 14,369,154 $ - $ 7,050,547 $ 1,904,970 $ 1,989,963 $ - $ 1,505,821 $ 11,503,722 $ 38,324,177 $ Special Revenue Funds
559
See accompanying notes. 7

CITY OF SOLEDAD

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO

THE STATEMENT OF NET POSITION
JUNE 30, 2025
Total governmental fund balance 27,221,998 $
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds 50,700,798 Governmental long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds (46,630) Compensated absences are not due and payable in the current period and, therefore, are not reported in the governmental funds (882,758) Net pension liability applicable to governmental activities are not due and payable in the current period and accordingly is not reported in the governmental funds (5,133,918) Deferred outflows of resources related to net pension liability, represent an consumption of net pension or fund balance that applies to future period(s) and so 2,063,624 will not be recognized as an outflow of resources (revenue) until that time Deferred inflows of resources related to net pension liability, represent an acquisition of net pension or fund balance that applies to future period(s) and so will not be recognized as an inflow of resources (revenue) until that time (79,415) Interest on long-term debt is reported as an expenditure of the Governmental Funds when paid because it requires the use of current financial resources. However, accrued interest must be recorded when incurred (974) Internal service funds are used by management to charge the costs of fleet maintenance and computer services to individual funds. The assets and liabilities of the internal service fund are included in governmental activities in the Statement of Net Position. 336,199 Certain revenues in Governmental Funds are deferred because they are not collected within the prescribed time period after fiscal year end.

Those revenues are recognized on the accrual basis in Governmental Activities 9,163,913
Net position of governmental activities $ 83,342,837
560
See accompanying notes. 8
CITY OF SOLEDAD STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2025 Formerly Major Formerly Nonmajor Formerly Major Other Total American Low-Moderate Park Grant Governmental Governmental General Rescue Plan Program Income State Grants Housing Asset Prop 68 Measure X Funds Funds Revenue
Taxes and assessments 12,051,225 $ - $ - $ - $ - $ - $ 981,601 $ 1,686,802 $ 14,719,628 $ Licenses, permits and impact fees 473,856 - - - - - - 205,651 679,507Intergovernmental 400,433 - - 2,448,046 - - 68,336 1,206,818 4,123,633Charges for services 309,526 - - - - - - - 309,526Fines and forfeitures 45,345 - - - - - - - 45,345Rents 49,708 - - - - - - - 49,708Interest - 554,028 27,049 27,810 - - 158,044 1,003,961 1,770,892 Loan repayments - - 258,025 - - - - 20,755 278,780
Other - 211,954 - - - - - 46,223 258,177
Total revenue 14,096,075 - 285,074 2,475,856 - - 1,207,981 4,170,210 22,235,196 Expenditures
Current
General government 2,689,152 - - - - - - - 2,689,152Public works 2,415,910 - - - - - 193,114 1,995,155 4,604,179Community development 1,299,728 - 8,224 409,115 26,441 - - 482,334 2,225,842Public safety 7,092,090 - - - - - - 337,988 7,430,078Community services 1,199,589 - - - - - - 257,834 1,457,423 Capital outlay 385,475 - - 232,501 - - 4,458,549 3,056,552 8,133,077Debt Service Principal 102,632 - - - - - - - 102,632
Interest and fiscal charges - - - - - - - 153 153
Total expenditures 15,184,576 - 8,224 641,616 26,441 - 4,651,663 6,130,016 26,642,536 Revenue over/(under) expenditures (1,088,501) - 276,850 1,834,240 (26,441) - (3,443,682) (1,959,806) (4,407,340) Other Financing Sources/(Uses)
Transfers in/(out) - net - 1,166,066 - - 34,023 - - (147,960) 1,052,129 - 1,166,066 - - 34,023 - - (147,960) 1,052,129
Change in Fund Balance - 77,565 276,850 1,834,240 7,582 - (3,443,682) (2,107,766) (3,355,211) Fund Balance
Beginning of year, previously stated 13,479,023 2,557,139 492,374 - - (230,243) 4,863,340 9,415,576 30,577,209 Change with in financial reporting entity (nonmajor to major) - - - - (7,582) - - 7,582 - Change with in financial reporting entity (major to nonmajor) (2,557,139) - - - - 230,243 - 2,326,896 - Beginning of year, restated 13,479,023 - 492,374 - (7,582) - 4,863,340 11,750,054 30,577,209 End of year $ - 13,556,588 $ 769,224 $ 1,834,240 $ - $ - $ 1,419,658 $ 9,642,288 $ 27,221,998 $ Special Revenue Funds
561
See accompanying notes. 9

CITY OF SOLEDAD

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2025
Net change in fund balance - total governmental funds (3,355,211) $ Amounts reported for governmental activities in the Statement of Activities are different because:

Depreciation expense on capital assets is reported in the Statement of Activities, but they do not require the use of current financial resources. Therefore, depreciation expense is not required as expenditures in Governmental Funds Depreciation and amortization expense (1,273,729)
Capital outlay 8,133,077
Repayment of long-term notes receivable is revenue in governmental funds, but the repayment reduces long-term assets in the statement of net position 115,752 Repayment of long-term debt is an expenditure in governmental funds, but the repayment reduces long-term liabilities in the statement of net position 102,632 Pension expenses reported in the Statement of Activities do no require the use of current financial resources and, therefore, are not reported as expenditures in the Governmental Funds (483,155)
Internal service funds are used by management to charge the costs of fleet maintenance and computer services to individual funds. The net revenue (loss) of certain activities of internal service funds is reported with governmental activities 191,062
Compensated absence costs in the Statement of Activities does not require the use of current financial resources and, therefore, is not reported as expenditures in Governmental Funds (27,436)
Change in net position of governmental activities 3,402,992 $ 562
See accompanying notes. 10
CITY OF SOLEDAD STATEMENT OF NET POSITION – PROPRIETARY FUNDS JUNE 30, 2025 Governmental
Total Activities
Proprietary Internal
Water Sewer Garbage Funds Service Fund
ASSETSCurrent assets
Cash and investments 2,909,858 $ 12,865,982 $ 1,435,328 $ 17,211,168 $ 367,269 $ Cash and investments with fiscal agent 496 - - 496 -Accounts receivable 574,571 1,097,652 603,781 2,276,004 -Interest receivable 7,442 1,909 1,423 10,774 211 Total current assets 13,971,076 3,486,834 2,040,532 19,498,442 367,480 Non-current assets
Loan receivable 13,468 4,019 - 17,487 -Deferred charges - 1,653,397 - 1,653,397 -Property, plant and equipment, net of allowance for depreciation/amortization 45,849,189 8,279,897 - 54,129,086 52,670 Total assets 61,477,681 11,780,199 2,040,532 75,298,412 420,150 DEFERRED OUTFLOWS OF RESOURCES 603,647 316,240 116,885 1,036,772 - LIABILITIESCurrent liabilities
Accounts payable and accrued expenses 90,085 372,873 272,784 735,742 31,281 Accrued interest 2,573 - - 2,573 -Unearned revenues 13,468 4,019 - 17,487 -Deposits 81,476 40,210 58,450 180,136 -Current portion of long-term debt 1,542,438 77,670 - 1,620,108 - Total current liabilities 1,959,540 265,272 331,234 2,556,046 31,281 Non-current liabilities
Long-term debt 679,110 21,594,134 - 22,273,244 -Lease liability 14,121 - - 14,121 -Net pension liability 786,748 1,501,764 290,788 2,579,300 -Compensated absences 196,848 125,606 53,680 376,134 - Total noncurrent liabilities 23,292,746 1,605,585 344,468 25,242,799 - Total liabilities 25,252,286 1,870,857 675,702 27,798,845 31,281 DEFERRED INFLOWS OF RESOURCES 23,230 12,170 4,498 39,898 -

NET POSITION
Net investment in capital assets 7,523,117 22,712,617 - 30,235,734 52,670Restricted for debt service 496 1,542,438 - 1,542,934 -Unrestricted/(deficit) 12,550,757 2,689,799 1,477,217 16,717,773 336,199 Total net position/(deficit) $ 36,805,812 10,213,412 $ 1,477,217 $ 48,496,441 $ 388,869 $ Business-Type Activities - Enterprise Funds
563
See accompanying notes. 11
CITY OF SOLEDAD STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION –

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
Governmental
Total Activities
Proprietary Internal
Water Sewer Garbage Funds Service Fund
Operating Revenue
Charges for services $ 8,009,714 3,967,070 $ 4,619,803 $ 16,596,587 $ 1,250,235 $ Total operating income 8,009,714 3,967,070 4,619,803 16,596,587 1,250,235 Operating Expense
Contractual services and utilities 1,135,719 3,144,991 3,006,097 7,286,807 1,039,917 Personnel 1,176,100 3,024,437 548,867 4,749,404 77,412
Supplies and materials 1,283,305 948,955 187,834 2,420,094 - Depreciation 1,198,916 387,631 3,304 1,589,851 4,420
Total operating expense 8,317,299 3,982,755 3,746,102 16,046,156 1,121,749 Operating income/(loss) (307,585) (15,685) 873,701 550,431 128,486 Nonoperating Revenue/(Expense)
Development impact fees 23,428 21,295 - 44,723 -
Other income 16,408 - 19,292 35,700 55,136
Interest income 138,236 588,749 81,750 808,735 7,440
Interest expense (221,707) (18,573) - (240,280) -
Total nonoperating revenue/(expense) 388,337 159,499 101,042 648,878 62,576 Net income/(loss) before transfers 143,814 80,752 974,743 1,199,309 191,062 Operating Transfers In/(Out) (639) (703) (1,050,787) (1,052,129) - Capital Contributions 1,506,355 - - 1,506,355 -Change in Net Position 1,586,468 143,111 (76,044) 1,653,535 191,062 Net Position
Beginning of year 35,219,344 10,070,301 1,553,261 46,842,906 197,807End of year $ 36,805,812 10,213,412 $ 1,477,217 $ 48,496,441 $ 388,869 $ Business-Type Activities - Enterprise Funds
564
See accompanying notes. 12
CITY OF SOLEDAD STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2025 Governmental
Total Activities
Business-Type Internal
Water Sewer Garbage Funds Service Fund
Operating Activities
Receipts from customers and users 3,923,646 $ 8,615,620 $ 4,656,965 $ 17,196,231 $ 1,250,235 $ Payments for contractual services and utilities (1,202,986) (3,316,770) (2,836,308) (7,356,064) (1,035,927)Payments to employees (1,188,846) (2,833,926) (548,260) (4,571,032) (77,412)Payment to suppliers (948,955) (1,283,305) (187,834) (2,420,094) - Net cash provided by (used in) operating activities 1,515,969 248,509 1,084,563 2,849,041 136,896 Non-capital Financial Activities
Payments from developers 39,836 21,295 19,292 80,423 55,136Proceeds from other government - 1,627 - 1,627 -Payments (to)/from other funds 8,087 4,751 (1,050,787) (1,037,949) - Net cash provided by (used in) noncapital financing activities 31,009 44,587 (1,031,495) (955,899) 55,136 Capital and Related Financing Activities
Purchase of property, plant and equipment - (2,346,473) - (2,346,473) -Capital grant 1,506,355 - - 1,506,355 -Principal paid on long-term debt (100,149) (1,542,438) - (1,642,587) -Interest paid on long-term debt (221,707) (17,046) - (238,753) - Net cash provided by (used in) capital and related financing activities (2,604,263) (117,195) - (2,721,458) - Investing Activities
Interest received 588,461 137,832 81,021 807,314 7,319
Net cash provided by investing activities 588,461 137,832 81,021 807,314 7,319 Net Increase (Decrease) in Cash (468,824) 313,733 134,089 (21,002) 199,351Cash Beginning of year 13,334,806 2,596,621 1,301,239 17,232,666 167,918 End of year $ 12,865,982 2,910,354 $ 1,435,328 $ 17,211,664 $ 367,269 $ Cash Flows from Operating Activities
Operating income (loss) (15,685) $ (307,585) $ 873,701 $ 550,431 $ 128,486 $ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation 1,198,916 387,631 3,304 1,589,851 4,420(Increase) Decrease in Accounts Receivable (50,940) 609,283 40,322 598,665 -(Increase) Decrease in Deferred Charges - 221,707 - 221,707 -(Increase) Decrease in Deferred Outflow of Resources 173,937 150,283 65,650 389,870 -Increase (Decrease) in Unearned Revenues (5,454) (1,627) - (7,081) -Increase (Decrease) in Deposits 12,970 (1,750) (3,160) 8,060 -Increase (Decrease) in Compensated Absences (6,843) 20,639 4,146 17,942 -Increase (Decrease) in Net Pension Liability (150,325) 60,474 (58,164) (148,015) -Increase (Decrease) in Deferred Inflow of Resources (29,515) (40,885) (11,025) (81,425) -Increase (Decrease) in Accounts Payable and Accrued Liabilities (393,486) (67,267) 169,789 (290,964) 3,990 Net Cash Provided (Used) by Operating Activities $ 248,509 1,515,969 $ 1,084,563 $ 2,849,041 $ 136,896 $ Business-Type Activities - Enterprise Funds
565
See accompanying notes 13

CITY OF SOLEDAD
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES – CUSTODIAL FUNDS JUNE 30, 2025
The Vineyards Diamond Ridge
Assessment Assessment
District District Total
ASSETS
Cash and investments 144,360 $ 782,238 $ 926,598 $
Cash and investments with fiscal agent 130,490 160,501 290,991 Interest receivable 456 90 546
Total assets 943,195 274,940 1,218,135

LIABILITIES
Accounts payable - - -
Total liabilities - - -

NET POSITION
Restricted for other governments 274,940 943,195 1,218,135 Total net position $ 943,195 274,940 $ 1,218,135 $
566
See accompanying notes 14

CITY OF SOLEDAD
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION – CUSTODIAL FUNDS JUNE 30, 2025
The Vineyards Diamond Ridge
Assessment Assessment
District District Total

ADDITIONS
Property taxes 267,059 $ 312,916 $ 579,975 $
Interest revenue 9,506 30,612 40,118
Total additions 343,528 276,565 620,093

DEDUCTIONS
Professional services 19,428 $ 18,719 $ 38,147 $
Loan payment 195,000 170,000 365,000
Interest expense 126,803 55,234 182,037
Total deductions 315,522 269,662 585,184
Change in Net Position 6,903 28,006 34,909

NET POSITION
Beginning of year 268,037 915,189 1,183,226
End of year $ 943,195 274,940 $ 1,218,135 $
567
See accompanying notes 15

CITY OF SOLEDAD

STATEMENT OF FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUND – SUCCESSOR AGENCY
JUNE 30, 2025
Assets
Cash and investments
Held in City Treasury 1,681,336 $
Held with trustees 1,706
Interest receivable 990
Land held for redevelopment 180,000
Land 4,273,968
Total assets 6,138,000
Liabilities
Accounts payable and accrued liabilities 4,550
Interest payable 20,439
Long-term debt
Due within one year 950,000
Due in more than one year 6,945,000
Total liabilities 7,919,989
Net Position
Held in trust for other governments (1,781,989) $
568
See accompanying notes 16

CITY OF SOLEDAD

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUND – SUCCESSOR AGENCY
JUNE 30, 2025
Additions
Property taxes 1,247,962 $
Gain on sale of asset 241,909
Investment earnings and other 54,410
Total additions 1,544,281
Deductions
Administrative costs 289,421
Interest expense 253,118
Total deductions 542,539
Change In Net Position 1,001,742
Net Position
Beginning of year (2,783,731)
End of year (1,781,989) $
569
17 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies
The financial statements of the City of Soledad (the City) have been prepared in conformity with Accounting Principles Generally Accepted in the United States of America (GAAP) as applicable to governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.

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

Reporting Entity
The City of Soledad is a municipal incorporation, operating as a general law city, and governed by a city council of five members, under the general laws of the State of California. The City operates under a Council-Manager form of government and provides the following services: general government, public safety, public works, facilities/transportation, culture and leisure, and public utilities.

Also included in this report is the Soledad Public Financing Authority (SPFA). The SPFA is governed by the City officers. Although it is legally separate from the City, the SPFA is reported as if it were part of the primary government because its sole purpose is to finance and construct the City’s public facilities.

Basis of Presentation – Fund Accounting
Government-Wide Financial Statements - The Government-Wide Financial Statements (the Statement of Net Position and the Statement of Activities) report information of all of the nonfiduciary activities of the primary government and its component units. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely significantly on fees charged to external parties.

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 570
18 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued) Net position are restricted when constraints placed on them are either externally imposed or are imposed by constitutional provisions or enabling legislation. Internally imposed designations of resources are not presented as restricted net position. When both restricted and unrestricted resources are available for use, generally, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.

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

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

The City reports the following major governmental funds:

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

Program Income Fund – This fund accounts for program income received and expenditures related to housing assistance loans for low income individuals.

State Grants Fund – This fund accounts for State grants received and expenditures related to administering those grants.

Measure X Fund – The fund is used to account for the City’s Transportation Safety and Investment Plan activities, which include transportation safety and mobility projects such as Pinnacles Parkway, Metz Road Traffic calming project, and Highway 101 South County frontage roads.

The City reports the following major enterprise funds:

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

Sewer Fund – The Sewer Fund accounts for the operation and maintenance of the City’s sewer system.

Garbage Fund - The Garbage Fund accounts for the operation and maintenance of the City’s garbage system.
571
19 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued) The City reports the following additional fund types:

Internal Service Fund – The Internal Service Fund accounts for medical benefits provided to other departments or agencies of the government, on a cost reimbursement basis.

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

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

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

Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied.

Governmental Funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Property and sales taxes, interest, certain state and federal grants and charges for services are accrued when their receipt occurs within sixty days after the end of the accounting period so as to be both measurable and available. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, claims and judgments are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financing sources.

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

Financial Statement Amounts
Cash and Cash Equivalents – Cash and cash equivalents represent the City's cash bank accounts including, but not limited to, certificates of deposit, money market funds and cash management pools for reporting purposes in the Statement of Cash Flows. Additionally, investments with maturities of three months or less when purchased are included as cash equivalents in the Statement of Cash Flows. 572
20 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued) The City maintains a cash and investment pool that is available for use by all funds. Interest earnings as a result of this pooling are distributed to the appropriate funds based on month end cash balances in each fund.

Investments of the pool include only those investments authorized by the California Government Code such as, United States Treasury securities, agencies guaranteed by the United States Government, registered state warrants, and other investments. Investments primarily consist of deposits in the State of California Local Agency Investment Fund and certificates of deposit. Investments are recorded at amortized cost or fair value. Fair value is based upon quoted market prices.

Accounts Receivable – Billed, but unpaid, services provided to individuals or non-governmental entities are recorded as accounts receivable. The Proprietary Funds include a year end accrual for services through the end of the fiscal year which have not yet been billed. Accounts receivable are reported net of an allowance for uncollectibles.

Monterey County is responsible for the assessment, collection and apportionment of property taxes for all taxing jurisdictions. Property taxes are levied in equal installments on November 1 and February 1. They become delinquent on December 10 and April 10, respectively. The lien date is January 1 of each year.

Property taxes are accounted for in the General Fund. Property tax revenues are recognized when they become measurable and available to finance current liabilities. The City considers property taxes as available if they are collected within 60 days after year end. Property tax on the unsecured roll are due on the January 1 lien date and become delinquent if unpaid on August 31. However, unsecured property taxes are not susceptible to year end accrual.

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

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

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

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities column in the Government-Wide Financial Statements. Capital assets are defined by the government as assets with an initial individual cost of more than $10,000 for roadways and $5,000 for all other assets, and an estimated useful life of at least three years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.
573
21 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued) The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Betterments and major improvements which significantly increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement of fixed assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.

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

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

Years
Buildings 40
Improvements 10 - 40
Equipment 5 - 10
Streets 30
Parks 40
Curbs and Gutters 40
Storm Drains 75
Signs and Streetlights 4 - 30
Compensated Absences – Vacation time may be accumulated up to two years entitlement. Cash compensation for accrued vacation is generally not payable until the employee terminates employment with the City.

In fiscal year 1986, the City adopted a policy whereby classified employees with accumulated vacation pay in excess of thirty days may elect to receive one cash payment for up to ten days in excess of the thirty days maximum accrual. Staff with less than thirty days accrued are not eligible to participate in the vacation buy back program.

Cash compensation for unused sick leave is payable to employees only upon termination of employment with the City and is limited to a maximum of 15 days payable upon resignation or dismissal or 30 days payable upon retirement. The City accrues a liability for compensated absences which meets the following criteria set by GASB Statement No. 101: 1) The District’s obligation relating to employees’ rights to receive compensation for future absences is attributable to employees’ services already rendered; 2) The obligation relates to rights that vest or accumulate; 3)Payment of the compensation is probable: 4) The amount can be reasonably estimated.

Management has elected to classify the entire compensated absences balance as current to ensure that sufficient resources are available, if needed, to meet potential employee leave payouts. 574
22 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued) Long-Term Obligations – In the Government-Wide Financial Statements and in the Proprietary Fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or Proprietary Fund Type Statement of Net Position. Debt principal payments of both government and business-type activities are reported as decreases in the balance of the liability on the Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.

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

Pension – For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employee Retirement System (CalPERS) plan and additions to/deduction from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS.

For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

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

Leases – The City is a lessee for a noncancellable lease of equipment. The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide and enterprise fund financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
575
23 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued)  The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.

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

Net Position – The government-wide and business-type activities financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted and unrestricted.  Net Investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.

Restricted Net Position – This category presents external restrictions on net position imposed by creditors, grantors, contributors, laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.  Unrestricted Net Position – This category represents net position of the City not restricted for any project or other purpose.

Fund Balance – In the fund financial statements, governmental fund balance is made up of the following components:
 Nonspendable fund balance typically includes inventories, prepaid items, and other items that must be maintained intact pursuant to legal or contractual requirements, such as endowments.  Restricted fund balance category includes amounts that can be spent only for specific purposes imposed by creditors, grantors, contributors, or laws or regulations of other governments or through enabling legislations.
 Committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the City Council. The City Council has the authority to establish, modify, or rescind a fund balance commitment. 576
24 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies (Continued)  Assigned fund balance are amounts designated by the City Council for specific purposes and do not meet the criteria to be classified as restricted or committed.  Unassigned fund balance is the residual classification that includes all spendable amounts in the General Fund not contained in other classifications.

When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balances are available, the City’s policy is to apply restricted first. When expenditures are incurred for purposes for which committed, assigned, or unassigned fund balances are available, the City’s policy is to apply committed fund balance first, then assigned fund balance, and finally unassigned fund balance.

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

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

Note 3 – Cash and Investments
In accordance with applicable sections of the California Government Code and the Soledad Municipal Code, the City prepares and legally adopts an annual balanced budget on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for the General Fund, specific Special Revenue Funds, and specific Capital Projects Funds.

Budget plans are adopted for Proprietary Funds. A proposed budget is presented to the City Council during May of each year for review. The Council holds public hearings and may add to, subtract from, or change appropriations within the revenues and reserves estimated as available. Expenditures may not legally exceed budgeted appropriations at the fund level. Supplementary appropriations which alter the total expenditures of any fund, or expenditures in excess of total budgeted fund appropriations, must be approved by the City Council.

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

The City pools all of its cash and investments except those funds required to be held by outside fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash is allocated to the various funds on average cash balances. Interest income from cash investments held with fiscal agents is credited directly to the related funds.
577
25 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 3 – Cash and Investments (continued)
Cash and investments as of June 30, 2025, are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments 43,800,729 $
Cash and Investments with Fiscal Agent 496
Fiduciary Funds:

Cash and Investments 2,607,934
Cash and Investments with Fiscal Agent 292,697
Total Cash and Investments $ 46,701,856
Cash and investments as of June 30, 2025, consist of the following:

Cash on hand 2,700 $
Deposits with Financial Institutions 43,896,613
Local Agency Investment Fund 2,509,350
Held by Fiscal Agent:

Money Market 291,487
U.S. Treasury Obligations 1,706
Total Cash and Investments $ 46,701,856
Fair Value Measurements
The framework for measuring fair value provides a fair value hierarchy that categorizes the inputs to valuation techniques used to measure fair value into three levels. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described as follows:

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

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

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

The asset’s or liability’s fair value measurement level within a fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. 578
26 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 3 – Cash and Investments (continued)
Following is a description of the valuation methodologies used for assets measured at fair value.

LAIF is valued based on the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (Level 2 input).

The City had the following recurring fair value measurements as of June 30, 2025:

Level 1 Level 2 Level 3
June 30, 2025
Balance
Investments by fair value level:

Equity Securities:

LAIF - $ $ 2,509,350 $ - $ 2,509,350
Total Equity Securities - 2,509,350 - 2,509,350
Cash and cash equivalents carried at amortized cost:

Deposits and cash on hand 43,899,313
Money Market Mutual Funds 291,487
U.S Treasury Obligation 1,706
Total Investments amortized at cost 44,192,506
Total Cash and Investments 46,701,856 $
Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. The City’s investment policy does not contain any specific provisions intended to limit the City’s exposure to interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. 579
27 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 3 – Cash and Investments (continued)
Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio In One Issuer
Local Agency Bonds 5 years None None
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Banker's Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 1 year 20% None
Reverse Repurchase Agreements 92 days 20% None
Medium-Term Notes 5 years 30% None
Mutual Funds N/A 20% 10%
Money Market Mutual Funds N/A 20% 10%
Mortgage Pass-Through Securities 2 years 20% None
County Pooled Investment Funds 1 year 20% None
Local Agency Investment Fund (LAIF) N/A None None
JPA Pools (other investment pools) N/A None None
Authorized Investment Type
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.

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

Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio In One Issuer
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker's Acceptances 180 days None None
Commercial Paper 270 days None None
Money Market Mutual Funds N/A None None
Investment Contracts None None None
Certificates of Deposits 1 year None None
Repurchase Agreements 30 days None None
Local Agency Investment Fund (LAIF) N/A None None
Municipal Bonds None None None
Authorized Investment Type
580
28 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 3 – Cash and Investments (continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City’s investment in the investment pools are available for withdraw in one business day and have an overall maturity of less than one year.

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. The City’s investments in the investment pools are unrated.

Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer that represent 5% or more of total City investments (external investment pools and mutual funds are excluded from this disclosure requirement).

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

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

GASB Statement No. 40 requires that the following disclosure be made with respect to custodial credit risks relating to deposits and investments: The City did not have any deposits with financial institutions in excess of federal depository insurance limits and held in uncollateralized accounts. 581
29 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 3 – Cash and Investments (continued)
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Note 4 – Notes Receivables
Notes receivable and deferred loans consisted of the following at June 30, 2025:

Orchard Gabilan Associates, L.P. – The HOME Investment Partnership Grant program approved $1,600,000 of grant funds to be made available for local development of an affordable housing project.

The City entered into an agreement with Orchard Gabilan Associates, L.P. to loan such funds for the construction of Gabilan Family Apartments. Payments of principal and interest on the HOME loan are to be deferred until the earlier of repayment in full of the Deferred Development Fee or January 1 of the year in which the 14th anniversary of the date of issuance of the final Certificate of Occupancy. If not paid sooner, the unpaid principal balance of this note, plus any unpaid interest thereon shall be due and payable in full fifty-five years from the date of the note. The note bears 4.46% interest and the face amount of the note at June 30, 2025 was $1,600,000.

Benito FLC, L.P. – The HOME Investment Partnership Grant program approved $3,760,000 of grant funds to be made available for local development of an affordable housing project. The City entered into an agreement with Benito FLC, L.P. to loan such funds for the construction of the Benito Street Farm Labor Center. Funds were provided in the form of a deferred payment loan. If not paid sooner, the unpaid principal balance of this note, plus any unpaid interest thereon shall be due and payable in full fifty-five years from the date of the note. The note bears 4% interest and the face amount of the note at June 30, 2025 was $3,760,000.

Revolving Loan Program – Long-term loans receivable of $3,012,324 represent monies loaned to homebuyers and small business owners in connection with a downpayment assistance, home rehabilitation and business assistance programs. The loans are secured by real property with repayment due upon the sale of real property or starting at the end of the 30 year deferral period. At the time of sale, the seller pays the loan balance in full plus interest, ranging from 0% to 4%. For the homebuyer loan program, starting at the end of the 30 year deferral period, the borrower is required to repay the loan, without interest, over the following 15 years.

Multi-Family Affordable Housing Rehabilitation Loans – Long-term notes receivable of $600,000 represent monies loaned to two developers in connection with construction and rehabilitation of lowincome multi-family housing projects. The loans are secured by real property with repayment due upon the sale of real property or starting at the end of the 55 year deferral period. At the time of sale of the project or at the end of the deferral period, the borrower shall pay the loan balance in full with interest at 4 percent per annum.
582
30 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 5 – Interfund Advances, Receivables, Payables and Transfers Interfund Receivables and Payables
Interfund receivables and payables consist of short-term loans resulting from regular transactions. These loans are expected to be repaid as soon as the borrowing fund has cash, and carry an interest rate equal to the rate earned on pooled cash.

Individual fund interfund receivables and payables balances as of June 30, 2025, are as follows:

Due From Due To
Major Fund:

General Fund 355,521 $ - $
NonMajor Funds:

REAP Grant Special Revenue Fund - 11,188
Gas Tax Special Revenue Fund - 285,276
CDBG Business Loans Special Revenue Fund - 59,057
$ 355,521 355,521 $
583
31 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 5 – Interfund Advances, Receivables, Payables and Transfers (continued) Transfers Between Funds
In general, the City uses interfund transfers to (1) move revenues from the funds that collect them to the funds’ that statute or budget requires to expend them, (2) use unrestricted revenues collected in the General Fund to help finance various programs and capital projects accounted for in other funds in accordance with budgetary authorization, and (3) move cash to debt service funds from the funds responsible for payment as debt service payments become due. In general, the effect of the interfund activity has been eliminated from the government-wide financial statements. The City had the following interfund transfers during the current fiscal year:

Transfers In Transfers Out
Major Governmental Funds:

General Fund 1,166,066 $ - $
Proprietary Funds:

Water Fund - (703)
Sewer Fund - (639)
Garbage - (1,050,787)
Nonmajor Governmental Funds:

Maintenance District - (141,791)
Low-Moderate Housing Asset 34,023 -
Development Impact Fees - (6,169)
$ (1,200,089) 1,200,089 $
The transfer out of $1,050,787 from the Garbage Fund to the General Fund were accumulated franchise fees to cover overhead.
584
32 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 6 – Capital Assets
Capital asset activities for the year ended June 30, 2025, were as follows:

Balance Balance
July 1, 2024 Additions Retirements June 30, 2025
Governmental Activities
Capital assets, not being depreciated
Land 822,801 $ - $ - $ 822,801 $
Construction in progress 2,252,619 - - 2,252,619
Total capital assets, not being depreciated 2,252,619 822,801 - 3,075,420 Capital assets, being depreciated
Buildings and improvements 18,961,277 882,837 - 19,844,114 Infrastructure 42,695,279 4,811,078 - 47,506,357
Machinery and equipment 7,143,562 186,543 - 7,330,105
Total capital assets, being depreciated 5,880,458 68,800,118 - 74,680,576 Less accumulated depreciation for
Buildings and improvements (3,192,589) (245,984) - (3,438,573) Infrastructure (17,312,992) (872,947) - (18,185,939)
Machinery and equipment (101,146) (5,364,863) - (5,466,009) Total accumulated depreciation (25,870,444) (1,220,077) - (27,090,521) Total capital assets, being depreciated, net 4,660,381 42,929,674 - 47,590,055 Right of use assets, being amortized:

Vehicles - right to use 410,379 - - 410,379
Less: accumulated amortization (58,072) (316,984) - (375,056) Total lease assets, being amortized, net (58,072) 93,395 - 35,323 Governmental activities capital assets, net $ 6,854,928 43,845,870 $ - $ 50,700,798 $ 585
33 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 6 – Capital Assets (continued)
Balance Balance
July 1, 2024 Additions Retirements June 30, 2025
Business-Type Activities
Capital assets, not being depreciated
Land 2,509,996 $ - $ - $ 2,509,996 $
Construction in progress - 224,867 - 224,867
Total capital assets, not being depreciated 2,734,863 - - 2,734,863 Capital assets, being depreciated
Buildings and improvements 55,689,390 2,346,473 - 58,035,863 Infrastructure 19,389,129 - - 19,389,129
Machinery and equipment 3,348,884 - - 3,348,884
Total capital assets, being depreciated 2,346,473 78,427,403 - 80,773,876 Less: accumulated depreciation (1,558,366) (27,827,766) - (29,386,132) Total capital assets, being depreciated, net 788,107 50,599,637 - 51,387,744 Right of use assets, being amortized:

Vehicles - right to use 157,423 - - 157,423
Less: accumulated amortization (31,485) (119,459) - (150,944) Total right of use assets, being amortized, net (31,485) 37,964 - 6,479 Business-type activities capital assets, net $ 756,622 53,372,464 $ - $ 54,129,086 $ Depreciation expense was charged to the following functions in the Statement of Activities:

Governmental Functions:

General Government 50,522 $
Public Works 906,041
Public Safety 134,454
Community Services 182,712
$ 1,278,149
Business-Type Functions:

Water 387,631 $
Sewer 1,198,916
Garbage 3,304
$ 1,589,851
586
34 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 7 – Long-Term Debt
Balance Balance Current
July 1, 2024 Additions Retirements June 30, 2025 Portion Governmental Activity Long Term Debt
Direct Borrowings:

Loan Payable
2019 Motorola Radios $ - 55,569 $ (44,398) $ 11,171 $ 11,171 $ Total Governmental Activity Long Term Debt $ - 55,569 $ (44,398) $ 11,171 $ 11,171 $ Business-Type Activity Long Term Debt
Direct Placement:

Bonds Payable
2021 Water Refunding Revenue Bonds 832,960 $ - $ (76,180) $ 756,780 $ 77,670 $ Direct Borrowings:

Loans Payable
Sewer Plant Loan - 24,679,010 (1,542,438) 23,136,572 1,542,438 Total Business-Type Activity Debt $ - 25,511,970 $ (1,618,618) $ 23,893,352 $ 1,620,108 $ Compensated Absences
Government Activities $ 855,322 27,436 $ - $ 882,758 $
Business-Type Activities $ 17,942 358,192 $ - $ 376,134 $ Net Pension Liability
Government Activities $ - 5,133,918 $ - $ 5,133,918 $
Business-Type Activities $ - 2,579,300 $ - $ 2,579,300 $ 2019 Motorola Radios – On July 18, 2018, the City entered into a purchase agreement for 30 portable radios. The lease bears an interest rate of 5.2% and terminates on July 18, 2025. Payments of $11,608 are to be paid quarterly.
2021 Water Refunding Revenue Bonds - In December 2015, the Public Financing Authority issued 2021 Enterprise Revenue Bonds for the principal amount of $1,053,920. The issuance was to refund the outstanding principal balance of the Water Note Payable presented. The reacquisition price exceeded the net carrying amount of the old debt by $1,819,135. The City refunded the above debts to reduce its total debt service over 13 years by $99,551 and to obtain an economic gain (difference between the present values of debt service payments on the old and new debt) of $87,643. The bonds bear interest of 2.040% and are payable semi-annually commencing November 2021 through May 2034. Debt service is secured by a pledge of net revenues of the City’s Water Systems. The City covenants that it shall prescribe, revise and collect such charges for the services and facilities of the water systems which shall produce revenues sufficient in each fiscal year to provide gross revenues which are sufficient to pay all water operation and maintenance costs and all bond installment payments and produce net water revenues equal to at least 1.15 times debt service coming due and payable during such fiscal year. The City is in compliance with those covenants as of June 30, 2025, debt coverage ratio was 8.58. Cash basis debt service paid during the fiscal year ended June 30, 2025 totaled $93,172.
587
35 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 7 – Long-Term Debt (Continued)
Sewer Plant Loan – In connection with the City’s construction of a new sewer plant, a loan for $46,451,084 was obtained from the State of California. Although, the loan is non-interest bearing, it did require a 16.667% loan fee resulting in an effective interest rate of 1.8%. The loan was to be repaid in twenty equal annual installments of $2,322,554 beginning January 1, 2011. However, in October 2014, the City renegotiated the payment terms from 20 years to 30 years, resulting in annual payments of $1,542,438 for the remaining 26 years. Unamortized loan charges of $1,653,397 remains to be amortized over the remaining life of the loan.

Compensated Absences – City employees accumulate earned but unused vacation and sick pay benefits which can be converted to cash at termination of employment. Since no means exist to reasonably estimate the amounts that might be liquidated with expendable currently available financial resources, if any, they are reported as long-term debt on the Statement of Net Position. No expenditure is reported for these amounts in the governmental funds statements. However, in the Statement of Activities the expense is allocated to each function based on usage. The non-current portion of these vested benefits, payable in accordance with various collective bargaining agreements, at June 30, 2025, totaled $882,758 for governmental activities and $376,134 for business-type activities.

The annual requirement to amortize the principal and interest on all long-term debt at June 30, 2025, were as follows:

Years ending June 30, Principal Interest Principal Interest 2026 11,171 $ 145 $ 1,620,108 $ 228,949 $
2027 - - 1,621,498 215,592
2028 - - 1,622,778 200,488
2029 - - 1,624,678 185,223
2030 - - 1,626,458 169,781
2031-2035 - - 8,065,641 611,150
2036-2040 - - 7,712,191 227,664
$ 145 11,171 $ 23,893,352 $ 1,838,847 $
Governmental-Type Activities Business-Type Activities
588
36 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 7 – Long-Term Debt (Continued)
Assessment District Debt – The City acts as an agent for bond offerings within two assessment districts in the City. The City is not obligated in the event of default. Accordingly, the debt is not reflected in the City’s financial information. The amount of debt outstanding as of June 30, 2025, not reflected in these statements is $1,305,000 for The Vineyards and $2,095,000 for Diamond Ridge.

Note 8 – Lease Liability
The City entered into several sixty (60) month lease agreement as lessee for the acquisition and use of vehicles. An initial lease liability was recorded in the amount of $647,920 during the year the lease was entered. As of June 30, 2025, the value of the lease liability was $131,783. The City is required to make monthly principal and interest payments of $411 to $6,873. The lease has an interest rate of 0.9%. The equipment has a five-year estimated useful life. The value of the right-to-use asset as of the end of the current fiscal year was $49,580 and had accumulated amortization of $526,000. The future principal and interest lease payments as of June 30, 2025, were as follows:

Balance Balance Current
July 1, 2024 Additions Retirements June 30, 2025 Portion Lease Liability - Right of Use
Government Activities $ - 93,693 $ (58,234) $ 35,459 $ 31,752 $ Business-Type Activities $ - 38,090 $ (23,969) $ 14,121 $ 14,121 $ .
589
37 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 9 – Deferred Outflows and Deferred Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to future period(s) and thus, will not be recognized as an outflow of resources (expense/expenditure) until then. The City has one item to report in this category:
 The City has $3,100,396 in pension related items that qualify to be reported in deferred outflows of resources. The pension related deferred outflows of resources are described in Note 11.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represent an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has one item to report in this category:
 The City has $119,312 in pension related items that qualify to be reported in deferred inflows of resources. The pension related deferred inflows of resources are described in Note 11.  The City has $17,488 in deferred notes receivable related to impact fees.

Unavailable revenues arise only under a modified accrual basis of accounting that qualifies for reporting as deferred inflows of resources. Accordingly, that item, unavailable revenues, is reported only in the governmental funds balance sheet. The City reports in the Program Income, Low-Moderate Housing, CDBG Business Loans, 20-CDBG-CV10058, 20-CDBG-12084, and Development Impact Fee, $6,281,323, $1,989,332, $472,724, $56,422, $310,137, $53,975, respectively, as unavailable revenues, related to long-term notes and loans receivables.

Note 10 – Risk Management
The City provides for workers' compensation and liability through a self-funded joint powers agency, Monterey Bay Area Self Insurance Authorities. Joint Powers Agreement (JPA) accounts are not separately maintained for each participant.

Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the Monterey Bay Area Self Insurance Authority (MBASIA). MBASIA is composed of 10 California public entities and is organized under a joint powers agreement pursuant to California Government Code 6500 et seq. The purpose of MBASIA is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group-purchased insurance for property and other coverage.

General Liability: The City has a deductible of $10,000 for each liability claim. Claims above $10,000 up to $1,000,000 are paid by MBASIA. Claims above $1,000,000 up to $29,000,000 are covered by insurance purchased by MBASIA.
590
38 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 10 – Risk Management (continued)
Workers’ Compensation: The City does not retain a deductible for workers’ compensation claims. Annual premiums for coverage up to statutory levels are paid to MBASIA based on a Board approved Budget methodology. A third party claims administrator is contracted by MBASIA to manage claims activity.

Adequacy of Protection
During the past three fiscal (claims) years none of the above programs of protection have had settlements or judgments that exceeded insured coverage. There have been no significant reductions in insured liability coverage from coverage in the prior year. Audited financial statements for MBASIA can be obtained from their management at 100 Pine Street, 11th Floor, San Francisco, CA 94111.

Contingent Liabilities
The City participates in a number of Federal and State assisted grant programs which are subject to financial and compliance audits. Audits for these programs and the respective findings are to be determined at a future date, and the City expects the amount, if any, of the expenditures which may be disallowed by the granting agency to be immaterial.

Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) Plan Description – The City contributes to the California Public Employees' Retirement System (PERS), an agent multiple-employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and city ordinance. Copies of PERS' annual financial report may be obtained from their Executive Office - 400 P Street - Sacramento, CA 95814.

Funding Policy – The City pays 7-9% of annual covered salary for active plan members in the City’s defined pension plan. The City is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. The required employer contribution rate for the fiscal year ended June 30, 2025 was 10.150%, 7.870%, 23.000%, and 13.760% for the Miscellaneous, PEPRA Miscellaneous, Safety, and PEPRA Safety, respectively. The contribution requirements of plan members is established by State statute and the employer contribution is established and may be amended by PERS. 591
39 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) (Continued) The Plans’ provisions and benefits in effect at June 30, 2025, are summarized as follows:

Miscellaneous Safety
Hire Date
Prior to
January 1, 2013
Prior to
January 1, 2013
Benefit Formula 2.0% at 60;
maximum 2%
COLA

3.0% at 55;
maximum 2%
COLA
Benefit Vesting Schedule 5 years service 5 years service Benefit Payments monthly for life monthly for life
Retirement Age 60 55
Monthly Benefits, as a % of Eligible Compensation 2.00% 3.00% Required Employee Contribution Rates 7.00% 9.00%
Required Employer Contribution Rates 10.150% 23.000%
PEPRA
Miscellaneous PEPRA Safety
Hire Date
On or After
January 1, 2013
On or After
January 1, 2013
Benefit Formula 2.0% at 62;
maximum 2%
COLA

2.7% at 57;
maximum 2%
COLA
Benefit Vesting Schedule 5 years service 5 years service Benefit Payments monthly for life monthly for life
Retirement Age 62 57
Monthly Benefits, as a % of Eligible Compensation 2.00% 2.70% Required Employee Contribution Rates 7.75% 13.75%
Required Employer Contribution Rates 7.870% 13.760%
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. 592
40 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) (Continued) For the year ended June 30, 2025, $1,185,357 of contributions was recognized as part of the pension expense.

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

Proportionate Share of
Net Pension Liability/(Asset)
Miscellaneous $ 2,652,416
Safety $ 5,060,802

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 Plan 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. 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, 2024 and 2025 was as follows:

Miscellaneous Safety
Proportion – June 30, 2024 0.05297% 0.06947%
Proportion – June 30, 2025 0.05484% 0.06941%
Change – Increase/(Decrease) 0.00187% 0.00006%
593
41 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) (Continued) For the year ended June 30, 2025, the City recognized pension expense of $2,029,349. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:

Deferred Outflows
of Resources
Deferred Inflows of
Resources
Pension contributions subsequent to
measurement date 1,385,765 $ - $
Change in employer's proportion 411,600 -
Difference between employer's contributions and
proportionate share of contributions 70,526 (96,935)
Changes in assumptions 192,861 -
Differences between projected and
actual investments earnings 397,312 -
Difference between expected and actual
experience (22,377) 642,332
Total 3,100,396 $ (119,312) $
The $1,385,765 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
June 30
2026 686,081 $
2027 1,007,155
2028 38,108
2029 (136,024)
Thereafter -
594
42 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) (Continued) Actuarial Methods Assumptions – The collective total pension liability for the June 30, 2024 measurement period was determined by an actuarial valuation as of June 30, 2023, with update procedures used to roll forward the total pension liability to June 30, 2024. The collective total pension liability was based on the following assumptions:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal Cost Method in
accordance with the requirements of
GASB Statement No. 68
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table Derived using CalPERS' Membership
Date for all Funds
Post Retirement Benefit Increase Contract COLA up to 2.3% until Purchasing Power Protection
Allowance Floor on Purchasing Power
applies
Investment Rate of Return 6.90%
Mortality Derived using CalPERS' Membership
Data for all Funds
1 The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.

All other actuarial assumptions used in the June 30, 2018 valuation was based on the results of an December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015), including updates to salary increase, mortality and retirement rates. The Experience Study can be obtained at CalPERS’ website.

Change of assumptions – None.
595
43 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) (Continued) Discount rate – The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

In determining the long-term expected rate of return, CalPERS took into account both short-term and longterm market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The long-term expected real rates of return by asset class can be found in CalPERS’ Comprehensive Annual Financial Report for the fiscal year ended June 30, 2024.

The table below reflects long-term expected real rates of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The geometric rates of return are net of administrative expenses.

Asset Class
Assumed Asset
Allocation
Real Return
Years 1-10
1,
2 Global Equity - cap-weighted 30% 4.54%
Global Equity - noncap-weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-backed Securities 5% 0.50%
Investment Grade Corporates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage -5% -0.59%
Total 100%
1 An expected inflation of 2.3% used for this period
2 Figures are based on the 2021-22 Asset Liability Management study. 596
44 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) (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 pension liability for each Plan, calculating using the discount rate of each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (5.90%) or 1-percentage point higher (7.90%) than the current rate:
1% Decrease
(5.90%)
Current Discount
Rate
(6.90%)
1% Increase
(7.90%)
Miscellaneous 4,734,101 $ 2,652,416 $ 938,883 $
Safety 8,129,758 $ 5,060,802 $ 2,550,827 $
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Payable to the Pension Plan – At June 30, 2025, the City has no outstanding amount of contributions to the pension plan required for the year ended June 30, 2025.

Note 12 – Subsequent Events
The City evaluated subsequent events for recognition and disclosure through July 31, 2026, the date which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2025 that required recognition or disclosure in such financial statements.
597
45 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 13 – Excess of Expenditures over Appropriations
The excess of expenditures over appropriations are as follows:

General Fund:

Current:

General government $ 198,530
Capital outlay $ 349,975
Other financing uses
Transfers out $ 168,615
Program Income Fund:

Current:

Community development $ 5,724
Low-Moderate Housing Asset Fund:

Current:

Community development $ 18,941
Measure X Fund:

Current:

Public works $ 25,658
The excess of expenditures over appropriations are covered by the available fund balance in the General Fund and future revenues for the Low-Moderate Housing Asset Fund, Program Income Fund, and Measure X Fund.
598
46 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
Note 14 – Restatement of Net Position
Fund Reclassifications – Major and Nonmajor Funds
During the fiscal year ended 2025, the City conducted an annual review of its fund structure. As part of this review and in compliance with GASB Statement No. 100, Accounting Changes and Error Corrections, the City identified necessary reclassifications to enhance transparency, improve financial reporting accuracy, and ensure consistency with updated accounting standards. As a result, the following funds were reclassified:

Fund Name Previous Classification New Classification Reason for Classification American Rescue Plan Act Major NonMajor The decrease in overall activity caused the fund to no longer meet the criteria for a
major fund, resulting in its reclassification as
nonmajor
Park Grant Prop 68 Major NonMajor The decrease in overall activity caused the fund to no longer meet the criteria for a
major fund, resulting in its reclassification as
nonmajor
Low-Moderate Housing Asset NonMajor Major The increase in overall activity caused the fund to meet the criteria for a major fund,
resulting in its reclassification as major
These reclassifications have been applied retrospectively to prior-period financial statements for comparability. The following table summarizes the impact of these reclassifications on beginning fund balances and net position:

American Rescue
Plan Act
LowModerate
Housing Asset
Park Grant
Prop 68
Other
Governmental
Funds
Beginning of year, previously stated $ 2,557,139 $ - $ (230,243) 9,415,576 $ Change within financial reporting entity (major to nonmajor) (2,557,139) - 230,243 2,326,896 Change within financial reporting entity (nonmajor to major) - (7,582) - 7,582 Beginning of year, restated $ - $ - $ - $ 11,742,472
599

REQUIRED SUPPLEMENTARY INFORMATION
600
47 CITY OF SOLEDAD

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Taxes 11,473,300 $ 11,473,300 $ 12,051,225 $ 577,925 $
Licenses and permits 851,500 851,500 473,856 (377,644)
Intergovernmental 173,500 173,500 400,433 226,933
Charges for services 180,000 180,000 309,526 129,526
Fines and forfeitures 46,500 46,500 45,345 (1,155)
Interest 391,000 391,000 554,028 163,028
Rents 55,000 55,000 49,708 (5,292)
Other 220,000 220,000 211,954 (8,046)
Total revenue 13,390,800 13,390,800 14,096,075 705,275
Expenditures
Current
General government 2,490,622 2,490,622 2,689,152 (198,530) Public works 2,425,537 2,425,537 2,415,910 9,627
Community development 1,545,355 1,545,355 1,299,728 245,627 Public safety 7,212,064 7,212,064 7,092,090 119,974
Community services 1,287,071 1,287,071 1,199,589 87,482 Capital outlay 35,500 35,500 385,475 (349,975)
Debt Service
Principal 102,632 102,632 102,632 -
Total expenditures 15,098,781 15,098,781 15,184,576 (85,795) Revenue over (under)expenditures (1,707,981) (1,707,981) (1,088,501) 619,480 Other Financing Sources
Transfers in (out) - net 1,334,681 1,334,681 1,166,066 (168,615) Net Change in Fund Balance $ (373,300) (373,300) $ 77,565 $ 450,865 Fund Balance
Beginning of year 13,479,023
End of year $ 13,556,588
601
48 CITY OF SOLEDAD

BUDGETARY COMPARISON SCHEDULE

PROGRAM INCOME FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Interest $ 13,500 13,500 $ 27,049 $ 13,549 $
Loan repayments 56,000 56,000 258,025 202,025
Total revenue 69,500 69,500 285,074 215,574
Expenditures
Current
Community development 2,500 2,500 8,224 (5,724)
Total expenditures 2,500 2,500 8,224 (5,724)
Net Change in Fund Balance $ 67,000 67,000 $ 276,850 $ 209,850 Fund Balance
Beginning of year 492,374
End of year $ 769,224
602
49 CITY OF SOLEDAD

BUDGETARY COMPARISON SCHEDULE

LOW-MODERATE HOUSING ASSET FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Intergovernmental $ - - $ - $ - $
Total revenue - - - -
Expenditures
Current
Community development 7,500 7,500 26,441 (18,941)
Total expenditures 7,500 7,500 26,441 (18,941)
Revenue over (under)expenditures (7,500) (7,500) (26,441) (18,941) Other Financing Sources
Transfers in (out) - net - - 34,023 34,023
Net Change in Fund Balance $ (7,500) (7,500) $ 7,582 $ 15,082 Fund Balance
Beginning of year (7,582)
End of year $ -
603
50 CITY OF SOLEDAD

BUDGETARY COMPARISON SCHEDULE

MEASURE X FUND
YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Taxes and assessments 850,000 $ 850,000 $ 981,601 $ 131,601 $ Interest - - 158,044 158,044
Intergovernmental - - 68,336 68,336
Total revenue 850,000 850,000 1,207,981 357,981
Expenditures
Current
Public works 167,456 167,456 193,114 (25,658)
Capital outlay 4,458,549 4,458,549 4,458,549 -
Total expenditures 4,626,005 4,626,005 4,651,663 (25,658) Net Change in Fund Balance $ (3,776,005) (3,776,005) $ (3,443,682) $ 332,323 Fund Balance
Beginning of year 4,863,340
End of year $ 1,419,658
604
51 CITY OF SOLEDAD SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF NET PENSION LIABILITY LAST 10 YEARS* YEAR ENDED JUNE 30, 2025 Miscellaneous Plan:

Proportion of the net
pension liability
Proportionate share of the net
pension liability
Covered - employee
payroll
Proportionate share of the
net pension liability as a
percentage of
covered-employee payroll
Plan's fiduciary
net position
Plan's fiduciary net position
as a percentage of the Total
Pension Liability
2016 0.02608% 706,131 $ 2,218,866 $ 31.82% 4,764,400 $ 86.914% 2017 0.03048% 1,058,944 $ 2,498,215 $ 42.39% 4,887,163 $ 82.191% 2018 0.03308% 1,303,916 $ 2,514,038 $ 51.87% 5,573,589 $ 81.041% 2019 0.03322% 1,251,774 $ 2,375,546 $ 52.69% 6,634,706 $ 84.128% 2020 0.03643% 1,459,009 $ 2,513,003 $ 58.06% 7,479,133 $ 83.677% 2021 0.03996% 1,685,422 $ 2,803,460 $ 60.12% 8,255,376 $ 83.045% 2022 0.02276% 432,090 $ 3,416,711 $ 12.65% 10,626,299 $ 96.093% 2023 0.04746% 2,220,927 $ 4,490,090 $ 49.46% 10,350,858 $ 82.334% 2024 0.05297% 2,648,553 $ 4,826,804 $ 54.87% 11,539,306 $ 81.332% 2025 0.05484% 2,652,416 $ 5,424,997 $ 48.89% 12,774,284 $ 82.806% Safety Plan:
2016 0.05496% 2,264,409 $ 1,243,281 $ 182.13% 7,303,514 $ 76.338% 2017 0.05453% 2,824,201 $ 1,330,635 $ 212.24% 7,469,874 $ 72.565% 2018 0.05443% 3,252,288 $ 1,446,149 $ 224.89% 8,745,272 $ 72.892% 2019 0.05492% 3,518,548 $ 1,543,148 $ 228.01% 11,383,719 $ 77.938% 2020 0.05883% 3,672,312 $ 1,648,187 $ 222.81% 12,617,720 $ 77.457% 2021 0.05896% 3,928,420 $ 1,500,361 $ 261.83% 13,292,935 $ 77.189% 2022 0.05436% 1,907,684 $ 1,636,722 $ 116.56% 16,256,088 $ 89.497% 2023 0.06826% 4,690,631 $ 1,837,972 $ 255.21% 15,167,578 $ 76.379% 2024 0.06947% 5,193,071 $ 1,616,895 $ 321.18% 16,050,456 $ 75.555% 2025 0.06941% 5,060,802 $ 1,728,591 $ 292.77% 17,406,092 $ 77.474% Changes of Assumptions: None.
605
52 CITY OF SOLEDAD SCHEDULE OF CONTRIBUTIONS LAST 10 YEARS* YEAR ENDED JUNE 30, 2025 Contractually
required contribution
(actuarially
determined)
Contributions in relation to the
actuarially determined contributions
Contributions
deficiency (excess) Covered-employee payroll
Contributions as a
percentage of
covered-employee
payroll
Miscellaneous Plan:
2016 185,905 $ (185,905) $ - $ 2,218,866 $ 8.38%
2017 190,660 $ (190,660) $ - $ 2,498,215 $ 7.63%
2018 204,609 $ (204,609) $ - $ 2,514,038 $ 8.14%
2019 214,151 $ (214,151) $ - $ 2,375,546 $ 9.01%
2020 252,840 $ (252,840) $ - $ 2,513,003 $ 10.06%
2021 287,787 $ (287,787) $ - $ 2,803,460 $ 10.27%
2022 354,799 $ (354,799) $ - $ 3,416,711 $ 10.38%
2023 457,029 $ (457,029) $ - $ 4,490,090 $ 10.18%
2024 514,714 $ (514,714) $ - $ 4,826,804 $ 10.66%
2025 549,763 $ (549,763) $ - $ 5,424,997 $ 10.13%
Safety Plan:
2016 273,761 $ (273,761) $ - $ 1,243,281 $ 22.02%
2017 360,960 $ (360,960) $ - $ 1,330,635 $ 27.13%
2018 341,676 $ (341,676) $ - $ 1,446,149 $ 23.63%
2019 351,948 $ (351,948) $ - $ 1,543,148 $ 22.81%
2020 424,542 $ (424,542) $ - $ 1,648,187 $ 25.76%
2021 461,523 $ (461,523) $ - $ 1,500,361 $ 30.76%
2022 546,871 $ (546,871) $ - $ 1,636,722 $ 33.41%
2023 607,731 $ (607,731) $ - $ 1,837,972 $ 33.07%
2024 656,788 $ (656,788) $ - $ 1,616,895 $ 40.62%
2025 635,594 $ (635,594) $ - $ 1,728,591 $ 36.77%
606

SUPPLEMENTAL ONLY INFORMATION
607
See accompanying notes. 53
CITY OF SOLEDAD COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2025 Formerly Major
Maintenance Public Gas Park Grant REAP
Districts Safety Tax Prop 68 Grant
SSETS
Cash and investments 3,658,074 $ 760,568 $ - $ - $ - $
Accounts receivable - - 391,225 - -
Due from other governments - 16,400 - - 12,063
Interest receivable 2,174 464 - - -
Notes receivable - - - - -
Total assets $ 777,432 3,660,248 $ 391,225 $ - $ 12,063 $

IABILITIES
Accounts payable and accrued expense 61,992 $ 8,353 $ 71,360 $ - $ 875 $ Due to other funds - - 285,276 - 11,188
Total liabilities 8,353 61,992 356,636 - 12,063

EFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - -
Total deferred inflows of resources - - - - -

UND BALANCE
Restricted
Capital improvement projects - - - - -
Circulation improvements - - 34,589 - -
Public safety programs - 769,079 - - -
Community services - - - - -
Lighting, landscape & park maintenance - 3,598,256 - - - Total fund balance 3,598,256 769,079 34,589 - -
$ 777,432 3,660,248 $ 391,225 $ - $ 12,063 $
Total liabilities, deferred inflows of resources and fund balance Special Revenue Funds
608
See accompanying notes. 54
CITY OF SOLEDAD COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2025 Formerly Nonmajor Formerly Major
Low-Moderate American Vehicle CDBGHousing Asset Rescue Plan Abatement Business Loans ASSETS
Cash and investments - $ 427,682 $ 65,806 $ - $
Accounts receivable - - - -Due from other governments - - 11,183 89,349Interest receivable - - 38 43Notes receivable - - - 472,724 Total assets $ 427,682 - $ 77,027 $ 562,116 $

LIABILITIES
Accounts payable and accrued expense - $ 427,682 $ - $ 9,335 $ Due to other funds - - - 59,057
Total liabilities 427,682 - - 68,392

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - 472,724
Total deferred inflows of resources - - - 472,724

FUND BALANCE
Restricted
Capital improvement projects - - - -
Circulation improvements - - - -
Public safety programs - - 77,027 -
Community services - - - 21,000
Lighting, landscape & park maintenance - - - -
Total fund balance - - 77,027 21,000
$ 427,682 - $ 77,027 $ 562,116 $
Total liabilities, deferred inflows of resources and fund balance Special Revenue Funds
609
See accompanying notes. 55
CITY OF SOLEDAD COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2025 Capital Projects
Fund Total
Non-major
20-CDBG 20-CDBG Development Governmental
SB1 CV1-00058 12084 Impact Funds
ASSETS
Cash and investments 2,774,781 $ - $ 16,766 $ 2,248,056 $ 9,951,733 $ Accounts receivable - - - - 391,225
Due from other governments 132,485 - - - 261,480
Interest receivable 1,587 - 70 1,650 6,026
Notes receivable 56,422 - 310,137 53,975 893,258
Total assets $ 56,422 2,908,853 $ 326,973 $ 2,303,681 $ 11,503,722 $

LIABILITIES
Accounts payable and accrued expense - $ - $ 16,836 $ 16,222 612,655 $ Due to other funds - - - - 355,521
Total liabilities - - 16,836 16,222 968,176

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 56,422 - 310,137 53,975 893,258
Total deferred inflows of resources 56,422 - 310,137 53,975 893,258

FUND BALANCE
Restricted
Capital improvement projects - - - 2,233,484 2,233,484Circulation improvements 2,908,853 - - - 2,943,442Public safety programs - - - - 846,106Community services - - - - 21,000Lighting, landscape & park maintenance - - - - 3,598,256 Total fund balance 2,908,853 - - 2,233,484 9,642,288
$ 56,422 2,908,853 $ 326,973 $ 2,303,681 $ 11,503,722 $ Total liabilities, deferred inflows of resources and fund balance Special Revenue Funds
610
See accompanying notes. 56
CITY OF SOLEDAD COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2025 Formerly Major
Maintenance Public Gas Park Grant REAP
Districts Safety Tax Prop 68 Grant
Revenue
Taxes and assessments 873,005 $ 61,982 $ - $ - $ - $ Licenses, permits and impact fees - - - - -Intergovernmental - 74,325 747,100 230,243 29,051Interest 35,836 151,771 507,804 - - Loan repayments - - - - -Other - - 46,223 - -
Total revenue 1,024,776 172,143 1,301,127 230,243 29,051 Expenditures
Public works 636,522 - 1,044,917 - -Community development - - - - 29,051Public Safety - 106,063 - - -Parks and recreation - - - - -Capital outlay - 91,638 253,959 - -Debt service Interest - - - - -
Total expenditures 197,701 636,522 1,298,876 - 29,051
Revenue over (under) expenditures 388,254 (25,558) 2,251 230,243 - Other financing sources/(uses)
Operating transfers in/(out) - net - (141,791) - - -
(141,791) - - - -
Change in Fund Balance (25,558) 246,463 2,251 230,243 - Fund Balance
Beginning of year, previously stated 794,637 3,351,793 32,338 - - Change with in financial reporting entity (nonmajor to major) - - - - -Change with in financial reporting entity (major to nonmajor) - - - (230,243) - End of year 3,598,256 $ 769,079 $ 34,589 $ - $ - $
Special Revenue Funds
611
See accompanying notes. 57
CITY OF SOLEDADCOMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2025 Formerly Nonmajor Formerly Major
Low-Moderate American Vehicle CDBGHousing Asset Rescue Plan Abatement Business Loans Revenue
Taxes and assessments - $ - $ - $ - $
Licenses, permits and impact fees - - - -
Intergovernmental - - 17,608 108,491
Interest 58,038 - 2,774 8,048
Loan repayments - - - 16,943
Other - - - -
Total revenue 58,038 - 20,382 133,482
Expenditures
Public works - - - -
Community development - 76,534 - 170,105Public Safety - - - - Community services - - 21,924 -
Capital outlay - 2,538,643 - -Debt service
Interest - - - -
Total expenditures 2,615,177 - 21,924 170,105
Revenue over (under) expenditures - (2,557,139) (1,542) (36,623) Other financing sources/(uses)
Operating transfers in/(out) - net - - - -
- - - -
Change in Fund Balance (2,557,139) - (1,542) (36,623)
Fund Balance
Beginning of year, previously stated - (7,582) 78,569 57,623 Change with in financial reporting entity (nonmajor to major) 7,582 - - - Change with in financial reporting entity (major to nonmajor) 2,557,139 - - - End of year - $ - $ 77,027 $ 21,000 $
Special Revenue Funds
612
See accompanying notes. 58
CITY OF SOLEDADCOMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2025 Capital Projects Total
Fund Non-major
20-CDBG 20-CDBG Development Governmental
SB1 CV1-00058 12084 Impact Funds
Revenue
Taxes and assessments 751,815 $ - $ - $ - $ 1,686,802 $ Licenses, permits and impact fees - - - 205,651 205,651 Intergovernmental - - - - 1,206,818
Interest 584 107,554 7,681 123,871 1,003,961
Loan repayments - 3,812 - - 20,755
Other - - - - 46,223
Total revenue 4,396 859,369 7,681 329,522 4,170,210
Expenditures
Public works 313,716 - - - 1,995,155
Community development - - 109,708 96,936 482,334
Public Safety - - - 231,925 337,988
Community services - - - 235,910 257,834
Capital outlay - - - 172,312 3,056,552
Debt service
Interest - - - 153 153
Total expenditures - 313,716 109,708 737,236 6,130,016
Revenue over (under) expenditures 545,653 4,396 (102,027) (407,714) (1,959,806) Other financing sources/(uses)
Operating transfers in/(out) - net - - - (6,169) (147,960) - - - (6,169) (147,960)
Change in Fund Balance 4,396 545,653 (102,027) (413,883) (2,107,766) Fund Balance
Beginning of year, previously stated (4,396) 2,363,200 102,027 2,647,367 9,415,576 Change with in financial reporting entity (nonmajor to major) - - - - 7,582 Change with in financial reporting entity (major to nonmajor) - - - - 2,326,896 End of year 2,908,853 $ - $ - $ 2,233,484 $ 9,642,288 $ Special Revenue Funds
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RYAN P. JOLLEY

A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS Ryan P. Jolley C.P.A.

Bryant L. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Brandon J. Lang C.P.A.

Lan T. Kimoto
Kali A. Kaakah

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER

MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and City Council
City of Soledad, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of City of Soledad (the “City”), California, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise City’s basic financial statements, and have issued our report thereon dated July 31, 2026.

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

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

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
1753 E. FIR AVENUE FRESNO, CALIFORNIA 93720 PHONE 559.659.3045 FAX 559.659.0615 614
60 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

July 31, 2026
615
RYAN P. JOLLEY

A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS Ryan P. Jolley C.P.A.

Bryant L. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Brandon J. Lang C.P.A.

Lan T. Kimoto
Kali A. Kaakah
1753 E. FIR AVENUE FRESNO, CALIFORNIA 93720 PHONE 559.659.3045 FAX 559.659.0615 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE

REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and City Council
City of Soledad, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited City of Soledad (the “City”), California’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2025. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2025.

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

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program.

Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

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

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

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

Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
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63 Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

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

July 31, 2026
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64 CITY OF SOLEDAD

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2025
Assistance Agency or
Federal Grantor/Pass-through Listing Pass-through Federal Grantor/Program Title Number Number Expenditures
U.S. Department of Housing and Urban Development
Passed through from the California Department of Housing and Community Development
Community Development Block Grant 14.228 20-CDBG-12084 109,707 $ Community Development Block Grant 14.228 CDBG-CV2/CV3 61,613 Community Development Block Grant 14.228 22-CDBG-ED-30043 108,491 HOME Investment Partnerships Program 14.239 N/A 8,225
U.S. Department of the Treasury
Coronavirus State and Local Fiscal Recovery 21.027 N/A 2,615,177 Total Federal Expenditures $ 2,903,213
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65 CITY OF SOLEDAD

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2025
Note 1 – Significant Accounting Policies
The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs of the City of Soledad, California (the City). Federal awards received directly from federal agencies as well as federal awards passed through other nonfederal agencies, primarily the State of California, are included in the SEFA. The City’s reporting entity is defined in Note 1 to the City’s basic financial statements.

Note 2 – Basis of Accounting
The accompanying SEFA is presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in Note 1 to the City’s basic financial statements. The information in the SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in, or used in the preparation of, the SEFA may differ from amounts presented in the basic financial statements
Note 3 – Relationship to the Financial Statements
Expenditures of federal awards are reported in the City’s basic financial statements as expenditures/expenses in the General Fund, nonmajor special revenue funds, nonmajor capital project funds, and the enterprise funds.

Note 4 – Indirect Cost Rate
The City did not elect to use the 10% de minimus cost rate as covered in 2 CFR §200.414. 620
66 CITY OF SOLEDAD

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2025
A. Summary of Auditor’s Results
Financial Statements
Type of auditor’s report issued: Unmodified

Internal control over financial reporting:
 Material weaknesses identified? Yes No
 Significant deficiencies identified that are
not considered to be material weaknesses? Yes None reported  Non-compliance material to financial
statements noted? Yes No
Federal Awards
Internal control over major programs:
 Material weaknesses identified? Yes No
 Significant deficiencies identified that are
not considered to be material weaknesses? Yes None reported Type of auditor’s report issued on compliance for
major programs: Unmodified
Any audit findings disclosed that are required to
be reported in accordance with 2 CFR
200.516(a)? Yes No
Identification of Major Programs
Assistance Listing Number Name of Federal Program or Cluster

21.027 Coronavirus State and Local Fiscal Recovery
Funds
Dollar threshold used to distinguish between
Type A and Type B programs: $750,000
Auditee qualified as low-risk auditee? Yes No
B. Findings – Financial Statements Audit
None noted.

C. Findings and Questioned Costs – Major Federal Award Programs Audit None noted.
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67 CITY OF SOLEDAD

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
YEAR ENDED JUNE 30, 2025
Summary Schedule of Prior Audit Findings
There were no prior year audit findings.
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CITY OF SOLEDAD

MANAGEMENT REPORT
FOR THE YEAR ENDED JUNE 30, 2025
623

TABLE OF

CONTENTS
Page
Required Communications 1 – 3
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RYAN P. JOLLEY

A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS Ryan P. Jolley C.P.A.

Bryant L. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Brandon J. Lang C.P.A.

Lan T. Kimoto
Kali A. Kaakah
To the Honorable Mayor and City Council
City of Soledad, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Soledad for the year ended June 30, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and, if applicable, Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated February 28, 2026. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Soledad are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2025. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

We noted no transactions entered into by City of Soledad during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:

Management has determined the economic useful lives of fixed assets based on past history of similar types of assets, future plans as to their use, and other factors that impact their economic value to the City. We evaluated the key factors and assumptions used by management in computing depreciation expense and believe that it is reasonable in relation to the financial statements taken as a whole.
625
2 Management’s estimate of the net pension liability and related deferrals is based on actuarial valuations which include significant assumptions regarding discount rate, inflation, payroll growth, projected salary increases and investment rate of return. We evaluated the key factors and assumptions used to develop the liability and related deferrals in determining that it is reasonable in relation to the financial statements taken as a whole.

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

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

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

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

Management Representations
We have requested certain representations from management that are included in the management representation letter dated July 31, 2026.

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

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

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

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

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

Very truly yours,
July 31, 2026
627
RYAN P. JOLLEY

A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS Ryan P. Jolley C.P.A.

Bryant L. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Brandon J. Lang C.P.A.

Lan T. Kimoto
Kali A. Kaakah
1753 E. FIR AVENUE FRESNO, CALIFORNIA 93720 PHONE 559.659.3045 FAX 559.659.0615 July 31, 2026
City of Soledad/Measure S and Measure Y Committee
248 Main Street
Soledad, CA 93960
Ladies and Gentlemen:

As part of our audit is the review of cash receipts and disbursements related to Measure S and Measure Y sales tax. In connection with the audit, we examined the Measure S and Measure Y remittances and expenditures noting that the activity had been accounted for in a separate Measure S and Measure Y department.

During our audit, we familiarized ourselves with the expenditure and budget guidelines set by the City Council and noted that current year expenditures were within these guidelines. Measure S and Measure Y revenues were $1,139,710 and $2,347,251, respectively.

Our initial conclusion is that Measure S and Measure Y cash receipts and disbursements have been accounted for in a proper manner which is consistent with the ordinance that authorized the Measure S and Measure Y general use tax.

Should you have any further questions relating to this or any other audit issue, please feel free to contact me at any time.

Sincerely,
Ryan P. Jolley, CPA
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