Agenda — Tehachapi City Council, March 2, 2026 (part 1 of 2)

TEHACHAPI POLICE DEPARTMENT

EMERGENCY OPERATIONS CENTER
220 WEST C STREET
AGENDA

TEHACHAPI CITY COUNCIL REGULAR MEETING,

TEHACHAPI REDEVELOPMENT SUCCESSOR AGENCY REGULAR MEETING,

TEHACHAPI PUBLIC FINANCING AUTHORITY REGULAR MEETING, AND

TEHACHAPI CITY FINANCING CORPORATION REGULAR MEETING
MONDAY, MARCH 2, 2026 - 6:00 P.M.

Persons desiring disability-related accommodations should contact the City Clerk prior to the meeting for the accommodation. A copy of any writing that is a public record relating to an open session of this meeting is available at City Hall, 115 South Robinson Street, Tehachapi, California.

Pursuant to G.C. Section 54957.5(b)(2) the designated office for inspection of records in connection with the meeting is the Office of the City Clerk, City Hall, 115 S. Robinson Street, Tehachapi, CA. Any items distributed to the City Council after posting of the Agenda Packet will be available for inspection at the Office of the City Clerk at City Hall. If you would like additional information on any item appearing on this agenda, please contact the Office of the City Clerk at (661) 822-2200.

CALL TO ORDER

ROLL CALL

INVOCATION
Participation in the invocation is strictly voluntary. Each city councilmember, city employee, and each person in attendance may participate or not participate as he or she chooses.

PLEDGE TO FLAG

CITY CLERK REPORTS

1. City Council Appointment – APPOINT ONE MEMBER TO THE TEHACHAPI CITY COUNCIL TO COMPLETE A TERM TO EXPIRE FOLLOWING THE CERTIFICATION OF THE NOVEMBER 2026 ELECTION

CONSENT AGENDA
All items listed with an asterisk (*) are considered to be routine and non-controversial by city staff.

Consent items will be considered first and may be approved by one motion if no member of the council or audience wishes to comment or ask questions. If comment or discussion is desired by anyone, the item will be removed from the consent agenda and will be considered in listed sequence with an opportunity for any member of the public to address the city council concerning the item before action is taken. Staff recommendations are shown in caps.

TEHACHAPI CITY COUNCIL REGULAR MEETING,

TEHACHAPI REDEVELOPMENT SUCCESSOR AGENCY REGULAR MEETING,

TEHACHAPI PUBLIC FINANCING AUTHORITY REGULAR MEETING, AND

TEHACHAPI CITY FINANCING CORPORATION REGULAR MEETING
MONDAY, MARCH 2, 2026 - 6:00 P.M. - PG. 2

AUDIENCE ORAL AND WRITTEN COMMUNICATIONS
The City Council welcomes public comments on any items within the subject matter jurisdiction of the Council. We respectfully request that this public forum be utilized in a positive and constructive manner.

Persons addressing the Council should first state their name and area of residence, the matter of City business to be discussed, and the organization or persons represented, if any. To ensure accuracy in the minutes, please fill out a speaker’s card at the podium. Comments directed to an item on the agenda should be made at the time the item is called for discussion by the Mayor. Questions on non-agenda items directed to the Council or staff should be first submitted to the City Clerk in written form no later than 12:00 p.m. on the Monday preceding the Council meeting; otherwise, response to the question may be carried over to the next City Council meeting. No action can be taken by the Council on matters not listed on the agenda except in certain specified circumstances. The Council reserves the right to limit the speaking time of individual speakers and the time allotted for public presentations.

2. Public comment

CITY CLERK REPORTS - CONTINUED

ALL ORDINANCES SCHEDULED FOR INTRODUCTION OR ADOPTION AT THIS MEETING SHALL BE READ

BY TITLE ONLY
Tehachapi City Council Unassigned Res. No. 02-26
Tehachapi City Council Unassigned Ord. No. 26-02-786
Tehachapi Redevelopment Successor Agency Unassigned Res. No. 02-26 Tehachapi Public Financing Authority Unassigned Res. No. 01-26 * 3. Minutes for the Tehachapi City Council, Tehachapi Redevelopment Successor Agency, Tehachapi Public Financing Authority, and the Tehachapi City Financing Corporation regular meeting held on February 17, 2026 – APPROVE AND FILE

FINANCE REPORTS
* 4. Disbursements and bills for February 12, 2026, through February 25, 2026 – AUTHORIZE PAYMENTS

5. Fiscal Year End 2025 Financial Reports – INFORMATION ONLY * 6. Committed Fund Balance for fiscal year 2025-2026 – ADOPT A RESOLUTION ESTABLISHING THE COMMITTED FUND BALANCE AT $2,169,353 FOR FISCAL YEAR 2025-2026 AND REPEALING RESOLUTION NO. 31-25

TEHACHAPI CITY COUNCIL REGULAR MEETING,

TEHACHAPI REDEVELOPMENT SUCCESSOR AGENCY REGULAR MEETING,

TEHACHAPI PUBLIC FINANCING AUTHORITY REGULAR MEETING, AND

TEHACHAPI CITY FINANCING CORPORATION REGULAR MEETING
MONDAY, MARCH 2, 2026 - 6:00 P.M. - PG. 3

DEVELOPMENT SERVICES REPORTS

7. Notice of Completion – Pressure reducing stations at Applewood, Pinon, and Hickory project –

INFORMATION ONLY

POLICE DEPARTMENT REPORTS
* 8. AB 481 City of Tehachapi Police Department Military Equipment Policy and Annual Report for 2025 - APPROVE THE EXECUTIVE SUMMARY OF THE TEHACHAPI POLICE DEPARTMENT POLICY 806 –

MILITARY EQUIPMENT, WHICH IS TO SERVE AS THE ANNUAL REPORT IN ACCORDANCE WITH GOVERNMENT CODE 7072(a), AND AUTHORIZE STAFF TO SCHEDULE A PUBLIC MEETING AT THE TEHACHAPI POLICE DEPARTMENT WITHIN 30 DAYS OF SAID APPROVAL

CITY MANAGER REPORTS

9. Report to Council regarding current activities and programs – VERBAL REPORT

COUNCILMEMBER REPORTS
On their own initiative, a Councilmember may ask a question for clarification, make a brief announcement, provide a reference to staff or other resources for factual information, take action to have staff place a matter of business on a future agenda, request staff to report back at a subsequent meeting concerning any matter, or make a brief report on his or her own activities. (Per Gov’t. Code §54954.2(a)) If an item is listed below the Council has the option to take action or refer the matter to staff for a later agenda.

CLOSED SESSION

1. Closed Session Minutes for February 2, 2026 – APPROVE AND FILE

2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(d)(1): (4 cases) a. City of Tehachapi v. Tehachapi-Cummings County Water District, et al. Kern County Superior Court Case No. BCV-23-104134
b. City of Tehachapi v. Tehachapi-Cummings County Water District, et al. Kern County Superior Court Case No. BCV-24-101512
c. Tehachapi-Cummings County Water District v. City of Tehachapi, et al. Sacramento County Superior Court Case No. 34-2022-80003892-CU-WM-GDS
d. Tehachapi-Cummings County Water District v. City of Tehachapi, et al. Kern County Superior Court case No. BCV-25-103013

ADJOURNMENT
TO:

FROM:

DATE:

SUBJECT:

BACKGROUND

APPROVED

COUNCIL REPORTS
MEETING DATE: MARCH 2, 2026 AGENDA SECTION: CITY CLERK

HONORABLE MAYOR POGON-CORD AND COUNCIL MEMBERS

ASHLEY WHITMORE, GENERAL SERVICES DIRECTOR
FEBRUARY 26, 2026

CITY COUNCIL APPOINTMENT
With the resignation of Councilmember Michael Davies on January 20, 2026 a vacancy for the District 3 City Council seat was created. Mr. Davies term was set to expire following the certification of the November 2028 election. As the vacancy occurred in the first half of the term and more than 130 days from the next general municipal election, the appointed resident will only serve until the certification of the November 2026 election, at which point the seat will be filled by an elected candidate.

In response to the publication, the City Clerk's office received one application, from Marianna Gutierrez, a resident and registered voter of District 3.

RECOMMENDATION

APPOINT ONE MEMBER TO THE TEHACHAPI CITY COUNCIL TO COMPLETE A TERM TO EXPIRE FOLLOWING THE CERTIFICATION OF THE NOVEMBER 2026 ELECTION
(661) 822-2200
Fax: (661) 822-8559
Office Use Only
Registered Voter
Yes!WNo_
0 TEC�AC��P1
Live Up.

APPLICATION FOR APPOINTMENT
115 South Robinson Street
Tehachapi, CA 93561-1722
www.tehachapicityhall.com

OFFICE USE ONLY
City Resident: �
APPLICANTS ARE ENCOURAGED TO CONTACT EACH COUNCIL MEMBER TO COMMUNICATE THEIR INT��6ft�A�MENT. , .. �Rece,vea "' Submit Application To: City Clerk's Office
1 1 5 South Robinson Street
Tehachapi, CA 93561
Name Marianna Gutierrez
Address
City Tehachapi
Phone Number 6614733978
State CA
--- ------------
Email [email protected]
Position(s) Sought: (List in order of preference)

1. Council Member District 3

2. 3.

4. Occupation Real Estate Agent
Fax Number
FEB O 4 2026

CITY CLERK'S OFFICE
BY: ftWiu:qnll\o
Zip Code 93561
Business Name Downtown Country Real Estate - Marianna Gutierrez Real Estate Services Address 107 E Tehachapi Blvd
City Tehachapi
Phone Number 6618224433
State CA
Education - List schools attended and/or graduated, as well as degree(s):
alifornia State University - Northridge - Bachelors in Psychology nitek Bakersfield College - BSN RN - Currently enrolled Fax Number
---- ----------
Zip Code 93561

Page 1 of 2 ends

Other special training or experience:

Previous and present governmental and civic experience. Indicate when, position, and duties:
:City Treasurer - 2022 - Present
Please explain why you wish to serve on a Board/Commission for the City ofTehachapi:

See attached.

Do you have any interests or associations that might present a conflict of interest? Yes I If yes, please explain below.

Please attach your resume and any additional information or statements that you feel would be helpful in reviewing your qualifications

AUTHORIZATION AND RELEASE
I understand that in connection with this application for appointment, the information contained herein will be made available to the general public upon request.

Signature Field Date/Time Field
NOTE: This document is a public record and may be disclosed/released pursuant to the California Public Records Act
Print Form

Page 2 of 2 ends

Dear Mayor, Council & District 3 Members,
I am writing to express my sincere interest in serving District 3 through appointment to the City Council for the City of Tehachapi. This community has shaped my family's life in the most meaningful ways. This is where my children are growing up, where neighbors look out for one another, and where community still truly matters.

I want to be a council member who is accessible, practical, and focused on balanced progress - protecting the small-town character we love while planning responsibly for infrastructure, safety, and economic opportunity. District 3 deserves a representative who listens first, communicates clearly, and makes decisions with long-term community impact in mind.

I see firsthand how local decisions impact public safety, neighborhood stability, small businesses, and the long-term future of our city. I understand the trust residents place in their local leadership, and I take that responsibility seriously.

I believe District 3 deserves representation that is accessible, transparent, and grounded in real-life concerns. Families want safe neighborhoods. Homeowners want their investments protected. Business owners want the opportunity to grow. Residents want their voices heard. My commitment is to listen first, communicate openly, and make thoughtful decisions that balance responsible growth with preserving the small-town character that makes Tehachapi special.

I am seeking the opportunity to serve. I would be honored to represent the families, seniors, business owners, and neighbors of District 3 with integrity, care, and dedication. Tehachapi is not just where I live - it is home. and I am ready to give back in a meaningful way.

Thank you,
Marianna

TEHACHAPI POLICE DEPARTMENT

EMERGENCY OPERATIONS CENTER
220 WEST C STREET

MINUTES

TEHACHAPI CITY COUNCIL SPECIAL MEETING,

TEHACHAPI REDEVELOPMENT SUCCESSOR AGENCY SPECIAL MEETING,

TEHACHAPI PUBLIC FINANCING AUTHORITY SPECIAL MEETING, AND

TEHACHAPI CITY FINANCING CORPORATION SPECIAL MEETING
TUESDAY, FEBRUARY 17, 2026 – 6:00 P.M.

NOTE: Ch, Sm, Po and Pa are abbreviations for Council Members Chung, Smith, Pogon-Cord and Pauer, respectively. For example, Ch/Sm denotes Council Member Chung made the motion and Council Member Smith seconded it. The abbreviation Ab means absent, Abd abstained, Ns noes, and NAT no action taken.

ACTION TAKEN

CALL TO ORDER
Meeting called to order by Mayor Pogon-Cord at 6:00pm

ROLL CALL
Roll call by City Clerk Tori Marsh

Present: Mayor Pogon-Cord, Mayor Pro Tem Pauer, Councilmember Chung and Councilmember Smith

Absent: None, Vacancy (1)

INVOCATION
Led by Pastor Gerald Fair, Calvary Chapel Church

PLEDGE TO THE FLAG
Led by Mayor ProTem Pauer
CONSENT AGENDA Approved
Sm/Ch Ayes All

AUDIENCE ORAL AND WRITTEN COMMUNICATIONS

1. Public Comment

CITY CLERK REPORTS
* 2. Minutes for the Tehachapi City Council, Tehachapi Redevelopment Successor Agency, Tehachapi Public Financing Authority, and the Tehachapi City Financing Corporation regular meeting held on February 2, 2026 – APPROVED AND FILED Approved and Filed
Sm/Ch Ayes All
Tehachapi City Council Meeting – Tuesday, February 17, 2026 Tehachapi Redevelopment Successor Agency Special Meeting Tehachapi Public Financing Authority Special Meeting And Tehachapi City Financing Corporation Special Meeting ACTION TAKEN

FINANCE REPORTS
* 3. Disbursements and bills for January 29, 2026, through February 11, 2026 –

AUTHORIZED PAYMENTS
Approved and Filed
Sm/Ch Ayes All
* 4. City of Tehachapi Investment Report through January 2026 – RECEIVED REPORT Received Report Sm/Ch Ayes All

5. PUBLIC HEARING – Conducted a public hearing to receive public testimony concerning the transit needs within the city. The City of Tehachapi provides a transit service named Dial-A-Ride through Kern Regional Transit – OPENED HEARING AT 6:03PM; NOTICE OF PUBLIC HEARING WAS PUBLISHED IN THE TEHACHAPI NEWS ON JANUARY 14, 2026; NO CORRESPONDENCE WAS RECEIVED; FINANCE DIRECTOR HAMED JONES GAVE STAFF REPORT; NO PUBLIC COMMENTS RECEIVED; CLOSED HEARING AT 6:06PM; ADOPTED RESOLUTION NO. 01-26 FINDING THAT THERE ARE NO UNMET TRANSIT NEEDS

THAT ARE REASONABLE TO MEET WITHIN THE CITY
Adopted Resolution No. 01-26
Finding That There Are No
Unmet Transit Needs That Are
Reasonable To Meet Within The
City
Ch/Pa Ayes All
* 6. City Attorney hourly rate increase request from $180 to $225 per hour – APPROVED AN INCREASE IN THE CITY ATTORNEY’S BILLING RATE TO $225 PER

HOUR AND AUTHORIZED THE MAYOR TO SIGN AN AMENDMENT TO THE CITY ATTORNEY’S CONTRACT
Approved An Increase to the City
Attorney’s Billing Rate and
Authorized the Mayor to Sign an
Amendment to the City
Attorney’s Contract
Sm/Ch Ayes All

COMMUNITY ENGAGEMENT REPORTS

7. 2026 Community Event Schedule – INFORMATION ONLY

PLANNING DEPARTMENT REPORTS

8. Second reading and adoption of an Ordinance amending the zoning for APN No. 415-130-42 and No. 415-130-43 from Light Industrial (M-1) to General Commercial (C-3) for the Kern Community College District to construct a community college campus – ADOPTED ORDINANCE 26-01-785 AMENDING THE CITY’S OFFICIAL REGULATING PLAN REGARDING ASSESSOR’S PARCEL NUMBER 415-130-42 AND 415-130-43 OF THE TEHACHAPI ZONING CODE Adopted Ordinance 26-01-785
Amending the City’s Official
Regulating Plan Regarding
Assessor’s Parcel Number 415-
130-42 and 415-130-43 of the
Tehachapi Zoning Code
Sm/Ch Ayes All

CITY ATTORNEY REPORTS
* 9. The attorney’s Spring conference for the League of California Cities is scheduled for May 13-15, 2026. The registration fee is $675.00 and a two-night stay in the hotel is $239.00 per night. If approved by the City Council, the City’s share of the registration fee and hotel room would be $576.00 – APPROVE THE CITY’S

SHARE OF THE COST FOR THE CITY ATTORNEY TO ATTEND THE LEAGUE OF CALIFORNIA CITY’S SPRING CONFERENCE
Approved The City’s Share Of
The Cost For The City Attorney
To Attend The League Of
California Cities’ Spring
Conference
Sm/Ch Ayes All

CITY MANAGER REPORTS

10. Report to Council regarding current activities and programs – VERBAL REPORT Tehachapi City Council Meeting – Tuesday, February 17, 2026 Tehachapi Redevelopment Successor Agency Special Meeting Tehachapi Public Financing Authority Special Meeting And Tehachapi City Financing Corporation Special Meeting ACTION TAKEN

COUNCILMEMBER REPORTS

CLOSED SESSION

1. Closed Session Minutes for February 2, 2026 – APPROVED AND FILED Tabled

Sacramento County Superior Court Case No. 34-2022-80003892-CU-WMGDS d. Tehachapi-Cummings County Water District v. City of Tehachapi, et al. Kern County Superior Court case No. BCV-25-103013

ADJOURNMENT
The City Council/Boards adjourned at 6:28 p.m. to a City Council, Tehachapi Redevelopment Successor Agency, Tehachapi Public Financing Authority and Tehachapi City Financing Corporation Regular Meeting to be held on Tuesday, February 17, 2026 at 6:00 pm.

Adjourned At 6:28 pm
__________________________________

TORI MARSH, CMC
City Clerk, City of Tehachapi, California
Approved this 2
nd day
of March 2026.
___________________________

JOAN POGON-CORD
Mayor, City of Tehachapi, California
User:

Printed:

Accounts Payable
Checks by Date - Detail by Vendor Number
gdelgado
2/25/2026 1:46 PM
Check No Vendor No Vendor Name Check Date Check Amount
Invoice No Description Reference
ACH 0017 American Business Machines
852526 DSD/ Black Toner/ Annex Copier 15.00
Total for this ACH Check for Vendor 0017: 15.00
Total for Vendor 0017 (American Business Machines): 15.00 ACH 0027 Atco International
10654451 SWR/ Chemicals 233.82
10654451-1 SWR/ *USE TAX* Chemicals -17.82
Total for this ACH Check for Vendor 0027: 216.00
Total for Vendor 0027 (Atco International): 216.00
ACH 0061 BSK Associates
0112204 SWR/ Reclamation Site Monitoring 4,611.25
BJ00542 WTR/ Drinking Water Samples 94.33
BJ00574 WTR/ Drinking Water Samples 42.80
BJ00656 WTR/ Drinking Water Samples 42.80
BJ00664 WTR/ Drinking Water Samples 94.33
BJ00782 WTR/ Drinking Water Samples 42.80
Total for this ACH Check for Vendor 0061: 4,928.31
Total for Vendor 0061 (BSK Associates): 4,928.31
ACH 0127 State of California Department of Justice
024151 PD/ Fingerprinting Scans/ Acct#151470 49.00
Total for this ACH Check for Vendor 0127: 49.00
Total for Vendor 0127 (State of California Department of Justice): 49.00 ACH 0300 Mission Linen & Uniform Service
525477381 PW/ PW Linens/ Mats 290.20
525477382 SWR/ WWTP Mats 47.65
525520283 PW/ PW Linens/ Mats 290.20
525520284 SWR/ WWTP Mats 47.65
Total for this ACH Check for Vendor 0300: 675.70
Total for Vendor 0300 (Mission Linen & Uniform Service): 675.70 ACH 0347 Quinn Company
WO080095549 PW/ E-242 Repair 190.02
WO0800955551 WTR/ E-239 Repair 95.00
WO080095703 PW/ E-217 Repair 4,024.81
Total for this ACH Check for Vendor 0347: 4,309.83
Total for Vendor 0347 (Quinn Company): 4,309.83
ACH 0372 Southern California Edison
012326-D STRTS/ 8000117087/ Hw 202 (01/01-01/31/2026) 69.25 020626 LLD/ 8000191339/ 1199 Canyon Dr E (01/08-02/05/2026) 15.16 020626-A LLD/ 8000192404/ 1200 S Dennison Rd (01/08-02/05/2026) 15.16 020626-B LLD/ 8000193438/ 1202 S Dennison Rd (01/08-02/05/2026) 15.16 020626-C LLD/ 8000195859/ 1000 Canyon Dr W (01/08-02/05/2026) 15.76 020626-D LLD/ 8000844933/ 115 Manzanita Ln (01/08-02/05/2026) 15.55 020626-E LLD/ 8000850180/ 209 E Highline Rd Ped (01/08-02/05/2026) 15.76 020626-F AIR/ 8002672984/ 415 N Dennison (01/08-02/05/2026) 60.40 020626-G STRTS/ 8001470568/ 1300 Goodrick Dr #Z (01/08-02/05/2026) 15.16 020626-H WTR/ 8004425233/ NW Corner Anita & Dennison (01/08-02/05/2026) 4,134.26 020626-I WTR/ 8004425404/ Snyder Well- 126 S Snyder (01/08-02/05/2026) 102.05 020626-J SWR/ 8003048390/Borrow Pit- 755 Steuber Well(01/08-02/05/2026) 102.05 020626-K DR/ 8001115579/ Bailey Ct Pmp 409 Bailey (01/08-02/05/2026) 37.43 020926 WTR/ 8001340514/ 358 E D St- Mojave Well (01/07-02/04/26) 2,125.67 021726 STRTS/ 8003135063/ 800 S Curry St #A (01/15-02/16/2026) 96.21 021826 AIR/ 8001037981/ 409 Bryan Ct (01/16-02/17/2026) 301.13 021826-A PW/ 8001026848/ 101 Commercial Way (01/16-02/17/2026) 76.90 021826-B GG/ 8003354652/ 115 S Robinson St (01/16-02/17/2026) 1,578.05 021826-C DSD/ 8003367862/ 117 S Robinson St (01/16-02/17/2026) 365.93 021826-D AIR/ 8000146155/ Dennison S/O Hwy 58 (01/16-02/17/2026) 190.13 021826-E AIR/ 8000152422/ 314 N Hayes St (01/16-02/17/2026) 109.90 021826-F AIR/ 8000361331/ 314 N Hayes St Papi (01/16-02/17/2026) 80.42 021826-G AIR/ 8000880034/ 314 N Hayes St # G3 (01/16-02/17/2026) 24.22 021826-H AIR/ 8001144201/ 314 N Hayes St # B (01/16-02/17/2026) 645.08 021826-I AIR/ 8003312447/ 314 N Hayes St (01/16-02/17/2026) 153.50 021826-J AIR/ 8003312881/ 9999 1/2 Hayes St (01/16-02/17/2026) 123.73 021826-K AIR/ 8003326595/ 316 N Mojave St (01/16-02/17/2026) 38.60 021826-L AIR/ 8003354614/ West End Teh Airport (01/16-02/17/2026) 87.45 Total for this ACH Check for Vendor 0372: 10,610.07
Total for Vendor 0372 (Southern California Edison): 10,610.07 ACH 0395 The Gas Company
SCG021726 PD/ #96026/ 220 W C St (01/14-02/12/26) 879.25 SCG021726-A DSD/ #02005/ 117 S Robinson St (01/14-02/12/26) 283.13 SCG021726-B GG/ #04007/ 115 S Robinson St (01/14-02/12/26) 272.57 SCG021726-C AIR/ #99981/ 409 Bryan Ct (01/14-02/12/26) 162.61 SCG021726-D GG/ #64466/ 200 W Teh Blvd (01/14-02/12/26) 21.25 Total for this ACH Check for Vendor 0395: 1,618.81
Total for Vendor 0395 (The Gas Company): 1,618.81
ACH 0426 Tehachapi-Cummings County Water District
TCCWD-JAN2026 WTR/#5399/Pennzoil Quaker State-Landscape Billing (Jan 2026) 47.58 TCCWD-JAN2026-AWTR/#5400/Henway-Landscape Billing (Jan 2026) 4.50 TCCWD-JAN2026-BWTR/#5401/Benz-Landscape Billing (Jan 2026) 4.50 TCCWD-JAN2026-CWTR/#5402/ TUSD-Landscape Billing (Jan 2026) 4.50 TCCWD-JAN2026-DLLD/#5403/ Warrior Park-Landscape Billing (Jan 2026) 5.44 TCCWD-JAN2026-ELLD/#5404/ COT Landscaping-Landscape Billing (Jan 2026) 16.27 TCCWD-JAN2026-FLLD/#5405/ COT Median-Landscape Billing (Jan 2026) 5.25 TCCWD-JAN2026-GWTR/ #5434/ TUSD-DN2- Landscape Billing (Jan 2026) 4.54 TCCWD-JAN2026-HWTR/ #5435/ TUSD-DN4- Landscape Billing (Jan 2026) 4.50 TCCWD-JAN2026-IWTR/ #5437/ TUSD-DN6- Landscape Billing (Jan 2026) 5.50 TCCWD-JAN2026-JWTR/ #5438/ TUSD-DN8- Landscape Billing (Jan 2026) 4.63 TCCWD-JAN2026-KGG/ #5613/ Steuber- Landscape Billing (Jan 2026) 5.52 Total for this ACH Check for Vendor 0426: 112.73
Total for Vendor 0426 (Tehachapi-Cummings County Water District): 112.73 ACH 0450 USA BlueBook
INV00959263 WTR/ Tools 175.97
INV00962363 SWR/ Tools 627.98
Total for this ACH Check for Vendor 0450: 803.95
Total for Vendor 0450 (USA BlueBook): 803.95
ACH 0509 Safety-Kleen Systems Inc.
99293008 PW/ Oil Disposal 174.00
Total for this ACH Check for Vendor 0509: 174.00
Total for Vendor 0509 (Safety-Kleen Systems Inc.): 174.00 ACH 0543 BSE Rents
Con# 411263 PW/ Stump Cutter Rental- Pioneer Park 188.68 Total for this ACH Check for Vendor 0543: 188.68
Total for Vendor 0543 (BSE Rents): 188.68
ACH 0560 Kern Machinery
101-1309660 PW/ Keys for Shop 25.65
Total for this ACH Check for Vendor 0560: 25.65
Total for Vendor 0560 (Kern Machinery): 25.65
ACH 0842 Kern County Public Works Dept.

T19525 Kern Transit/ Dial-a-Ride Total Operation Costs (Dec 2025) 13,769.04 T19525-A Kern Transit/ Dial-a-Ride Less Farebox Revenue (Dec 2025) -300.28 Total for this ACH Check for Vendor 0842: 13,468.76
Total for Vendor 0842 (Kern County Public Works Dept.): 13,468.76 ACH 0956 League of California Cities
8270 GG/ League of CA Cities Division Dues (2026) 178.83 Total for this ACH Check for Vendor 0956: 178.83
Total for Vendor 0956 (League of California Cities): 178.83 ACH 1321 Culligan Water Conditioning
167450 PD/ Water Delivery Service (Feb 2026) 101.50
Total for this ACH Check for Vendor 1321: 101.50
Total for Vendor 1321 (Culligan Water Conditioning): 101.50 ACH 1441 Grainger
9779273680 PW/ Ceiling Tiles 190.25
9779273680-A PW/ Ceiling Tiles 176.23
9791989560 PW/ Shop Supplies 158.48
9798004959 PW/ Tools 17.19
9798333630 PW/ Tools 77.51
Total for this ACH Check for Vendor 1441: 619.66
Total for Vendor 1441 (Grainger): 619.66
ACH 1754 SWRCB-DWOCP
SWRCB-022326 WTR/ D-2 Renewal (B. Heffernan) 60.00
Total for this ACH Check for Vendor 1754: 60.00
Total for Vendor 1754 (SWRCB-DWOCP): 60.00
ACH 1982 SSD Alarm
P-01006424 SWR/ Remote Programming Fee 24.80
P-01006424-A WTR/ Remote Programming Fee 24.80
R-00641850 DSD/ Burglar/ Fire Alarm Services (Mar 2026) 60.90 R-00641850-A PW/ Burglar/ Fire Alarm Services (Mar 2026) 61.74 R-00641850-B PW/ Burglar/ Fire Alarm Services- PW Trailer (Mar 2026) 83.10 R-00641850-C WTR/Burglar/Fire Alarm Services- WTR Treatment Office (Mar 2026) 56.63 R-00641850-D SWR/Burglar/Fire Alarm Services- WTR Treatment Office (Mar 2026) 56.64 R-00641850-E WTR/Burglar/Fire Alarm Services- WTR Storage Facility (Mar 2026) 41.82 R-00641850-F SWR/Burglar/Fire Alarm Services- WTR Storage Facility (Mar 2026) 41.82 R-00641850-G RR/Burglar/Fire Alarm Services- RR Depot (Mar 2026) 112.30 R-00641850-H GG/Burglar/Fire Alarm Services- City Hall (Mar 2026) 55.94 R-00641850-I AIR/Burglar/Fire Alarm Services- Airport (Mar 2026) 86.83 R-00641850-J PD/Burglar/Fire Alarm Services (Mar 2026) 281.09 Total for this ACH Check for Vendor 1982: 988.41
Total for Vendor 1982 (SSD Alarm): 988.41
ACH 2026 AV Fuel Corporation
024026849 AIR/ 100 LL Fuel 17,217.69
Total for this ACH Check for Vendor 2026: 17,217.69
Total for Vendor 2026 (AV Fuel Corporation): 17,217.69
ACH 2478 Matrix Imaging Solutions LLC
DP2600334 REF/ Utility Bills- Printing (Jan 2026) 214.29 DP2600334-A WTR/ Utility Bills- Printing (Jan 2026) 214.30 DP2600334-B SWR/ Utility Bills- Printing (Jan 2026) 214.30 DP2600334-C REF/ Utility Bills- Postage (Jan 2026) 621.80 DP2600334-D WTR/ Utility Bills- Postage (Jan 2026) 621.79 DP2600334-E SWR/ Utility Bills- Postage (Jan 2026) 621.79 Total for this ACH Check for Vendor 2478: 2,508.27
Total for Vendor 2478 (Matrix Imaging Solutions LLC): 2,508.27 ACH 2539 Loop Electric Inc.
2123 STRTS/ Street Light Repairs (Gas Tax) 783.00
Total for this ACH Check for Vendor 2539: 783.00
Total for Vendor 2539 (Loop Electric Inc.): 783.00
ACH 2600 Holliday Rock Co. Inc.
1862740 PW/ Shop Concrete 1,772.94
1862740-1 WTR/ Shop Concrete 1,772.94
1862740-2 SWR/ Shop Concrete 1,772.94
Total for this ACH Check for Vendor 2600: 5,318.82
Total for Vendor 2600 (Holliday Rock Co. Inc.): 5,318.82 ACH 2695 Home Depot Credit Services
A-4080822 PW/ Shop Concrete *RETURN* -21.10
A-4080822-A WTR/ Shop Concrete *RETURN* -21.10
A-4080822-B SWR/ Shop Concrete *RETURN* -21.10
B-9100591 SWR/ WWTP Repairs/ *RETURN* -10.80
C-7900022 PW/ Shop Concrete/ *RETURN* -1,388.48
C-7900022-A WTR/ Shop Concrete/ *RETURN* -1,388.49
C-7900022-B SWR/ Shop Concrete/ *RETURN* -1,388.49
D-1510650 PW/ Totes for X-Mas Decorations 519.43
E-1510663 LLD/ Irrigation Repair 18.40
F-510711 PW/ Neck Gaitor 29.01
G-510784 WTR/ Latch for Well Site 8.97
H-9022322 PW/ Irrigation Repair 179.34
I-9130897 PW/ Irrigation Repair 39.02
J-9525003 PW/ Bathroom Supplies 6.80
K-9614464 WTR/ Neck Gaitors 31.61
L-9614516 PW/ Irrigation Repair 8.38
M-9625308 PW/ Irrigation Repair 71.72
N-8015090 PW/ Dog Station Install 4.85
N-8015090-A PW/ Tools 18.37
O-8022392 PW/ Trash Bags 185.93
P-8614535 PD/ Ice Melt for PD 86.44
Q-8614547 SWR/ Office Supplies 6.47
R-8614548 PW/ Tools 13.50
S-8614579 PW/ Tools 23.23
T-8625333 PW/ PPE 31.61
U-4131060 SWR/ WWTP Maintenance 15.10
V-4614913 PW/ Straps; Tools 136.18
V-4614913-A PW/ Google Nest Smart T-Stat 78.37
W-4625606 PW/ Vehicle Supplies 22.23
X-3022588 PW/ PPE 11.88
XA-3131121 SWR/ WWTP Shelf 35.66
XB-3525392 PW/ Tools 29.11
XC-3614948 PW/ Gloves 16.21
XC-3614948-A PW/ Vehicle Supplies 10.22
XD-3625632 PW/ Irrigation Repair 7.58
XE-2022635 LLD/ Irrigation Repair 17.62
XF-2022647 PD/ TE-43 Cable 21.62
XG-2511485 PW/ Tools 30.17
XH-2511527 PW/ Duplicate Keys 37.66
XI-2520019 PW/ Irrigation Repair 32.60
XJ-2615102 PW/ Dog Station Install 4.85
XK-1022744 PW/ Tools 306.82
XL-1131188 PW/ Tools 90.54
XM-1615134 WTR/ Hydrant Painting 38.49
XN-1615195 PW/ Tools 127.93
XO-6131460 SWR/ Dewater Bldg 16.22
XP-6512049 PW/ Court Repair 14.65
XQ-6512081 SWR/ Vehicle Supplies 12.49
XQ-6512081-A SWR/ Tools 91.85
XR-6520465 PW/ Depot Deck Repair 150.22
XS-6626111 WTR/ Water Leak Repair 70.32
XT-5120936 PW/ Tools 21.52
XU-5615682 PW/ Annex Repairs 43.21
XV-5626144 AIR/ HVAC 23.82
XV-5626144-A PW/ HVAC 91.92
XV-5626144-B WTR/ HVAC 91.93
XV-5626144-C SWR/ HVAC 91.93
XW-5626169 PW/ Tools 300.94
XX-4131547 PW/ Tools 26.99
XY-4512197 PW/ Shop Concrete 21.10
XY-4512197-A WTR/ Shop Concrete 21.10
XY-4512197-B SWR/ Shop Concrete 21.10
XZ-4512204 PW/ Shop Concrete 37.85
XZ-4512204-A WTR/ Shop Concrete 37.85
XZ-4512204-B SWR/ Shop Concrete 37.85
Y-4520580 PW/ Shop Concrete 19.93
Y-4520580-A WTR/ Shop Concrete 19.93
Y-4520580-B SWR/ Shop Concrete 19.93
YA-4626208 PW/ Irrigation Repair 27.77
YB-4626211 PW/ Irrigation Repair 9.84
YC-4626232 PW/ Irrigation Repair 8.51
YD-23251 PW/ Tree Stakes 183.38
YE-512587 STRTS/ Delineators at Valley Blvd (Gas Tax) 97.43 YF-512606 PW/ Shop Concrete 31.12
YF-512606-A WTR/ Shop Concrete 31.12
YF-512606-B SWR/ Shop Concrete 31.13
YG-520873 PW/ Tools 35.69
YH-610250 WTR/ Leak Repair 22.43
YI-610259 WTR/ Tools 72.50
YI-610259-A WTR/ Leak Supplies 3.16
YJ-9023288 PW/ Shop Concrete 75.78
YJ-9023288-A WTR/ Shop Concrete 75.78
YJ-9023288-B SWR/ Shop Concrete 75.77
YK-9023334 PW/ Tools 112.49
YL-9131772 PW/ Irrigation Repair 7.58
YM-9512668 PW/ Mouse Traps 14.54
YN-9512725 SWR/ Hose Reel 75.74
YO-9512731 SWR/ Tools 54.10
YP-9512742 PW/ Irrigation Repair 11.67
YQ-9610316 PW/ Lights at PD 64.93
YR-9626579 SWR/ WWTP Repairs 97.36
YS-8010302 PW/ Ladder 204.59
YT-8131785 PW/ Tree Stakes Valley Blvd 183.38
YU-8512823 PW/ Shop Concrete 5.87
YU-8512823-A WTR/ Shop Concrete 5.86
YU-8512823-B SWR/ Shop Concrete 5.87
YV-8905035 PW/ Shop Concrete 1,388.49
YV-8905035-A WTR/ Shop Concrete 1,388.49
YV-8905035-B SWR/ Shop Concrete 1,388.48
YW-7131826 LLD/ Irrigation Repair 18.92
YX-7131834 LLD/ Irrigation Repair 3.27
YY-7512892 PW/ Tools 14.04
YZ-7610481 PW/ Repairs 48.58
Z-7900023 STRTS/ Sidewalks 1,791.54
Z-7900023-A PW/ Shop Concrete 1,330.21
Z-7900023-B WTR/ Shop Concrete 1,330.21
Z-7900023-C SWR/ Shop Concrete 1,330.21
ZA-3132073 PW/ Tools 32.45
ZB-3513277 PW/ Handicap Ramp 308.42
ZC-3626964 PW/ PPE 86.54
ZD-3626967 PW/ Antelope Run 24.88
ZE-3626995 SWR/ WWTP Supplies 238.24
ZF-3627000 PW/ Handicap Ramp 67.58
ZG-2023700 PW/ Tree's 49.69
ZH-2513318 PW/ Key Holder 3.23
ZI-2513321 PW/ String Lights on "F" St 95.36
ZJ-2513339 PW/ String Lights on "F" St 140.28
ZK-2513354 WTR/ Tools 29.49
ZL-2513381 PW/ String Light on "F" St 33.86
ZM-2627025 LLD/ Soil 73.35
ZN-1120968 WTR/ Tools 20.87
ZO-1132194 AIR/ PVC Cap- Irrigation @ Airport Park 7.62 ZP-1513433 PW/ String Lights on "F" St 38.91
ZQ-1610922 PW/ Dogi Station Install 4.85
Total for this ACH Check for Vendor 2695: 12,312.46
Total for Vendor 2695 (Home Depot Credit Services): 12,312.46 ACH 2776 Consolidated Electrical Dist.
0351-1182948 AIR/ Billboard Maintenance 205.50
Total for this ACH Check for Vendor 2776: 205.50
Total for Vendor 2776 (Consolidated Electrical Dist.): 205.50 ACH 2827 Leatham Family, LLC
0557880 PD/ #1036 & #6046 Badges 385.07
Total for this ACH Check for Vendor 2827: 385.07
Total for Vendor 2827 (Leatham Family, LLC): 385.07
ACH 2874
023062
Department of Justice Accounting Office
GG/ Fingerprinting 32.00
Total for this ACH Check for Vendor 2874: 32.00
Total for Vendor 2874 (Department of Justice Accounting Office): 32.00 ACH 2914 CivicPlus LLC
363303 GG/ SSL Cert/ Quarterly Fee 3,703.54
Total for this ACH Check for Vendor 2914: 3,703.54
Total for Vendor 2914 (CivicPlus LLC): 3,703.54
ACH 2963 AT&T (Calnet)
24764580 PD/ Admin Phone Lines/ Acct 9391040069 (01/06-02/05/26) 462.98 24794552 PD/911 Alternate Answer Circuit/Acct 9391055853 (01/10-02/09/26) 89.93 Total for this ACH Check for Vendor 2963: 552.91
Total for Vendor 2963 (AT&T (Calnet)): 552.91
ACH 3011 Verizon Wireless
6134864259 PD/ Mobile Computers/ Acct#5501-00001 (01/02-02/01/26) 1,894.46 6134864260 PW/ Mobile Broadband/ Acct#5501-00002 (01/02-02/01/26) 178.06 6134864260-A SWR/ Mobile Broadband/ Acct#5501-00002 (01/02-02/01/26) 26.52 6134864260-B PD/ Mobile Broadband/ Acct#5501-00002 (01/02-02/01/26) 38.83 6134864260-C COM/ Mobile Broadband/ Acct#5501-00002 (01/02-02/01/26) 49.11 Total for this ACH Check for Vendor 3011: 2,186.98
Total for Vendor 3011 (Verizon Wireless): 2,186.98
ACH 3066 AECOM Technical Services Inc.
2001109285 2026/27 Measure S Paving (Jan 2026) 8,850.49 Total for this ACH Check for Vendor 3066: 8,850.49
Total for Vendor 3066 (AECOM Technical Services Inc.): 8,850.49 ACH 3104 Hilltop Publishers Home of the Loop
30024 COM/ Advertising in 2026 Map 1,100.00
30024-A COM/ Advertising- Blood Drive/ Concert in the Park 932.80 30024-B COM/ Advertising- Farmer's Market 466.40
30024-C COM/ Advertising- 4th of July 909.80
30025 COM/ Pre-Paid Expense/ Advertising- Misc Events 6,135.00 30026 COM/ Advertising D-A-R (2026/27) *PRE-PAID* 500.00 30027 COM/Loop Digital Netwk-TV's (07/26 - 06/27) *Pre-Paid Expense 4,068.00 Total for this ACH Check for Vendor 3104: 14,112.00
Total for Vendor 3104 (Hilltop Publishers Home of the Loop): 14,112.00 ACH 3173 Sergio G. Soto
4302 PW/ V-32 Tires 804.03
4347 PD/ TE-40 Tire Change 140.00
4348 PW/ E-223 Tires 801.46
4348-A WTR/ E-223 Tires 801.46
4348-B SWR/ E-223 Tires 801.46
Total for this ACH Check for Vendor 3173: 3,348.41
Total for Vendor 3173 (Sergio G. Soto): 3,348.41
ACH 3550 Granite Construction Company
3129117 STRTS/ Pothole Mix (Gas Tax) 1,410.00
Total for this ACH Check for Vendor 3550: 1,410.00
Total for Vendor 3550 (Granite Construction Company): 1,410.00 ACH 3564 Don's Pro Technology Auto Repair
113396 PW/ V-61 Emission Inspection 239.95
Total for this ACH Check for Vendor 3564: 239.95
Total for Vendor 3564 (Don's Pro Technology Auto Repair): 239.95 ACH 3645 Blueprint Service Co.
095758 DSD/ Map Room Tiff Conversion 664.82
095758-A GG/ Map Room Tiff Conversion 664.82
Total for this ACH Check for Vendor 3645: 1,329.64
Total for Vendor 3645 (Blueprint Service Co.): 1,329.64 ACH 3680 Vortex Industries LLC
46-2230115 AIR/ Hangar Door Repair 20-E & 19W 7,205.00
Total for this ACH Check for Vendor 3680: 7,205.00
Total for Vendor 3680 (Vortex Industries LLC): 7,205.00 ACH 3708 Customized Custodial Services
COT0326 VIS CTR/ Janitorial Services- Visitor Center (Mar 2026) 105.00 COT0326-A PW/ Janitorial Services- Public Works (Mar 2026) 262.00 COT0326-B WTR/ Janitorial Services- Water Dept (Mar 2026) 305.50 COT0326-C SWR/ Janitorial Services- Sewer Facility (Mar 2026) 305.50 COT0326-D SWR/ Janitorial Services- Sewer Bathroom (Mar 2026) 150.00 COT0326-E AIR/ Janitorial Services- Airport & Lounge (Mar 2026) 323.00 COT0326-F RR/ Janitorial Services- RR Depot (Mar 2026) 220.00 COT0326-G GG/ Janitorial Services- Senior Center (Mar 2026) 519.00 COT0326-H GG/ Janitorial Services- City Hall(Mar 2026) 1,026.00 COT0326-I DSD/ Janitorial Services- Annex (Mar 2026) 622.00 COT0326-J PD/ Janitorial Services- Police Dept (Mar 2026) 2,248.00 COT0326-K GG/ Janitorial Services- Bus Station (Mar 2026) 160.00 Total for this ACH Check for Vendor 3708: 6,246.00
Total for Vendor 3708 (Customized Custodial Services): 6,246.00 ACH 3848 O'Reilly Automotive Inc
4447-364222 PW/ V-56 Battery 239.06
4447-364351 PW/ Tools; Jump Starter 216.49
4447-364471 PW/ Cleaner for Vehicles 43.28
4447-365319 GG/ V-50 Filter/ Oil 74.39
4447-365437 PD/ TE-5 Battery 243.53
4447-365454 PW/ V-56 *RETURN* -239.06
4447-365540 PD/ TE-47 Filters 52.83
4447-365545 SWR/ E-202 Parts 27.76
4447-365555 PD/ TE-5 *CORE RETURN* -22.00
4447-365561 PW/ Tools 432.98
4447-365728 PD/ TE-42 Filters 70.02
4447-365730 PW/ V-47 Valve Assembly 66.76
4447-365951 PW/ Tools 49.78
4447-366546 PD/ TE-42 Battery 665.10
4447-366602 PW/ V-56 Filters 70.02
4447-366603 AIR/ V-17 Filter 12.12
4447-366815 AIR/ V-17 Filter 32.33
4447-366816 PW/ Shop Supplies 24.32
4447-366944 PD/ TE-44 Battery 426.04
4447-366964 PW/ Tools 15.14
4447-367118 PW/ V-56 Battery 239.06
4447-367122 PW/ V-45 Filter 55.69
4447-367268 PW/ Gloves 55.51
4447-368115 GG/ V-65 42.73
4447-368310 PW/ V-57 Filter 70.02
4447-368311 SWR/ E-202 Switch 9.15
4447-368312 PW/ V-57 Antifreeze 35.71
4447-368372 PW/ V-24 Battery 216.22
4447-368380 PW/ V-5 Starter/ Clock Spring 485.45
4447-368392 PW/ Tire Pressure Monitor System 463.66
4447-368421 PW/ V-5 Plug 80.06
4447-368439 PW/ V-5 Plug 20.02
4447-368440 SWR/ V-23 Pump 50.87
4447-368476 PW/ V-5 Tray 56.85
4447-368504 PW/ Tools 463.66
4447-368506 PW/ V-61 Filters 397.34
4447-368542 PW/ V-40 Clip 9.73
4447-368560 PW/ V-5 Plug 80.06
4447-368588 PW/ V-5 *RETURN* -10.83
4447-368610 PW/ V-32 Filters 58.49
4447-368639 PW/ V-32 Filtter 28.02
4447-368806 PW/ V-5 Clock Spring *RETURN* -265.78
4447-368806-A GG/ V-65 LP Shield *RETURN* -12.98
4447-368806-B PD/ TE-28 Air Filter *RETURN* -19.69
4447-369269 GG/ V-65 88.72
4447-369333 PW/ Tools 18.39
4447-369402 PD/ TE-38 Filter/ Oil 99.53
4447-369455 PD/ TE-42 *CORE RETURN* -22.00
4447-369455-A PW/ V-61 Oil Filter *RETURN* -17.45
4447-369463 PW/ E-217 Repair 22.16
4447-369531 PD/ TE-44 Filters 70.02
4447-369571 PW/ E-200 Battery 241.72
4447-369607 PD/ TE-38 *RETURN* -15.01
4447-369708 PW/ V-48 Filters; Oil 151.19
Total for this ACH Check for Vendor 3848: 5,747.18
Total for Vendor 3848 (O'Reilly Automotive Inc): 5,747.18 ACH 4011 Babcock Laboratories, Inc.

CB60687-8827 SWR/ WWTP Samples 1,960.68
Total for this ACH Check for Vendor 4011: 1,960.68
Total for Vendor 4011 (Babcock Laboratories, Inc.): 1,960.68 ACH 4036 Waxie Sanitary Supply
83776491 PD/ Janitorial Supplies 229.75
Total for this ACH Check for Vendor 4036: 229.75
Total for Vendor 4036 (Waxie Sanitary Supply): 229.75
ACH 4065 American Safety Services Inc
337887 S SWR/ Gas Monitor 372.88
Total for this ACH Check for Vendor 4065: 372.88
Total for Vendor 4065 (American Safety Services Inc): 372.88 ACH 4078 Alpha Technologies & Alarm Systems Inc
260175 PW/ Alarm Monitoring Service (03/01-05/31/26) 336.00 Total for this ACH Check for Vendor 4078: 336.00
Total for Vendor 4078 (Alpha Technologies & Alarm Systems Inc): 336.00 ACH 4138 Kern County Public Works
55409 PW/ Trash Disposal Fees (01/07-01/21/26) 241.43
55409-A STRTS/ Trash Disposal Fees (01/07-01/21/26) 265.02 55409-B AIR/ Trash Disposal Fees (01/07-01/21/26) 40.00 Total for this ACH Check for Vendor 4138: 546.45
Total for Vendor 4138 (Kern County Public Works): 546.45 ACH 4154 Net Transcripts
NT23542 PD/Transcription- Gomez I.A. 150.00
NT23633 PD/ Interview Transcripts- Gomez I.A. 2,519.37
Total for this ACH Check for Vendor 4154: 2,669.37
Total for Vendor 4154 (Net Transcripts): 2,669.37
ACH 4157 Core & Main LP
Y432162 WTR/ Water Leak Repair 92.01
Y458171 WTR/ Repair of Tools 243.56
Y463492 WTR/ Water Leak Supplies 866.88
Y499539 WTR/ Water Leak Repair Supplies 3,011.54
Total for this ACH Check for Vendor 4157: 4,213.99
Total for Vendor 4157 (Core & Main LP): 4,213.99
ACH 4230 WM
0017962-4808-4 PW/ #18-94373-03004/ 40 Yd Bin (01/01/26-01/31/26) 563.57 0017966-4808-5 PW/ #22-43626-03008/ Street Sweeper Bin (01/01/26-01/31/26) 4,639.33 0228237-4792-2 PW/ #19-17983-73000/ Shop Propane (12/01/26-11/30/27) 700.50 0228238-4792-0 WTR/ #19-17983-83008/ Water Shop Propane (06/01/26-05/31/27) 255.98 Total for this ACH Check for Vendor 4230: 6,159.38
Total for Vendor 4230 (WM): 6,159.38
ACH 4272 Amber Chemical Inc
0387588-IN WTR/ Hypochlorite Solutions- Curry Site 698.25 0387589-IN WTR/ Hypochlorite Solutions- Wahlstrom Well 265.50 0387590-IN WTR/ Hypochlorite Solutions- Dennison Well 345.15 0387591-IN WTR/ Hypochlorite Solutions- Mojave Well 212.40 0387592-IN WTR/ Hypochlorite Solutions- Minton Well 371.70 Total for this ACH Check for Vendor 4272: 1,893.00
Total for Vendor 4272 (Amber Chemical Inc): 1,893.00
ACH 4287
2123400 250.00
2304370 189.96
2319983 250.00
3530761
Red Wing Shoes
PW/ Safety Boots
WTR/ Safety Boots
PW/ Safety Boots
WTR/ Safety Boots 250.00
Total for this ACH Check for Vendor 4287: 939.96
Total for Vendor 4287 (Red Wing Shoes): 939.96
ACH 4294 American Assoc of Airport Executives
1181082 AIR/ AAAE Membership (May 2026- April 2027) 325.00 Total for this ACH Check for Vendor 4294: 325.00
Total for Vendor 4294 (American Assoc of Airport Executives): 325.00 ACH 4312 ACC Business
8238532118 GG/ Fiber for PD/ Acct# 8310015137014 (01/11-02/10/26) 711.78 Total for this ACH Check for Vendor 4312: 711.78
Total for Vendor 4312 (ACC Business): 711.78
ACH 4315 Wex Bank
110496005 PD/ Fuel Purchases 1,589.01
Total for this ACH Check for Vendor 4315: 1,589.01
Total for Vendor 4315 (Wex Bank): 1,589.01
ACH 4330 Jim Burke Ford
1645959 PW/ Motor Oil 1,598.08
1646335 PW/ V-45 Gasket 67.79
1646350 PW/ V-64 Mats 147.76
1646418 PW/ V-59 Mats 147.76
1646802 PD/ TE-35 Bumper 790.01
Total for this ACH Check for Vendor 4330: 2,751.40
Total for Vendor 4330 (Jim Burke Ford): 2,751.40
ACH 4353 Canon Financial Services Inc
42641920 GG/ Printer- ImageRunner Advance Monthly Contract (Feb 2026) 140.56 42641920-A DSD/ Printer- ImageRunner Advance Monthly Contract (Feb 2026) 140.56 42641920-B PW/ Printer- ImageRunner Advance Monthly Contract (Feb 2026) 140.56 42641920-C PD/ Printer- ImageRunner Advance Monthly Contract (Feb 2026) 140.56 42670565 PW/ Printer- ImageRunner Advance (Feb 2026) 92.76 Total for this ACH Check for Vendor 4353: 655.00
Total for Vendor 4353 (Canon Financial Services Inc): 655.00 ACH 4354 Mead & Hunt
402006 ALUCP Update (Prof Svcs Jan 2026) 4,471.50
Total for this ACH Check for Vendor 4354: 4,471.50
Total for Vendor 4354 (Mead & Hunt): 4,471.50
ACH 4384 Enterprise FM Trust
FBN5560958 WTR/ V-52; V-54 Trucks 1,757.04
FBN5560958-1 PW/ V-53; V-56; V-57 2,542.15
FBN5560958-2 DSD/ V-51 Truck 724.06
FBN5560958-3 PD/ TE-42 1,147.96
Total for this ACH Check for Vendor 4384: 6,171.21
Total for Vendor 4384 (Enterprise FM Trust): 6,171.21
ACH 4420 Quadient Finance USA Inc. (ACH)
2846422-2862255 GG/ Priority Mail Postage/ 7900044081040721 (1/22-02/18/26) 151.30 Total for this ACH Check for Vendor 4420: 151.30
Total for Vendor 4420 (Quadient Finance USA Inc. (ACH)): 151.30 ACH 4429 Quadient Leasing USA Inc.

Q2214601 GG/ Postage Meter Lease 496.86
Total for this ACH Check for Vendor 4429: 496.86
Total for Vendor 4429 (Quadient Leasing USA Inc.): 496.86 ACH 4504 Industrial Shoeworks
T400-0030034-RI PW/ Safety Boots 239.23
Total for this ACH Check for Vendor 4504: 239.23
Total for Vendor 4504 (Industrial Shoeworks): 239.23
ACH 4546 U.S. Fueling Solutions
26878 AIR/ Monitor Cartridge Fuel Pump 1,697.92
Total for this ACH Check for Vendor 4546: 1,697.92
Total for Vendor 4546 (U.S. Fueling Solutions): 1,697.92 ACH 4565 Byrne Software Technologies Inc.
0111976 DSD/ Accela (Prof Svcs Jan 2026) 2,400.00
Total for this ACH Check for Vendor 4565: 2,400.00
Total for Vendor 4565 (Byrne Software Technologies Inc.): 2,400.00 ACH 4580
238895
SWCA Inc.

Tucker/Highline Roundabout (Professional Services) or Jan 2026) 2,615.00 Total for this ACH Check for Vendor 4580: 2,615.00
Total for Vendor 4580 (SWCA Inc.): 2,615.00
ACH 4614 4Leaf Inc.

J0763-26A DSD/ Consulting- Plan Review (Prof Svcs Jan 2026) 2,278.60 Total for this ACH Check for Vendor 4614: 2,278.60
Total for Vendor 4614 (4Leaf Inc.): 2,278.60
ACH 4617 White Cap
50035351459 PW/ Tools 129.86
50035351459-A WTR/ Tools 129.85
50035351459-B SWR/ Tools 129.86
50035440277 PW/ Shop Concrete 315.73
50035440277-A WTR/ Shop Concrete 315.73
50035440277-B SWR/ Shop Concrete 315.73
50035452593 PW/ Tools 1,444.71
Total for this ACH Check for Vendor 4617: 2,781.47
Total for Vendor 4617 (White Cap): 2,781.47
ACH 4645 BrightView Landscape Services Inc.
9628008 GG/ Landscape Contract Service (Jan 2026) 755.00 9628008-A PW/ Landscape Contract Service (Jan 2026) 1,661.00 9628008-B PD/ Landscape Contract Service (Jan 2026) 191.00 9628008-C STRTS/ Landscape Contract Service (Jan 2026) 1,509.00 9628008-D ST&RDS/ Landscape Contract Service- Park N Ride (Jan 2026) 555.00 9628008-E RR/ Landscape Contract Service- RR Depot (Jan 2026) 215.00 9628008-F VIS CTR/ Landscape Contract Service- Freedom Plaza (Jan 2026) 152.00 9628008-G SWR/ Landscape Contract Service (Jan 2026) 660.00 9628008-H AIR/ Landscape Contract Service (Jan 2026) 599.00 9628008-I PW/ Landscape Contract Service- PW Addition (Jan 2026) 2,583.00 9628008-J PW/ Landscape Contract Service- Teh/Valley Blvd/Curry (Jan 2026) 1,164.00 9628008-K LLD/ Landscape Contract Service- Tract 6062 (Jan 2026) 1,237.00 9628008-L LLD/ Landscape Contract Service- Tract 6212 (Jan 2026) 689.00 9628008-M LLD/ Landscape Contract Service- Tract 5812 & 6215 (Jan 2026) 2,996.00 9628008-N LLD/ Landscape Contract Service- Tract 6216 (Jan 2026) 16,017.00 9628008-O LLD/ Landscape Contract Service- Tract 5812 (Jan 2026) 1,953.00 9628008-P LLD/ Landscape Contract Service- Tract 6360 (Jan 2026) 59.00 9628008-Q LLD/ Landscape Contract Service- PM 11353 (Jan 2026) 255.00 9628008-R LLD/ Landscape Contract Service- PM 12219 (Jan 2026) 201.00 9628008-S PW/ Landscape Contract Service- Valley Park (Jan 2026) 2,483.00 9628010 AIR/ Weed Abatement Contract Service- Airport (Jan 2026) 1,663.81 9628010-A PW/ Weed Abatement Contract Service- Public Works (Jan 2026) 1,109.20 9628010-B WTR/ Weed Abatement Contract Service- Water Dept (Jan 2026) 682.59 9628010-C SWR/ Weed Abatement Contract Service- Sewer Dept (Jan 2026) 639.93 9628010-D STRTS/ Weed Abatement Contract Service- Streets Dept (Jan 2026) 170.64 Total for this ACH Check for Vendor 4645: 40,200.17
Total for Vendor 4645 (BrightView Landscape Services Inc.): 40,200.17 ACH 4660 Karl's Hardware
5615/4 PW/ Concrete for Shop 10.00
5615/4-A WTR/ Concrete for Shop 9.99
5615/4-B SWR/ Concrete for Shop 10.00
5627/4 PW/ Concrete for Shop 5.04
5627/4-A WTR/ Concrete for Shop 5.04
5627/4-B SWR/ Concrete for Shop 5.03
5647/4 AIR/ Airport Park Irrigation Repair 138.71
5668/4 AIR/ Airport Park Irrigation Repair 56.23
5687/4 PW/ Chainsaw Sharpening 51.00
5703/4 AIR/ Landscaping Supplies 18.15
5729/4 PW/ Chainsaw Repair 221.36
Total for this ACH Check for Vendor 4660: 530.55
Total for Vendor 4660 (Karl's Hardware): 530.55
ACH 4835 Advanced Industrial Services
9910684 SWR/ Pump Vault at West Park 2,409.25
Total for this ACH Check for Vendor 4835: 2,409.25
Total for Vendor 4835 (Advanced Industrial Services): 2,409.25 ACH 4896 Duke Engineering & Associates
24170-10 Rock Pile Comm. Project 8,415.00
Total for this ACH Check for Vendor 4896: 8,415.00
Total for Vendor 4896 (Duke Engineering & Associates): 8,415.00 ACH 4923 Mesa Energy Systems Inc.
960029592-1 PW/ Museum Heater Repair (labor). /Partial invoice paid ck#63876 375.00 960031906 WTR/ Damper Repair HVAC- Shop 1,778.00
960032054 WTR/ Damper Repair HVAC- Shop 712.50
Total for this ACH Check for Vendor 4923: 2,865.50
Total for Vendor 4923 (Mesa Energy Systems Inc.): 2,865.50 ACH 4947 EquipmentShare.com Inc
LCS-6325509-000 PW/ Broom Sweeper Rental 1,582.10
Total for this ACH Check for Vendor 4947: 1,582.10
Total for Vendor 4947 (EquipmentShare.com Inc): 1,582.10 ACH 4952 Rocio Gonzalez
RG021226 GG/ Wellness Grant 2025-26/ Exercise Equipment 100.00 Total for this ACH Check for Vendor 4952: 100.00
Total for Vendor 4952 (Rocio Gonzalez): 100.00
ACH 4964 B & R Supply Inc
1901022344 PW/ V-64 Hitch; Plate 543.44
Total for this ACH Check for Vendor 4964: 543.44
Total for Vendor 4964 (B & R Supply Inc): 543.44
ACH 4966 Primo Brands
06B8710328112 PW/ Hot/Cold Water Dispenser Rental and Bottled Water 66.02 06B8710328112-A WTR/ Hot/Cold Water Dispenser Rental and Bottled Water 66.02 06B8710328112-B SWR/ Hot/Cold Water Dispenser Rental and Bottled Water 66.01 Total for this ACH Check for Vendor 4966: 198.05
Total for Vendor 4966 (Primo Brands): 198.05
ACH 4975 Navillus Enterprises LLC
0000112 PW/ Unleaded Gasoline 894.31
0421507 PW/ Unleaded Gasoline/ Diesel Fuel 3,962.06
0421625 PW/ Unleaded Gasoline 3,800.84
Total for this ACH Check for Vendor 4975: 8,657.21
Total for Vendor 4975 (Navillus Enterprises LLC): 8,657.21 ACH 4990 M&M Sports Uniform and Embroidery
1150 Bench Plaque 484.18
1151 Bench Plaque 486.83
Total for this ACH Check for Vendor 4990: 971.01
Total for Vendor 4990 (M&M Sports Uniform and Embroidery): 971.01 ACH 4995 Quad Knopf, Inc
130965 DSD/ East Teh Lift Station/ (Prof Svcs Jan, 2026) 1,029.50 Total for this ACH Check for Vendor 4995: 1,029.50
Total for Vendor 4995 (Quad Knopf, Inc): 1,029.50
ACH 4998 Gold Star Collision Center, Inc
1001 PD/ TE-34 Repair Damage 2,143.40
1002 PD/ TE-34 Remove Decal 400.00
1003 PD/ TE-34 Repair Damage 1,367.12
1004 PW/ V-5 Repair Damage 1,620.67
Total for this ACH Check for Vendor 4998: 5,531.19
Total for Vendor 4998 (Gold Star Collision Center, Inc): 5,531.19 ACH 5000 King Door Co Inc
58990056 PW/ Shop Roll-Up Door Replacement 8,527.61
Total for this ACH Check for Vendor 5000: 8,527.61
Total for Vendor 5000 (King Door Co Inc): 8,527.61
ACH 5001 Nick Tanaka
NT031126 COM/ CAPIO Training, Fresno/ Meals & IE (3/11/26) 58.00 Total for this ACH Check for Vendor 5001: 58.00
Total for Vendor 5001 (Nick Tanaka): 58.00
ACH 5002 Bailey Damian
BD031126 COM/ CAPIO Training, Fresno/ Meals & IE (03/11/26) 58.00 Total for this ACH Check for Vendor 5002: 58.00
Total for Vendor 5002 (Bailey Damian): 58.00
ACH 5003 Ryan Hulse
RH030126 PD/ POST Sup School, Huntington Beach/ Meals & IE (3/1-3/13/26) 712.00 Total for this ACH Check for Vendor 5003: 712.00
Total for Vendor 5003 (Ryan Hulse): 712.00
ACH 5004 Claire Shadduck
CS030226 PD/ POST Dispatcher Training, Bakersfield/ Meals (3/2-3/27/26) 400.00 Total for this ACH Check for Vendor 5004: 400.00
Total for Vendor 5004 (Claire Shadduck): 400.00
ACH 5005 Billie Crane
BC030226 PD/ POST Dispatcher Training, Bakersfield/ Meals (3/2-3/27/26) 400.00 Total for this ACH Check for Vendor 5005: 400.00
Total for Vendor 5005 (Billie Crane): 400.00
ACH 5006 Golden West College
C03221375 PD/Post Supervisory Course/Huntington Beach (3/2-3/13/26)- Hulse 186.00 Total for this ACH Check for Vendor 5006: 186.00
Total for Vendor 5006 (Golden West College): 186.00
ACH 1382 Bank of the Sierra-Branch
BOS021026 GG/ Stop Payment Fee/ Granite Construct. Co (Ck#64112) 15.00 Total for this ACH Check for Vendor 1382: 15.00
Total for Vendor 1382 (Bank of the Sierra-Branch): 15.00 ACH 3675 Bluefin Payment Systems
BF020926 GG/ Card Processing/ Merchant # 5101593400520000 (Jan 2026) 2,015.59 BF020926-A GG/ Card Processing/ Merchant # 5101593401678570 (Jan 2026) 574.25 Total for this ACH Check for Vendor 3675: 2,589.84
Total for Vendor 3675 (Bluefin Payment Systems): 2,589.84 ACH 3955 Health Equity Inc
fzhdn8q GG/ HSA Admin Fees (Feb 2026) 153.40
Total for this ACH Check for Vendor 3955: 153.40
Total for Vendor 3955 (Health Equity Inc): 153.40
ACH 4185 Harland Clarke
HC021226 WTR/ Banking Deposit Slips- Water Billing 139.71 Total for this ACH Check for Vendor 4185: 139.71
Total for Vendor 4185 (Harland Clarke): 139.71
ACH 4217 CA Dept of Tax & Fee Administration
0-055-185-478 AIR/ Jet-A Fuel Dealer Tax (Jan 2026) 79.00 Total for this ACH Check for Vendor 4217: 79.00
Total for Vendor 4217 (CA Dept of Tax & Fee Administration): 79.00 ACH 4367 Springbrook (ACH)
260221895 GG/ Merchant Transaction Fees (Jan 2026) 157.70 Total for this ACH Check for Vendor 4367: 157.70
Total for Vendor 4367 (Springbrook (ACH)): 157.70
ACH 4732 Iron Mountain
KZHW291 GG/ Monthly Shredding (12/20/25 - 01/27/26) 112.00 KZHW291-A DSD/ Monthly Shredding (12/20/25 - 01/27/26) 51.50 KZHW291-B PD/ Monthly Shredding (12/20/25 - 01/27/26) 51.50 Total for this ACH Check for Vendor 4732: 215.00
Total for Vendor 4732 (Iron Mountain): 215.00
64382 4191 Andrew Norton 02/19/2026
AN021826 DSD/ League of Cal Cities-PW/Monterey/ Meals & IE (2/24-2/27/26) 204.00 AN021826-A DSD/ League of Cal Cities-PW/Monterey/ Mileage (2/24-2/27/26) 268.25 Total for Check Number 64382: 472.25
Total for Vendor 4191 (Andrew Norton): 472.25
64381 4266 Don Marsh 02/19/2026
DM021826 DSD/League of CA Cities- PW/Monterey/Meals & IE (2/24-2/27/26) 204.00 DM021826-A DSD/League of CA Cities- PW/Monterey/Mileage (2/24-2/27/26) 377.00 Total for Check Number 64381: 581.00
Total for Vendor 4266 (Don Marsh): 581.00
KTr021826 Water Rights Lease 38,125.00
PD/ CALNENA Event, LA/ Edit-Addt'l Meal (3/2/26)
64383 4503 Kubicek Trust, Carol Swets, Trustee 02/19/2026

36.00 Total for Check Number 64385: 36.00
Total for Vendor 4167 (Robin Mathiasen): 36.00
64385 4167 Robin Mathiasen 02/23/2026
RM022826-addtl
AP Checks by Date - Detail by Vendor Number (2/25/2026 1:46 PM) Page 18 Report Total: 363,479.02
38,125.00
Total for Vendor 4503 (Kubicek Trust, Carol Swets, Trustee): 38,125.00 64384 4506 Lester A Safier Trust, Julian Stahl, Trustee 02/19/2026 LASTr021826 1 Year Lease/ 427 AF Tehachapi Basin Water Rights Total for Check Number 64383:
56,044.00
Total for Check Number 64384: 56,044.00
Total for Vendor 4506 (Lester A Safier Trust, Julian Stahl, Trustee): 56,044.00 TO:

APPROVED

COUNCIL REPORTS
MEETING DATE: MARCH 2, 2026 AGENDA SECTION: FINANCE DIRECTOR

HONORABLE MAYOR POGON-CORD AND COUNCIL MEMBERS
FROM: HAMED JONES, FINANCE DIRECTOR
DATE: FEBRUARY 23, 2026
SUBJECT: FISCAL YEAR END 2025 FINANCIAL REPORTS

BACKGROUND
The City's financial transactions for fiscal year 2024-25 are now audited and the financial reports are completed.

The reports included in this agenda are: Annual Comprehensive Financial Report (ACFR), Independent Auditor's Report on Internal Control and Compliance, Report on the City's Appropriations Limit, and Statements of Audit Standards 114 Communication Letter.

Comprehensive Annual Financial Report
The City's Annual Comprehensive Financial Report is comprised of:

1. Introductory Section
a. Letter of Transmittal
b. Directory of Officials
c. Organizational Chart
d. Certificate of Achievement for Excellence in Financial Reporting

2. Financial Section
a. Independent Auditor's Report
b. Management Discussion & Analysis
c. Basic Financial Statements
d. Required Supplementary Information
e. Supplementary Information

3. Statistical Section
Continued from the last several years, the City submitted its 2024-25 ACFR to the Government Finance Officers Association for the Excellence in Financial Reporting Award ("Award"). The City has received the Award every year since FY 2017-18.

Independent Auditors Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements • Internal Control over Financial Reporting: The auditor stated, "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."
• Compliance and Other Matters: The auditor stated, "The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Governmental Auditing Standards."
Independent Accountan�s Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets
The Appropriations Limitation imposed by Propositions 4 and 111 creates a restriction on the amount of revenue which can be appropriated in any fiscal year. The auditor performed agreed-upon procedures based on standards established by the American Institute of Certified Public Accountants and reported the findings. Staff calculates the annual appropriations limit as a part of the budget process. The appropriations limit for fiscal year 2024-25 was $17,811,394 which was $753,613 more than 2023-24 appropriations limit.

The auditor agrees with our appropriation calculation for the audit year as well as the prior year.

Statements of Audit Standards (SAS) 114 Communication Letter • This is the Auditor's communication with the governing board for the financial reporting process.
• No significant findings are reported.

RECOMMENDATION

INFORMATION ONLY

Page 2 ends

Van Lant &
Fankhanel, LLP
----t Cf1rt1f1cd Pubhc Accountants I--
December 23, 2025
City Council
City of Tehachapi
Tehachapi, CA
We have audited the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Tehachapi for the year ended June 30, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated June 20, 2025. Professional standards also require that we communicate to you the following information related to our audit.

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

No new and significant accounting policies were adopted and the application of existing policies was not changed during the fiscal year ended June 30, 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.

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 financial statements were:

Management's estimate of the fair value of investments is based on information provided by financial institutions. We evaluated the key factors and assumptions used to develop the fair value of investments in determining that it is reasonable in relation to the financial statements as a whole.

Van Lant & Fankhanel, LLP
29970 Technology Dnve Surte 105 A
Murrieta CA 92563
909 856 6879
Management's estimate of capital assets depreciation is based on historical estimates of each capitalized item's useful life. We evaluated key factors and assumptions used to develop the estimated useful lives in determining that they are reasonable in relation to the financial statements as a whole.

Management's estimate of the net pension liability is based on actuarial information provided by the California Public Employee Retirement System's (CalPERS) actuarial office. We evaluated the key factors and assumptions to develop the net pension liability in determining that it is reasonable in relation to the financial statements as a whole.

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were:

The disclosure of the fair value of investments in Note 2 A to the financial statements represents amounts susceptible to market fluctuation.

The disclosure of accumulated depreciation in Note 2 C to the financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item.

The disclosure of the net pension liability in Note 3 B to the financial statements is based on the City's proportionate share of the total pension liability of the pool and includes assumptions for discount rates, which could differ from actual discount rates. Note 3 B discloses the differences in the net pension liability assuming different discount rates.

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 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.
2 Management Representations
We have requested certain representations from management that are included in the management representation letter dated December 23, 2025.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City'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.

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 the City'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 management's discussion and analysis and the schedules listed as required supplementary information in the table of contents, 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 the 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.

We were not engaged to report on the introductory and statistical section, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
3 Restriction on Use
This information is intended solely for the use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
4 Van Lant &
Fankhanel, LLP
--; Ccrl1l1od Public Accounlc.lnh t---
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 City Council
City of Tehachapi
Tehachapi, 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, business-type activities, each major fund and the aggregate remaining fund information of the City of Tehachapi (City), 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, and have issued our report thereon dated December 23, 2025.

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 opinion 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.

Van Lant & Fankhanel, LLP
29970 Technology Dnve Suite 105 A
Murneta CA 92563
909 856 6879
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 determination of financial statement amounts. 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 Govemment 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 City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Govemment Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

December 23, 2025
Van Lant &
Fankhanel, LLP
,--t Certified Public Accountants t,-.

INDEPENDENT ACCOUNT ANT'S REPORT ON AGREED-UPON PROCEDURES

APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS
City Council
City of Tehachapi
Tehachapi, California
We have performed procedures enumerated below to be the accompanying Appropriations Limit worksheet of the City of West Covina, for the year ended June 30, 2025. These procedures, which were agreed to by the City of Tehachapi and the League of California Cities (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIIIB of the Cali
fornia Constitution), were performed solely to assist the City in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. The City's management is responsible for the Appropriations Limit worksheet. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

The procedures performed and our findings were as follows:

1. We obtained the completed worksheets and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned documents to those that were selected by a recorded vote of the City Council.

Finding: No exceptions were noted as a result of our procedures.

2. For the accompanying Appropriations Limit worksheet, we added last year's limit to total adjustments and agreed the resulting amount to this year's limit.

Finding: No exceptions were noted as a result of our procedures.

3. We agreed the current year information presented in the accompanying Appropriations Limit worksheet to the other documents referenced in #1 above.

Finding: No exceptions were noted as a result of our procedures.

4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit worksheet to the prior year appropriations limit adopted by the City Council during the prior year.

Finding: No exceptions were noted as a result of our procedures.

Van Lant & Fankhanel, LLP
29970 Technology Dnve Suite 105 A
Murneta CA 92563
909 856 6879
We were not engaged to, and did not, perform an examination, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit worksheet. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by the League publication entitled Article X/118 of the California Constitution.

This report is intended solely for the use of the City Council and management of the City of Tehachapi and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.

December 23, 2025
2 CITY OF TEHACHAPI

APPROPRIATIONS LIMIT COMPUTATION
2024 -2025
2024 -2025
Change in Per Capita Personal lrrcome
Population Change
County Population Growth
A. Change in Per Capita Personal lncome Converted to a Ratio B. Population Growth Converted to a Ratio
Calculation of GroMh Factor (A x B)
2023 -2024 Appropriations Limit
2024 -2025 Appropriations Limit
($17,057,781 x104418)
3 62Yo
o 770/o
10362

1.0077

1.04418
$ 17,057,781
$ 1 7,81 '1 ,394
3 CIryOFTEHACHAPI, CA

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
?
POL
{f-r^o
t
)
,t
I

FISCAL YEAR ENDED
JUNE 30,2025
,
-t't
I
I I
I
6 'al
I
'! 6*
\
-a
t
\
hr a
r I
t, ti 1
) I
--F.
,
i=Iil,
I
/
/4,
,
,-/
I
I
-.\_]-
-\
E r\

CITY OF TEHACHAPI, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Foi the Fiscal Year Ended June 30, 2025
Prepared by:

Finance Department
City of Tehachapi
Annual Comprehensive Financial Report
Year Ended June 30, 2025

TABLE OF CONTENTS
I. INTRODUCTORY SECTION
Letter of Transmittal
Direclory of Ofiicials
Organizational Chart
Certificate ofAchievement for Excellence in Financial Reporting II. FINANCIAL SECTION
lndependent Audito/s Report
Management's Oiscussion & Analysis
Govemmenl-wide Financial Statements:

Statement of Net Position
Statement of Activities
Fund Financial Statements:

Balance Sheet - Governmental Funds
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Reconciliation of the statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Statement of Net Position - Proprietary Funds
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds Statement of Cash Flows - Proprietary Funds
Statement of Net Position - Fiduciary Funds
Statement of Changes in Net Position - Fiduciary Funds
Notes to Financial Statements
Required Supplementary lnformation:

Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Aclual General Fund
Facility lmpact Fee Special Revenue Fund
Traffic Mitigation Special Revenue Fund
Schedule of the City's Proportionate Share of the Net Pension Liabiltty Schedule of Plan Contributions
Notes to Required Supplementary lnformation
Su pplementary lnformation :

Schedule of Revenues, Expenditures and changes in Fund Balance - Budget and Actual Pedestrian Safety Capital Projects Fund
Street Projects Capital Projects Fund
Non-Major Govemmental Funds:

Combining Balance Sheet
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Special Revenue Funds:

Combining Balance Sheet
Combining Statement of Revenues, Expenditures and Changes in Fund Balances PAGE
1-5
6 7
I
9-'ll
12-23
24 25-26
27 -28
,o
30-31
32 33-34
35-36
37-38
39 40
41 -64
Basic Financial Statements:
65 66
67 b6
69 70
71 72
74 75
76 Gity of Tehachapi
Annual Comprehensive Financial Report
Year Ended June 30, 2025
Supplementary lnformation - Continued:

Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual TDA 3 Bike Safety Special Revenue Fund
Beverage Container Recycling Special Revenue Fund
Lighting District Special Revenue Fund
Streets and Roads Special Revenue Fund
Gas Tax Special Revenue Fund
Non-Major Capital Pro.lect Funds:

Combining Balance Sheet
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Aclual Building and Planning Capital Projects Fund
Parks and Recreation Capital Projects Fund
Other Capital Projecls Capital Projects Fund
custodial Funds:

Combining Statement of Fiduciary Net Position
Combining Statement of Changes in Fiduciary Net Position III. STATISTICAL SECTION
Table of Contents
Net Position by Component
Changes in Net Position
Fund Balances of Govemmental Funds
Changes in Fund Balances of Govemmental Funds
Assessed Value of Taxable Property
Direct and Overlapping Property Tax Rates
Principal Property Tax Payers
Property Tax Levies and Collections
Ratios of Outstanding Debt by TYPe
Ratios of General Bonded Oebt Outstanding
Direct and Overlapping Governmental Activities Debt
Legal Debt Margin lnformation
Pledged Revenue Coverage
Demographic and Economic Statistics
Principal Employers
Full-time and Part{ime City Employees
Operating lndicators
Capilal Asset Statistics
PAGE
T7
78 79
80 81
82 83
u
85 86
87 88
89 90-91
92-95
96-97
98-99
100 - 101
102 - 103
104
105
106 - '107
108
109
110-111
112
113 - 114
'l 15
116
117 - 118
119
TABLE OF CONTENTS - Continued

INTRODUCTORY SECTION

CITY OF

TEHACHAPI

CALIFORNIA
I I 5 South Robioson Street I TehoctEpi, Colito.nio 9356 I - I 722 (6t) 822-22N I Fox: (661)822.8559 | il*u,.r€hochopkitlholl.com Letter of Transmittal
December 23, 2025
To the Honorable Mayor, Members of the City Council, and Citizens of the City of Tehachapi:

We are pleased to submit the June 30, 2025 Annual Comprehensive Financial Report (ACFR) for the City of Tehachapi. At the close of each year, the City of Tehachapi is required by state law to issue a financial statement in conformity with generally accepted accounting principles (GAAP) that complies with the flnancial reporting requirements issued by the Governmental Accounting Standards Board (GASB). This financial report is audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants.

This report consists of management's representations concerning the finances of the City of Tehachapi. Management is fully responsible for the financial operations of the City as well as the preparation and fair representation of the financial statements. Because the cost of internal control should not outweigh the anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.

To provide a reasonable basis for making representations and assurance that the financial statements will be free from material misstatement, the City management has established a comprehensive internal control framework designed both to protect its assets and to compile sufficient reliable informatton to prepare the City's financial statement.

The City of Tehachapi's financial statements have been audited by Van Lant and Fankhanel, LLP, an independent auditing firm licensed as certified public accountants. The goal of the audit was to provide reasonable assurance that the financial statements of the City of Tehachapi for the fiscal year ended June 30, 2025 are free of material misstatement. The independent audit involved examining on a test basis, evidence supporting the amounts and disclosures in the financial statements and assessing the accounting principles used and signi{icant estimates made by management. van Lant and Fankhanel has issued an unmodified opinion on the city of Tehachapi's financial statements. The independent auditor's report is located at the front ofthe financial section of this report.

GASB Statement 34 (GASB 34) requires that management provide a narrative introduction, overview, and analysis to accompany the basic financtal statements in the form of a Management Discussion and Analysis (MD&A). This letter of transmittal serves to complement the MD&A and should be read in conjunction with it. The city's MD&A can be found immediately following the report of the independent auditor.
1 Profile of the Citv
Tehachapi has long bridged both east and west - tradition and innovation. The City is located in a mountain valley at the southernmost tip of the Sierra Nevada Mountains. Situated above the Mojave Desert on the east and the San Joaquin Valley on the west, the pass through the Tehachapi Valley provides the only direct route over the Sierra range south of Tahoe. Due to its 4,000-foot elevation, Tehachapi has four distinct seasons unlike other neighboring regions. ln '1876, the Southern Pacific Railroad completed the Tehachapi Loop, a long continuous curve which allowed trains to climb the steep grade by bringing the track back over itself. lt was the engineering feat of its day and is still in use. After the trains finished their 3,600-foot climb, the railroad needed a place lo service them before heading on to Los Angeles and beyond. Thus, the town of Tehachapi was born and in August 1909, the emerging City of Tehachapi was incorporated.

Tehachapi is a general law city and employs the Council/Manager form of government. The City Council acts as the legislative and policy making body for the City and consists of five members.

The City Council selects the Mayor and Mayor Pro Tem from among its members after each Council election, every even numbered year. The Council also appoints the City Manager, City Attorney, all five members of Planning Commission, and two members of the Tehachapi Valley Recreation and Park District Board of Directors.

Services Provided
The City provides a full range of services comprised of police; construction and maintenance of streets and infrastructure; community development including planning, building, and engineering; water and sewer; and a municipal airport as well as general administrative services. The City contracts with the County of Kern for fire protection and transit services.

The City's annually produced five-year budget serves as the foundation for financial planning and control. Budgetary control is maintained to ensure compliance with legal provisions of the annual appropriated budget as approved and modified by the City Council. The budget process begins rn January and Council is required to adopt the budget no later than June 30 preceding the beginning of the fiscal year on July 1 . Mid-year budget adjustments and the new five-year budget process occur concurrently.

The budget is prepared at fund level. The City Manager has the authority to transfer resources within a fund without limit; however, he may appropriate up to $50,000 per fund above the budget if there is a sufiicient fund balance to cover the erlra appropriation. Capital projects are not bound by the annual budget due to characteristics in timing. The annual capital projects budget is a general guideline of spending for the budget year as capital projects are monitored by the construction period rather than on an annual basis.

Economic Condition
As of September 2025, the unemployment rate in the City of Tehachapi was 8.6% which was 3.0% higher than the State of California unemployment rate, 5.6yo(1). The 2025 median homesale price in Tehachapi through June 30, 2025 was $361,500('?) whereas the median home sale price in the U.S. was $410,800(3). ln 2024, the 12-month median household income in the City was approximately $79,557 which was roughly 5% less than the national median household income of $83,730(a).
2 After feeling the effects of the COVID-19 outbreak, the local economy has bounced back with most key revenue sources reaching or exceeding pre-pandemic levels. The City's General Fund revenues such as sales tax, transient occupancy tax, and passport processing have shown significant recovery from COVID-19 related decline as consumer spending and travel have increased. The total General Fund revenue in FY 2024125 was $18,162,744, which was 2.4% lower than the prior year's revenue ($18,603,154). Revenue was lower primarily due to a County pool sales tax correction as well as deferred property tax revenues from delayed Kern County remittances. The readers may find a detailed revenue analysis in the Management Discussion and Analysis report in the Annual Comprehensive Financial Report. ln fiscal year 2024-25, the City issued 28 new building permits (23 for new single-family homes, 1 multi-family with nineteen units, 3 Accessory Dwelling Units and 1 for commercial/industrial construction). The City's new homes built during the last fifteen years are in lracts which were entitled during the last housing boom over 10 years ago.

Currently, there are several development projects under construction that will positively impact the City's economy. Those projects are:

1. Construction continues on the Capital Hills Gas and Retail Center, a 3,110 square foot convenience store, 2,000 square foot drive-through Quick Serve Restaurant (QSR) and 10-pump gasoline station.

2. A new RV Resort and Mini-Storage facility will be built on a 3o-acre property located south of East Tehachapi Boulevard and west of Bailey Avenue consisting of 91 RV spaces, restrooms, club house, laundry room, barbeque area, and other recreational facilities.

Construction has begun for Phase 1 of the project that includes 65,000 square feet of ministorage.

3. Tract 6248 located south of c street, north of Valley Boulevard and west of Park street has almost completed off-site improvements and will consist of 30 available lots for residential develoPment.

4. pinon South Condominiums is under construction for the development of 19 condominium units on 1.6 acres at the southwest corner of Curry Street and Pinon Street. lncluded in the design is open community space for a child play area, picnic area with grilling stations, community garden, dog walking path, and bocce court.

5. Permits are close to issuance on the development of a 16,886 square foot Truck service and wash located on a 3.28-acre parcel south of East Tehachapi Boulevard and east of Monolith Street. This facility will include two maintenance/service stalls and two wash stalls.

6. A new multi-tenant commercial center on a 0.73-acre parcel southwest of the intersection of valley Boulevard and Aspen Drive received their permits. rhe 7 ,246 square foot retail center is designed to contain tive tenant spaces, each measuring 1,375 square feet' Lonq-term Financial Planninq
Continued financial security through long-term financial planning has been of the utmost importance to city leaders for years. As a result, the city has been producing a five-year budget annually since fiscal year 2OOO/01. This extended budget provides a roadmap for educated financial planning for the City Council and management. One of the most valuable pieces of 3 4
information from this document is the projection of available cash balances for each fund. This feature presents the foundation for City management to examine different scenarios for future operations.

One of the goals that the City would like to accomplish within the next ten years is to gradually pay off the employees' pension unfunded accrued liability (UAL). The current UAL is approximately $6.0 million based on the current discount rate of 6.90%, which was a decrease of $499,832 or 7.8% mainly due to CaIPERS investment gains inFY 2023-24.

As development in town directly relates to the City's future finances, the listed prospective projects will affect the City's long{erm financial planning.

Planning/Entitlement Projects:

1. A new 1,547 square foot retail and restaurant building and a rowhouse with eight (8) multifamily residential units totaling 1 1,527 square feet on two (2) parcels totaling 0.50 acres located at the southeast corner of East Tehachapi Boulevard and Hayes Street.

2. A new multi-tenant commercial center on a 0.73-acre parcel southwest of the intersection of Valley Boulevard and Aspen Drive consisting ol a 7,246 square foot retail center designed to contain five tenant spaces, each measuring 1,375 square feet.

Cash Manaoement Policies and Practices
After annual review, the City updates its lnvestment Policy and submits it to the City Council for approval. In addition, an lnvestment Report which includes all bank balances and investment portfolio information is generated monthly and submitted to Council.

To maximize interest income and marntain liquidity, the City pools operating cash for its various funds and invests the monies. City and agency funds are invested pursuant to the City's lnvestment Policy in compliance with Section 53601 of the California Government Code The authorized investment types include the investment pools such as the California Asset Management Program (CAMP), Local Agency lnvestment Fund (State of California pool) and Central San Joaquin Valley Rick Management Authority investment pool through Chandler Asset Management, U.S. Treasury Obligations, U.S. Government Agency lssues, and Certificates of Deposit as well as mutual funds and money market funds. The investments are made based on the priorities of safety, liquidity, and yield.
lnvestment of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code in the City's lnvestment Policy.

Awards and Acknowledoements
Distinguished Budget Presentation Award (Budget AwaA frcm Govemment Finance otricefs Association (GFOA): Continuing from the last five prior years, the city has received the Budget Award forthe budget period of July 1,2025 through June 30,2026. GFOA established the Distinguished Budget Presentation Awards Program in 1984 to encourage and assist state and local governments to prepare budget documents ofthe very highest quality that reflect both the guidelines established by the National Advisory council on state and Local Budgeting and GFOA's best practices on budgeting.

The Certiftcate of Achievement lor Excellence in Financial Reporting awarded by Govemment Finance Officerc Assocration (ACFR AwarQ: Continuing from the last six prior years, the City again received the Excellence in Financial Reporting Program award forthe fiscal year ending 2023124. GFOA established the Certificate of Achievement for Excellence in Financial Reporting Program in 1945 to encourage and assist state and local govemments to go beyond the minimum requirements of generally accepted accounting principles to prepare annual comprehensive financial reports (ACFR) that evidence the spirit of transparency and full disclosure. The ACFR Program recognizes individual governments that succeed in achieving that objective. The goal of lhe program is not to assess the financial health of participating governments, but rather lo ensure that users of their financial statements have the information they need to do so themselves.

This report would not be possible without the dedicated efforts of the entire Finance Department staff and special help from our auditor, Van Lant and Fankhanel, LLP. Additionally, the various information provided by all other city departments has been greatly appreciated. Last but not least, we would like to thank the city Manager, city council, city Treasurer and city clerk for thear vision, interest and invaluable support in planning and conducting the financial operations of the City.

Respectfully Submitted,
reg Garretl, ity Manager Hamed Jones, Finance Director
Sources: (1)Califomia Employment Oevelopment Department (2) Hdl, Coren & Cone
(3) Federal Reserve Bank of St. Louis
(1) AV Edge and US Census Bureau
5 o "t fu,*
Mayor
Mayor Pro Tem
Council Member
Council Member
Council Member
City Clerk
City Treasurer
City of Tehachapi
Directory of Officials
Elected Officials
Administration
Joan Pogon-Cord
Jeanette Pauer
Phil Smith
Hannah Chung
Michael Davies
Tori Marsh
Marianna Gutierrez
Greg Ganett
Corey Costelloe
Richard Standridge
Key Budge
Hamed Jones
Ashley Vvlitmore
Don Marsh
Thomas Schroeter
City Manager
Assistant City Manager
Chief of Police
Community Engagement Director
Finance Director
General Services Director
Public Works Director
City Attorney
6 Crty of Tehachapr
Organi2atronalChart
I
7 I )
D
O
Ciy Cle
(
Govemment Finance Officers Association
Presented to
City of Tehachapi
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30,2024
Al",.bll- P Vle&;4
Executive Director/CEO
8 Certificate of
Achievement
for Excellence
in Financial
Reporting

FINANCIAL SECTION
Von Lonla
Fonkhonel, [P
lndependent Audito/s Report
The Honorable City Council
city of Tehachapi, Califomia
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements ofthe governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Tehachapi (City), as of and for the year ended June 30, 2025, and the related notes to the frnancial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.
ln our opinion, the financial statements refened to above present fairly, in all material respects, the financial position of the governmental activities, business-type activities each major fund, and the aggregate remaining fund information of the City of Tehachapi, as of June 30, 2025, and the respective changes in financial position, and, wtlere applicable, cashllows 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 lo financial audits contained in Govemment 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 requiremenls relating to our audit. We believe that the audit evidence we have obtained is sufllcient and appropriate to provrde a basis for our audit opinions.

RespoasrDrTities ol Management for the Financial Statements Management is responsible for the preparation and fair presenlation of these flnancial 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 lhe preparation and fair presentation of financial siatements that are hee from material misstalement, whether due to error or fraud. ln preparing the fnancial statements, management is required to evaluate whether there are conditions or evenls, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concem for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Audrfor's Respons ibilities for the Audit of the Financia, Statements Our objectives are to obtain reasonable assurance about vyhether the financial statements as a whole are free from material misstatement, whether due to fraud or enor, 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 Van Lar* & Fenlfiancl, LIP
29970 Technology Dnve Su e 105 A
Murneta cA 92563
99 856 6879 9
------r corlrtiod Publtc accounrants t-
Slandards 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 enor, 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.
ln performing an audil in accordance with generally accepted auditing standardsand Govemment Auditing Standads, we:
. Exercise professional judgment and maintain professional skepticism throughout the audit. . ldentify and assess the risks of material misstatement of the llnancial statements, whether due to fraud or enor, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounls 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 signitlcant accounting estimates made by management, as well as evaluate the overall presentation ofthe fnancial 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.

Requi rcd S uppl ementa ry I nfomation
Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and other required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Govemmental Accounting Standards Board who considers it to be an essential part of linancial reporting for placing the basic flnancial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic llnancial statements, and other knovrrledge we obtained during our audit ofthe basic llnancial 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.

S upplem enta ry lnfo rmalio n
Our audit was conducted for the purpose of forming opinions on the flnancial statements that collectively comprise the City's basic financial statements. The accompanying combining statements and budget schedules, as listed in the table of contents, 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 inlormation directty 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. ln our opinion, the combining statements, as listed in the table of contents, are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
10 Other lnfomation
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
ln connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. lf, based on the work performed, we conclude that an uncorrected material misstatement ofthe other information exists, we are required to describe it in our report.

Other Reporting Required by Govemment Auditing Standards ln accordance with Govemment Auditing Standa/ds, we have also issued a report dated December 23, 2025, on our consideration of the City's internal mntrol over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testjng of intemal control over rlnancial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Govemment Auditing Standads in considering the City's intemal control over Ilnancial reporting and compliance. /*/*t + Y*lJ**/,//f
December 23, 2025
11 MANAGEMENT'S DISCUSSION AND ANALYSIS
The management of the City of Tehachapi has provided this nanative overview and analysis of the City's financial activities for the fiscal year ended June 30, 2025. The City encourages readers to considerthe flnancial statements and notes presented here in coniunction with the linancial statements which are included with this report.

Financial Highlights
o The City's net position increased 4.7ol" to $89,110,312 from $85,151,069 as a result of this year's operations.
. Total City revenues, including program and general revenues, were $37,120,792, which is Sl ,170,565 more than the prior year.
r Total City expenses, including governmental and business-type expenses, were $33,161,549, which is $5,321.952 more than the prior year.
. Net position in governmental activities decreased by $65,773 to $63,363,292, a 0.1% decrease. . Net position in business type activities increased by $4,025,016 to $25 ,747 '020, a 19% increase . Governmental revenues decreased by $1,502,018 to $22,96?,821 , a 6% decrease. . Governmental expenses increased by $4,396,015 to $22,511,294, a 24o/o increase. . Revenues from business-type activities increased by S2,672,583 to $ 14J57 '971 ' a 23% increase. . Expenses from business-type activities increased by $925,937 to $10,650,255 a 10% increase . General fund revenue decreased by $440,410 to $18,162,744, a2 4yo derrcase. . General fund expense increased by $5,798,601 to $19,951 ,268, a 41.0olo increase. . The fund balance of the General Fund as of June 30, 2025, was $21,118,866; a decrease of $1 ,788,524 or

7.8% from the prior year.

Overview of Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements are comprised of:
1 . Government-wide Financial Statements

2. Fund Financial Statements
3 Notes to Financial Statements
This report also contains Required Supplementary lnformation and Supptementary tntormation in addition to lhe Basic Financia, Statemenfs.

The Government-wide Financial Statements
The government-wide financial statements are designed to provide readers wath a broad overview of the City of Tehaihapi's finances, in a manner similar to a private-sector business. The focus of government-wide financial statements is on the overall financial position and activities of the government as a whole. These financial statements are constructed around the concept of a primary government. The primary government is then broken down into two different activities: governmental activities and business-type activities.

Govemmental activit es include the following
General Government
Public Works
Administration, finance and accounting, human resources, economlc development, legal services, and the City Clerk's office Maintenance and repair of roads and buildings, landscaping, lighting, drainage, and community promotions
Police and fire services
Planning, engineering, building inspections, and developmenl services Public Safety
Community Development
The services under governmental activities are supported by taxes and specific program revenues 12 Business-type activities include refuse, water, wastewater, transit, and airport services. Unlike governmental services, business-type activities are supported by charges paid by users based on the amount of services used.

The qovernment-wide financiat statements are comprised of the Stalemerl of Net Position and Starerrent of Activities.

The Statement of lrel Posidon is prepared using accounting principles that are similar to a private-sector business.

The purpose of the Statement of Net Position is to report all assets held and liabilities or/ed by the City. The difference between the City's total assets and total liabilities is labeled as net positlon and this difference is similar to the total owners' equity presented by a private-sector business. Although the purpose of the City is not to accumulate nel position in general, increases or decreases of net position may serve as an indicator ofthe financial position of the City.

The Statement of Aclryrues presents the revenues and expenses ofthe City. Again, the items presented on the Statement of Activities are measured in a manner samilar to the approach used by a private-sector business, in that revenues are recognized when earned and expenses are recognized when incurred. The difference between revenue and expenae is called change in net position in the City's flnancial report whereas it is called net income in a private-sector business.

Fund Financial Statements
Unlike government-wide financial statements, the focus of fund financial statements is directed to specific activities of the City rather than the City as a whole. All of the City's funds are composed of three categories: govemmenlal funds, propietary funds, and tiduciary funds.

Fund financial statements provide detailed information about each of the City's most significanl funds, called major funds. The @ncept of a major fund, and the determination of which funds are major, was established by GovernmentalAccounting Standards Board (GASB) Statement 34 and replaces the concept oJ combining like funds and presenting them an iotal. lnstead, each major fund is presented individually, while all non-maior funds are summarized and presented in a single column.

Govemmental funds are used to account for essentially the same functions reported as governmental activities in the governmenlwide financial statements. However, unlike the governmenlwide financial statements, goveinmental fund flnancial statements focus on near-term inflows and outflows of spendable resources, as well fs on balances of spendable resources available at the end of the flscal year. Such information may be useful in evaluating a government's near{erm financing requirements.

Because the focus of governmental funds is narrower than that of the governmenlwide financial statements, it is useful to compare th; information presented for governmental funds with similar information presented for governmental actavities in the government-wide flnancial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions.

The City of Tehachapi maintains 13 active individual governmental funds. lnformation is presented separately in lhe Goiemmental Fund Balance Sheet and lhe Govemmental Fund Statement of Revenues, Expenditurcs and Changes in Fund Balances. The funds categorized under major funds are: General Fund, Facility lmpact Fee Fund, Traffi; Mitigation Fund, Pedestrian Safety Fund, and Street Prolects Fund. Oata from seven governmenlal projects are combin-ed into the Pedestrian Safety iund and eight governmental projects are combined into the Street Proiects fund, which are capital projects funds. Funds such as the gas tax funds, Transportation Development Act grant funds, landscape lightinb dlstrict funds, and drainage basin assessment diskict funds are grouped into the Other Governmental Funds.

The prolects included in the Pedestrian Safety Funds are Brentwood Pedestrian Facilities, Tehachapi Blvd Bike Une f6nce, Northside Neighborhood Sidewilks Ph 3, Transit Center Sidewalk Connection, Valley & Mill Gap Closure, Dennison WestsidtBike/Pedestrian lmprovements, and Dennison Birycle-Pedestrian lmprovements. The f rojects included in the Street Projects Fund are the PED Summit lnterchange, Capital Hills Area Resurfacing, City13 wide Pavement Rehab, Tucker & Highline Round-a-Bout, Measure S Pavement Rehab, Valley Resurfacing Beech to Tucker, Tucker/Cherry lntersection, and Pinon Road Extension.

Propdetary tunds record revenues when they are earned and record expenses at the time liabilities are incurred.

The only type of prop ietary funds the City of Tehachapi maintains are enterprise funds. The Refuse, Water, Sewer, Transit, and Airport funds are enterprise funds and presented as business-type activities in the governmenlwide financial statements. Propdetary funds provide the same type of information as the govemmenlwide financial slalements, only in more detail. The City considers Water, Sewer, Airport and Refuse Funds to be major funds whereas the Transit Fund is categorized as a non-major proprietary fund.

Fiduciary tunds are used to account for resources held for the benefit of parties outside the government. The City's flduciary fund activities are reported in a separate section of this report under the Slalement ol Fiduciary Net Posrlion. These activities are excluded from the City's other financial stalements because the City cannot use assets belonging to fiduciary funds to flnance ils operations. Financial activities included in the fiduciary statement consist of the Successor Agency to the former Tehachapi RDA (Successor Agency), Special Assessment Districts (AO), and the Community Facilities Districts (CFD).

Notes to the Financial Statements
The notes give additional information that is essential to a full understanding of the data provided in the governmentwide and fund financial statements.

Required Supplementary / Supplementary lnformation
ln addition to the basic flnancial statements and accompanying notes, this report also presents cetlain Required Supplementary lnfomation and Supplementary lnformation. fhe Required Supplementary lnfomation seclion inciudes budgetary comparison schedules for major governmental funds and lhe Supplementary lnlotmation section includes an illustration of conditions and activities for all non-major funds as well as special district agency funds.

Government-wide Financial Analysis

A S SETS
Current and Othe. Assets
CagtalAssets
26 532 233
42 688 077
26 124 5!2
41 800.r21
6 529 151
23 606.116
7 812 388
19 688.259
33 061 384
66 294 193

3.4.536 930
61 488 380

68.524.663 30.135 267 27.500.647 99.355 577 96.025 310
D€fERREO OUTTLOWS Of RESOITTaCES 2 365.567 2 653.100 9M 781 I 107.930 3 350 3.18 3 761 030 3 289 499
4 773.193
1 784 756
3 076 226
2 135 565
5 159 606
3 0r8 032
3 329.723
5 07t 255
7 849 419
5 453 597

8.489 329
OEfERRED lr,lf LOwS Of RESOURCES
8!62.592 7 595.171 4 860 982
153 527 512 U6 538 818 671 939
t{ET POStTTOt{
Net lmestment in CafitalAssels
Restncted
Unrestrict6d
Total Net Pos ron
11 192 432
3 924.920
18 3t'!.313
18,t52 589
3 23{.215
35 200
u n7 476
7 510 963

16.821 473
59 615 421
7159',t35

18.346.513
!2 2!9 427
1 150 922

16.962 543
22 52A 0!9
3 360 041
(14'1.070)
63r9n65 25 7!7 020 2',t 722 004 89 110 3r2 85 ',rsl 069 The City's overall financial position and operations for lhe past two years are summarized in the table above based on the information included in the governmenlwide financial statements. At June 30, 2025, the City's overall net position was $89,1 10,312, which is the difference between assets plus deferred outflows of resources and liabilities 't4
Statement of Net Position Summarv
Gove.nm€nt l Activitiei Burine.s'TYp€ Activitior
.,,.

T*tl
2025 -- ln?.{ 2025 2024 2025 202{

LIABILITIES
Cu(enl Lrahlfies
Long{erm Lrablitres
Toral Lratilities
plus deferred inflows of resources. The net position that resulted from governmental activities was $63,363,292 and from business{ype activities was $25,747,020. Net position may serve over time as an indicator of a government's financial position.

The largest portion of the City's net position is investments in capital assets. The Net lnvestment in Capital Assets (e.9., land, infrastructure, buildings, machineries, and equipment) was increased to $64,777 ,876 (73% of total net position) from $59,645,421. This increase of$5,132,455 resulted from added capital assets less removed capital projects and depreciation expense. The Net lnvestment in Capital Assets is calculated by deducling the accumulated depreciation amounl as well as associated debts from the total capital assets booked. The capital prolects still in progress at the end of the fiscal year are included in the construction in progress (ClP) balance until the projects are completed. Listed arethe proJects included in CIP at the end o12024125.

Governmental Activities:

Tucker / Cherry lntersection lmprovements
Rodeo Grounds Fencing & Landscaping
Pickleball Shade Structure
Transit Center Sidewalk Connection
Valley & Mill Gap Closure
Warrior Park Exercise Equipment
Business-type Activities:

Airport Taxiway Relocation
Dennison Bicycle & Pedestrian lmprovements
Dennison Westsrde Brke & Pedestrian
Rockpale Communications
Beekay Theatre Expansion
Tucker & Highline Round-a-Bout
Snyder / Mojave Transmission Tie ln
Upon completion, the following projects will be categorized in a specitlc group of capital assets and will start being depreciated. The capital projects completed during the fiscal year 2024125 wete Valley Recreational Park, Brentwood Pedestrian Facilities, Tehachapi Blvd Bake Lane Fence, Northside Neighborhood Sidewalk Phase 3, and Access Control Upgrade.

The City started capturing its capital assets an governmental funds beginning in fiscal year 200212003 ln accordance with GASB 34, the City was not required to retroactively capture its capital assets because the City fell under lmplementation Phase lll rules due to the size of its revenue in fiscal year 1999/2000. Although the City's investments in capital assets are reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, as the capital assets themselves cannot be used to liquidate these liabilities.
ln 2012, GASB 68 was issued to improve financial reporting by state and local governments for pensions and replaced GASB 27. The City implemented GASB 68 from fiscal year 2014/15 foMard as required and the pension information is recorded in the Statement of Net Position. The Deferred Outflows/lnflows of Resources are composed of deferred pension contributions, proportionate share differences, and pension actuarial amounts. The Net Pension Liability balance as of June 30, 2025 was $5,955,370.

The restricted net position was increased by $351,828 to $7,510,963, while the unrestricted net position was decreased by $1,525,M0 to $'16,821,473. Forthemostpart, the increase in restricted fund balance was attributable to special revenue funded capital projects not completed by year-end. The unrestricted fund balance decrease was primarily due to increased General Fund contributions towards road rehabilitation capital proJects. Detailed explanations will be further illustrated in the General Fund section.

Govemmental ActiYities
Governmental activities decreased the City's net position by S65,773 to S63,363,292, accounting for 717o of the city-wide total net position. The net position balance is composed of$42,249,827 of net investment in capitalassets, $4,150,922 of restricted fund balance, and $16,962,543 of unrestricted fund balance.

The governmental capital assets include not only general capital assets costing over $10,000 but also infrastructure conslructed afterthe year 2OO4 as required byGASB Statement 34. The balance in net investment in capital assets represents 670lo of the total Net Position in the Governmental Activities section. The $1,056,995 increase in net 15 Busi ness-type Activities
The City operates five business{ype activities. These activities are captured in four major funds (Water, Sewer, Airport and Refuse) and one non-major fund (Transit). The net position in business-type activities was increased by $4,025,016 to $25,747,020, accounting lot 29yo of the city-wide total net position. The enterprise funds contributing lo the increase of net positaon were Water for $66,024, Refuse for $21,797, Transit for $4,693, and Airport for M,320,844, whereas the decreases of net position were Sewer for $388,342.

The net posation balance is composed of $22,528,049 of net investment in caPital assets, $3,360,041 of restricted net position, and ($141,070) of unrestricted net position. Vvlile net investment in capital assets and restricted net position increased by $4,075,460 and $125,826 respectively, unreslricted net position decreased by $176,270.

The net investment in capital assets increase was due to the Airport Taxiway Relocation project. The increase in restricted net position was caused mainly by interest earnings in the Sewer Development Fee funds whereas the decrease in unrestricted net position was primarily due to capital project debt service payments in the Sewer Fund.

Statement of Activities
Government.lActivilies Bu3ines.TypeActivities
2025 2021 2025 2021 2025 2021
Prog{am Revenuas
Charges for Seruces
Operatrng Contnbutions & Grants
Captal Grants & Contribunons
General R€!'€nues
Propeny Taxes
Sales Taxes
Other Tax€s
Lrcense and Pormts
Mrscellaneous
Gain^oss on Disposal
Total R6/enuss
Business-type ActMties
Transit
Total Expenses
Exce.s (Oericiency) o, Revenue
Change rn Net Posrtron
Net Postron al Begrnnrng ot YeaI
Pnor Pe.'od Adrustment
llet Poiiiion .t End ot YeaI

1.941.885
341 822
3 210 140
9 522 AO9
242 237
.4 082 589

8.823 640
263 012
2 162 093

11.464 69,1
624 059
7 322 729
11 243.531
685.904
6 407 869
2 419.89r
422 892
1 244 776
3 042.445
9 381 335

3.566 984
2A4 194
72 63!
1028.388

90.309
174.987
5 030

92.331
197.714
(53.436)

2.714.301

9.259 2-t5

3.831 803
395 801
194.087
r.309 063
5 040

3.042.,r45
9 381.335
3 566.984
284.494
164 965
1 226.'136
(53.436)
Exponrai
Primary Got/emment
General Go,/smment
Public Works
Public Safety
Community Developmenl

2.757

8.035

8.268

3.430
27 2 753 775
I 035 973
I 268 024
3 430 138
23 384

2.U4
4 727
7 .254
2A
982
541
640
229
867
2 570 420
3 324 213
3 269 137
290 001
1 196 484

1.895.058
3 076.6.19
3 257 049
274.973
1219.589

1.896.058
3 076 549

3.257 049
274 973
1 219 589
775
973
o24
138
384

2.570 420

3.324 213
3 269 137
290.001
1 196 484

22.51 1,294
451.527
'to 654,255

3.fi7.7r6
33 '61
alg
s 959 243 a | 10.630
(517.300) (3 103) :,-: 3103
(65.773)

63.429.065
4 025.016
21 722 0U
176t.173
't9.408 679
519.'152
to
anvestment in capital assets was primarily from grant funded capital projects. Furthermore, the restricted net position increased by $226,002 from the prior year but the unrestricted net position decreased by $1,348,770. The restricted fund balance addition was essentially due to special revenue funded capital projects not completed by year-end whereas the unreskicted fund decrease was primarily due to increased Generai Fund contributions towards road rehabilitation capital prolects. Readers may find how lhe Fund Balances in Govemmental Funds ate derived from the Nel Pos,Iion of Govemmental Actiyities from the section Reconciliation of the Balance Sheet of Govemmental Funds to the Statement of Net Position in the body of the financial report.

2.714 301
I 259 2',15
3 831 803
395.801
r03 778
'l 134.076
37 120 792 35 950.227
2 544.942
4 727 441
7 25!.640
3 s59 229
28 887
6 346 457

57.082.608
3 959 243 I 110.630
85 151 059 76 491287
- 549.152
89 110 3t2 A5 tst 069
Financial Analysis of lndividual Funds
The City uses fund accounting to ensure and demonstrate compliance with flnance related legal requarements Please note that unllke the government-wide flnancial statemenls discussed previously, the fund statements are reflected on a modfied accrual basis.

As of June 30, 2025, the City's governmenlal funds reported a combined ending fund balance of $22,017,435. This is a gl,i46,Bi4 or approximateiy 5% fund balance decrease from the prior year. As shown inthetable below, the decrease is attributed to unfavoiable operations in the General Fund partially offset by grant reimbursements to the Capitat erolect tunds. The General Fund's decrease in fund balance is primarily due to contributions towards road |'et aoititatidn projects. The Facility lmpact Fee fund balance increase is due to development fee revenue paying down a loan io it'e Sewe, Conn6aion Fee Fund. The decrease to the Traflic Mitigation fund balance is due to contributions towards interchange and intersection projects. The increases in fund balance for both the Roads and i"O".tri"" Saiety and Street P-rojects capital proj6aiunds were due to several grant reimbursements received during the fiscat iear. The negative fund balances in capital project funds mean capital prolect grant revenues were not rjceived yet. Fund balan|e changes in the governmental funds are summarized as follows:

Governmental Funds
Governmental Funds Balance Summary
Special Revenue
June 30, 2025 ,
Decrease
General Fund s21 118.866 ! $22.907.390: (S1.788.521)
Other Governmental Funds i $819.771 i 51.085.729 ($265,958): -24% TOTAL
$ lncrease .A
Chan
Captal ProJect
Pedestrian Safety Fund
Streets Prorect Funds
Other Go,/emmental Funds
Water Fund
Airpo.t Fund
Non-mapr Transit Fund
s
$
s
s
s
9A2 278
I476
536.994
632 455
896 522
236.372
Advancet as of 06/30/25
$ Facrlity lmpact Fee Fund $ 2.000.000 3.293 096
The two-million-dollar loan to the Facility lmpact Fee Fund originated in 2014 with the construction of a new police i""lity
- f6" ,dr"n"". rnaOe to tne p"iestiian Safety Fund a-no Streets capital pro1ects funds are because of the timin6 of tne receipt of grant ,"r"nr".. Annual funo deficits in the Airport and certain Landscape Lighting oistricts ($2 496 120) s97.306 -t%
($28.198)
.t..-...-
! -1% ! SZ.et e Zet
($2 593.426)
Roads and Pedestrian Safety a
s808.550
($30.010): s30.010 : 100%
(s243.363)i ($1.051913)i
-5 o:i, $23.'164.249 ($1.146.814) :- - :

June 30, 2024
The General Fund is the chief operating fund of the city. At the end of the curent liscal year, the fund balance in tt" C"n"rrr Fund was $21,11s,866, vihich includes $24o'233 of prepaid expenses' $3 293'096 due from other irnO.
-(int"rfunO
receivables), an;
'$2,O0O,OOO advances from.other funds. The General Fund is the only Oiscretiinary tunO out of the i S op"ofigl;r"rnmental funds and any fund shortages in other funds, at the end of n.""i,""i jr" mostly covered by the GErieral Fund. The summary ;f interfund receivables and advances as of June 30,2025 are as listed:
lntertund Receivables a! of 06/30/25
Facility lmpact Fee
Traffc lv'lrtrgation
Street ProJects
17 funds are covered by General Fund through operating transfers, not as loans, because those funds are not *lpable of making debt payments in the foreseeable future. To date, the General Fund has subsidized $2,876,204 and $2,129,151to the Airport Fund and Landscape Lighting Districts respectively. ln addition to advances and prepaid expenses in the General Fund, the GASB 54 commifted fund balance is not spendable without Council's authorization and can only be used for a declared emergency situation. The committed fund amount is calculated annually based on GASB 54 requirements and approved by the City Council. The committed fund balance forflscal y'eat 2O24l25 was$1,823,503. The spendable fund balance after the deduction of outstanding advances, prepaid expenses, and committed funds may be used to pay for future capital projects for the City's general operations.

Among flve major governmental funds, two governmental funds had negative fund b€lances at th_e end of this flscal year. ihese fu;ds;rethe Facility lmpact Fee Fund ($2,496,'120) and Pedestrian Safety Projects Funds ($243,363). bther than the Facility lmpact Fbe Fund, the negative fund balances will be eventually covered by various capital proiect grants.

The deficit fund balance in the Pedestrian Safety Projects Funds is timing related. Capital projects in these funds are all grant funded projects and grants are collected on a reimbursement basis. The negative fund balance in the iacility"Fee Fund wlit Ue paiO by fiture fee collections from developers. As mentioned earlier, this deficit originated with the construction of the new police facility and the remodeling of the City Hall Annex which is currently occupied by the Development Services bepartment. The Facility Fee Fund deficit was covered by the General Fund ($2,000,000) and Sewer Connection Fee Fund ($496'120).

Cerlain special revenue funds, miscellaneous capital project funds, landscape lighting maintenance district (LLO) funds, and drainage beneflt assessment district (DBAD) funds are included in Other Governmental Funds. The .p""i"r r*"n* frinds are various development fee funds with-a -specific purpose for the use of the funds. The
cbmbined fund balance of Other Govemmental Funds was $819,771 The main sources of the positive fund balance in Other Govemmental Funds were from certain LLD and DBAD funds' Proprietary Funds
The balances in net position of the proprietary funds are summarized below:

June 30.2025 June 30.2024
Dectease Cha e
Malor Fund
TOTAL
The net position in the water Fund at the end of fiscal ye ar 2o24l25was$7,904,876, which was a $66,024 increase rrom r,sJ year zo23l24. This increase in net position in a proprietary fund is similar to the,netincome_in a private sector business. The increase will be accumuiated in the net position and the unrestricted portion of net position *irr irnO frtri" *"ter related capital pro;ects. Compared to the prior year, both Water Fund revenues and expenses i""r*."Juv Srgo,Tzg ano $zio,gsb respeclively. Tte revenue increase was mostly from a water fee rate increase associaieo ivitn changes in the Los Angeles arei cPl in January 2024. The CPI used for the waler rale increase iiltt iOZq was Z.iok. On the expen-diture side, the mostnotable variances are increases in personnel costs (S128,513) and in operating and maintenance costs ($136,193)' As shown in the table above, the Sewer Fund recognized a $388,342 decrease in net positon from lhe prior year wtriitr resutteO in a year-end net position of $9,752,807. Compared to the prior year, Sewer Fund revenues $7 838 852 | $65,024 i 1"io $7.904 876 :
l^y'ater Fund
$10.141.149 (s388.342)i Sewer Fund i
s3.639 165 1 s4.320.8{4 i 1190A Arrport Fund $7 960 009 . srs.r oza i $132 277 $21.797 i 15% Refuse Fund
Transrt Fund (s24.746)i ($29.439) s4.693 i '16%
$25.747 O2O i 521 .7U oo4 i $4.025.016 i 19%
18 I lncrease
Non-Mapr Fund
decreased by $32O,lOO while expenses increased by $9,274. The revenue decrease was mostly from lower sewer connection and development fees compared to the prior year. On the expenditure side, the most notable variances are from increases in operating and maintenance costs ($21,252) and an increase in personnel costs ($46,932).

The Airport Fund's net position at the end of the fiscal year was S7,960,009, an increase of $4,320,844 from the prior year. The Airport Fund's net position increase was almost entirely a result of receiving $4,045,942 in grant ieimbursements from the FAA for phase two of the Airport Taxiway Relocation project. \Mthout the grant reimbursement, the airport fund would have suffered a deficit and needed a transfer from the General Fund for support. Total operating transfers from the GF to the Airport Fund since FY 2000/01 has been $2,876,204. During fiscal year 2024125, lie Airport Fund's lolal revenues increased by $2,478,286 while expenses decreased by $38,lil compared to the prior flscal year. The actual revenue decrease from operations without the FAA grant reimbursement and General Fund subiidy was $10,296 and this decrease was primarily from decreased fuel sales. on the expense side, the airport's personnel costs were higher by $36,322 mainly due to a 3.270 COLA increase for all employees in fiscal yeat 2o24t25 but operating and maintenance costs were lower by 948,985.

The Refuse Fund recognized a $21 ,797 net gain during the flscal year resulting in a $154,074 ending net position. fne Clty contracts for iefuse services with Waste Management Company and receives.107o of total refuse and recyciini serrice revenues from the contractor for administration, billing, and accounts colleclion services provided uv in" Cltv. ln July 2024, the refuse service fees were increased afler completing a rate study and Proposition 218 piocess t6 increase rates, comply with SB 1383, and implement curbside organics recycling General Fund Budgetary Highlights
A detailed budgetary comparison schedule for the year ended June 30, 2025 is presented as Requircd Suiid^int",y hn#ation iollowing the Noles to the Financial Staternents. The final budget amounts differ from tnJs'e snown in the original 202412i five-yex budget. This modification is a result of changes made by mid-year budget adjustments.

General Fund
OnEnal Budget
Revenues incl Other Sources
Expendrtures rncl Other Uses
Net Changes
Fund Balance - Beginning (Ad,usted) 22 907 390 : 22 907.390 i 22.907 3gO: i8.456 903 .

Fund Balance - Ending 21.615.204: 18.909.238: 21.118.866 i 22.907.390 The General Fund's fiscal year end fund balance was $21,616,204, which includes a $1,788,524 negative net chanle in fund balance. ln iomparison to the final budget, this year's operations resulted in-a $2,209,628 favorable fund'batance variance. Most of ihis positive budget variance was due to unrealized gains from investment market ,Jjr.ir"nt" lower than expected contributions lowards road rehabilitation capital pro.lects due to prolecl timing, and lo,ver personnel costs due to vacant, unfilled positions. compared to the prior year, total revenues decreased by $440,410 and expenditures increased. by $5,798,601 ' it
"
i"iriLo olal6t t,o actuat numbers comparison of the General Fund is included in the Required Supplementary lnformalion secl6n in the Financiai Report. The main reasons for the decrease in revenuearedueto $ 4,186in lower sales tax revenue from a county pool correction and $451,585 in deferred property tax.revenue from county ,.rittrn"" delays. These decreases'were partially offset by $117,543 of unrealized gains in investment market "Jir"'t."*", Sgt,2oo of increaseJioi ,erenue from a new hotel, 5105,141 of increased property tax in lieu of vii Jr" to t ign.r assessed values, and $196,088 of increased code enforcement revenue from a second code enforcement office/s activity.

Fina E udge
2024t25
Actual
2023t24
Actual
Budgetvarianc.
2024,25 Adral vs
Final Eudqet
increase(dectease
Adral Variance
2024t25 rs.
2023,21
rn6ease(decrease
(440.410)
5 798.601
17 230.889 i
18 522 075 :
17 640 736 i

21.538.888 :
(3 998 152)l (1.788.521): ,1.450.,187 : (1.291.185)i
18 603 154
14 1\2 67
522.008
1687.620
18 162 74{ i
19 951 268 :
(5.239.011)
'19
The biggest increases in General Fund expenditures were from personnel costs, fire service contract increases, legal costs relating to increased code enforcement activity, and transfers to road rehabilitation capital proJects. The personnel costs were higher mainly due to a 3.2olo COLA increase for all employees as well as vacant Positions being filled in fscal year 2024125.

The General Fund major revenue variances compared to the prior year with key reasons are listed below:

Revenuei
mzuz5 vr 2O23n1
lncreaie/(Decre.se) Reasons
9?lgi."Ti-'. ...

Transrent occu
Pr-9p9,1v r?r-.. ...

Vehrcle Lrcense Fee in Lieu
Code Enforcement
Franchrse Tax
lnteresl lncome / Unrealized Gains
Total
The major expenditure variances compared to the prior year with key reasons are listed below:

Expen3e3
2021125 Y.2023121
lnca6ase/(Oecreare)
PersonnelCost
r",!f "e_q9rvt99_q9j|!{?9!. g,I!-d.1l]9.Ual$Pn3!]-cJ
Lgga!.99-sJ9. .....

T.ansIers Out
Contract Sel\,1ces
CaIPERS Untunded Lrabrl[]' Pmt
Fotal
Capital and Debt Administration
Capital Assets
The City of Tehachapi's investment in capital assets for both governmental and business-type activities as of June 30, 202'5 amounted to $66,294,193 (net of accumulated depreciation), which was a $4,805,813 increase from fiscal ii^, iOZSDq as shown in ttre taOte below. Of the total, increases of $887,956 and $3,917,857 were from 6overnmental activities and busrness activities respectively. The detail of changes in the capatal asset balance can 5e found in the Notes Section 2-C.

The main contributor to the increase in investment in capital assets for governmental activities was from an increase in pa*s €fegory assets partially offset by a d99r9a:e in construction in progress' The. primary addition to the coistruction ii progress (ilP) baianc" 'rr"iSt,SO3,5n3 ftom Dennison Bicycle and P-edestrian lmprovements offset ov tr.,L vi6v ni"rJ"tion)t park asseli of S2,651 ,291 that were completed and transferred out of CIP and reclassed 6 tit "
e"*. ."t"gory. The full tist of prolects in blP are shown in the Government-wide Financial Analysis section of this report. ihj governmental assets that were completed and transferred out of CIP and reclassed to depreciable assets are:

Valley Recreational Park
Brentwood Pedeslrian Facilit€s
Tehachapr Bhd Bike Lane
Northedo Nelghborhood Srdewalk Ph 3
Access Control UPgrade

2.651 ,291
334.488
313,701
158,117
168,885
$ 3,626
_C-9_rlr!y_p991.,qqrr,9_.!!o.! a|g]-ot!_ql !!l-P11999.._ 2nd offcer led to rncreesed code enforcament a
ral funds rate Isd to increased malket values
lncreease from cable and waste man
Decrease in fede
II ho el sl rucl ect s
i 2 -2 t9 c-9.9!lv- 99lqr.!r.tq.n'!!?!q!s
Assessed Value rncroase
,,,,,, ,,'''..''.'' F5t .5
55 151
117 513
S
85 105 141
196 088
.la1,!-89

95.206

9. 3llowfl .1.9 ?.j!.1!Ie99-'e_s l Yalart!.P99!!9lt-9
emrums due to merket and increased a
and Prckleball Couns
H arsed Yalues
Mer and cosl of lNrn
PD Cam-e.'I-a's.J,i,le.n,. w"
lncreased UAL re
lncr
Mar
ed od 3at )
e R P{9le_c!F 3 740 328 -- -drii'id
1 't30 310
120 996
202 909
51 383
5 509 393
20 J32
Tax
Rea30ns
5 The largest addition to capital assets in business activities was from grant funded infrastructure projecls which are still in c;nstruction in progress (ClP). The construction in progress (ClP) balance had additions of M,413,596 from the Airport Taxiway Relocation Construction Phase 2 project.

Capital Assets
Govcrnmcnt.lActivitlas BusincaaTyp.ActiYitica Total 2025 vs 2021 2025 2021 2025 2021
Mon-Deprecrable Assels
LaM
Wal6r Rqhts
Construclon rn Progross
Total Non-D€predable Ass€ts

1.3a2.386 ',l.382.386

2.540 595 3.860,172
713,405
2 865.174

7.860,1,16
756.043

2.65 171

3.459. r02

[email protected]
2,865174

10.400.741
21T 129
2 ffis 474
7 319.271
({2,638)
0 3,081.467

3.922.9$ 5242.558 11139.025 7 080.619 15.362 006 12 323 177 3 038.829 Total D€precEble Assels _ Nel 3a.765 006 36 5s7 563 12 167.091 12 607.M0 50 932 187 49 165.203 1,766.98.{ Tobl C.pit.l 433.t3 o71 11.800.121 23.806,116 19.688.259 193 81, 488.380 1,8!!,!lL lnFy ZOZ4I2S, cedain assets were deleted from the books as shown in A/ofes Secrlon 2-C. The detailed information on deleted assets is presented in the lable below
Oeleted Capital Assets
Asset Accumulated
F und Asset Catcgory TransacUon Cost reciation
Busaness-Type
Governmental
Oopreclable Assots - Net of Accumulalod Deproclaton
Buddrngs 4.157.984
M6chrnery and Equipfi€nl 2 1'19.095
lmpro!€ments Other than Burhmgs 29,481.210
P6rks 2,811,068
Rroht-lo-uselnfrasttucturo/Leas€dVohlcles 159739

1.130.7m
t.438.011
30 315,360
166.724

26.70s
5 590.9M
406.725
6160.162
5,853 921
280.507

6.462.319

9.757,888

2.555.820

35.6,t7.672

2.811.068
't 59.739
10 28,t 681
1718.52',|
M 777.679
166.724
217 598
(526.793)
837.299
(r.130,@7)

2.614,311
0 (57,&59) 10.893
Govammcntal Activitias Busina!3 TypaActivitia! Total 2025 \t. 2021 2025 2024 202r 2025 2024 lncrcasc(Occr)
trl 407 125
241 3 306 593 3 56.4 978
Long-Term Debt
The city of Tehachapi's total long-term debt was decreased by $700,556 compared to the Prior year. As shown in tn" trUtl U"to*, the largest increase was from compensated ibsences as the number of employees with accrual balances incteased. Th]e largest decrease was from the City's net pension liability' Bonds
Loans
Leasos
llet PonsEo Ll6b tty
Compens€ted Absences
Tot6l Long-Torm Laabrlilies
438,250

4.123.413
607,289

4.476.293
363.659
r 52.700
863.228

62.139

1.83',t.957
336.569
152,ltfi
863.224
500.389
s 955.370
8:I9.S76
16r,200
974,367
107,392

6.455.202
7!4.058
(8,soo)
(l1r,139)
(207.@3)
(199,832)
161 200
971.367
[email protected]
1 978 909
350.3S9
$ 93,634
$ 250.524
$ 89.380
$ 42.638
$ 89.380
$ 255.778
Outdated - sold at Public auction/
traded-in for new ass{it
Retum of leased asset
Outdated - sold at Public auctionl
Sale of land
drs venficalion
Land & Water Rts
Machine & EqutP
agllle g _E-q-qlP
Machine & Equip
Water
Wastewater
Government
$ 481,430 $ 433.538

5.005,070 5.447 8.31 1,663 9.012.219 700 556)
202s 2024 lncraa3a(Dacr,
Activity
$ 93,634
The decrease in net pension liability (Unfunded Accrued Liability UAL) was mainly due to an increase in investment income at CaIPERS. The reader may flnd detailed long-term debt and lease information in Notes Sectlon 2-F.

Furthermore, the City employees' detailed pension information is included in Notes Section 3-8.

State statutes limit the amount of general obligation debt a governmental entity may issue to flfteen percenl of its total assessed valuation. The City has not exceeded this limit.

Next Year's Budget and Economic Factots
ln June of 2025, the councit adopted the 2025t?6 through 2029/30 five-year budget with lotal appropriations of $36,g54,068 in fFical yeat 202512d. The following factors were taken into consideration in compiling the next flscal year budget:
o The 2025126 budgeted General Fund revenue is $18,063,314, which is $99,430 less than the actual revenue received in 2024125. The variance is mainly due to revenues being conservatively budgeted and investment earnings being higher than expected.
r The 202526 General Fund eipenditure budget amount of $17,671 ,008 is projecled at $2,280,260 less than the actual expend ilwes in 2024125. The decrease is prjmarily due to transfers of over $.3.2 million to street rehabilitation capital pOecl funds in the prior year partially offset by personnel expenditure increases due lo a 3.2o/o cost of living;djustment (COLA) for all non-sworn statf and 5.0% salary adjustment for swom police officers in respbnse to memorandums of understanding with two -
d ifferent represenled groups.

Additionalty, the City is fi ing vacant budgeted positions consisting of two full-time positions in the Police Department, two fuli-time poiitions in thebevelopment Services Department, and one full-time position in the public Works Depariment. Operating expense increases include Kern County llre contract cost increases.
. compared to the actual amounts in FY 2024t25,lhewater sales revenue was budgeted at a 10.1% increase whereas the sevyer service charges were budgeted at an 18.6% increase. Both were due to rate adjustments tied to completed rate studies and Prop 218 processes . Ajproximately 30 equivalent dwelling units (EDU) were considered in new water and sewer connection fee revenues calculation.
. Budgeted new positions are two full-time employees in the Wastewater Department' . Capital projects and equipmenl purchases included in this budget are:

General Government / Police department vehicles and equipment: $510,000 F250 Truck with Snortr Plow: $190,000
Public Works Service Truck / Forklifi / Compressor / Roller: $175,000 Rock Pile Communications: $1 75,000
ALUCP update: $75,000
Banked Water purchase: $250,000
Snyder / Mojave Wells Transmrssion Lines: 5850.000
Water Structure lmprovements $610.000
Water F250 Truck: $100,000
Sewer F250 Truck: $60,000
Biosolids handling system: 5250,000
Airport Runway Rehab: $168,000
Dennison Bicyale & Pedestrian lmprovements: $750,000
Dennison Weitside Bike / Pedestrian lmprovements: $560,400 RSTP Valley Resurface - Beech to Tucker: $547,000
Transit Center Sidewalk Connect: $643'572
Tucker & Highline Round-a-Bout: $572,488
Valley & Mill Gap Closure: S200,000
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
After feeling the effects during the beginning of the covlD-19 outbfeak, the local economy has bounced back with .""i r"v iEr".r" sources r6acning i1
",."-""ding
pr"-prndemic levels. However, inflation remains high as food anJrertnanOise prices have increlsed rapidly. Fuel prices are also still high, although not at peak levels seen in prior years. w11ile consumer spenOinj on i"r"tt" gooda remains steady, recent declines in consumer confidence 22 on the nataonal level driven by inflationary pressures, tariff concems, and rising unemployment pose risks to sustaaned revenue gro( /th.

According to the U.S. Bureau of Labor Statistics, the 12-month Consumer Price lndex for All Urban Consumers (Cpt-U) was up 2.4o/o in May 2025 t1t. As of September 2025, the unemployment rate in.the City of Tehachapi was i).6%, which *as 3.0% higher than the State of California unemployment rate of 5.6% ('?). More data is included in the Economic Condation slction ln the Transmittal Letter of this financaal report. As a resull, a possible recession in the next few years is being predicted by some economists. Due to this increasing likelihood of a recession, lhe City's fiv+.year budget was-built with conservative revenue estimates from a potential slowdown in economic groMh.

The Fy 25-26 budget cycle was unique in that the City continues to face rising costs of basic contract _services and nigh inflation but ijablqto overcome these adverse conditions due to our voters, who, in Novembet 2022' app@ved a\% locat sales tax increase here in the city. The City is usang the additional Measure S revenue and built-up ieserves to fund signiflcant road rehabilitation prolects and produce a five-year balanced budget in the General Fund. The voters' iivestment in our community hjs moved us out of a future deficit into a positive tralectory that witt teep tetracrrapi healthy, safe, and well-miintained for years to come. Although the General Fund has been jiuen-a !brincant 'boost in sales tax revenue, the City continues to budget conservatively as inflation remains high Ind a recission in the near future is possible. The City is able to provide for continuity of local fire,, police, and 91 1 Oiap"t"t-."*""" as well as infrastiucture maintenance all while strengthening our reserves after dealing with unfunded mandates imposed by the state
Notable in this year's budget was signiflcant capital investment into the city's infrastructure as capital oullay makes up iav" or the overall eipenditure-budget. Leveraging grant funds to pursue capital projects lhat preserve our irifrastructure and secure our quality of ife is a xeicohponent ot our budget strategy. Enterprise lunds such as Water and Wastewater have strengthened their inancial sustainability by increasing utility.service rates after compfeiing rate sfudies and going thriugh theProp 218 process. Both funds have significant capital outlav budgeted or"i tt
"
n-"rt fir" years but iill now have sufficient reserves over the five-year budget period.

Requests for lnformation
This financial report is designed to provide a general overview of the city of TehachaPi's flnances.for all those interested in ttrem. Ouestions concerning any 6t tt'e information provided in this report or requests for additional information should be addressed to the iity'i Finance Department, at 115 South Robinson Street, Tehachapi, cA 93561.

Sources: (r) U.S. Bureau ol Labor Statastics
e) Califomia Employment Development Department

BASIC FINANCIAL STATEMENTS

THIS PAGE INTENTIONALLY LEFT BLANK
City of Tehachapi
Statement of Net Position
June 30, 2025
Governmental
Activities
Business-type
Activities Total

LIABILITIES
Current Liabilities:

Accounts Payable
Accrued Laabilities
Accrued lnterest Payable
Deposits Payable
Noncurrent Liabilities:

Due within One Year
Due in More Than One Year
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Related to Lease Receivable
Deferred lnflows Related to Pensions
Total Deferred lnflows of Resources

NET POSITION
Net lnvestment in Capital Assets
Restricted for:

Construction and Expansion of Facilities
Highways and Streets
Community Oevelopment
Parks
Unrestricted
Total Net Position
The accompanyrng notes are an integral part of this statement 69 220,310 135,267 99 355.577
2,365 567 9E4,781 3,350 348
$ 20,493,029
4,29A,703
1,269,229
231,039
240.233
636,697
1,984,050
(1,26s,229')
3,870,09E
861,230
446,305
11,439,025
12,167,091
$ 21.129,726
6,282,753
4,',to1 ,137
1,101,463
446,305
15,362,006
50,932,187
s
3,922,981
38,765,096
2,476,019
346,506
4,058
23'1,039
231 ,877
4,77 3,193
'1,27E,353
127 ,863
831
147 ,342
230,367
3,076 226
3,754,372
474,369

4.889
378.381
462.244
7 E49 4't9
062,692 4,860,982 12.923,674
159,893
446,305
65,741
446,305
225 634
'159,893 512,046
42,249,827
3,148,274
446,397
556,2s1
22,528,O49
3,360,041

64.777 ,876
3,360,041
3,',t48,274
446,397
556,251
It) 962.543 (141 , 070) 16,821 473
$ 63,363,292 $ 25,747,02O $ 89,110,312
24 ASSETS
Cash and lnvestments
Receivables (Net of Allowance)
lnternal Balances
Restricted Cash and lnvestments
Prepaids
Lease Receivable
Capital Assets, Not Being Depreciated
Capital Assets, Depreciated, Net
Total Assets

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Related to Pensrons
30,

8. 671,939
City of Tehachapi
Statement of Activities
Year Ended June 30, 2025
Proqram Revenues
Charges
for
Functions/Proqrams Services
Govemmental Activities:

General Govemment
Public Works
Public Safety
Community Development
lnterest
Business-type Activities
Water
Sewer
Airport
Refuse
Transit
s 2,753,77s
8,035,973
8,268,024
3,430,138
23,384
3,324,213
3,269,137
1,'196,4E4
2,570,420
290,00'1
10,650,255
s 33,161, s49
$ 1,042,855
726,317
172,660
53 22,925
90,256
228,641
$ s
3,240,140
Total Governmental Activities 22,511 ,294 1 ,941,885 341 '822 3.240.140 Total Business-type Activities
Total Primary Govemment
3,240,861
2,816,3E8
879,299
2,562,623
3,638
4,082,589
2A2,237
9,522,809 282 237 4,082,589
s 11.464.694 S 624,059 $ 7.322.729
General Revenues:

Property Taxes
Sales and Use Taxes
Property Tax in Lieu
Transient Occupancy Tax
Licenses and Permits
Franchise Tax
Other Taxes
Miscellaneous Revenues
lnvestment Eamings
Gain (Loss) on Disposal
Transfers ln (Out)
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning of Year
The accompanying notes are an integral part ot this statement' Net Position - End of Year
Expenses
Operating Capital
Grants and Grants and
Contributions Contributions
Net (Expense) Revenue and Changes in Net Position
Govemmental
Activities
Business-type
Activities
$ (1,687,995)
(3,979,260)
(7,866,723)
(3,430,0E5)
$ (1,687,995)
(3,979,260)
(7,866,723)
(3,430,085)
(23,384)
$
123 ,384)
(16, 987 ,447\
(83,352)
(452,749)
3,765,404
12,203
(4,',t26\
3 237,380 3,237,380
(16,987,447) 3,237,380 (13,750,067)

2.714,301
I,259.215
1 ,977,139
'1,120,905
395.801
378,600
35s.159
103.778
1 ,134,076
't6,921,674
(65,773)
63,429,065
$ 63,363,292

2.714,301
9,259,215
1 ,977,139
1,120,905
39s,801
378,600
355,159
'194.087
1,309,063
5,040

90.309
174.987
5,040
517,300
4,025,016
21 ,722,004
s 25,747 ,O2O
787.636 17,709 310
85 151 069
$ 89,1 10,312
26 Total
(16,987,447)
(E3,352)
(452,749).
3,765,404
12,203
(4,126)
(517,300)
3,959,243
Special Revenue
General
Fund
Facility
lmpact Fee
Trafflc
Mitigation
Pedestrian
Safety
ASSETS
Cash and Investments
Restricted Cash and lnvestments
Receivables
Due from Other Funds
Prepaids
Advances to Other Funds
Total Assets

LIABILITIES
Accounts Payable
Accrued Liabilities
Due to Other Funds
Deposils Payable
Advances from other Funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues
Total Deferred lnflows of Resources
s 22 794.998 $ - $ 2,818,281 $ '1.046,,t42
$ 14,419,810
231,039
2,610,820
3,293,096
240,233

2.000,000
$ $ 2,818,281 $ 54,903
991,539
$ 415,754 s $ S
324,338
231,039
142,140
982,278
971 131
496,120
2 496 120
2 705,001
'lj24,418
165,387
705,001 165,387
2,240,233
'1,823,503
2,818,281
17,055 130 (2,496 ,120)
Total Fund Balances
Total Liabilities. Deferred lnflows of
Resources and Fund Balances
The accompanying notes are an integral part of thrs statement' 21 1 18,866 2 8'18.281 363)
s 22.794.998 $ - $ 2,818,281 $ 1046.442
27 City of Tehachapi
Balance Sheet
Governmental Funds
June 30, 2025
Capital Proiecls

FUND BALANCES
Nonspendable
Restricted
Committed
Unassigned
(243,363)
(2,496,120)
Capital Proiects
Street
Projects
$ 1,766,020 S 1,434,015 $ 20,49s,029
231,039
4,298,703
3,293,096
240,233
2,000,000
12,360 683,984
$ 1,778,380 $2, 117.999 $ 30,556,100
$ 1,769,905 $ 148,220

22.168
8,475 536,994
120
1, 778.380 707 ,382 7,O77 .431
590,846 1,461 ,2v
590,846 1,461,234
1,356,765
2,240,233
4,175,046
'l,823,503
994) '13, 778,653
819.771 22,017,435
$ 1, 778,380 _$___?J_U€99_ s 100
Other
Governmental
Funds
Total
Governmental
Funds
$ 2,476,019
346,506
1 ,527,747
231,039
28 THIS PAGE INTENTIONALLY LEFT BLANK
City of Tehachapi
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2025
Fund Balances of Governmental Funds
Amounls 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 funds:

Capital Assets
Accumulated Depreciation
Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore, are not reported in the funds:

Leases Payable
Net Pension Liability
Compensated Absences
Accrued lnterest Payable
Amounts for defened inflows and deferred oumows related to the City's Net Pension Liability are not reported in the funds.

Deferred Outflows Related to Pensions
Deferred lnflows Related to Pensions
Long-term assets are not available for current use. Amounts are deferred under the modified accrual basis of accounting.

Net Position of Governmental Activities
The accompanying notes are an integral part of this statement. $ 22,017 ,435
71,152,374
(28.464,297\
(438,250)
(4,123,413\
(443,407\
(4,05E)
2,365,567
(159,893)
461 234
$ 63,363,292
29 City of Tehachapi
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2025

REVENUES
Taxes
Licenses, Permits, and Fines
lntergovernmental
Charges fo. Services
lnvestment Earnings
Miscellaneous Revenues
Total Revenues

EXPENDITURES
Current.

General Government
Public Works
Public Safety
Community Development
Capital Outlay
Debt Service:
lnterest
Principal
Total Expenditures
Excess (Deliciency) of Revenues
Over Expenditures
General
Fund
I 14,698,444
873,457
333, 167
1 ,O73,782
998,843
1 10.123

18.087.8',16 ',100,273 175,014 1,981,548
Facility
lmpact Fee
Traffic
Mitiqation
Pedestrian
Safety
s
1,981 ,548
100,27 3 82,136
92,874
2,552,040
2,994,394
7,893,920
1 ,644,198

1.725.710
'1 1,363
'130,920
2 967
15,226,835
2,860,981
2 967
97,306 17 5,O14
710
255,838
74,928
724,4331
1,325
17,543)
Fund Balances End of Year
The accompanying notes are an integral part of this statement.

14. 16,21 8)
(1,788 524) 97 306 (28,198) 239 620
22 907 394 (2,593,426) 2 846,479 (1 ,051 ,913)
568,930
22 907 390 2 846 479 482 983
$ 21,118,866 _q__GJ99r4r $ 2,818,281 _9__333..39q
30 Special Revenue Capital Proiects
s
1 oTHER FINANCING SOURCES (USES)
Transfers ln
Transfers Out
Tolal Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning, as Previously Reported
Change within Financial Reporting Entity
Fund Balances, Beginning of Year, as Adjusted
(4,649,505)
(2,593,426)
4,362
(2O7,574)
l2o3,212)
Street
Projects
Other
Governmental
Funds
Total
Governmental
Funds
$ $
580 565
856,848
77,120
996,428
18,994
42,356
2,342
$ 15,555,292
950,577
3,891,708
1,275,185

1.134,O77
112,465
22,919,3U
2,595,903
4,559,022
7,893,920
1,674,366
6,631,888
580 565 s94 088
30,168
469,555
43,863
1,564,628
4,436,623
10,350
38 119

4.4 36,623 2,156,683 23,548,818
(3,856,058) (629 ,514)
3 864,268 945,343
457,976)
487 367
24,680
169,039
324 772 (1, 146,814)
(30,010) '1,085,729 23,16/.,249
21 800 590,730)
{8,210) 494 23,|U,249
s- 19,771 _9__4gl_,435-
31 Capital Projects
1 (162,595)
4,890,226
(5,407,526)
3,864,268 (517,300)

8.210

THIS PAGE INTENTIONALLY LEFT BLANK
City of Tehachapi
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 Changes in Fund Balances - Total Governmental Funds $ (1,146,814) Amounts reported for governmental activities in the Statement of Activities are different because Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of these assets is allocaled over their estimated useful lives as depreciation expense.

Capital Outlay
Depreciation Expense
Gain/Loss on Disposal
The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effecl premiums and discounts when debt is first issued, whereas these amounts are defened and amortized in the Statement of Activities.

Payments on Leases
Some revenues reported in the Statement of Activities are not considered available to finance cunent expenditures and therefore are not reported as revenues in lhe governmental funds.

Amounts for deferred inflows and defened outflows related to the City's Net Pension Liability are not reported in the funds. This is the net change in deferred inflows and outflows related to the net pension liability.

Deferred Outflows Related to Pensions
Defened lnfiows Related to Pensions
The amounts below included in the Statement of Aclivites do not provide (require) the use of current financial resources and, therefore, are not reported as revenues or expenditures in governmental funds (net change):

Compensated Absences
Net Pension Liability
Accrued lnterest Payable
Change in Net Position of Governmental Activities
The accompanying notes are an integral part of this statement. $
3,228,982
(2,380,400)

39.374
169,039
43,517
(287,53s)
(6,366)
(79,748)
352,880
1,296
(65,773)
City of Tehachapi
Statement of Net Position
Proprietary Funds
June 30, 2025
Water Sewer Airport
ASSETS
Current Assets:

Cash and lnvestrnents
Accounts Receivable (Net of Allowance)
Water lnventory
Restricted Cash and lnvestnents
Total Cunent Assets
Noncurrent Assets:

Lease Receivable
Advances to Other Funds
Capital Assets, Not Being Oepreciated
Capital Assets, Net ol Accumulated Depreciation
Total Capital Assets (Net of Accumulated
Depreciation)
Total Noncunent Assets
Total Assets

DEFERRED OUTFLOWS OF RESOURCES
Delerred Pension Related ltems

LIABILITIES
Cunent Liabilities:

Accounts Payable
Accrued Liabilities
Accrued lnterest Payable
Due to Other Funds
Customer Oeposils Payable
Compensated Absences - Current
Leases Payable - Cunent
Loans and Bonds Payable - Cunent
Total Current Liabilities
Noncurrent Liabilities:

Compensated Absences
Leases Payable
Net Pension Liability
Loans and Bonds Payable
Total Noncunent Liabilities
Total Liabilities

NET POSITION
Net lnvestment in Capital Assets
Restricted for Construction and Expansion of Facilities U n restricted
Total Net Position
492,632 $
315,007
148
449,559 628,208
861,230
255,231 3,498 695
1,566 026 4,306,334 628,356
446,305
496.120
2,879,396
5 105,600
7,984,996
7,984,996
9,551,O22
449 57 4
91,098
59,073
244
632,455
147,342
43,UO
2,370
5,800
982,O22
600,000
5 737
6,530,737
7 026.857 I536,688
333 191
39,942
44,505
587
716,199
12,695
428 166
38,681
5,688
117 328
101 041
896,522
8,926
246 1 .634.342

98.358

38.175
796,503
800,200
25,157
199,126
1,083,686 733,236 224.283
2,065 708 1979,967 1,858,625
30,012 28 583
446,305
7,146
453 451
7,868,320
'1'17.395
9,090,383
0 839 (1 130, 37 4)
$ 7,904,876 $ 9.752.807 $ 7,960,009
5,569,346
3,131,588
1,051,873
The accompanying notes are an integral part of this statement. 33 DEFERRED INFLOWS OF RESOURCES
Related to Lease Receivable
Pension Related ltems
Total Defened lnflows of Resources
7,959,629
1,130,754
9,090,383
1'1 10,165,044
138,852
15,906
836,328
92,600
1,
30,012 28,583
Refuse
Non-Major
Transit Fund Total
143,9 t7
309,039
636,697
1,984,050
861,230
282.237
116,166
569,122
'1,278,353
127.863
831
1765,349
147 ,342
99, '181
8 058
123,124
392.241 2 .769 3 550.105
22,807 12,214 297,388
54,081
1,83'l ,957
892 800
22 807 12,214 3.076 226
415,048 306,983 6,626 331
446,305
65,741
512,046
3 870.098
7 ,352 015
446,305
496,120
1 1,439,025
12161 091
,1 606,1 16

24.548.541
569 122 282237 31 900 616
377 ,97 5
8,315
5,951
53,139

3.27 5
236,372
1,983
22,528,O49
111,058 3,360,041
016 (24,7 46\ 141,070)
$ 154.074 $ t24.146) $ 25.747 020
34 282,237
s84 741
City of Tehachapi
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
Year Ended June 30, 2025
Water Sewer Airport

OPERATING REVENUES
Charges for Services
Miscellaneous
Total Operating Revenues
Total Operating Expenses
Operating lncome (Loss)

NONOPERATING REVENUES (EXPENSES)
lntergovernmental
lnvestment Earnings
Gain/(Loss) on Oisposal of Capital Assets
lnterest Expense
Total Nonoperating Revenues (Expenses)
lncome (Loss) Before Capital Contributions
and Operating Transfers
Capital Contributions
Transfers ln
Transfers Out
Change in Net Position
Net Position - Beginning of Year
Net Position - End of Year
The accompanying notes are an integral part of this statement $ 3,240,E61 S 2,616,388 $
24 594 49 030
3 265,455 2 865 418
879,299
'1 5,819
895,'t 18
1 ,706,782
1 ,372,3U
238,635
1,195,704
1,761,468
281 ,286
383,44'1
713,393
q? 752
189 586
(294,468)
3,317,801 3 238,458
(373,040)
9,430
19,442
(6,412\
150,423
(14,402)
(30,679)
6,406
(6.698)
22 460 105 342 (492)
(29,886) (267,698) (294,960)
100,388
(4,478)
4,082,5E9
533,215
(120,644)
66,024 4.320.844
7,838,8s2 1 0, 141 , 149
s 7.904.976 $ 9,752,807 $ 7.960.009

OPERATING EXPENSES
Personnel Services
Maintenance and Operations
Depreciation
1,
(52,346)
(3EE,342)
3,639,165
Refuse
Non-Major
Transit Fund
$ 2,582,623
E66
s 3,63E
2,583,4E9 3 638 9,613,1 1E
$ 9.522,E09
90,309

3.596,196
6,397,397
612,673
226.816
2,343,604
83,453
206,548
1 3,069
2, 570.420 290,001 10,606,266
(286,s63) (993 ,148)
282,237 282,237
174,987
5,040
(43.989)
8,728
8,728 2E2,237 418,275
21,797 (4,126\ (s74,873)
8,819
4,082,589
642I22
125,122)
21,797
132,277
4,693
(29,439)
4,025,016
21,722,004
$ 1s4,074 $ (24,746',) $ 25.747 020
36 Total
City of Tehachapi
Statement of Cash Flows
Proprietary Funds
Year Ended June 30. 2025
Water Sewer Airpod

CASH FLOWS FROIU OPERATING ACTIVITIES
Receipts from Customers
Payments to Employees for Services
Payments to Suppliers for Goods and Services
Net Cash Provided (Used) by Operating Activities

CASH FLOWS FROII NONCAPITAL AND RELATED FINANCING ACTIVITIES Cash Receiwd from Other Funds
Cash Paid to Other Funds
lntergovernmental Revenue
Net Cash Provided (Usad) by t{oncapital and Rolated Financing Aclivities

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and Construction of Capital Assets
lnterest Paid
CapitalGrants
Proc€eds from Sale of CapitalAssets
Payments on Lease Obligations
Payments on Long-term Oebt
Net Cash Provided (Used) by Capital and Related Financing Activities $ 3,2s4,517
(1,699,847)
(1,332 436)
$ 2,878,369 $
(1,188,76s)
2 756
994,416
(382,106)
(855,571)
222 234 (370,152) 1.243 261)
100,388
(220,869)
97,306
1120,644)
533,215
(186,282\
(120,481) (23,338) 346 933
(169,431)
(6.625)
(49,171)
(30,752)
(5.342,640)
(6,898)
5,239,608
106,708
(30,269)
(5,501)
(7 69s)
114,138)
1201,756)
CASH FLOWS FROI$ INVESTING ACTIVITIES
lnterest Received
Net Cash Provided (Us€d) by lnvesting Activiti6
Net lncrease (Dscrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of the Year
Cash and Cash Equivalents, End of the Year
Reconciliation of Operating lncome (Loss) to
Net Cash Provided (Used) by Operating Activities:

Operating lncome (Loss)
Adjustments to Reconcile Operating lncome (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation
Changes in Operating Assets and Liabilities.

Decrease (lncrease) in Accounts Receivable
Decrease (lnctease) in Water lnventory
Decrease (lncrease) in Oefened Outflows - Pensions
lncrease (Decrease) in Accounts Payable and Accrued Liabilities lncrease (Decrease) in Compensaied Absences
lncrease (Oecrease) in Net Pensaon Liability
lncrease (Decrease) in Deferred lnflows - Pensions
lncrease (Decrease) in Deposits Payable
TOTAL CASH PROVIDED (USED) BY OPER.ATING ACTIVITIES
The accompanying notes are an integral part of this statement s 2ss.237 $ 3991.327 $ 148
s (s2,34{i) $ (373,040) $ (2%,468)
2U 2a6 s2,752
(15,378) 12,951 99.298

9.430
I 430 150 423
150 423
6 406

6.406
6 065
249.172
144
56,220
39,948
1a.432
(67,087)
(630)
53,543
(298,288)

17.888
(63,892)
(600)
13,386
(142,178)
4,O72
(15,973)
(150)
4 444
37 $ 222 234 s (370.152) $ (243,261)
(105,118) (109,930)
(444,823)
4,435,150
238,635
$ 2,512,965 $
(222.217l,
(2,240,668)
Refuse
Non-MaJor
Transit Fund Total
s 9,643,905
(3,575,209)
(6,700,895)
3,638
182,274)
(212,464\
50,080 (291,100) (632,199)
156,542
134,558
887,451
(527,795),
134.558
291,100 494.214
(s,561,242].
(44.275)
5,239,608
106,708
(37,964)
(119,639)

8.728
(416,804)
174.987
I,728 174,987
58,808 (379,802)
20 1.275 4,886,597
$ 260,083 $ S4, 506.79s
$ 13,069 $ (286,363) $ (993,148)
(7O,s24)
612,673

26.v7
102,936
4,599
(5,916)
1 ,179
123.149
(303,498)
.16,'170
(146,s52)
(1,380)

4.440
$ 5o.o8o $ (2e1 100) $___-l99MI
38 City of Tehachapi
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
Custodial
Funds
Successor Agency
Private-purpose
Trust Fund
ASSETS
Cash and lnvestments
Cash with Fiscal Agent
Other Assets
Total Assets

LIABILITIES
Accounts Payable
lnterest Payable
Long-term Debt
Total Liabilities

NET POSITION
Net Position Held for the Benefit of Others
Net Position (Deficit) Held in Trust for Successor Agency Total Net Position
The accompanying notes are an integral part of this statement. 1,306.570
875
21,546
7,7'16,000
875 7 ,737 ,546
678.524
(6,430,976)
_q______qu3_ _9__-Etrgqg 323,842
355,557
679,399
901,938
4M,632
'lo
City of Tehachapi
Statement of Changes in Net Position
Fiduciary Funds
Year Ended June 30, 2025
Custodial
Funds

ADDITIONS
Contributions:

Taxes and Assessments
lnvestment Earnings
lnterest lncome

DEDUCTIOTITS
Administrative Costs
lnterest on Bonds
Change in Net Position
Net Position - Beginning of Year
Net Position - End of Year
The accompanying notes are an integral part of this statement $
360
6,360
7 ,820
7 ,820
s 1,O40,474
45,337
1,085,81 1
256,'100
265 819
521 ,919
563,892
6 (1,460)
579,984 (b, 994,868)
$ 678,524 430,976)
40 Successor Agency
Privatepurpose
Trust Fund
Total Addrtrons
Total Deductions
City of Tehachapi
Notes to Financial Statements
Year Ended J une 30, 2025
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A) Reporting Entity
The City of Tehachapi was incorporated August '13, 1909 under the general laws of the State of California.

The City operates under a Council/City Manager form of govemment and provides the following servtces. public safety (police and fire); community services; public works, general administrative services, and capital improvements.

As required by accounting principles generally accepted in the United States of America, these financial statements present the government and its component units, entities for which the government is considered to be frnancially accountable. Blended component units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are combined with data of the pnmary government.

The following is a brief overview of the component units included in the accompanying financial statements of the City.

Tehachapi City Financing Corporation (TCFC) - The Tehachapi City Financing Corporation was formed on September 26, 1990, as a Nonprofit Public Benefit Corporation to render financial assistance to the City by issuing debt instruments. The members of the City Council serve in the capacity of the Board of Directors for the TCFC. The City has operational responsibilig for the TCFC and has a financial beneriuburden relationship. The TCFC is included as a blended component ofthe City.

The TCFC does not issue separate financial statements.

B) Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide fnancial statements (i.e., the Statement of Net Position and the Statement ofActivities) report information on all of the nonfiduciary activities of the primary govemment and its component units. For the most part, the effect of inter-fund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovemmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segmenl are offset by program revenues. Direcl expenses are expenses lhat are clearly identifable with a specific program, projecl, funclion or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or direclly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

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

The govemment-wide fnancial statements are reported using the econom,b resources measuremenl focus andthe accrual bas is of accounting, as arethe proprietary and fiduciaryfunds financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incuned, regardless of the timing of related cash flows.
41 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
42 1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the providers have been met.

Governmental fund linancial statements are reported using the cuffent financial ,esources measurcment focus and lhe modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within lhe cunent period or soon enough thereatter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the cunent fiscal period.

Expenditures generally are recorded when a liability is incuned, as under accrual accounting. However, debt service expenditures, as well as exp€nditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Taxes, intergovemmental revenues, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and are therefore recognized as revenues ofthe current fiscal period.

Only the portion of special assessments receivable due within the cunent fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items ale considered to be measurable and available only when cash is received by the City.

The City reports the following major governmental funds:

The Generat Fund is the govemment's primary operating fund. lt accounts for all financial resources of the City, except those required to be accounted for in another fund. fhe Facility lmpact Fee SpecialRevenue Fundis used to accountfor the restracted funds received to construcl City facilities.
fhe TraffE Milgation Speciat Revenue Fund is used to account for development impact fees restricted for traffic mitigation.

The pedest an Safety Capital Projects Fund is used to account forthe financial resources and expenditures necessary for various road and pedestrian safety projects.

The Street Projects Capital Projects Fund is used to account for the financial resources and expenditures necessary for various street proiects.

The City reports the following major proprielary funds:

The Water Utitity, Sewer Utility, Aiport and Retuse Funds arc used to account for those operations that are financed and operated in a manner similar to a private business enterprise where the intent of the City Council is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges.

Additionally, the City reports the following fund types:
fhe Custodial Funds arc used to account for funds that are custodial in nature and use the economic resources measurement focus. The City accounts for transactions of its special assessment districts and community facilities districts as custodial funds.

The Successor Agency Pivate-pu@ose Trust Fund is issued to account for the dissolution of the former Tehachapi RedeveloPment Agenry.

As a general rule, the efiect of inter-fund activity has been eliminated from lhe govemment-wide financial statements. Exceptions to this general rule are payments in-lieu of taxes and other charges between the City's water and sewer function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concemed.

City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT AccOUNTING PoLICIES - Continued Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributionsi and 3) capitalgrants and contributions, including special assessments. lnternally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include alltaxes.

Proprietaryfunds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connectaon with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Vvtten both restricled and unrestricted resources are available for use, it is the City's policy to use restricled resources first, then unrestricled resources as they are needed.

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 during the reporting period. Actual results could differ from those estimates.

C) lmplementation of Governmental Accounting Standards Board (GASB) P.onouncements The Governmental Accounting Standards Board has issued the following Statements:

Statement No. 103, "Financial Reporting Model lmprovements." The requirements of this Statement are effective for the fiscal year that ends June 30, 2026.

O) Assets, Liabilities, and Net Position or Equity
Deposits and lnvestments
For purposes ofthe Statement of Cash Flows, the City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short{erm investrnents with original maturities of three months or less ftom the date of acquisition.

The City follows the practice of pooling cash and investments of all tunds except for funds held in separate trust agreements. lnterest income earned on pooled cash and investments is allocated monthly to the various funds based on the ending cash balances. lnterest income from cash and investments of funds excluded ftom pooled cash is credited directly to the related fund. lnvestments are stated at fair value (the value at which an investment could be exchanged in a current transaclion between willing parties, other than in a forced or liquidation sale).

Receivables and Payables
Activity between funds that are representative of lending/bonowing arrangements outstanding at the end of the fiscalyear are referred to as either "due to/from other funds' (i.e., the cunent portion ofthe interfund loans) or'advances to/from other funds' (i.e., the noncunent portion of the interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." 43 Statement No. 104, "Disclosure of Certain CapitalAssets." The requirements ofthis Statement are effective for the fiscal year that ends June 30,2026.

City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Any residual balances outstanding between the governmental activities and business-type activities are reported in the govemment-wide financial statements as "internal balances.' Advances between funds, as reported in the fund financial statements, are offset by a nonspendable tund balance account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All trade and property tax receivables are shown net of allowance for uncollectibles.

Prepaid ltems
Certain payments to vendors ref,ect costs applicable to future accounting periods and are recorded as prepaid items in both govemment-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed, rather than when purchased.

Restricted Assets
Amounts shown as reslricled assets have been restricled by either bond indenture, by law, or contractual obligations to be used for specified purposes, such as servicing bonded debt and construclion of capital assets. lncluded in cash and investments are restricted cash assets of $404,575 held by the various bond trustees and fiscal agents, $231,039 held for customer deposits, $255,237 and $3,498,695 held for capital improvements and customer deposits in the Water and Sewer Funds, respectively, and $116,166 held for litter milgation in the Refuse Fund.

Capital Assets
capital assets, which include property, plant, equipment, and infrastructure assets (e.9., roads, bridges, sidewalks, and similar items) are reported in the applicable govemmental or business-type activities columns in the government-wide financial stalements. Capital assets are defined by the City as assets with an initial, individual cost of more than $1O,0OO and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or construcled. Donated capital assets received prior to the implementation of GASB 72 were recorded at tair value on the date of donation. Donated capital assels received subsequent to the implementataon of GASB 72 are recorded at acquisition value as of the date received. 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. Major outlays for capital assets and improvements are capiialized as projects are constructed.

Capital assets of the City are depreciated using the straight-line method over the following estimaled useful lives.

Buildings 15 - 50 Years
Machinery and Equipment 5 - 20 Years
Structures and Other lmprovements 20'40 years
Lease obligations of the Proprietary Funds are accounted for in the year of inception as a liability of the fund The related asset is recorded as an asset of the fund.
44 Taxes are levied on July 1 and are payable in two installments on Decemb€r 10 and April 10. The County bills and collects the property taxes and remits them to the City in installments during the year. City property tax revenues are recognized when levied to the extent that they result in cunent receivables. The County is permitted by State Law (Proposition 13) to levy taxes at 'l % of tull market value (at time of purchase) and can increase the property tax rate no more lhan 2o/o per year. The City receives a share of this basic levy.

City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
1) REPORTING ENTITYAND SUMMARYOF SIGNIFICANT ACCOUNTING POLICIES - Continued Compensated Absences
It is the Caty's policy to permit employees to accumulate earned but unused vacation and sick pay benetlts.

Employees over the age of 55 who retire from the City are paid out 500/6 of their accrued sick leave. All vacation pay and 50% of available sick hours for employees' over age 55 are accrued when incuned in the government-wide and proprietary funds financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations.

Long-term Obligations
ln the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using lhe effective interest method. Bonds payable are reported net of the applicable bond premium or discount. ln the fund financial statements, governmental fund types recognize bond premiums and discounts, 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 discounls on debt assuances are reported as other linancing uses. lssuance costs, whether or not withheld from the actual debt proceeds received, are reporled as debt service expenditures.

Net Position
ln the government-wide financial statements, net position is classified in the following categories:

Net investment in the capital assets describes the portion of net position which is represented by the current net book value of the City's capital assets, less the outstanding balance of any debt issued to llnance these assets.

Resrnbled describes the portion of net position which is restricled as to use by the terms and conditions of agreements with outside parties, governmental regulation, laws, or other restriclions which the City cannot unilaterally alter.

Unrestricted describes the portion of net position which is not restricled to use.

Oeferred Outflossrlnfl ows of Resources
ln addition to assets, the statemenl of financial position will sometimes report a separate section for defened outflows of resources. This separate financial statement elemenl, defened oulflows of /esou/Des, represents consumption of net assets that applies to future period(s) and so will not be recognized as an outflow of resources (expense) untilthen. The City reports deferred outflows related to pensions. ln addition to liabilities, the statement offinancial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement elemenl, detened inflows of resources, represents an acquisition of net assets 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 certain items, which arise only under the modified accrual basis of ac,counting, which qualify for reporting in this category. Accordingly, unavailable revenue is reporled in the governmentalfunds balance sheet. The govemmental funds report unavailable revenues from property taxes, special assessments, grant receivables, and other miscellaneous receivables. These amounts are defened and recognized as an inflow of resources in the period that the amounts become available. ln addition, the City reports deferred inllows related to pensions 45 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
l) REPORTING ENTITYAND SUMMARYOF SIGNIFICANT ACCOUNTING POLICIES - Continued Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.9. restricted bond or grant proceeds) and unrestricted resources. ln order to calculate the amounts to report as restricted net position and unrestricted net position in the statement of net position, a 11ow assumptaon must be made about the order in which the resources are considered to be applied. lt is the City's policy to consider restricted net position to have been depleted before unrestricted net position.

Fund Balances
Fund balances in governmental funds are reported in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). ln order to calculale lhe amounts to report as restricled, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. lt is the City's policy to consider restricted fund balance to have been depleted before using any of the components of unrestricled fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

The following classifications describe the relative strength of the spending constraants placed on the purposes for which resources can be used:

Nonsoendable Fund Balance - Amounls that cannot be spent either because they are in nonspendable form or are required to be maintained intact.

Restricted Fund Balance - Amounts that are constrained to specitic purposes by state or federal laws, or externally imposed conditions by grantors or creditors.

Committed F und Balance - Amounts constrained for a speciflc purpose by City Council resolution. lt would require the same action by City Council to remove the constraint. The City's commatted fund balance includes:

General Fund Emeroencv Continoencv - The City's General Fund balance committed for emergency contingencies has been set by resolution and is for specific uses listed as the declaration of a state or federal state of emergency or a local emergency.

Assioned Fund Balance - Amounts that are constrained by the City Council's intent to use specified financial resources for specific purposes, but are neither restricted nor committed. The City's fund balance policy delegates the authority to assign amounts to be used for specific purposes to the Finance Director for the purpose of reporting these amounts in the annual financial statements.

Unassiqned F und Balance - This classification includes the residual balances of the government's general fund and includes all spendable amounts not contained in other classifications. ln other funds, the unassigned classification is used only to report deficit balances resulling from overspending for specific purposes for which amounts had been restricted, committed or assigned 46 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Leases
Lessee: The City is a lessee for noncancellable leases of equipment. The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements and the proprietary funds. The City recognizes Iease liabilities with an initial, individual value of $50,000 or more.

At lhe commencement of a lease, the City initially measures the lease liability at the present value of payments expecled to be made during the lease term. Subsequently, the lease liability is reduced by the principal porlion 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. . The City uses the interest rate charged by the lessor as the discount rate. V\rhen 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.
' The lease term includes the noncancellable period of the lease. Lease payments included in the measuremenl of the lease liability are composed of llxed payments and purchase option price that the Crty rs reasonably certain to exerclse.

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.

Lessor: The City is a lessor for a noncancellable lease of certain property for communications facilities.

The City recognizes a lease receivable and a deferred inflow of resources in the Airport enterprise fund and the government-wide linancial statements. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term.

Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease paymenls received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key estimates and judgments include how the City determines ('1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term. and (3) lease receipts . The City uses its estimated incremental borrowing rate as the discount rate for leases' . The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasuremenl of its lease. and will remeasure the lease receivable and deferred intlows of resources if certain changes occur that are expected to signiflcantly affect the amount of the lease receivable. 47 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 presenl value, (2) lease term, and (3) lease payments.

City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
The lease of the property for communications facilities is for 25 years and the City will receive annual payments ranging from approximately $30,000 to $35,000. The City recognized $31,848 in lease revenue, including interest revenue durjng the current fiscal year related to this lease. As of June 30, 2025, the City's receivable for lease payments was $446,305. Also, the City has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term. As of June 30, 2025, the balance of the deferred inllow of resources was $446,305.

Pensions
For purposes of measuring the net pension liability and defened outflows/inflows of resources relaled to pensions, and pension expense, information about the fiduciary net position of the City of Tehachapi's California Public Employees' Retirement System (CaIPERS) plans (Plans) and additions to/deduclions from the Plans'fiduciary net position have been determined on the same basis as they are reported by CaIPERS.

For this purpose, beneft payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. lnvestments are reported at fair value. 2) DETAILED NOTES ON ALL FUNDS
A) Cash and lnvestmenB
The City's cash and investments consisted ot the following at June 30, 2025:

Demand Deposits
Petty Cash
ln\rstments
Total Cash and ln\€slments $ 26,861,275
The city,s deposits and investments are reflected in the basic tinancial statements as follows Go\€mmental
ActiUties
Business-type Fiduciary
Acti\ities Funds Total
Cash and ln\€stments
Restricted Cash and ln\€stments
Total Cash and ln\Estments
$ 20,493,029 $
231,039
636.697
3,870,098
$ 22,35s,506
4,505,769
$ 20,724,068 $ 4,506,795 $ 1,530,412 $ 26,E61,275
Deposits
Custodial Credit R sk - Custodial credit risk is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City's deposit policy requires deposits to be covered by the federal depository insurance and collateral having a market value of 110o/o ofthe uninsured deposit. The califolnia Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: the California Government Code requires thal a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 1lo% 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. 48 1) REPORTING ENTITY AND SUMMARY oF SIGNIFIGANT AccoUNTING POLlclEs - continued s 1,091,604
2,016
25,767,655
$ 1.225,780
404,632
City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
2) DETAILED NOTES ON ALL FUNDS - Continued
As of June 30, 2025, the City's deposits (bank balances) were insured by the Federal Depository lnsurance Corporation or collateralized as required under California Law. lnvestments
As of June 30, 2025, the City had the following investments:

Remaining Maturity (in Nlonths)
ln\€stment Type
'12 Months
or Less
13 lo 24
Months
25 to 60
Months Fair Value
$ 168,744 $ $ $
747 ,660
1 ,4E0,713
'10,437,850
2,461,775
1,000,335
2,005,715
5,476,393
168,744
1,000,335
3,739,352
7,959,599
10,437,850
2,46',t,775
$ 15.296,742 $ 1,988,470 $ E,482,443 $ 25,767,655
Aut h orize d I nv e st m e nts
The investments listed above are managed by the City's Finance Director and fiscal agents (bond trustees acting in accordance with bond covenants). lnvestments managed by the City's Finance Director are invested in accordance with the City's investment policy. lnvestments managed by bond trustees are invested in accordance with provisions of the respective bond agreements, rather than the general provisions of the Califomia covernment Code or the City's investment policy. The City's Finance Director has direct oversight over the City's pooled investment fund which covers cash and investments of the City's governmental funds, proprietary funds, and custodial funds which are invested in accordance with the City's anvestment policy. The investment policy generally complies with California Government Code Section 53601 and its primary detail is as follows:

Authorized
lnvestment Type
Maximum
Maturity
Maximum
Percentage
of Portfolio
Maximum
lnvestment
ln One lssuer
Minimum
Ratings
U.S. Agencies
U.S. Treasury Bills, Notes and Bonds
Local Agency lnvestment Fund (LAIF)
Guaranteed lnvestment Contract
Certificates of Deposit (CDs)
Money Market Mutual Funds
Trust lndenture
5 years
5 years
N/A
N/A
5 years
N/A
N/A
1 00%
100%
None
None
3jvo
150/o
None
1 00%
100vo
None
None
'100%
None
None
None
None
None
AA
A
None
None
lnvestments with fiscal agents represent investments held by the bond trustee. The City and its investment advisor select the investments under the terms of the applicable trust agreement, directs the bond trustee to acquire the investments, and the bond lrustee then holds the investments on behalf of the City and/or its component units. Proceeds of bonds administered by bond trustees are also generally covered under the city Treasurer's investment policy; however, specific provisions of each issuance are usually used in managing such investments.
49 Local Agency ln\€stment Fund
U.S. Treasury Notes
U.S. Agencies
Certificates of Deposit
CAMP
CSJVRMA ln\estment Pml
Total
985,977
1,002,493
2) DETAILED NOTES ON ALL FUNDS - Continued
/nterest Rale R,sk
lnterest 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. lnformation about the sensitivity of the fair values of the City's and its component units' investments to market rate fluctuations is provided in the table above that shows the distribution by maturity. The City's investment policy generally complies with the State Government Code with respect to allowable investment instruments as a means of managing its fair value losses arising from changing interest rates. Guaranteed investment contracts are investments held by fiscal agents (bond trustees) and are restricted for construction projects and debt service.

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

Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy or debt agreemenls, and the Standard and Poor's rating as ofyear-end for each investment type.

Rating as of Year End
ln\€stment Type
Total
ln\,estments
Minimum
Legal Rating
Not Required
to be Rated Unrated
Local Agency ln\€stment Fund
U.S. Treasury Notes
U.S. Agencies
Certificates of Deposit
CA|\ilP
CSJVRIVIA ln\Estment Pool
Total
$ 168,744
1,000,335
3,739,352
7,959,599
10,437,850
2,46't ,775
N/A
N/A
N/A
N/A
N/A
N/A
$ $ 168,7,14
1,000,33s
3,739,352
7,959,599
10,437,850
2,46't,775
$ 25,767,655 $ 3,739,352 $ 1,000,335 $ 21,027,958
Concentration of Credit Risk
Concentration of credit risk is the increased risk of loss if the City has a signiflcant amount of investments with a single issuer. ln accordance with the lnvestment Policy of the City, none of the investments categories listed exceeded the maximum allowable percentage of its portfolio. The City's investment policy contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. lnvestments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 57o or more of total City investments included the Federal Farm Credit Bank investments at 1 0.65%.

Custodial Credil Risk
For an investmenl, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Custodial credit risk for LAIF is not determinable. 50 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
2) DETAILED NOTES ON ALL FU Ds-Continued
Fair Value
The city categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles.

The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assetsi Level 2 inputs are significant other observable inputs, Level 3 inputs are significant unobservable inputs. ln\€stment Type Total Le\el '1 Le\el 2 Le\rel 3
U.S. Treasury Notes
U.S. Agencies
Certifcates of Deposit
Total
$ 1,000,335 $ 1,000,335 $
3,739,352
7,959,599
$
3,739,352
7,959,599
lnvestmenl in State lnvestment Pool
The City is a voluntary participant in the Local Agency lnvestment Fund (LAIF) that is regulated by California Government Code Section 16429 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 flnancial 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. lnvestment in CSJVRMA lnvestment Pool
The City is a voluntary participant in the Central San Joaquin Valley Risk Management Authority lnvestment pool (CSJVRMA) that is regulated by California State Code section CGC 5360'1. The fair value of the City's investment is based on the City's pro-rata share of the fair value of the entire portfolio. The balance available for withdrawal is based on the records maintained by CSJVRMA, which is recorded on an amortized cost basis.

Califomia Asset Management Program
The City invests in this investment trust, which is similar to a money market mutual fund. The fund invests primarily in certiflcates of deposit, commercial paper, and u.s. Government and Agency obligations. The City is a voluntary participant in the investment pool.

The CAMp Cash Reserve Portfolio (the Pool) is exempt from registration with the Securities and Exchange Commission (SEC) under the lnvestment Company Act of 1940, but operates in a manner consistent with sEC Rule 2a-7,',Money Market Funds," of that Act. Accordingly, the Pool meets the definition of a"2a7- like pool,, set forth in GASB Statement No. 31, "Accounting and Financial Reporting for Certain lnvestments and External lnvestment Pools."
51 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
The City has the following recurring fair value measurements as of June 30, 2025:

Fair Value Hierarchy
$ 12,699,286 $ 1,000,335 $',11,698,951 S -
City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
2) OETAILED NOTES oN ALL FUNDS - continued
VVhile the Pool itself is exempt from SEC registration, the Pool's investment advisor and administrator, PFM Asset Management, LLC, is registered with the SEC as an investment advisor under the lnvestment Advisors Act of 1940. PFM Asset Management, LLC has also filed a notice with the California Department of Corporations, as well as various other states, as an investment advisor under state securities laws. ln addition, the Pool also meets the definition of "Municipal Fund Security" outlined by Municipal Securities Rulemaking Board (MSRB) Rule 0-12, therefore contracts with prospective investors relating to shares of the Pool are conducted through PFM Asset Management's wholly-owned subsidiary, PFMAM, lnc., a broker-dealer which is registered with the SEC and MSRB, and is a member of the Nalional Association of Securities Dealers (NASD). The Pool also flles an income tax return annually with the lnternal Revenue Service, though the net income ol the Pool is generally exempt ftom federal income tax.

B) Receivables
Receivables as of year-end for the City's individual major funds and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows:

General
Fund
Pedestrian
Satuty Fund
Street
Projects
Govemmental AcUvities Fund Total
Taxes
Grants
lnterest
Others
Total
$ 1,630,615 $ $ $ 663,984 $ 2,314,599
- 1,003,899
- 75,424
- 9U,777
991 ,539 12.360
75,428
904,777
$ 2,610,820 $ 991,539 $ 12,360 $ 683,9E4 $ 4,298,703
Water
Fund
Se\,l/er
Fund
Airport
Fund
Refuse
Fund Total
Nonmajor
Transit
Fund Budness-type Activities
Se^,ice Fees
Grants and Other
Total
$ 413,308 $
36,251
$ 308,976 S
63 $ 1,037,039
946,951
314.815 S
192 628 208 2A2,237
s 449.559 $ 315,007 $ 628,208 $ 309,039 $ 282,237 $ 1,984,050 Other
Go\€mmental
Funds
City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
2) DETAILED NOTES ON ALL FUNDS - continued
C) Capital Assets Detail
The following represents the Capital Asset activity for the 2024-25 liscal year Governmental Activities:

Capital Assets, Not Depreciated:

Land
Construction in Progress
Total Capital Assets, Not Depreciated
Capital Assets Being Depreciated:

Buildings and lmpro\ements
Machinery and Equipment
lmpro\cments other than Buildings
lnfrastructure
Parks
Right-to.use Leased lnfi-astructurc
Right-to-use Leased Vehicles
Total Capital Assets, Depreciated
Less Accumulated Depreciation.

Buildings and lmpro\ements
Machinery and Equipment
lmproEments other than Buildings
lnf'astructure
Parks
Right-to-use Leased lnhastructure
Right-to-use Leased Vehicles
Total Accumulated Depreciation
l.let Capital Assets, Oepreciated
Go\Emmental Acti\ities Capital Assets
Beginning
Balance Additions Deletrons Transfers
Ending
Balance
$ 1,382,386 $
3,860,172
$
2 306,905 3,626 442)
$ 1,382,386
2,540,595
$
5,242,558 2,306,905 (3,626,442) 3 922,981
8,990,33
3,940,639
662 192
48,576,793
277.862
162.7!$
192 7
826,307

2.651,291
8,990,343
4,888,882
66'2.'192
49,403,100
2,929,153
'162.7*
192. 7
1,070,961 Q55,n8) 133,060
52,803,552 4,548,559 Qss,n8) 133,060 67 229,393
(4,559,s83)
(2.502.62s)
(130,154)
(18,793,461)
( 1 11 ,138)
(42,641)
(106,377)
e72,n6l
(399,2s4)
(37,595)
(1,616,862)
(6,947)
(14,335)
(32,631)
250 524 (88,432)
(4,832,359)
(2,739.787)
(167,759)
(20 410,323)
(118,085)
(56,976)
139 008
i.26.245,989) (2, 380,400) 250.524 (88 432) (28,4U,297) 168.159 (5,254) 44,62A 38 765,096 36 557 563
$ 41,800.121 $ 4,475,@1 s i: ogt.zssr $ i14.628 $ 42,688 077 Depreciation expense of $2,380,400 was charged to the following functions/programs in the statement of Activities of the primary government

2. Govemmental Activities:

General Go\€mment
Public Works
Public Safety
Community De\€lopment
Total
S u,743
129,756
400,327
1,765,574
s 2,380,400
53 2) DETAILED NoTES oN ALL FUNDS - Continued
&rdnes.type Activitiesr
Capital Assets, Not Depreciated
Land
Water Rights
Construction in Pr€ress
Total Capital Assets, Not Depreciated
Capital Assets Being Depreciated:

Buildings and lmprot€ments
Machanery and Equipment
lmpro\emerts other than Buildings
Right-to-use Leased Vehicles
Total Capital Assets, Depreciated
Less Accumulated Depreciation:

Buildings and lmproEments
Machinery and Equipment
lmpro\€ments othe. than Buildings
Right-to-use Leased Vehicles
Total Accumulated Depreciation
tlet Capital Assets, Depreciated
Business{ype Acti\ities Capital Assets
Beginning
Balance Additions Deletrons Transfers
Ending
Balance
$ 756,043 S
2,A65,474
3,459,102 4,415.4$
(42,638) $
('14,4021
$ 713,405
2,86€,474
7,850,146
S
7,080,619 4,415,46 {57,040) '11 439,025
17,070,',l17
'1,438,332
'14.2@,2U
165.308
216.752 (89,380)
(93,534)
(133,060)
17,070,117
1A32,U4
't4,209,2U
71,674
32 883,041 216,752 (183,014) (133,060) 32.783.719

88.432
10,893
120,275.401) (6 12.673) 183,014 88,432 (20,616,628)

12.607 UO (395,921) (44,628\ 12j67,@1
$ 19,688,259 $ 4,019,525 $ (57,040) S (44,628) $ 23,606,116 Depreciation expense of $612,673 was allocated to the enterprise funds as follows (11,216,196)
(1,1s7,825)
(7,746,965)
(1s4,415)
(2s4,017)
(4s,906)
(301,857)
89,380
93,634
(11 ,470,213)
(1,025,919)
(8,048,822)
171.674)
Budnesstype Activi6es
Water
Sewer
Airport
Total
General Fund
Pedestrian Sabty Fund
Street Projects Fund
Other Go\€mmental Funds
Water Fund
Airport Fund
NorFmajor Transit Fund
Total
238,635
281,286

92.752
$ 612,673
D) lnterfund Receivables, Payables and Transfers
The composition of amounts due tolfrom other funds at June 30, 2025 is as follows $ 3,293,096 $
982,274
8,475
536,994
632,455
896,522
236.372
s 3,293,096 $ 3,293,096
The amount due to the General Fund from the Water Fund will be repaid over the next few years as new water rates go into effect as of July 1 , 2025. The amount due to the General Fund from the Airport Fund, due to certain capital projects and operating delicits, will be repaid over the next few years with hangar lease revenue and other revenues.

City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
$
Recei\able
Fund
Payable
Fund
54 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
2) DETAILED NOTES ON ALL FUNOS - Continued
Advances to/from consist of the following at June 30, 2025 Payable
Fund
Recei\€ble
Fund
2,4 ,120
$ 2,496,120 $ 2,496,12O
The General Fund and Sewer Fund have advanced $2,000,000 and $496,120, respectively, to the Facility lmpact Fee Fund to construct the C(y's new police facility. These advances are expected to be repaid over the span of many years as the City collecls future facility impact fees. lnterfund transfers for the year ended June 30, 2025 are as follows General
Fund
Traffc
N4itigation
Fund
Sabty
Fund
othe.

Go\emmental
Funds
Enterprise
Fund
Sewer
Enterpdse
Fund
Pedeslrian
Transhrs ln
General Fund
Trafic Mitigation
Pedestdan Sabty Fund
Street Proiecls
Other Go\cmmental Funds
Water Enlerprise Fund
Airport Enterprise Fund
Non-ma,or Transit Enterprise Fund
Tolal
3,215,490
916,715
50,194
533,21s
8,819
203,063
4,511
1,325
45,715
10,936
Total
s s s
4,362
13,181
1,174- 70,450
50,19,{
71,924

1.$2
1,325
3,864,268

9.{5,343
100,388
8,819
s s
s,t,72,t,433 $ 207,574 $ 17,5,13 I ,t57.976 $ ,r.,(76 t 120,61,1 S 5,532.648 General Fund transfers include approximately $9't7,000 to non-major governmental funds to cover temporary operating deficits, $3,215,490 to the Street Projects Fund to fund various street projecls, $50,'194 to the Water Fund to pay for certain capital asset acquisitions, $533,215 to the Airport Fund to subsidize operations and $8,8'19 to the Non-major Transit Fund, also to subsidize operations.

Other notable transfers include 5203,063 being transfened from the Traffic Mitigation Fund to the Street Projects Fund to fund various projects, and $445.715 transferred from Other Governmental Funds to the Street Projects Fund for various proiects.

E) Other Assets
Other Assets reported in Custodial Funds at June 30, 2025 consist of 5355,557 in foreclosure receivables.

The City has provided infrastructure improvements to various property owners in exchange for special taxes on thoje properties. Non-payment of these taxes has occurred on selected properties and the City has taken steps ioward foreclosure. Funds have been expended during the foreclosure process that are expected to be received at completion of the foreclosure action. The date on which the City will receive reimbursement is currently uncertain.

The General Fund has loaned monies to the other funds listed above to cover operating cash deficits.

These amounts are expected to be paid back in the following fiscal year.

General Fund
Sewer Fund
Facility lmpact Fee Fund
Total
s 2,000,000 $
496, 120
Transfurs Out
City of Tehachapi
Notes to Financial Statements
Year Ended J une 30, 2025
2) DETAILED NOTES ON ALL FUNDS - Continued
F) Long-term Debt
Govemmenta I Activities:

Loans from direct bonowirgs:

Leases
lGt Pension Liability
Compensated Absences
Tolal Governmental Aclivities
Beginning
Balance Additions Deletlons
Ending
Balance
79,7 4A
$ 5.447,241 $ 79,748 S 521,919 $ 5,005,070 g 231,8n
Due Within
One Year
s 607,289 S
4,476,293
363,659
169,039 $
3s2,880
438,250 $
4,123,413
443.407
74,ffil
't57.210
Buinestype Actvities:
1998 Sewer and Water COP
Loans from direct bonowings.

Water Resources Control Board Loan
Leases
Total dircct
Net Pension Liability
Compensated Absences
Tota I Bud nes.type Activities
$ 161,200 $ $ 8.500 $ 152,700 $ 9,100
974,367
100,103
111,'139
37,964
863 228
62,'139
114,O28
8,058
1,O74,470
1,978,909
350,399
149.103
146,952
122,06
46,170 99,181
$ 3.564,978 I 46,170 $ 304,5s5 $ 3,306,593 $ 230,367
Fiscal Year Ending
June 30,
Business-type
Acti\ities Total
2026
2027
20?E
2029
2030
2031
2032
Totals
Less: lnlerest
Present Value
S 93,101 S
82,008
81,987
70,853
66,094
68,072
68,048

9.924 $
9,919
9,915
9,911
9,906
9,901
9,696
103,025
91 ,927
91,902
80,764
78,000
77 ,973
77, 4
$ 532,163 $
(93,913)
s 43E,250 $ 62,139 $ s00,389
69,372 $
(7 .233)
601.535
(101 ,146)
56 Long{erm liability aclivity for the year ended June 30, 2025, was as follows:
925,367
1 831,957
396 569
Leases Payable
The City, at various occasions, enters into lease agreements that qualiry as lease liabilities for accounting purposes and, therefore, have been recorded at the present value of their future minimum lease payments as of the inception date. The amount of lease assets reported in govemmental actavities, net of accumulated amorlization, is $159,739. The following represents the future lease payments to be made:

Go\€mmental
ActiUties
City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
2) DETAILED NOTES ON ALL FUNDs - Continued
1998 Sewer & Water COPs
ln July 199E, the City obtained loans from the USDA Rural Development totaling $289,900. The sewer Fund received $103,000 and Water Fund received $186,900. The loans r rere made by purchase of Certificates of Participation (coP), which were issued by the Tehachapi city Financing corp. (Financing corp.) with an interest rate of 4.5%, to finance the building of a nerv sewer line to connecl to the recently annexed Ashe fad.

The loan is a direct borrowing from the USOA. The COPS are secured by installments payments due from the City. The annual debt service requirements to maturity for the 1998 Sewer and Water COPS are as follows:

Fiscal Year Ending
June 30, Pnncipal lnterest
9,100 s
9,300
9,700
'10,100
10,600
60,600
43,300
2026
2027
2028
2029
2030
2031-2035
2036-2038
Totals
5,871 $
6,462
6,044
5,607
5,',t52
18,',tl2
3,955
15,971
15,762
15,744
15,707
15,752
78,772
47 ,255
5 Water Resources Control Board Loan
$ 152,700 $ 52,263 $ 204,963
lnterest Total
ln september 2011, the city received a loan from the california state water Resources Control Board for up to $2,.123,696 to be used for the wastewater Treatment Plant Expansion Project. The loan matures over 20 years with an interest rate of 2.6%.

The debt service payments are payable solely from net revenues of the sewer Enterprise Fund. The loan is a direct borrowing from the State Water Resources Control Board. The loan includes provisions that in theeventofdefault,alloutstandingamountsmaybecomeimmediatelydueandpayable.Theannualdebt service requirements to maturity are as follows:

Fiscal Year Ending
June 30, Principal
2026
2027
2028
2029
2030
2031
2032
Totals
$ 114.028 $
116.993
120,035
'123,156
126,358
129,643
'1 33,01 5
22,444 $
19,479
16,437
13,316
'10,1 '14
6,829
3,458
1 ,472
136,472
136,472
136,472
136,4?2
136,472
136,473
S 863.22as92,077s955,305
Total
City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
2) DETAILED NOTES ON ALL FUNDS - Continued
Long-term Liabilities - Fiduciary Funds
The following is a schedule of changes in long-term debt ofthe Successor Agency for the fiscal year ended June 30, 2025.

Beginning Ending Due Within
Succesor Agency Debt: Balance Additions Deletrons Balance One Year 2017 Tax Allocation Bonds $ 8,237,000 $ - $ 521,000 $ 7,716,000 $ 534,000 Tota I Succes6or Agency Debt $ 8,237,000 $ - $ 521,000 s 7,716 000 $ s34,000 ln June 2017, the Successor Agency to the Tehachapi Redevelopment Agency issued $5,387,000 and $5,892,000 of Tax Allocation Refunding Bonds, series 2017A and 20178, to refund the 2005 and 2007 Tax Allocation Bonds of the former Tehachapi Redevelopment Agency. The 2017 Series A Bonds mature in amounts ranging from $151,000 to $377,000 annually through 2036, with interest payments ol 3.M"/", payable semi-annually on June 1 and December 1. The 2017 Series B Bonds mature in amounts ranging from $122,000 to $386,000 annually through 2038, with interest payments of 3.360/0, payable semi-annually on June 1 and December 1. The Bonds are payable as to principal and interest exclusively from the pledged tax revenues of the Successor Agency. Future debt service requirements are as follows:

Fiscal Year Ending
June 30, Principal lnterest Total
$ 783,604
781,448
777 ,773
780,478
781,462
780,761
7E3,323
7U.097
776,234
785,568
77E,065
397 ,320
392,4E5
7,716,000 s 1,666,618 $ 9,382,61E
2026
2027
2028
2029
2030
2031
2032
2033
203/-
2035
2036
2037
2036
Totals
534,000 $
5s0,000
565,000
587,000
608.000
628,000
652,000
675,000
690,000
723,000
740,000
378,000
386,000
249,6U $
231,448
212,773
193,478
173,462
152,761
131,323
109,097
fi,234
62,568
38,065
19,320
6,485
s
No4ommitment Debt
The city issued Assessment District limited obligation bonds to finance the construction of infrastructure improvements within the city through the use of special Assessment Districls. The fepayment of the bonds ispayablefromspecialassessmentsleviedeachyear,orfromforeclosureproceeds.Thebondsdonot constitute indebtedness of the City, and the City is in no way obligated for their repayment and is only acling on behatf of bondholders and initiating foreclosure proceedings, if necessary. Accordingly, these special assessments and speciallax bonds payable have been excluded from the accompanying primary government financial statements.
58 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
2) DETAILED NOTES ON ALL FUNDS - Continued
Oue to delinquent annual assessments, limited obligation bonds (Assessment Districls 8$2 and 893) amounting to $2,180,000 (principal only) are in default at June 30, 2025.

The details of the fund balances as of June 30, 2025 are presented below:

General
Fund
Trafic
Mligation
Fund
Pedestrian
SafetyFund
Other
GolEmmental
Funds
Facility
lmpact Fee
Fund Total
lonspendablo:

Prepaids
Ad\.ances to other Funds
Restrlcted:

Lighting Oistrict
Transportation
Recyding
Technology
Parks and Reqeation
Committ d
Emergency Contngencf
UrB33Ened
Total Fund Balance
s 240,233 $

2.000,000
s $

2.81A,281
533,,r5s
35?,?37
19,176
14,189
132.208
$ 240,233
2,000,000
533,45s
3,176,018
19,176
1,{,189
132 2OA
1,823,503
13,778,653
s s
't.823,503
't 7,055,130 (2,496 120) (243 363) (536,9S4)
s21.118.866 $(2 ,496,120) $ 2,818,281 $ (2,r3,363) $ $ 819,771 522.017,135 3) OTHER INFORMATION
A) Risk Management
Thecityparticipateswithotherpublicentitiesinajointventureunderajointpowersagreementwhich established the central san Joaquin valley Risk Management Authority (CSJVRMA). The City is covered for the first $1,000,000 of each liability claim and $5OO,OOO of each workers' compensation claim through the CSJVRMA. The Authority pays first dollar coverage for all liability and workers' compensation claims and collects the city,s retained limit five years afier the close of the fscal year through a retrospective adjustment process. The city,s liability and workers' compensation retained limit is $25,000 per occurrence. The CSJVRMA participates in an excess liability pool which provides liability coverage from $1,000,000 to $34,5OO,OOO and an excess workers' compensation pool wtrich provides workers' compensation coverage from $500,000 to the statutory limits.

The CSJVRMA is a consortium of 53 cities in san Joaquin valley, california. lt was established under the provisionsofcalifomiaGovernmentcodesection6500etseq.TheCSJVRMAisgovernedbyaBoardof birectors, which meets 3 times per year, consisting of one board member and an alternate member appointed by each member city. The iay-io-oay businesi is handled by a management group employed by the c'slvnue. At termination of the ioint powers agreement and afier all claims have been settled, any excess or deficit will be divided among thl cities in accordance with its governing documents. Financial slatements ofCSJVRMAcanbeobtainedfromtheAuthoritylocatedatlTSocreeksideoaksDrive,Suite200' Sacramento, CA 95833.
59 G) Fund Balances
Slreet
Projects
Fund
City of Tehachapi
Notes to Financial Statements
Year Ended J une 30, 2025
3) OTHER INFORMATIoN - Continued
The City is exposed to various risks of losses related to torts; thefts of, damage to, and destruction of assets, errors and omissions; and natural disasters. The City purchases insurance as described above. There are no signirlcant reductions in insurance coverage from prior years and also there have been no settlements exceeding the ansurance coverage for each of the past three fiscal years.

B) City Employee Retirement Plan
Geneial lnformation about the Defined Benefit Pension Plan I\rrscellaneous
l\riscellaneous
T€r ll
Miscellaneous
PEPRA
Plan Oescriptions - All qualified permanent and probationary employees are eligible to participate in the public Agency Cost-sharing Multiple-Employer Oefined Benefit Pension Plan (Plan) administered by the California Public Employees' Retirement System (Ca|PERS.) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. lndividual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors seven rate plans (three miscellaneous and four safety). Benetit provisions under the Plan are estabtistr"d by State statute and City resolution. CaIPERS issues publicly available reports that include a full description ofthe pension plan regarding benefit provisions, assumPtions and membership anformation that can be found on the CaIPERS website.

Benefits Provided - The Plan is a cost-sharing multiple-employer defined benefit pension plan administered by the california Public Employees' Retirement system (calPERS). A full description of the pension plan benefit provisions, assumptions for funding purposes but not accounting purposes, and membership information is listed in the June 30, 2023 Annual Actuarial Valuation Report. Details of the beneflts provided can be obtained in Appendix B ofthe June 30,2023 actuarial valuation report. This report is a publicty available valuation report that can be obtained at calPERS', website under Forms and publicationi. The rate plan provisions and benefits in effect at June 30, 2025, are summarized as follows:

Prior to
No\Ember 26. 20'12
Alter
Hile No\€mber 25, 2012 date
Beneft lbmula
Benefit \estang schedule
Beneft payments
Retirement age
Monthly benefits, as a % ofeiigible cornpensation
Required employee contribution rates
RequiEd employer contribution rates
Hire date
Benefit bmula
Benefit t€sting schedule
Beneft payments
RetiEmer age
Monthly benefls, as a % oI eligible co.npensation
Requircd employee conldbution rates
Requircd employer contnbutaon rates
Ater
January 1,2013
2%@s5
5 yeals senice
monthly for life

11.8E% + $339,101
2% @60
5 years senice
monthly for lib
60 7o/o

10.15% + 52,677
2v" @ 62
5 years servce
monthly tor liG
62 2%

7.75y,

7.87olo + $8,609
SaGty Police
fier I
Prior to
No\Ember 26. 20'12
Aller
NotEmber 26, 2012
Alter
January 1,2013
Prior lo
No€mber 26 2012
Safety Police
Tier ll
Safety Police
PEPRA
Satuty Fi€
Tier I
3%@50
5 years senice
monthly for lift
50 3%
9o/o

27.320k + 515f,912
2o/o @ 50
5 yeaE senice
monthly for lib
50 9%

20.09% + $8,907

2.7.k @ 57
5 yea6 senice
monthly icr lib
5?

2.7%

13.75%

13.76% + s7,041

2.O%@fi
5 yeaE se^ice
monlhly lor litre
50 2%
o%
0% + $6,907
60 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
Proportion - June 30, 2024
Proportion - June 30, 2025
Change - lncrease (Decrease)
Pension contributions subsequent to measurement date
Difrrences between actual and expected experience
Changes in assumPtions
Change in employe/s Proporlion
Differences between the employe/s contributions and
the employe/s proportionate share of contributions
Net difierences between projected and actual
eamings on plan in\estments
Total

0.051740k

0.04911%
-0.0026306
For the year ended June 30,2025, the City recognized pension expense of $1,608,192 AtJune30'2025' the City reported deferred outflows and deferred inflows related to pensions from the following sources:

D€bned Outflows
of Resources
Debned lnflo,t,s
of Resources
$ 1,692,356
505,327
150,956
6,795
670,276
324,624
-s 3350348
$
18,670
206,964
bl
s 225,634
3) OTHER INFORMATION - Continued
Contributions - Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate.

Funding contributions for the Plan is determined annually on an actuarial basis as of June 30 by CaIPERS The actuarially determined rate is the estimated amount necessary to finance lhe 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.

Beginning in fiscal year 2016, CaIPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability. The dollar amounts are billed on a monthly basis. The City's required contribution for the unfunded liability was $518,629 in fiscal yeat 2025. The City's contributions to the plan for the year ended June 30, 2025 were $1,692,356.
pension Liabilities, Pension Expenses and Deferred Outflows/lnflows Related to Pensions As of June 30, 2025, the City reported a liability of $5,955,370 for its proportionate share of the net pension liability. The City's net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability 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 conlributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined The city's proportionate share ofthe net pension liability as of June 30,2024 and 2025 was as follows:

City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
3) OTHER INFORMATION - Continued
51,692,356 reported as deferred oumows of resources related to conlributions 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 Ending
June 30,
551 ,705
905,420
ffi,424
(111,195)
Actuarial Assumptions - The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:
2026
2027
202E
2029
2030
Thereafter
s
Valuation date
Measurement date
Actuarial cost method
Actuarial assumptions:

Discount rate
lntation
Payroll growth
Prqected salary increase
ln\estment rate of retum
Mortality
(1) Depending on age, senice and type of employment
(2) Deri\ed using CaIPERS' Membership Data tur all Funds June 30. 2023
June 30, 2024
entry-age normal

6.90%

2.30%

2.750k
(1)

6.900/6
(21
The mortality table used was developed based on CaIPERS-specific data. The probabilities of mortality are based on the 2021 CaIPERS Experience Study for the period from 2OOl to 2019. Pre-retirement and Postretirement mortality rates include generational mortality improvement using 60% of scale MP-2020 published by the society of Actuaries. For more details on this table, please refer to the calPERS Experience study and Review of Actuarial Assumptions report from November 2021 that can be found on the CaIPERS website.

Long-term Expected Rate of Return The long-term expected rate of return on pension plan inveslments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. ln determining the long-term expected rate of return, calPERS took into account both short-term and longterm market relum expectations as well as the expected pension fund cash flows' oz
City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
Using historical returns of all of the funds' asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long{erm (1'l+ years) using a building-block approach. Using the expected nominal returns for both short{erm 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 benetits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The expected real rates of return by asset class are as follows:

Asset Class
New Strategic
Allocation Real Retum (1,2)
Global Equity - Cap Weighted 30%
Global Equity - Non-Cap Weighted 12o/o
Pri\€te Equity 13ok
Treasury 5%
Mortgage-backed Securities sok
ln\€stment Grade Corporates 10%
High Yield 50/6
Emerging Market Debt sok
Pri\ate Debt soh
Real Assets 'lsok
Le\Erage '5o/.
(1) An expected infation of2.3% used for this period.
(2) Figures are based on the 2021 Asset Liability Management study

4.54o/o

3.Uo/o
7 .2gok

0.270k

0.50%
1 . 560/6

2.2704

2.48%

3.570/n

3.210/0
-0.59%
Discount Rate - The discount rate used to measure the total pension liability 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, acluarially determined. Based on those assumptions, the Plan's liduciary 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 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 Plan, calculated using the discount rate for the Plan, as well as what the city's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
1Yo Decrease
Net Pension Liability
Cunent Discount Rate
Net Pension Liability $

5.90%
$ 10,221,339

6.90%
5,955,370
1 o/o lncrease
Net Pension Liability

7.9oo/o
$ 2,451,283
63 3) OTHER INFORMATION - Continued
City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2025
3) OTHER INFORMATION - Continued
payable to the Pension Plan - At June 30, 2025, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2025.

C) Commitments and Contingencies
The City has received Federal and State funds for specific purposes that are subject to review by the grantor agencies. These programs are subject to audit by the grantor agencies and upon further examination by the grantors, certain costs could be disallowed. The City expects any Such amounts to be immaterial.

Construclion commitments at year-end were approximately $1.6 million D) Changes within Financial RePorting Entity
Beginning Fund Balances in the Pedestrian safety capital Projects Fund and street Projects capital projects Fund were increased by 5568,930 and $21,800, respectively, for changes within the reporting entity. These changes are as follows:

Pedstrian
Sabty
Sfeet
Projects
other
Go\Emmental
Funds
Beginning Fund Balance, as Pre\,iously Reported
Changes within Financial Reporting Entity
Beginning Fund Balance, as Adjusted $ (482,983) $ (8,210) $ 494,999 $ (1,051,913) $
568,930
(30,010) $
21 ,800
1085,729
(590,730)
64 Pension Plan Fiduciary Net Position - Detailed information about the pension plan's fiduciary net position is available in the separately issued CaIPERS financial reports.

REQUIRED SUPPLEMENTARY INFORMATION
City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Fund
Year Ended June 30, 2025
Budgeted Amounts
Original
Variance with
Final Budget
Positive
(Negative

EXPENDITURES
Cunent:

General Government
Public Works
Public Safety (Police/Fire)
Community Development
Debt Service:
lnterest
Principal
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
oTHER FTNANCTNG SOURCES (USES)
Debt lssuance
Transfers ln
Transfers Out
Net Change in Fund Balances
Fund Balance, Beginning of Year
Fund Balance, End of Year
16,919,039 17,640,736 18,087,816 447,080
$ 14,579,184
775,200
108,000
1,137,830
300,300
'18,525
$ 14,985,662
780,082
248,694
1,011,895
551 ,919
62,484
$ 14,698,444
873,457
333,167
1,O73,782
998,843
't 10,123
$ (287 ,218)
93,375
84,473
61,887
446,924
47,639
2,543,583
2,743,456
7,799,430
2,255,743
2,198
95,522
2,784,778
3,054,680
8,068,657
1,700,275
2,460
522
2,552,MO
2,994,394
7,893,920
1,644,198
11 ,363
130,920
15,226,835
232,738
60,286
174,737
56,077
(8,903)
(35,398)
15,439,932 15,706,372 479,537
1,479,107 I ,934,364 2,860,98'1 926,617
31 1,850
(3,082,149)
74,928

14.724,433)
74,928
(5,932,516) 1,208,083
Total Other Financing Sources (Uses) (2,77O,293J (5,932,516) (4,649,s05) 1,283,011 (1 ,291 ,186)
22,907,390
6,204
(3,998,152)
22,907,390
$ 18,909,238
(1,788,5241
22,907,390
2,209,624
$21,118,866 $ 2,209,628
65 Final
Actual
Amounts

REVENUES
Taxes
Licenses, Permits, and Fines
lntergovernmental
Charges for Services
lnvestment Earnings
i/iscellaneous Revenues
Total Revenues
Budgeted Amounts Actual
Original Final Amounts
$ 200,000 $ 200,000 $ 1oo 273 $ (99,727)
200,000 200,000 100,273 (99,727)

REVENUES
Charges for Services

EXPENDITURES
Current:

Public Works
Debt Service
lnterest
Principal
50,000
150,000
50,000
150,000
2,967 47 ,033
1 50,000
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Fund Balance, Beginning of Year
Fund Balance, End of Year
200,000 200,000 2,967
- 97,306
(2,s93,426) (2,593,426)
97,306
(2, 593,426)
$ 97,306
rrt)
City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Facility lmpact Fee Special Revenue Fund Year Ended June 30, 2025
Variance with
Final Budget
Positive
(Negative)
Total Revenues
197,033
_91?.,!9!t?9_ _9la!9!49_ _!.G4U?9-
City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Traffic Mitigation Special Revenue Fund Year Ended June 30, 2025
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
Total Revenues

EXPENDITURES
Current:

Public Works
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
oTHER FtNANCtNG SOURCES (USES)
Transfers ln
Transfers Out
Fund Balance, Beginning of Year
Fund Balance, End of Year
'150,000 180,000 17 5,O14 (4,986)
150,000 180,000 175.014 (4,986)
120,000
30,000
120,000
60,000
$ $
82,136
92,878
(37,864)
32,878
4,362
(207,s74\
(4,362)
(198,395) 59,426
Total Other Financing Sources (Uses) (198,395)
Net Change in Fund Balance
(267,000)
(267,000) (2O3,212) 59,426
(48,395) (87,000)
2,846,479 2,846,479
_$_?J9!r91_ _q_4!9129_
(28,198)
2,846,479
$ 2,818,281

58.802
_q____!9r9?_
67 Budgeted Amounts
Original Final

REVENUES
lntergovernmental
Charges for Services
lnvestment Earnings
City of Tehachapi
Required Supplementary lnformation
Year Ended June 30, 2025
Schedule ofthe City's Proportionate Share of the Net Pension Liability Last 10 Years
Measurement Date
Proportion of
the Net Pension
Liability
Proportionate
Share of Net
Pension Liability
Proportionate
Share of the Net
Pension Liability
as a % of Payroll
Co\ered
Payroll
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015

0.04911% $
o.o51740/o

0.05345%

0.o5203vo

0.04959%
o.M7s',to/"

0.M5500/o
o.04471ak

0.u311Vo

0.u121Vo
5,955,370 I
6,455,202
6,173,U7
2,813,E24
5,395,363
4,867,912
4,3U,873
4,432,8'19
3,729,998
2,828,329
6,902,832
5,952,248
5,090,890
5,019,980
4,837,713
4,452,030
4,353,690
4,000,120
3,696,441
3,4U,251
E6
108
121
56 1',t1
109
'100
'l 10
100
81 270/o
450/o
27yo
05vo
530k
uo/o
720/o
820k
91o/o
17vo
81 .090/0
77 .620/0
77 .O3%

88.46%

76.14o/o

76.930/0

78.56Vo

76.94o/o

77.670/o
81 .73%
68 Plan Fiduciary
Net Position as
a % of the Total
Pension Liability
Notes to the Schedule of the City's Proportionate Share of the Net Pension Liability Benefit Changes: none
Changes in Assumptions: ln 2017, the accounting discount rate changed from 7.65ok lo 7.15%, and to 6.90% in 2022.

City of Tehachapi
Required Supplementary lnformation
Year Ended June 30, 2025
Schedule of Pension Plan Conbibutions
La* 10 Years
Fiscal Year
Contractually
Required
Contributions
Contributions in
Relation to the
Actuarially
Oetermined
Contributions
Contribution
Deficiency/
(Excess)
Co\€red
Paymll
Cortnbutions
as a o/o of
Co\€red
P ay roll
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
17 .520/0

16.94%

17.810h

19.200k
'l E.010/6

16.5204

15.40%

13.14o/n

13.400/0
11 .93%
$ 1 ,U2,355 $
1,169,308
'1,060,161
977,228
904,041
799,226
665,806
572,O35
536, 117
440,933
(1,692,356) S
(1,519,308)
(1,410,161)
(1 ,327,228)
(904,041)
o99,226)
(68s,806)
(572,03s)
(s36,117)
(,r40,933)
(3s0,001) $
(350,000)
(350,000)
(350,000)
7,663,830
6,902,E32
5,952,248
5,090,890
5,019,980
4,837 ,7'13
4,452,030
4,353,690
4,000,120
3,696,441
Notes to the Schedule of Plan contributions
Valuation Oate: 6130123,6130122, 6t3021, 6130120,6/30/'19, 6/30/'18, 0/30/17, 6/30/16, 6/30/15, 6/30/14 69 City of Tehachapi
Notes to Required Supplementary lnformation
Year Ended June 30, 2025
Budgetary Accounting
Budgetary comparison schedules are presented as part ofthe Required Supplementary lnformation for the General Fund and major Special Revenue Funds as provided for in GASB Statement No. 34. The City budget is adopted on a basis consistent with accounting principles generally accepted in United States of America. The City Manager is required to prepare and submit to the Crty Council the annual budgel of the City and administer it afrer the adoption.

The City Manager has the authority to appropriate up to $50,000 per fund above the budget if there is a sufficient fund balance to cover the extra appropriation. City Council approval is required for budget revisions that atfecl the total appropriations of the City. The City Manager is authorized to approve transfers within indivadual fund budgets without the approval of City Council.
70 SUPPLEMENTARY INFORMATION
City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Pedestrian Safety Capital Projects Fund Year Ended June 30, 2025
Actu al
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
lntergovernmental
Charges for Services
Total Revenues

EXPENDITURES
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
oTHER FINANCING SOURCES (USES)
Transfers ln
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance, Beginning of Year, as Adjusted
Fund Balance, End of Year
$ 3,113,676 $ 1,9E1,548 $(1,132,128)
3 113 676 1,981,548 (1, 132,128)
1 ,960,427 1,725,710 234.? 17
1 ,960,427 '1,725,7',10 234,717
1,153,249 255,638
1,327 (2\
(11,0221
1 ,325
17,s43)
(9,69s) 16,21 8) (6,523)
1,143.554 239.620
(482,963)
(903,934)
482,983)
$ 660,571 $ (243,363) $ (903 ,934)
71 Final
Budget
(897,41 1)
(6,521)
City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Street Projects Capital Projects Fund Year Ended June 30, 2025
Final
Budget
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
lntergovernmental
Charges for Services
Total Revenues

EXPENDITURES
Capital Outlay
Total Expenditures
Excess (Oeficiency) of Revenues
Over Expenditures
orHER FtNANCING SOURCES (USES)
Transfers ln
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance, Beginning of Year, as Adjusted
Fund Balance, End of Year
5 592,104 $ s80,565 $ (11,539)
580,565 11,539)
5,621,437 4,436,623 1 , 1 84,814

5.621.437 4,436,623 1.184,814
(5,029,333) (3,856,05E) 1,173,27s
s,029,543 3,864,268 ( 1,165,275)
5,029,543 3, E64,268
E,210
(8,210)
(1, 165,275)
210
(8,21q
8,000
_9____8,9!9_ $ $ 8 000
72 592.104
City of Tehachapi
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
Special
Revenue
Capital
Prolects Total
Total Assets

LIABILITIES
Accounts Payable
Accrued Liabilities
Due to Other Funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Linavailable Revenues - Grants
Total Deferred lnflows of Resources
FUND BALAT{CES
Restricted
Unassigned
Total Fund Balances
Total Liabilities, Defened lnilows of
Resources and Fund Balances
$ 1,587,800 $ 530,199 $ 2,117,999
s 904,060
683,740
529,955
244
$ 1 ,434,015
683,964
S
$ 64,418

22.',|68
536,994
5 83,802 $ 14E,220
22,168
536,994
623.580 83.802 707 ,382
590,846
590,846
590,846
590.846
910,368
536,994)
446,397 1,356,765
536,994)
373 374 446.397
s 1.587.800 $ 530,199 $ 2.117.999
ASSETS
Cash and lnvestments
Receivables
819,771
Special
Revenue
Capital
Projects Total
Total Revenues

EXPENDITURES
Current:

General Govemment
Public Works
Community Oevelopment
Capital Outlay
Debt Service:
lnterest
Principal
Fund Balances. End of Year
$ E56,848 $
360,877
28,55;
2,U2
77 120
635,551
18,994
13,803
856,E48
77 ,120
996,428
't 8,994
42,356
2,342
S
1,248,620 745,468 '1,994,088

43.863

1.564,628
43,863
1,564,628
30,1 68
469,555
10,350
38,1 19
30,168
469,555
10,350
38,1 19
Total Expenditures 1,6s6,960 499
Excess (Oeticiency) of Revenues Over Expenditures (408.340) 245,745 oTHER FtNAI{CING SOURCES (USES)
Transfers ln
Transfers Out
520,609 424,734
(447 ,041 ) 10,935)
Total Other Financing Sources (Uses) 73,568 413,799
Net Change in Fund Balances
Fund Balances, Beginning, as Previously Reported
Change within Financial Reporting Entity
Fund Balances, Beginning of Year, as Adjusted
334,772\ 659,544
723 2,156,683
162,59s)
945,343
(457,976)
487 ,367
324,772
708,146 377,583 1,0E5,729
(590, 730) (590, 730)
213 147 494,999
$ 373,374 $ 446,397 $ 819,771
74 City of Tehachapi
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
Year Ended June 30, 2025

REVENUES
Taxes
Licenses, Permits, and Fines
lntergovernmental
Charges for Services
lnvestment Eamings
Miscellaneous Revenues
708.'146
City of Tehachapi
Combining Balance Sheet
Non-major Special Revenue Funds
June 30, 2025
Beverage
Container
Recycli nq Gas Tax Total
$ 3,000 $ 1s,176 S 573,627 $ 11,834 $ 296,423 $ 904,060 _ _-:_ 3,620 5a7,226 92,894 683,740
$ 3,ooo _q__!J -$_s7U!l--9.199!90 -9--9q9,!-1-Z- -$l-!91.q9!- TDA 3
Bike Safety
ASSETS
Cash and lnvestments
Receivables
TotalAssets

LIABILITIES
Accounts Payable
Accrued Liabilities
Due to Other Funds
Advances From Other Funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants
Total Deferred lnllows of Resources

FUND BALANCES
Restncted
Unassigned
s $ $ 29,283 $

10.889
55s $
11,279
536,994
34,580 $ 64,418
- 22,168
- 536,994
40,172 548,828 34,580 623,580
3 620 5A7.226 590,846

3.620 587,226 590,846
3,000 19,176 533,455 354 737
Total Fund Balanc,es 3.000 19,176 533,455 s36 994) 354,737 373,37 4 Total Liabilities. Deferred lnflows of
Resources and Fund Balances $ 3.000 $ 19,176 $ 577.247 $ 599060 $ 389.317 S1,587.800 910.368
(536,994)
75 Lighting
Districl
Streets
and Roads
City of Tehachapi
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Special Revenue Funds
Year Ended June 30. 2025
Beverage
TDA 3 Container
Bike Safety
Streets
Recycli nq and Roads
Lighting
Drstrict

REVENUES
Taxes
lntergovernmental
lnvestment Eamings
Miscellaneous Revenues
Total Revenues

EXPENDITURES
Cunent:

General Government
Public Works
Capital Outlay
Debt Servace:
lnterest
Principal
Total Expenditures
Excess (Deficiency) of Revenues
Over Expendrtures
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Total
$ - $ 501,689 $ - $ 355,159 $ 856,848

5.000 - 355,877 360,877
- 601 15,255 - 12,697 28,553
5 ooo 601 516.944 2.342 723,733 1,24A,620
2,000 360,800 413,614
43,863
1,564,628
10,350
38,119

2.000 - 832,077 409,269
3,000 601 (315,133) 406,927) 310, r19 (408,340)
3,OOO 601 13/,267 (s45,O72\ 72,432 l3U'772)
- 18 s7s 399 ',188 8.078 282,305 708.146
$ 3.000 $ 19,175 S 533.455 $ (s36,994) S 354,737 S 373.374 43,863
7AA,214
1,656,960
449,400 '13.181 58,028 520,609
- (151,326) 715) 447,041)
237 ,687 ) 73,558
76 Gas Tax
orHER F|NANCING SOURCES (USES)
Transfers ln
Transfers Out
- 10,350
- 38'119
413,614
(138,145)
City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - TDA 3 Bike Safety Special Revenue Fund Year Ended June 30, 2025
Final
Budget
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
lntergovemmental
Total Revenues
$ 5,000 $ 5,000

EXPENDITURES
Cunent:

Public Works
5,000 5,000
5,000 2,000 3,000
5,000 2,000 3,000
3,000 3,000
s 3,000 $ 3,000
Total Expenditures
Excess (Deflciency) of Revenues
over Expenditures
Fund Balance, Beginning of Year
Fund Balance, End of Year s
77 Final
Budget
REVEI{UES
lnvestment Eamings
Total Revenues

EXPENDITURES
Cunent:

Public Works
$ 400 s 601 $ 201
400 601 201
Total Expenditures
Excess (Deliciency) of Revenues
over Expenditures
Fund Balance, Beginning of Year
Fund Balance. End of Year
400
18,575
$ 1E,975
601
18,575
s 19,176
201
$ 201
78 City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Beverage Container Recycling Special Revenue Fund Year Ended June 30, 2025
Variance with
Final Budget
Aclual Positive
Amounts (Negative)
City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Lighting District Special Revenue Fund Year Ended June 30, 2025
Final
Budget
Aciual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Taxes
lnvestment Eamings
Total Revenues

EXPENDITURES
Current:

General Govemment
Public Works
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures

OTHER FINANCING SOURCES (USES)
Transfers ln
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balance, Beginning of Year
Fund Balance, End of Year
$ 431,581 $ 501,669

9.670 '15,255
47,2',t7 43,663
E52,525 7E8,214
$ 70,108
585
441.251 516,944 75,693
3,354
64,31'!
899,742 832,077 67,665
(4s8 491) (315,133) 143,358
500,969 449,400 (s1,56e)
500.969
42,478
399,188
$ 441 ,666
,149,400
134,267
399,18E
$ 533,455
(s1,569)
91,789
$ 91,7E9
79 City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Streets and Roads Special Revenue Fund Year Ended June 30, 2025
Final
Budqet
Actual
Amounts
Varaance with
Final Budget
Positive
(Negative

REVENUES
lntergovernmental
Miscellaneous Revenues
Total Revenues

EXPENDITURES
Current:

Public Works
Capital Outlay
Debt Service:
lnterest
Principal
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
oTHER FINANCING SOURCES (USES)
Transfers ln
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
$ 567,226 $
3,000 2,342
$ (s87,226)
(658)
590,226 2,U2 587 884
369.268 360,800 8,468
10,350
38,1 19
10,350
38,'1 'r 9
417,737 409,269 8,468
't72,489 (406, 927\ (579,416)
11,022
191 ,589)
180,567) ( 1 38,145) 42,422
(8,078)
8,07E
(545,072)
8,078
_Lg$194_
(536,994)
$ _!__ll!9f91r
80 1 3,1E I
(151 ,326)
2,159
40,263
City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Gas Tax Special Revenue Fund
Year Ended June 30, 2025
Actual
Amounts

REVENUES
Taxes
lntergovernmental
lnvestment Earnings
Total Revenues
s 355,998 s 355,159
329,276 355,877
10,211 12,697
$ (83s)
26,601
2,486
EXPEI{DITURES
Cunent:

Public Works
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
orHER FtNANCtNG SOURCES (USES)
Transfers ln
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
695,485 723,733 28,248
398,777 413,614 (14,837)
398,777 4'r 3,614
296,708 3'10,'1 19 13,4'l 1

40.262 58,02E
(295,715)
17,766
(2s5,715)
(237,687)
41 ,255 72,432
282,305 282305
_9__9?9.199_ -!--!q4Z31 ,177
$ 31,177
81 Final
Budget
Variance with
Final Budget
Positive
(Negative)
( 14,837)
(2s5,453) 17,766

THIS PAGE INTENTIONALLY LEFT BLANK
City of Tehachapi
Combining Balance Sheet
Non-major Capital Project Funds
June 30, 2025
Building and
Planning
Parks & Rec.

Capital
Pro
Other
Capital
Projects Total
ASSETS
Cash and lnvestments
Recervables
Total Assets

LIABILITIES
Liabilities
Accounts Payable
Total Liabilities

DEFERREO INFLOWS OF RESOURCES
Unavailable Revenues - Grants
Total Defened lnffows of Resources
$ 432,208 $ 79,066 6 529,95s
244
$ 18,925 _t___4322o9_ _!_-__Z9pq9_ _!__E9J!9_
$ 79,066 $ 83,802
4,736
$ 4,736
79,066 83,802
'14,189 446 397
14,189 432,208 446,397
s 18 925 $ 432.208 $ 79 066 S 530.199
$

FUND BALANCES
Restricted
Total Fund Balances
Total Liabilities and Fund Balances
432,204
82 $ 18,681
244
City of Tehachapi
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Capital Project Funds
Year Ended June 30, 2025
Parks & Rec.

Capital
Project
Other
Caprtal
Prolects Total

REVENUES
Licenses, Permits, and Fines
lnlergovemmental
Charges for Services
Miscellaneous Revenue
lnvestment Earnings
Total Revenues

EXPENDITURES
Currentl
Community Development
CapitalOutlay
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures

OTHER FINANCING SOURCES (USES)
Transfers ln
Transfers Out
Total Other Financing Sources (Uses)
Fund Balances, Beginning, as Previously Reported
Change within Financial Reporting Entity
Fund Balances, Beginning of Year, as Adjusted
Fund Balanc€s, End of Year
13,07'l 13,803
19,726 90,1 91 635 551 745 468
s s 77,120 $ $ 77,120
635,551

18.994
635,551
18,994
732
30,168
469,555
30,168 459 555 499,723
(10, 442) 90,191 '165,996 245,745
424 7 34 424 734
(10, 935) (10 s35)
413,799
30,168
469,555
424,734
79,256 590,730 659 544
24,631 352,952
24,631 352,952
_q____q-qg- _!___432_209_
(590,730)
(590,730) (211.147)
$ 446 397
377,583
s90,730)
$
83 Building and
Planning
Net Change in Fund Balances
(10,935)
11o,442)
City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Building and Planning Capital Projects Fund Year Ended June 30, 2025
Actual
Amounts

REVENUES
Charges for Services
lnvestment Eamings
Total Revenues

EXPENDITURES
Cunent:

Community Development
Total Expenditures
Excess (Oeficiency) of Revenues
over Expenditures
Fund Balance, Beginning of Year
Fund Balance, End of Year
Variance with
Final Budget
Positive
(Negative)
$ 30,038
500
$ 1E,994
732
$ (11,0,r4)
232
30,538 ',t9.726 (10,812)
25,000 (5,168)
25,000 30,'168 (5,168)
5,538 (10,442) (15,980)
24,631 24,631
$ 30,169 $ 14,189 $ (15,980)
30,168
84 Final
Budget
City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Parks and Recreation Capital Projects Fund Year Ended June 30, 2025
Final
Budget
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
REVEI{UES
Licenses, Permits, and Fines
Investment Eamings
Total Revenues

EXPENDITURES
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
oTHER FTNANCING SOURCES (USES)
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balance, Beginning of Year
Fund Balance. End of Year
$ 145,517 $ 77,',120 $ (6E,397)
7,500 13,071 s.571
1 53,0 17 90,191 (62 ,826)
153,017 90,191 (62,826)
(123,000) 10,935) 112,065
(123,000) 10,935) 112,065
30,017
352,952
s 382,969
79,256
352,952
$ 432,208 $ 49,239
49,239
85 City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Other Capital Projects Fund
Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Amounts (Negative

REVENUES
lntergovernmental
Total Revenues

EXPENDITURES
Capital Outlay
Total Expenditures
Excess (Deliciency) of Revenues
Over Expenditures
oTHER FTNANCTNG SOURCES (USES)
Transfers ln
Total Other Financing Sources (Uses)
Net Chanqe in Fund Balance
Fund Balance, Beginning of Year, as Adjusted
Fund Balance, End of Year
s 635,5s'1 $ 635,551 $
635,551 635,551
881 ,81 5 469,555
881 ,815 469,555
412,260
412,260
(246,264\ 165,996 412,260
7 57 ,487
757,487
424,734 332,753)
424,734 (332,753)
511.223
590,730)
590,730
(s90,730)
79,507
_g__tz$07I s $ 79,s07
86 Final
Budget
City of Tehachapi
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2025
Summit
89-2
ASSETS
Cash and lnvestments
Other Assets
$ 193.638
329,480
East
Tehachapi Blvd
Project 89-3
Tehachapi
Meadows
90-1
Capital
Hills
89-1
Total
Custodial
Funds
$ 37 ,O7',1

26.O77
$ 63,148 $ 523,118 $ 44,230 $ 48,903 $ 679,399
875 875
875 875
48 903 678 524
$ 44,230 $ 48 903 $ 323.842
355,557
TotalAssets

LIABILITIES
Accounts Payable
Total Liabilities
Total Net Position

NET POSITION
Restrictedl
Held for the Benefit of Others 62.273
$ 62.273
523,118
S 523,118
44 230
$ 44,230 $ 48,903 $ 678,524
87 City of Tohachapi
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
Year Ended June 30, 2025
East
Tehachapi Blvd
Project 89-3
Summrt
89-2
Tehachapi
Meadows
Capital
Hills
89-1
Total
Custodial
Funds

AODITIONS
lnvestment Earnings:
lnterest lncome
TotalAdditions
595 S 2.845 $
'1,3E7 g 1,533
1,533
$ 6,360
6,360
s

DEDUCTIONS
General and Administrative
2,845
2,64A 5,172
1,387

5.172
7,420

7.824 Total Deductions
Net lncrease (decrease) in net position
Net Position, beginning of the year
Net Position, end of the year $ 62 273 $ 523,118
41,370
s 48,903
2 648
(2,053)
64,326
1,387
42,U3
$ ,t4,230
(2,327)
525,445
1,533 (1 460)
673 9E4
88 $ 678,524
City of Tehachapi
Description of Statistical Section Contents
June 30,2025
This part of the City of Tehachapi's annual comprehensive tlnancial report presents detailed information as a context for understanding what the information in the Unancial statements, note disclosures, and required supplementary information say about the government's overall Iinancial health.

Contents Pages
Financia lTrends - These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time
Revenue Caoacitv - These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax Debt CaDacitv - These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future
Demooraphic and Economic lnformation - These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place
Operatino lnformation - These schedules contain service and infrastructure data to help the reader understand how the information in the City's flnancial report relates to the services the City provides and the activities it performs 88 98
104
1't 1
115
89 CITY OF TEHACHAPI
NET POSITION BY CO PO]TENT
Last Ten Fiscal Years
Governmental Activities
Net lnvestment in Capital Assets
Restricted
Unrestricted
Tolal Governmental Activities Net Position
Business-type Activities
Net lnvestment in Capital Assets
Restricted
U n reslricted
Total Business-type Activities Net Posilion
Primary Govemment
Net lnvestment in Capital Assets
Restricted
Unrestricted
Total Primary Govemment Activities Net Position
2015/16 2016117 20171'18 2018t19
39,858,165 40,80'1,393 41,636,099 44,248,395
$ 33,659,005
3,573,241
2,625,919
14,21',t,405
1,016,832
312,118
15,540,355 17 ,452,646
$ 3s,786,732 $ 36,282,617

2.987,O70 2,414,590
2,027,591 2,936,892
13,300,237 13,298,672
1,016,832 1,629,927
3,'135,577 2,879,006
$ 36,771,604
3,168,630
4,308,161
'12,865,566
3,040,310
2,341,438
17,807,605 18,247,314
47,870,410 49,086,969
4,590,073 4,003,902
2,938,037 5,163,168
s 55,398,520 $ 58,254,039
49,581,289
4,O44,517
5,817,898
$ 59,443,704
49,637,170
6,208,940
6,649,599
$ 62,495,709
Source Audited Frnanoal Statements
90 2019t20 2020t21 2021122 2022123 2023124 2024125
$ 37,634,315
4,714,?42
3,881,590
$ 38,817,981 S 39,457,130
3,895,674 4,410,645
7,214,879 9,684,053
$ 39,182,703
4,400,300
13,499,605
s 41,192,832
3,924,920
'18,311,313
63,429,065
$ 42,249,827
4,150,922
16,962,543
46,230,647 49,968.q!4 53,551 828 57,082,608 63,363,292
13,126,463 13,897,605 14,311,502 15,691,758 18,452,589 22,528,049

3.095.393 1.286,582 2,410,349 2,410,349 3,234,215 3,360,041 2,476,233 3,579,134 2,167,U2 1,306,572 35,200 (141,070) 18,698,089 18,763,321 18,889,493 19,408 679 21 722,OO4 25,747 .O20 50,760,778 52,715,586 53,768,632
7,810,135 5,182,256 6,820,994
6,357,823 10,834,013 1',1,851,695
$ 64,928,736 $ 68,731 ,855 $ 72,M1,321
14,806,1 77 16,821,473
$ 76,491,287 $ 85,151,069 $ 89.110,312
,874,461
6,810,649
59,645,421
7,159,13s
18,346,513

64.777,876
7,510,963
91 CITY OF TEHACHAPI

CHANGES IN NET POSITION
Lasl Ten Fiscal Years
2016t17 2017 t18 2018t19
Expenses
Govemmental Aclivities
General Govemment
Public Works
Public Safety
Community Development
Pass-th roug h s
lnterest
Total Govemmental Expenses
Business-type Activities
Water
Sewer
Airport
Refuse
Transit
Motocross Event Center
Total Business-type Expenses
Total Primary Govemment Expenses
Program Revenues
Govemmental Aclivities
Charges for Services
General Govemment
Public Works
Public Safety
Community Development
Operating Grants and Contributions
Capital Grants and Contributions
Total Governmental Activities Program Revenues
Business-type Activities
Charges for Services
Water
Sewer
Airport
Refuse
Transit
Operating Grants and Contributions
Capital Grants and Contributions
Total Business-type Activities Program Revenues
Total Primary Government Program Revenues
Net Revenues (Expenses)
Governmental Activities
Business-type Activities
Total Net Revenues (Expenses)
32,7fi 39,372 51 448
8,973,742 8.270,897 9,261,s36 9,837,662
$ 2,591 137
2,363,37s
3,256,884
742,409
$ 2,960,419

1.521,625
2,676,O47
1,080,050
s 2,956,947
2,O25,544
3,252,153
987,520
$ 3,463,063

1.791,U4
3,437,651
1,094,456

2.122,629
2,313,166
665,664
1,523,88'1
203,452
2,047,429
2,O39,152
671,769
1,32't,542
224,557
2,263.U8
2,108,924
798 286
1,320,605
262,s6s
2,674,527
2,254.391
827 ,525
'1 ,381 ,515
273,718
608 304
6,A28.792 6,304,449 6,753,728 8,019,980
15,802,534 14,575,346 16,015,264 17,857,U2
592,856
199,809
u,157
555,366
't28,76
131,329
7U,697
1 1.336
89,707
879,341
388,860
404,830
691 .728
3 01 1,463
933,565 227,410 215,358

2.632jU 2.223.?80 2,965,430
4 566 013 4,381,180 3,286,930 4,853,819
't,852,062
2,026,441
543,020
1,273,s57
4,783
222,494
2,428,198
2,387 ,1',12
531,110
1,304,499
5,068
181 ,162
2,409,876
2,196,898
570,956
1,338,818
7,0u
389,258
3,O82,721
2,760,849
602,418
1,379,802
6,387
221,858
533 828
6,456,185 6,837 149 6,912,870 8,054,035
$ 11,022,198 5 ',11,218,329 $ 10 199,800 S 12,907,854
$ (4,407,729)
(372,607\
$ (3,889,717)
532,700
$ (5,974,606)
159.142
s (4,983,843)
34,055
(4,780,336)
92 (3 357 017) (s,815,464) (4.949,788)
2015t16
19,937
2019t20 2021t22 2022t23 2024t25
$ 3,754,511
2,158,019
3,701 ,640
1,286,798
$ 3,772260
2,212.546
4,934,643
1,158,064
s 1j02246 $
2,674,415
5,112,873
3,300,861

1.946,834
3,807,094
5,7'16,890
3,630,463
$ 2,544,982 $
4,727 ,541
7 ,2U,640
3,5s9,229
2,753.77 5
8,035,973

8.268 024
3,430,138
46 407 40 890 37,358 32.802 28 887 23,384
10,947,375 12j18I03 12,228.153 15,134,083 18,1',15,279 22,511,294

2.509,423
2,479,478
902,729
1,4'17.141
260,754
2,882,279
2,469,560
926,700
1,456,930
305,301
2,739,661
2,334,763

1.059,869
1 ,561,496
240,065
2,972,953
2,620,908
1,085,323

1.741,817
247 .288
3,076,649
3,257,049
1,219,589
1,896,058
274.973
3,324,213
3,269,137
1,196 484
2 570 420
290,001
7,569 525 8,040,770 7,935,854 8,668,289 9,724,31A 10,650,2ss 18 5'16,900 20 159,173 20,164 007 23,802,372 27,839,597 33,161 549 735,831 765,604 778.992 9A8,322
622,579 416,7y 689,907 1,087,031
159,252 102J24 111,369 186,552
21J53 32,838 3,994 90
648,183 2,402,243 366,251 1,769,460

3.035.468 2,483.627 3,643,769 2 886,137
5,223,066 6,203,170 5,594,282 6,917,592
1,087,376
992,274
321,672
18,569
422.492
't,042,855
726,317
172,660
53 ul,822
3,240,140
5,523,447

4. 245.776
7 088,559
2,670,582
2,598,401
645,781
1,420,155
5,288
320,2',17
2,857,982
2,38/.,1U
649,898
1,451.637
4,236
470,547
2,731.318
2,453.827
751,',l17
1,577,596
4,004
355,536
2,772,796
2,680,650
793,915
1,723216
3,617
467.210

3.154.727
2,975.209
868,370
1,823,849
1,48s
263.O12
2,162,093
11 ,248,7 45
3,240,861
2,816,388
879,299
2,582,623
3,638
282,237
4 082,589
7 ,660.424 7,824,484 7,873,398 8,841,404 '13,887,635
$ 12,883,490 $ 14 O27 .654 513,467,680 $ 15,758,996 $ 18,337,3M $ 19,4',11,482 $ (5,724,309)

90.899
$ (5,915,233)
(216,286)
$ (6,633,871)
(62,456)
$ (8,216,491)
173,115
$ (11,026,720)

1.524,427
$ (16,987 447)
3,237,380
-__lggt,.3rcI 15 633 410) (6.131.519) (6,696,327)
93 (e, 502,293) _11989,0q1)
2020121 2023t24

CITY OF TEHACHAPI

CHANGES IN NET POSITION
Last Ten Fiscal Years
2015t16 2016t17 2017118 2018t19
General Revenues and Other Changes in Net Position
Governmental Activities
Property Taxes
Sales and Use Taxes
Property Tax in Lieu
Transient Occupancy Tax
Licenses and Permits
Franchise Tax
Other Taxes
Miscellaneous Revenues
lnvestment Earnings
Loss on Disposal
TransfeB ln (Out)
Transfer to Fiduciary Fund
Total Governmental Activities
Business-type AcliYities
Miscellaneous Revenues
lnvestment Earnings
Gain/Loss on Disposal
Transfers
Total Business-type Activities
Total Pramary Govemment
Changes in Net Position
Governmental Activities
Business-type Activities
Total Primary Govemment
Source Audiled FrnanoalSlatements
(1,200) (1,502,719) (24,228) (158,ss0)
6,2',t0,423 4.832,945 6,809,312 7,596,139
1,209.741
2,083,650
429,281
64'1 ,'191
1,286,961
200,726
259,181
23,912
76,980
1,266,903
2,453,186
1,199,959
't05,197
127 ,112
178,493
222,329
153,309
29,176
1,349,341
2,698,641
1,298,550
759,381
189,437
2U,634
219.497
32,869
81,190
I ,47 4,140
3,262,U6
1 ,324,876
801,444
202.440
221,053
218,386
39,192
210.812
405,354 432,926
9,917 37 ,177
(r,882) (s93,231)
1,200 1,502,719
414,589 1,379,591
127 ,495

44.552
(4s8)
24,228
97,497
147,125

2.482
158,550
195,817 405,654
6,625,012 6,212,536 7,005,',l29 8,001,793
1,802,694

41.982
943 224
1,912,291
834 706
354,959
2,612,296
439,709
s 1.844.676 $ 2,855,519 $ 1,189,665 $ 3,052,005
94 2019t20 2020t21 2021t22 2022t23 2024t25
1,709,886
3,078,646
1,430,560
648,225
261,244
225,8U
202,590
62,374
234,164
2,s99,168
3,693,947
1,543,538
u2,473
289,184
240,569
209,725
104,657
52,79',1
2,603,683
4,304,461
1,613,664
'1,045,539
341,731
282,892
214,932
33,528
(76,210)
2,628,604
5,254,833
1 ,737 ,124
934,880
244,420
350,465
320,952
177,289
232.944
3,U2,445
9,381,335
1,871 ,998
'1,025,699
2U.494
323.449
345,838
72,634
1,028,388
2,714,301
9,259,215
1,977,139
1,120,905
395,801
378,600
355,159
103,778
1 134,076
(146,962) (173,027\ (147,0s5) (s52) (3,103) (517,300)
7,706,56'1 9,403,025 10,217,165 11,880,559 17,373,177 16.921 674 77 ,460 58,527
'130,005 34,183
5,449 15,781
146,962 173,027
359,876 281,518
43,407
(1,834)
147,055
188,628
92,331
197,748
(53,436)
3,103
90,309
17 4,987
5,040
517,300
239,746 787,636
8,066,437 9,684,543 10,405,793 12,226,630 17,612,923'17,709,310 I ,982 2s2
450.77 5
3,487,792
65,232
3,583,294
126,172
3,664,068
519,186
6,346,457
1,7U,173
(6s,773)
4,025,016
$ 3,553,024 $ 3,709,466 $4, 183.2U _g___qr_qi!o -q__9Eg3t95 2023t24
'tu,294
142,659
48,166
952
346,071
$ 2 433 027

CITY OF TEHACHAPI

FUNO BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2015t16 2016t17 2017/1..4 2018/19
All Other Govemmental Funds
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total All Other Governmental Funds
Source Audited Financial Stalements
$ 4,56E,444 $
212.068
963.561
$ 2,320,850 5
524,063
927 ,351
2,768,871
42,463
1,009,610
2,314,3E3
141 128
951 ,319
2,863,138 3,475,310 4,525,391 6174235
I,607 ,211 7,296,254 E,297,655 9,561,065
3,509,814 2,947,084 2,764,787 3,217,526
(4,116,912) (4,297,996) (3,798,062) (3,239,148)
$ (607,098) _9_1L9!!!1?r _$__p1_,6?2L
General Fund
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total General Fund
_g_r!!g;zq
96 2019t20 2020t21 2021t22 2022t23 2023t24 2024125
$ 2,236,527 $ 2,365,185 $ 2,395,992 $ 2,407,760 g 2,182,926 $ 2,240,233 1,061,215 1,158,946 t,1E5,070 1,346,099 1,588,629 1,823,503 7,U2,898 10,'103,854 11,367,536 14,703,U4 19,135,838 17,055,130 '10,340,640 13,627,985 '14,948,598 ___1U!6,9!!_ ___4 po?_,38l_ 3,399,021 3,655,590 4,107,859 4,041,660 3,932,208 4,175,046 (3,846,17e) (3,631,307) (3,2s4,15s) (3,640,841) (3,67s,352) (3,276,477) l___1112J_!!)_ $ 24.283 $ 653,704 $ 400,819 $ 256,856 $ 898,569 21 ,1 18,866

CITY OF TEHACHAPI

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2015t16 2018t19
Revenues
Property Taxes
Sales Taxes
Other Taxes
Licenses and Permits
Grants
Charges for Services
lnterest
Other Sources of Funds
Miscellaneous
Totai Revenues
Expenditures
Cunent
General Govemment
Public Works
Public Safety
Community Development
Pass{hroughs
Capital Outlay
Debt Service
lnterest Expense
Principal
Total Expenditures
Excess of Revenues Over Expenditures
Other Financing Source (Uses)
Transfers ln
Transfers Out
Debt lssuance
Proceeds from Leases
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Capitalized Outlay Amount
Debt service as a percentage of noncapital
expenditures
Source A!ditedFinancialStalements
$ 1,639,022
2,083,650
2,464,448
139,894
$ 2,466,862 $
2,453,186
1 ,293,138
158,347
2,647,A91 $
2,698,641
'1,396,552
286,062
3,208,395
581 ,969

81.188
291,853
29,175
2,877,U6
446.437
2,799,016
3,262,346
1,448,320
424.901
3,086,873
'1,149,809
210,81 0
20,630 151 ,647
10,016,M4 10,921,328 12,533,722

3.r4,800
78,117
3,821,298
385,755
10,956,984
1,185,451
3,366,282
3,738,870
742,409
'1,236,541
3,064,968
2,844,10,4
1,080,050
1,276,431
4,1 59,9'18
3,O84,772
987,520
39,372
146,693
'1,233,731
4,086,366
3,437,651

1.094,456
6,729
51 ,,148
169,728
'10,080,109
2,614,335 2,113,490 411,481
19,937 32.756
221,122 196,187
1 1 ,888,406 10,568,096 10,106,187
(931,422) (552,052) 815,141 2,453,613
5,773,563
(5,77 4,763)
1,128,417
(2,631 ,136)
1,883,697
(1,907,925)
570,811
(729,361)
807,334
806,'t34
$ (125.288) $ (2,054,771) $ 1,319,038 $ 2,295,063
$ 4,099,228 $ 3,656,83s $ 2,54s,855 $ 2,357,831

3.1ok 3.36/o 2.5o/o 2.9o/o
(1,
528,125
502,719) 503,897 (158,550)
98 2016117 2017118
2019t20 2020t21 2021122 2022t23 2023t24
$ 3,140,446
3,078,646
1,349,364
609,201
2,430,645
't,o44,o44
234,162
$ 4,142,706
3,693,947
1,573,953
409,306
5,733,425
1,O12,140
52,792
$ 4,217,U7
4,304,461
't ,842,072
801,142
3,669,181
939.400
(76,209)
$ 4,365,728
5,254,833
1,736,341
'1 ,103,644
4,042,590
1,210,712
232,944
$ 4,9'14,443
9,38'1,335
1 ,954,215
866,141

4.441,750
1,620,632
1 ,O27,328
$ 4,691,440
9,259,215
'1,604,637
950,577

3.891,708
1,275,185
1,1U,O77
56,292 113,177 45,779 192,040 80,376 112,465
11 ,942,800 16,731,446 15,743J73 18,138,832 24,286,220 22,9193U 1,293,556
2,208,147
3,700,682
1,286,798
1,388,285
2,241 ,396
4,934,643
I ,158,064
1,634,214
2,375,251
4,805,530
1 ,480,013
1,875,236
3,0'l 3,136
5,444,O29
1,734,846
2,355,893
3,572,093
6,929,956
1,763,388
30,141
180,525
2,595,903
4,559,O22
7,893,920
1,674,366
24,680
169,039
23,548,818
2,808,631 2.84A,529 3,104,616 2,779579 5,213,',113 6,631,888

46.407 40.890 38,916 34 211
189,254 187 .826 227 ,080 201,423
11,533,475 12,799,633 13,665,620 15,082,460 20,045,109
409.325 3,931,813 2,077,553 3,056,372 4,24',1,1'11 (629,514) 567,605
(740,632)
't ,166,720
(1,313,77s)
1,473,'105
(1,474,O57\
2,887,990
(2,891,093)
68,519
7't,676 219,536
72,481 (952) 65,416 517,300)
s 334.039 S 3.758.786 $ 2,150,034 $ 3,055.420
$ 2,858,759 $ 2,880,792 $ 2,876,208 $ 2,051,'140
2]% 2.3o/o 2.5"/o 1.8o/.
_g_L.ggq!?r- -9-L!19..q.u
$ 4,158,093 $ 3,228,982

1.3Yo 1.Ook
99 2024t25
678.095
(825,057)
4,890,226
(5,407,526)
(75,286) t173,027)

CITY OF TEHACHAPI
ASSESSED VALUE OF TAXABLE PROPERTY (Net Taxable)
Last Ten Fiscal Years
2015116 2016117 2018119
Residenlial
Commercial
lndustrial
Dry Farm
Government Owned
lnstitutional
lrrigated
Recreational
Vacant
SBE Nonunitary
[Jnsecured
$ 380,664,403
144,701,721
32,287,375
$ 399,422,704
153,166,923
33,725,848
$ 428,954,661
166,465,568
34,610,139
$ 460,071,380
'174,168,100
34,874,684
8,766
535,961
1,381,356
1 ,452,435
44,669,511
395,680
25,51 1,087
7,'t70
544,130
1,402,417
793,833
41,998,586
988,898
24,690,697
5,32'l
4,768,656
'1,430,459
540,829
40,213,440
988,898
50,321,244
8,020
566,105
1,O74,823
546,325
40,682,524
6M,699
29, 185,900
Total $ 631,608,295 $ 656,741,206 $ 728,319,215 $ 741,782,560 Total Direct Rate 0.16098 0.16098 0.15920 0.16019
Tax Exempt
Notes: ln 1978 the voters ofthe State of Califomia passed Proposition 13 which limiled taxes to a total matmum rale of 1%, based upon lhe assessed value ofthe property being taxed. Each year, the assessed value ofprcpe(y may be inoeased by an "inflation factod' (limated to a marimum 2%)- Wlth few exceptions, property is only reassessed as a result of new construction activity or at the time at is sold to a new owner. Al that point, the property is reassessed based upon the added value ofthe construction or at the purchase price (market \rdlue) or economicvalue ofthe property sold. The assessed valuatio n date shown above represents the only date cunently available with respect to the actual market value oftaxable property and is subjecl to the limitations described above.

Source: Kem County Assessor 2014/15 - 2023/24 combined Tax Rolls via HdL, Coren & Cone This report is not to be used in support ofdebt issuance or continuing disclosure stalements without the written consent of HdL, Coren & Cone
100
2017t18
$ (3,080,1E7) $ (37,61E,1E7) $ (47,657,4Es) $ (47,747,124) 2019t20 2020t21 2021122 2022t23 2023124 2024t25
$ 504,175,793
186,722,185
35,940,915
8,179
840,5E3
1 ,096,315
482,000
36,089,584
604,699
33,772,145
$ 532,035,6'!6
'199,770,549
36,158,769
102.208
8,341
588,968
1,370,087
491,640
37,021,550
u3,322
37,990,514
$ 557,817,999
206,542,926
36,275,420
44,663
5,291
821 ,791
13U,278
496,732
39,990,752
843,322
40,611 ,4'15
$ 601,208,346
219,027,585
38,585,531
45,556
5,396
606,965
1,411,961
506,665
47 ,097 ,235
u3,322
43,194,244
$ 641,E70,339 $
239,478,626
42,308,669

46.467
820
3,456,716
1 ,364,709
1,295,509
50,310,469
843,322
45,5',13,577
688,286,613
247,950,793
47 ,732,045
47,396
836
1 .217 ,571
1 ,392,000
1,646,268
49,151 ,539
8/.3,322
45,976,644
$ 799,732,698

0. 1 6001
s (47,729,486) $ (48,033,396) $
s 846,381,664 $ 884,834,569 $ 952,532,806 $ 1,026,469,223 $ 1,084,245,027

0.16721 0.16671 0.16702 0.16689 0.16685
b s
101

CITY OF TEHACHAPI

OIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal YeaIs
Agency
Basic Levy
Kern Community College
Kern County Water Agency
Tehachapi Cummings Water State Payment
Tehachapi Health Bond
Tehachapi Unified School District
Total Direct & Overlapping Tax Rates
City's Share of 1% Levy Per Prop 13
Redevelopment Rate
Source: Kem County AssessorTax Rate Tables
2014115 2015116 2016117 2017t1E

1.00000

0.01357

0.037E7

0.07811

0.04454

1.00000

0.01 31 E

0.01532

0.06940

0.08002

0.05349

1.00000

0.03625

0.01784

0.05665

0.08067

0.05000

1.19790 1.18765 1.23140 1.24142
0j8729 0.18729 018729 0j8729

0.16116 0.1609E 0.16098 0.15920
Notes:
rln 1978, Califomia voteri passed Proposition l3,rhich set the property tax rate at 1.00%. This 1.00% is shared by all taxing agencies ltlthin wiich the subject property resides. ln addition to the 1.00% fxed amount, iroperty olrn;rs aae charged taxes as a percentage ofassessed property values forlhe payment of any voter appro!€d bonds.
,Ovedapping rates are those oflocaland county govemments that apply to prop€rty owners within the City.

Not alloverlapping rates apply to allcity property oltriers. rThe City's share ofthe 1.000/6levy is based on the City's share ofthe generalfund lax rale area with the largest net taxable value v/ithin lhe City. ERAF general fund tax shifts may nol be included in tax ratio igures.
lRedevelopment Rale is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per Califomia State statute. RDA direct and ovedapping rates are applied only to the inc.emental propeny values. The approval of ABX126 eliminated Redevelopment from lhe state ot califomia tor the fiscalyear 201213 and years lhereafrer.
5Total Direct'Rate is the r,Eighted average of all individual direct rates applied by the City/Agenry preparing lhe statistical sectron informalion and excludes revenues derived ftom aircrafr. Beginning in 2013/14 the Total Direcl Rate no longer includes revenue generated from the former aedevelopment lax rate areas' Challenges to recognizi enforceable obligations are assumed lo have been resolved during 2012/13 For the purposes ofthis report, residual revenue is assumed to be distributed to the City/Agency in the same proportrons as general fund re\renue.
't02
Rate per S100 ol taxable value

1.00000

0.01045

0.01 126

0.03875

0.07348

0.06396
Total Direct Rate
201 8/19 2019120 2020121 202',1122 2022123 2023124 2024125 '1.00000

0.03367

0.01658

0.0567E

0.071 'l l

0.04048

1.00000

0.03303

0.01895

0.051 33

0.07990

0.05641

1.00000

0.03385
o.o1771

0.05005

0.06737

0.04659

1.00000

0.03861

0.01731

0.05356

0.06804

0.01250

1.00000

0.03124

0.01484

0.05350

0.05905

0.00000

1.00000

0.03425

0.0131 5

0.05373

0.04268

0.00000

1.00000

0.03326

0.01005

0.05315

0.06543

0.00000
1 .2186'1 1 .23961 1 .2'1556 1 19002 '1.15863 ',|.',14382 1.',16189

0.18729 0.18729 0.18729 0.18729 0.',18725 0.18729 0.18729

0.16019 o.1600l 0.16721 0.',16671 0.16702 0.',16689 0.16685 103

CITY OF TEHACHAPI

PRINCIPAL PROPERTY TAX PAYERS
Current and Nine Years Ago

FISCAL YEAR END
2025 2016
Owne r
o/o of Net Owner % of Net
Walmart
Tehachapi lnvestment LLC
Yoo Family Credit Trust
Loves County Stores of CA
Evergreen Hospitality lnc
Pennzoil Quaker State
Tehachapi Lodging
Pilot Travel Centers LLC
OT Sm owner A
Home Depot USA lnc
$ 23,501,611
21 ,872,908
15,689,086
'13,664,679
12,636,429
12,067,370
'12,043,'188
10,710,366
10,671 ,000
'10,625,919
Chuck and Hyon K Yoo
Home Depot USA lnc
Loves County Stores of CA
Chemtool lnc
Evergreen Hospitality
Emster Xlll LLC
ABS California o/Albertsons
Benz Sanitation lnc
Mel & Beverly Rubin Trust
Tehachapi Orchard LLC

2.17 2.02

1.45 1 .26

1.17 1.11

1.11 0.99

0.98 0.98
$ 12,998,800
9,558,327
9,217,085
9,045,603
8,7',14,642
8,366,708
7,1 31 ,1 09
6,676,716
6,5E1 ,138
5,803,4'18

2.06 1.51
1 .46

1.43 1.3E

1.32 1.'l 3
L06

1.04 0.92
Top Ten Total 143,482,556 13.23 ToP Ten Total
Total Taxable Year 1,084,245,O27 lOO% Total Taxable Year Source: Kem County Assessor Combined Tax Rolls. The SBE Non unitary Tax Roll and The HdL Companies E4,093,546 ',l3.31
631,308,295 100%
104
Value Value

CITY OF TEHACHAPI

PROPERW TAX LEVIES & COLLECTIONS
Last Ten Fiscal Years
Fiscal Year End Tax Levied
Collected within FY of Levy Total Collections to Date
Amount Percent of Levy Amount Percent of Levy
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
858,997
911.926
1,000,380
1,118,556
1 ,240,785
1,392,651
1 ,365,312
1,373,494
1,605,507
'1,178,714
858,997
911,92E
1,000,380
1,1 18,556
1,240,785
1,392,651
'l ,365,312
1,373,494
1,605,507
1,178,714
100o/o
1000/0
100Yo
101o/o
100%
100%
1000k
100%
100%
100%
858,997
911,928
1,000,380
't,1'l E,556
1,240,785
1,392,651
1 ,365,312
1,373,494
1,605,507

1.178,714
100%
1000/o
100vo
100vo
100yo
100%
100%
100vo
100vo
1 00%
Notes: Kern Counly utilizes the Teeter Plan for leyy and distribution wtlich means thal lhe City receives full payment for tares levied each year while the Counly retains all penalty, inlerest and delinquent taxes, \xhen collected. This method guarantees distribution of 100% ofthe assessments levied to the taxing entity.

Source: Kern Counly Auditor Controller's Oflice
tuc

CITY OF TEHACHAPI

RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental
Activities
Business Type Activities
Leases Notes Payable Department of
Transportation
State Revolving
Fund
Fiscal Year
End
Leases
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Sourcer City of Tehachapi
1 ,22't ,632
1,025,445
't,406,877
1 ,237 ,150
1 ,1 1 9,57'l
928,262
920,7lE
719,295
607,289
438,250
124,271
118,207
233,824
211 ,712
246,31 5
211,900
2 35,949
167,603
1 00,1 03
62,1 39
1E,550
6,690
1,767,860
1 ,677,352
1,584,491
1 ,489,215
't ,391 ,462
'1,291,166
1,188,266
1,082,689
974,367
863,228
466,000
233,000
tuo
USDA Loan Revenue Bonds
(net of Discount)
Total Primary
Government
Percentage of
Personal lncome
Per
217 ,100
211,100
204,900
198,400
191 ,600
184,500
177,100
169,300
161,200
'152,700
2,355,249
2,209,199
1,718,149
1,167,099
605,000
5,704,662
5,247,993
5,148,241
4,303,576
3,553,948
2,615,830
2,988,033
2,371,886
't,842,955
1 ,516,317

4.O20k

3.59o/o

4.12%

5.200/0

6.78o/o

9.740/o

9.11o/o

11.88Vo

16.160lo
'19.070/o
Capita
467
427
419
315
279
218
241
198
166
132
107
Business Type Activities

CITY OF TEHACHAPI

RATIO OF GENERAL BONDED DEBT OUTSTANDING
Last Ten Fiscal Years
Fiscal Year
End
Outstanding General Bonded Debt
Tax Allocation Bond
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Oebt
Debt
Debt
Debt
Debt
Debt
Debt
Debt
Oebt
Debt
No General
No General
No General
No General
No General
No General
No General
No General
No General
No General
Bonded
Bonded
Bonded
Bonded
Bonded
Bonded
Bonded
Bonded
Bonded
Bonded
Source: City of Tehachapi
108

CITY OF TEHACHAPI

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES
Last Ten Fiscal Years
2024-25 Assessed Valuation: $1,084,245,027
Overlappinq Tax and Assessment Debt
Kern Comm College District Safety, Repair and lmprvmt District Kern Comm College District School Facilities lmprvmt Districl No Tehachapi Valley Healthcare District
City of Tehachapi 1915 Act Bonds
Total Overlapping Tax and Assessment Debt
Direct and Overlappinq General Fund Debt
Kern County General Fund Obligations
Kern County Pension Obligation Bonds
Kern County Board of Education Certificates of Participation Kern Community Colleqe Oistrict General Fund Obligations Kern Community College District Benefit Obligation
Tehachapi Valley Recreation and Park District General Fund City of Tehachapi Lease Obligations
Total Direcl and Ovedapping General Fund Debt 2,944,499 7,716,000 100.000% 7,716,000
438,250
25,117 ,211
$ 25,555,461 (3)
Total Debt
6t30t25
City's Share of
Debt 6/30/25
$77,174,970
357,295,000
54,044,979
2,180,000
90,626,026
66,299,737
28,575,000
19,431 ,000
70,460,000
565,727
438.250

0.904% $

0.898%

16.2990/0
100.000%
o.8920k
o.8920k
o.8920/L

0.808%

22.142%
100.000%
697,662
3,208,509
8,808,791
2,'180,000 (r)
14,894,962
808,384
59'1,394
254,889
157 ,OO2
569,317
125,263
438,250
Overlappino Tax lncrement Debt (Successor Aoencv)
Total Direct Debt(3)
Total Overlapping Debt
Combined Total Debt
Ratios to 2024-25 Assessed Valuation
Total Overlapping Tax and Assessment Debt
Total Direct Debt ($438,250)
Combined Total Debt
Ratios to Redevelopment Successor Aqencv lncremental Valuation ($423.355,889) Total Overlapping Tax lncrement Debt 1.82%
Notes (1) The percentage of ovedapping debt applicable to the oty is estimated using ta€ble assessed prope.ty value.

Applicable percentages were estrmated by determinrng the portion of the ovedapping distnct's asseg'sed value that rswithrn the boundenes of the oty druded by the distnct's tolal taxable assessed value. (2) Defaulted pnnopal amount. (3) The City ol Tehachapi does not have general obligatron debts supported by property tax Excludes tar and revenue antiopation notes enterprise revenue mortgage revenue and non_bonded capltal leas,e obligations.

Source: Calilomia Municipal Statrstics, HdL
109
Percentage
Applicablell)

1.37%
o.o40/o

2.360/0

CITY OF TEHACHAPI

LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
2015/16 2016t',t7 2017 t18 2018t19
Assessed Valuation
Debt Limit Percentage'
Debt Limit
Total Debt Applicable to Limit
General Obligation Bonds
Legal Debt Margin
Total debt applicable to limit as a
percentage of debt limit
$ 631,606,295
1504
$ 656,741,206
15o/o
$ 728,319,215
'150k
$ 741,782,560
150k

94.741.244 98,511,181 109,247,882 1',t1,267,384
_!__3!11L4!_ _9.__9qglJ_ql_ _9_l 0s]47_,882_ _$__11_1_,?9L9!1- 1Yo 00/o 06/0 oo/o
Notes: Section ,t305 of the Calitomia Go\rernment Code provides that: "A city shall not incur an indebtedness for public improvements wt ch erceeds in the aggregate 15% of the assessed value of all real and p€Bonal property ol the city. \ /tthin the meaning ofthis seclion 'indebtedness' means bonded indebtedness of the cjty payab{e from the proceeds of taxes upon taxable property in the cjty."
Source HdL, Coren & Con€
110
2019t20 2020t21 202'122 2022t23 2023t24 2024t25
$ 799,732,698
15%
$ 846,381,664
15%
$ 884,E34,569
15%
$ 952,532,806
15o/o
$ 1 ,026,489,223
150k
$ 1,0u,245,027
150k
'fi9,959,905 126,957,250 132,725,1E8 142,879,921 153,973,383 162,636,754 $ 119,959,905 $ 126,957,250 $ 132,725,188 j_L42379,e21 _9__l_!!fz!$!_ _$__l!?899&4 0lo 00/o 0% 00/o 0% oyo
111

CITY OF TEHACHAPI

PLEDGED REVENUE COVERAGE
Last Ten Fiscal Yeais
Water and Wastewater Fund Revenue Pledged Debt
Fiscal
Year End
Revenue Operating
Expenses
Net
Available
Revenue
Coverage
Ratio
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
4,393,052
5,287,544
4,777,736
6,086,790
5,460,958
5,337,415
5,222,588
5,788,571
6,370,325
6,295,766
3,629,991
3,758,052
3,627,O74
4,233,930
4,340,538
4,724,072

4.443,O21
4,979,501
5,703,448
6,036,338
763,061
1 ,529,492
1,150,662
1,852,860
1 ,120,420
613,343
779.567
809,070
666,677
259,428
396,387
395,711
727 ,741
766,762
758,9'13
152,195
152,175
't52,242
152,191
152,227

1.93 3.87
1 .58

2.42 1.4E

4.03 5.12

5.31 4.3E
1 .70
Source: City of Tehachapi
112
Debt
Service

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF TEHACHAPI

OEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Fiscal Year
Ended
June 30
Personal
lncome
Per Capita
Personal
lncome(3)
Unemployment
Rate (a)
Population trt 1in Thousands) (2)
Median
Ag" tu'
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
12,217
12,280
't2,299
13,668
12,7 58
12,008
12,37 5
11,960
11 ,092
1',t ,476
229.557
1 E8,549
212,253
223,930
241 ,077
254,868
272.265
281,666
297 ,763
2E9,216
18,789
15,354
17 ,260
16,383
18,896
2'l ,224
22,001
23,550
26,844
25,201
7 .8o/o
7 .90/o

6.7o/o

4.8%

5.',1o/o

9.5%
11 .70/o

6.5%
7 .8o/o

9.2%

35.7 37 .7
37 .7

38.2 37.6

37.4 37.8

38.1 38.3

39.2 (1) Population: Califomia State Oepartment of Finance (2) (3) (5) (6) & (7) lncome, Age and Education Data: US Census Bureau, mosl recent American Community Survey
(4) Unemployment Data: Califomia Employment Development Department
Sources: HdL, Coren & Cone
113
H igh School oeqree
(6)
% of Population
Age 25+ with
% of Population
Age 25+ with
Bachelor's oegree
(')
7 4.10k
7 5.60/o

75.1Yo
7 5.sVo

78.30k
77 .2o/o

80.2v"

80.6%

78.7%

9.3o/o
E.E%

9.5%

10.10k

12.4%

12.8%

14.7yo
't 6.9%

14.30k

14.5%
114

CITY OF TEHACHAPI

PRINCIPAL EMPLOYERS
Current and Nine Years Ago

FISCAL YEAR END
2025 2016
Number of
Employees
Percentage of
Top 10
Employment
Number of
Employees
Percentage of
Top 10
Employment
Rank Rank
Employer
Pearce Renewables
California Conectional lnstitution
Tehachapi Unified School Oistrict
Adventist Health Tehachapi Valley
Walmart
Home Depot
Albertson's
city of Tehachapi
Savemart
Waste Management
Total Top 10 Employers
1?14
1052
616
376
240
150
120
94 85
32 300k
260
1svo
90k
60/o
4o/o
3Yo
2%
2o/o
1%
1 3
4 5
6 7
8 Y
10 No data is available for the year
20',16
3979
115
Note: The totalemdoymenl number in 2015/16 is not available.

Source: City oI Tehachapi

CITY OF TEHACHAPI
FULL AND PART.TIME CITY Ei,IPLOYEES FUNOED BY FUNCTION
Last Ten Fiscal Years
FulFtime / Funclion
Airport
Comm Development
Development Services
Fire
General Government
Police
Public Works
Wastewater
Water
Full-time Total
Part-time / Function
Airport
Comm Development
General Government
Police
Public Works
Wastewater
Water
Part-Time Total

FISCAL YEAR END
2016 2017 2018 2019 2020 20?1 2022 2023 2024 2025
0 0 0 0 0 0 0 0 0 0
1 1 0 I 1 1 1 1
,1
1 o 7 7 7 7 6.84 6.5 599 7.75 8.36
0 0 0 0 0 0 0 0 0 0
11 11 't1 't2 11 12 11 .46 12 12.65 13.09
25 25 24 25 26.78 26 26.89 29.07 29.99
'10 10 10 IJ 14 10.48 13.51 14.74 16.68 20.17
35 3 3 3 3.07 2.69 2.88 279
45 4.5 4 4 4 4 4.83 5
ot 6'1 61 64 b5 64.1 65.54 68.14 75.03 80.4
04 0 0 0 0 092 0.93 0.u 1 1
0 0 0 0 0 0 0 0 0 0
2 4 4 7 I 6.12 7.65 8.03 8.1 1 10.57
0 0 1 2 0 0 0 0 0 0

2.24 4 3 6 7 4.44 4.64 2.67 'l .17 1 .76

0.63 0 0 0 0 0 0 0 0 0

0.73 0 0 0 0 0 0 0 0 0
15 16 11 13.22 1 1.54 10.28 TEEFI t) I I .48 E
GRANO TOTAL 79 78.76 79.68 EFTN EET'I Ere67 69 81 75.58 @@ 116
Source: City of Tehachapi

CITY OF TEHACHAPI

OPERATING INDICATORS BY FUNCTION
Last Ten Fiscal Years
Police
Calls for Service
Felony Arrests
Misdemeanor Arrests
Property Loss
Property Recovered
Tratfic Citations
Traffic Accidents
Parking Citations
Wastewater
Max. Capacity Million Gallons per Day
Daily Avg Treated Wastewater Million Glns
Airport
Gallons of Jet A Fuel Sold
Transit Dial-A-Ride
Ridership
Mileage
Days of Service
Cost per Rider
Subsidized Cost per Rider
Water
Water Pumping Capacity Acrefeet
Water Pumped Acre-feet
Water Sold Acre-Feet
' Due to change in reporting systems, this information is no longer available Source: City of Tehachapi

FISCAL YEAR END
2016 2017 2018 2019

1.25 1.25 1.25 1 .25

0.81 0.80 0.78 0.75
5,81 5 9,069 16,951
6,445 6,321 6,916 7,415
170 302 '1 81 243
491 441 439 549
$ 531,857 $ 51 3,31 6 $ 358,163 s 404,772
$ 137,815 $ 1 13,831 $ 178,232
tb I 170 175
50 102 83 116
36 123 107 260
5,243 4,637 5,730
24,999 22,921 '18,331 16,867
297 305 307 304
$ 38.81 s 46.72 $ 41 .23 $ 47 .77
$ 37.90 s 45.62 $ 40.13 $ 46.66
'1,995 1.945 1,891 I ,847
I ,692 1,855 1,935 1 ,842
1 ,264 1,568 1 ,664 1,664
'117
E,657
s 1E4,211
b,Jb6

FISCAL YEAR END
2020 2021 2022 2023 2024 2025
I,782 7 ,494 8,659 8,193 7 ,849 8,022
221 282 't70 205 203 208
413 496 314 559 520 386
$ 650,688 $ 588.101 N/A. '
$ 198,463 $ 108,287 N/A.' N/A--
86 100 192 255 560
111 104 95 124 112 117
264 128 97 87 142 1 ,013
1 .25 1.25 1.25 1 .25

0.66 0.72 0.64
29,027 31,998 41 ,973 37,759 56,699 62,114
4,385 3,338 3,351 3,408 3,155 4,992
15,007 1 1.862 1',t ,128 13,387 12,117 14,578
308 302 303 304 307 305
$ 59.47 s 91 .46 s 72.57 s 87.15 $ 57.99
s 58.27 s 90.19 $ 70.46 $ 71.51 s E6.68 $ 57.26
1,879 2,016 2,352 2,982 2,296
'1,888 2,050 2,090 1,741 1,732 2,170
1,648 1,835 't ,854 1 ,516 1,550
118

1.251 1 .2sl

0.731 u_o/ 0.66 |
$ 71.65
1 ,993
2,092

CITY OF TEHACHAPI

CAPITAL ASSETS BY FUNCTION
Last Ten Fiscal Years
Water
Wells
Storage Tanks
Booster Pumps
Transmission Lines (miles)
Fire Hydrants
Wastewater
Wastewater Treatment Plant
Sewer Lift Station
Recycled Water Pump Station
Sanitary Sewer Lines (miles)
Airport
Runway (feet)
Fuel Station
City-Owned Hangars
Parks
Parks
Public Works
Streets (lane miles)
Trafflc Signals
Police
Station
General Govemment
City Hall
Development Services Building
Visitor Center
Source: City of Tehachapi

FISCAL YEAR END
2016 2017 2016 2019 2020 2021 2022 2023 2024 2025
7 7 7 7 7 7 7 7 7 7
5 5 5 5 5 5 5 5
3 3 3 3 3 3 3 3 3 3
50 50 50 50 50 50 50 50 50 50
450 450 450 450 450 450 450 450 450
1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1
1 1 1 I 1 1 1 1 1
40 40 40 40 40 40 40 40 40 40
4035 4035 4035 4035 4035 4035 4035 4035 4035 4035
1 1
,|
1 1 1 1 1 1 1
6 6 7 8 8 9 I I 12
162 162 162 162 162 164 164 I O.t
2 3 4 4 5 5 5 5
5 5 5 5 5 5 al 6
1 1 1 1 1
,l
1 1 1 1
1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1
119
162 toz
5 5
450
1 1
1 TY O I

TEHACHAPI

COUNCIL REPORTS
MEETING DATE: MARCH 2,2026 AGENDA SECTION: FINANCE DIRECTOR

APPROVED

DEPARTMENT H

CITY MANAGER
TO:

FROM:

DATE:

SUBJECT:

HONORABLE MAYOR POGON.CORD AND COUNCIL MEMBERS

HAMED JONES, FINANCE DIRECTOR
FEBRUARY 23,2026
COMMITTED FUND BALANCE FOR FY 2025-26

BACKGROUND
ln February 2009, the Governmental Accounting Standards Board issued its Statement No. 54 (GASB 54), Fund Balance Repofting and Govemmental Fund Type Definitions.

The objective of this statement is to improve financial reporting and to help with understanding the fund balance by presenting the fund balance in five new components.

The five new components are: Non-spendable Fund Balance, Restricted Fund Balance, Committed Fund Balance, Assigned Fund Balance and Unassigned Fund Balance. ln order to comply with GASB 54 requirements, the City adopted a Fund Balance Policy ("Policy") on June 20,2011, which requires Council to approve the Committed Fund Balance on an annual basis by adopting a resolution. Since then, two amendments were made to the original resolution 28-1 1. The Committed Fund Balance is dedicated for the purpose of emergency contingency and is calculated as follows:
"The General Fund Emergency Contingency Fund is calculated using the prior fiscal year General Fund total expenditures. From the total expenditures, subtract the following expenses:

1. total capital project costs,

2. total operating transfers out, and

3. expenses reimbursed by grants
Then the difference is divided by 12 months and then multiplied by 2 months." The resolution is the City Council's formal commitment of an amount of fund balance to be set aside specifically for emergency contingencies defined as a state or federal state of emergency or declaration of a local emergency. The amount is set at $2,169,353 for

CALIFORNIA
fiscal year 2025-26. lt should be noted that this amount and/or commitment may be changed with the adoption of a new resolution by the council.

FISCAL IMPACT
None.

RECOMMENDATION
Adopt Resolution establishing the Committed Fund Balance at $2,169,353 for fiscal year 2025-26 and repealing Resolution No. 31-25.

Page 2 of 2 ends

Tehachapi City CouncilMarch 2, 2026

Tehachapi City Council
March 2, 2026