Agenda packet — Tulare City Council, December 16, 2025 (part 3 of 3)

10.14.25tg
Exhibit B – Insurance Requirements
CSJVRMA Category 1 Non-Technology Professional Services Prior to commencement of the Services, Consultant shall take out and maintain at its own expense the insurance coverage required by this Exhibit B. Consultant shall cause any subcontractor with whom Consultant contracts for the performance of Services pursuant to this Agreement to take out and maintain equivalent insurance coverage. Said insurance shall be maintained at all times during Consultant’s performance of Services under this Agreement, and for any additional period specified herein.
i. Commercial General Liability.
a. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. Consultant’s general liability policies shall be primary and shall not seek contribution from the City’s coverage, and be endorsed using Insurance Services Office form CG 20 10 (or equivalent) to provide that City and its officers, officials, employees, and agents shall be additional insureds under such policies. For construction projects, an endorsement providing completed operations coverage for the additional insured, ISO form CG 20 37 (or equivalent), is also required.
b. Any failure to comply with reporting provisions of the policies by Consultant shall not affect coverage provided the City.
c. Coverage shall state that Consultant insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. d. Coverage shall contain a waiver of subrogation in favor of the City.
ii. Business Automobile Liability. Consultant shall provide auto liability coverage for owned, non-owned, and hired autos using ISO Business Auto Coverage form CA 00 01 (or equivalent) with a limit of no less than one million dollars ($1,000,000) per accident.
iii. Workers’ Compensation and Employers’ Liability – Statutory. Consultant shall maintain Workers’ Compensation Insurance and Employer’s Liability Insurance with limits of at least one million dollars ($1,000,000). Consultant shall submit to City, along with the certificate of insurance, a waiver of subrogation endorsement in favor of City, its officers, agents, employees, and volunteers. Proof of Worker’s Compensation is not required if Consultant provides written verification that they have no employees. iv. All Coverages.
a. It shall be a requirement under this agreement that any available insurance proceeds

Page 10 of 10 ends

10.14.25tg
broader than or in excess of the specified minimum insurance coverage requirements and/or limits shall be available to the Additional Insured.

Furthermore, the requirements for coverage and limits shall be (1) the minimum coverage and limits specified in this Agreement; or (2) the broader coverage and maximum limits of coverage of any Insurance policy or proceeds available to the named insured; whichever is greater. No representation is made that the minimum insurance requirements of this agreement are sufficient to cover the obligations of the Contractor under this agreement.
b. Each insurance policy required by the agreement shall be endorsed to state that coverage shall not be suspended, voided, cancelled, or reduced in limits except after thirty (30) days' prior written notice has been given to the City, except that ten (10) days’ prior written notice shall apply in the event of cancellation for nonpayment of premium.
c. All self-insurance, self-insured retentions, and deductibles must be declared and approved by the City.
d. Evidence of Insurance - Prior to commencement of work, the Consultant shall furnish the City with certificates, additional insured endorsements, and waivers of subrogation evidencing compliance with the insurance requirements above. The Consultant must agree to provide complete, certified copies of all required insurance policies if requested by the City.
e. Acceptability of Insurers - Insurance shall be placed with insurers admitted in the State of California and with an AM Best rating of A- VII or higher. v. Ancillary Coverages.
a. Professional Liability Insurance. Contractor shall maintain professional liability insurance that insures against professional errors and omissions that may be made in performing the Services to be rendered in connection with this Agreement, in the minimum amount of two million dollars ($2,000,000) per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement, and Contractor agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement.

RESOLUTION 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TULARE
APPROVING FISCAL YEAR 2026 BUDGET AMENDMENT
WHEREAS, on June 17, 2025, the City Council of the City of Tulare adopted Resolution 2025-35 adopting the Fiscal Year 2026 Budget following a public hearing; and WHEREAS, from time to time, it is necessary to amend said budget; and WHEREAS, budget amendments must be made through adoption of a resolution; and WHEREAS, the City Council desires to make an amendment to said budget.

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

Section 1. The following amendment to the Fiscal Year 2026 Budget is hereby approved and authorized:
a. Appropriate $271,084 from the Parks/Recreation Facilities & Equipment DIF Fund (215) fund balance to expense Object 5223 “Studies, Plans, & Reports” within the same Fund 215.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Tulare this 16th day of December 2025, by the following vote:

Ayes:

Noes:

Absent:

Abstain:

Patrick Isherwood, President of the Council
and Ex-Officio Mayor
ATTEST:

Marc Mondell, City Clerk
By Melissa Wilcox, Chief Deputy City Clerk
The presence of an electronic signature certifies that the foregoing is a true and correct copy as approved by the Tulare City Council.

Staff Report
Meeting: City Council
Date: December 16, 2025
Department: City Clerk
Submitted by: Melissa Wilcox, Chief Deputy City Clerk
Agenda Title: Board, Commission, and Committee Appointments

RECOMMENDED ACTION
Appoint two members to the Board of Public Utilities Commissioners, three members to the Committee on Aging, three members to the Measure I Citizen Oversight Committee, three members to the Parks and Recreation Commission, and two members to the Planning Commission for terms beginning January 1, 2026 and expiring on December 31, 2029.

SUMMARY
The City Council is requested to consider appointments to fill upcoming vacancies on five CouncilAppointed Bodies for terms beginning January 1, 2026, and expiring December 31, 2029. These include:
• Board of Public Utilities Commissioners (2 seats)
• Committee on Aging (3 seats)
• Measure I Citizen Oversight Committee (3 seats)
• Parks and Recreation Commission (3 seats)
• Planning Commission (2 seats)
Staff contacted all 13 current members whose terms are set to expire and advised them of the need to submit a new application should they wish to be considered for reappointment. Of those contacted, two members, Ken Espinoza (Committee on Aging) and Mike Jamaica (Parks and Recreation Commission), have indicated they will not be seeking reappointment.

Descriptions of each Council-Appointed Body are as follows:
• Board of Public Utilities Commissioners (BPU): Established by the City Charter, the BPU regulates and manages the City’s utility divisions, including Solid Waste, Water, Sewer, and Wastewater. Pursuant to Section 52 of the Charter, the five-member board is appointed by the Mayor and confirmed by the City Council. Meetings are held on the first and third Thursdays of each month at 4:00 p.m. in the Council Chamber. The members with terms expiring on December 31, 2025 are:
o Blake Wilbur
o Ray Fonseca
• Committee on Aging: A five-member advisory body that provides guidance to the Community Services Department on matters affecting senior citizens, including recreation, social, and nutritional services. Members are appointed by the City Council, by seat, and meet monthly at the Senior Community Center. The members with terms expiring on December 31, 2025 are:
o Ken Espinoza (Council Seat 3) (not seeking reappointment) o Jevon Price (Council Seat 4) (seeking appointment to Planning Commission) o Jackie Zupp (Council Seat 5)
• Measure I Citizen Oversight Committee: This five-member committee ensures transparency and accountability in the use of Measure I funds. Members are appointed by the City Council, by seat, and meet twice annually, once to review the mid-year budget and once to review the annual audit report. The members with terms expiring on December 31, 2025 are:
o Joel Robertson (Council Seat 3)
o Jose Ruiz-Salas (Council Seat 5) (no response or application) Item #: 8.1
General Business
o Richard Dituri (Council Seat 1) (no response or application) • Parks and Recreation Commission: A seven-member commission that advises on recreational programs, park development, and urban forestry matters. Each Councilmember appoints one member, with two additional members appointed at-large. Meetings are held monthly at the Claude Meitzenheimer Community Center. The members with terms expiring on December 31, 2025 are:
o Craig Hancock (Council Seat 5)
o Manuel Caceras (at-large appointment)
o Mike Jamaica (at-large appointment) (not seeking reappointment) • Planning Commission: Established by the City Charter, the Planning Commission is responsible for decisions related to land use, zoning, subdivisions, and environmental review. The fivemember commission is appointed by the City Council, by seat, and meets on the second and fourth Tuesdays of each month at 5:30 p.m. in the Council Chamber (new day and time effective January 2026). The members with terms expiring on December 31, 2025 are:
o Shauna Guerrero (Council Seat 1)
o Jocelyn Limas (Council Seat 3)
To be considered for appointment, applicants must reside within the city limits except for the Aviation Committee, Parks and Recreation Commission, and Planning Commission. For these three CouncilAppoint Bodies, applicants may be considered if they live within the sphere of influence as long as a majority of the members reside within the city limits.

Staff requests that Council review the applications provided and make appointments in accordance with the appointment process for each Council-Appointed Body.

FISCAL IMPACT & FUNDING SOURCES
There is no fiscal impact associated with this action.

ENVIRONMENTAL REVIEW
This action does not constitute a “project” pursuant to the California Environmental Quality Act (CEQA).

POTENTIAL CONFLICT OF INTEREST
Staff is not aware of any conflicts of interest.

LEGAL REVIEW
This item does not require legal review.

PUBLIC NOTICE
This item does not require a public hearing and was noticed as a part of the agenda.

ALTERNATIVE ACTION

1. Approve with changes

2. Deny

3. Table
Delaying appointments may cause quorum issues for meetings of the Council-Appointed Bodies.

ATTACHMENTS

1. Applications
Reviewed/Approved:

From: Jevon Price
To: Melissa Wilcox
Cc: Diana Smith; Melissa Wilcox
Subject: Re: Term Expiration and Reappointment Application – Action Required by December 5, 2025 Date: Sunday, September 28, 2025 11:00:37 PM
Attachments: image0.png
I resubmitted my application for next term, but it keeps bouncing back. Don’t want to be submitting it dozens of times.

Here’s my statement in case you need it:

I am honored to currently serve as Chair of the City of Tulare Committee on Aging and as an elected Director of the Tulare Local Health Care District, where I was unanimously appointed Treasurer. In these roles, I have focused on strengthening transparency, improving community health services, and advocating for the needs of our residents. My background in organizational leadership and public service has prepared me to help guide critical decisions that impact Tulare’s future.

I am applying to serve on the Planning Commission because I believe thoughtful planning and responsible growth are essential to our city’s long-term well-being. I am committed to ensuring that Tulare’s development reflects both fiscal responsibility and community priorities, while creating opportunities for families, businesses, and older adults alike. It would be a privilege to bring my experience and dedication to this important work.

Jevon Price, MSIOP, BS, CSSGB
LinkedIn.com/in/jevonprice
On Sep 25, 2025, at 11:43, Melissa Wilcox <[email protected]> wrote:

I hope this message finds you well. I am writing to inform you that your current term on City of Tulare board, commission, or committee is set to expire on December 31, 2025.

If you wish to be considered for reappointment, you are required to submit a new application no later than December 5, 2025. Applications can be completed and submitted online at:
www.tulare.ca.gov/committeeapp.

If you have any questions or need assistance with the application process, please feel free to reach out to me directly.

On behalf of the City of Tulare, thank you for your dedication and for generously volunteering your time to serve our community. Your contributions help make RESIDES IN DISTRICT 1
Tulare a great place to live, work, and visit.

Best,
Melissa Wilcox (formerly Hermann), CMC, CPMC
Chief Deputy City Clerk
[email protected]
559.684.4200 | C: 559.331.3736
411 East Kern Avenue, Tulare, CA 93274
www.tulare.ca.gov
<image001.png>
My name and email address have changed. Please update my contact information in your records accordingly.

This email may be subject to the California Public Records Act, and as such, may therefore be subject to public disclosure unless otherwise exempt under the Act.

Staff Report
Meeting: City Council
Date: December 16, 2025
Department: City Manager
Submitted by: Marc Mondell, City Manager
Agenda Title: Amphitheater Concert Series Annual Report and Contract Amendment.

RECOMMENDED ACTION
Receive a presentation on the 2025 Adventist Health Amphitheater Concert Series and approve and authorize the City Manager to execute a one-year extension to the Zumwalt Park Amphitheater Operator Agreement through a Third Amendment with Spade Entertainment, subject to legal review.

SUMMARY
On July 18, 2023, City Council approved the Zumwalt Park Amphitheater Operator Agreement with Spade Entertainment (Operator) which included a three-year term which is set to expire on August 16, 2026, unless otherwise extended. On August 6, 2024, City Council approved the First Amendment to the Agreement with the Operator to address naming rights, roles and responsibilities. On January 7, 2025, City Council approved the Second Amendment to the Agreement with the Operator to address unanticipated financial impacts associated with initial promotional concerts.

The venue was opened in late Spring 2025, and the first inaugural concert series was held from May through September with a four-day Christmas event in mid-December. Overall, the concerts were very successful in the sense that the Operator was able to attract relevant talent, top-notch production, and provided an outstanding customer experience which improved from one show to the next. The City and Operator learned much about the venue, its operations, and its guests from the first year of operations.

Unfortunately, ticket sales were not as strong as they needed to be for revenues to offset expenses.

Please recall, the primary reason the renovation of Zumwalt Park was pursued was to help Downtown redevelopment through the attraction of 35,000 to 50,000 annual attendees and guests to the concert series which in turn would help stimulate business development through patronage. This appears to be working based on the results of the attached Economic Impact Study. The Study is based on cell phone usage data and indicates the following:
• 11,400 attendees including 73,000 guests and 42,000 unique visits. • Approximately 10% of attendees were from the City of Tulare. • Attendees came from 12 states resulting in approximately 250 hotel nights. • Approximately $250,000 generated in off-site retail sales including $10,000 in direct tax revenue. • Attendees and guests patronized many local businesses.

What the Study doesn’t indicate is how many of the new Downtown businesses or those to come have or will do so in-part because of the Zumwalt Park renovation project and the ongoing revenues that will be generated to the City from those projects. When management originally presented this project to City Council it advised that the goal should be for the City to recoup its annual operational expenses from the concert series, that it is possible that may never occur but that we would need three years of operations to make that determination.

Management has also advised that several cities across the country annually subsidize concert series and other related uses to attract visitors to their downtown areas which in turn generate revenue to local businesses and the city over time. For example, it is estimated that the City of Visalia subsidizes the convention center at over $1,300,000 annually and the minor league ballpark at over $700,000 annually Item #: 8.2
General Business
to attract visitors to their downtown. For the first promotional concerts the City of Tulare utilized $400,000 in future, naming rights revenue from Adventist Health to subsidize operations.

Because the term of the current agreement is set to expire on August 16, 2026, and next year’s concert series and events are expected to run from April through December, management is recommending Council to approve a one-year extension to the operator agreement (August 16, 2027) with the following additional considerations for the 2026 season:
• City to waive the cost of police overtime
• City to waive the sponsorship fee
• City to establish the 2026 artist deposit account ($250,000) • City to allocate $75,000 for marketing
• City to allocate $175,000 for production, janitorial, and security.

The key to increasing concert series revenues is to increase ticket sales including local ticket sales from 10% to 25% and approximately double overall ticket sales. The goal is for concert revenues to cover concert expenses. The Operator believes their ticket pricing is consistent with other markets adjusted to Tulare and therefore increased ticket sales rather than increased pricing is the recommended path. To improve on ticket sales, the Operator has indicated it will focus its marketing dollars on methods that were proven to work in 2025 (i.e., social media, radio advertising).

In addition, the Operator has indicated its desire to enter into an agreement with the IncludUs Labs on an event (A Posada in December 2026) and to assist with overall marketing to the Hispanic-Latino community (see attached proposal). IncludUs has extensive experience in working with the LatinoHispanic communities through special events and in partnership with local governments and the private sector to increase citizen awareness and engagement. While based in Washington DC, IncudUs has been active in the Central Valley and has had success in increasing attendance at local events. The City would stay actively involved and pay directly ($50,000) for these services.

In management’s opinion, the Operator performed well for the inaugural concert season and there is likely to be an increase in ticket sales and other revenues (i.e., sponsorships, food and beverages, etc.) as more people become aware of the venue and therefore management believes the additional investment is well worth the use of unobligated surplus funds.

FISCAL IMPACT & FUNDING SOURCES
Management is not recommending use of ongoing recurring revenues or current General Fund operational dollars to cover this expense. Rather, the City recently received a one-time federal tax credit and sold a surplus property to Caltrans for the Paige Interchange project and is recommending use of $550,000 of those net proceeds to cover these one-time expenses.

ENVIRONMENTAL REVIEW
This action does not constitute a “project” pursuant to the California Environmental Quality Act (CEQA).

POTENTIAL CONFLICT OF INTEREST
Staff are not aware of any conflicts of interest.

LEGAL REVIEW
Management is recommending approval subject to legal review in the event Council desires to change any of the proposed terms.

PUBLIC NOTICE
This item does not require a public hearing and was noticed as a part of the agenda.

ALTERNATIVE ACTION

1. Approve with changes - Council could alternatively consider other approaches to annual concert series operations, including but not limited to the following:

Option A
City staff could take over operations in which case the hiring of additional staff would be required. It is estimated that at a minimum three new full-time staff positions would be required (estimated at $225,000) plus all other expenses (i.e., artist deposits, production, etc.) including booking artists. It is management’s opinion that this approach would not only cost more money, but staff would be less efficient and effective since it does not have the same level of experience, expertise, connections, or industry knowledge as does the Operator.

Option B (1)
The City could enter a new “fixed fee” operating agreement with the Operator through which the City would receive all revenues and solely be responsible for all expenses. Under this scenario, the City would pay a fee of $150,000 annually to the Operator plus share 25% of all sponsorships. The Operator would handle alcohol sales, carry insurance, and handle the green room and artists. It is management’s opinion that this approach would not only cost more money, but staff would be less efficient and effective since it does not have the same level of experience, expertise, connections, or industry knowledge as does the Operator.

Option B (2)
The City could enter a new hybrid “fixed fee” operating agreement with the Operator which would be like Option B(1) but in addition would include one new full-time staff position at a cost of $106,000 annually and allocated 50% of time to concert group sales.

2. Deny

3. Table
If the City does not approve and execute a one-year extension, then there will likely be a delay in booking artists which may further delay or jeopardize the 2026 concert series.

ATTACHMENTS

1. Economic Impact Study

2. IncludUs Proposal

3. IncludUs Introduction

4. Third Amendment to the Agreement
Reviewed/Approved:

CITY OF TULARE
CONCERT SERIES – ECONOMIC IMPACT STUDY / VISITOR ANALYSIS DECEMBER 2025
2301 Rosecrans Ave., Suite 4140
El Segundo, CA 90245
TEL: 424-297-1070 | URL: www.kosmont.com
KOSMONT COMPANIES | 2

BACKGROUND
Kosmont & Associates, Inc. doing business as Kosmont Companies (“Kosmont”) is pleased to present this economic analysis to the City of Tulare (“City”) to estimate benefits on the commercial / retail environment in the City and downtown area from the the new Adventist Health Amphitheater’s concert series (“Project”) held during 2025, as supplemental work to the Economic Development Strategic Plan (“EDSP”). ¡ Kosmont interviewed Amphitheater operator to understand number of events/dates, ticket pricing, attendance and estimated retail sales generated on site.

Economic Benefits from Amphitheater Operations
¡ Based on the attendance, Kosmont estimated the visitor spending at Tulare hotel and retail establishments.

Placer.ai Visitor Data
¡ To the help the City get better understanding the metrics of concert visitors, Kosmont utilized Placer.ai to create a custom polygon for the amphitheater and analyze the home location of visitors and their demographic characteristics.

KOSMONT COMPANIES | 3

BACKGROUND
The Amphitheatre held 10 major events in its inaugural season, drawing over 11,400 attendees to Tulare downtown as shown below:
5/23 Los Lobos - 890
5/24 Grand Opening - 618
6/13 Lonestar w/Tyler Rich – 1,184
6/28 Clint Black w/Joe & Martina - 1,185
7/18 Toad The Wet Sprocket w/Six Pence None The Richer – 1,293 8/2 ZZ Tush w/Stevies Petty - 984
8/30 Regulo Caro & Noel Torres - 1,442
9/5 Starship w/A flock of Seagulls – 1,305
9/26 Sugarhill Gang w/Furious Five - 990
9/27 - Dokken w/Lynch Mob – 1,450
Spade estimates that City receives over $100,000 in billboard, print, and media advertising reaching across the Central Valley. Adventist Health paid the City $500,000 for naming rights for the first five years.

Arriba Latin -8.30
KOSMONT COMPANIES | 4

ADVENTIST HEALTH AMPHITHEATER

AERIAL MAP
Source: Google Maps (Accessed November 2025)
KOSMONT COMPANIES | 5

EXECUTIVE SUMMARY
¡ Major Regional Destination Event: Placer.ai estimates ~73,000 visits from ~42,000 unique visitors to the downtown core during the 2025 events. Spade has already booked 10 events for 2026, including the Beach Boys. ¡ Broad Trade Area Reach and Meaningful Visitation: Visitors come from Fresno and beyond (Spade Entertainment estimates only 10% come from Tulare, while several hundred come from 12 states, perhaps in conjunction with visits to Sequoia or Yosemite National Park). ¡ Positive Economic Impact for Many Downtown Businesses: Outlet mall retailers, gas stations and restaurants/bars are most likely to see increased sales during the weekend. Kosmont estimates over $250,000 in off-site retail spending from attendees. Hotels received modest benefit with an estimated +250 new room nights from visitors, artists and their crew for the Concert Series season. Including onsite spending the City likely receives as much as $10,000 in direct tax revenues, plus indirect taxes from new business property and other taxes. ¡ Positive Downtown Spillover Effects: Concert Series will act as a downtown “showcase” enabling many to discover new downtown businesses while attending events. Attendance is likely to increase substantially over time.

KOSMONT COMPANIES | 6
PLACER.AI VISITOR DATA
¡ Placer.ai is a mobility data provider that tracks daily movement of over 30 million people in the U.S. via anonymized mobile app data. This information reveals visitor / resident / employee travel trends to/from major events, shopping centers, major retailers and other places of interest – providing insight into store/center trade areas, hourly and daily visitation statistics, and consumer demographic characteristics. ¡ Kosmont utilized the Placer.ai platform to observe visitation trends during the 2025 inaugural concert season. The analysis is based on visits to the Downtown and Zumwalt Park (bound by E. Arrow Hwy, Euclid Ave, E. A St, and N. 3rd Ave) that lasted at least 10 minutes. It includes visits to commercial and other businesses fronting on Zumwalt Park.
¡ This analysis highlights visitor trends and analytics among visitors to the Amphitheater site for a five-month period before the first concert (May 22nd) until the day after the final concert (September 28th).

KOSMONT COMPANIES | 7

TULARE CONCERT SERIES
2025 VISITOR ANALYTICS
§ The Adventist Health Amphitheater
(“Amphitheater”) at Zumwalt Park officially
opened on Friday, May 23, 2025 and featured a
concert by Los Lobos
§ The Amphitheater hosted ten events from
Friday, May 23 to Saturday, September 27, 2025
Visitor Data
Visits 73,300
Average Visit Length 99 minutes
Avg. HH Income $88,000
Top and above left: Images of outdoor concert and event at the Amphitheater.

Above right: Aerial of the Amphitheater Source: Powered by: (Accessed November 2025) KOSMONT COMPANIES | 8

VISITOR TRAFFIC
BY DAY

TULARE CONCERT
SERIES
(MAY 22, 2025 TO
SEPTEMBER 28,
2025)
0 1,000
2,000
3,000
4,000
5,000
6,000
5/22/20255/29/2025
6/5/2025
6/12/20256/19/20256/26/2025
7/3/2025
7/10/20257/17/20257/24/20257/31/2025
8/7/2025
8/14/20258/21/20258/28/2025
9/4/2025
9/11/20259/18/20259/25/2025
Avg. daily visits (concert dates) = 2,221
Avg. daily visits (non-concert dates) = 440
Source: Powered by: (Accessed November 2025)
KOSMONT COMPANIES | 9

TULARE CONCERT SERIES
VISITOR DEMOGRAPHICS 5/22/25 TO 9/28/25
Demographic Highlights
Total Visits 73,300
Visit Frequency 1.73
Total Unique Visitors 42,400
Average HH Size 3.28
Number of Households
(calculated estimate) 12,900
Median Age 33.2
Most Common Ethnicity Hispanic (65.1%)
Bachelor’s Degree or Higher 11%
Median HH Income $69,600
Average HH Income $88,000
Visitor Incomes
< $50,000 37%
$50,000 - $100,000 32%
> $100,000 31%
Visitor Ethnicities
Hispanic 65%
White 28%
Other 3%
Asian 2%
Black 2%
Education Levels
High School or Less 55%
Some College/Associates 34%
Bachelor’s or Higher 11%
Source: Powered by: (Accessed November 2025); Notes: These demographic numbers reflect the attributes of its visitors (captured market) as opposed to the wider population within the trade area (potential market). Captured market emphasizes the Census block groups that generated more visits to the property over areas that generated fewer visits. This approach weights the block groups by number of visits. Median age was taken from potential market data due to privacy issues with captured market data.

KOSMONT COMPANIES | 10
TULARE

CONCERT SERIES

TRADE AREA
MAP
Powered by: (Accessed November 2025)
§ The diagram on right shows that the
Amphitheater draws from many
cities and towns along the 99 Fwy.
from as far north as Fresno and as
far south as Bakersfield. Several
hundred visitors appear to have
come from out of state, likely
spending substantial dollars on hotel
and restaurants and gas stations.

KOSMONT COMPANIES | 11
TULARE

CONCERT SERIES

TRAFFIC MAP
Powered by: (Accessed November 2025)
§ The diagram shows that visitors
come from all directions
§ Most visits come east along Tulare
Ave. primarily coming off the 99
Fwy.

KOSMONT COMPANIES | 12

TULARE CONCERT SERIES

WHERE VISITORS GO BEFORE/AFTER DOWNTOWN VISIT
After Visiting Downtown
# Category % of Visits
1 Home 52.2%
2 Fast Food & Quick-Service
Restaurants 8.8%
3 Community Shopping
Centers 4.1%
4 Work 3.8%
5 Gas Stations 3.4%
6 Restaurants 2.7%
7 Groceries 2.1%
8 Fitness 1.9%
9 Breakfast/Coffee Shops 1.9%
10 Nature & Landmarks 1.3%
Powered by: (Accessed November 2025)
§ While half of visitors who attend the
concert series arrive from home and leave
for home, it appears that several
thousand visitors dine locally before and
after a concert
§ Other top categories include fast food
and quick-service restaurants, work, gas
stations, and restaurants. Kosmont
estimates the visitors spent over
$250,000 during the inaugural season
§ Placer identified the top ten hotels/motels
where overnight visitors stayed (See Slide
14). Overnight stays in local hotels and
motels are estimated at 20-40 room
nights per event, including the artists and
their support staff.

Before Visiting Downotwn
# Category % of Visits
1 Home 45.5%
2 Fast Food & Quick-Service
Restaurants 7.6%
3 Work 6.6%
4 Banks & Financial Services 3.1%
5 Restaurants 3.0%
6 Gas Stations 2.9%
7 Community Shopping
Centers 2.8%
8 Fitness 2.4%
9 Breakfast/Coffee Shops 2.1%
10 Beauty & Spa Stores 2.1%
KOSMONT COMPANIES | 13
Before Visiting Downtown
# Location Address City
1 Jack in the Box 444 E. Tulare Ave. Tulare
2 Taco Bell 510 E. Tulare Ave. Tulare
3 Don Chepe 505 E. Tulare Ave. Tulare
4 Starbucks 491 N. J St. Tulare
5 China Garden 500 E. Tulare Ave. Tulare
6 Burger King 601 E. Bardsley Ave. Tulare
7 Little Caesars Pizza 461 N. K St. Tulare
8 Domino’s Pizza 424 E. Tulare Ave. Tulare
9 McDonald’s 108 E. Cross Ave. Tulare
10 Dutch Bros. Coffee 968 S. Blackstone St. Tulare
After Visiting Downtown
# Location Address City
1 Jack in the Box 444 E. Tulare Ave. Tulare
2 Taco Bell 510 E. Tulare Ave. Tulare
3 McDonald’s 108 E. Cross Ave. Tulare
4 In-N-Out Burger 1591 E. Prosperity Ave. Tulare
5 Domino’s Pizza 424 E. Tulare Ave. Tulare
6 Starbucks 491 N. J St. Tulare
7 Burger King 601 E. Bardsley Ave. Tulare
8 China Garden 500 E. Tulare Ave. Tulare
9 Chili’s 1292 E. Prosperity Ave. Tulare
10 Raising Cane’s 1579 E. Prosperity Ave. Tulare
Powered by: (Accessed November 2025)

TULARE CONCERT SERIES

DINING PLACES WHERE VISITORS EAT BEFORE/AFTER VISITING DOWNTOWN KOSMONT COMPANIES | 14
Before Attending Concert
# Location Address City
1 La Quinta Inn & Suites 5438 W. Cypress Ave. Visalia
2 Hampton Inn & Suites 1100 N. Cherry St. Tulare
3 La Quinta Inn & Suites 1500 N. Cherry Ct. Tulare
4 Motel 6 1111 N. Blackstone St. Tulare
5 Eagle Mountain Casino 1850 West St. Porterville
6 Best Western Town &
Country Lodge 1051 N. Blackstone St. Tulare
7 Super 8 4801 W. Noble Ave. Visalia
8 Fairfield Inn & Suites 1225 Hillman St. Tulare
9 Lamp Liter Inn 3300 W. Mineral King Ave. Visalia
10 Wyndham Visalia 9000 W. Airport Dr. Visalia
After Attending Concert
# Location Address City
1 Hampton Inn & Suites 1100 N. Cherry St. Tulare
2 La Quinta Inn & Suites 5438 W. Cypress Ave. Visalia
3 Fairfield Inn & Suites 1225 Hillman St. Tulare
4 Best Western Town &
Country Lodge 1051 N. Blackstone St. Tulare
5 Eagle Mountain Casino 1850 West St. Porterville
6 Wyndham Visalia 9000 W. Airport Dr. Visalia
7 Motel 6 1111 N. Blackstone St. Tulare
8 Holiday Inn Express 1016 E. Prosperity Ave. Tulare
9 Fairfield Inn & Suites 3540 Rosedale Hwy. Bakersfield 10 La Quinta Inn & Suites 1500 N. Cherry Ct. Tulare
Powered by: (Accessed November 2025)

TULARE CONCERT SERIES

HOTELS/MOTELS WHERE VISITORS STAY
KOSMONT COMPANIES | 15

DISCLAIMER
These analyses, projections, assumptions, rates of return, and any examples presented herein are for illustrative purposes and are not a guarantee of actual and/or future results. Project pro forma and tax analyses are projections only. Actual results may differ from those expressed in this analysis, as results are difficult to predict as a function of market conditions, natural disasters, pandemics, significant economic impacts, legislation and administrative actions.

KOSMONT COMPANIES | 16

CITY OF TULARE
CONCERT SERIES – ECONOMIC IMPACT STUDY /

VISITOR RESEARCH
2301 Rosecrans Ave., Suite 4140
El Segundo, CA 90245
TEL: 424-297-1070 | URL: www.kosmont.com

E V E N T P R O P O S A L
Fiestas
en Tulare
Prepared for: City of Tulare Presented by: Bacilia Angel December 2, 2025 Tulare and its county are majority-Latino communities: in Tulare city, 63.3% of residents identify as Hispanic or Latino,and in Tulare County, 65.5% of the population is Hispanic or Latino. Given this, any community event seeking broad impact must meaningfully include Latino voices, languages, cultural traditions, and outreach methods. Posada en Tulare 2026 aims to do exactly that — to ensure that this majority community feels seen, invited, and engaged.

Source: Census Dots for City of Tulare Demographics and Census Dots+1 for County of Tulare Demographics.

IncludUs is a national non-profit engineering for a more inclusive world. We help bold, community-led ideas grow into real change by providing local leaders the tools and support needed to design, build, and scale solutions. Our focus areas are health, education, the economy, environment, civic life and leadership. From research to clean energy festivals and mobile health clinics to voter engagement concerts, IncludUs turns vision into action, connecting community power to infrastructure and impact. We are based out of DC, and will have offices in Tulare, CA.

WHY TULARE?
About us
© 2025 IncludUs. All rights reserved.

About
Event Posada en Tulare 2026 will be a vibrant, family-friendly community celebration that honors cultural traditions while bringing residents together at Zumwalt Park. Through music, dance, food, and education, the event fosters unity, celebrates heritage, and strengthens Tulare’s civic pride.

Date: Saturday, December 20, 2026
Location: Zumwalt Park
Target Audience: Families, youth, seniors, and residents from Tulare and surrounding areas Expected Audience: 2500 - 3000 people
Expected Objectives:

Foster unity, cultural celebration, and civic pride
Encourage more Tulare families to experience Zumwalt Park as a community hub Provide educational resources, TBIZ connection and civic engagement opportunities Boost local economy through food vendors, artisans, and exhibitors Showcase local talent and cultural diversity
© 2025 IncludUs. All rights reserved.
© 2025 IncludUs. All rights reserved.

Why a Posada?
A posada is one of the most meaningful cultural traditions in Latino communities during the holiday season. It symbolizes welcome, belonging, and unity—values deeply resonant for Tulare’s majority-Latino community.

Hosting a posada at Zumwalt Park transforms the space into a living celebration of Tulare’s culture, drawing families who may not otherwise use the park.

It provides a familiar, trusted cultural entry point for families, especially those who may feel excluded from civic events.

Why now?
Tulare is a majority-Latino city; this is the moment to lean into inclusive traditions that reflect the community’s identity.

After years of challenges—from the pandemic to economic pressures—families need safe, joyful, low-cost opportunities to gather and reconnect.

The City of Tulare has invested in community spaces like Zumwalt Park; Posada en Tulare 2026 is a chance to
maximize that investment by drawing thousands of residents into the park.

E V E N T P R O P O S A L
Event
Components
Time: 12 pm - 8 pm
Date: 19 December 2026
Location: Zumwalt Park
Main Stage
Concerts &
Performances
Local bands, cultural dance groups, and headline acts.

La Placita–Style
Resource &
Education Fair
Booths for nonprofits, clinics, schools, and civic groups.

Food & Artisan
Vendors Local food trucks, diverse cuisine, and artisan crafts.

Family Zone Kid-friendly activities, and senior-focused activities.

Civic
Engagement
Stage
Short, engaging presentations on health, education, and civic life.
© 2025 IncludUs. All rights reserved.

Category Total: Venue logistics (permits, site prep, staging) Sound & lighting (Backline, Screen, A/V) Talent & performers Vendor coordination & setup Security Marketing & advertising Educational booth support Toys and Giveaways (Covered by IncludUs)
Estimated Cost (USD) $0* $18,000 $30,000 $4,000 $0* $10,000 $1,500 $10,000
$74,000 E V E N T P R O P O S A L
Posada
Budget
Operations & staffing (volunteers, staff) $7,000 Insurance & contingency (~10%) $3,500 *Requested in kind support from the City of Tulare **Additional funding from the City Requested see below: © 2025 IncludUs. All rights reserved.

Spring Fiesta
Operations & staffing (volunteers, staff) $7,000 Insurance & contingency (~10%) $3,000 *Requested in kind support from the City of Tulare **Additional funding from the City Requested see below: © 2025 IncludUs. All rights reserved. A Free Community Celebration to Kick Off Tulare’s 2026 Initiatives Date: April 4 or April 11, 2026
Location: Zumwalt Park or Downtown Activation Zone
Category Total: Venue logistics (permits, site prep, staging) Sound & lighting (Backline, Screen, A/V) Talent & performers Vendor coordination & setup Security Marketing & advertising Estimated Cost (USD) $0* $10,000 $15,000 $4,000 $0* $5,000 $44,000 E V E N T P R O P O S A L Option: World Cup Watch Party
Operations & staffing (volunteers, staff) $7,000 Insurance & contingency (<10%) $3,000 *Requested in kind support from the City of Tulare **Additional funding from the City Requested see below: © 2025 IncludUs. All rights reserved. SUMMER WORLD CUP WATCH PARTY @ ZUMWALT PARK A Community Celebration of Cultura, Soccer & Local Business Date: TBD - proposal for June 18th 2026 (Final date selected based on World Cup match schedule) Location: Zumwalt Park, Tulare, CA
Benefits to
the City of
Tulare
Activation of Zumwalt Park: Establish the park as a central community gathering space during the holiday season.

Activation of Zumwalt Park: Establish the park as a central community gathering space during the holiday season.

Community Connection: A safe, family-friendly holiday
event for 2,500+ residents across generations.

Community Connection: A safe, family-friendly holiday
event for 2,500+ residents across generations.
11 22
33 44
55 Economic Impact: Dozens of local vendors and artisans will benefit from increased foot traffic and sales.

Economic Impact: Dozens of local vendors and artisans will benefit from increased foot traffic and sales.

Cultural Pride: A city-supported tradition that celebrates Tulare’s diversity and heritage.

Civic Engagement: Residents gain access to educational
resources, health information, and civic participation
opportunities.

Request for
City
Partnership
In-Kind Support: Venue access and permitting at Zumwalt Park; public safety/security presence.

In-Kind Support: Venue access and permitting at Zumwalt Park; public safety/security presence.

Funding Support: City contribution to cover marketing, sound & lighting, talent, and vendor coordination/setup.

Funding Support: City contribution to cover marketing, sound & lighting, talent, and vendor coordination/setup.
11 22
33 IncludUs Commitment: IncludUs will secure additional sponsorships and community donations to cover the remaining budget (toys, giveaways, operations, and education booths).

IncludUs Commitment: IncludUs will secure additional
sponsorships and community donations to cover the remaining budget (toys, giveaways, operations, and education booths).

E V E N T P R O P O S A L
We respectfully request the City of Tulare’s support to help make Posada en Tulare and the optional Spring and Summer events in 2026 a success:
© 2025 IncludUs. All rights reserved.

E V E N T P R O P O S A L
THANK
YOU!
+1 (623) 695-8111 [email protected]
IncludUs
Engineering for a more inclusive world.
www.includusfund.org
Includus Fund © 2025. All Rights Reserved.

BACILIA ANGEL
—
“At IncludUs, we engineer
systems of belonging. Our
work turns community power
into lasting infrastructure —
across culture, health,
environment, education, civic
engagement and the
economy.”

ABOUT US
IncludUs is a national nonprofit that engineers a more inclusive world. We help bold, community-led ideas grow into real change by providing local leaders the tools, infrastructure, and support to design, build, and scale solutions.

IncludUs Fund | IncludUs Labs | IncludUs Institute
Includus Fund © 2025. All Rights Reserved.

Community Engineering
● Community Members
● Community Leaders
● Local Organizers
● Influencers
● Artists
People
● Data
● AI
● Digital Platforms
● Software
Tools & Technology
● Operational Outputs
● Analysis / Reports
● Community Outcomes
● Learnings for Improvement
Outcome Learning System
● Co-design sessions
● Partnerships
● Media Partnerships
● Culture Infrastructure
● Community Investment
Design + Implementation
People +
Culture
Outcome
Learning
System
Tools +
Technology
Design +
Implementation
TM
Inclusive Culture
Community
Impact
Economic
Sustainability
Community Engineering™ connects people, design, tools, culture, and resources — creating outcomes that endure through shared learning and belonging.

Building pathways to financial
stability and full employment for
working families.

ECONOMY
Strengthening democracy
through culture, belonging, and
community power.

CIVIC LIFE
Developing diverse leaders who
can design, build, and scale systems
of inclusion.

LEADERSHIP
23 Our
1 Focus Areas
We invest in health,
education, economy,
environment, and civic
life — the systems that
shape opportunity and
belonging
564

ENVIRONMENT
HEALTH

EDUCATION
Expanding access to mental health,
healing, and wellness for communities
of color.

Advancing equitable learning and
leadership opportunities for all.

Creating climate-resilient
communities through equity and
action.

IncludUs Fund IncludUs Labs IncludUs Institute
Training & research
center — home of the
Inclusion Index and
community engineering
curriculum.

Grants, flagship
programs, and
fiscal sponsorship
for community-led
initiatives.

Our Ecosystem
Innovation hub
developing creative,
tech, and
social-enterprise
solutions.

The IncludUs Ecosystem: One Vision, Three Engines
Together, these entities engineer systems of inclusion — connecting community power to infrastructure and impact.

National Reach
Programs and partnerships active across 10 states + Washington, D.C.with National Reach Reaching over 10 million people annually through culture, data, and community power.

Where We Are
Legend:

Where We Plan to Expand

Past Experience
Relevant Past Experience Working With Cities, States, and Federal Agencies IncludUs and Bacilia Angel have successfully delivered government-aligned, community-centered initiatives including:
● NIH’s All of Us Research Program: Designed pilot engagement models and national scale-up strategies to reach diverse communities.
● Maryland State EV Initiative: Partnered with the state to promote EV incentives, clean-air education, and local city/county outreach.
● City of San Luis Civic Engagement Partnership: Delivered a city-led concert to expand voter education and youth participation.
● HHS COVID-19 Convalescent Plasma National Stockpile Outreach: Developed and implemented COVID-19 Convalescent Plasma diverse outreach strategy to ensure stockpile of plasma for testing.

Together, these demonstrate the ability to work directly with cities, integrate public-sector goals, and deliver impact through culturally grounded, bilingual community engineering.

Example previous projects - references available upon request.

Partnership Opportunities
OPTIO
N
04 Align your brand with national
cultural moments that connect art,
identity, and civic power.

SPONSORSHIP & VISIBILITY
OPTIO
N
03 Partner on data, learning, and
narrative insight.

RESEARCH & EVALUATION
OPTIO
N
02 Collaborate with IncludUs to design
and implement initiatives aligned
with your priorities.

PROGRAM CO-CREATION
OPTIO
N
01 Support the growth of
community-led infrastructure
through multi-year and
general-operating or program
funding.

STRATEGIC INVESTMENT
IncludUs partners with foundations, corporations, artists, and academic institutions — from UCLA to Rolling Stone to local community networks.

CONTACT US
[email protected]
www.includusfund.org
Join Us in Engineering Systems with community
Together, we can build an inclusive future — one community, one story, one system at a time.

Page 1 of 2 ends

THIRD AMENDMENT TO THE ZUMWALT PARK AMPHITHEATER

OPERATOR AGREEMENT
This Third Amendment is made and entered into this 16th day of December 2025, by and between the City of Tulare, a municipal corporation of the State of California (the "City"), and Spade Entertainment, a California limited liability company (the "Operator").

WHEREAS, the City and the Operator entered into that certain Zumwalt Park Amphitheater Operator Agreement dated July 18, 2023 (the "Agreement"); and WHEREAS, the City and the Operator entered into that certain First Amendment to the Agreement dated August 6, 2024 (the "First Amendment"); and WHEREAS, the City and the Operator entered into that certain Second Amendment to the Agreement dated January 7, 2025 (the "Second Amendment") to address unanticipated financial impacts associated with initial promotional concerts; and WHEREAS, the 2025 operating season was successful in the sense that the Operator was able to attract relevant talent, top-notch production, and provided outstanding customer experience which improved from one show to the next; and
WHEREAS, the Agreement’s three-year term expires on August 16, 2026, unless otherwise extended; and
WHEREAS, the City and the Operator desire to extend the terms of this Agreement for an additional year.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. Term: The City and Operator agree to extend the term of the Agreement through August 16, 2027.

2. Waive the Cost of Police Overtime: The City agrees to waive the cost of overtime incurred for Police Department staff assigned to events held at the Zumwalt Park Amphitheater (“Amphitheater”).

3. Waive the Sponsorship Fee: The City agrees to waive the sponsorship fee, allowing the Operator to retain 100% of sponsorships received.

4. Establishment of 2026 Artist Deposit Account: The City agrees to establish a 2026 artist deposit account in the amount of two hundred fifty thousand dollars ($250,000).

5. Marketing: The City agrees to allocate seventy-five thousand dollars ($75,000) for marketing to be used for marketing events held at the Amphitheater by the Operator.

Page 2 of 2 ends

6. Production, Janitorial, and Security: The City agrees to allocate one hundred seventyfive thousand dollars ($175,000) for production, janitorial, and security services related to events held at the Amphitheater by the Operator.

7. Reaffirmation of Agreement: Except as specifically modified herein, all other terms and conditions of the Agreement, as amended by the First Amendment and Second Amendment, shall remain in full force and effect.

8. Entire Agreement: This Third Amendment, together with the Agreement, First Amendment and Second Amendment, constitutes the entire agreement and understanding between the parties with respect to the subject matter herein and supersedes all prior or contemporaneous communications, representations, or agreements, whether oral or written.

9. Governing Law: This Third Amendment shall be governed by and construed in accordance with the laws of the State of California.

10. Counterparts: This Third Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties have executed this Second Amendment as of the date first written above.

CITY OF TULARE
By:_________________________________
Name: Marc Mondell
Title: City Manager

SPADE ENTERTAINMENT
By:_________________________________
Name: Todd Speelman
Title: Owner
ATTEST:

By:_________________________________
City Clerk
Staff Report
Meeting: City Council
Date: December 16, 2025
Department: Finance
Submitted by: Mark Roberts, Chief Financial Officer / Treasurer Agenda Title: Amendment to the City of Tulare’s Budget Policies & Practices

RECOMMENDED ACTION
Approve an amendment to the City of Tulare’s Budget Policies & Practices and establishment of reserve and trust balances, which includes:
1) establishing an Irrevocable Supplemental Pension Reserve Trust policy; 2) establishing an Other Post-Employment Benefits (OPEB) Reserve policy; 3) authorizing transfers of $4.0M and $0.5M from Workers’ Compensation Fund fund balance to the Irrevocable Supplemental Pension Reserve Trust and OPEB Reserve, respectively; 4) amending the Workers’ Compensation reserve policy, to increase the reserve’s target balance level;
5) designating $4.0 million of current Workers’ Compensation Insurance Fund fund balance as the Workers’ Compensation Reserve; and
6) expanding provisions of the current General Fund Economic Contingency Reserve to be applicable to other reserves.

SUMMARY
The proposed reserve policy amendments and reserve balance levels are recommended to ensure the City is able to withstand unexpected financial emergencies. Establishing a pension reserve trust and an OPEB reserve would provide the two-fold benefit of prefunding the unfunded accrued liabilities (UALs) of the City’s pension and OPEB plans and/or allowing the City to “smooth” its annual UAL contributions, if desired, during periods when those payments spike significantly. The change to the Workers’ Compensation reserve would increase its target balance level, ensuring sufficient funds are available to pay Workers’ Compensation claims should those claims significantly exceed the amount(s) budgeted and the (unreserved) fund balance available is insufficient to offset the difference. In addition, the current Workers’ Compensation reserve policy currently contains contradictory language regarding the minimum reserve balance, which requires correction.

Irrevocable Supplemental Pension Reserve Trust & Other Post-Employment Benefits (OPEB) Reserve The current Pension and Post-employment Benefits section of the City’s Budget Policy & Practices (“Policy”) states:

The City provides pension and medical benefits for its public safety and non-safety employees through three contracts with CalPERS. The contracts include benefit levels negotiated by the City with its employee units and for which it has executed contract amendments. The plans also include some benefit levels approved by the State Legislature without contract amendment and funding mechanisms approved by the CalPERS Board of Administration.

The Policy does not provide for a pension or OPEB reserve.

At the regular City Council meeting of May 6, 2025, Michael Meyer of NHA Advisors, the City’s municipal advisor, provided a comprehensive analysis of the City’s pension plans and a brief overview of the OPEB plan, including the plans’ unfunded liabilities and historical and projected costs, and recommended costmanagement strategies to help the City prefund the unfunded liabilities and mitigate the impact of their year-to-year volatility.

Item #: 8.3
General Business
During his presentation, Mr Meyer informed the Council that as of the CalPERS valuation date for June 30, 2023, the combined UAL of the City’s pension plans was approximately $90.0M and the unfunded liability of the City’s OPEB plan UAL was $2.0M. He also stated the combined pension normal cost and UAL payment is projected to increase from $11.5M to $13.6 annually by 2031.

Based upon the information and strategies Mr Meyer provided, staff recommends establishing an irrevocable supplemental pension reserve trust and OPEB reserve.

Following are the proposed Policy amendments to add the pension reserve trust and OPEB reserve.

The Irrevocable Supplemental Pension Reserve Trust target balance shall be an amount equal to the total net liability of the City’s pension plans. The assets of this reserve shall be held in an irrevocable Section 115 pension trust and may be used only for payment of pension-related costs upon direction of the City Council. The balance of this reserve shall not be subject to the “Replenishment of Reserves” guidelines, and formal City Council action is required to increase the balance of this reserve or to authorize the use of any portion thereof.

The Other Post-Employment Benefits (OPEB) Reserve target balance shall be an amount equal to the total net liability of the City’s other post-employment benefits (OPEB) plans.

The assets of this reserve may be used only for payment of OPEB-related costs upon direction of the City Council. The balance of this reserve shall not be subject to the “Replenishment of Reserves” guidelines, and formal City Council action is required to increase the balance of this reserve or to authorize the use of any portion thereof.

While these reserves are intended to prefund post-employment benefit liabilities and/or to be used for payment of post-employment-benefit-related costs, assets placed in a trust are restricted for the specific purpose(s) of the trust, while non-trust assets may be used for any purpose. Therefore, assets of the Irrevocable Supplemental Pension Reserve Trust may be used only for pension-related costs, while OPEB reserve assets may be transferred for use for other purposes if necessary.

Initial funding for the Irrevocable Supplemental Pension Reserve Trust of $4.0M is recommended. Initial funding of $0.5M is recommended for OPEB Reserve. The proposed source of funding for these reserves is Workers’ Compensation Insurance Fund fund balance, which will be discussed later in this staff report.

If Council approves addition of the establishment of the recommended Irrevocable Supplemental Pension Reserve Trust policy and, therefore, creation of a pension trust, staff will return to Council at a future meeting to request:
• adoption of the trust plan;
• appointment of the City Manager, or his designee, as plan administrator; and • authorization for the plan administrator to execute the necessary documents to implement the plan.

Workers’ Compensation Reserve
Following is the current Workers’ Compensation policy.

Workers’ Compensation: a minimum of one-year premium in reserve.

The city may participate in an Authority to provide health insurance benefits to its employees. While in a risk pooling environment the city would follow the policy of the plan.

The City’s policy is to set the reserve account at no less than four months’ worth of premium to handle any unanticipated increases that occur mid budget year. (emphasis added)
As noted above, this policy contains conflicting language (underlined), stating a minimum reserve level of both one year’s premium and four months’ worth of premium. Further, staff believes even the larger of the minimum requirements reflected is inadequate, particularly given the retrospective claim adjustments estimated by the City’s Pooled Workers’ Compensation Program administrator, which have averaged approximately $1.0M per year over the past five years. The proposed amendment, below, would resolve both the contradictory language and establish a higher target balance level.

The Workers’ Compensation Reserve target balance shall be an amount equal to assets in the Workers’ Compensation Insurance Fund equivalent to estimated Workers’ Compensation insurance claims payable as of June 30th of the year of the City’s most recently completed financial statements plus the rolling five-year average of insurance claims paid from the Workers’ Compensation Insurance Fund.

As of the City’s Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024, estimated insurance claims payable from the Workers’ Compensation Fund were $1.4M, and the rolling five-year average of insurance claims paid is $2.4M. The combined total of these amounts, $3.8M, would be the first target balance. Staff recommends rounding up the combined total to $4.0M as the initial reserve balance. This rounding would provide a small “cushion” for at least a portion of changes which may result from fiscal years 2025 and 2026 operations. Workers’ Compensation Insurance Fund fund balance is sufficient to establish this reserve.

Purpose of Reserves
The current purpose of the General Fund Contingency Reserve as reflected in the Policy is reflected as follows:

The purpose of the General Fund Economic Contingency Reserve to strengthen the City’s ability to withstand financial emergencies, such as those that may result from national disasters, economic downturns, and revenue shortfalls or unanticipated expenditures of a non-recurring nature, and to accumulate funds for large-scale purchases.

Since this, effectively, is the purpose of all reserves, staff recommends amending the statement to be universally applicable to reserves by removing “General Fund Contingency Reserve” from it.

Replenishment of Reserves
Pursuant to the Policy, presently the General Fund Contingency Reserve requires replenishment of the Reserve in accordance with the schedule below.

If the General Fund Economic Contingency Reserve balance falls below its minimum target level, the City shall strive to restore it to the minimum target level through budgetary or other means.

Unless otherwise noted in this policy, the following guidelines will be used to restore the reserve. • If the reserve is drawn down to 75-99% of its minimum target level, it shall be restored to 100% over a 1- to 3-year period.
• If the reserve is drawn down to 50-74% of its minimum target level, it shall be restored to 100% over a 3- to 5-year period.
• If the reserve is drawn down below 50% of its minimum target level, it shall be restored to 100% over a 5- to 7-year period.

These guidelines may be suspended, in whole or part, if financial or economic circumstances are determined by the City Council to prevent meeting any or all of the timelines.

Broadening the application of the schedule is warranted, to ensure commitment to the replenishment of other reserves drawn or falling below their recommended target levels. Hence, staff recommends the schedule be applied to all reserves, with the exception of the irrevocable supplemental pension reserve trust and OPEB reserve. The pension and OPEB reserve exception noted is due to the significantly underfunded statuses of the City’s pension and OPEB plans, requiring far greater feasible lengths of time to grow those reserves to their target level balances.

Reserve Classification & Use
As with the purpose statement and replenishment schedule, amendment of the section of the Policy (below) regarding the fund balance classification of the General Fund Economic Contingency Reserve and City Council’s authority to approve transfers and expenditures from it is recommended, to change its applicability to all reserves, except the pension reserve trust, which, pursuant to GASB Statement No. 54, would be classified as restricted fund balance.

Once established or increased, thea reserve’s balance, except that of the Irrevocable Supplemental Pension Reserve Trust, shall become committed fund balance, as defined by Governmental Accounting Standards Board Statement Number 54 (GASB 54), within the General Fundits corresponding fund and, as such, shall require Council approval for all transfers and expenditures therefrom. Assets of the Irrevocable Supplemental Pension Reserve Trust shall be restricted fund balance, pursuant to GASB 54, and their use shall also require Council approval.

Trust & Reserve Funding
Upon analysis of the balance sheet of Worker’s Compensation Insurance Fund (“Fund”) for the year ended June 30, 2024, and estimated (unaudited) fiscal year 2025 revenues and expenditures, staff estimates the Fund’s fund balance as of June 30, 2025, was approximately $9.6M. Therefore, staff is confident this fund balance is sufficient to provide the initial reserve balances as proposed above.

FISCAL IMPACT & FUNDING SOURCES
The recommended amendments to the City’s Budget Policies & Practices and the establishment and funding of reserve and/or trust balances will have no direct fiscal impact upon the City. However, improving the City’s financial policies will better position the City to withstand financial emergencies.

ENVIRONMENTAL REVIEW
This action does not constitute a “project” pursuant to the California Environmental Quality Act (CEQA).

POTENTIAL CONFLICT OF INTEREST
Staff is not aware of any conflicts of interest associated with this action.

LEGAL REVIEW
This item does not require legal review.

PUBLIC NOTICE
This item does not require a public hearing and was noticed as a part of the agenda.

ALTERNATIVE ACTION

1. Approve with changes

2. Deny

3. Table
If the recommended amendments to the Budget Policies & Practices are not approved, the City will be less prepared to withstand large increases in its unfunded pension and OPEB liabilities and Workers’ Compensation insurance claims.

ATTACHMENTS

1. May 6, 2025, Presentation, “CalPERS Pension Program Review and Cost Management Strategy Assessment”

2. Recommended Budget Policy & Practices Amendments (Mark-up Draft & Final) Reviewed/Approved:

CITY OF TULARE

CALPERS PENSION PROGRAM REVIEW AND

COST MANAGEMENT STRATEGY ASSESSMENT
MAY 6, 2025
Exhibit A
2 Today’s Discussion
I. Background on CalPERS Costs
II. Historical and Projected CalPERS Costs
III. Cost Management Strategies
IV. Conclusion

BACKGROUND ON CALPERS COSTS
4 City of Tulare CalPERS Summary
 City of Tulare has an $90M CalPERS Unfunded Accrued Liability (“UAL”), as of the latest CalPERS valuation for June 30, 2023
 Miscellaneous Plan: $47M | Safety Plan: $43M
 CalPERS FY 24 Final Investment Returns: 9.5%*
 Projected to decrease City’s UAL to $83M (as of 6/30/24); annual budgetary impact from this change will be seen in FY 27
 Continuing to monitor and manage ongoing CalPERS UAL costs will be critical for fiscal resiliency; especially amid potential assumption changes this year by CalPERS
 Factors to consider: (1) CalPERS 2025 Asset Liability Management Study and (2) CalPERS FY 25 investment performance given recent stock market losses  City also has a small ~$2M OPEB Liability; has not been prefunded yet *CalPERS’ Money-Weighted Rate of Return, as reported by CalPERS in its FY 24 Annual Comprehensive Financial Report
5 Background on How CalPERS Works
Two Payments Made to CalPERS Annually
 (1) Normal Cost (“NC”):

Annual cost for current
employees
 (2) Unfunded Accrued
Liability (“UAL”): Annual
payment to amortize the
“debt” to CalPERS
 UAL is amortized over 20 years
 New UAL is created when
CalPERS investment returns
<6.80%
Source: CalPERS Actuarial Valuation as of June 30, 2023 Market Value of
CalPERS Assets:
$218 Million
Accrued Liability:
$307 Million
Shortfall (UAL):
$90 Million
$0
$50
$100
$150
$200
$250
$300
$350
Millions
City of Tulare
CalPERS Pension Funded Status
6 Now …
 Sluggish investment returns (not meeting
assumptions)
 Assumptions have changed/grown more
conservative
 Discount Rate (assumed rate of investment
returns): 8.25% → 7.00% → 6.80%
 Inflation rate (prices going up)
 Mortality rates (people living longer)
 Shorter, more conservative amortizations
Why CalPERS Costs Have Trended Higher
Then (late 1990s)…
 Robust investment returns (10%+)
 Retirement plans were “SuperFunded” through the late 1990s  Earnings on funds were more than
adequate to cover retirement costs
 Super-funded status induced
widespread retirement benefits
enhancements
 Past funding policies led to
contribution holidays and “free”
benefit improvements
Historical PERS
Returns
5-Year: 6.6%
10-Year: 6.2%
20-Year: 6.7%
30-Year: 7.7%
All assumptions will be revisited by CalPERS during
2025 Asset Liability Management (ALM) Study
7 How CalPERS Benefits Get Funded
 Pre-2008
Investment
earnings used to
make up a much
higher percentage
of total
contributions
 As investments
underperform
assumptions,
employers must
make up the
difference, unless
the additional
costs are
negotiated with
employees
8 City’s CalPERS Retirement Plans
 2 Main CalPERS plans: Miscellaneous & Safety
 Miscellaneous: 941 covered members; $47M UAL
 Safety: 347 covered members; $43M UAL
 PEPRA (effective 2013) helpful to manage long term pension costs for new employees
 Enacted revised benefit levels for new plan members
 Higher employee contribution rates mean more normal cost is being paid by the employee
 However, 99% of current UAL comes from Classic plans and is not impacted by PEPRA

HISTORICAL AND PROJECTED CALPERS COSTS
10 History of the City’s UAL Balance & Funded Ratio
City’s Funded Ratio is in Line With Other Agencies on Average CalPERS Returns*: 8.4% 6.5% 5.0% 22.4% -7.5% 6.1% 9.5%
$67 $70
$75
$51
$87 $90 $83

71.3% 71.5% 70.9%

81.5%

70.3% 70.8% 73.8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%
100.0%
$-
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2018 2019 2020 2021 2022 2023 2024
Millions
UAL Funded Ratio
*CalPERS’ Money-Weighted Rate of Return, as reported by CalPERS in its Annual Comprehensive Financial Reports
11 $0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
$11
$12
$13
$14
2018201920202021202220232024202520262027202820292030203120322033203420352036203720382039204020412042204320442045 Millions
Historical & Projected CalPERS Payments (UAL + Normal Cost)  UAL + Normal Cost
payments projected to
increase from $11.5M to
$13.6M (+18%) by FY 31
 City’s UAL payments rising
to $9.1M by FY 31
 21% higher than FY 25 UAL
payment ($7.5M)
 Annual Normal Cost
contributions projected to
range between $4.3M and
$5.1M through FY 45
Source: CalPERS Actuarial Valuation Reports & CalPERS Pension Outlook Tool *Assumes FY 24 investment returns of 9.5% and 6.8% investment returns thereafter.

Normal Cost
Projected UAL Payments*
(9.5% FY 24 Returns)
12 CalPERS UAL Sensitivity
Planning for Potential Increases to UAL
 CalPERS is currently underway
with its 2025 Asset Liability
Management (“ALM”) Study
 Potential assumption changes
include CalPERS’ discount rate (i.e.,
expected investment earnings)
 The UAL is highly sensitive to
assumption changes and any
future investment
underperformance by CalPERS Source: CalPERS Pension Outlook Tool Impact of CalPERS Discount Rate Reduction

6.8% 6.5%
UAL Balance: $90M  $95M
Max UAL Payment: $9.9M  $10.3M
Impact of CalPERS FY 2025 Investments

6.8% Return
(Assumed)

0.0% Return
(Hypothetical)
UAL Balance: $90M  $97M
Max UAL Payment: $9.9M  $10.8M

COST MANAGEMENT STRATEGIES
14 Pension Cost-Containment Strategies – Not Mutually Exclusive Prepay UAL early in Fiscal Year (≈ 3.3% discount)  CITY DOES THIS Negotiate Cost Sharing With Employees
•New employees already governed by lower cost/benefit PEPRA plans •Negotiated cost sharing of the City’s share
Use Cash Reserves to Pay Extra (two options)
•Section 115 Trust – Separate trust solely dedicated to pension/OPEB – Most common strategy •City’s annual UAL cost and Normal Cost can be supplemented with the Trust •Additional Discretionary Payment (“ADP”) – direct payments to CalPERS to reduce UAL •Choose optimal amortization bases to pay off
Fresh Start Amortization offered by CalPERS
•Pros: Smooths payment, shortens repayment period; reduces overall interest paid from shorter amortization period •Cons: New structure “locked-in” + increased annual payments in near term; still amortized at discount rate Restructure All or Portion of Remaining UAL
•Restructure portion of UAL at lower bond interest rate and “smooth out” payments for enhanced budget predictability, near and midterm potential savings, and preservation of cash for other critical projects NOT RECOMMENDED 15 $-
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
20262027202820292030203120322033203420352036203720382039204020412042204320442045 Millions
Hypothetical Section 115 Trust Example – $3M Allocated to Pension Smooth the Mountain Peak of Payments
Assumptions:
 CalPERS Discount Rate: 6.8%
(no change)
 CalPERS Investment Returns:

9.5% in FY 24; 6.8%
thereafter
 Initial Trust Deposit: $3M
 Additional Deposits: $0
 Trust Annual Investment
Earnings: 5.00%
 Ending Trust Balance: $0
UAL Payments*
Net Payments
Smoothing Level: $8.2M
Withdrawals from Trust
*Source: CalPERS Pension Outlook Tool
16 Other Post-Employment Benefits (OPEB)
 Per the City’s actuarial valuation study, the total OPEB Liability is approximately $2 million
 This valuation includes benefits for 32 retirees and 331 active employees who may become eligible to retire and receive benefits in the future  Excludes employees hired after June 30, 2023
 The City has not adopted an irrevocable trust for the pre-funding of retiree healthcare benefits
 A Section 115 Trust can be utilized to pre-fund these benefits if desired  Would be a separate sub-account and not co-mingled with pension assets 17 Hypothetical “Hybrid” Pension and OPEB Funding
 As an example of hybrid
funding, the City can allocate
funds to both pension and
OPEB
For Example:
 $3M allocated to pension
would lower the City’s net UAL
payment to $8.2M
 $2M allocated to OPEB over
the next few years would fund
the City’s $2M OPEB liability
Fiscal
Year
Pension Trust
Deposits
Pension Trust
Withdrawals
OPEB
Funding
2025 $3,000,000 $ - $ 500,000
2026 - - 500,000
2027 - - 500,000
2028 - - 500,000
2029 - 796,440 -
2030 - 876,440 -
2031 - 906,440 -
2032 - 656,440 -
2033 - 466,440 -
2034 - 86,440 -
Total $3,000,000 $3,788,638 $2,000,000

CONCLUSION
19 Conclusion
 City must stay vigilant to combat the continued impact of rising pension costs
 Annual review of pension cost projections + ongoing pension cost management strategies
 Reassess pension cost projections after June 30, once CalPERS’ FY 25 investment returns are known and 2025 ALM Study results are known (Fall 2025)
 Staff and NHA can return with refined cost management strategies this Summer or Fall once the City has adopted its Budget and has identified potential resources to allocate to pension and OPEB QUESTIONS?
APPENDIX – ADDITIONAL RESOURCES
22 CalPERS Historical Preliminary Investment Returns (Time-Weighted)*

12.2% 11.9%

18.8%
-2.9%
-23.6%

11.1%

20.7%

1.0%

12.5%

18.4%

2.4%

0.6%

11.2%

8.6%

6.7% 4.7%

21.3%
-6.1%

5.8%

9.3%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Annual Return Target Discount Rate
*Preliminary Investment Returns represent the time-weighted rate of return and reflect private market asset valuations as of March 31, 2024. The moneyweighted rate of return, used in the CalPERS ACFR and Valuation Reports may differ from the Preliminary Investment Returns. Source: CalPERS. 23 Classic vs. PEPRA Pension Example Comparison
 Employee #1 is a Classic member and Employee #2 is a PEPRA member – both have served for 25 years and have a final average compensation of $125K
 Employee #2 will have a lower pension than Employee #1 due to a lower benefit factor, and will also retire at 57 years old instead of 50 years old like the Classic member  The City will save money from PEPRA’s lower pension amount and because PEPRA’s pension may be paid out for a shorter amount of time due to retirement occurring 7 years later compared to Classic  The difference in pension between Classic and PEPRA is even more apparent at higher compensation levels, as there is a pensionable compensation limit of approximately $175K for PEPRA and $330K for Classic Service
Credit
Benefit
Factor
Final
Compensation
Annual
Pension
Employee #1 (Classic)
25 Years x 3.0% @ 50 x $125,000 = $93,750
Employee #2 (PEPRA)
25 Years x 2.7% @ 57 x $125,000 = $84,375
24 91.9% 89.5% 87.6% 85.2% 84.1% 81.5% 79.4% 77.4% 75.3% 73.2% 71.1% 69.1% 67.0% 64.9% 62.8% 60.8%

8.1% 10.5%

12.4% 14.8% 15.9%

18.5%

20.6% 22.6% 24.7% 26.8% 28.9% 30.9% 33.0% 35.1% 37.2% 39.2% $0
$5
$10
$15
$20
$25
$30
$35
$40
2019202020212022202320242025202620272028202920302031203220332034 Millions
Total PEPRA Payroll Total Classic Payroll
Historical & Projected PEPRA Transition
Classic vs. PEPRA % of Payroll
Source: 2019-2024 payroll data is sourced from the City’s CalPERS Actuarial Valuation Reports. 2025-2034 payroll data is sourced from the CalPERS Pension Outlook Tool. 2025-2034 projections assume the PEPRA % continues to grow at a historical average (2020-2024) of approximately 2.1 percentage points per year.

Projected
25 Cost of PEPRA vs. No PEPRA
 PEPRA is projected to lower Normal Cost and UAL costs for the City Source: CalPERS Pension Outlook Tool. Assumes no PEPRA implementation in orange bar projections.
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
202520272029203120332035203720392041204320452047204920512053 Millions
Projected Normal Cost
No PEPRA PEPRA
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
202520262027202820292030203120322033203420352036203720382039204020412042204320442045 Millions
Projected UAL Balance
No PEPRA PEPRA
26 Section 115 Trust – Overview
Consideration for Funds Earmarked for Pension and OPEB
 What is it? Restricted Account for pension and/or OPEB  Advantages:
 Potential Higher Investment Returns in Managed Account  In FY 24, most Moderate Risk portfolios (50% Equity / 50% Fixed Income) had investment returns at or above 10%
 Longer-Term Benefit: Trust funds can grow over time and pay off a large % of UAL or OPEB liability in the future
 Shorter-Term Benefit: Apply funds to “smooth” payment spikes in UAL, Normal Cost, or OPEB; can reimburse City for pensions costs made if severe budgetary challenges  Flexibility – more investment options than CalPERS and the City can decide when and how to use  Disadvantages:
 Doesn’t directly reduce UAL until funds are transferred to CalPERS  Requires reserves/surplus contributions to build account balance  Investment risk (dependent on type of investment portfolio) 27 Section 115 Trust
Overview of Steps to Select the Provider and Establish the Trust Evaluate potential
Section 115 Trust
Providers
Select Provider and
work with its
Investment Advisor to
determine preferred
investment portfolio
Formal City Council
adoption of necessary
documentation
Trust established and
funded by City (if
desired at that time)
Establishment of the Trust can be completed in 30 – 90 days 28 Additional Discretionary Payment (“ADP”)
 What is it? City makes ADP directly to CalPERS and CalPERS eliminates payments associated with the portion of the UAL paid off, essentially giving the City credit at the discount/interest rate (currently 6.8%)  Advantages:
 Reduced UAL / higher CalPERS funding ratio
 Reduced future payments
 Broader, less restrictive CalPERS investment portfolio has potential for higher returns  Disadvantages:
 Requires reserves / surplus to fund
 Re-investment and market timing risk with ADP funds
 Less budgetary flexibility and investment control (vs. Section 115 Trust option) 29 Section 115 Trust vs. CalPERS ADP Comparison
OPTION Section 115 Trust CalPERS ADP
Reduced UAL & UAL Payments
with CalPERS No Yes
Reduced Pension Liability in
Financial Report (ACFR)
No (Show up as an asset on the
City’s financial statements) Yes
Control of Investment
Strategy Yes No
Funds Managed By Trust Administrator CalPERS
Flexibility in Uses Yes No
Enhanced Budgetary
Flexibility Yes No
Savings Varies; Depends on when City
utilizes funds to pay liabilities
Immediate; Length of time
varies based on which
amortization component is paid
off
Exhibit B
Recommended Budget Policy & Practices Amendments
General Fund Contingency Reserve
The purpose of the General Fund Economic Contingency Reservereserves is to strengthen the City’s ability to withstand financial emergencies, such as those that may result from national disasters, economic downturns, and revenue shortfalls or unanticipated expenditures of a nonrecurring nature, and to accumulate funds for large-scale purchases.

If the General Fund Economic Contingency Reservea reserve balance falls below its minimum target level, the City shall strive to restore it to the minimum target level through budgetary or other means. Unless otherwise noted in this policy, the following guidelines will be used to restore the reserve.
 If the reserve is drawn down to 75-99% of its minimum target level, it shall be restored to 100% over a 1- to 3-year period.
 If the reserve is drawn down to 50-74% of its minimum target level, it shall be restored to 100% over a 3- to 5-year period.
 If the reserve is drawn down below 50% of its minimum target level, it shall be restored to 100% over a 5- to 7-year period.

These guidelines may be suspended, in whole or part, if financial or economic circumstances are determined by the City Council to prevent meeting any or all of the timelines.

Workers’ Compensation: a minimum of one-year premium in reserve.

The cCity may participate in an risk pool Aauthority to provide healthWorkers’ Compensation insurance benefits to its employees. While in a risk pooling environment, the cCity would follow the policy(ies) of the pool authority’s plan. The City’s policy is to set the reserve account at no less than four months’ worth of premium to handle any unanticipated increases that occur mid budget year.

Pension and Post-employment Benefits
The City provides pension and medical benefits for its public safety and non-safety employees through three contracts with CalPERS. The contracts include benefit levels negotiated by the City with its employee units and for which it has executed contract amendments. The plans also include some benefit levels approved by the State Legislature without contract amendment and funding mechanisms approved by the CalPERS Board of Administration.

The Other Post-Employment Benefits (OPEB) Reserve target balance shall be an amount equal to the total net liability of the City’s other post-employment benefits (OPEB) plans. The assets of this reserve may be used only for payment of OPEB-related costs upon direction of the City Council. The balance of this reserve shall not be subject to the “Replenishment of Reserves” guidelines, and formal City Council action is required to increase the balance of this reserve or to authorize the use of any portion thereof.

Recommended Budget Policy & Practices Amendments
The purpose of reserves is to strengthen the City’s ability to withstand financial emergencies, such as those that may result from national disasters, economic downturns, and revenue shortfalls or unanticipated expenditures of a non-recurring nature, and to accumulate funds for large-scale purchases.

If a reserve balance falls below its minimum target level, the City shall strive to restore it to the minimum target level through budgetary or other means. Unless otherwise noted in this policy, the following guidelines will be used to restore the reserve.  If the reserve is drawn down to 75-99% of its minimum target level, it shall be restored to 100% over a 1- to 3-year period.
 If the reserve is drawn down to 50-74% of its minimum target level, it shall be restored to 100% over a 3- to 5-year period.
 If the reserve is drawn down below 50% of its minimum target level, it shall be restored to 100% over a 5- to 7-year period.

These guidelines may be suspended, in whole or part, if financial or economic circumstances are determined by the City Council to prevent meeting any or all of the timelines.

Once established or increased, a reserve’s balance, except that of the Irrevocable Supplemental Pension Reserve Trust, shall become committed fund balance, as defined by Governmental Accounting Standards Board Statement Number 54 (GASB 54), within its corresponding fund and, as such, shall require Council approval for all transfers and expenditures therefrom. Assets of the Irrevocable Supplemental Pension Reserve Trust shall be restricted fund balance, pursuant to GASB 54, and their use shall also require Council approval.

Workers’ Compensation
The City may participate in a risk pool authority to provide Workers’ Compensation insurance benefits to its employees. While in a risk pooling environment, the City would follow the policy(ies) of the pool authority’s plan.

Tulare City CouncilDecember 16, 2025

Tulare City Council
December 16, 2025