Agenda packet — Tulare City Council, September 15, 2026 (part 2 of 2)

Ayes:

Noes:

Absent:

Abstain:

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

Melissa Wilcox, 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.

Passed to Print:

Published:

Effective:

Item #: 8.1
General Business
Staff Report
City Council
Date: September 15, 2026
Department: City Manager
Submitted by: Marc Mondell, City Manager
Agenda Title: State and Federal Legislative Update and November Election Preview

RECOMMENDED ACTION
Receive a presentation providing an update on state and federal legislative activity and a preview of the November 2026 statewide ballot measures.

ALIGNMENT WITH STRATEGIC PRIORITIES
Organizational Excellence

SUMMARY
The City contracts with Townsend Public Affairs for state and federal legislative advocacy and governmental affairs services, including monitoring legislation, funding opportunities, and policy matters that may affect the City of Tulare.

Spencer Street, Deputy Director with Townsend Public Affairs, will provide the City Council with an update on state and federal legislative activity. The presentation will include an overview of the State budget and funding landscape, priority legislation affecting local government, federal appropriations and advocacy efforts, and the status of legislation on which the City has taken a position.

Mr. Street will also provide a preview of statewide measures appearing on the November 2026 ballot and discuss the federal appropriations outlook and upcoming funding opportunities.

The presentation is intended to keep the City Council informed of legislative, funding, and electoral developments that may affect the City and provide an opportunity for Councilmembers to ask questions regarding these matters.

FISCAL IMPACT & FUNDING SOURCES
There is no additional fiscal impact associated with receiving this presentation. Legislative advocacy and governmental affairs services are provided under the City's existing agreement with Townsend Public Affairs.

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
This item is informational only; therefore, no alternative action is necessary.

ATTACHMENTS
None
Reviewed/Approved: TG
Item #: 8.2
General Business
Staff Report
City Council
Date: September 15, 2026
Department: Finance
Submitted by: Mark Roberts, Chief Financial Officer / Treasurer Agenda Title: ACFR and Single Audit for Fiscal Year Ended June 30, 2025

RECOMMENDED ACTION
Review and accept the Annual Comprehensive Financial Report (ACFR) and Single Audit for the Fiscal Year Ended June 30, 2025.

ALIGNMENT WITH STRATEGIC PRIORITIES
Organizational Excellence

SUMMARY
The Fiscal Year 2025 ACFR was performed by Price Paige & Company auditors. Attached is the finalized ACFR and related reports, including the audit communication letter, government audit standards report, and related management comment letter.

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

ATTACHMENTS

1. Annual Comprehensive Financial Report for the Year Ended June 30, 2025

2. Single Audit Financial Statements for the Year Ended June 30, 2025 Reviewed/Approved: TG
2 25

CITY OF TULARE

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
July 1, 2024 – June 30, 2025
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Annual Comprehensive Financial Report

TABLE OF CONTENTS
PAGE

INTRODUCTORY SECTION
Letter of Transmittal ............................................................................................................................................................. i Principal City Officials ...........................................................................................................................................................vi Department Organization Chart .......................................................................................................................................... vii

FINANCIAL SECTION
Independent Auditor’s Report ............................................................................................................................................ 1 Management’s Discussion and Analysis ............................................................................................................................. 5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position .......................................................................................................................................... 22 Statement of Activities ............................................................................................................................................... 23 Fund Financial Statements:

Governmental Funds:

Balance Sheet ....................................................................................................................................................... 25 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ................................................................................................... 26 Statement of Revenues, Expenditures, and Changes in
Fund Balances .................................................................................................................................................... 27 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ............................................ 28 Proprietary Funds:

Statement of Net Position .................................................................................................................................... 29 Statement of Revenues, Expenses and Changes in Net Position ......................................................................... 30 Statement of Cash Flows ...................................................................................................................................... 31 Fiduciary Funds:

Statement of Fiduciary Net Position .................................................................................................................... 32 Statement of Changes in Fiduciary Net Position .................................................................................................. 33 Notes to the Basic Financial Statements ............................................................................................................................ 35 CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Annual Comprehensive Financial Report
TABLE OF CONTENTS (Continued)
PAGE
Required Supplementary Information:

Pension Plans:

Agent Multiple Defined Benefit Pension Plan:

Schedule of Changes in the Net Pension Liability and Related Ratios ................................................................. 83 Schedule of Contributions .................................................................................................................................... 84 Cost-Sharing Multiple-Employer Defined Benefit Pension Plan:

Schedule of the City’s Proportionate Share of the Net Pension Liability ............................................................. 85 Schedule of Contributions .................................................................................................................................... 86 Single Employer Defined Benefit Pension Plan:

Schedule of Changes in Net Pension Liability and Related Ratios ....................................................................... 87 Schedule of Contributions .................................................................................................................................... 88 Retiree Healthcare Plan (OPEB):

Schedule of Changes in the Net Other Post-Employment
Benefits (OPEB) Liability and Related Ratios ...................................................................................................... 89 Schedule of Other Postemployment Benefits Contributions ............................................................................... 90 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

General Fund (GAAP Basis) ......................................................................................................................................... 91 Developer Impact Fees Fund ....................................................................................................................................... 92 Notes to the Required Supplementary Information .......................................................................................................... 93 Combining and Individual Fund Statements and Schedules:

Nonmajor Governmental Funds:

Combining Balance Sheet ............................................................................................................................................ 95 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................................... 96 Nonmajor Special Revenue Funds:

Combining Balance Sheet ............................................................................................................................................ 99 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................................. 101 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

Senior Services Fund .......................................................................................................................................... 103 Encampment Resolution Grant Fund ................................................................................................................. 104 Housing Redevelopment CDBG Fund ................................................................................................................. 105 Gas Tax Fund ...................................................................................................................................................... 106 CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Annual Comprehensive Financial Report
TABLE OF CONTENTS (Continued)
PAGE
Combining and Individual Fund Statements and Schedules: (Continued) Nonmajor Special Revenue Funds: (Continued)
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: (Continued) Traffic Safety Fund ............................................................................................................................................. 107 COPS – State Grant Fund .................................................................................................................................... 108 Local Law Enforcement Block Grant Fund ......................................................................................................... 109 Measure R Fund ................................................................................................................................................. 110 Landscape and Lighting Fund ............................................................................................................................. 111 Fire Department Grants Fund ............................................................................................................................ 112 COPS Hiring Recovery Program Fund ................................................................................................................. 113 Office of Traffic and Safety Grant Fund ............................................................................................................. 114 Auto Theft Deterrence Fund .............................................................................................................................. 115 Police Forfeiture Fund ........................................................................................................................................ 116 Vehicle Abatement Fund .................................................................................................................................... 117 Rental Rehabilitation Fund ................................................................................................................................. 118 HOME Program Fund ......................................................................................................................................... 119 American Rescue Plan Act Fund ......................................................................................................................... 120 Nonmajor Capital Projects Fund:

Balance Sheet ............................................................................................................................................................ 122 Statement of Revenues, Expenditures and Changes in Fund Balance ...................................................................... 123 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ..................................... 124 Nonmajor Debt Service Fund:

Balance Sheet ............................................................................................................................................................ 126 Statement of Revenues, Expenditures and Changes in Fund Balance ...................................................................... 127 Statement of Revenues Expenditures and Changes in Fund Balance – Budget and Actual ...................................... 128 Nonmajor Enterprise Funds:

Combining Statement of Net Position....................................................................................................................... 134 Combining Statement of Revenues, Expenses and Changes in Net Position ............................................................ 135 Combining Statement of Cash Flows ......................................................................................................................... 136 CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Annual Comprehensive Financial Report
TABLE OF CONTENTS (Continued)
PAGE
Combining and Individual Fund Statements and Schedules: (Continued) Schedule of Expenditures by Department – Budgetary Level of Control – Budget and Actual (GAAP Basis) – General Fund ........................................................................................................... 138 Expenditures – Budget and Actual – Measure I Sales Tax Revenues and Related Expenditures ............................................................................................................................................... 139 Long-Term Debt Recorded in Private Purpose Trust Fund ............................................................................................... 140

STATISTICAL SECTION
Net Position by Component ............................................................................................................................................. 143 Changes in Net Position ................................................................................................................................................... 144 Fund Balances of Governmental Funds ............................................................................................................................ 146 Assessed Value and Estimated Actual Value of Taxable Property ................................................................................... 147 Direct and Overlapping Property Tax Rates ..................................................................................................................... 148 Historical Sales and Use Tax Rates ................................................................................................................................... 149 Principal Property Taxpayers ............................................................................................................................................ 150 Assessed Value and Estimated Actual Value of Taxable Property ................................................................................... 151 Assessed Value of Property by Use Code, City-Wide ....................................................................................................... 152 Property Tax Levies and Collections ................................................................................................................................. 153 Schedule of Taxable Sales by Category ............................................................................................................................ 154 Principal Producers ........................................................................................................................................................... 155 Ratios of Outstanding Debt by Type ................................................................................................................................. 156 Ratios of General Bonded Debt Outstanding ................................................................................................................... 158 Direct and Overlapping Debt ............................................................................................................................................ 159 Legal Debt Margin Information ........................................................................................................................................ 160 Pledged Revenue Coverage .............................................................................................................................................. 161 Demographic and Economic Statistics ............................................................................................................................. 162 Principal Employers .......................................................................................................................................................... 163 Full-Time and Part-Time City Employees by Function ...................................................................................................... 164 Operating Indicators by Function ..................................................................................................................................... 165 Capital Asset Statistics by Function .................................................................................................................................. 166

INTRODUCTORY SECTION
Department of Finance
411 E Kern Ave., Tulare, CA 93274
559.684.4260 | www.tulare.ca.gov
June 29, 2026
Honorable Mayor, Members of the City Council, and Citizens of the City of Tulare, California:

It is our pleasure to submit the Annual Comprehensive Financial Report (ACFR) of the City of Tulare (the “City”) for the fiscal year ended June 30, 2025. The ACFR has been prepared in conformity with generally accepted accounting principles in the United States of America (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB) and has been audited in accordance with generally accepted auditing standards by an independent firm of licensed certified public accountants.

This letter of transmittal provides a non-technical summary of the City’s finances. Management’s Discussion and Analysis (MD&A), which provides a narrative introduction, overview, and analysis of the basic financial statements, complements this letter of transmittal and should be read in conjunction with it. MD&A can be found immediately following the report of the independent auditors, which begins on page 1 of the Financial Section.

This report consists of management’s representations concerning the finances of the City. Therefore, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed both to protect the City's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, internal controls have been designed to provide reasonable, rather than absolute, assurance the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included.

Price Paige & Company, an independent auditing firm of certified public accountants, has issued an “unmodified” opinion on the City’s financial statements for the fiscal year ended June 30, 2025. This opinion is the most favorable conclusion and indicates the City's financial statements for fiscal year 2025 are fairly presented in accordance with GAAP. The independent auditor’s report is presented as the first component of the financial section of this ACFR and, as noted above, begins on page 1 of the section.

The independent audit of the financial statements of the City was part of a broader, federally mandated “single audit” designed to meet the special needs of federal grantor agencies. The standards governing single audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on internal controls and compliance with legal requirements, with emphasis on those involving the administration of federal awards. The City’s Single Audit Report is issued separately.

The ACFR is organized into three sections:
 The Introductory Section provides this transmittal letter, which includes information about the form and operation of the government, the community, and the economic activities of the City and surrounding area.
 The Financial Section contains MD&A; the financial statements, including notes to the financial statements; required supplementary information, including notes to the supplementary information; and combining and individual fund statements.  The Statistical Section includes tables containing historical financial data, debt statistics, and miscellaneous social and economic data of potential interest to readers of financial documents.

The section also includes ten-year revenue and expenditure data.

PROFILE OF THE CITY OF TULARE
The City was incorporated on April 5, 1888, as a general law city. On May 1, 1923, the City was granted a Freeholders’ Charter by the State of California and operates under the council-manager form of government. The City Council comprises five members who are elected by district to staggered fouryear terms. The City Council selects one of its members to serve as Mayor for a two-year term. The City Council is responsible for making policy, passing ordinances, adopting the budget, appointing committees, and hiring the City Manager and the City Attorney. The City Manager is responsible for carrying out the ordinances and policies of the City Council and overseeing operations. All other department heads are appointed by the City Manager.

The City occupies a land area of 20.5 square miles and is located in Tulare County in California’s San Joaquin Valley, the southern half of the Central Valley, approximately midway between the cities of Fresno and Bakersfield. Tulare County ranks first nationwide in dairy production and overall agricultural production. And as an agrarian community anchored by the dairy industry, the City has developed a balanced economic base by expanding its light industrial opportunities, food production capabilities, retail sales outlets, and residential housing markets. The City had an estimated population of 73,002 as of January 1, 2025.

The City provides a full range of municipal services, including those required by statute or charter. These services include police and fire; parks and community services (including a crosstown trail, a senior center, a teen center, and a cycle park); engineering; water, solid waste, sewer, and wastewater treatment and collection (public utilities); street maintenance, sweeping, and construction; planning, zoning, and building inspection; a municipal airport; a library; economic development; housing and community development; finance, treasury, and accounting; and human resources, risk management, and general administration. The public utilities are governed by the Board of Public Utilities Commissioners, which consists of five commissioners appointed by the City Council.

BUDGET
The Freeholders’ Charter of the City of Tulare requires the City Manager to submit an estimate of revenues and expenditures for the ensuing year to the City Council on or before the second regular meeting in May of each year, and the City Council adopts the budget by resolution prior to the beginning of each fiscal year, July 1. The budget is organized by fund, department, and division and serves as the foundation for the City’s fiscal planning and financial control.

After adoption of the budget, the City Council or Board of Public Utilities Commissioners, as applicable, must approve any revisions resulting in an increase to the combined total of appropriations and transfers of any fund. The City Manager is authorized to transfer appropriations within a fund.

The City Council adopted a balanced General Fund (unconsolidated) budget for fiscal year 2025 with a surplus (i.e., financing sources over financing uses) of $3,800. However, due to significantly greater than projected revenues, offset only partially by higher than budgeted expenditures and transfers out, financing sources exceeded uses by $2.0 million, a positive variance of $2.0 million. As seen in the table below, the City’s major General Fund revenue sources show a minimal decrease from fiscal year 2024 to fiscal year 2025.

General Fund Revenues FY 24 FY 25
Increase/
(Decrease)
Over Prior Year
%
Increase/
(Decrease)
Sales Tax $24,875,477 $24,635,211 ($240,256) (0.97)
Property Tax 15,503,121 16,959,350 1,456,229 9.39
Utility Users’ Tax 8,582,573 11,341,975 2,759,402 32.15 Transient Occupancy Tax 1,683,824 1,345,499 (338,325) (20.09) Total $50,644,995 $44,649,837 $3,637,050 7.18
The cost of pensions for City employees continues to grow. According to actuarial valuation reports available from the City’s pension administrator, California Public Employees’ Retirement System (CalPERS), as of July 2025, pension expenses are expected to grow 28.6% over the succeeding five years. This sharp rise is a result of changes to CalPERS’ actuarial methodology and its lower-thanprojected earnings in previous years. CalPERS approved a multi-year smoothing method to spread the rate increase associated with moving from a rolling 30-year amortization period to a fixed 30-year amortization period. In December 2016, CalPERS decreased the rate of return used to project earnings on its portfolio of investments by 0.50% per year, to 7.00%. The combination of methodology changes and resulting rate increases will continue to have a significant impact on retirement costs for the City.

Actual CalPERS time-weighted net rates of return for fiscal years 2023 through 2025 were 5.8%, 9.3%, and 11.6% %, respectively. Based upon estimates from CalPERS’ valuation reports, the rate changes and investment returns will increase the City’s annual pension cost by an average of approximately $0.6 million per year for the next five years, with increases ranging from less than $0.1 million to $1.0 million.

LOCAL ECONOMY
As noted above, the City of Tulare’s estimated population (revised) was 72,495 as of January 1, 2025, with anticipated growth of 0.6% over the next year. The Tulare County population (revised) was approximately 488,798 as of January 1, 2025, and was expected to increase by 0.2%.

The Tulare County unemployment rate, not seasonally adjusted, was 10.7% in June 2025, up from 10.2% in June 2024. (Reliable City unemployment data unavailable). Unemployment increased slightly, from

5.3% to 5.4%, in California from June 2024 to June 2025 and remained flat at 4.1% nationally.

The Consumer Price Index for All Urban Consumers (CPI-U) improved for both California and the United States during fiscal year 2025. The State CPI-U averaged 3.0%, down from the fiscal year 2024 average of 3.4%, while the US CPI-U changed from 3.1% to 2.7%. During fiscal year 2025, the Federal Open Market Committee reduced the federal funds rate by a cumulative 1.00% in a continued effort to slow inflation, lowering it by 0.50% in September 2024 and 0.25% in both November and December 2024.

The federal funds rate ended the year at the target range of 4.25%-4.50%.

Housing indicators are down. Privately owned housing units authorized nationally decreased 4.4% from June 2024 to June 2025. Housing starts were down 0.5% for the same period, and completions fell

24.1%.

LONG-TERM FINANCIAL PLANNING
An integral part of the City’s budget process is to identify and plan for the future of the infrastructure needs of the City. The City Council and City management created “The Rehabilitation and Economic Advancement Projects (REAP) Program” to develop a five- to ten-year program to rebuild infrastructure to pave the way for city-wide economic benefits. By maintaining a healthy infrastructure and building additional capacity, the City’s ability to meet the needs of a growing economic base can be met. The REAP Program is intended to lead the City toward meeting its obligation to be an excellent local government.

In 2016, the City developed and implemented the Hydrological Enterprise Program (HEP), which outlines annual goals related to water systems supply, demand, asset replacement, rehabilitation, and maintenance. The HEP is a holistic, integrated approach to the City’s management of its water, wastewater, and surface water operations with the goal of reaching and maintaining net zero groundwater extraction by balancing water demand and renewable supplies.

To ensure operational continuity, maintain its ability to provide quality, comprehensive services to the community, and attract business investment, the City has established various financial reserves. General Fund reserves are maintained to enhance the City’s ability to withstand financial emergencies, such as those which may result from natural disasters, economic downturns, or unanticipated expenditures of a non-recurring nature. The Economic Incentive Reserve provides funding to assist new and existing businesses to locate or expand in the City. And other reserves provide for ongoing replacement and/or acquisition of equipment and technology and for system improvements, to ensure City staff have the tools to effectively and efficiently perform their work to serve the City’s customers.

Accounting System and Internal Controls. The City’s accounting system is organized and operated on a fund basis. Each fund is a distinct self-balancing accounting entity. Various funds utilized by the City are described in Note 1 of the Notes to the Basic Financial Statements. The City’s accounting records for general governmental operations are maintained on a modified accrual basis of accounting, whereby revenues are recognized when measurable and available, and expenditures are recognized when materials and services are received. Accounting records for the enterprise and internal service funds are recorded on an accrual basis of accounting, whereby revenues are recognized when earned and expenses are recognized when incurred.

In developing and evaluating the City’s accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that (a) the cost of a control should not exceed the benefits likely to be derived and (b) the evaluation of costs and benefits requires estimates and judgments by management.

All internal control evaluations occur within this framework. We believe that the City’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. However, the City recognizes that even sound internal controls have their inherent limitations. Internal controls are reviewed to ensure the City’s operating policies and procedures are being adhered to and that the controls are adequate to ensure accurate and reliable financial reporting to safeguard the City’s assets. The fiscal year 2025 City appropriation limit established as required by State statute was $79,273,535.

Cash Management. The City maintains a cash and investment pool that is available for use by all funds.

Each fund type’s portion of this pool is displayed on the combined balance sheet as cash and investments.

The City Council has adopted an investment policy in accordance with California Government Code Sections 16429.1 et seq. and 53600 et seq. with the goal of minimizing credit and market risks while maintaining a competitive yield on the City’s portfolio. The City is also governed by State statutes authorizing the City to invest in bonds or other evidence of indebtedness of the US Government or any of its agencies and instrumentalities, repurchase agreements, and bankers’ acceptances.

Budgetary Controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. The level of budgetary control is established at the fund level. The City also maintains an encumbrance accounting system as one technique for accomplishing budgetary control. Unencumbered amounts lapse at yearend. However, encumbrances and certain capital projects are re-appropriated as part of the following year’s budget.

Independent Audit. The City Charter requires an annual audit by independent certified public accountants. The accounting firm of Price Paige & Company was selected by the City Council to perform the annual audit. In addition to meeting the requirements set forth in state statutes, the audit is also designed to meet the requirements of the Federal Single Audit Act of 1984, the Comptroller General of the United States, and the provisions of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The auditor’s report covers the basic financial statements, including the notes to the financial statements.

Awards. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting (“Certificate of Achievement”) to the City for its ACFR for the fiscal year ended June 30, 2023, marking the 26th consecutive year the City has received this prestigious award. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized ACFR. The ACFR must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements.

The City believes its ACFR for the fiscal year ended June 30, 2024, meets the Certificate of Achievement Program’s requirements and submitted the ACFR for consideration for a Certificate of Achievement.

However, review of the document has not yet been completed.

Bond Rating. The City’s currently outstanding bonds are rated AA (insured) by Standard & Poor’s. The rating continues to reflect sound financial management and prudent budgetary practices.

Acknowledgments. The preparation of this document could not have been accomplished without the dedicated services of the entire staff of the Department of Finance. I would also like to thank the Mayor, City Council, and the City Manager for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. We also recognize our auditors, Price Paige & Company, for their significant and competent assistance.

Sincerely,
Mark Roberts
Chief Financial Officer & Treasurer
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Principal City Officials
vi

CITY COUNCIL
Patrick Isherwood Mayor, District 5
Stephen C. Harrell Vice Mayor, District 3
Jose Sigala Council Member, District 1
Terry A. Sayre Council Member, District 2
Dennis A. Mederos Council Member, District 4

BOARD OF PUBLIC UTILITIES COMMISSIONERS
Ray Fonseca President
Tony Sozinho Vice President
Renee Soto Commissioner
Blake Wilbur Commissioner
Brian Nunes Commissioner

ADMINISTRATIVE OFFICIALS AND DEPARTMENT HEADS
Marc Mondell City Manager
Shonna Oneal Human Resources Director
Jason Glick Community Services Director
Fred Ynclan Chief of Police
Thomas W. Gaffery IV Assistant City Manager
Michael Miller City Engineer
Traci Myers Community & Economic Development Executive Director Michael Ott Fire Chief
Mark Roberts Finance Director/Treasurer
Trisha Whitfield Public Works Director
Jason Bowling Information Technology Director
Mario Anaya Community Development Director
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Department Organization Chart
vii

FINANCIAL SECTION
1 INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of Tulare, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Tulare, California (the 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 as listed in the table of contents.

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

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

Change in Accounting Principle
The City adopted new accounting guidance, GASB Statement No. 101 – Compensated Absences in 2025. Our opinion is not modified with respect to this matter.

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the Required Supplementary Information (RSI), as noted 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 Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.

Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance 3 with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon.

Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have issued a report dated June 29, 2026 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Clovis, California
June 29, 2026
4 Management’s Discussion and Analysis
CITY OF TULARE| JUNE 30, 2025
Management’s Discussion and Analysis
5 This discussion and analysis of the financial performance of the City of Tulare (the City) provides an overview of the City's financial activities for the fiscal year ended June 30, 2025. The Government-Wide statements present a combined picture of the City on a full accrual basis of accounting, where all debts and assets are included in the presentation. Conversely, the fund-level statements present a picture based upon the modified accrual basis of accounting, where long-term assets and debts are excluded. Thus, the Government-Wide and fund-level presentations produce different results based on the type of accounting basis used. Please read this document in conjunction with the accompanying Transmittal Letter and the Basic Financial Statements.

FINANCIAL HIGHLIGHTS
 The assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $521.08 million at the close of the most recent fiscal year, which is a $35.5 million, or 7.31%, increase in comparison with the prior year. Of this amount, $139.75 million (unrestricted net position) may be used to meet the City's ongoing obligations to its citizens and creditors. The City has $309.55 million in net investment in capital assets.

The total net position includes all major infrastructure networks.  The City's total net position increased by $35.5 million over the prior fiscal year. The majority of this increase is attributable to the increase in restricted and unrestricted fund balance, with a combined increase of $32.29 million.
 As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balance of $108.5 million, an increase of $6.21 million in comparison with the prior year. Amounts available for spending include restricted, committed, assigned, and unassigned fund balances. Of the total fund balance, $9.17 million was classified as nonspendable, primarily representing amounts not in spendable form or legally or contractually required to remain intact. Additionally, $71.78 million was restricted by law or externally imposed requirements, $869,537 was committed for specific purposes, and $5.80 million was assigned by management for long-term capital improvement projects, reflecting amounts constrained by the City’s intent.  The City's total outstanding debt showed a net decrease of $6.82 million due to consistent execution of regular annual principal payments.

OVERVIEW OF THE FINANCIAL STATEMENTS
The City's Basic Financial Statements are comprised of three components: 1) Government-Wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to the Basic Financial Statements. This report also contains other supplementary information in addition to the Basic Financial Statements themselves.

THE GOVERNMENT-WIDE FINANCIAL STATEMENTS
The Government-Wide Financial Statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business. The statements present the financial picture of the City using the economic resources measurement focus and the accrual basis of accounting. They present governmental activities and business-type activities separately. Additionally, certain eliminations have occurred as prescribed by the Governmental Accounting Standards Board (GASB) statements with respect to interfund activity, payables, and receivables.

The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities. These statements include all assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the City using the accrual basis of accounting, which is similar to the accounting methodology used by most privatesector companies. All of the current year's revenues and expenses are taken into account, regardless of when cash is received or paid.

The Statement of Net Position reflects the City's net position, and the Statement of Activities reports changes in it. Net position is the difference between assets and deferred outflows of resources, and liabilities and deferred inflows of CITY OF TULARE| JUNE 30, 2025
Management’s Discussion and Analysis
6 resources, which is one way to measure the City's financial health, or financial position. Over time, increases or decreases in the City's net position are one indicator of whether its financial health is improving or deteriorating. Other factors to consider are changes in the City's property tax base and sales tax base.

In these statements the City’s activities are separated as follows:

Governmental Activities - Most of the City's basic services are reported in this category, including the General Government, Police, Fire, Public Works, Parks, Recreation, and Library. Property and sales taxes, user fees, interest income, franchise fees, and state and federal shared revenues and grants generally finance these activities.

Business-Type Activities - The City charges a fee to customers to cover all or most of the cost of certain services it provides. The City's Water Fund, Sewer/Wastewater Fund, Solid Waste Fund, Development Services Fund, Aviation Fund, and Transit Fund are reported in this category.

The Fund Financial Statements include statements for each of the three categories of activities: governmental, businesstype, and fiduciary. The governmental activities statements are prepared using the current financial resources measurement focus and modified accrual basis of accounting. The business-type activities and fund financial statements are prepared using the economic resources measurement focus and the accrual basis of accounting. Reconciliations of the Fund Financial Statements to the Government-Wide Financial Statements are provided to explain the difference created by the integrated approach.

FUND FINANCIAL STATEMENTS
The City, like other state and local governments, uses fund accounting to account for a number of funding sources and activities. In general, fund accounting provides a mechanism to separately account for a variety of different funding sources and enables the City to demonstrate compliance with legal and/or contractual requirements that may be associated with these funds. Thus, the accompanying fund financial statements present individual funds, organized into one of three groups based on the nature of the activities and their purpose: governmental, proprietary, or fiduciary Funds. Note that the fund financial statements only present the most significant (or major) funds. In addition, the fund financial statements include a schedule that reconciles the Fund Financial Statements to the Government-Wide Financial Statements. This is designed to explain the difference created by the integrated approach.

Governmental Funds - Most of the City's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using the modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cash. The Governmental Fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources available to be spent in the near future to finance the City's programs. The differences of results in the governmental funds financial statements to those in the Government-Wide Financial Statements are explained in a reconciliation schedule following each governmental funds’ financial statement.

Proprietary Funds - When the City charges customers for the services it provides, whether to outside customers or to other units of the City, these services are generally reported in proprietary funds. Proprietary funds are reported in the Statement of Net Position and the Statement of Revenues, Expenses, and Changes in Net Position. The City’s enterprise fund activities are those reported as Business-Type Activities in the Government-Wide Financial Statements but more detail and additional information, such as cash flows, is provided in the proprietary fund statements. The City uses internal service funds (the other component of proprietary funds) to report activities that provide supplies and services for the City’s other programs and activities – such as the City’s self-insurance, fleet maintenance, and purchasing funds.

The internal service funds are reported within Governmental Activities in the Government-Wide Financial Statements.

CITY OF TULARE| JUNE 30, 2025
Management’s Discussion and Analysis
7 Fiduciary Funds - The City is the trustee, or fiduciary, for certain funds held on behalf of various third parties. The City’s fiduciary activities are reported in separate statements, the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position. The City excludes these activities from the City's other financial statements because the City cannot use assets it holds as a fiduciary to finance its operations. The City is responsible for ensuring the assets reported in these funds are used for their intended purposes.

Notes to Basic Financial Statements - The Notes to Basic Financial Statements provide information essential to a full understanding of the data provided in the Government-Wide and Fund Financial Statements.

Other Information - In addition to the Basic Financial Statements and accompanying Notes, this report also presents certain "required supplementary information" concerning the City’s progress in funding its obligation to provide pension and other postemployment benefits to its employees and budgetary comparison schedules for the General Fund and other major funds.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
As noted earlier, net position may serve over time as a useful indicator of a government's financial health. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $521.08 million at the close of the most recent fiscal year, which is a $35.51 million, or 7.31%, increase in comparison with the prior year.

The largest portion of the City's net position (59.40%) reflects its investment in capital assets (e.g., land, buildings, machinery, infrastructure, and equipment), less any related debt used to acquire those assets that is still outstanding and cash and investments with fiscal agents which are restricted for capital assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate the liabilities.

Of the total $831.46 million in assets, approximately 30.57%, $254.19 million, consists of cash and investments. These funds are invested in accordance with State law and the City's investment policy and include funds legally and/or contractually restricted as to their use.

CITY OF TULARE| JUNE 30, 2025
Management’s Discussion and Analysis
8 City of Tulare
Statement of Net Position
As of June 30, 2025 and 2024
2025 2024 2025 2024 2025 2024
ASSETS
Current and other assets $ 168,978,213 166,281,902 $ 131,747,625 $ 124,074,464 $ 298,029,527 $ 293,052,677 $ Capital assets (net of depreciation) 194,717,895 220,021,753 313,408,939 313,962,467 533,430,692 508,680,362 Total assets 363,696,108 386,303,655 445,156,564 438,036,931 831,460,219 801,733,039

DEFERRED OUTFLOWS OF RESOURCES
Pensions 24,447,996 17,805,740 3,023,844 6,151,780 20,829,584 30,599,776 Other post-employment benefits (OPEB) 300,357 322,044 79,169 122,697 379,526 444,741 Deferred charges - - 788,000 834,269 788,000 834,269
Total deferred outflows of resources 18,106,097 24,770,040 3,891,013 7,108,746 21,997,110 31,878,786

LIABILITIES
Current and other liabilities 28,773,365 20,326,211 6,306,056 5,265,048 26,632,267 34,038,413 Long-term liabilities 103,291,357 109,276,467 194,012,021 206,360,446 303,288,488 309,651,803 Total liabilities 132,064,722 129,602,678 200,318,077 211,625,494 329,920,755 343,690,216

DEFERRED INFLOWS OF RESOURCES
Pensions 2,258,350 767,964 84,593 253,455 852,557 2,511,805 Other post-employment benefits (OPEB) 1,164,766 1,058,750 279,065 443,770 1,337,815 1,608,536 Leases - 83,736 177,863 225,107 261,599 225,107
Total deferred inflows of resources 1,910,450 3,423,116 541,521 922,332 2,451,971 4,345,448

NET POSITION
Net investment in capital assets 174,863,208 178,020,818 131,529,276 131,470,223 309,550,094 306,333,431 Restricted 55,921,884 71,788,968 - - 71,788,968 55,921,884 Unrestricted 23,086,838 22,193,218 116,658,703 101,127,628 139,745,541 123,320,846 Total net position $ 252,978,310 272,896,624 $ 248,187,979 $ 232,597,851 $ 521,084,603 $ 485,576,161 $ Governmental Activities Business-Type Activities Total
Governmental Activities - Total assets for Governmental Activities increased by $22.6 million, with a current and other assets decrease of $2.69 million and a capital assets increase of $25.3 million. Total liabilities decreased by $2.46 million with current and other liabilities decreasing by $8.4 million and long-term liabilities increasing by $5.98 million.

Of the $19.9 million increase in Governmental Activities’ total net position, unrestricted net position increased by $893,619, restricted net position increased by $15.86 million, and net investment in capital assets increased by $3.15 million.

CITY OF TULARE| JUNE 30, 2025
Management’s Discussion and Analysis
9 Business-Type Activities - Total assets for Business-Type activities increased by $7.1 million with an increase in current and other assets of $7.67 million and a decrease in capital assets of $553,528. Total liabilities decreased by $11.3 million with current and other liabilities increasing by $1.04 million and long-term liabilities decreasing by $12.34 million. Total net position for Business-Type Activities increased by $15.59 million. Business-Type Activities’ unrestricted net position increased by $15.53 million.

Change in Net Position of the City
The following table presents the government-wide changes in net position for both 2024 and 2025. The City's total revenues of $174.34 million exceeded transfers and expenses of $139.34 million for an increase in net position of $35 million.

Statement of Activities
As discussed above, the Statement of Net Position measures the City’s financial position at a specific point in time, typically year-end. The Statement of Activities explains how net position changed during the year, showing whether it increased or decreased. Together, these statements indicate whether the City’s overall financial position improved or declined as of June 30, 2025, compared with June 30, 2024.

CITY OF TULARE| JUNE 30, 2025
Management’s Discussion and Analysis
10 City of Tulare
Statement of Activities
For the Years Ended June 30, 2025 and 2024
Governmental Activities Business-Type Activities Total
2025 2024 2025 2024 2025 2024

REVENUES
Program revenues:

Charges for services $ 13,081,819 16,890,867 $ 65,626,042 $ 68,726,473 $ 82,516,909 $ 81,808,292 $ Operating grants and contributions 4,807,245 5,389,637 174,232 806,306 5,563,869 5,613,551 Capital grants and contributions 15,365,829 3,639,093 2,031,182 1,126,406 5,670,275 16,492,235 General revenues:

Taxes 58,364,367 61,998,438 - - 61,998,438 58,364,367
Rental income 162,833 270,276 - - 270,276 162,833
American Rescue Plan Act 3,009,724 8,314,510 - - 8,314,510 3,009,724 Gain on disposal of fixed assets 2,250 - - 1,200 - 3,450 Investment earnings (losses) 3,553,050 3,583,204 4,868,863 3,856,291 8,452,067 7,409,341 Miscellaneous 2,117,641 1,418,023 144,622 1,269,979 1,562,645 3,387,620 Total revenues 100,464,758 101,504,048 72,844,941 75,786,655 174,348,989 176,251,413

EXPENDITURES
Governmental activities:

General government 8,145,106 19,464,814 - - 19,464,814 8,145,106 Intergovernmental 4,325 - - - - 4,325
Public safety 37,466,084 40,506,312 - - 40,506,312 37,466,084 Public works 2,769,951 3,199,686 - - 3,199,686 2,769,951 Community development 7,762,574 5,556,610 - - 5,556,610 7,762,574 Community services 9,582,490 10,917,265 - - 10,917,265 9,582,490 Library and cultural 2,040,796 2,402,152 - - 2,402,152 2,040,796 Interest on long-term debt 1,450,913 1,251,902 - - 1,251,902 1,450,913 Business-type activities
Aviation - - 568,657 499,940 568,657 499,940
Transit - - 733,617 823,690 733,617 823,690
Development Services - - - 4,798,302 - 4,798,302
Water - - 12,465,118 12,581,427 12,465,118 12,581,427
Solid Waste - - 12,434,390 11,779,026 12,434,390 11,779,026 Sewer - - 29,844,582 27,645,793 29,844,582 27,645,793
Total expenses 83,298,741 69,222,239 56,046,364 58,128,178 139,345,105 127,350,417 Change in net position before transfers 18,205,307 31,242,519 16,798,577 17,658,477 35,003,884 48,900,996 Transfers (5,196,278) 6,304,161 (6,304,161) 5,196,278 - - Net change in net position 24,509,468 26,046,241 10,494,416 22,854,755 35,003,884 48,900,996 Net position - beginning, as previously reported 223,906,500 252,978,310 232,597,851 210,030,010 485,576,161 433,936,510 Restatement (see footnote 15) 3,025,569 (4,591,154) 5,095,712 (286,914) 504,558 2,738,655 Net position - beginning, as restated 226,932,069 248,387,156 237,693,563 209,743,096 486,080,719 436,675,165 Net position - ending 272,896,624 $ 252,978,310 $ 248,187,979 $ 232,597,851 $ 521,084,603 $ 485,576,161 $ CITY OF TULARE| JUNE 30, 2025
Management’s Discussion and Analysis
11 Governmental Activities - Governmental activities increased the City's net position by $24.51 million during the year. The main increase in the City's net position is due to an increase in restricted and unrestricted fund balance. In the table below, the difference between the program revenues and expenses bars by activity illustrates the amount each respective activity is supported by program revenues. Public Safety programs rely heavily on taxes to support their operations. -
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
General
government
Public safety Public works Community
development
Community
services
Library and
cultural
Interest on longterm debt
Expenses
Program Revenues
CITY OF TULARE| JUNE 30, 2025
Management’s Discussion and Analysis
12 Revenues and expenses in Governmental Activities have grown as the population has grown. The sales tax, gas tax, and Measure R category is the largest revenue source for governmental activities and amounts to $24.63 million, or 22.85% of the total revenues. Utility user's tax, motor vehicle-in-lieu tax, and property taxes are also significant revenue sources for the City's governmental activities, amounting to $28.03 million or 26.25% of total revenue, and public safety is the largest expense activity, amounting to $40.5 million or 48.6% of total expenses. 16%
5%
3%
23%
1%
8%
7%
18%
8%
11%
Charges for services
Operating grants and contributions
Capital grants and contributions
Sales tax, gas tax, and Measure R
Franchise tax
Motor vehicle-in-lieu
Other taxes
Miscellaneous
Property tax
Utility tax
CITY OF TULARE| JUNE 30, 2025
Management’s Discussion and Analysis
13 Governmental Activities revenue increased $1.04 million, a 1.03% increase compared to the previous fiscal year. This increase is primarily attributable to American Rescue Plan Act funds.

Total expenses in Governmental Activities had an increase of $14.08 million from the previous fiscal year for a 20.34% increase. The largest increase of $11.32 million was in General Government.

Business-Type Activities - The City operates five enterprise funds that offer water, sewer services, solid waste collection, transit service, and a municipal airport. Major revenue for the enterprise funds is charges for services, and the largest expenditure is sewer service.
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
Aviation Transit Development
Services
Water Solid Waste Sewer
Expenses
Program Revenues
CITY OF TULARE| JUNE 30, 2025
Management’s Discussion and Analysis
14 Business-type activities increased the City's net position by $10.49 million. The bar chart above compares total program revenues and expenses. Program revenues exceeded program expenses in Solid Waste by $56,862, in Water by $4.68 million, and in Sewer/Wastewater by $8.18 million. This increase was offset by program expenses exceeding program revenues in Aviation by $441,684, in Transit by $688,191.

The pie chart illustrates the distribution of business-type revenues by category. The City's business-type activities rely heavily on charges for services to fund their operations, making up 97% of total revenues. Grants and contributions revenue represent 3% of total revenue.
65,626,042 , 97%
174,232 , 0%
2,031,182 , 3%
Charges for services
Operating grants and contributions
Capital grants and contributions
Total revenues decreased by $2.94 million or 3.88% over the prior year with the Sewer/Wastewater Fund showing the largest net decrease of $2.39 million.

CITY OF TULARE| JUNE 30, 2025
Management’s Discussion and Analysis
15 FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As previously noted, the City uses fund accounting to demonstrate compliance with legal and contractual requirements.

This section provides an analysis and discussion of individual funds and fund types presented in the financial statements.

Governmental Funds - The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements.

In particular, total fund balance less the non-spendable portion is a useful measure of the City's resources available for spending at the end of the fiscal year.

As of the end of the current fiscal year, the City's governmental funds reported a combined ending fund balance of $108.5 million, an increase of $6.21 million in comparison with the prior year. The components of total fund balance are as follows (for more information see Note 13 - Fund Balances):
 Nonspendable Fund Balance - $9.17 million comprises of amounts that are not in spendable form, such as prepaid items.
 Restricted Fund Balance - $71.79 million consists of amounts with externally imposed constraints put on their use by creditors, grantors, contributions, laws, regulations, or enabling legislation. Examples of restrictions on funds are those for 1) $6.38 million for the purpose of the fund (i.e., Measure R for street projects) and 2) $2.51 million for debt service.
 Committed Fund Balance - $869,537 has been committed by the City Council for capital projects.  Assigned Fund Balance - $5.80 million consists of encumbrances and unspent construction in progress appropriations.
 Unassigned Fund Balance - $26.68 million includes the City’s General Fund Contingency Reserve of $15.30 million, Catastrophic reserve of $0.90 million, Personnel Reserve of $0.30 million, and $10.18 in residual funds that are not restricted, committed, or assigned to specific purposes. 
General Fund - The General Fund is the chief operating fund of the City. At the end of the fiscal year, the General Fund's total fund balance decreased by 16.5%, or $9.66 million to $48.75 million. The major factors for this overall decrease is an increase to public safety, community development, and capital outlay related expenditures of 8.40 million.

Other Major Governmental Funds
Developer Impact Fees was a nonmajor enterprise in the prior year. In the current year it has moved over to a major governmental fund resulting as a significant portion of the increase in the total governmental fund balances.

CITY OF TULARE| JUNE 30, 2025
Management’s Discussion and Analysis
16 Nonmajor Governmental Funds
The combined Nonmajor Governmental Funds reported total fund balance of $21.69 million at year-end. Beginning fund balance was restated downward by approximately $26.39 million due to the reclassification of the Developer Impact Fees Fund from a nonmajor governmental fund to a major governmental fund. Current-year activity increased fund balance by approximately $4.21 million, primarily due to revenues exceeding expenditures and net transfers in related to the Gas Tax fund.

Proprietary Funds – The City’s proprietary funds are shown in the government-wide financial statements. Major proprietary funds include Water, Sewer/Wastewater, and Solid Waste.

The Water Fund has a total net position of $87.86 million at the end of the fiscal year, an increase of $3.5 million over the prior year. The increase to net position is due to investment in capital assets.

The Solid Waste Fund has a total net position of $9.98 million at the end of the fiscal year, an increase of $1.17 million over the prior year. The net position increase is due to a decrease in noncurrent liabilities.

Nonmajor Enterprise Funds - The combined Nonmajor Enterprise Funds reported total net position of $10.8 million at year-end. Beginning net position was restated due to the reclassification of the Development Services Fund to the General Fund, which increased General Fund balance by approximately $2.02 million. Excluding the effect of this restatement, current-year activity resulted in a decrease in net position of approximately $805,000.

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets - The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2025, amounts to $533.43 million (net of accumulated depreciation). This investment in capital assets includes land, right-of-way, buildings, infrastructure, structures and improvements, equipment, and construction in progress. (Please refer to Note 4 – Capital Assets.)
Infrastructure assets are included within Governmental Activities, with a total investment of $99.25 million (net of accumulated depreciation). The total increase in the City’s investment in capital assets for the current fiscal year was $24.75 million (net of accumulated depreciation). Of this amount, $25.30 million was an increase to Governmental Activities and $553,528 was an decrease to Business-Type Activities. Depreciation & amortization expense of $20.44 million is netted against additions to capital assets by this amount.

CITY OF TULARE| JUNE 30, 2025
Management’s Discussion and Analysis
17 City of Tulare
Capital Assets
As of June 30, 2025 and 2024
2025 2024 2025 2024 2025 2024
Land 24,302,851 $ 24,069,960 $ 8,280,895 $ 8,280,895 $ 32,583,746 $ 32,350,855 $ Right-of-way 1,194,641 1,194,641 - - 1,194,641 1,194,641 Construction in progress (CIP) 7,402,915 9,867,153 14,825,299 19,863,287 22,228,214 29,730,440 Infrastructure 250,159,122 244,263,596 - - 250,159,122 244,263,596 Structures and improvements 104,401,070 79,786,812 409,956,368 395,777,843 514,357,438 475,564,655 Equipment 45,917,052 40,083,143 43,186,897 42,558,561 89,103,949 82,641,704 Right-to-use lease asset 386,872 - - - 386,872 -
Right-to-use SBITA asset 598,651 189,987 86,590 27,120 685,241 217,107 Less: accumulated depreciation/amortization (204,737,397) (214,341,421) (162,927,110) (152,545,239) (377,268,531) (357,282,636) Total $ 194,717,895 220,021,753 $ 313,408,939 $ 313,962,467 $ 533,430,692 $ 508,680,362 $ Governmental
Activities
Business-type
Activities Total
Long-Term Debt - At the end of the fiscal year, the City had a total debt outstanding of $209,344,742, which included the major liabilities shown in the table below. (Please refer to Note 6 – Long-Term Debt.) City of Tulare
Outstanding Debt
As of June 30, 2025 and 2024
2025 2024 2025 2024 2025 2024
Lease revenue bonds 19,781,612 $ 21,241,542 $ - $ - $ 19,781,612 $ 21,241,542 $ Revenue bonds payable - - 177,357,663 183,303,285 177,357,663 183,303,285 Leases 297,155 - - - 297,155 -
Subscription based information technology arrangements
(SBITAs) 23,228 273,296 50,382 - 323,678 23,228
Finance leases 11,584,634 11,595,271 - - 11,584,634 11,595,271 Total $ 32,860,041 31,936,697 $ 177,408,045 $ 183,303,285 $ 209,344,742 $ 216,163,326 $ Activities Total
Governmental
Activities
Business-type
CITY OF TULARE| JUNE 30, 2025
Management’s Discussion and Analysis
18 With respect to Governmental Activities, the outstanding $19,781,612 in lease revenue bonds (which includes the bond premium and discount) were issued in 2018 for $26,675,000 to refinance the 2008 lease revenue bonds and to help fund additional projects for Cartmill Corridor and the purchase and renovation of the former County Courthouse located next to City Hall of an additional $4 million. In 2024, the City entered into a lease-purchase agreement for the installation of energy cost savings infrastructure improvements. The outstanding balance for finance leases is $11,584,634.

Of the $177,408,045 outstanding debt in Business-Type Activities, $177,357,663 relates to the Sewer/Wastewater Fund for the expansion and upgrade of the sewer and wastewater plant. These bonds have been rated "AA" by Standard & Poor’s.

GENERAL FUND BUDGETARY HIGHLIGHTS
General Fund - Original and Final Budget Comparison
The City’s final General Fund budget differs from the original budget due to carry-forward appropriations for capital projects and minor supplemental appropriations approved throughout the year at Council meetings and during mid-year budget review.

Final budgeted total revenues increased by $312,900 from original $70.64 million budget.

Budgeted total expenditures increased by $42.82 million to a final budget of $111.36 million, mainly due to capital outlay related to infrastructure improvements.

General Fund – Final Budget and Actual Budget Comparison Total revenue was $5.35 million higher than the final budgeted amount, as detailed below:

Sales Tax – was $619,768 less than budgeted due to decreased consumer spending.

Property Tax – was $274,709 greater than budgeted as valuation and construction increased more than anticipated.

Utility Use Tax – was $2.89 million more than budgeted due to increases in costs.

Charges for Services – was $1,432,518 less due to increased activity in library and recreation programs.

Interest and Rentals – was $115,526 greater than budget due to market value being higher than the cost.

Total expenditures were $21,677,403 million less than budgeted. This difference is due to ongoing capital projects not completed during the current year.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES
The key assumptions in the General Fund forecast for fiscal year 2025-26 were:
 Reduction in General Fund contribution to CIP funds due to the number of existing/active projects Citywide and staff capacity to start new projects
 Increase in CalPERS unfunded liability payment by 8.79%.  Increases in employees’ salaries based on previously negotiated agreements.  County increase in property taxes for inflation of property tax value.

CITY OF TULARE| JUNE 30, 2025
Management’s Discussion and Analysis
19 REQUESTS FOR INFORMATION
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information can be sent via e-mail to:
[email protected]. Formal written requests should be addressed to: City of Tulare, Attn: Department of Finance, 411 East Kern Avenue, Tulare, California 93274.
20 Basic Financial Statements
21 Government-Wide Financial Statements
CITY OF TULARE | JUNE 30, 2025
Statement of Net Position
The notes to the basic financial statements are an integral part of this statement. 22 Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 107,866,265 119,744,124 $ 227,610,389 $ Cash and investments with fiscal agent 12,381,697 14,197,617 26,579,314 Receivables:

Accounts 6,506,010 2,319,546 8,825,556
Interest 361,689 1,014,041 1,375,730
Taxes 1,022 5,908,622 5,909,644
Intergovernmental 5,259,714 1,173,048 6,432,762
Notes 1,500,000 759,458 2,259,458
Leases 258,078 91,156 349,234
Inventories - 487,789 487,789
Prepaids - 30,750 30,750
Internal balances (2,405,214) 2,405,214 -
Loans receivable 18,364 9,312,892 9,331,256
Land held for resale - 35,000 35,000
Long-term receivables - 8,802,645 8,802,645
Nondepreciable capital assets 23,106,194 32,900,407 56,006,601 Depreciable capital assets, net 290,302,745 187,121,346 477,424,091 Total assets 445,156,564 386,303,655 831,460,219

DEFERRED OUTFLOWS OF RESOURCES
Pensions 3,023,844 17,805,740 20,829,584
Other post-employment benefits (OPEB) 79,169 300,357 379,526 Deferred charges 788,000 - 788,000
Total deferred outflows of resources 18,106,097 3,891,013 21,997,110

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 3,836,944 9,757,670 13,594,614 Accrued interest payable 799,764 202,062 1,001,826
Deposits payable 371,512 4,957,842 5,329,354
Other payable 9,153 - 9,153
Unearned revenue 1,288,683 5,408,637 6,697,320
Long-term liabilities:

Due within one year:

Compensated absences payable 559,344 2,448,654 3,007,998 Insurance claims payable - 4,124,216 4,124,216
Revenue bonds payable 6,095,622 1,524,930 7,620,552
Leases - 65,945 65,945
Subscription based information technology arrangements 23,821 137,378 161,199 Finance leases - 49,683 49,683
Due after one year:

Compensated absences payable 801,619 3,509,263 4,310,882 Net pension liability 14,873,173 65,854,509 80,727,682
Net other post-employment benefits (OPEB) liability 369,839 1,403,128 1,772,967 Revenue bonds payable 171,262,041 18,256,682 189,518,723 Leases - 231,210 231,210
Subscription based information technology arrangements 26,562 135,918 162,480 Finance leases 11,534,951 - 11,534,951
Total liabilities 200,318,077 129,602,678 329,920,755

DEFERRED INFLOWS OF RESOURCES
Pensions 84,593 767,964 852,557
Other post-employment benefits (OPEB) 279,065 1,058,750 1,337,815 Leases 177,863 83,736 261,599
Total deferred inflows of resources 541,521 1,910,450 2,451,971

NET POSITION
Net investment in capital assets 131,529,276 178,020,818 309,550,094 Restricted - 71,788,968 71,788,968
Unrestricted 23,086,838 116,658,703 139,745,541
Total net position $ 248,187,979 272,896,624 $ 521,084,603 $ CITY OF TULARE | JUNE 30, 2025
Statement of Activities
The notes to the basic financial statements are an integral part of this statement. 23 Net (Expenses) Revenues and
Program Revenues Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Business-Type Expenses Services Contributions Contributions Activities Activities Total Primary government:

Governmental activities:

General government 19,464,814 $ 9,290,136 $ 104,415 $ 2,704,520 $ (7,365,743) $ - $ (7,365,743) $ Public safety 40,506,312 637,784 1,101,442 - (38,767,086) - (38,767,086) Public works 3,199,686 52,565 - - (3,147,121) - (3,147,121) Community development 5,556,610 3,991,000 3,319,971 934,573 2,688,934 - 2,688,934 Community services 10,917,265 2,578,185 863,809 - (7,475,271) - (7,475,271) Library and cultural 2,402,152 341,197 - - (2,060,955) - (2,060,955) Interest on long-term debt 1,251,902 - - - (1,251,902) - (1,251,902) Total governmental activities 83,298,741 16,890,867 5,389,637 3,639,093 (57,379,144) - (57,379,144) Business type-activities:

Aviation 568,657 126,973 - - - (441,684) (441,684)
Transit 733,617 45,426 - - - (688,191) (688,191)
Water 12,465,118 14,964,936 174,232 2,008,928 - 4,682,978 4,682,978 Solid waste 12,434,390 12,491,252 - - - 56,862 56,862
Sewer 29,844,582 37,997,455 - 22,254 - 8,175,127 8,175,127 Total business-type activities 56,046,364 65,626,042 174,232 2,031,182 - 11,785,092 11,785,092 Total primary government 139,345,105 $ 82,516,909 $ 5,563,869 $ 5,670,275 $ (57,379,144) 11,785,092 (45,594,052) General revenues:

Taxes:

Sales 24,635,222 - 24,635,222
Property 8,844,309 - 8,844,309
Utility 11,341,975 - 11,341,975
Motor vehicle-in-lieu 8,115,041 - 8,115,041
Other 7,716,392 - 7,716,392
Franchise 1,345,499 - 1,345,499
Rental income 270,276 - 270,276
American Rescue Plan Act 8,314,510 - 8,314,510
Investment earnings 3,583,204 4,868,863 8,452,067
Miscellaneous 1,418,023 144,622 1,562,645
Transfers 6,304,161 (6,304,161) -
Total general revenues and transfers 81,888,612 (1,290,676) 80,597,936 Change in net position 24,509,468 10,494,416 35,003,884 Net position - beginning, as previously reported 252,978,310 232,597,851 485,576,161 Restatement - see footnote 15 (4,591,154) 5,095,712 504,558 Net position - beginning, restated 248,387,156 237,693,563 486,080,719 Net position - ending 272,896,624 $ 248,187,979 $ 521,084,603 $ Functions/Programs
24 Fund Financial Statements
CITY OF TULARE | JUNE 30, 2025
Governmental Funds
Balance Sheet
The notes to the basic financial statements are an integral part of this statement. 25 Developer Nonmajor Total
General Impact Fees Governmental Governmental
Fund Fund Funds Funds
ASSETS
Cash and investments $ 38,001,200 26,765,852 $ 22,832,072 $ 87,599,124 $ Cash and investments with fiscal agent - 12,899,144 1,298,473 14,197,617 Receivables:

Accounts 1,308 2,272,783 22,600 2,296,691
Interest 57,222 57,676 843,409 958,307
Taxes - 5,400,935 507,687 5,908,622
Intergovernmental - 692,495 480,553 1,173,048
Loans - - 9,312,892 9,312,892
Notes - - 759,458 759,458
Leases - 91,156 - 91,156
Land held for resale - - 35,000 35,000
Due from other funds - 7,378,325 - 7,378,325
Prepaid items - 30,750 - 30,750
Long-term receivables 8,802,645 - - 8,802,645
Total assets $ 38,059,730 64,391,761 $ 36,092,144 $ 138,543,635 $

LIABILITIES
Accounts payable and accrued liabilities $ - 7,721,566 $ 1,359,617 $ 9,081,183 $ Deposits payable - 4,957,842 - 4,957,842
Due to other funds 665 - 576,384 577,049
Other payables - - - -
Unearned revenue 2,877,986 - 2,272,643 5,150,629
Total liabilities 665 15,557,394 4,208,644 19,766,703

DEFERRED INFLOWS OF RESOURCES
Lease proceeds - 83,736 - 83,736
Deferred loans - - 10,188,737 10,188,737
Total deferred inflows of resources - 83,736 10,188,737 10,272,473

FUND BALANCES (DEFICITS)
Nonspendable - 8,833,395 35,000 8,868,395
Restricted 38,059,065 12,899,144 20,830,759 71,788,968
Committed - - 869,537 869,537
Assigned - 5,799,645 - 5,799,645
Unassigned
Economic Contingency Reserve - 15,300,000 - 15,300,000
Other reserves - 1,200,000 - 1,200,000
Remaining unassigned 4,718,447 - (40,533) 4,677,914
Total unassigned - 21,218,447 (40,533) 21,177,914
Total fund balances (deficits) 38,059,065 48,750,631 21,694,763 108,504,459 Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 38,059,730 64,391,761 $ 36,092,144 $ 138,543,635 $ CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position The notes to the basic financial statements are an integral part of this statement. 26 Amounts reported for governmental activities in the statement of net position are different because:

Total fund balances – total governmental funds $ 108,504,459 204,381,073
10,188,737
37,167,429
(202,062)
Deferred outflows of resources from pensions 17,404,500 Deferred inflows of resources from pensions 16,647,531 (756,969) Deferred outflows of resources from OPEB 289,568
Deferred inflows of resources from OPEB (731,148) (1,020,716) Compensated absences payable (5,848,161)
Net pension liability (63,921,825)
Net other post-employment benefits (OPEB) liability (1,352,723) Leases & subscription based information technology arrangements (SBITAs) (570,440) Debt issued, net of premiums and discounts (31,366,246) (103,059,395) Net position of governmental activities $ 272,896,624
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds.

OPEB-related deferrals are reported as deferred outflows and inflows of resources on the statement of net position:

Long-term liabilities are not due and payable in the current year period and, therefore, are not reported in the governmental funds balance sheet. Long-term liabilities at yearend consist of:

Internal service funds are used by the management to charge the costs to individual funds. These assets, deferred outflows of resources, liabilities, and deferred inflows of resources are included in the statement of net position.

Certain loans receivable are not due in the current period and, therefore, should not be reported in the governmental funds balance sheet.

Pension-related deferrals are reported as deferred outflows and inflows of resources on the statement of net position:

Interest payable on long-term debt does not require current financial resources.

Therefore, interest payable is not reported as a liability in the governmental funds balance sheet.

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances The notes to the basic financial statements are an integral part of this statement. 27 (Previously Major)
American Developer Nonmajor Total
General Rescue Plan Impact Fees Governmental Governmental Fund Act Fund Fund Funds Funds

REVENUES
Taxes $ - 56,265,742 $ - $ 4,719,662 $ 60,985,404 $
Intergovernmental - 4,808,222 - 12,417,994 17,226,216
Licenses and permits - 4,336,187 - - 4,336,187
Charges for services - 7,677,022 6,166,553 25,265 13,868,840 Donations - - - 47,649 47,649
Fines and forfeitures - (17,198) - 53,573 36,375
Use of money and property - 1,500,801 1,272,344 810,059 3,583,204 Interest and rentals - 270,276 - - 270,276
Loan repayments - - - 107,622 107,622
Assessments - - - 1,395,424 1,395,424
Other - 1,460,931 - (1,416) 1,459,515
Total revenues - 76,301,983 7,438,897 19,575,832 103,316,712

EXPENDITURES
Current:

General government - 8,588,477 - 100,919 8,689,396
Public safety - 37,674,851 - 626,148 38,300,999
Public works - 3,144,940 - - 3,144,940
Community development - 4,525,499 - 3,241,672 7,767,171 Community services - 8,929,310 - 1,755,918 10,685,228
Library and cultural - 1,676,083 - - 1,676,083
Capital outlay - 24,347,104 - 8,305,937 32,653,041
Debt service:

Principal - 258,850 - 1,350,000 1,608,850
Interest and fiscal charges - 535,183 - 875,750 1,410,933 Total expenditures - 89,680,297 - 16,256,344 105,936,641 Excess (deficiency) of revenues
over (under) expenditures - (13,378,314) 7,438,897 3,319,488 (2,619,929)

OTHER FINANCING SOURCES (USES)
Transfers in - 7,402,969 7,279,116 3,535,973 18,218,058 Transfers out - (6,438,615) (3,047,855) (2,646,535) (12,133,005) Proceeds on debt issuance - 795,536 - - 795,536
Sale of capital assets - (1,391) - - (1,391)
Total other financing sources (uses) - 1,758,499 4,231,261 889,438 6,879,198 Net change in fund balance - (11,619,815) 11,670,158 4,208,926 4,259,269 Fund balances (deficits) - beginning,
as previously presented - 58,413,160 - 43,874,744 102,287,904 Change within financial reporting entity (major to
nonmajor fund) - 1,957,286 26,388,907 (26,388,907) 1,957,286 Fund balances (deficits) - beginning, restated - 60,370,446 26,388,907 17,485,837 104,245,190 Fund balances (deficits) - ending $ - 48,750,631 $ 38,059,065 $ 21,694,763 $ 108,504,459 $ CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities
The notes to the basic financial statements are an integral part of this statement. 28 Amounts reported for governmental activities in the statement of activities are different because:

Net change in fund balances - total governmental funds 4,259,269 $ Capital outlay 30,648,368
Depreciation and amortization expense (7,743,001)
This amount represents the incurrence of new debt. (1,870) This amount represents long-term debt repayments. 1,450,354 This amount represents amortization of bond discounts/premiums. 109,930 This amount represents costs of compensated absences. 100,685 49,001
(3,114,709)
202,471
(117,414)
(1,333,616)
Change in net position of governmental activities 24,509,468 $ Changes to net OPEB liability and related deferred outflows and inflows of resources do not provide current financial resources or liabilities and, therefore, are not reported in the governmental funds.

The changes in net position of certain activities of the internal service funds is reported within governmental activities.

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation or amortization expense. This is the amount by which capital outlay exceeded depreciation and amortization expense in the current period.

The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to the 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 position. Also, governmental funds report the effect of prepaid insurance, premiums, original issue discounts, and deferred inflows of resources on bond refunding charge when debt is first issued, whereas these amounts are amortized to interest and expensed over the life of the debt in the government-wide statement of activities.

Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.

Interest payable on long-term debt is reported in the government-wide statement of activities, but it does not require the use of current financial resources. Therefore, the interest expense is not reported as an expenditure in the governmental funds. The following amount represents the change in accrued interest from the prior year.

Changes to the net pension liability and related deferred outflows and inflows of resources do not provide current financial resources or liabilities and, therefore, are not reported in the governmental funds.

The distribution of housing loans and corresponding payments that were recognized in the governmental funds are not recognized in the statement of activities.

CITY OF TULARE | JUNE 30, 2025
Proprietary Funds
Statement of Net Position
The notes to the basic financial statements are an integral part of this statement. 29 Governmental
Business-type activities Activities
Nonmajor Total Internal
Enterprise Enterprise Service
Water Solid Waste Sewer Funds Funds Funds
ASSETS
Current assets:

Cash and investments $ 14,039,526 14,325,562 $ 77,932,683 $ 1,568,494 $ 107,866,265 $ 32,145,000 $ Cash and investments with fiscal agent - 7,276,264 5,105,433 - 12,381,697 - Receivables:

Accounts 1,281,388 1,804,914 3,400,549 19,159 6,506,010 22,855 Interest 24,842 39,263 142,292 155,292 361,689 55,734
Taxes - - - 1,022 1,022 -
Intergovernmental - 5,259,714 - - 5,259,714 -
Loans - 8,199 10,165 - 18,364 -
Notes - - - 1,500,000 1,500,000 -
Leases - 9,062 - 249,016 258,078 -
Inventories - - - - - 487,789
Advances to other funds 413,333 - - - 413,333 -
Prepaid items - - - - - -
Total current assets 15,759,089 28,722,978 86,591,122 3,492,983 134,566,172 32,711,378 Noncurrent assets:

Nondepreciable capital assets - 14,199,378 8,434,340 472,476 23,106,194 75,000 Depreciable capital assets, net 16,348 81,898,396 199,948,056 8,439,945 290,302,745 15,565,681 Total noncurrent assets 16,348 96,097,774 208,382,396 8,912,421 313,408,939 15,640,681 Total assets 15,775,437 124,820,752 294,973,518 12,405,404 447,975,111 48,352,059

DEFERRED OUTFLOWS OF RESOURCES
Pensions 1,158,413 691,213 1,168,952 5,266 3,023,844 401,240 Other post-employment benefits (OPEB) 30,102 18,198 30,752 117 79,169 10,789 Deferred charges - 95,903 692,097 - 788,000 -
Total deferred outflows of resources 1,188,515 805,314 1,891,801 5,383 3,891,013 412,029

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 453,144 1,359,399 1,952,900 71,501 3,836,944 676,487 Accrued interest payable - 99,483 700,281 - 799,764 -
Deposits payable - 183,909 187,603 - 371,512 -
Due to other funds - - - 635,986 635,986 6,165,290
Other payable - 9,153 - - 9,153 -
Unearned revenue - PTMISEA - - - 642,225 642,225 -
Unearned revenue - Other 36,197 545,241 - 65,020 646,458 258,008 Compensated absences payable 230,455 154,189 174,700 - 559,344 45,110 Subscription based information technology arrangements - 23,821 - - 23,821 - Revenue bonds payable - 828,660 5,266,962 - 6,095,622 - Total current liabilities 719,796 3,203,855 8,282,446 1,414,732 13,620,829 7,144,895 Noncurrent liabilities:

Compensated absences payable 330,274 220,975 250,370 - 801,619 64,646 Insurance claims payable - - - - - 4,124,216
Advances from other funds - 413,333 - - 413,333 -
Subscription based information technology arrangements - 26,562 - - 26,562 - Net pension liability 5,650,042 3,410,669 5,791,814 20,648 14,873,173 1,932,694 Net other post-employment benefits (OPEB) liability 140,621 85,013 143,657 548 369,839 50,407 Revenue bonds payable - 30,315,763 140,946,278 - 171,262,041 - Total noncurrent liabilities 6,120,937 34,472,315 147,132,119 21,196 187,746,567 6,171,963 Total liabilities 6,840,733 37,676,170 155,414,565 1,435,928 201,367,396 13,316,858

DEFERRED INFLOWS OF RESOURCES
Pensions 32,139 19,396 32,941 117 84,593 10,995
Other post-employment benefits (OPEB) 106,107 64,147 108,398 413 279,065 38,034 Leases 3,575 - - 174,288 177,863 -
Total deferred inflows of resources 138,246 87,118 141,339 174,818 541,521 49,029

NET POSITION (DEFICIT)
Net investment in capital assets 16,348 64,953,351 62,169,156 8,912,421 136,051,276 15,640,681 Unrestricted 9,968,625 22,909,427 79,140,259 1,887,620 113,905,931 19,757,520 Total net position $ 9,984,973 87,862,778 $ 141,309,415 $ 10,800,041 $ 249,957,207 35,398,201 $ Adjustment to report the cumulative internal balance
for the net effect of the activity between the internal service funds and the enterprise funds over time (1,769,228) Net position of business-type activities 248,187,979 $
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Proprietary Funds
Statement of Revenues, Expenses and Changes in Net Position The notes to the basic financial statements are an integral part of this statement. 30 Governmental
Business-type activities Activities
Nonmajor Total Internal
Enterprise Enterprise Service
Water Solid Waste Sewer Funds Funds Funds
Operating revenues:

Charges for services $ 12,491,252 14,964,936 $ 37,997,455 $ 172,379 $ 65,626,022 $ - $ Departmental charges - - - - - 16,134,900
Employee Contributions - - - - - 1,413,477
Other revenues 6,440 84,148 54,034 20 144,642 -
Total operating revenues 12,497,692 15,049,084 38,051,489 172,399 65,770,664 17,548,377 Operating expenses:

General administration 56,688 637,442 97 - 694,227 337,747 Personnel services 4,311,867 2,470,141 4,549,002 (23,322) 11,307,688 1,121,527 Contractual services - - - - - 247,090
Maintenance and supplies 5,495,418 7,427,571 12,147,600 367,036 25,437,625 - Equipment usage and operation - - - - - 2,626,182
Insurance - - - - - 16,073,508
Depreciation and amortization 2,449,891 17,609 7,001,770 918,793 10,388,063 2,153,152 Total operating expenses 11,813,735 11,052,892 23,698,469 1,262,507 47,827,603 22,559,206 Operating income (loss) 3,996,192 683,957 14,353,020 (1,090,108) 17,943,061 (5,010,829) Nonoperating revenues (expenses):

Use of money and property 518,567 1,056,426 3,059,464 234,404 4,868,861 1,280,043 Intergovernmental - 2,084,525 - - 2,084,525 136,525
Other income - miscellaneous - - - - - 12,423
Interest and fiscal charges - (1,088,973) (5,172,437) - (6,261,410) - Gain (loss) on sale of assets - - - - - 71,765
Total nonoperating revenues (expenses) 2,051,978 518,567 (2,112,973) 234,404 691,976 1,500,756 Income (loss) before transfers and capital contributions 1,202,524 6,048,170 12,240,047 (855,704) 18,635,037 (3,510,073) Transfers in - 490,730 951 50,000 541,681 1,469,106
Transfers out (6,150) (6,377,400) (462,290) - (6,845,840) (1,250,000) Capital Contributions 98,635 - 22,254 - 120,889 -
Change in net position (deficit) 260,135 1,196,374 11,800,962 (805,704) 12,451,767 (3,290,967) Net position (deficits) - beginning,
as previously presented 8,819,516 84,361,553 129,642,427 9,586,232 232,409,728 38,713,356 Restatement (see footnote 15) (30,917) 3,241,090 (133,974) 843 3,077,042 (24,188) Change within financial reporting entity (major to
nonmajor fund) - - - 2,018,670 2,018,670 -
Net position (deficit) - beginning, restated 8,788,599 87,602,643 129,508,453 11,605,745 237,505,440 38,689,168 Net position (deficit) - ending $ 9,984,973 87,862,778 $ 141,309,415 $ 10,800,041 $ 249,957,207 $ 35,398,201 $ Adjustment for the net effect of the current year activity between the internal service funds and the enterprise funds (1,957,351) $ Changes in net position of business-type activities 10,494,416 $ CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Proprietary Funds
Statement of Cash Flows
The notes to the basic financial statements are an integral part of this statement. 31 Governmental
Activities
Nonmajor Total Internal
Enterprise Enterprise Service
Water Solid Waste Sewer Funds Funds Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 12,825,735 18,025,206 $ 38,958,763 $ 116,279 $ 69,925,983 $ - $ Cash received from interfund services provided - - - - - 17,786,490 Cash payments to employees (4,410,522) (2,392,790) (4,295,697) (12,082) (11,111,091) (1,209,232) Cash payments to suppliers (7,500,040) (5,781,105) (11,094,750) (315,733) (24,691,628) (231,437) Cash payments for reported claims - - - - - (16,020,349) Net cash provided by (used for) operating activities 915,173 9,851,311 23,568,316 (211,536) 34,123,264 325,472

CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES Cash received from operating grants - (3,175,189) (10,165) 28,978 (3,156,376) 788 Cash payments to (from) other funds (short-term borrowings) 103,334 (90,218) - 143,916 157,032 1,850,089 Cash payments to (from) other organizations (loans receivable) - - - - - - Cash received from transfers from other funds - 490,730 951 50,000 541,681 1,469,106 Cash payments for transfers to other funds (6,150) (6,377,400) (462,290) - (6,845,840) (1,250,000) Cash received from other revenue - - - - - 12,423
Net cash provided by (used for) noncapital and related financing activities 97,184 (9,152,077) (471,504) 222,894 (9,303,503) 2,082,406

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Cash received from capital grants - - - 2,896 2,896 136,525 Cash payments for the acquisition of capital assets 1 (6,367,094) (3,241,747) (46,727) (9,655,567) (3,916,585) Cash received from the sale of capital assets - - - - - 71,765 Cash payments for principal paid on capital debt - (802,748) (5,151,961) - (5,954,709) - Cash payments for interest on capital debt - (1,087,268) (5,154,599) - (6,241,867) - Net cash provided by (used for) capital and related financing activities 1 (8,257,110) (13,548,307) (43,831) (21,849,247) (3,708,295)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 530,785 1,068,051 3,115,654 83,474 4,797,964 1,313,457 Rental property - 6,173 - 59,804 65,977 -
Net cash provided by (used for) investing activities 530,785 1,074,224 3,115,654 143,278 4,863,941 1,313,457 Net increase (decrease) in cash and cash equivalents 1,543,143 (6,483,652) 12,664,159 110,805 7,834,455 13,040 Cash and cash equivalents - beginning 28,085,478 12,496,383 70,373,957 1,457,689 112,413,507 32,131,960 Cash and cash equivalents - ending $ 14,039,526 21,601,826 $ 83,038,116 $ 1,568,494 $ 120,247,962 $ 32,145,000 $ Reconciliation of operating income (loss) to net cash provided by (used for) operating activities:

Operating income (loss) 3,996,192 $ 683,957 $ 14,353,020 $ (1,090,108) $ 17,943,061 $ (5,010,829) $ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:

Depreciation and amortization 2,449,891 17,609 7,001,770 918,793 10,388,063 2,153,152 Changes in assets and liabilities:
(Increase) decrease in consumer receivables 3,153,034 295,512 907,274 (11,556) 4,344,264 238,113 (Increase) decrease in prepaids 3,984 4,651 31,390 28 40,053 2,017 (Increase) decrease in pension related deferred outflows 410,193 713,864 590,876 15,489 1,730,422 324,108 of resources -
Increase (decrease) accounts payable 351,755 (15,781) 1,027,948 51,303 1,415,225 129,237 Increase (decrease) unearned revenue (174,232) 32,531 - - (141,701) 140,430 Increase (decrease) in compensated absences 132,658 87,758 (1,322) - 219,094 14,553 Increase (decrease) in insurance claims payable - - - - - 2,679,341 Increase (decrease) in net pension liability (423,574) (843,468) (270,059) (48,998) (1,586,099) (319,775) Increase (decrease) in pension related deferred inflows of resources (48,590) (61,460) (72,581) (46,487) (229,118) (24,875) Net cash provided by (used for) operating activities $ 9,851,311 915,173 $ 23,568,316 $ (211,536) $ 34,123,264 $ 325,472 $ Reconciliation of cash and cash equivalents per statement of cash flows to the statement of net position:

Cash and investments 14,325,562 $ 14,039,526 $ 77,932,683 $ 1,568,494 $ 107,866,265 $ 32,145,000 $ Cash and investments with fiscal agents 7,276,264 - 5,105,433 - 12,381,697 - Cash and cash equivalents per statement of cash flows $ 14,039,526 21,601,826 $ 83,038,116 $ 1,568,494 $ 120,247,962 $ 32,145,000 $ CITY OF TULARE | JUNE 30, 2025
Fiduciary Funds
Statement of Fiduciary Net Position
The notes to the basic financial statements are an integral part of this statement. 32 Private Purpose Custodial
Trust Fund Funds
ASSETS
Cash and investments $ 630,143 2,305,693 $
Accounts receivable - 753
Interest receivable - 1,000,353
Note receivable - 9,538,429
Land held for sale - 91,321
Total assets 12,936,549 630,143

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows from deferred loans - 194,451
Total deferred outflows of resources - 194,451

LIABILITIES
Accounts payable and accrued liabilities 56,514 5,382
Interest payable - 239,885
Unearned revenue - 992,584
Deposits payable - 20,250
Bonds and advances 27,666,057 -
Total liabilities 28,924,158 56,514

DEFERRED INFLOWS OF RESOURCES
Deferred inflows from deferred loans - 439,233
Total deferred outflows of resources - 439,233

NET POSITION
$ 573,629 (16,232,391) $
Restricted for individuals, organizations, and other
governments
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
The notes to the basic financial statements are an integral part of this statement. 33 Private Purpose Custodial
Trust Fund Funds

ADDITIONS
Contributions and fundraising $ - 112,885 $
Use of money and property - 84,873
Collections on behalf of other governments & organizations:

Property taxes 1,186,361 -
Permits and other - 105,488
Total collections on behalf of other governments & organizations: 1,186,361 105,488 Total additions 1,384,119 105,488

DEDUCTIONS
Payments to other governments & organizations 164,594 858,263 Debt service (5,679) -
Total deductions 164,594 852,584
Change in fiduciary net position (deficit) (59,106) 531,535 Fiduciary net position (deficit) - beginning 632,735 (16,763,926) Fiduciary net position (deficit) - ending $ 573,629 (16,232,391) $ 34 Notes to the Basic Financial Statements
CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
35 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements of the City of Tulare (the City) have been prepared in conformity with accounting principles generally accepted in the United States of America as prescribed by the Governmental Accounting Standards Board (GASB).

The accompanying financial statements present the financial position of the City and the various funds and fund types, the results of operations of the City and the various funds and fund types, and the cash flows of the proprietary funds.

The financial statements are presented as of June 30, 2025, and for the year then ended.

A. Description of the Reporting Entity
The City was incorporated on April 5, 1888, as a municipal corporation under the General Laws of the State of California.

The City operates as a self-governing local government unit within the State of California. A five-member City Council appoints a City Administrator who administers the daily affairs under the policy guidance of the City Council. The City has limited authority to levy taxes and has the authority to determine user fees for the services that it provides. Voters elect a City Council that passes laws and determines broad policies. The City Council also oversees the operations of the City and approves all budgets, fund transfers, and fund balance reserves. Services provided by the City include public safety, streets and roads, water, sanitation, public improvements, culture and recreation, parks, building inspections, planning and zoning, redevelopment, and general administration.

Blended Component Unit
The Tulare Public Financing Authority (the Authority) is a joint exercise of powers authority duly organized and existing under a Joint Exercise of Powers Agreement dated as of August 15, 1997, by and between the City and the former Tulare Redevelopment Agency. The Authority was formed to assist the City in the financing and refinancing of public capital improvements. The Authority is governed by a five-member board whose members are the same as the City Council. The Authority's financial data and transactions are included in the City's Financing Authority Fund.

B. Basis of Presentation
Government-Wide Financial Statements
The Government-Wide Financial Statements (the Statement of Net Position and the Statement of Activities) report information of all of the nonfiduciary activities of the primary government and its blended component unit. Eliminations have been made to minimize the double counting on internal activities. lnterfund services provided and used are not eliminated in the process of consolidation. These statements distinguish between the governmental and business-type activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
36 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation (Continued)
Government-Wide Financial Statements (Continued)
The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Certain indirect costs are included as part of the program expense reported for individual functions and activities. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs, 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program, and 3) interfund services provided and used. lnterfund services provided and used are not eliminated in the process of consolidation. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues.

Net position is restricted when constraints placed on it are either externally imposed or are imposed by constitutional provisions or enabling legislation. Internally imposed designations of resources are not presented as restricted net position. When both restricted and unrestricted resources are available for use, generally it is the City's policy to use restricted resources first, then unrestricted resources as they are needed.

The funds described below were determined to be major funds by the City in fiscal year 2025. Individual nonmajor funds may be found in the Combining Financial Statements and Schedules.

The City reports the following major governmental funds:

General Fund – The General Fund is the principal operating fund of the City. It is used to account for all financial resources except those required to be accounted for in other funds.

Developer Impact Fees Fund – accounts for fees collected from developers to cover the anticipated costs of improvements that will be necessary as a result of the impact the development has on the City.

Proprietary funds account for the City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.

The City reports the following major enterprise funds:

Water Fund – The Water Fund is used to account for the financial activities of the water utility of the City.

Solid Waste Fund – The Solid Waste Fund is used to account for the financial activities of the collection of solid waste and disposal utility of the City.

Sewer Fund – The Sewer Fund is used to account for financial activities of the sewage collection and wastewater treatment utility of the City.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
37 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation (Continued)
Government-Wide Financial Statements (Continued)
The City also reports the following fund types:

Internal Service Funds - Accounts for financial transactions related to the City’s fleet management, insurance, surface water management, and purchase services. These services are provided to other departments or agencies of the City on a cost-reimbursement basis.

Fiduciary Funds – A Private Purpose Trust Fund is used to record the assets, liabilities, and the activities of the Successor Agency. Custodial funds are used to account for assets held by the City as a custodian for resources collected for the benefit of other individuals and organizations. The financial activities of these funds are excluded from the entity-wide financial statements but are presented in separate Fiduciary Fund financial statements.

C. Basis of Accounting
The government-wide financial statements, proprietary fund financial statements, and the fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements, and donations. On an accrual basis of accounting, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying transactions take place. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligible requirements have been satisfied. Unbilled water utility receivables are not recorded at year-end. However, the amount of unbilled receivables is not material to the financial statements.

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

General capital assets acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financing sources.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Revenues and expenses not meeting this definition are reported as nonoperating.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
38 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Net Position or Fund Balance, and Other Financial Statement Items Cash and Cash Equivalents
For purposes of the Statement of Cash Flows, the City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. In addition, cash invested in the City's cash management pool is considered to be cash equivalents.

Cash and Investments
The City maintains a cash and investment pool that is available for all funds. Each fund-type balance in the pool is reflected on the combined balance sheet as cash and investments. The City apportions interest earnings to all funds based on their quarterly cash balances.

The City pools cash and investments with the City Treasurer except for investments managed by fiscal agents under bonded debt agreements. Interest from bank accounts and investments are allocated quarterly to the various funds based on the fund’s contribution to the pool. The City has stated investments at fair value in the statement of net position and balance sheet. The fair value of investments is based on published market prices and quotations from major investment brokers.

Cash and investments with fiscal agent represent funds held by various trustees from proceeds of the issuance of bonds in order to establish required reserve funds and to pay bond issuance costs per the respective trust agreements.

Credit Risk – The City’s investment policy limits certain types of investments to various ratings.

Custodial Credit Risk—Deposits – 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 has a deposit policy for custodial risk that requires collateralization on certificates of deposit and repurchase (and reverse) agreements. In addition, the City maintains custodial agreements with certain independent third parties.

Concentration of Credit Risk – The City places no additional limit on the amount the City may invest in any one issuer beyond that established by the California Government Code.

Interest Rate Risk – Reserve funds may be invested in securities exceeding 10 years if the maturity of such investments are made to coincide as closely as practicable with the expected use of the funds.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
39 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Net Position or Fund Balance, and Other Financial Statement Items (Continued) Interfund Transactions
Interfund transactions are reflected as either loans, services provided or used, reimbursements, or transfers. Loans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation, and are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources.

Services provided and used, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.

Interfund transfers are generally recorded as transfers except for the following types of transactions:
 Charges for services are recorded as revenues of the performing fund and expenditures of the requesting fund.

Unbilled costs are recognized as unbilled receivables at the end of the fiscal year.  Reimbursements for costs of services performed are recorded as a reduction of expenditure in the performing fund and an expenditure of the requesting fund.

Receivables
In the government-wide financial statements, receivables consist of all revenues earned at year-end and not yet received.

Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Major receivable balances for the governmental activities include intergovernmental and taxes receivable.

Business-type activities report trade and intergovernmental as their major receivables.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
40 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Net Position or Fund Balance, and Other Financial Statement Items (Continued) Loans & Notes Receivable
The City engages in programs designed to encourage construction or improvement of housing for persons with low to moderate income and to encourage business development. Under these programs, grants or loans are provided under favorable terms to homeowners or developers who agree to spend these funds in accordance with the City’s terms. For financial statement purposes, the City has established an estimated allowance for potentially uncollectible loans. The balance of notes receivable includes loans that may be forgiven if certain terms and conditions of the loans are met.

Inventory
Inventories of materials and supplies in the proprietary and internal service funds are valued at cost, carried on a first-in, first-out (FIFO) basis. The City follows the consumption method of accounting for inventories.

Land Held for Resale
Land held for resale is recorded at the lower of cost or estimated realizable value. Fund balances are reserved in amounts equal to the carrying value of the land held for resale because such assets are not available to finance the City's current operations.

Capital Assets
The accounting treatment over property, plant, and equipment (capital assets) depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements.

Government-Wide Financial Statements
In the government-wide financial statements, land, buildings, improvements, equipment, and construction in progress are accounted for as capital assets. All capital assets are valued at historical cost, or estimated historical cost if actual is unavailable, except for donated capital assets which are recorded at their acquisition value at the date of donation.

The City's capitalization threshold, including intangible assets, is $5,000. In other words, capital assets are capitalized only if they have a cost in excess of $5,000 and have an expected useful life of three years or more. Capital assets that have a cost below $5,000 are expensed during the fiscal year they are acquired.

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

Infrastructure 20-50 years
Buildings 20-50 years
Improvements other than buildings 20-50 years
Machinery and equipment 5-20 years
Intangible assets 2-10 years
CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
41 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Net Position or Fund Balance, and Other Financial Statement Items (Continued) Capital Assets (Continued)
Government-Wide Financial Statements (Continued)
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Betterments and major improvements which significantly increase values, change capacities, or extend useful lives are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation and amortization are removed from the respective accounts and any resulting gain or loss is included in the results of operations.

Major outlays for capital assets and improvements are capitalized as projects are constructed.

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

Software Subscription Arrangements
The City has subscriptions for various information technology applications. The City recognizes subscription-based information technology arrangement (SBITA) liabilities and intangible right-to-use software arrangement assets in the government-wide financial statements as required by Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements (SBITAs). At the commencement of a subscription arrangement, the City initially measures the SBITA liability at the present value of payments expected to be made during the SBITA term. Subsequently, the SBITA liability is reduced by the principal portion of the payments made. The Intangible Right-to-Use Software Arrangement asset is initially measured as the initial amount of the SBITA liability, adjusted for payments made at or before the commencement of the subscription term. Subsequently, the intangible right-to-use software arrangement asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to SBITAs include how the City determines (1) the rate it uses to discount the expected SBITA payments to present value, (2) the SBITA term, and (3) the SBITA payments.  The City uses the interest rate charged by the SBITA vendors as the discount rate. When the interest rate charged by the SBITA vendors is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITAs.
 The subscription term includes the non-cancellable period of the arrangement. SBITA payments included in the measurement of the SBITA liability are composed of fixed payments made during the subscription term.

The city monitors changes in circumstances that would require a remeasurement of its SBITA liability and related asset and will remeasure the SBITA asset and liability if certain changes occur that are expected to significantly affect the amount of the SBITA liability. SBITA assets are reported with other capital assets and SBITA liabilities are reported with long-term debt on the Statement of Net Position. Payments made on the SBITA liability are reported as debt service expenditures within the Statement of Revenues, Expenditures and Changes in Fund Balances.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
42 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Net Position or Fund Balance, and Other Financial Statement Items (Continued) Leases
Lessee: The City is a lessee for a noncancellable lease of a building. The lessee recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases, which it has determined is the prime rate at the inception of the lease.  The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments.

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 recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental and enterprise fund financial 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 payments 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 the interest rate charged to the lessees as the discount rate. When the interest rate charged to the lessees is not provided, the City generally uses the implied rate of return as the discount rate for leases. When the implied rate of return has not been determined, the City uses its estimated incremental borrowing rate which it has determined is the prime rate at the inception of the lease.  The lease term includes the non-cancellable period of the lease. Lease receipts included in the measurement of the lease receivable are composed of fixed payments from the lessee.

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

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
43 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Net Position or Fund Balance, and Other Financial Statement Items (Continued) Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation, sick leave, and compensatory time benefits, subject to the provisions of applicable personnel policies and labor agreements. In the government-wide, proprietary fund, and fiduciary fund financial statements, compensated absences are recognized as a liability for leave that is attributable to services already rendered, accumulates, and is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Compensated absences that have been used but not yet paid are recognized as a liability when incurred. In governmental fund financial statements, compensated absences are reported only to the extent the liability is due and payable at year-end, such as amounts payable as a result of employee resignations or retirements. For additional information regarding compensated absences, see Note 6.

Long-Term Obligations
In the government-wide financial statements and proprietary fund type in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund-type Statement of Net Position. Debt principal payments of both governmental and business-type activities are reported as decreases in the balance of the liability on the Statement of Net Position. Bond premiums, discounts, and deferred gains and losses at refunding are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed in the year incurred.

In the fund financial statements, however, debt principal payments of governmental funds are recognized as expenditures when paid. Governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.

Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Net Position/Fund Balances
The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted, and unrestricted.

Net Investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and amortization and the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of these assets reduce the balance in this category.

Restricted – This category presents amounts with external restrictions on its use imposed by creditors, grantors, contributors, or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted – This category represents net position of the City, not restricted for any project or other purpose.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources as they are needed.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
44 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Net Position or Fund Balance, and Other Financial Statement Items (Continued) Net Position/Fund Balances (Continued)
The City’s fund balances are classified in accordance with Governmental Accounting Standards Board Statement No. 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type Definitions, which requires the City to classify its fund balances based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:

Nonspendable – includes net resources that cannot be spent because of their form or because of legal or contractual limitations; resources must remain intact.

Restricted – includes net resources that have externally enforceable limitations on their use. These limitations can be established by creditors, grantors, or by laws and regulations.

Committed – includes amounts with self-imposed limitations and are set in place prior to the end of the fiscal year.

Commitments are set forth by the formal action of the City's highest level of decision-making authority, the City Council, and the limitations require that same level of authority to be removed.

Assigned – includes amounts for which the intended use results in limitations but do not meet the requirements for either the "Restricted" or "Committed" classifications. Intended use can be established by the City Council, a governing committee or board, or by a City official designated as having that authority. The City's Finance Director has been designated to make assignments, through the budget, which is approved by the City Council.

Unassigned – is the residual balance of the General Fund not included in the other classifications. In other funds, the unassigned classification is used only if expenditures incurred for specific purposes exceed the amounts restricted, committed, or assigned to those purposes.

The City Council establishes, modifies or rescinds fund balance commitments and assignments by passage of a resolution.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, followed by the committed, assigned and unassigned resources as they are needed.

Property Taxes
In 1978, a state constitutional amendment (Proposition 13) provided that the tax rate be limited to 1% of market value, levied only by the County of Tulare (the County) and shared with all other jurisdictions. Such limitation on the rate may only be increased through voter approval. The County collects property taxes and distributes them to taxing jurisdictions on the basis of the taxing jurisdiction's assessed valuations and on the tax rate for voter-approved debt. In the fund financial statements, property tax is recorded as revenue in the period levied to the extent it is collected within 60 days of year-end.

The property tax calendar for the City is as follows:

Lien date January 1
Levy dates July 1 through June 30
Due dates November 1 – 1st installment
February 1 – 2nd installment
Collection dates December 10 – 1st installment
April 10 – 2nd installment
CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
45 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Net Position or Fund Balance, and Other Financial Statement Items (Continued) Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

E. Reclassifications and Eliminations
lnterfund balances must generally be eliminated in the government-wide financial statements, except for the net residual amounts due between governmental activities and business-type activities. Amounts involving fiduciary funds should be reported as external transactions. Any allocations must reduce the expenses of the function from which the expenses are being allocated, so that expenses are reported only once—in the function in which they are allocated.

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

G. Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City's plan (OPEB Plan) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Accounting principles generally accepted in the United States of America require that the reported results must pertain to liability and asset information within certain defined timeframes.

H. Deferred Outflows and Inflows of Resources
As required by GASB Statements No. 63 and No. 65, the City recognized applicable deferred outflows and inflows of resources in the government-wide and fund financial statements.

The Statements of Net Position and Balance Sheet will sometimes report separate sections for deferred outflows of resources and deferred inflows of resources. Deferred outflows of resources are defined as a consumption of net assets by the City that applies to future periods, while deferred inflows of resources represent an acquisition of net assets by the City that applies to future periods. The City has items that qualify for reporting in these categories, which are detailed in a separate note disclosure.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
46 NOTE 2 – CASH AND INVESTMENTS
Cash and investments as of June 30, 2025, are classified in the accompanying financial statements as follows:

Statement of net position:

Cash and investments 227,610,389 $
Cash and investments with fiscal agent 26,579,314
Statement of fiduciary net position:

Cash and investments 2,935,836
Total cash and investments 257,125,539 $
Cash and investments as of June 30, 2025, consist of the following:

Cash on hand 4,900 $
Deposits with financial institutions 53,838,910
Investments 203,281,729
Total cash and investments 257,125,539 $
A. Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

Maximum
Parentage/ Maximum
Maximum Amount Investment in
Authorized Investment Type Maturity of Portfolio Other Issuer Time Certificates of Deposit N/A 30% N/A
Local Agency Investment Fund (LAIF) N/A $50 million N/A Bankers Acceptances 180 days 40% 30%
Treasury Bonds and Notes 10 years N/A N/A
Treasury Bills (T-Bills) 1 year N/A N/A
Federally Sponsored Agency Securities N/A N/A N/A
Repurchase Agreements (3) 90 days N/A N/A
Medium-Term Notes/Corporate Bonds (1) 5 years 30% N/A
Money Market Mutual Funds (4) N/A 15% N/A
Commercial Paper (6) N/A 25% N/A
Zero Coupon Bonds (2) N/A N/A N/A
Passbook Savings Account Demand Deposits (5) N/A N/A N/A surplus funds.
(2) May only be purchased for purposes of bond defeasance or future capital improvement projects. a qualified safekeeping institution.
(4) Purchases may not exceed 15% of the City's surplus funds. (5)Requires investing only in Federal Deposit Insurance Corporation (FDIC) savings and loan institutions. (6) Purchases may not exceed 25% of the City's surplus funds. (1)Must be rated A or better by a nationally recognized rating service and may not exceed 30% of the City's (3) Requires physical delivery of the securities backing the repurchase agreements or safekeeping documentation to CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
47 NOTE 2 – CASH AND INVESTMENTS (Continued)
B. Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by the provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustees. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum
Parentage/ Maximum
Maximum Amount Investment in
Authorized Investment Type Maturity of Portfolio Other Issuer U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Bankers' Acceptances 180 days None None
Commercial Paper 270 days None None
Money Market Mutual Funds N/A None None
Investment Contracts 30 years None None
C. Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. None of the City's investments, as shown below, are adversely affected by changes in interest rates.

Amount 12 months or less 13 to 24 months 25 to 60 months Federal Agency Securities 123,278,850 $ 69,714,555 $ 53,564,295 $ - $ Medium-Term Notes/Corporate Bonds 27,706,851 - - 27,706,851 Local Agency Investment fund (LAIF) 38,685,128 38,685,128 - - Held by Bond Trustees:

Money Market Mutual Funds 8,528,574 8,528,574 - -
Investment Contracts 5,082,326 5,082,326 - -
Total 203,281,729 $ 122,010,583 $ 53,564,295 $ 27,706,851 $ Investment Type
Remaining Maturity (in months)
CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
48 NOTE 2 – CASH AND INVESTMENTS (Continued)
D. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.

This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year-end for each investment type:

Minimum
Legal
Amount Rating Aaa Aa A Not Rated
Federal Agency Securities 123,278,850 $ N/A - $ 120,349,200 $ - $ 2,929,650 $ * Medium-Term Notes/Corporate Bonds 27,706,851 N/A 11,903,789 4,951,657 10,851,405 - Local Agency Investment fund (LAIF) 38,685,128 Collateralized - - - 38,685,128 Held by Bond Trustees:

Money Market Mutual Funds 8,528,574 N/A - - - 8,528,574 Investment Contracts 5,082,326 N/A - - - 5,082,326
Total 203,281,729 $ 11,903,789 $ 125,300,857 $ 10,851,405 $ 55,225,678 $ * Amounts reported here as "Not Rated" are deemed to be "Withdrawn" by Moody's Rating Agency.

Investment Type
Rating as of Year-End
E. Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer that represents 5% or more of the City's total investments are as follows:

Reported
Investment Type Amount
Federal Home Loan Mortgage Corp Federal Agency Securities 33,497,625 $ Federal Home Loan Banks Federal Agency Securities 80,422,095 Total Federal Agency Securities 113,919,720 $
Investment Type
CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
49 NOTE 2 – CASH AND INVESTMENTS (Continued)
F. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). Collateral for cash deposits is considered to be held in the City's name. The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the FDIC. The City, however, has not waived the collateralization requirements.

The carrying amounts of the City's cash deposits were $53,838,910 at June 30, 2025. Bank balances before reconciling items were $55,183,523 at that date, the total amount of which was collateralized or insured with securities held by the pledging financial institutions in the City's name as discussed above.

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

G. Investments in State Investment Pool
The City is a voluntary participant in LAIF that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The State Treasurer's Office reports its investments at fair value. The fair value of securities in the State Treasurer's pooled investment program, including LAIF, generally is based on quoted market prices. The State Treasurer's Office performs a quarterly fair market valuation of the pooled investment program portfolio. In addition, the State Treasurer's Office performs a monthly fair valuation of all securities held against carrying cost. These valuations and financial statements are posted to the State Treasurer's Office website at www.treasurer.ca.gov. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

H. Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America. These principles recognize a three-tiered fair value hierarchy, as follows:
• Level 1: Investments reflect prices quoted in active markets; • Level 2: Investments reflect prices that are based on a similar observable asset either directly or indirectly, which may include inputs in markets that are not considered to be active;  Level 3: Investments reflect prices based upon unobservable sources.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
50 NOTE 2 – CASH AND INVESTMENTS (Continued)
H. Fair Value Measurements (Continued)
The City has the following recurring fair value measurements as of June 30, 2025:

Quoted Prices Significant
Active Markets Other Significant
for Identical Observable Unobservable
Assets Inputs Inputs
Totals (Level 1) (Level 2) (Level 3)
Debt Securities:

Federal Agency Security 123,278,850 $ 123,278,850 $ - $ - $ Medium-Term Notes/Corporate Bonds 27,706,851 - 27,706,851 - Total investments measured at fair value 150,985,701 123,278,850 $ 27,706,851 $ - $ Investments measured at amortized cost:

LAIF 38,685,128
Money Market Mutual Funds 8,528,574
Investment Contracts 5,082,326
Total investments measured at amortized cost 52,296,028 Total pooled and direct investments 203,281,729 $
Investment types by Fair Value Level
Fair Value Measurements Using
NOTE 3 – NOTES, LOANS AND LONG-TERM RECEIVABLES
Notes receivable for the primary government consist of:

Primary government:

Total notes receivable $ 759,458
Five secured notes receivable for various amounts from Kaweah Management for properties at 145 No B St, 445 So I St, 361 Beechwood, 484 Beechwood, and 524 Aspenwood. These loans are 55 year notes with affordability agreements. If these notes stay in compliance for the full term, then the notes are forgiven. If not, then the notes are due and payable and any funds returned to the City will be forwarded to Tulare County as program income per Federal funding rules for the Neighborhood Stabilization Program (NSP).

Loans receivable consist of:

Primary government:

HOME Program (Housing Successor Agency (HSA)) 7,853,970 $ Housing Community Development Block Grant (CDBG) loans 409,419 Rehabilitation loans 1,049,503
Others 18,364
Total loans receivable $ 9,331,256
CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
51 NOTE 3 – NOTES, LOANS AND LONG-TERM RECEIVABLES (Continued) On January 5, 2017, the Department of Finance (DOF) approved a loan between the City and Successor Agency for the amount of $10,588,362. Annual City loan payments cannot exceed 50% of the incremental growth of residual Redevelopment Property Tax Trust Fund (RPTTF) revenues between the previous fiscal year and fiscal year 2012-13. The Successor Agency intends to repay the loan as soon as possible. The balance of this long-term receivable as of June 30, 2025, was $8,802,645.

In fiscal year 1990, the City’s Aviation Fund leased land to a third party. The lease is for 45 years and the City will receive monthly payments of $304. The City recognized $1,409 in lease revenue during the current fiscal year related to this lease. As of June 30, 2025, the City’s receivable for lease payments was $39,313. 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 inflow of resources was $13,622.

In fiscal year 1997, the City’s Water Fund leased a parcel of land and a water tower to a third party. The lease is for 30 years and the City will receive monthly payments of $600. The City recognized $2,680 in lease revenue during the current fiscal year related to this lease. As of June 30, 2025, the City’s receivable for lease payments was $9,062. 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 inflow of resources was $3,575.

In fiscal year 2007, the City’s Aviation Fund leased a portion of the Tulare Airport to a third party. The lease is for 25 years and the City will receive monthly payments of $1,114. The City recognized $5,690 in lease revenue during the current fiscal year related to this lease. As of June 30, 2025, the City’s receivable for lease payments was $63,772. 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 inflow of resources was $34,618.

In fiscal year 2013, the City’s Transit Fund leased property to a third party. The lease is for 15 years and the City will receive monthly payments of approximately $4,175. The City recognized $28,213 in lease revenue during the current fiscal year related to this lease. As of June 30, 2025, the City’s receivable for lease payments was $39,900. 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 inflow of resources was $23,511.

In fiscal year 2019, the City’s General Fund leased a Cycle Park to a third party. The lease is for 5 years and the City will receive monthly payments of approximately $1,793. The City recognized $21,468 in lease revenue during the current fiscal year related to this lease. As of June 30, 2025, the City’s receivable for lease payments was $82,257. 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 inflow of resources was $75,138.

In fiscal year 2021, the City’s Aviation Fund leased an airport hanger to a third party. The lease is for 15 years and the City will receive monthly payments of $797.22 which increases by 3% per year beginning June 1, 2025. The City recognized $9,252 in lease revenue during the current fiscal year related to this lease. As of June 30, 2025, the City’s receivable for lease payments was $115,574. 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 inflow of resources was $102,538.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
52 NOTE 4 – CAPITAL ASSETS
Capital assets activities for the year ended June 30, 2025, were as follows:

Balance Restated Balance Transfers/ Balance
June 30, 2024 Reclassifications June 30, 2024 Additions Deletions Adjustments June 30, 2025 Governmental Activities:

Capital assets not being depreciated:

Land 24,069,960 $ (55,624) $ 24,014,336 $ 199,122 $ - $ 89,393 $ 24,302,851 $ Right-of-way 1,194,641 - 1,194,641 - - - 1,194,641
Construction in progress (CIP) 9,867,153 (10,475) 9,856,678 6,070,185 - (8,523,948) 7,402,915 Total capital assets not being depreciated 35,131,754 (66,099) 35,065,655 6,269,307 - (8,434,555) 32,900,407 Capital assets being depreciated/amortized:

Infrastructure - 244,263,596 244,263,596 1,485,232 (209,810) 4,620,104 250,159,122 Structures and improvements (1,810) 79,786,812 79,785,002 21,425,720 - 3,190,348 104,401,070 Equipment 67,909 40,083,143 40,151,052 5,397,830 (255,933) 624,103 45,917,052 Right-to-use lease asset - - - 386,872 - - 386,872
Right-to-use SBITA asset - 189,987 189,987 408,664 - - 598,651 Total capital assets being depreciated 66,099 364,323,538 364,389,637 29,104,318 (465,743) 8,434,555 401,462,767 Less accumulated depreciation/amortization for:

Infrastructure (145,638,148) - (145,638,148) (5,484,679) 209,795 - (150,913,032) Structures and improvements (32,584,926) - (32,584,926) (1,919,097) - - (34,504,023) Equipment (26,369,615) - (26,369,615) (2,434,346) 242,800 - (28,561,161) Right-to-use lease asset - - - (58,031) - - (58,031)
Right-to-use SBITA asset - (144,708) (144,708) (160,466) - - (305,174) Total accumulated depreciation/amortization - (204,737,397) (204,737,397) (10,056,619) 452,595 - (214,341,421) Total capital assets being depreciated/amortized, net 66,099 159,586,141 159,652,240 19,047,699 (13,148) 8,434,555 187,121,346 Governmental activities capital assets, net $ - 194,717,895 $ 194,717,895 $ 25,317,006 $ (13,148) $ - $ 220,021,753 $ Balance Transfers/ Balance
July 1, 2024 Additions Deletions Adjustments June 30, 2025 Business-Type Activities
Capital assets not being depreciated:

Land 8,280,895 $ - $ - $ - $ 8,280,895 $
Construction in progress (CIP) 19,863,287 7,858,416 - (12,896,404) 14,825,299 Total capital assets not being depreciated 28,144,182 7,858,416 - (12,896,404) 23,106,194 Capital assets being depreciated:

Buildings - 7,546,689 - - 7,546,689
Improvements other than buildings 1,282,116 388,231,154 - 12,896,409 402,409,679 Equipment 635,923 42,558,561 - (7,587) 43,186,897
Right-to-use SBITA asset 59,470 27,120 - - 86,590
Total capital assets being depreciated 1,977,509 438,363,524 - 12,888,822 453,229,855 Less accumulated depreciation for:

Buildings (2,644,891) (168,036) - - (2,812,927)
Improvements other than buildings (135,849,191) (8,831,566) - - (144,680,757) Equipment (14,044,377) (1,364,553) - 6,192 (15,402,738) Right-to-use SBITA asset (23,908) (6,780) - - (30,688)
Total accumulated depreciation (10,388,063) (152,545,239) - 6,192 (162,927,110) Total capital assets being depreciated, net (8,410,554) 285,818,285 - 12,895,014 290,302,745 Business-type activities capital assets, net $ (552,138) 313,962,467 $ - $ (1,390) $ 313,408,939 $ CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
53 NOTE 4 – CAPITAL ASSETS (Continued)
Depreciation and amortization expense is charged to functions and programs based on their usage of the related assets.

Depreciation and amortization expense for the year ended June 30, 2025, was charged to the following activities:

Governmental activities:

General government $ 934,092
Public safety 273,190
Community development 5,590,744
Community services 137,387
Library and cultural 968,054
Internal service fund 2,153,152
Total governmental activities $ 10,056,619
Business-type activities:

Transit $ 755,388
Water 2,449,891
Solid waste 17,609
Sewer 7,001,770
Aviation 163,405
Total business-type activities $ 10,388,063
NOTE 5 – INTERFUND TRANSACTIONS
Interfund transactions are reported as either loans, services provided, reimbursements or transfers. Loans are reported as interfund receivables and payables, as appropriate, and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers among governmental or proprietary funds are netted as part of the reconciliation to the government-wide financial statements.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
54 NOTE 5 – INTERFUND TRANSACTIONS (Continued)
The balances below represent short-term borrowing resulting from a temporary need for additional cash. Amounts are expected to be repaid shortly after the end of the fiscal year. lnterfund transactions due from/to other funds at June 30, 2025, were as follows:

Due From Due To
Governmental Funds:

Major Funds:

General 7,378,325 $ - $
Developer Impact Fees 665 -
Nonmajor Funds:

Senior Services - 48,474
Housing Redevelopment CDBG - 112,497
Traffic Safety - 8,942
Local Law Enforcement Block Grant - 31,273
Fire Department Grants - 329,861
COPS Hiring Recovery Program 36,067
Office of Traffic and Safety Grant - 10
Auto Theft Deterrance - 9,260
Proprietary Funds:

Nonmajor Funds:

Aviation - 635,986
Internal Service Funds:

General Insurance 5,802,846 -
Purchasing 362,444 -
$ 7,378,325 7,378,325 $
lnterfund transfers consist of transfers from funds receiving resources to funds through which the resources are to be expended. lnterfund transfers for the current year are as follows:

Transfers In Transfers Out
Governmental Funds:

Major Funds:

General 7,402,969 $ 6,438,615 $
Developer Impact Fees 7,279,116 3,047,855
Nonmajor Funds:

Senior Services 529,627 -
Gas Tax - 1,959,003
Traffic Safety - 46,579
Measure R - 635,489
OTS Grant - 5,464
Technology CIP - 77,810
Financing Authority 2,928,536 -
Proprietary Funds:

Major Funds:

Water 490,730 6,377,400
Solid Waste - 6,150
Sewer 951 462,290
Nonmajor Funds:

Aviation 50,000 -
Internal Service Funds:

Unemployment Insurance - 43,306
Surface Water Management 1,425,800 1,250,000
Total transfers $ 20,228,845 20,228,845 $
Transfers noted during the year are for funding of capital projects, reimbursements of costs, and debt service related payments.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
55 NOTE 6 – LONG-TERM DEBT
The following is a summary of the long-term debt activity for the year ended June 30, 2025:
(Restated) Amounts Due
Balance Balance Within
July 1, 2024 Additions Deletions June 30, 2025 One Year Governmental activities:

Notes from direct borrowings and direct placements
Lease revenue bonds payable $ - 19,730,000 $ (1,350,000) $ 18,380,000 $ 1,415,000 $ Bond premium 1,511,542 - (109,930) 1,401,612 109,930
Total notes from direct borrowings and direct placements - 21,241,542 (1,459,930) 19,781,612 1,524,930 Finance leases - 11,595,271 (10,637) 49,683 11,584,634
Compensated absences payable 6,039,948 - (82,031) 5,957,917 2,448,654 Leases 386,872 - (89,717) 297,155 65,945
Subscription based information technology arrangements (SBITAs) 23,228 408,664 (158,596) 273,296 137,378 Insurance claim payable 1,444,875 2,679,341 - 4,124,216 4,124,216 Net pension liability 69,305,282 3,167,335 (6,618,108) 65,854,509 - Net OPEB liability 1,456,602 85,381 (138,855) 1,403,128 - Total governmental activities $ 6,727,593 111,106,748 $ (8,557,874) $ 109,276,467 $ 8,350,806 $ Business-type activities:

Notes from direct borrowings and direct placements
Revenue bonds payable $ - 169,840,001 $ (5,310,000) $ 164,530,001 $ 5,460,000 $ Bond premium 13,463,284 - (635,622) 12,827,662 635,622
Total notes from direct borrowings and direct placements - 183,303,285 (5,945,622) 177,357,663 6,095,622 Compensated absences payable 1,350,402 10,561 - 1,360,963 559,344 Subscription based information technology arrangements (SBITAs) - 59,470 (9,088) 50,382 23,821 Net pension liability 16,405,188 566,380 (2,098,396) 14,873,172 - Net OPEB liability 393,004 (36,600) 13,434 - 369,838
Total business-type activities $ 649,845 201,451,879 $ (8,089,706) $ 194,012,018 $ 6,678,787 $ Type of Debt
Amounts Due
Balance Balance Within
July 1, 2024 Additions Deletions June 30, 2025 One Year Primary government:

Revenue bonds payable $ - 189,570,001 $ (6,660,000) $ 182,910,001 $ 6,875,000 $ Bond premium - 14,974,826 (745,552) 14,229,274 745,552
Finance leases - 11,595,271 (10,637) 11,584,634 49,683
Compensated absences payable 7,390,350 10,561 (82,031) 7,318,880 3,007,998 Leases 386,872 - (89,717) 297,155 65,945
Subscription based information technology arrangements (SBITAs) 23,228 468,134 (167,684) 323,678 161,199 Insurance claim payable 1,444,875 2,679,341 - 4,124,216 4,124,216 Net pension liability 85,710,470 3,733,715 (8,716,504) 80,727,681 - Net OPEB liability 1,849,606 98,815 (175,455) 1,772,966 - Total primary government activities $ 7,377,438 312,558,627 $ (16,647,580) $ 303,288,485 $ 15,029,593 $ Type of Debt
The liability for pension related debt, OPEB debt, and compensated absences for governmental activities is primarily liquidated by the General Fund with smaller portions charged to other funds in an amount proportional to the personnel costs incurred. The pension-related debt and compensated absences for business-type activities will be paid by the respective proprietary funds.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
56 NOTE 6 – LONG-TERM DEBT (Continued)
A. Governmental Activities
Lease Revenue Bonds (the Authority)
On March 27, 2018, the City issued $26,675,000 in Lease Revenue Bonds to refund the City's 2008 Lease Revenue Bond with an outstanding balance of $26,670,000. The reacquisition price exceeded the net carry amount of the old debt by $5,000. The transaction resulted in an economic gain of $4,478,415. Due to the advance refunding of the 2008 Lease Revenue Bond, a deferred outflow of resources (refunding of debt) of $175,898 was calculated and will be amortized over the life of the debt. The bonds are payable in amounts ranging from $1,040,000 to $1,700,000 per year on April 1 each year, commencing April 1, 2019, through April 1, 2038, and bear interest at rates ranging from 3.00% to 5.00% depending upon the date of maturity. At June 30, 2025, the outstanding balance, including the related unamortized bond premium and discount, was $19,781,612. There is a provision in the bonds whereby in an event of default the lender may declare the principal of the bonds outstanding and the interest accrued to be immediately due and payable.

Finance Lease Payable
On June 29, 2023, the City entered into a financing lease with Banc of America Public Capital Corp, a Kansas corporation, for an amount not to exceed $12,982,126 (to lease and acquire from Lessor certain equipment). The proceeds from this obligation will help finance the cost, acquisition, and installation of various equipment for the City. The payments range from $1,886,667 to $457,055 per year, commencing on June 29, 2024 through June 29, 2043. The financing lease has a contract rate of 3.850% per annum. The finance lease is secured by the equipment being financed. There is a provision within the lease agreement whereby in the event of default, the lender may declare all rental payments immediately due and payable, may retake possession of the equipment, and may terminate the Escrow Agreement and apply proceeds from the escrow account to the rental payments. As of June 30, 2025, the City’s outstanding balance was $11,584,634.

B. Business-Type Activities
2015 Sewer Revenue Refunding Bonds
In November 2015, the City issued $84,555,000 in Sewer Revenue Refunding Bonds to refund the City's 2006 Sewer Revenue Bonds with an outstanding principal of $76,800,000. The reacquisition price exceeded the net carry amount of the old debt by $7,755,000. This amount is being netted against the new debt and amortized over the new debt's life. The transaction resulted in an economic gain of $7,433,828. Principal and interest payments are due semi-annually commencing on November 15, 2015, through November 15, 2045, and bear interest at a rate of 5%. In October 2020, the City paid off a portion of the remaining balance by using the Sewer Revenue Refunding Bonds, Series 2020A and 2020B. At June 30, 2025, the outstanding balance, including the related unamortized bond premium, was $55,402,197. There is a provision in the refunding bonds whereby in the event of default, the unpaid principal and accrued interest become immediately due, and the lender may pursue legal action to enforce repayment.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
57 NOTE 6 – LONG-TERM DEBT (Continued)
B. Business-Type Activities (Continued)
2016 Sewer Revenue Refunding Bonds
On July 20, 2016, the City issued $58,265,000 in Sewer Revenue Refunding Bonds to refund the City's 2010 Sewer Revenue Bonds with an outstanding principal of $8,375,000, and the City's 2009 Sewer Revenue Bonds with an outstanding principal of $54,775,000. Due to the advance refunding of the 2010 Sewer Revenue Bonds, a deferred outflow of resources (refunding of debt) of $387,453 was calculated and will be amortized over the life of the debt. The transaction resulted in a reduction of $1,951,172 in future debt service payments. The economic gain was $906,004.

Principal and interest payments are due semi-annually commencing November 15, 2019, through November 15, 2044, and bear interest at rates from 3% to 5%. At June 30, 2025, the outstanding balance, including unamortized bond premium, was $58,192,954. There is a provision in the refunding bonds agreement, where in the event of default, the trustee may accelerate repayment, making the full bond principal and interest due immediately. Additionally, the trustee may also initiate legal proceedings and apply pledged revenues to satisfy debt obligations and related costs. 2017 Water Revenue Refunding Bonds
In 2018, the City issued $18,155,000 in Water Revenue Refunding Bonds. The bond principal is payable in amounts ranging from $330,000 to $1,080,000 per year on December 1 each year, commencing December 1, 2018, through December 1, 2047, and bears interest at rates from 2.00% to 5.00%. The bond interest is payable twice a year, on June 1 and December 1 each year. At June 30, 2025, the outstanding balance, including the related unamortized bond premium, was $17,298,029. There is a provision within the agreement whereby in the event of default, the principal and interest may be declared immediately due and payable.
2020 Water Revenue Refunding Bonds
In 2020, the City issued $15,735,000 in Water Revenue Refunding Bonds. The bond principal is payable in amounts ranging from $260,000 to $1,050,000 per year on December 1 each year, commencing December 1, 2020, through December 1, 2049, and bears interest at rates from 4.00% to 5.00%. The bond interest is payable twice a year, on June 1 and December 1 each year. At June 30, 2025, the outstanding balance, including the related unamortized bond premium, was $13,846,395. There is a provision within the agreement, whereby in the event of default, the full principal and interest may be declared immediately due and payable, in addition the trustee may also pursue legal actions, including applying pledged revenues to satisfy the obligation.
2020A and 2020B Sewer Revenue Refunding Bonds
In 2021, the City issued $20,170,000 and $17,210,000 in Series A and Series B Revenue Refunding Bonds, respectively, to refund the City's 2012 Sewer Revenue Refunding Bond with an outstanding principal of $5,364,005, 2013 Sewer Revenue Refunding Bonds with an outstanding principal of $20,060,000, and $20,000,000 of the 2015 Sewer Revenue Refunding Bonds. Due to the advance refunding of each Sewer Revenue Bonds, a deferred outflow of resources (refunding debt) of $332,418 was calculated and will be amortized over the life of the debt. The transaction resulted in a reduction of $10,279,742 in future debt service payments. The economic gain was $6,927,470.

The 2020A bond principal is payable in amounts ranging from $305,000 to $2,955,000 per year on November 15 each year, commencing November 15, 2021, through November 15, 2041, and bears interest at rates from 4% to 5%. The bond interest is payable twice a year, on May 15 and November 15 each year. At June 30, 2025, the outstanding balance, including the related unamortized premium, was $19,583,088. There is a provision within the agreement, whereby in the event of default, the full principal and interest may be declared immediately due and payable, in addition the trustee may also pursue legal actions, including applying pledged revenues to satisfy the obligation.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
58 NOTE 6 – LONG-TERM DEBT (Continued)
2020A and 2020B Sewer Revenue Refunding Bonds (Continued) The 2020B bond principal is payable in amounts ranging from $805,000 to $2,020,000 per year on November 15 each year, commencing November 15, 2021, through November 15, 2033, and bears interest at rates from 0.809% to 2.794%.

The bond interest is payable twice a year, on May 15 and November 15 each year. At June 30, 2025, the outstanding balance, including the related unamortized premium, was $13,035,000. There is a provision within the agreement, whereby in the event of default, the full principal and interest may be declared immediately due and payable, in addition the trustee may also pursue legal actions, including applying pledged revenues to satisfy the obligation.

The annual requirements to amortize bonded debt and notes payable, including interest, are as follows:

Governmental
Activities
2018 Lease 2015 Sewer 2016 Sewer 2017 Water
Year Ending Revenue Revenue Revenue Revenue
June 30 Bonds Refunding Bonds Refunding Bonds Refunding Bonds 2026 $ 4,951,750 2,223,250 $ 2,772,800 $ 1,106,600 $
2027 4,843,875 2,222,500 2,771,950 1,104,700
2028 4,827,875 1,768,250 2,748,175 1,107,100
2029 4,860,000 1,768,000 2,695,800 1,106,350
2030 4,835,125 1,770,000 2,697,800 1,102,350
2031-2035 23,862,625 8,852,950 15,386,700 5,524,800
2036-2040 12,722,000 5,309,801 20,479,000 5,519,375
2041-2045 5,448,000 - 37,311,650 5,521,125
2046-2050 10,967,500 - - 3,316,250
77,318,750 23,914,751 86,863,875 25,408,650
Less interest 5,534,750 26,058,750 32,308,875 9,758,650 Plus unamortized premium 1,401,611 4,142,198 3,637,954 1,648,029 Total 19,781,612 $ 55,402,198 $ 58,192,954 $ 17,298,029 $ Business-Type Activities
Primary Government
2020 Water 2020A Sewer 2020B Sewer
Year Ending Revenue Revenue Revenue
June 30, Refunding Bonds Refunding Bonds Refunding Bonds 2026 $ 1,433,150 771,775 $ 1,122,762 $
2027 972,025 772,150 1,124,025
2028 659,400 771,775 2,093,570
2029 659,400 770,650 2,090,707
2030 659,400 773,650 2,093,664
2031-2035 3,297,000 3,860,600 5,943,367
2036-2040 13,098,900 3,866,000 -
2041-2045 6,085,200 3,865,750 -
2046-2050 3,861,200 - -
26,864,475 19,313,550 14,468,095
Less interest 6,813,550 9,334,475 1,433,095
Plus unamortized premium 1,346,394 2,053,088 -
Total 13,846,394 $ 19,583,088 $ 13,035,000 $
Business-Type Activities
Primary Government
CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
59 NOTE 6 – LONG-TERM DEBT (Continued)
Compensated Absences:

The City accounts for compensated absences (unpaid vacation, sick leave, and compensatory time) in accordance with the City's policy and GASB 101, Compensated Absences. At June 30, 2025, the compensated absences payable totaled $5,957,917 and $1,360,963 for governmental activities and business-type activities, respectively.

NOTE 7 – PENSION PLANS
The City participates in the Miscellaneous Plan, an agent multiple employer defined benefit pension plan of the City of Tulare, and the Safety Fire Plan and Safety Police Plan, cost-sharing multiple employer defined benefit pension plans of the City of Tulare, which are included in the Public Agency portion of CalPERS.

A. Miscellaneous Plan
General Information
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City's Miscellaneous Plan, an agent multiple-employer defined benefit pension plan administered by the California Public Employees' Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit.

The cost-of-living adjustments for Miscellaneous Plan are applied as specified by the Public Employees' Retirement Law.

The Public Employees' Pension Reform Act of 2013 (PEPRA) requires new benefits and member contributions for new members as defined by PEPRA, that are hired after January 1, 2013. Pursuant to PEPRA, the Miscellaneous 2nd Tier Plan is closed to new entrants as of January 1, 2013.

The rate plan provisions and benefits in effect at June 30, 2025, are summarized as follows:

Miscellaneous Miscellaneous Miscellaneous
1st Tier 2nd Tier PEPRA
Prior to January 1, 2011 thru On or after
Hire Date January 1, 2011 December 31, 2013 January 1, 2013 Benefit formula 2.7% @ 55 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 63 52 - 67
Monthly benefits, as a % of annual salary 2.0% to 2.7% 2.0% to 2.5% 1.0% to 2.5% Required employee contribution rates 8.000% 8.000% 8.250% Required employer contribution rates 11.350% 11.350% 11.350% CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
60 NOTE 7 – PENSION PLANS (Continued)
A. Miscellaneous Plan (Continued)
General Information (Continued)
Benefits Provided (Continued)
Beginning in fiscal year 2016, CalPERS 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 and side fund, if applicable. The dollar amounts are billed on a monthly basis. The City's required contribution for the unfunded liability was $4,352,422 for the year ended June 30, 2025.

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

Inactive employees or beneficiaries currently receiving benefits 345 Inactive employees entitled to but not yet receiving benefits 199 Active employees 246
Total 790
Contributions
Section 20814(c) of the California Public Employees' Retirement Law requires that the employer rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS' annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

The City's contributions to the Plan recognized as a part of pension expense for the year ended June 30, 2025, were $5,833,174.

Net Pension Liability
As of June 30, 2025, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $41,296,897
The City's net pension liability for its Plan is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
61 NOTE 7 – PENSION PLANS (Continued)
A. Miscellaneous Plan (Continued)
Net Pension Liability (Continued)
Actuarial Assumptions
The total pension liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions:

Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Payroll Growth
Projected Salary Increase
Investment Rate of Return
Mortality
(1) Net of pension plan investment expenses, including inflation (2) The mortality table was developed based on CalPERS specific data.

The table includes 15 years of mortality improvements using Society of Actuaries Scale BB.

Derived using CalPERS' Membership
Data for all Funds(2)
Entry- Age Normal Cost Method
Varies by Entry Age and Service

6.90% (1)
June 30, 2023
June 30, 2024

6.90%

2.30%

2.75%
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2023 valuation were based on the results of a November 2021 actuarial experience study for the period 2016 to 2021. Further details of the Experience Study can be found on the Cal PERS website.

Changes of Assumptions
The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
62 NOTE 7 – PENSION PLANS (Continued)
A. Miscellaneous Plan (Continued)
Net Pension Liability (Continued)
Actuarial Assumptions (Continued)
Discount Rate
The long-term expected rate of return on pension plan investments was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all the funds' asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted for assumed administrative expenses of 10 Basis points.

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

Asset Class (a)
Assumed Asset Allocation Real Return Years 1-10(b)
Global equity - cap-weighted 30.0% 4.45%
Global equity non-cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100%
(a) An expected inflation of 2.30% used for this period (b) Figures are based on the 2021-22 Asset Liability Management Study CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
63 NOTE 7 – PENSION PLANS (Continued)
A. Miscellaneous Plan (Continued)
Changes in Net Pension Liability
The changes in the net pension liability for the Plan follow:

Increase
(Decrease) in Net Pension
Total Pension Plan Fiduciary Liability (Asset)
Liability (1) Net Position (2) (3)=(1)-(2)
Balance at June 30, 2023 $157,398,742 $111,767,379 45,631,363 $ Changes recognized for the measurement period:

Service cost - 2,953,708 2,953,708
Interest on total pension liability - 10,643,903 10,643,903 Changes in benefit terms - - -
Changes of assumptions - - -
Differences between expected and actual experience - (365,508) (365,508) Plan to plan resource movement - - -
Contributions - employer 5,088,377 - (5,088,377)
Contributions - employees 1,869,523 - (1,869,523)
Net investment income 10,699,614 - (10,699,614)
Benefit payment, including refunds of employee contributions (8,501,258) (8,501,258) - Administrative expenses (90,945) - 90,945
Net Changes $4,730,845 $9,065,311 (4,334,466)
Balance at June 30, 2024 $162,129,587 $120,832,690 41,296,897 $ Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for the Miscellaneous Plan, calculated using the discount rate for the Miscellaneous Plan, as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Discount Rate -1% Current Discount Rate Discount Rate +1%

5.90% 6.90% 7.90%
$ 41,296,897 61,713,349 $ 24,380,471 $
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
64 NOTE 7 – PENSION PLANS (Continued)
A. Miscellaneous Plan (Continued)
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2025, the City recognized pension expense of $6,110,539. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to the measurement date $ - 5,833,174 $ Changes of assumptions - -
Differences between actual and expected experience 234,969 1,005,121 Net differences between projected and actual earnings on plan investments - 1,681,557 Total $ 234,969 8,519,852 $
$5,833,174 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended June 30
2026 768,806 $
2027 2,766,777
2028 (471,867)
2029 (612,007)
2030 -
Thereafter -
Total 2,451,709 $
Payable to the Pension Plan
The City did not have any outstanding contributions payable to the pension plan for the year ended June 30, 2025.

B. Safety Police and Safety Fire Plans
General Information
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing MultipleEmployer Plan (the Plan) administered by the California Public Employees' Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other).

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. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors six safety rate plans (three police and three fire). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions, and membership information that can be found on the Cal PERS website.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
65 NOTE 7 – PENSION PLANS (Continued)
B. Safety Police and Safety Fire Plans (Continued)
General Information (Continued)
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for nonduty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit.

The cost-of-living adjustments for the Plan are applied as specified by the Public Employees' Retirement Law.

The Plan's provisions and benefits in effect at June 30, 2025, are summarized as follows:

Safety - Police Safety - Police Safety - Police
1st Tier 2nd Tier PEPRA
Prior to January 1, 2011 thru On or after
Hire date January 1, 2011 December 31, 2012 January 1, 2013 Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 55 50 - 57
Monthly benefits, as a % of annual salary 3.00% 2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 9.000% 9.000% 13.750% Required employer contribution rates 27.320% 23.000% 13.760% Safety - Fire Safety - Fire Safety - Fire
1st Tier 2nd Tier PEPRA
Prior to January 1, 2011 thru On or after
Hire Date January 1, 2011 December 31, 2012 January 1, 2013 Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 55 50 - 57
Monthly benefits, as a % of annual salary 3.00% 2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 9.000% 9.000% 13.750% Required employer contribution rates 27.320% 24.330% 13.760% Beginning in fiscal year 2016, CalPERS 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 and side fund, if applicable. The dollar amounts are billed on a monthly basis. The City's required contribution for the unfunded liability was $2,915,203 for the year ended June 30, 2025.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
66 NOTE 7 – PENSION PLANS (Continued)
B. Safety Police and Safety Fire Plans (Continued)
General Information (Continued)
Contributions
Section 20814(c) of the California Public Employees' Retirement Law mandates that the employer rates for all public employers must be determined annually by the actuary and will be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS' annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

The City's contributions to the Plan recognized as a part of pension expense for the year ended June 30, 2025, were $4,547,187.

Pension Liabilities, Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2025, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $38,155,575.

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 the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City's proportionate share of the net pension liability for the Plan as of June 30, 2023 and 2024, was as follows:

Proportion - June 30, 2023 0.5180%
Proportion - June 30, 2024 0.5233%
Change - Increase (Decrease) 0.0053%
For the year ended June 30, 2025, the City recognized pension expense of $8,267,746. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to the measurement date $ - 5,236,733 $ Changes in assumptions 940,075 -
Differences between actual and expected experience 101,244 3,113,834 Net differences between projected and actual earnings on plan investments - 1,844,267 Changes in City's proportion - 845,438
Differences between the employer's actual contributions and the employer's proportionate share of contributions 329,385 509,268
Total $ 610,512 12,309,732 $
CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
67 NOTE 7 – PENSION PLANS (Continued)
B. Safety Police and Safety Fire Plans (Continued)
Pension Liabilities, Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) $5,236,733 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended June 30
2026 $ 2,596,473
2027 4,455,310
2028 41,727
2029 (631,023)
2030 -
Thereafter -
Total 6,462,487 $
Actuarial Assumptions
The total pension liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions:

Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016.

2.80%
Varies by Entry Age and Service

6.90%(1)
Derived using CalPERS'
Membership Data for all Funds(2)
June 30, 2023
June 30, 2024
Entry- Age Normal Cost Method

6.90%

2.30%
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2023 valuation were based on the results of a November 2021 actuarial experience study for the period 2016 to 2021. Further details of the Experience Study can be found on the Cal PERS website.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
68 NOTE 7 – PENSION PLANS (Continued)
B. Safety Police and Safety Fire Plans (Continued)
Pension Liabilities, Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Actuarial Assumptions
Changes of Assumptions - There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.

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, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

The long-term expected rate of return on pension plan investments 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.

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

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
69 NOTE 7 – PENSION PLANS (Continued)
B. Safety Police and Safety Fire Plans (Continued)
Pension Liabilities, Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Discount Rate (Continued)
The expected real rates of return by asset class are as follows:

Asset Class (a) Assumed Asset Allocation Real Return Years 1-10(b) Global equity - cap-weighted 30.0% 4.54%
Global equity non-cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100%
(a) An expected inflation of 2.30% used for this period (b) Figures are based on the 2021-22 Asset Liability Management Study 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 the 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:

Discount Rate -1% Current Discount Rate Discount Rate +1%

5.90% 6.90% 7.90%
$ 38,155,575 58,904,638 $ 21,185,760 $
Pension Plan Fiduciary Net Position
Detailed information about the Plan's fiduciary net position is available in the separately issued CalPERS financial reports.

Payable to the Pension Plan
The City did not have any outstanding contributions payable to the pension plan for the year ended June 30, 2025.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
70 NOTE 8 – SINGLE EMPLOYER DEFINED BENEFIT PENSION PLAN A. Overview of the Plan
Specific management employees were eligible to participate in the City’s Retirement Enhancement Plan (the Plan); however, entrance into the Plan is now closed. The Plan is administered through the Public Agency Retirement Services (PARS) and provides additional retirement benefits to eligible employees beyond those provided by the cost-sharing multiple-employer defined benefit pension plan. Eligibility requirements were based upon years of employment, date of hire, and date of birth, which meet the requirements of a pension trust under California Government Code. Additional information concerning this single-employer defined benefit pension plan can be obtained from the City’s Finance Director.

B. Benefits Provided
PARS provides service retirement benefits equal to the “2.7% at 55” plan factor, offset by the CalPERS “2.0% at 50” plan factor, for all years of City management service through July 1, 2012. Benefits under the Plan were frozen as of July 1, 2012. Benefits in payment status increase by 2% annually on the anniversary of the participant’s retirement date. The Plan does not provide a withdrawal, death, or disability benefit. Actuarial assumptions are based on CalPERS rates for Miscellaneous Public Agency “2.7% at 55” pension plans, assuming 20 years of service, with an increased retirement rate of 20% at age 55.

C. Contribution Description
The City makes contributions required as the employer. Employee members are not required to make contributions. The contribution requirements of the plan are established and may be amended by PARS. California Public Employees’ Retirement Law Section 20814(c) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by PARS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the plan are made in accordance with the contribution requirements determined by the actuarial valuation of the plan.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
71 NOTE 8 – SINGLE EMPLOYER DEFINED BENEFIT PENSION PLAN (Continued) D. Actuarial Methods and Assumptions Used to Determine Total Pension Liability The following actuarial methods and assumptions were used in the funding valuation:

Valuation Date June 30, 2024
Measurement Date June 30, 2025
Measurement Period July 1, 2024 - June 30, 2025
Reporting Date June 30, 2025
Actuarial Assumptions:

Valuation Timing Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which the contributions are reported Actuarial Cost Method Entry-Age Normal
Amortization Method
Level percent or level dollar Level Dollar
Closed, open, or layered periods Closed
Amortization period at 06/30/2024 19 years
Amortization growth rate 0.00%
Asset Valuation Method
Smoothing period None
Recognition method None
Corridor None
Inflation 2.30%
Investment Rate of Return 6.50%
Salary Increases Consistent with rates used to value Miscellaneous Public Agency CalPERS Pension Plans (Entry Age 30)
Payroll Growth 2.80%
Cost of Living Adjustments 2.00%
Retirement Rates are based on CalPERS rate for 20 years of service retirement for Miscellaneous Public Agency "2.7% at age 55" Pension Plans, with an increased retirement rate of 20% at age 55 Turnover Consistent with the Non-Industrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021 Mortality Consistent with the Non-Industrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021 Disability Consistent with the Non-Industrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021 Maximum Benefits & Salary Salary limits under IRS Section 401(a)(17) apply. Limit is assumed to increase 2.30% per year Form of Payment Single Life Annuity
Discount Rate 6.50%
General Inflation 2.30%
Mortality Consistent with Non-Industrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021 E. Funded Status
Total Pension Liability 1, $ 925,298
Plan Fiduciary Net Position 650,089
Net Pension Liability $ 1,275,209
Pension plan expense for the year $ (22,987)
F. Covered Employees
Active 3
Terminated vested & other inactive -
Retirees and beneficiaries 14
Total 17
CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
72 NOTE 8 – SINGLE EMPLOYER DEFINED BENEFIT PENSION PLAN (Continued) G. Discount Rate
The discount rate used to measure the total pension liability was 6.50%, which is the long-term expected rate of return on pension plan investments. The best-estimated range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are per the actuary’s investment consulting practice as of June 30, 2025.

GASB 68 allows the use of a discount rate that is up to the expected long-term rate of return on the assets in the Trust set aside to pay benefits, if the plan sponsor makes regular contributions to the Trust such that the assets are not depleted at any point in the future. If the Plans' actuary determines that contributions are not sufficient to keep the Trust funded, a blend of the long-term rate of return and the yield or index rate for 20-year, tax-exempt municipal bonds will be used for the periods when the Trust funds are not sufficient to cover benefit payments. Based on this requirement, and with the approval of the plan sponsor, the discount rate used to measure the total pension liability is 6.50%.

Expected Expected
Target Arithmetic Geometric
Allocation Index Rate of Return Rate of Return
US Cash 2.00% BAML 3-Month T-Bills 0.83% 0.80%
US Core Fixed Income (Aggregate) 44.50% Bloomberg Barclays Aggregate 2.91% 2.65% US High Yield Bonds 3.50% ICE BofA US High Yield 4.03% 3.48% US Large & Mid Cap Equity 28.50% Russell 1000 5.39% 3.78% US Small Cap Equity 1.50% Russell 2000 6.80% 4.22%
Foreign Developed Equity 11.25% MSCI EAFE NR USD 6.61% 4.79% Emerging Markets Equity 3.25% MSCI EM NR USD 8.78% 5.73% US REITs 1.75% FTSE Nareit All Equity REITs 6.71% 4.46% Infrastructure - Public 2.50% S&P Global Infrastructure TR USD 5.68% 4.18% Assumed Inflation - Mean 2.28% 2.28%
Assumed Inflation - Standard Deviation 1.47% 1.47%
Portfolio Real Mean Return 4.47% 3.86%
Portfolio Nominal Mean Return 6.75% 6.25%
Portfolio Standard Deviation 10.55%
Long-Term Expected Rate of Return 6.50%
Asset Class
H. Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City’s Retirement Enhancement Plan, calculated using the discount rate as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate:

Discount Rate -1% Current Rate Discount Rate +1%

5.50% 6.50% 7.50%
Net Pension Liability 1, $ 1,275,209 472,195 $ 1,107,922 $ CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
73 NOTE 8 – SINGLE EMPLOYER DEFINED BENEFIT PENSION PLAN (Continued) I. Deferred Outflows/Inflows of Resources Related to Pensions The city reported deferred outflows of resources and deferred inflows of resources related to this pension plan from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Difference between expected and actual experience - $ - $ Changes of assumptions - -
Net difference between projected and actual earnings - (7,076) Contributions made subsequent to measurement date - -
Total $ (7,076) - $
Recognition of deferred outflows and inflows of resources in future pension expense is as follows:

Year Ending
June 30
2026 12,652 $
2027 (8,431)
2028 (8,033)
2029 (3,264)
2030 -
Thereafter* -
Total (7,076) $
*Note that additional future deferred inflows and outflows of resources may impact these numbers J. Pension Plan Fiduciary Net Position
Detailed information about the Plan’s fiduciary net position is available in the separately issued PARS financial reports.

K. Payable to the Pension Plan
The city did not have any outstanding contributions payable to the pension plan as of June 30, 2025.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
74 NOTE 9 – RISK MANAGEMENT
The City is a member of the Central San Joaquin Valley Risk Management Authority (CSJVRMA). CSJVRMA is a consortium of fifty-four (54) cities in the San Joaquin Valley, California, established under the provisions of California Government Code Section 6500, et seq. CSJVRMA provides risk coverage for its members through the pooling of risks and purchased insurance. This coverage extends to workers' compensation and general liability. CSJVRMA is governed by a board consisting of one board member appointed by each member agency and meets three to four times a year. The board has contracted with a management group to supervise and conduct CSJVRMA affairs.

In the event of termination and after all claims have been settled, any excess or deficit will be divided among the agencies in accordance with an approved formula.

A. General Liability Insurance
Annual deposits are paid by member cities and are adjusted retrospectively to cover costs. Each member city self-insures through the CSJVRMA for the first $100,000 of each loss. However, this self-insurance retention is funded through annual contributions; therefore, the City effectively has no exposure except for specific limits as described herein. Participating cities then share in the next $100,000 to $1,000,000 per loss occurrence. Specific coverage includes comprehensive and general automotive liability, personal injury, errors and omissions, and certain other coverage.

Separate deposits are collected from the member cities to cover claims between $1,000,000 and $15,000,000. These deposits are also subject to retrospective adjustment.

B. Workers’ Compensation
The workers' compensation program includes pooling of retained losses plus excess insurance. Annual deposits are paid by member cities and are adjusted retrospectively on an annual basis to cover costs and reflect claims experience of both the individual member and the pool. The annual retrospective computation of the deposit is based on the member's own losses up to its retention level plus a pro-rata share of general/administrative expenses and losses between $100,000 and $500,000. The City has a retention level of $100,000, and all claims up to that level are paid by the City. However, this selfinsured retention is funded through annual contributions; therefore, the City effectively has no exposure except for specific limits described herein. Benefits from $100,000 to $500,000 are covered by the pool. Excess insurance covers claims from $500,000 up to the statutory benefits schedule under California Workers’ Compensation Law.

There have been no significant changes in insurance coverage as compared to last year, and settlements have not exceeded coverage in each of the past three fiscal years. The insurance claims payable at June 30, 2025, was $1,444,875.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
75 NOTE 10 – OTHER POST EMPLOYMENT BENEFITS
A. Plan Description
Plan Administration
The City provides a single-employer OPEB Plan to cover eligible retirees’ health care insurance and life insurance costs in accordance with a resolution approved by the City Council.

Benefits Provided
The benefits are provided in the form of:
• An explicit subsidy where the City contributes towards health contributions of those active employees and retirees hired before June 23, 1984.
• An explicit subsidy for OPEB life insurance benefits.

For employees hired before June 24, 1984, the City operates under an agreement to continue to provide health care insurance benefits to all employees who retire after the age of 50 and who have 10 years of service to the City. The retirees are required to pay the employee insurance contribution being charged at the time of their retirement and the City pays the excess of the cost over the amount of the contribution.

The employees' contribution rate is frozen for them; they will never have to pay a larger amount regardless of changes in the City's cost to provide the insurance. At June 30, 2023, members affected by this provision are as follows:

Active employees -
Retired employees 21
Total 21
In June 1984, in the City's annual memorandum of understanding with employee bargaining units, this agreement was amended for those hired after June 23, 1984: Employees hired after June 23, 1984, must be 55 years old and work 10 years to qualify for the benefits. In addition, for those employees who are hired after June 23, 1984, any increases in contributions after retirement must be borne by the retirees (their rates are not frozen); the City still pays the excess of the cost over the amount of the employees cost of the contribution. The City's obligation under the agreements continues until the death of the employee unless the employee chooses to discontinue the insurance.

Effective August 1, 2006, management employees with more than 20 years of service with the City and attaining age 50 are eligible to continue with the City's health insurance at the same rate as if they were 55.

Plan Membership
At June 30, 2023, Plan membership consisted of the following:

Inactive plan members or beneficiaries currently
receiving benefits payments 32
Active plan members 331
Total 363
CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
76 NOTE 10 – OTHER POST EMPLOYMENT BENEFITS (Continued) B. Plan Description
Contributions
The contribution requirements of OPEB Plan members and the City are established and amended by the City Council. The required contribution is based on projected pay-as-you-go financing requirements. No assets are accumulated in a trust that meets the criteria in Paragraph 4 of GASB Statement No. 75.

C. Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2024, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2023. Standard actuarial update procedures were used to project/discount from valuation to measurement dates.

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

Discount rate 3.97%
Inflation rate 2.50%
Salary increases 3.50%
Healthcare cost trend rate 5.50% for 2024; 5.25% for 2025-2029, 5.00% for 2030-2039,

4.75% for 2040-2049, 4.50% for 2050-2069, and 4.00% for 2070 and later years; Medicare ages: 4.50% for 2024-2029 and 4.00% for 2030 and later years.

Pre-retirement/post-retirement
Mortality Pre-retirement Mortality Rates from CalPERS Experience Study (2000-2019); Post-retirement Mortality Rates for
Healthy Recipients from CalPERS Experience Study (2000- 2019)
CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
77 NOTE 10 – OTHER POST EMPLOYMENT BENEFITS (Continued) C. Net OPEB Liability (Continued)
Actuarial assumptions used in the June 30, 2024 valuation were based on a review of plan experience during the period July 1, 2022 to June 30, 2024.

Discount Rate
GASB Statement No. 75 requires a discount rate that reflects the following:
a) The long-term expected rate of return on OPEB Plan investments - to the extent that the OPEB Plan's fiduciary net position (if any) is projected to be enough to make projected benefit payments and assets are expected to be invested using a strategy to achieve that return.
b) A yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher - to the extent that the conditions in (a) are not met.

To determine a resulting single (blended) rate, the amount of the OPEB Plan's projected fiduciary net position (if any) and the amount of projected benefit payments is compared in each period of projected benefit payments. The discount rate used to measure the City's total OPEB liability is based on these requirements and the following information:

Fidelity GO AA
Reporting Measurement 20-Year High Discount
Date Date Municipal Index Rate
June 30, 2024 June 30, 2023 3.86% 3.86%
June 30, 2025 June 30, 2024 3.97% 3.97%
Changes in the Net OPEB liability
The changes in the net OPEB liability for the OPEB Plan are as follows:

Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability(Asset)
Balance at June 30, 2023 1,849,608 $ - $ 1,849,608 $
Changes in the year:

Service cost 29,276 - 29,276
Interest 69,538 - 69,538
Contributions - employer - 156,245 (156,245)
Difference between expected
and actual experience - -
Change of assumptions (19,210) - (19,210)
Benefit payments (156,245) (156,245) -
Net Changes (76,641) - (76,641)
Balance at June 30, 2024 1,772,967 $ - $ 1,772,967 $
Increase (Decrease)
CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
78 NOTE 10 – OTHER POST EMPLOYMENT BENEFITS (Continued) C. Net OPEB Liability (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower (2.97 percent) or 1-percentage-point higher (4.97 percent) than the current discount rate:
1% Decrease Discount Rate 1% Increase

2.97% 3.97% 4.97%
Net OPEB Liability 1, $ 1,772,967 960,005 $ 1,611,967 $ Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (5.00 percent) or 1-percentage-point higher (7.00 percent) than the current healthcare cost trend rates:
1% Decrease Healthcare cost trend rate 1% Increase

5.00% 6.00% 7.00%
Net OPEB Liability 1, $ 1,772,967 525,766 $ 2,068,086 $ OPEB Plan Fiduciary Net Position
Detailed information about the OPEB Plan's fiduciary net position is available in the separately issued CalPERS financial reports.

Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense.

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2025, the City recognized OPEB expense (credit) of $(133,232). As of the fiscal year ended June 30, 2025, the City reported deferred outflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
OPEB Contributions subsequent to measurement date 148,915 $ - $ Difference between expected and actual experience 58 881,645 Changes in assumptions or other inputs 230,553 456,170
Total 379,526 $ 1,337,815 $
The $148,915 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2024 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2026.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
79 NOTE 10 – OTHER POST EMPLOYMENT BENEFITS (Continued) C. Net OPEB Liability (Continued)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued) Amounts reported as deferred outflows and deferred inflows of resources will be recognized in OPEB expense as follows:

Year Ending June 30:
2026 (232,046) $
2027 (207,329)
2028 (180,558)
2029 (144,087)
2030 (141,911)
Thereafter (201,273)
Total (1,107,204) $
NOTE 11 – LEASES
City as Lessor
The City leases its facilities to private and corporate entities and various users for office space, municipal facilities, and land leases. The lease terms range from five to thirty-five years, including the noncancelable period of the lease and extensions the City is reasonably certain to exercise and vary with each contract. Each contract either provides for an annual increase of 3% to the lease payments on the anniversary of the agreement or an increase in the line with the CPI.

During the fiscal year, the City recognized $40,759 as lease revenue which is the reduction in deferred inflows of resources, and $29,446 as interest income. At June 30, 2025, the balance of lease receivables was $349,233, and the balance of deferred inflows of resources was $261,599.

City as Leasee
During the year ended June 30, 2025, the City entered into a lease agreement for equipment. In accordance with GASB Statement No. 87, Leases, the City recognized a lease asset and related lease liability at the present value of future lease payments.

For governmental fund financial statement purposes, the initial recognition of the lease was reported as an other financing source and capital outlay expenditure in the amount of $386,872. During the year, lease payments totaling $89,717 were reclassified from lease expense to debt service principal. As of June 30, 2025, the outstanding lease liability related to this agreement was approximately $297,155. The related right-to-use lease asset is included in the City’s capital assets and is amortized over the shorter of the lease term or the useful life of the underlying asset.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
80 NOTE 12 – COMMITMENTS AND CONTINGENCIES
General Liability
Several claims and suits have been filed against the City in the normal course of business. In the opinion of management and the City Attorney, the potential liability of the City for such claims will not have a material adverse effect on the financial statements of the City. Also, the City has certain commitments under long-term construction projects which will be funded out of future revenues.

NOTE 13 – FUND BALANCES
Fund balances are presented in the following categories: nonspendable, restricted, committed, assigned, and unassigned (see Note 1 for a description of these categories). A detailed schedule of fund balances at June 30, 2025, is as follows:

Developer Nonmajor Total
General Impact Fees Governmental Governmental
Fund Balances Fund Fund Fund Fund
Nonspendable 8,833,395 $ - $ 35,000 $ 8,868,395 $
Total nonspendable 8,833,395 - 35,000 8,868,395
Restricted:

Public safety - police - - 13,874 13,874
Public safety - fire - - 122,681 122,681
Public works - streets - - 14,877,854 14,877,854
Community development 3,306,088 3,306,088
Debt service - - 2,510,262 2,510,262
Capital projects 12,899,144 - 12,899,144
Development services - 38,059,065 - 38,059,065
Total restricted 12,899,144 38,059,065 20,830,759 71,788,968 Committed:

Capital projects - - 869,537 869,537
Total committed - - 869,537 869,537
Assigned:

Capital projects 5,799,645 - - 5,799,645
Total committed 5,799,645 - - 5,799,645
Unassigned
Economic Contingency Reserve 15,300,000 - - 15,300,000
Catastrophic reserve 900,000 - - 900,000
Personnel reserve 300,000 - - 300,000
Remaining unassigned 4,718,447 - (40,533) 4,677,914
Total unassigned 21,218,447 - (40,533) 21,177,914
Total fund balances 48,750,631 $ 38,059,065 $ 21,694,763 $ 108,504,459 $ During fiscal year ended June 30, 2025, the City Council approved the General Fund Economic Contingency Reserve. The City’s General Fund Economic Contingency Reserve policy states, “Once established or increased, the reserve’s balance shall become committed fund balance, as defined by Governmental Accounting Standards Board Statement Number 54, within the General Fund and, as such, shall require Council approval for all transfers and expenditures therefrom.” However, the reserve balance has been reported within unassigned fund balance in the accompanying financial statements.

CITY OF TULARE | JUNE 30, 2025
Notes to the Basic Financial Statements
81 NOTE 14 – DEFICIT FUND BALANCES/NET POSITION
The following funds contained a deficit fund balance as of June 30, 2025. Future revenues or transfers from other funds are expected to offset these deficits.

Governmental Funds:

Nonmajor Funds:

Local Law Enforcement Block Grant 31,273 $
Auto Theft Deterrance 9,260
Internal Service Funds:

General Insurance 6,408,934
Purchasing 84,174
Fiduciary Funds:

Private Purpose Trust Fund 16,232,391
Total $ 22,766,032
NOTE 15 – RESTATEMENT OF BEGINNING FUND BALANCES/NET POSITION During the year ended June 30, 2025, various adjustments to opening fund balances/net positions were identified and corrected. A summary of the prior period adjustments are noted below.

Proprietary Funds
Governmental
Activities
Business-type
Activities General Fund
(Formerly
nonmajor)
Developer Impact
Fees
Nonmajor
Governmental
Funds Water Solid Waste Sewer
Nonmajor
Enterprise Funds
(Governmental
Activities)
Internal Service
Funds:
$ 232,597,851 252,978,310 $ 58,413,160 $ - $ 43,874,744 $ 84,361,553 $ 8,819,516 $ 129,642,427 $ 9,586,232 $ 38,713,356 $ Error correction:

Understatement of accounts receivable - 3,349,421 - - - 3,349,421 - - - - Total error correction 3,349,421 - - - - 3,349,421 - - - - Change in accounting principle:

Record the adjustments of compensated absences
for implementation of GASB101. (2,572,484) (272,379) - - - (108,331) (30,917) (133,974) 843 (24,188) Total change in accounting principle (272,379) (2,572,484) - - - (108,331) (30,917) (133,974) 843 (24,188) 2,018,670 (2,018,670) 1,957,286 26,388,907 (26,388,907) - - - 2,018,670 - $ 237,693,563 248,387,156 $ 60,370,446 $ 26,388,907 $ 17,485,837 $ 87,602,643 $ 8,788,599 $ 129,508,453 $ 11,605,745 $ 38,689,168 $ Governmental Funds
Fund balance/net position, June 30, 2024, as previously reported
Fund balance/net position, July 1, 2024, as restated
Change within financial reporting entity
Effective July 1, 2024, the City reclassified its Development Services Fund, which had previously been reported as a nonmajor enterprise fund and within business-type activities, to the General Fund and governmental activities.

Management concluded that reporting this activity within the General Fund more appropriately reflects the nature of the activity and how it is financed and managed by the City. 82 REQUIRED SUPPLEMENTARY INFORMATION
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Pension Plans – Agent Multiple Defined Benefit Pension Plan Schedule of Changes in Net Pension Liability and Related Ratios 83 Report Date - Fiscal Year Ended June 30
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Total Pension LiabilityService cost $ 2,839,631 2,953,708 $ 2,817,366 $ 2,557,674 $ 2,509,174 $ 2,383,821 $ 2,285,059 $ 2,302,467 $ 1,881,617 $ 1,895,137 $ Interest on total pension liability 10,324,925 10,643,903 9,748,281 9,565,778 9,221,043 8,830,802 8,338,921 8,001,199 7,819,665 7,433,900 Changes in benefit terms 224,352 - - - - - - - - -
Change of assumptions - - 4,158,654 - - - (886,564) 6,473,120 - (1,775,482)Differences - expected/actual experience 3,238,725 (365,508) (1,814,905) (347,865) 465,723 2,123,056 729,871 (1,583,358) 562,943 (1,397,005) Benefit payments, including refunds of employee contributions (7,965,217) (8,501,258) (7,400,125) (6,809,319) (6,360,937) (6,209,260) (5,624,680) (5,205,114) (5,023,725) (4,661,365) Net change in total pension liability 8,662,416 4,730,845 7,509,271 4,966,268 5,835,003 7,128,419 4,842,607 9,988,314 5,240,500 1,495,185 Total pension liability - beginning 148,736,326 157,398,742 141,227,055 136,260,787 130,425,784 123,297,365 118,454,758 108,466,444 103,225,944 101,730,759 Total pension liability - ending (a) $ 157,398,742 162,129,587 $ 148,736,326 $ 141,227,055 $ 136,260,787 $ 130,425,784 $ 123,297,365 $ 118,454,758 $ 108,466,444 $ 103,225,944 $ Plan Fiduciary Net PositionPlan to plan resource movement $ - - $ - $ - $ - $ - $ (203) $ - $ - $ - $ Contributions - employer 5,007,336 5,088,377 4,700,557 4,313,159 3,910,427 3,408,537 3,026,404 2,953,750 2,660,488 2,433,522 Contributions - employee 1,646,809 1,869,523 1,572,986 1,516,692 1,621,617 1,431,732 1,314,215 1,173,897 938,085 1,680,617 Net investment income 6,585,677 10,699,614 (8,740,028) 21,676,108 4,626,622 5,746,746 6,978,602 8,340,246 417,640 (86,194) Administration expenses (78,367) (90,945) (72,579) (95,808) (130,038) (62,543) (128,722) (111,403) (46,628) - Other miscellaneous income/(expense) - - - - - - (244,445) - - - Benefit payments, including refunds of - -
employee contributions (7,965,217) (8,501,258) (7,400,125) (6,809,319) (6,360,937) (6,209,260) (5,624,680) (5,205,114) (5,023,725) (4,661,365) Net change in plan fiduciary net position 5,196,238 9,065,311 (9,939,189) 20,600,832 3,667,691 4,315,212 5,321,171 7,151,376 (1,054,140) 258,837 Plan fiduciary net position - beginning 106,571,141 111,767,379 116,510,330 95,909,498 92,241,807 87,926,595 82,605,424 75,454,048 76,508,188 76,249,351 Plan fiduciary net position - ending (b) $ 111,767,379 120,832,690 $ 106,571,141 $ 116,510,330 $ 95,909,498 $ 92,241,807 $ 87,926,595 $ 82,605,424 $ 75,454,048 $ 76,508,188 $ Net pension liability - ending (a) - (b) $ 45,631,363 41,296,897 $ 42,165,185 $ 24,716,725 $ 40,351,289 $ 38,183,977 $ 35,370,770 $ 35,849,334 $ 33,012,396 $ 26,717,756 $ Plan fiduciary net position as a percentage of the total pension liability 74.53% 71.01% 71.65% 82.50% 70.39% 70.72% 71.31% 69.74% 69.56% 74.12%Covered employee payroll $ 11,148,282 12,398,029 $ 10,736,617 $ 10,448,740 $ 10,134,999 $ 9,287,900 $ 9,499,135 $ 11,261,890 $ 785,106 $ 10,614,682 $ Net pension liability (asset) as percentage of covered employee payroll 333.09% 409.31% 392.72% 236.55% 398.14% 411.12% 372.36% 318.32% 4204.83% 251.71%Notes to the Schedule-----------------------------Changes in Assumptions - None Changes in Benefit Terms - The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Pension Plans – Agent Multiple Defined Benefit Pension Plan Schedule of Contributions
84 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Actuarially determined employer contributions $ 5,088,377 5,833,174 $ 5,007,336 $ 4,700,556 $ 3,103,795 $ 3,908,531 $ 3,374,661 $ 3,007,436 $ 2,950,052 $ 2,663,687 $ Actual employer contributions 5,833,174 5,088,377 5,007,336 4,700,556 3,103,795 3,908,531 3,374,661 3,007,436 2,950,052 2,663,687 Contribution excess (deficiency) $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ Covered payroll $ 12,398,029 13,046,271 $ 11,148,282 $ 10,736,617 $ 10,448,740 $ 10,134,999 $ 9,287,900 $ 9,499,135 $ 11,261,890 $ 10,756,983 $ Contributions as a percentage of covered-employee payroll 44.71% 41.04% 44.92% 43.78% 29.70% 38.56% 36.33% 31.66% 26.19% 24.76% CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Pension Plans – Cost-Sharing Multiple-Employer Defined Benefit Pension Plan Schedule of the City’s Proportionate Share of the Net Pension Liability 85 Measurement Date - Fiscal Year Ended June 30
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Proportion of the net pension liability 0.5233% 0.5180% 0.5111% 0.4746% 0.4432% 0.4249% 0.4125% 0.4168% 0.4316% 0.4443%Proportionate share of the net pension liability 38,155,575 $ 38,723,645 $ 35,120,688 $ 16,655,139 $ 29,527,370 $ 26,521,847 $ 24,205,123 $ 24,905,736 $ 22,352,131 $ 18,307,442 $ Covered payroll 10,303,153 $ 9,526,970 $ 8,633,379 $ 8,637,146 $ 8,384,958 $ 8,017,645 $ 8,887,143 $ 9,255,346 $ 8,848,988 $ 9,091,762 $ Proportionate share of the net pension liability as a percentage of covered payroll 370.33% 406.46% 406.80% 192.83% 352.15% 330.79% 272.36% 269.10% 252.60% 201.36%Plan fiduciary net pension as a percentage of the total pension liability 74.88% 72.84% 73.61% 86.37% 74.61% 75.79% 75.93% 73.62% 73.74% 77.09%Notes to the ScheduleChanges in Benefit Terms - None Changes in Benefit Terms - None
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Pension Plans – Cost-Sharing Multiple-Employer Defined Benefit Pension Plan Schedule of Contributions
86 Report Date - Fiscal Year Ended June 30
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Actuarially required contribution (actuarially determined) 5,236,733 $ 4,547,187 $ 4,294,568 $ 3,844,348 $ 3,537,773 $ 3,151,438 $ 2,701,815 $ 2,549,074 $ 3,368,410 $ 3,071,894 $ Contributions in relation to the actuarially determined contributions 5,236,733 4,547,187 4,294,568 3,844,348 3,537,773 3,151,438 2,701,815 2,549,074 3,368,410 3,071,894 Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Covered payroll 11,162,205 $ 10,303,153 $ 9,526,970 $ 8,633,379 $ 8,637,146 $ 8,384,958 $ 8,017,645 $ 8,887,143 $ 9,255,346 $ 8,848,988 $ Contributions as a percentage of covered payroll 46.91% 44.13% 45.08% 44.53% 40.96% 37.58% 33.70% 28.68% 36.39% 34.71% CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Pension Plans – Single Employer Defined Benefit Pension Plan Schedule of Changes in Net Pension Liability and Related Ratios 87 Report Date - Fiscal Year Ended June 30
2025 2024 2023 2022 2021 2020 2019 2018 2017
Total Pension LiabilityService cost $ 6,340 6,504 $ 6,167 $ 14,048 $ 13,665 $ 14,452 $ 14,065 $ 21,938 $ 21,938 $ Interest on total pension liability 140,511 121,597 139,436 134,962 133,885 132,640 123,881 131,533 128,178 Effect of plan changes - - - - - - - - -
Effect of economic/demographic gains or losses (307,352) - - 59,642 - - 7,608 - - Effect of assumption changes or inputs - - - - - (854) 114,451 - - Benefits payments (129,371) (131,958) (129,134) (134,650) (128,193) (124,476) (126,739) (110,914) (112,985) Net change in total pension liability (289,872) (3,857) 16,469 74,002 19,357 21,762 133,266 42,557 37,131Total pension liability - beginning 1,929,155 2,219,027 2,202,558 2,128,556 2,109,199 2,087,437 1,954,171 1,911,614 1,874,483 Total pension liability - ending (a) $ 1,925,298 1,929,155 $ 2,219,027 $ 2,202,558 $ 2,128,556 $ 2,109,199 $ 2,087,437 $ 1,954,171 $ 1,911,614 $ Fiduciary Net PositionEmployer contributions $ 142,265 157,243 $ 138,675 $ 130,098 $ 120,486 $ 121,729 $ 100,000 $ 106,229 $ 94,272 $ Member contributions - - - - - - - - -
Net investment income 57,087 54,320 32,559 (70,235) 97,857 13,801 26,570 25,654 40,110 Benefit payments (129,371) (131,958) (129,134) (134,650) (128,193) (124,476) (126,739) (110,914) (112,985) Administration expenses (3,209) (2,816) (2,552) (2,820) (2,651) (2,389) (2,316) (2,352) (2,229) Net Change in plan fiduciary net position 67,165 76,396 39,548 (77,607) 87,499 8,665 (2,485) 18,617 19,168 Plan fiduciary net position - beginning 573,693 506,528 466,980 544,587 457,088 448,423 450,908 432,291 413,123 Plan fiduciary net position - ending (b) $ 650,089 573,693 $ 506,528 $ 466,980 $ 544,587 $ 457,088 $ 448,423 $ 450,908 $ 432,291 $ Net pension liability (asset) - ending (a) - (b) $ 1,275,209 1,355,462 $ 1,712,499 $ 1,735,578 $ 1,583,969 $ 1,652,111 $ 1,639,014 $ 1,503,263 $ 1,479,323 $ Plan fiduciary net position as a percentage of the total pension liability 33.77% 29.74% 22.83% 21.20% 25.58% 21.67% 21.48% 23.07% 22.61%Covered payroll $ 4,761,068 4,894,378 $ 4,471,415 $ 4,349,625 $ 4,188,486 $ 4,074,403 $ 4,211,300 $ 3,832,018 $ 3,720,406 $ Net pension liability (asset) as percentage of covered employee payroll 26.05% 28.47% 38.30% 39.90% 37.82% 40.55% 38.92% 39.23% 39.76%*This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are not required , and if prior years are not reported in accordance with the current GASB standards, they should not be reported CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Pension Plans – Single Employer Defined Benefit Pension Plan Schedule of Contributions
88 Report Date - Fiscal Year Ended June 30
2025 2024 2023 2022 2021 2020 2019 2018 2017
Actuarially required contribution (actuarially determined) 169,471 $ 169,471 $ 163,075 $ 163,075 $ 154,905 $ 154,905 $ 167,222 $ 151,627 $ 94,272 $ Contributions in relation to the actuarially determined contributions 157,243 142,265 138,675 130,098 120,486 121,729 100,000 106,229 94,272 Contribution deficiency (excess) 12,228 $ 27,206 $ 24,400 $ 32,977 $ 34,419 $ 33,176 $ 67,222 $ 45,398 $ - $ Covered payroll 4,894,378 $ 4,761,068 $ 4,471,415 $ 4,349,625 $ 4,188,486 $ 4,074,403 $ 4,211,300 $ 3,832,018 $ 3,720,406 $ Contributions as a percentage of covered payroll 3.21% 2.99% 3.10% 2.99% 2.88% 2.99% 2.37% 2.77% 2.53%*This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are not required , and if prior years are not reported in accordance with the current GASB standards, they should not be reported CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Pension Plans – Retiree Healthcare Plan (OPEB)
Schedule of Changes in the Net Other Post Employment Benefits (OPEB) Liability and Related Ratios 89 2025 2024 2023 2022 2021 2020 2019 20182024 2023 2022 2021 2020 2019 2018 2017 Total OPEB LiabilityService cost $ 25,841 29,276 $ 6,230 $ 18,574 $ 615 $ 572 $ 524 $ 508 $ Interest 88,171 69,538 59,163 81,505 97,955 139,688 130,720 134,199 Change of benefit terms - - - - - - - -
Differences - expected/actual experience (561,691) - - (423,590) - (677,736) 443 - Change of assumptions 11,487 (19,210) (622,524) 243,916 232,088 (18,841) (222,884) - Benefit payments (154,221) (156,245) (155,295) (151,322) (151,322) (194,036) (259,572) (259,568) Net change in total OPEB liability (590,413) (76,641) (712,426) (230,917) 179,336 (750,353) (350,769) (124,861) Total OPEB liability - beginning (a) 1,849,607 2,440,020 3,152,446 3,383,363 3,204,027 3,954,380 4,305,149 4,430,010 Total OPEB liability - ending (b) $ 1,772,966 1,849,607 $ 2,440,020 $ 3,152,446 $ 3,383,363 $ 3,204,027 $ 3,954,380 $ 4,305,149 $ Plan Fiduciary New PositionContributions - employer $ 154,221 156,245 $ 155,295 $ 151,322 $ 194,036 $ 194,036 $ 259,572 $ 259,568 $ Net investment income - - - - - - - -
Benefit payments (154,221) (156,245) (155,295) (151,322) (194,036) (194,036) (259,572) (259,568) Trustee fees - - - - - - - -
Administration expense - - - - - - - -
Net change in plan fiduciary net position - - - - - - - - Plan fiduciary net position - beginning (c) - - - - - - - - Plan fiduciary net position - ending (d) $ - - $ - $ - $ - $ - $ - $ - $ Net OPEB liability - beginning (a) - (c) $ 1,849,607 2,440,020 $ 3,152,446 $ 3,383,363 $ 3,204,027 $ 3,954,380 $ 4,305,149 $ 4,430,010 $ Net OPEB liability - ending (b) - (d) $ 1,772,966 1,849,607 $ 2,440,020 $ 3,152,446 $ 3,383,363 $ 3,204,027 $ 3,954,380 $ 4,305,149 $ Covered employee payroll 32,770,054 $ 32,571,855 $ 30,575,472 $ 27,781,007 $ 26,850,953 $ 26,066,514 $ 25,391,445 $ 23,580,458 $ Net OPEB liability as percentage of
covered employee payroll 5.41% 5.68% 7.98% 11.35% 12.60% 12.29% 15.57% 18.26%Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%*Fiscal year 2017-2018 was the first year of implementation.Notes to the ScheduleThe OPEB schedule presented relates solely to the City. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions.For Reporting at Fiscal Year Ended June 30:Measurement Date -- Fiscal Year Ended June 30:

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Pension Plans – Retiree Healthcare Plan (OPEB)
Schedule of Other Postemployment Benefits Contributions 90 2025 2024 2023 2022 2021 2020 2019 2018
Actuarially Determined Contribution (ADC) 156,245 $ 154,221 $ 155,295 $ 151,322 $ 194,036 $ 194,036 $ 259,572 $ 259,568 $ Contributions in relation to the ADC 156,245 154,221 155,295 151,322 194,036 194,036 259,572 259,568 Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ Covered-employee payroll 32,770,054 $ 32,571,855 $ 30,575,472 $ 27,781,007 $ 26,850,953 $ 26,066,514 $ 25,391,445 $ 23,580,458 $ Contributions as a percentage of covered-employee payroll 0.48% 0.47% 0.51% 0.54% 0.72% 0.74% 1.02% 1.10%*Fiscal year 2017-2018 was the first year of implementation, therefore, only the above years presented are shown.For Reporting at Fiscal Year Ended June 30:

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual General Fund (GAAP Basis)
See accompanying notes to the Required Supplementary Information. 91 Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Taxes $ 53,872,600 53,872,600 $ 56,265,742 $ 2,393,142 $ Intergovernmental 2,056,720 1,709,720 4,808,222 2,751,502 Licenses and permits 4,191,772 4,191,772 4,336,187 144,415 Charges for services 9,109,540 9,143,640 7,677,022 (1,432,518) Fines and forfeitures 84,000 84,000 (17,198) (101,198)
Use of money and property 179,400 179,400 1,500,801 1,321,401 Interest and rentals 154,750 154,750 270,276 115,526
Other 1,306,100 1,306,100 1,460,931 154,831
Total revenues 70,641,982 70,954,882 76,301,983 5,347,101

EXPENDITURES
Current:

General government 14,063,255 9,022,666 8,588,477 5,474,778 Public safety 38,246,963 38,194,343 37,674,851 572,112
Public works 3,475,812 3,069,162 3,144,940 330,872
Community development 6,699,950 4,852,950 4,525,499 2,174,451 Community services 8,249,008 8,084,008 8,929,310 (680,302) Library and cultural 1,775,196 1,775,196 1,676,083 99,113 Capital outlay 38,349,894 3,488,443 24,347,104 14,002,790 Debt service:

Principal 64,637 54,320 258,850 (194,213)
Interest and fiscal charges 432,984 - 535,183 (102,199) Total expenditures 68,541,088 111,357,700 89,680,297 21,677,403 Excess (deficiency) of revenues
over (under) expenditures 2,100,894 (40,402,818) (13,378,314) 27,024,504

OTHER FINANCING SOURCES (USES)
Transfers in 5,522,470 3,476,870 7,402,969 1,880,499
Transfers out (7,214,396) (5,934,556) (6,438,615) 775,781 Proceeds on debt issuance - - 795,536 795,536
Gain (loss) on sale of capital assets - - (1,391) (1,391) Total other financing sources (uses) (1,691,926) (2,457,686) 1,758,499 3,450,425 Net change in fund balance $ (42,094,744) (356,792) $ (11,619,815) 30,474,929 $ Fund balance - beginning, restated 60,370,446
Fund balance - ending 48,750,631 $
CITY OF TULARE| FOR THE YEAR ENDED JUNE 30, 2025
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Developer Impact Fees Fund
See accompanying notes to the Required Supplementary Information. 92 Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Charges for services $ 6,199,700 6,199,700 $ 6,166,553 $ (33,147) $ Use of money and property 204,300 204,300 - (204,300)
Interest and rentals - - 1,272,344 1,272,344
Total revenues 6,404,000 6,404,000 7,438,897 1,034,897

EXPENDITURES
Current:

General government - - - -
Total expenditures - - - -
Excess (deficiency) of revenues
over (under) expenditures 6,404,000 6,404,000 7,438,897 1,034,897

OTHER FINANCING SOURCES (USES)
Transfers in - - 7,279,116 7,279,116
Transfers out (1,098,780) (500,000) (3,047,855) (1,949,075) Total other financing sources (1,098,780) (500,000) 4,231,261 5,330,041 Net change in fund balance $ 5,904,000 5,305,220 $ 11,670,158 6,364,938 $ Fund balances (deficits) - beginning,
as previously presented -
Change within financial reporting entity (major to
nonmajor fund) 26,388,907
Fund balances (deficits) - beginning, restated 26,388,907 Fund balances (deficits) - ending $ 38,059,065
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Notes to the Required Supplementary Information
93 NOTE 1 – BUDGETARY DATA
The procedures established by the City Council in adopting the budgetary data reflected in the financial statements are as follows:

On or before the second meeting in May, the City Manager submits to the City Council a proposed operating and capital projects budget for the fiscal year commencing the following July 1st. Following publication and public hearings, the budget is legally enacted by resolution.

The annual budget sets appropriations by fund, or with further allocation by department or program. At the fund level, expenditures may not legally exceed appropriations. The City Manager is authorized to transfer budgeted amounts between departments or programs within any fund, and to transfer funds appropriated with respect to all classifications within the same department. The City Manager may also transfer appropriated funds from any classification within other expenditure categories to existing capital outlay and capital projects classifications within the same department; however, any revisions that alter the total expenditures of any fund or create additional projects must be approved by the City Council. The City Council may adopt supplemental appropriations during the year.

Supplemental budgetary appropriations were negligible for the year ended June 30, 2024. All unencumbered appropriations lapse at year-end.

For budgeting purposes, the General Fund is composed of several departments while all other budgeted funds are considered a single department. Revenues are budgeted on a line-item basis. A comparison of budgeted and actual revenues by line item would be too voluminous for this report.

Budgets for the General, Special Revenue, and Debt Service Funds are presented on a basis consistent with accounting principles generally accepted in the United States of America. No budgets are adopted for the Proprietary and Fiduciary Fund types. Budgetary comparison schedules are presented for all required funds with legally adopted budgets.

Budgeted amounts are as originally adopted or as amended by the City Council.

NOTE 2 – EXCESS EXPENDITURES OVER APPROPRIATIONS
The City incurred expenditures in excess of appropriations in the following amounts for the year ended June 30, 2025:

Budget Actual Variance
General Fund:

Current:

Community services $ 8,929,310 8,249,008 $ (680,302) $
Debt service:

Principal 258,850 64,637 (194,213)
Interest and fiscal charges 535,183 432,984 (102,199)
Appropriations Category
94 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES CITY OF TULARE | JUNE 30, 2025
Nonmajor Governmental Funds
Combining Balance Sheet
95 Total Nonmajor
Special Capital Debt Service Governmental
Revenue Funds Projects Fund Fund Funds
ASSETS
Cash and investments $ 869,537 20,752,880 $ 1,209,655 $ 22,832,072 $ Cash and investments with fiscal agent - - 1,298,473 1,298,473 Receivables:

Accounts - 22,600 - 22,600
Interest - 841,275 2,134 843,409
Taxes - 507,687 - 507,687
Intergovernmental - 480,553 - 480,553
Loans - 9,312,892 - 9,312,892
Notes - 759,458 - 759,458
Land held for resale - 35,000 - 35,000
Total assets $ 869,537 32,712,345 $ 2,510,262 $ 36,092,144 $

LIABILITIES
Accounts payable and accrued liabilities $ - 1,359,617 $ - $ 1,359,617 $ Due to other funds - 576,384 - 576,384
Unearned revenue - other 2,272,643 - - 2,272,643
Total liabilities - 4,208,644 - 4,208,644

DEFERRED INFLOWS OF RESOURCES
Deferred loans 10,188,737 - - 10,188,737
Total deferred inflows of resources 10,188,737 - - 10,188,737

FUND BALANCES (DEFICITS)
Nonspendable - 35,000 - 35,000
Restricted - 18,320,497 2,510,262 20,830,759
Committed 869,537 - - 869,537
Unassigned (40,533) - - (40,533)
Total fund balances (deficits) 18,314,964 869,537 2,510,262 21,694,763 Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 869,537 32,712,345 $ 2,510,262 $ 36,092,144 $ CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 96 Total Nonmajor
Special Capital Debt Governmental
Revenue Funds Projects Fund Service Fund Funds

REVENUES
Taxes $ - 4,719,662 $ - $ 4,719,662 $
Intergovernmental - 12,417,994 - 12,417,994
Charges for services - 25,265 - 25,265
Donations - 47,649 - 47,649
Fines and forfeitures - 53,573 - 53,573
Use of money and property - 712,834 97,225 810,059
Loan repayments - 107,622 - 107,622
Assessments - 1,395,424 - 1,395,424
Other - (1,416) - (1,416)
Total revenues 19,478,607 - 97,225 19,575,832

EXPENDITURES
Current:

General government - 96,469 4,450 100,919
Public safety - 626,148 - 626,148
Community development 11,860 3,229,812 - 3,241,672
Community services - 1,755,918 - 1,755,918
Capital outlay 74,696 8,231,241 - 8,305,937
Debt service:

Principal - - 1,350,000 1,350,000
Interest and fiscal charges - - 875,750 875,750
Total expenditures 13,939,588 86,556 2,230,200 16,256,344 Excess (deficiency) of revenues
over (under) expenditures (86,556) 5,539,019 (2,132,975) 3,319,488 Other financing sources (uses):

Transfers in 77,810 529,627 2,928,536 3,535,973
Transfers out - (2,646,535) - (2,646,535)
Total other financing sources (uses) 77,810 (2,116,908) 2,928,536 889,438 Net change in fund balance 3,422,111 (8,746) 795,561 4,208,926 Fund balances (deficits) - beginning, as previously presen 878,283 41,281,760 1,714,701 43,874,744 Change within financial reporting entity (major to
nonmajor fund) - (26,388,907) - (26,388,907)
Fund balances (deficits) - beginning, restated 14,892,853 878,283 1,714,701 17,485,837 Fund balances (deficits) - ending $ 869,537 18,314,964 $ 2,510,262 $ 21,694,763 $ 97 NONMAJOR SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes.

The Senior Services Fund accounts for receipts of funds from various sources and expenditures to provide meals to senior citizens.

The Encampment Resolution Grant Fund accounts for receipts of funds from various sources and expenditures aimed at addressing and resolving issues related to homeless encampments.

The Housing Redevelopment CDBG Fund accounts for capital projects relating to the low- and moderate-income housing program.

The Gas Tax Fund accounts for receipts and expenditures of money apportioned under Streets and Highway Code Sections 2105, 2106, 2107, and 2107.5 of the State of California.

The Traffic Safety Fund accounts for vehicle code fund revenues and expenditures for traffic safety purposes.

The Citizens Option for Public Safety (COPS) - State Grant Fund accounts for the City's allocation of the State of California COPS program established by Assembly Bill (AB) 3229.

Local Law Enforcement Block Grant Fund accounts for Federal funds received from the U.S. Department of Justice for the purpose of reducing crime and improving public safety.

The Measure R Fund accounts for the City’s share of the county-wide ½ cent sales tax for various street projects.

The Landscape and Lighting Fund accounts for revenues from assessments collected under the 1972 Landscape and Lighting Act and expenditures for maintenance of landscaping in the special assessment districts.

The Office of Traffic and Safety (OTS) Grant Fund accounts for Federal revenues for the comprehensive traffic safety program.

The Auto Theft Deterrence Fund accounts for State revenues for the suppression of auto theft.

The Police Forfeiture Fund accounts for State and Federal revenues for narcotic suppression activities.

The Vehicle Abatement Fund accounts for State and Federal revenues for the abatement of abandoned vehicles.

The Fire Department Grants accounts for accounts for Federal funds received from U.S. Department of Homeland Security for the purpose of increasing or maintaining the number of trained firefighters.

The COPS Hiring Recovery Program accounts for Federal funds received from U.S. Department of Justice to hire and/or retain additional career law enforcement officers in an effort to increase their community policing capacity and crime prevention efforts.
98 Rental Rehabilitation Fund accounts for financial assistance to pay for mandatory repairs to self-contained units occupied by low-income tenants.

The HOME Investment Partnerships (HOME) Program Fund manages the financial activities associated with the HOME Program, a grant program administered by the U.S. Department of Housing and Urban Development (HUD). The program is designed to support state and local governments in their efforts to expand the availability of affordable housing for lowincome households. The fund documents the receipt and distribution of HOME grant funds to facilitate the development, acquisition, and rehabilitation of affordable housing projects within the community.

American Rescue Plan Act Fund (ARPA) – The American Rescue Plan Act (ARPA) Fund accounts for receipts and expenditures of money appropriated be the ARPA, a federal relief package established in response to the COVID-19 pandemic, which was enacted in 2021. The fund tracks both the inflow and allocation of resources provided by the stimulus program.

CITY OF TULARE | JUNE 30, 2025
Nonmajor Special Revenue Funds Combining Balance Sheet
99 Housing Local Law Landscape Fire
Senior Encampment Redevelopment Gas Traffic COPS - Enforcement Measure R and Department Services Resolution Grant CDBG Tax Safety State Grant Block Grant Fund Lighting Grants ASSETS
Cash and investments $ 191,499 101 $ - $ 8,114,212 $ - $ 204,311 $ - $ 6,364,911 $ 2,832,929 $ - $ Receivables:

Accounts - 22,000 - - - - - - - -
Interest 332 - - 17,114 68 360 - 12,384 4,997 -
Taxes - - - 507,687 - - - - - -
Intergovernmental - 40,532 13,175 - 8,874 - - - 16,753 329,861 Loans - - 409,419 - - - - - - -
Notes - - 759,458 - - - - - - -
Land held for resale - - 35,000 - - - - - - -
Total assets $ 191,831 62,633 $ 1,217,052 $ 8,639,013 $ 8,942 $ 204,671 $ - $ 6,377,295 $ 2,854,679 $ 329,861 $

LIABILITIES
Accounts payable and accrued liabilities $ 22,032 14,159 $ 111,393 $ - $ - $ 6,295 $ - $ - $ 26,234 $ - $ Due to other funds - 48,474 112,497 - 8,942 - 31,273 - - 329,861 Unearned revenue - other 169,799 - - 138,454 - 198,376 - - - - Total liabilities 191,831 62,633 223,890 138,454 8,942 204,671 31,273 - 26,234 329,861

DEFERRED INFLOWS OF RESOURCES
Deferred Loans - - 480,519 - - - - - - -
Total deferred inflows of resources - - 480,519 - - - - - - -

FUND BALANCES (DEFICITS)
Nonspendable - - 35,000 - - - - - - -
Restricted - - 477,643 8,500,559 - - - 6,377,295 2,828,445 - Unassigned - - - - - - (31,273) - - -
Total fund balances (deficits) - - 512,643 8,500,559 - - (31,273) 6,377,295 2,828,445 - Total liabilities, deferred inflows of resources, and fund balances (deficits) $ 191,831 62,633 $ 1,217,052 $ 8,639,013 $ 8,942 $ 204,671 $ - $ 6,377,295 $ 2,854,679 $ 329,861 $ CITY OF TULARE | JUNE 30, 2025
Nonmajor Special Revenue Funds Combining Balance Sheet (Continued) 100
COPS Office of Traffic Auto American
Hiring Recovery and Safety Theft Police Vehicle Rental HOME Rescue Plan Program Grant Deterrence Forfeiture Abatement Rehabilitation Program Fund Act Fund Total ASSETS
Cash and investments $ - - $ - $ 49,155 $ 123,824 $ 51,198 $ 492,958 $ 2,327,782 $ 20,752,880 $ Receivables:

Accounts - - - - - - 600 - 22,600
Interest 10 - - 87 218 90 805,615 - 841,275
Taxes - - - - - - - - 507,687
Intergovernmental - 36,067 - - - - 35,291 - 480,553
Loans - - - - - 1,049,503 7,853,970 - 9,312,892
Notes - - - - - - - - 759,458
Land held for resale - - - - - - - - 35,000
Total assets $ 10 36,067 $ - $ 49,242 $ 124,042 $ 1,100,791 $ 9,188,434 $ 2,327,782 $ 32,712,345 $

LIABILITIES
Accounts payable and accrued liabilities $ - - $ - $ - $ 1,361 $ 1,060 $ 29,493 $ 1,147,590 $ 1,359,617 $ Due to other funds 10 36,067 9,260 - - - - - 576,384
Unearned revenue - other - - - 35,368 - 50,228 500,226 1,180,192 2,272,643 Total liabilities 10 36,067 9,260 35,368 1,361 51,288 529,719 2,327,782 4,208,644

DEFERRED INFLOWS OF RESOURCES
Deferred Loans - - - - - 1,049,503 8,658,715 - 10,188,737 Total deferred inflows of resources - - - - - 1,049,503 8,658,715 - 10,188,737

FUND BALANCES (DEFICITS)
Nonspendable - - - - - - - - 35,000
Restricted - - - 13,874 122,681 - - - 18,320,497
Unassigned - - (9,260) - - - - - (40,533)
Total fund balances (deficits) - - (9,260) 13,874 122,681 - - - 18,314,964 Total liabilities, deferred inflows of resources, and fund balances (deficits) $ 10 36,067 $ - $ 49,242 $ 124,042 $ 1,100,791 $ 9,188,434 $ 2,327,782 $ 32,712,345 $ CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances 101
Housing Local Law Landscape Fire
Senior Encampment Redevelopment Gas Traffic COPS - Enforcement Measure R and Department Services Resolution Grant CDBG Tax Safety State Grant Block Grant Fund Lighting Grants

REVENUES
Taxes $ - - $ - $ 4,188,787 $ - $ - $ - $ 485,269 $ - $ - $ Intergovernmental 2,010,429 340,134 1,132,261 - - 195,419 20,756 - - 329,862 Charges for services - 5,440 - - - - - - - -
Donations - 47,649 - - - - - - - -
Fines and forfeitures - - - - 46,492 - - - - -
Use of money and property - - - 311,360 86 8,239 - 259,576 108,844 - Loan repayments - - - - - - - - - -
Assessments - - - - - - - - 1,395,424 -
Other - - - - - - - - - -
Total revenues 2,010,429 393,223 1,132,261 4,500,147 46,578 203,658 20,756 744,845 1,504,268 329,862 EXPENDITURESCurrent:

General government - - - - - - - - - -
Public safety - - - - - 203,660 - - - 329,862
Community development 2,010,429 - 1,056,701 - - - - - - - Community services - 922,850 - - - - - - 831,438 -
Capital outlay - - - - - - - - - -
Total expenditures 2,010,429 922,850 1,056,701 - - 203,660 - - 831,438 329,862 Excess (deficiency) of revenues over (under) expenditures - (529,627) 75,560 4,500,147 46,578 (2) 20,756 744,845 672,830 - Other financing (uses):

Transfers in - 529,627 - - - - - - - -Transfers out - - - (1,959,003) (46,579) - - (635,489) - - Total other financing sources - 529,627 - (1,959,003) (46,579) - - (635,489) - - Net change in fund balance - - 75,560 2,541,144 (1) (2) 20,756 109,356 672,830 - - - 437,083 5,959,415 1 2 (52,029) 6,267,939 2,155,615 - Change within financial reporting entity (major to
nonmajor fund) - - - - - - - - - -
Fund balances (deficits) - beginning, restated - - 437,083 5,959,415 1 2 (52,029) 6,267,939 2,155,615 -Fund balances (deficits) - ending $ - - $ 512,643 $ 8,500,559 $ - $ - $ (31,273) $ 6,377,295 $ 2,828,445 $ - $ Fund balances (deficits) - beginning, as previously presented CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) 102
Previously major
COPS Office of Traffic Auto American Developer
Hiring Recovery and Safety Theft Police Vehicle Rental HOME Rescue Plan Fees Impact Program Grant Deterrance Forfeiture Abatement Rehabilitation Program Fund Act Fund Fund Total

REVENUES
Taxes $ - - $ - $ - $ 45,606 $ - $ - $ - $ - $ 4,719,662 $ Intergovernmental - 36,068 - - - - 38,555 8,314,510 - 12,417,994Charges for services - - 19,825 - - - - - - 25,265 Donations - - - - - - - - - 47,649
Fines and forfeitures 7,081 - - - - - - - - 53,573
Use of money and property 13 - (10) 1,956 4,849 2,021 15,900 - - 712,834 Loan repayments - - - - - - 107,622 - - 107,622
Assessments - - - - - - - - - 1,395,424
Other - - - - - (1,416) - - - (1,416)
Total revenues 7,094 36,068 19,815 1,956 50,455 605 162,077 8,314,510 - 19,478,607 EXPENDITURESCurrent:

General government - - - - - - - 96,469 - 96,469
Public safety - 36,068 6,625 - 49,933 - - - - 626,148Community development - - - - - 605 162,077 - - 3,229,812 Community services 1,630 - - - - - - - - 1,755,918
Capital outlay - - 13,200 - - - - 8,218,041 - 8,231,241 Total expenditures 1,630 36,068 19,825 - 49,933 605 162,077 8,314,510 - 13,939,588 Excess (deficiency) of revenues over (under) expenditures 5,464 - (10) 1,956 522 - - - - 5,539,019 Other financing (uses):

Transfers in - - - - - - - - - 529,627
Transfers out (5,464) - - - - - - - - (2,646,535)
Total other financing sources (5,464) - - - - - - - - (2,116,908) Net change in fund balance - - (10) 1,956 522 - - - - 3,422,111 - - (9,250) 11,918 122,159 - - - 26,388,907 41,281,760
Change within financial reporting entity (major to
nonmajor fund) - - - - - - - - (26,388,907) (26,388,907) Fund balances (deficits) - beginning, restated - - (9,250) 11,918 122,159 - - - - 14,892,853Fund balances (deficits) - ending $ - - $ (9,260) $ 13,874 $ 122,681 $ - $ - $ - $ - $ 18,314,964 $ Fund balances (deficits) - beginning, as previously presented CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Senior Services Fund
103
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental $ 343,131 305,800 $ 340,134 $ (2,997) $ Licenses and permits - - - -
Charges for services 4,000 4,000 5,440 1,440
Donations 33,000 33,000 47,649 14,649
Total revenues 380,131 342,800 393,223 13,092

EXPENDITURES
Current:

Community services 945,534 883,203 922,850 22,684
Total expenditures 945,534 883,203 922,850 22,684
Excess (deficiency) of revenues
over (under) expenditures (565,403) (540,403) (529,627) 35,776

OTHER FINANCING SOURCES (USES)
Transfers in 400,000 375,000 529,627 129,627
Total other financing sources 400,000 375,000 529,627 129,627 Net change in fund balance $ (165,403) (165,403) $ - 165,403 $ Fund balance (deficit) - beginning -
Fund balance (deficit) - ending - $
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Encampment Resolution Grant Fund
104
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental $ - - $ 2,010,429 $ 2,010,429 $
Total revenues - - 2,010,429 2,010,429

EXPENDITURES
Current:

Community development 66,805 66,805 2,010,429 (1,943,624) Total expenditures 66,805 66,805 2,010,429 (1,943,624)
Excess (deficiency) of revenues
over (under) expenditures $ (66,805) (66,805) $ - 66,805 $ Fund balance (deficit) - beginning -
Fund balance (deficit) - ending - $
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Housing Redevelopment CDBG Fund
105
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental $ 929,100 1,024,000 $ 1,132,261 $ 108,261 $ Total revenues 1,024,000 929,100 1,132,261 108,261

EXPENDITURES
Current:

Community development 1,071,388 59,312 1,056,701 14,687 Total expenditures 1,071,388 59,312 1,056,701 14,687
Excess (deficiency) of revenues
over (under) expenditures $ 869,788 (47,388) $ 75,560 122,948 $ Fund balance (deficit) - beginning 437,083
Fund balance (deficit) - ending 512,643 $
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Gas Tax Fund
106
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Taxes $ 3,517,500 3,517,500 $ 4,188,787 $ 671,287 $
Use of money and property 17,300 17,300 311,360 294,060 Total revenues 3,534,800 3,534,800 4,500,147 965,347

EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues
over (under) expenditures 3,534,800 3,534,800 4,500,147 965,347

OTHER FINANCING SOURCES (USES)
Transfers out (191,980) - (1,959,003) (1,767,023)
Total other financing sources (191,980) - (1,959,003) (1,767,023) Net change in fund balance $ 3,534,800 3,342,820 $ 2,541,144 (801,676) $ Fund balance (deficit) - beginning 5,959,415
Fund balance (deficit) - ending 8,500,559 $
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Traffic Safety Fund
107
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Fines and forfeitures $ 60,000 60,000 $ 46,492 $ (13,508) $ Use of money and property 100 100 86 (14)
Total revenues 60,100 60,100 46,578 (13,522)

EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues
over (under) expenditures 60,100 60,100 46,578 (13,522)

OTHER FINANCING SOURCES (USES)
Transfers out (50,000) (50,000) (46,579) 3,421
Total other financing sources (50,000) (50,000) (46,579) 3,421 Net change in fund balance $ 10,100 10,100 $ (1) (10,101) $ Fund balance (deficit) - beginning 1
Fund balance (deficit) - ending - $
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual COPS – State Grant Fund
108
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental $ 150,000 150,000 $ 195,419 $ 45,419 $ Use of money and property 900 900 8,239 7,339
Total revenues 150,900 150,900 203,658 52,758

EXPENDITURES
Current:

Public safety 163,131 163,131 203,660 (40,529)
Total expenditures 163,131 163,131 203,660 (40,529)
Excess (deficiency) of revenues
over (under) expenditures $ (12,231) (12,231) $ (2) 12,229 $ Fund balance (deficit) - beginning 2
Fund balance (deficit) - ending - $
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Local Law Enforcement Block Grant Fund
109
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental $ - - $ 20,756 $ 20,756 $
Total revenues $ - - $ 20,756 $ 20,756 $

EXPENDITURES
Current:

Public safety - - - -
Total expenditures - - - -
Excess (deficiency) of revenues
over (under) expenditures $ - - $ 20,756 20,756 $
Fund balance (deficit) - beginning (52,029)
Fund balance (deficit) - ending (31,273) $
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Measure R Fund
110
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Taxes $ 1,170,000 1,170,000 $ 485,269 $ (684,731) $
Use of money and property - - 259,576 259,576
Total revenues 1,170,000 1,170,000 744,845 (425,155)

EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues
over (under) expenditures 1,170,000 1,170,000 744,845 (425,155)

OTHER FINANCING SOURCES (USES)
Transfers out - - (635,489) (635,489)
Total other financing sources (uses) - - (635,489) (635,489) Net change in fund balance $ 1,170,000 1,170,000 $ 109,356 (1,060,644) $ Fund balances (deficits) - beginning 6,267,939
Fund balances (deficits) - ending $ 6,377,295
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Landscape and Lighting Fund
111
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Use of money and property $ 10,300 10,300 $ 108,844 $ 98,544 $ Assessments 1,773,300 1,773,300 1,395,424 (377,876)
Total revenues 1,783,600 1,783,600 1,504,268 (279,332)

EXPENDITURES
Current:

Community services 1,167,481 1,167,481 831,438 336,043
Total expenditures 1,167,481 1,167,481 831,438 336,043
Excess (deficiency) of revenues
over (under) expenditures $ 616,119 616,119 $ 672,830 56,711 $ Fund balance (deficit) - beginning 2,155,615
Fund balance (deficit) - ending 2,828,445 $
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Fire Department Grants Fund
112
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental $ 686,700 - $ 329,862 $ (356,838) $
Total revenues 686,700 - 329,862 (356,838)

EXPENDITURES
Current:

Public safety - - 329,862 (329,862)
Total expenditures - - 329,862 (329,862)
Excess (deficiency) of revenues
over (under) expenditures $ 686,700 - $ - (26,976) $
Fund balance (deficit) - beginning -
Fund balance (deficit) - ending - $
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual COPS Hiring Recovery Program Fund
113
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental $ 57,170 57,170 $ 36,068 $ (21,102) $ Total revenues 57,170 57,170 36,068 (21,102)

EXPENDITURES
Current:

Public safety 57,166 57,166 36,068 21,098
Total expenditures 57,166 57,166 36,068 21,098
Excess (deficiency) of revenues
over (under) expenditures 4 4 - (4)
Net change in fund balance $ 4 4 $ - (4) $
Fund balance (deficit) - beginning -
Fund balance (deficit) - ending - $
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Office of Traffic and Safety Grant Fund
114
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Fines and forfeitures $ 7,000 7,000 $ 7,081 $ 81 $
Use of money and property - - 13 13
Total revenues 7,000 7,000 7,094 94

EXPENDITURES
Current:

Community services 1,630 1,630 1,630 -
Total expenditures 1,630 1,630 1,630 -
Excess (deficiency) of revenues
over (under) expenditures 5,370 5,370 5,464 94

OTHER FINANCING SOURCES (USES)
Transfers out (8,370) (8,370) (5,464) 2,906
Total other financing sources (8,370) (8,370) (5,464) 2,906 Net change in fund balance $ (3,000) (3,000) $ - 3,000 $ Fund balance (deficit) - beginning -
Fund balance (deficit) - ending - $
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Auto Theft Deterrence Fund
115
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Charges for services $ - - $ 19,825 $ 19,825 $
Use of money and property - - (10) (10)
Total revenues $ - - $ 19,815 $ 19,815 $

EXPENDITURES
Current:

Public safety - - 6,625 (6,625)
Capital outlay - - 13,200 (13,200)
Total expenditures - - 19,825 (19,825)
Excess (deficiency) of revenues
over (under) expenditures $ - - $ (10) (10) $
Fund balance (deficit) - beginning (9,250)
Fund balance (deficit) - ending (9,260) $
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Police Forfeiture Fund
116
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Use of money and property $ - - $ 1,956 $ 1,956 $
Other - - - -
Total revenues - - 1,956 1,956

EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues
over (under) expenditures $ - - $ 1,956 1,956 $
Fund balance (deficit) - beginning 11,918
Fund balance (deficit) - ending 13,874 $
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Vehicle Abatement Fund
117
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Taxes $ 29,000 29,000 $ 45,606 $ 16,606 $
Use of money and property 400 400 4,849 4,449
Total revenues 29,400 29,400 50,455 21,055

EXPENDITURES
Current:

Public safety 47,014 47,014 49,933 (2,919)
Total expenditures 47,014 47,014 49,933 (2,919)
Excess (deficiency) of revenues
over (under) expenditures $ (17,614) (17,614) $ 522 18,136 $ Fund balance (deficit) - beginning 122,159
Fund balance (deficit) - ending 122,681 $
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Rental Rehabilitation Fund
118
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Use of money and property $ - - $ 2,021 $ 2,021 $
Other - - (1,416) (1,416)
Total revenues - - 605 605

EXPENDITURES
Current:

Community development - - 605 (605)
Total expenditures - - 605 (605)
Excess (deficiency) of revenues
over (under) expenditures $ - - $ - - $
Fund balance (deficit) - beginning -
Fund balance (deficit) - ending - $
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual HOME Program Fund
119
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental $ - - $ 38,555 $ 38,555 $
Use of money and property - - 15,900 15,900
Loan repayments - - 107,622 107,622
Total revenues - - 162,077 162,077

EXPENDITURES
Current:

Community development - - 162,077 (162,077)
Total expenditures - - 162,077 (162,077)
Excess (deficiency) of revenues
over (under) expenditures $ - - $ - - $
Fund balances (deficits) - beginning,
as previously presented -
Fund balances (deficits) - ending $ -
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual American Rescue Plan Act Fund
120
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental $ - - $ 8,314,510 $ 8,314,510 $
Total revenues - - 8,314,510 8,314,510

EXPENDITURES
Current:

General government 144,993 - 96,469 48,524
Capital outlay 9,284,515 - 8,218,041 1,066,474
Total expenditures 9,429,508 - 8,314,510 1,114,998
Excess (deficiency) of revenues
over (under) expenditures $ (9,429,508) - $ - 9,429,508 $ Fund balance - beginning -
Fund balance - ending - $
121

NONMAJOR CAPITAL PROJECTS FUND
The Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by proprietary funds.

The Technology Construction in Progress (CIP) Fund accounts for the capital projects expenditures related to technology.

CITY OF TULARE | JUNE 30, 2025
Nonmajor Capital Projects Fund
Balance Sheet
122
Technology
CIP
ASSETS
Current assets:

Cash and investments $ 869,537
Total assets $ 869,537

LIABILITIES
Liabilities:

Accounts payable and accrued liabilities $ -

FUND BALANCE (DEFICIT)
Committed 869,537
Total fund balance (deficit) 869,537
Total liabilities and fund balance 869,537 $
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance 123
Technology
CIP

REVENUES
Other $ -

EXPENDITURES
Current:

Community development 11,860
Capital Outlay 74,696
Total expenditures 86,556
Excess (deficiency) of revenues
over (under) expenditures (86,556)
Other financing sources:

Transfers in 77,810
Net change in fund balance (8,746)
Net position (deficit) - beginning 878,283
Fund balance (deficit) - ending $ 869,537
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual 124
Technology CIP
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Other $ - - $ - $ - $

EXPENDITURES
Current:

Community development 10,000 10,000 11,860 (1,860)
Capital outlay 79,700 - 74,696 5,004
Total expenditures 89,700 10,000 86,556 3,144
Excess (deficiency) of revenues
over (under) expenditures (10,000) (89,700) (86,556) 3,144

OTHER FINANCING SOURCES (USES)
Transfers in 77,810 77,810 77,810 -
Total other financing sources 77,810 77,810 77,810 -
Net change in fund balance $ (11,890) 67,810 $ (8,746) 3,144 $ Fund balance (deficit) - beginning 878,283
Fund balance (deficit) - ending 869,537 $
125

NONMAJOR DEBT SERVICE FUND
The Financing Authority Fund accounts for the annual debt service on the 2018 Lease Revenue Bonds. Lease revenues are derived from lease payments made by the City’s General Fund.

CITY OF TULARE | JUNE 30, 2025
Nonmajor Debt Service Fund
Balance Sheet
126
Financing
Authority
Fund
ASSETS
Cash and investments $ 1,209,655
Cash and investments with fiscal agent 1,298,473
Receivables:

Interest 2,134
Total assets $ 2,510,262

LIABILITIES
Accounts payable and accrued liabilities $ -

FUND BALANCES (DEFICITS)
Restricted 2,510,262
Total fund balances (deficits) 2,510,262
Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 2,510,262
CITY OF TULARE | JUNE 30, 2025
Nonmajor Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance 127
Financing
Authority
Fund

REVENUES
Use of money and property $ 97,225
Total revenues 97,225

EXPENDITURES
Current:

General government 4,450
Debit service:

Principal 1,350,000
Interest and fiscal charges 875,750
Total expenditures 2,230,200
Excess (deficiency) of revenues
over (under) expenditures (2,132,975)

OTHER FINANCING SOURCES (USES)
Transfers in 2,928,536
Total other financing sources (uses) 2,928,536
Net change in fund balance 795,561
Fund balances (deficits) - beginning 1,714,701
Fund balances (deficits) - ending $ 2,510,262
CITY OF TULARE | JUNE 30, 2025
Nonmajor Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual 128
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Use of money and property $ 4,400 4,400 $ 97,225 $ 92,825 $ Total revenues 4,400 4,400 97,225 92,825

EXPENDITURES
Current:

General government 8,890 8,890 4,450 4,440
Debt service:

Principal 1,350,000 1,350,000 1,350,000 -
Interest and fiscal charges 1,332,805 1,332,805 875,750 457,055 Total expenditures 2,691,695 2,691,695 2,230,200 461,495 Excess (deficiency) of revenues
over (under) expenditures (2,687,295) (2,687,295) (2,132,975) 554,320

OTHER FINANCING SOURCES (USES)
Transfers in 2,986,667 2,986,667 2,928,536 (58,131)
Total other financing sources (uses) 2,986,667 2,986,667 2,928,536 (58,131) Net change in fund balance $ 299,372 299,372 $ 795,561 496,189 $ Fund balances (deficits) - beginning, 1,714,701
Fund balances (deficits) - ending $ 2,510,262
129

NONMAJOR ENTERPRISE FUNDS
The Transit Fund accounts for the financial activity of the City’s transit system, which offers fixed route and dial-a-ride transportation services.

The Aviation Fund accounts for the financial activities of the City’s municipal airport.

CITY OF TULARE | JUNE 30, 2025
Nonmajor Enterprise Funds
Combining Statement of Net Position
130
Total
Nonmajor
Transit Aviation Enterprise Funds
ASSETS
Current assets:

Cash and investments $ - 1,568,494 $ 1,568,494 $
Receivables:

Accounts 6,262 12,897 19,159
Interest - 155,292 155,292
Taxes 1,022 - 1,022
Notes - 1,500,000 1,500,000
Leases 209,116 39,900 249,016
Total current assets 3,276,583 216,400 3,492,983
Noncurrent assets:

Nondepreciable capital assets 279,215 193,261 472,476
Depreciable capital assets, net 5,437,500 3,002,445 8,439,945 Total noncurrent assets 5,630,761 3,281,660 8,912,421
Total assets 8,907,344 3,498,060 12,405,404

DEFERRED OUTFLOWS OF RESOURCES
Pensions 4,261 1,005 5,266
Other post-employment benefits (OPEB) 117 - 117
Total deferred outflows of resources 4,378 1,005 5,383

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 71,442 59 71,501 Due to other funds 635,986 - 635,986
Unearned revenue - PTMISEA - 642,225 642,225
Unearned revenue - Other - 65,020 65,020
Total current liabilities 707,428 707,304 1,414,732
Noncurrent liabilities:

Net pension liability 20,648 - 20,648
Net other post-employment benefits (OPEB) liability 548 - 548 Total noncurrent liabilities 21,196 - 21,196
Total liabilities 728,624 707,304 1,435,928

DEFERRED INFLOWS OF RESOURCES
Pensions 117 - 117
Other post-employment benefits (OPEB) 413 - 413
Leases 150,777 23,511 174,288
Total deferred inflows of resources 151,307 23,511 174,818

NET POSITION (DEFICIT)
Net investment in capital assets 3,281,660 5,630,761 8,912,421 Unrestricted 2,546,773 (659,153) 1,887,620
Total net position $ 2,622,507 8,177,534 $ 10,800,041 $ CITY OF TULARE | JUNE 30, 2025
Nonmajor Enterprise Funds
Combining Statement of Revenues, Expenses, and Changes in Net Position 131
(Previously
nonmajor
enterprise) Total Nonmajor
Development Enterprise
Transit Services Aviation Funds
Operating revenues:

Charges for services $ - 45,426 $ 126,953 $ 172,379 $
Other revenues - - 20 20
Total operating revenues - 45,426 126,973 172,399
Operating expenses:

Personnel services - (35,474) 12,152 (23,322)
Maintenance and supplies 13,703 - 353,333 367,036
Depreciation and amortization 755,388 - 163,405 918,793 Total operating expenses 733,617 - 528,890 1,262,507
Operating income (loss) - (688,191) (401,917) (1,090,108) Nonoperating revenues (expenses):

Use of money and property 221,181 - 13,223 234,404
Total nonoperating revenues (expenses) 221,181 - 13,223 234,404 Income (loss) before transfers and capital contributions - (467,010) (388,694) (855,704) Transfers in - - 50,000 50,000
Change in net position (deficit) - (467,010) (338,694) (805,704) Net position (deficits) - beginning,
as previously presented 8,644,544 (2,018,670) 2,960,358 9,586,232 Restatement (see note 15) - - 843 843
Change within financial reporting entity (major to
nonmajor fund) 2,018,670 - - 2,018,670
Net position (deficit) - beginning, restated 8,644,544 - 2,961,201 11,605,745 Net position (deficit) - ending $ - 8,177,534 $ 2,622,507 $ 10,800,041 $ CITY OF TULARE | JUNE 30, 2025
Nonmajor Enterprise Funds
Combining Statement of Cash Flows
132
Business-Type Activities - Enterprise Funds
Total Nonmajor
Enterprise
Transit Aviation Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 107,572 8,707 $ 116,279 $ Cash payments to employees (12,082) - (12,082)
Cash payments to suppliers (14,758) (300,975) (315,733) Net cash provided by (used for) operating activities (205,485) (6,051) (211,536)

CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES Cash received from operating grants 28,978 - 28,978
Cash payments to (from) other funds (short-term borrowings) 143,916 - 143,916 Cash received from transfers from other funds 50,000 - 50,000 Net cash provided by (used for) noncapital and related financing activities 222,894 - 222,894

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Cash received from capital grants - 2,896 2,896
Cash payments for the acquisition of capital assets (46,727) - (46,727) Net cash provided by (used for) capital and related financing activities (46,727) 2,896 (43,831)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 13,223 70,251 83,474
Rental property 16,095 43,709 59,804
Net cash provided by (used for) investing activities 29,318 113,960 143,278 Net increase (decrease) in cash and cash equivalents - 110,805 110,805 Cash and cash equivalents - beginning - 1,457,689 1,457,689 Cash and cash equivalents - ending $ 1,568,494 - $ 1,568,494 $ Reconciliation of operating income (loss) to net cash provided by (used for) operating activities:

Operating income (loss) (688,191) $ (401,917) $ (1,090,108) $ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:

Depreciation and amortization 755,388 163,405 918,793
Changes in assets and liabilities:
(Increase) decrease in consumer receivables (8,506) (3,050) (11,556) (Increase) decrease in prepaids - 28 28
(Increase) decrease in pension related deferred outflows 12,924 2,565 15,489 of resources
Increase (decrease) accounts payable (1,055) 52,358 51,303 Increase (decrease) in net pension liability (46,778) (2,220) (48,998) Increase (decrease) in pension related deferred inflows of resources (29,833) (16,654) (46,487)
Net cash provided by (used for) operating activities $ (6,051) (205,485) $ (211,536) $ Reconciliation of cash and cash equivalents per statement of cash flows to the statement of net position:

Cash and investments 1,568,494 $ - $ 1,568,494 $
Cash and investments with fiscal agents - - -
Cash and cash equivalents per statement of cash flows $ 1,568,494 - $ 1,568,494 $ 133

NONMAJOR INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services provided by one department of the City to another on a cost-reimbursement basis.

The Fleet Maintenance Fund accounts for the costs of maintaining and replacing City vehicles and equipment. Costs are funded by charges to using departments based upon actual usage and rental rates.

The Employee Welfare Fund accounts for the cost of the City's health insurance program. Costs are funded by charges to departments based upon the number of employees and by employee contributions for department coverage.

The Workers' Compensation Fund accounts for the cost of the City's self-insured workers' compensation program. Costs are funded by charges to departments based upon standard workers' compensation rates.

The General Insurance Fund accounts for the cost of the City's self-insured liability and fire insurance program. Costs are funded by charges to departments based upon a combination of number of employees and square footage of buildings factors.

The Unemployment Insurance Fund accounts for the cost of unemployment claims paid and is funded by the General Fund.

The Purchasing Fund accounts for the cost of purchases of inventory items and the department charges for issuance of those items.

The Surface Water Management Fund accounts for the cost of flood control, water recharge, capacity enhancement, and pollution control. Costs are funded by the General Fund, Water Fund, and Sewer Fund contributions.

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Internal Service Funds Combining Statement of Net Position 134
Fleet Employee Workers' General Unemployment Surface Water Maintenance Welfare Compensation Insurance Insurance Purchasing Management Total ASSETSCurrent assets:

Cash and investments $ 5,967,986 8,140,986 $ 13,660,567 $ - $ 14,007 $ 75,735 $ 4,285,719 $ 32,145,000 $ Cash and investments with fiscal agent - - - - - - - -
Receivables:

Accounts 21,826 1,029 - - - - - 22,855
Interest 10,528 13,548 24,098 - - - 7,560 55,734
Taxes - - - - - - - -
Intergovernmental - - - - - - - -
Inventory - - - - - 487,789 - 487,789
Total current assets 6,000,340 8,155,563 13,684,665 - 14,007 563,524 4,293,279 32,711,378 Noncurrent assets:

Capital assets:

Nondepreciable:

Land - 75,000 - - - - - 75,000
Depreciable:

Buildings - 6,187,770 - - - - - 6,187,770
Improvements other than buildings - 1,709,932 - - - - - 1,709,932 Machinery and equipment - 32,982,379 - - - - 9,821 32,992,200 Accumulated depreciation and amortization - (25,316,154) - - - - (8,067) (25,324,221) Total noncurrent assets 15,638,927 - - - - - 1,754 15,640,681 Total assets 23,794,490 6,000,340 13,684,665 - 14,007 563,524 4,295,033 48,352,059

DEFERRED OUTFLOWS OF RESOURCES
Pensions 18,093 285,515 29,718 25,009 - - 42,905 401,240 Other post-employment benefits (OPEB) 441 7,460 768 627 - - 1,493 10,789 Total deferred outflows of resources 18,534 292,975 30,486 25,636 - - 44,398 412,029 LIABILITIESCurrent liabilities:

Accounts payable and accrued liabilities 67,146 283,226 5,502 4,982 13,583 285,254 16,794 676,487 Due to other funds - - - 5,802,846 - 362,444 - 6,165,290 Compensated absences - current 78 30,041 366 80 - - 14,545 45,110 Unearned revenue - other 258,008 - - - - - - 258,008
Total current liabilities 325,232 313,267 5,868 5,807,908 13,583 647,698 31,339 7,144,895 Noncurrent liabilities:

Compensated absences payable 111 43,052 524 114 - - 20,845 64,646 Insurance claims payable - - 3,623,254 500,962 - - - 4,124,216 Net OPEB liability 2,059 34,852 3,589 2,932 - - 6,975 50,407 Net pension liability 86,723 1,383,446 144,539 119,761 - - 198,225 1,932,694 Total noncurrent liabilities 1,461,350 88,893 3,771,906 623,769 - - 226,045 6,171,963 Total liabilities 414,125 1,774,617 3,777,774 6,431,677 13,583 647,698 257,384 13,316,858

DEFERRED INFLOWS OF RESOURCES
Pensions 493 7,871 822 681 - - 1,128 10,995
Other post-employment benefits (OPEB) 1,553 26,298 2,708 2,212 - - 5,263 38,034 Total deferred inflows of resources 2,046 34,169 3,530 2,893 - - 6,391 49,029 NET POSITION (DEFICIT)Net investments in capital assets - 15,638,927 - - - - 1,754 15,640,681 Unrestricted 5,602,703 6,639,752 9,933,847 (6,408,934) 424 (84,174) 4,073,902 19,757,520 Total net position (deficit) $ 5,602,703 22,278,679 $ 9,933,847 $ (6,408,934) $ 424 $ (84,174) $ 4,075,656 $ 35,398,201 $ CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Net Position 135
Fleet Employee Workers' General Unemployment Surface Water Maintenance Welfare Compensation Insurance Insurance Purchasing Management Total Operating revenues:

Departmental charges $ 3,854,475 3,244,939 $ 4,997,081 $ 1,994,463 $ - $ 2,043,942 $ - $ 16,134,900 $ Employee contributions 1,413,477 - - - - - - 1,413,477
Total operating revenues 5,267,952 3,244,939 4,997,081 1,994,463 - 2,043,942 - 17,548,377 Operating expenses:

General administration 52,157 5 3,722 23,752 - - 258,111 337,747Personnel services 46,367 748,284 92,705 66,244 - - 167,927 1,121,527 Contractual services - 247,090 - - - - - 247,090
Equipment usage and operation - 343,763 - - - 2,282,419 - 2,626,182 Insurance 6,079,636 390,488 5,060,811 4,499,219 43,354 - - 16,073,508 Depreciation and amortization - 2,151,749 - - - - 1,403 2,153,152 Total operating expenses 6,178,160 3,881,379 5,157,238 4,589,215 43,354 2,282,419 427,441 22,559,206 Operating income (loss) (910,208) (636,440) (160,157) (2,594,752) (43,354) (238,477) (427,441) (5,010,829)Nonoperating revenues (expenses):

Use of money and property 238,168 341,051 529,056 - 472 - 171,296 1,280,043 Grant revenue - 136,525 - - - - - 136,525
Other income (expense) - miscellaneous 44 12,379 - - - - - 12,423 Gain (loss) on sale of assets - 71,765 - - - - - 71,765 Total nonoperating revenues (expenses) 238,212 561,720 529,056 - 472 - 171,296 1,500,756 Income (loss) before transfers (74,720) (671,996) 368,899 (2,594,752) (42,882) (238,477) (256,145) (3,510,073) Transfers in - - - - 43,306 - 1,425,800 1,469,106Transfers out - - - - - - (1,250,000) (1,250,000)Change in net position (deficit) (671,996) (74,720) 368,899 (2,594,752) 424 (238,477) (80,345) (3,290,967)Net position (deficit) - beginning 22,372,281 6,276,133 9,566,882 (3,812,244) - 154,303 4,156,001 38,713,356Prior period adjustments (1,434) (18,882) (1,934) (1,938) - - - (24,188)Net position (deficit) - beginning, restated 22,353,399 6,274,699 9,564,948 (3,814,182) - 154,303 4,156,001 38,689,168Net position (deficit) - ending $ 5,602,703 22,278,679 $ 9,933,847 $ (6,408,934) $ 424 $ (84,174) $ 4,075,656 $ 35,398,201 $ CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Internal Service Funds Combining Statement of Cash Flows 136
Fleet Employee Workers' General Unemployment Surface Water Maintenance Welfare Compensation Insurance Insurance Purchasing Management Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from interfund services provided $ 5,276,650 3,398,620 $ 4,997,081 $ 1,994,463 $ - $ 2,119,676 $ - $ 17,786,490 $ Cash payments to employees (80,677) (754,984) (91,980) (80,699) - - (200,892) (1,209,232) Cash payments to suppliers (107,326) (64,236) (1,056) (21,166) (7,639) 224,163 (254,177) (231,437) Cash payments for reported claims (6,079,636) (734,251) (2,882,432) (3,998,257) (43,354) (2,282,419) - (16,020,349) Net cash provided by (used for) operating activities 1,845,149 (990,989) 2,021,613 (2,105,659) (50,993) 61,420 (455,069) 325,472

CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES Cash received from operating grants - 788 - - - - - 788 Cash payments to (from) other funds (short-term borrowings) - (193,092) - 2,061,134 (32,268) 14,315 - 1,850,089 Cash received from transfers from other funds - - - - 43,306 - 1,425,800 1,469,106 Cash payments for transfers to other funds - - - - - - (1,250,000) (1,250,000) Cash received from other revenue 44 12,379 - - - - - 12,423 Net cash provided by (used for) noncapital and related financing activities 44 (179,925) - 2,061,134 11,038 14,315 175,800 2,082,406

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Cash received from capital grants - 136,525 - - - - - 136,525 Cash payments for the acquisition of capital assets - (3,916,585) - - - - - (3,916,585) Cash received from the sale of capital assets - 71,765 - - - - - 71,765 Net cash provided by (used for) capital and related financing activities - (3,708,295) - - - - - (3,708,295)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 247,692 350,788 538,175 - 472 - 176,330 1,313,457 Net cash provided by (used for) investing activities 247,692 350,788 538,175 - 472 - 176,330 1,313,457Net increase (decrease) in cash and cash equivalents (743,253) (1,692,283) 2,559,788 (44,525) (39,483) 75,735 (102,939) 13,040 Cash and cash equivalents - beginning 9,833,269 6,711,239 11,100,779 44,525 53,490 - 4,388,658 32,131,960 Cash and cash equivalents - ending $ 8,140,986 5,967,986 $ 13,660,567 $ - $ 14,007 $ 75,735 $ 4,285,719 $ 32,145,000 $ CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Internal Service Funds Combining Statement of Cash Flows (Continued) 137
Fleet Employee Workers' General Unemployment Surface Water Maintenance Welfare Compensation Insurance Insurance Purchasing Management Total Reconciliation of operating income (loss) to net cash provided by (used for) operating activities:

Operating income (loss) (636,440) $ (910,208) $ (160,157) $ (2,594,752) $ (43,354) $ (238,477) $ (427,441) $ (5,010,829) $ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:

Depreciation and amortization 2,151,749 - - - - - 1,403 2,153,152 Changes in assets and liabilities:
(Increase) decrease in consumer receivables 153,681 8,698 - - - 75,734 - 238,113 (Increase) decrease in pension related deferred outflows 170,704 12,762 16,488 18,039 - 59,341 46,774 324,108 of resources(Increase) decrease in prepaid 1,102 191 179 253 - - 292 2,017 Increase (decrease) accounts payable 182,859 (55,169) 2,666 2,586 (7,639) - 3,934 129,237 Increase (decrease) unearned revenue - (24,392) - - - 164,822 - 140,430 Increase (decrease) in compensated absences (11,374) (2,640) (3,069) (3,754) - - 35,390 14,553 Increase (decrease) insurance claims payable - - 2,178,379 500,962 - - - 2,679,341 Increase (decrease) in net pension liability (150,525) (18,798) (10,957) (26,990) - - (112,505) (319,775) Increase (decrease) in pension related deferred inflows of resources (16,607) (1,433) (1,916) (2,003) - - (2,916) (24,875) Net cash provided by (used for) operating activities $ 1,845,149 (990,989) $ 2,021,613 $ (2,105,659) $ (50,993) $ 61,420 $ (455,069) $ 325,472 $ Reconciliation of cash and cash equivalents per statement of cash flows to the statement of net position:

Cash and investments 8,140,986 $ 5,967,986 $ 13,660,567 $ - $ 14,007 $ 75,735 $ 4,285,719 $ 32,145,000 $ Cash and investments with fiscal agents - - - - - - - - Cash and cash equivalents per statement of cash flows $ 8,140,986 5,967,986 $ 13,660,567 $ - $ 14,007 $ 75,735 $ 4,285,719 $ 32,145,000 $ CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Schedule of Expenditures by Department
Budgetary Level of Control – Budget and Actual (GAAP Basis) General Fund
138
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

EXPENDITURES
General government:

City council $ 136,800 136,800 $ 80,598 $ 56,202 $
City manager 796,881 796,881 759,624 37,257
Finance 1,909,204 1,909,204 1,963,112 (53,908)
Economic development 408,603 408,603 519,528 (110,925)
CIP administrative 5,829,601 932,691 1,068,750 4,760,851 IT division 1,219,581 1,050,262 879,318 340,263
Personnel 638,371 638,371 631,634 6,737
Non-departmental 1,944,044 1,969,684 1,348,635 595,409
Animal control 1,161,670 1,161,670 1,337,278 (175,608)
Total general government 9,004,166 14,044,755 8,588,477 5,456,278 Public safety:

Police 17,491,803 17,491,803 17,852,990 (361,187)
Fire code enforcement 12,009,024 11,956,404 10,478,038 1,530,986 Total public safety 29,500,827 29,448,207 28,331,028 1,169,799 Public works:

Streets 2,948,035 2,958,352 3,144,940 (196,905)
Storm drains 463,140 56,490 - 463,140
Total public works 3,014,842 3,411,175 3,144,940 266,235 Community development:

Development services 6,495,340 4,648,340 4,300,487 2,194,853 Parking and business improvement 86,100 86,100 85,602 498 Downtown parking 117,050 117,050 112,453 4,597
Dangerous building abatement 1,460 1,460 26,957 (25,497) Total community development 4,852,950 6,699,950 4,525,499 2,174,451 Community services:

Parks 3,898,399 3,748,399 3,897,215 1,184
Community services 4,337,329 4,352,329 5,032,095 (679,766) Total community services 8,085,728 8,250,728 8,929,310 (678,582) Library and cultural 1,775,196 1,775,196 1,676,083 99,113 Capital outlay 3,488,443 38,349,894 24,347,104 14,002,790 Debt service:

Principal 64,637 54,320 258,850 (194,213)
Interest and fiscal charges 432,984 - 535,183 (102,199) Total debt service 497,621 54,320 794,033 (296,412)
Transfers out 5,934,556 7,214,396 6,438,615 775,781
Total General Fund expenditures $ 109,744,542 65,658,408 $ 86,775,089 $ 22,969,453 $ CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Expenditures – Budget and Actual
Measure I Sales Tax Revenues and Related Expenditures
139
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Measure I sales tax $ 8,450,000 8,450,000 $ 8,387,385 $ (62,615) $

EXPENDITURES
Measure I - police 5,819,655 5,819,655 6,515,786 (696,131) Measure I - fire 2,779,963 2,779,963 2,686,384 93,579
Measure I - code enforcement 146,518 146,518 141,653 4,865 Measure I - streets 250,000 250,000 - 250,000
Total expenditures 8,996,136 8,996,136 9,343,823 (347,687) Excess (deficiency) of revenues
over (under) expenditures $ (546,136) (546,136) $ (956,438) $ (410,302) $ Note: Amounts reported here are included in the City's general fund.

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Long-Term Debt Recorded in Private Purpose Trust Fund
140
On February 16, 2017, the former Redevelopment Agency participated in issuing its Merged Tulare Redevelopment Serial Tax Allocation Bonds Series A (Tax-Exempt). Series A bonds totaling $7,915,000 are payable in amounts ranging from $13,400 to $752,900 semiannually on August 1 and February 1 commencing August 1, 2017, through August 1, 2040, and bear interest at rates from 2.00% to 5.00%. The transaction resulted in a reduction of $2,218,010 in future debt service payments. The economic gain was $646,754. At June 30, 2025, the outstanding balance, including the related unamortized bond premium and discount was: $ 6,810,663 On February 16, 2017, the former Redevelopment Agency participated in issuing its Merged Tulare Redevelopment Serial Tax Allocation Bonds Series B (Tax-Exempt). Series A bonds totaling $14,015,000 are payable in amounts ranging from $14,130 to $1,268,902 semiannually on August 1 and February 1 commencing August 1, 2017, through August 1, 2040, and bear interest at rates from 2.00% to 4.71%. The transaction resulted in a reduction of $6,397,531 in future debt service payments. The economic gain was $1,292,184. At June 30, 2025, the outstanding balance, including the related unamortized bond premium and discount, was: $ 6,650,000 On June 30, 2010, the former Redevelopment Agency participated in issuing its Merged Tulare Redevelopment Projects Serial Tax Allocation Bonds Series A (Tax-Exempt). Series A bonds totaling $8,605,000 were payable in amounts ranging from $45,562 to $955,156 semiannually on August 1 and February 1, commencing August 1, 2010, through August 1, 2040, and bore interest at rates from 6.00% to 6.25%. Term Bonds of $2,245,000 were due August 1, 2030, at interest rate 6.00%. Term Bonds of $2,470,000 were due August 1, 2035, at interest rate 6.125%. Term Bonds of $3,890,000 were due August 1, 2040, at interest rate 6.25%. The former Redevelopment Agency paid off the remaining balance by issuing its Merged Tulare Redevelopment Serial Tax Allocation Bonds Series A and B (Tax-Exempt).

On June 30, 2010, the former Redevelopment Agency participated in issuing its Merged Tulare Redevelopment Projects Serial Tax Allocation Bonds Series B (Taxable). Series B bonds totaling $4,915,000 were payable in amounts ranging from $29,622 to $640,035 semiannually on August 1, 2023, and bore interest at rates from 4.125% to 7.70%. Term Bonds of $350,000 were due August 1, 2023, at interest rate 4.125%. Term Bonds of $365,000 were due August 1, 2014, at interest rate 4.50%. Term Bonds of $380,000 were due August 1, 2015, at interest rate 5.00%. Term Bonds of $3,820,000 were due August 1, 2023, at interest rate 7.70%. The former Redevelopment Agency paid off the remaining balance by issuing Merged Tulare Redevelopment Serial Tax Allocation Bonds Series A and B (Tax-Exempt).

On June 30, 2010, the former Redevelopment Agency participated in issuing its Merged Tulare Redevelopment Projects Serial Tax Allocation Bonds Series C (Taxable). Series C bonds totaling $9,830,000 were payable in amounts ranging from $68,853 to $734,963 semiannually on August 1 and February 1, commencing August 1, 2010, through August 1, 2040, and bore interest at rates from 5.25% to 8.50%. Term Bonds of $445,000 were due August 1, 2015, at interest rate

5.25%. Term Bonds of $1,390,000 were due August 1, 2020, at interest rate 7.50%. Term Bonds of $3,040,000 were due August 1, 2030, at interest rate 8.25%. Term Bonds of $4,955,000 were due August 1, 2040, at interest rate 8.50%. The former Redevelopment Agency paid off the remaining balance by issuing its Merged Tulare Redevelopment Serial Tax Allocation Bonds Series A and B (Tax-Exempt).

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Long-Term Debt Recorded in Private Purpose Trust Fund
(Continued)
141
y p gy p
date back since inception, and were payable upon demand, with interest accruing at 8% per annum on the unpaid balance. As of June 30, 2009, the remaining balance was approximately $66 million. On June 29, 2010, the former Redevelopment Agency and the City reached an amended repayment agreement. The City forgave $44,258,915 to reduce the outstanding principal balance to the City to $22,052,848. In addition, the former Redevelopment Agency repaid $6,000,000 and reduced the balance to the amount of $3,302,059 as of June 30, 2011.

The former Redevelopment Agency would make annual payments to the City with the annual interest rate at 3%. Beginning in fiscal year 2010-11, the former Redevelopment Agency was required to make annual payments of interest only to the City. This agreement was to continue through fiscal year 2024-25 and commencing in fiscal year 2025-26, payments of principal and interest were to be due until all amounts due were paid in full. However, in 2013, after the dissolution of the former Redevelopment Agency and when the State took control, the State Controller's Office issued a written finding in regards to an accelerated loan payment made by the City in December 3011, after the effective AB 1X 26 and ordered the City to return $1,634,962 in property taxes to the Successor Agency which increased the advance to $4,937,021. Included in the $15,991,111 ending balance as of June 30, 2025, is also $465,736 in property to be sold to the County Superintendent of Schools. At June 30, 2025, the outstanding balance was: $ 14,205,394
The annual requirements to amortize debt payable are as follows in the Private-Purpose Trust Fund:

Year Ending
June 30
Allocation Bonds
Series A
Allocation Bonds
Series B
From the
Primary Govt.
2026 434,500 $ 562,888 14,205,394 $
2027 442,600 567,393 -
2028 458,875 571,033 -
2029 477,875 568,881 -
2030 495,375 575,803 -
2031-2035 2,923,650 2,969,698 -
2036-2040 3,491,500 3,072,287 -
2041 683,400 614,130 -
9,502,113 9,407,775 14,205,394
Less Interest (2,682,774) (2,852,113) -
Plus Unamortized Premium 85,662 - -
Total 6,810,663 $ 6,650,000 $ 14,205,394 $
Fiduciary Fund - Private Purpose Trust Fund
142

STATISTICAL SECTION
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Net Position by Component Last Ten Fiscal Years
143
2016 2017 2018 2019 2020 2021 (Restated) 2022 2023 2024 2025 Governmental Activities:

Net Investment in Capital Assets 211,461,105 $ 211,265,222 $ 208,315,732 $ 217,579,213 $ 233,031,562 $ 98,357,048 $ 99,554,621 $ 139,655,205 $ 174,863,208 $ 178,020,818 $ Restricted 1,198,432 1,168,992 4,006,738 4,109,899 1,753,750 1,750,803 1,186,861 - 55,921,884 71,788,968 Unrestricted 44,306,438 47,705,937 50,782,588 46,588,528 29,301,183 32,038,570 43,183,619 84,251,295 22,193,218 23,086,838 Total Business-Type ActivitiesNet Position 256,965,975 $ 260,140,151 $ 263,105,058 $ 268,277,640 $ 264,086,495 $ 132,146,421 $ 143,925,101 $ 223,906,500 $ 252,978,310 $ 272,896,624 $ Business-Type Activities:

Net Investment in Capital Assets 80,626,706 $ 79,725,820 $ 66,846,189 $ 90,621,714 $ 88,766,270 $ 104,023,400 $ 112,236,168 $ 122,335,466 $ 131,470,223 $ 131,529,276 $ Restricted 8,572,997 7,675,730 13,006,601 13,006,601 - - - - - - Unrestricted 4,481,990 11,706,869 24,722,430 20,856,181 70,265,299 77,388,968 84,144,129 87,694,544 101,127,628 116,658,703 Total Business-Type ActivitiesNet Position 93,681,693 $ 99,108,419 $ 104,575,220 $ 124,484,496 $ 159,031,569 $ 181,412,368 $ 196,380,297 $ 210,030,010 $ 232,597,851 $ 248,187,979 $ Primary Government:

Net Investment in Capital Assets 292,087,811 $ 290,991,042 $ 275,161,921 $ 308,200,927 $ 321,797,832 $ 202,380,448 $ 211,790,789 $ 261,990,671 $ 306,333,431 $ 309,550,094 $ Restricted 9,771,429 8,844,722 17,013,339 17,116,500 1,753,750 1,750,803 1,186,861 - 55,921,884 71,788,968 Unrestricted 48,788,428 59,412,806 75,505,018 67,444,709 99,566,482 109,427,538 127,327,748 171,945,839 123,320,846 139,745,541 Total Primary GovernmentNet Position 350,647,668 $ 359,248,570 $ 367,680,278 $ 392,762,136 $ 423,118,064 $ 313,558,789 $ 340,305,398 $ 433,936,510 $ 485,576,161 $ 521,084,603 $ Source: Annual Comprehensive Financial ReportSource: Statement of Net Position CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Changes in Net Position Last Ten Fiscal Years
144
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses:

Governmental Activities:

General Government 4,975,254 $ 2,475,077 $ 5,805,716 $ 4,703,423 $ 5,829,647 $ 6,365,027 $ 6,713,368 $ 15,851,263 $ 8,145,106 $ 19,464,814 $ Intergovernmental 2,400 - - - - - - 10,575 4,325 -
Public Safety 18,978,334 22,434,933 27,123,518 27,945,951 30,094,565 31,438,950 22,486,173 31,723,979 37,466,084 40,506,312 Public Works 10,078,440 2,275,960 2,452,434 2,425,727 2,672,177 2,687,512 3,831,706 3,046,291 2,769,951 3,199,686 Community Development 10,236,915 5,682,852 8,126,574 5,905,476 2,847,502 10,585,221 12,010,940 2,920,799 7,762,574 5,556,610 Community Services 5,749,780 5,927,569 6,834,186 6,510,435 6,687,290 6,484,755 7,658,997 8,483,177 9,582,490 10,917,265 Library and Cultural 5,952,134 3,128,200 3,083,550 2,956,417 1,885,453 3,918,457 4,379,160 1,756,273 2,040,796 2,402,152 Interest on Long-Term Debt 1,488,132 1,450,221 598,884 1,088,411 1,472,373 1,311,580 914,972 878,845 1,450,913 1,251,902 Total Governmental Activities Expenses 57,461,389 43,374,812 54,024,862 51,535,840 51,489,007 62,791,502 57,995,316 64,671,202 69,222,239 83,298,741 Business-Type Activities:

Aviation 410,647 303,045 421,384 360,020 378,379 408,388 392,742 457,662 499,940 568,657 Transit 3,123,964 3,526,009 3,664,540 3,935,325 3,970,662 4,087,217 2,505,212 573,472 823,690 733,617 Community and Development 1,573,507 2,275,967 3,329,780 3,266,224 2,508,214 2,829,135 2,987,161 3,821,392 4,798,302 - Water 6,784,595 8,148,054 8,587,085 9,126,304 10,630,882 10,492,761 10,846,789 11,405,944 12,581,427 12,465,118 Solid Waste 7,283,313 7,355,336 8,288,359 9,021,964 9,382,570 10,035,760 9,637,100 11,510,574 11,779,026 12,434,390 Sewer 29,281,564 30,471,856 28,290,003 28,648,005 28,308,670 25,308,216 24,689,685 24,933,539 27,645,793 29,844,582 Total Business-Type Activities Expenses 48,457,590 52,080,267 52,581,151 54,357,842 55,179,377 53,161,477 51,058,689 52,702,583 58,128,178 56,046,364 Total Primary Government Expenses 105,918,979 95,455,079 106,606,013 105,893,682 106,668,384 115,952,979 109,054,005 117,373,785 127,350,417 139,345,105 Program Revenues:

Governmental Activities:

Charges for Services:

General Government 455,588 264,526 670,136 820,542 1,105,565 614,639 856,211 7,347,522 7,965,620 9,290,136 Intergovernmental 220 - 56,396 2,428 191 724 1,118 - - - Public Safety 1,737,861 2,397,756 3,302,341 4,953,595 5,708,283 3,039,476 2,871,591 1,041,334 761,455 637,784 Public Works 922,891 243,245 298,589 429,975 506,854 259,825 489,327 74,991 93,956 52,565 Community Development 937,402 607,361 989,426 1,046,783 540,067 1,023,365 1,533,854 1,211,150 1,507,175 3,991,000 Community Services 526,512 633,515 832,075 1,154,015 1,268,433 626,938 978,090 2,001,805 2,340,647 2,578,185 Library and Cultural 545,042 334,330 375,428 524,044 357,629 378,831 559,239 363,583 412,966 341,197 Operating Grants and Contributions 1,782,930 959,415 3,189,647 1,155,276 3,328,130 2,252,847 4,016,675 - 4,807,245 5,389,637 Capital Grants and Contributions 7,918,523 - - - - - - 7,031,876 15,365,829 3,639,093 Total Governmental Activities Program Revenues 14,826,969 5,440,148 9,714,038 10,086,658 12,815,152 8,196,645 11,306,105 19,072,261 33,254,893 25,919,597 Business-Type Activities:

Charges for Services:

Aviation 121,172 121,108 125,042 112,361 111,510 112,193 103,975 112,088 124,507 126,973 Transit 1,615,709 1,684,809 1,546,582 1,739,886 1,840,650 113,645 (400) 44,971 45,425 45,426 Community and Development 1,963,243 2,173,788 2,257,858 2,148,526 2,222,616 2,445,132 2,992,396 3,185,514 4,022,166 - Water 8,014,181 10,611,372 12,295,297 14,770,030 14,150,290 15,188,361 14,865,402 14,175,049 14,526,463 14,964,936 Solid Waste 8,723,653 8,700,096 8,990,099 9,606,652 10,381,634 10,876,931 11,541,701 12,260,531 12,367,580 12,491,252 Sewer 29,436,905 30,349,080 32,200,444 33,864,373 35,442,110 37,434,359 37,535,687 35,188,578 37,640,332 37,997,455 Operating Grants and Contributions 837,623 3,721,134 1,697,847 2,636,741 5,119,938 3,996,986 520,616 147,199 806,306 174,232 Capital Grants and Contributions - - - - - - - 942,334 1,126,406 2,031,182 Total Business-Type Activities Program Revenues 50,712,486 57,361,387 59,113,169 64,878,569 69,268,748 70,167,607 67,559,377 66,056,264 70,659,185 67,831,456 Total Primary Government Program Revenues 65,539,455 62,801,535 68,827,207 74,965,227 82,083,900 78,364,252 78,865,482 85,128,525 103,914,078 93,751,053 Net Revenues (Expenses):

Governmental Activities (42,634,420) (37,934,664) (44,310,824) (41,449,182) (38,673,855) (54,594,857) (46,689,211) (45,598,941) (35,967,346) (57,379,144) Business-Type Activities 2,254,896 5,281,120 6,532,018 10,520,727 14,089,371 17,006,130 16,500,688 13,353,681 12,531,007 11,785,092 Total Net Revenues (Expenses) (40,379,524) $ (32,653,544) $ (37,778,806) $ (30,928,455) $ (24,584,484) $ (37,588,727) $ (30,188,523) $ (32,245,260) $ (23,436,339) $ (45,594,052) $ Source: Annual Comprehensive Financial ReportSource: Statement of Net Position CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Changes in Net Position Last Ten Fiscal Years (Continued) 145
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Revenue and Other Changes in Net Position:

Governmental Activities:

Taxes:

Sales Tax/Gas Tax/Measure R Taxes 26,818,588 $ 18,074,636 $ 19,519,868 $ 20,118,217 $ 21,619,073 $ 24,252,291 $ 28,854,256 $ 24,282,444 $ 24,875,477 $ 24,635,222 $ Property Tax 4,780,267 5,181,172 5,553,078 5,884,742 6,194,371 6,664,504 6,914,707 7,378,064 8,092,353 8,844,309Utility 5,622,124 5,568,461 5,961,321 5,882,716 5,737,809 6,272,932 6,597,024 9,541,261 8,582,573 11,341,975Motor vehicle-in-lieu 2,219,734 2,326,641 2,465,042 2,594,469 2,544,058 2,708,877 3,178,939 6,920,240 7,410,768 8,115,041Other - - - - - - - 7,270,764 7,719,372 7,716,392 Franchise 4,882,755 5,107,399 5,349,628 5,572,329 5,895,136 6,186,789 6,523,262 1,584,502 1,683,824 1,345,499 Rental income 726,940 740,839 799,940 788,765 842,249 873,710 948,057 154,677 162,833 270,276 Investment earnings 711,185 140,642 454,925 3,155,785 1,850,871 (6,098) (3,824,988) 3,176,975 3,009,724 3,583,204Miscellaneous Revenues 28,876,448 4,213,419 4,585,416 5,444,536 4,446,620 8,455,405 9,111,514 293,000 2,250 - American Rescue Plan Act 3,553,050 (563,004) 8,314,510 Specific Programs - - - - - - - 1,478,957 2,117,641 1,418,023 Transfers (1,328,598) 570,630 4,334,254 (2,306,639) (14,647,477) 653,093 224,157 270,273 (5,196,278) 6,304,161 Total Governmental Activities 73,309,443 41,923,839 49,023,472 47,134,920 34,482,710 56,061,503 58,526,928 61,788,153 62,013,587 81,888,612 Business-Type Activities:

Investment Income (Loss) 588,133 820,923 1,444,614 2,600,791 1,846,765 (172,985) (4,361,145) (400,461) 3,856,291 4,868,863 Gain (Loss) on Sale of Capital Assets - (71,322) - - - (173,046) - - 1,200Miscellaneous - - - 4,481,519 3,963,460 6,386,130 2,958,688 648,333 1,269,979 144,622 Transfers 2,678,598 (570,630) (662,772) 2,306,239 14,647,477 (665,430) (347,685) (270,273) 5,196,278 (6,304,161) Total Business-Type Activities 3,266,731 178,971 781,842 9,388,549 20,457,702 5,374,669 (1,750,142) (22,401) 10,323,748 (1,290,676) Total Primary Government 76,576,174 42,102,810 49,805,314 56,523,469 54,940,412 61,436,172 56,776,786 61,810,554 51,689,839 80,597,936 Special Items:

Other - - - (513,556) - (138,047) - - - -Extraordinary Gain (Loss) on Dissolution of Lawsuit Settlement 6,276,568 - - - - - (59,037) - - - Total Special Items 6,276,568 - - (513,556) - (138,047) (59,037) - - - Changes in Net Position:

Governmental Activities 36,951,591 3,989,175 4,712,648 5,172,182 (4,191,145) 1,328,599 11,778,680 16,189,212 26,046,241 24,509,468 Business-Type Activities 5,521,627 5,460,091 7,313,860 19,909,276 34,547,073 22,380,799 14,750,546 13,331,280 22,854,755 10,494,416 Total Primary Government 42,473,218 $ 9,449,266 $ 12,026,508 $ 25,081,458 $ 30,355,928 $ 23,709,398 $ 26,529,226 $ 29,520,492 $ 48,900,996 $ 35,003,884 $ Source: Annual Comprehensive Financial ReportSource: Statement of Net Position CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Fund Balances of Governmental Funds (Modified Accrual Basis of Accounting) Last Ten Fiscal Years 146
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Fund:

Nonspendable - $ - $ - $ - $ - $ - $ - $ - $ 10,001,471 $ 9,178,861 $ 8,833,395 $ Restricted 1,431,320 5,268,406 3,210,570 8,255,722 - - - - - 12,899,144 12,899,144 Committed 21,840,982 46,394,799 47,275,064 47,558,487 53,360,296 36,993,740 42,493,097 44,165,268 6,485,536 9,008,600 5,799,645 Unassigned - - - - - - - - 47,338,311 27,326,555 21,218,447 Total General Fund 23,272,302 $ 51,663,205 $ 50,485,634 $ 55,814,209 $ 53,360,296 $ 36,993,740 $ 42,493,097 $ 44,165,268 $ 63,825,318 $ 58,413,160 $ 48,750,631 $ All Other Governmental Funds:

Nonspendable 35,000 $ 35,000 $ 35,000 $ - $ - $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ Restricted 11,034,408 9,989,692 9,544,309 14,276,293 14,081,580 12,569,286 10,517,062 10,725,774 41,650,527 43,022,740 58,889,824 Committed 744,557 461,054 312,130 281,719 424,962 342,738 253,813 556,051 (5,626,580) 878,283 869,537 Assigned 22,951 - - - - - - - - - -
Unassigned (624,325) - - - - - - (570,733) (396,056) (61,279) (40,533) Total All Other Governmental Funds 11,212,591 $ 10,485,746 $ 9,891,439 $ 14,558,012 $ 14,506,542 $ 12,947,024 $ 10,805,875 $ 10,746,092 $ 35,662,891 $ 43,874,744 $ 59,753,828 $ Source: Annual Comprehensive Financial ReportSource: Balance Sheet - Governmental Funds CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Assessed Value of Estimated Actual Value of Taxable Property Last Ten Fiscal Years
147
Fiscal Year Secured Utility Unsecured
Taxable Assessed
Value
Total Direct
Tax Rate (1)
2016 3,789,718,353 2,859,722 143,801,821 3,936,379,896 0.14% 2017 3,962,134,430 2,589,722 151,219,467 4,115,943,619 0.14% 2018 4,096,151,430 3,323,768 208,318,421 4,307,793,619 0.14% 2019 4,275,737,413 3,323,768 209,716,581 4,488,777,762 0.14% 2020 4,517,255,501 3,323,768 214,038,086 4,734,617,355 0.14% 2021 4,758,154,693 3,323,768 214,030,845 4,975,509,306 0.14% 2022 4,959,482,006 3,484,168 229,920,063 5,192,886,237 0.14% 2023 5,273,050,799 3,484,168 249,864,366 5,526,399,333 0.14% 2024 5,596,766,882 3,484,168 303,238,113 5,903,489,163 0.14% 2025 6,105,147,781 3,484,168 346,952,687 6,455,584,636 0.14% Assessed values are net of all exemptions.
(1) Total direct tax rate is the city share of the 1% Proposition 13 tax only for TRA 5-000.

Source: County Assessor data, MuniServices, LLC / Neumo CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Direct and Overlapping Property Tax Rates (Rate Per $100 of Assessed Value) Current Year and Nine Years Ago 148
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Direct Rate:

City of Tulare 0.142000 0.142000 0.141000 0.141000 0.141000 0.141000 0.141000 0.141000 0.141000 0.141000County of Tulare 0.858000 0.858000 0.859000 0.859000 0.863767 0.859000 0.859000 0.859000 0.859000 0.859000 Total - 1% Breakout 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 Overlapping Rate:

College of Sequoias Tulare SFID 2008 0.020000 0.017200 0.024300 0.021600 0.020000 0.020000 0.010000 0.012500 0.014000 0.011000Tulare Joint Union High School District 20 0.064500 0.066200 0.073800 0.064000 0.061500 0.060000 0.060000 0.060000 0.060000 0.060000 Kaweah Delta Water District 0.000400 0.000300 0.000400 0.000400 0.000300 0.000400 0.000400 0.000300 0.000300 0.000200 Tulare Health Care 2005 0.081500 0.085600 0.100300 0.100300 0.100300 0.050000 0.030000 0.020000 0.029300 0.039000 Total - Overlapping Rate 0.166400 0.169300 0.198800 0.186300 0.182100 0.130400 0.100400 0.092800 0.103600 0.110200 Total Tax Rate 1.166400 1.169300 1.198800 1.186300 1.182100 1.130400 1.100400 1.092800 1.103600 1.110200 Source: MuniServices, LLC / NeumoSource: County Auditor-Controller DataRates are not adjusted for ERAF.Tax Rate as represented by TRA 005-000.

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Historical Sales and Use Tax Rates
149
Effective
Date
End
Date
State
Jurisdiction
Local
Transportation
Fund
City
Rate
County
Rate
Combined
Rate
8/1/1933 6/30/1935 2.50% 2.50%
7/1/1935 6/30/1943 3.00% 3.00%
7/1/1943 6/30/1949 2.50% 2.50%
7/1/1949 12/31/1961 3.00% 1.00% 4.00%
1/1/1962 (1) 7/31/1967 4.00% 1.00% 5.00%
8/1/1967 6/30/1972 3.75% 0.25% 1.00% 5.00%
7/1/1972 6/30/1973 4.75% 0.25% 1.00% 6.00%
7/1/1973 6/30/1973 3.75% 0.25% 1.00% 5.00%
10/1/1973 3/31/1974 5.00% 0.25% 1.00% 1.30%
4/1/1974 11/30/1989 5.00% 0.25% 1.00% 6.25%
12/1/1989 12/31/1990 4.75% 0.25% 1.00% 6.00%
1/1/1991 7/14/1991 6.00% 0.25% 1.00% 7.25%
7/15/1991 12/31/2000 5.75% 0.25% 1.00% 7.00%
1/1/2001 12/31/2001 6.00% 0.25% 1.00% 7.25%
1/1/2002 6/30/2004 6.25% 0.25% 1.00% 7.25%
7/1/2004 (2) 3/31/2007 6.25% 0.25% 1.00% 7.25%
4/1/2006 (3) 7.25% 0.25% 1.00% 8.75%
4/1/2007 (4) 7.25% 0.25% 1.00% 0.50% 9.25%
7/1/2010 6.25% 0.25% 1.00% 0.50% 8.25%
1/1/2017 6.00% 0.25% 1.00% 0.50% 8.25%
1/1/2017 6.00% 0.25% 1.00% 0.50% 8.25%
(4) In November 2006, voters in the County of Tulare approved a countywide sales tax measure giving the County a ½% rate increase which became effective April 1, 2007. The sales tax measure has a sunset period of 30 years. The revenue is earmarked for transportation projects (i.e., streets, transit, etc.). The allocation is as follows: 50% - regional projects, 35% - goes to the cities for their street programs, 14% - transportation enhancement programs, and 1 % -administration.

State Mandated Purposes
Source: State Board of Equalization, State of California Notes:
(1) Sales tax only. The use tax was enacted effective July 1, 1955. (2) In March 2004, a State ballot measure was passed issuing deficit reduction bonds for State purposes.

Funding was provided effective July 1, 2004, by repealing 25% of the local 1 % sales tax and then adopting a new ¼-cent sales tax dedicated to repayment of the deficit reduction bonds. Cities and counties would then be "made whole" by the State from increased property allocations via reduced contributions to Education Revenue Augmentation Fund (ERAF). This "triple flip" is theoretically revenue-neutral, and as such, the effective rate for revenue purposes remains at 1%.
(3) In November 2005, voters in the City of Tulare approved a local sales tax measure increasing the City rate by ½% which became effective April 1, 2006. The sales tax measure does not have a sunset period.

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Principal Property Taxpayers
Current Year and Nine Years Ago
150
Taxpayer Taxable Value
Percent of
Total City
Taxable
Value Taxable Value
Percent of
Total City
Taxable
Value
Saputo Cheese And Protein LLC 246,571,282 4% 263,592,783 6.70% Land O' Lakes Inc. 187,362,246 3% 179,995,942 4.57%
Lactalis Heritage Dairy Inc. 138,763,638 2%
Dreyers Grand Ice Cream Inc. 96,740,654 1% 57,861,761 1.47% United States Cold Storage Of California 81,143,384 1% 64,643,910 1.64% Craig Realty Group Tulare LLC 44,400,124 1%
Altura Centers For Health 40,685,838 1%
Target Corporation 31,348,762 0% 23,083,812 0.59%
Sulphur Springs Cultured Specialties LLC 29,578,352 0% 23,064,415 0.59% Hillman Tulare Investors LLC 25,743,037 0%
Lowes HIW Inc. 20,478,608 0% 11,758,030 0.30%
International Agri-Center Inc. 20,294,825 0% 15,943,391 0.41% Loves Country Stores Of California 17,768,624 0% 11,439,570 0.29% HD Development Of Maryland Inc. 17,419,428 0% 10,047,190 0.26% Oak Valley Tulare LLC 16,633,392 0%
Central CA Fuel Cell 2, LLC (Lessee) 16,124,400 0%
G & J Heavy Haul Inc. 15,531,688 0%
Quinn Rental Services 14,217,430 0%
Orchard Square 79 LLC 14,009,410 0%
BDC Prosperity Lp 13,388,166 0% 9,479,240 0.24%
Tulare Village LLC 12,819,469 0% 10,891,933 0.28%
Tulare Investments Group 12,796,920 0%
Wal-Mart Real Estate Business Trust 12,655,308 0% 14,968,580 0.38% Grande Oak LLC 11,176,436 0%
Kloeckner Metals Corporation 11,149,647 0% 10,599,836 0.27% Oscar Mayer Foods Corporation 74,782,450 1.90%
Garrison Tulare LLC 43,976,161 1.12%
Daley Enterprise Inc. 17,825,210 0.45%
Woodside 06N Lp 17,198,494 0.44%
Moyles Central Valley Health 13,163,399 0.33%
Tulare Bethel Housing Inc. 11,183,393 0.28%
PRE Tulare Holdings LLC 10,217,261 0.26%
Tulare Lodging Association LLC (Lessee) 9,627,331 0.24% Store Master Funding VII LLC 9,535,426 0.24%
J D Heiskell Co Inc. 8,830,267 0.22%
Pimentel Lino A Betty T 8,791,863 0.22%
Total Top 25 Taxpayers 1,148,801,068 17.80% 932,501,648 23.69% Total Taxable Value 6,455,584,636 100.00% 3,936,379,896 100.00% Source: County Assessor Data
Source: County Assessor Data
Source: MuniServices, LLC / Neumo
2025 2016
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years 151
Fiscal Year
Residential
Property
Commercial
Property
Industrial
Property Other Property*
Unsecured
Property
Less
Tax-Exempt
Property
Taxable Assessed
Value
Total Direct
Tax Rate (1)
Estimated Actual
Taxable Value (2)
Factor of
Taxable
Assessed
Value (2)
2016 - - - 3,792,578,075 143,801,821 - 3,936,379,896 0.14% - - 2017 - - - 3,964,724,152 151,219,467 - 4,115,943,619 0.14% - - 2018 - - - 4,099,475,198 208,318,421 - 4,307,793,619 0.14% - - 2019 - - - 4,279,061,181 209,716,581 - 4,488,777,762 0.14% - - 2020 - - - 4,520,579,269 214,038,086 - 4,734,617,355 0.14% - - 2021 - - - 4,761,478,461 214,030,845 - 4,975,509,306 0.14% - - 2022 3,587,346,382 801,662,908 651,528,395 138,170,046 243,440,607 229,262,101 5,192,886,237 0.14% 7,631,205,970 1.469550 2023 3,818,249,466 834,343,720 697,975,380 147,553,758 266,079,961 237,802,952 5,526,399,333 0.14% 8,997,459,386 1.628087 2024 4,043,865,634 886,816,160 725,922,788 171,688,605 323,685,078 248,489,102 5,903,489,163 0.14% 9,143,436,182 1.548819 2025 4,360,600,861 978,791,934 813,732,384 195,211,235 399,924,944 292,676,722 6,455,584,636 0.14% 12,856,264,525 1.991495 Source: City of Tulare - ACFR Publication Report. (FY2021-2013: Other Property represents Secured and Utility values.)Notes:( - ) Data unavailable.Table has been reformatted to comply with GASB No. 44 and include estimated actual value.Prior Year values are net of all exemptions.*Other Property includes State Unitary value of $3,484,168.(1) Total direct tax rate is the city share of the 1% Proposition 13 tax only for TRA 5-000. (2) EsƟmated Actual Value is derived from a series of calculaƟons comparing median assessed values from 1940 to current median sale prices. Based on these calculations a multiplier value was extrapolated and applied to current assessed values.Source: County Assessor data, MuniServices, LLC / Neumo CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Assessed Value of Property by Use Code, City-Wide
Current Year
152
Category 2024 2025
Residential 4,043,865,634 4,360,600,861
Commercial 886,816,160 978,791,934
Industrial 725,922,788 813,732,384
Institution 94,094,733 95,036,401
Unknown 29,283,097 50,725,558
Miscellaneous 22,631,839 23,154,945
Agriculture 20,276,496 21,182,706
Unitary 3,484,168 3,484,168
Government 1,806,561 1,516,769
Recreation 111,711 110,688
Misc - -
Gross Secured Value 5,828,293,187 6,348,336,414
Unsecured 323,685,078 399,924,944
Less: Exemptions 248,489,102 292,676,722
Net Taxable Value 5,903,489,163 6,455,584,636
Source: MuniServices, LLC / Neumo
Source: County Assessor Data
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Property Tax Levies and Collections
Last Ten Fiscal Years
153
Fiscal Year
Ended June 30,
Taxes Levied
for the
Fiscal Year (1) Amount (2)
Percent
of Levy
Collections in
Subsequent
Years Amount
Percent of
Levy
2016 (3) $ 4,237,324 4,715,361 $ 89.86% 146,721 $ 4,384,045 $ 92.97% 2017 (4) 4,459,365 4,887,339 91.24% 103,452 4,562,817 93.36% 2018 (5) 4,778,139 5,246,283 91.08% 106,867 4,885,006 93.11% 2019 (6) 5,034,816 5,527,262 91.09% 108,602 5,143,418 93.06% 2020 (7) 5,295,495 5,800,055 91.30% 115,956 5,411,451 93.30% 2021 (8) 5,666,998 6,119,608 92.60% 139,323 5,806,321 94.88% 2022 (9) 5,905,609 6,463,561 91.37% 136,932 6,042,541 93.49% 2023 (10) 6,294,243 6,646,500 94.70% 130,925 6,425,168 96.67% 2024 (11) 6,801,102 7,242,302 93.91% 186,134 6,987,235 96.48% 2025 (12) 7,291,484 8,397,751 86.83% 198,054 7,489,538 89.19% (3) Reduced approximately $1,626,244 for the property tax shift to education. (4) Reduced approximately $1,639,505 for the property tax shift to education. (5) Reduced approximately $1,747,188 for the property tax shift to education. (6) Reduced approximately $1,861,417 for the property tax shift to education. (7) Reduced approximately $1,980,278 for the property tax shift to education. (8) Reduced approximately $2,313,482 for the property tax shift to education. (9) Reduced approximately $2,430,970 for the property tax shift to education. (10) Reduced approximately $2,684,793 for the property tax shift to education. (11) Reduced approximately $2,502,341 for the property tax shift to education.

Total Collections to Date
(2) City of Tulare Finance Department
(1) County of Tulare, Office of Auditor-Controller
Sources:

Collected within the
Fiscal Year of Levy
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Schedule of Taxable Sales by Category (In Thousands) Last Ten Fiscal Years 154
CDTFA NAICS SECTOR 2025Q1 2024Q1 2023Q1 2022Q1 2021Q1 2020Q1 2019Q1 2018Q1 2017Q1 2016Q1 Accommodation and Food Services 1,514,550 1,437,596 1,358,664 1,292,612 966,322 948,195 933,982 877,642 879,250 838,959Agriculture, Forestry, Fishing and Hunting 276,593 146,826 78,778 483,589 56,823 75,563 78,054 43,819 60,971 63,671Arts, Entertainment, and Recreation 5,390 5,726 5,377 5,037 1,876 5,719 5,054 4,368 7,923 4,975Construction 337,483 339,826 347,292 376,050 344,810 293,604 250,894 237,547 244,505 259,533Educational Services 8,203 15,856 7,763 5,427 5,101 20,433 15,771 14,252 17,785 14,086Information 42,183 37,956 40,200 38,537 11,117 33,459 32,666 29,571 29,732 26,073Manufacturing 368,562 407,012 288,901 220,715 189,154 228,180 279,756 212,208 177,436 179,498Mining, Quarrying, and Oil and Gas Extraction 1,971,852 2,012,649 2,030,280 1,912,433 1,595,434 1,567,724 1,447,845 1,428,715 1,230,198 1,269,492 Other Services (except Public Administration) 164,660 172,942 177,044 173,132 130,362 111,994 98,511 86,559 75,870 75,840Professional, Scientific, and Technical Services 8,538 11,693 11,609 10,403 9,835 11,038 9,015 9,127 6,891 6,763Real Estate and Rental and Leasing 99,870 81,427 130,997 97,424 67,987 69,224 44,551 71,227 70,395 60,414Retail Trade 7,892,313 8,044,552 8,364,542 8,005,643 6,669,229 6,368,291 6,182,974 6,002,600 5,744,451 5,724,548Utilities 72,668 53,431 51,850 41,271 44,624 35,988 58,599 48,058 27,204 24,503Undefined 550,457 482,087 432,254 442,416 383,624 332,571 260,467 255,748 268,132 270,910TOTAL 13,313,320 13,249,579 13,325,550 13,104,690 10,476,298 10,101,982 9,698,140 9,321,441 8,840,743 8,819,266Source: MuniServices, LLC / Neumo CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Principal Producers
Current Year and Nine Years Ago
155
2024-25 2015-16
Taxpayer Business Type Taxpayer Business Type
Arco AM/PM Mini Marts Service Stations Arco AM/PM Mini Marts Service Stations Calif Turf Equip & Supply Bldg.Matls-Whsle Chevron Service Stations Service Stations Chevron Service Stations Service Stations Garton Tractor Heavy Industry Circle K Service Stations Service Stations High Sierra Lumber & Supply Bldg.Matls-Whsle Garton Tractor Heavy Industry Home Depot Bldg.Matls-Retail High Sierra Lumber & Supply Bldg.Matls-Whsle K Mart Department Stores Home Depot Bldg.Matls-Retail Linder Equipment Co. Heavy Industry Linder Equipment Co. Heavy Industry Love's Travel Stop Service Stations Love's Travel Stop Service Stations Lowe's Home Centers Bldg.Matls-Retail Lowe's Home Centers Bldg.Matls-Retail McDonald's Restaurants Restaurants McDonald's Restaurants Restaurants Merle Stone Chevrolet Auto Sales - New Merle Stone Chevrolet Auto Sales - New Mid-Valley Pipe & Supply Heavy Industry Mid-Valley Pipe & Supply Heavy Industry Nike Factory Store Apparel Stores Paige Truck Stop Service Stations Orchard Machinery Heavy Industry Pilot Travel Center Service Stations Paige Truck Stop Service Stations Quinn Rental Services Heavy Industry Quinn Rental Services Heavy Industry Ritchie Bros Business Services Roche Oil Energy Sales
Roche Oil Energy Sales Shell Service Stations Service Stations Ross Stores Apparel Stores Sturgeon and Beck Buick GMC Auto Sales - New Shell Service Stations Service Stations Target Stores Department Stores Target Stores Department Stores Valero Service Stations Service Stations US Farm Systems Heavy Industry Valley Aircrafts Misc. Vehicle Sales Valero Service Stations Service Stations Valley Pump & Dairy Systems Heavy Industry Wal Mart Stores Department Stores Wal Mart Stores Department Stores Will Tiesiera Ford Auto Sales - New Will Tiesiera Ford Auto Sales - New Source: MuniServices, LLC / Neumo
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
156
Fiscal Year
Ended June 30,
Lease Revenue
Bonds (1) Leases Payable Notes Payable
Advances from
Other Fund
General Obligation
Bond
Total
Governmental
Activities
2016 28,095,156 $ 825,839 $ - $ - $ - $ 28,920,995 $
2017 27,203,440 713,771 - - - 27,917,211
2018 29,005,402 597,202 - - - 29,602,604
2019 27,696,192 474,727 - - - 28,170,919
2020 26,501,262 - - - - 26,501,262
2021 25,256,332 - - - - 25,256,332
2022 23,966,402 - - - - 23,966,402
2023 22,636,472 - - - - 22,636,472
2024 21,241,542 - 11,595,271 - - 32,836,813
2025 19,781,612 - 11,584,634 - - 31,366,246
(1) The City issued over $29 million of new revenue bonds in 2003 and 2004. The City issued $79 million of new revenue bonds in 2007. The City issued $55 million of new revenue bonds in 2009.
(2) Ratio calculated using population for the prior calendar year. (3) See the schedule of Demographic and Economic Statistics for personal income and per capital data.

Governmental Activities
Notes:

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
157
Revenue Bonds
Payable (1) Leases Payable Notes Payable
Total BusinessType ActivitiesTotal Primary
Government
Debt per
Capita (2)
Percentage of Gross
Assessed Valuation
Percentage of
Personal
Income (3)
$ 7,382,888 192,182,638 $ 521,793 $ 200,087,319 $ 229,008,314 $ 3,627 $ 5.90% 23% 6,519,902 243,697,903 - 250,217,805 278,135,016 4,301 6.76% 24% 5,612,978 260,258,512 - 265,871,490 295,474,094 4,478 6.86% 25% 4,660,072 256,006,225 - 260,666,297 288,837,216 4,480 6.43% 23% 1,474,943 213,702,484 - 215,177,427 241,678,689 3,626 5.20% 18% - 201,170,151 - 201,170,151 226,426,483 3,380 4.62% 16% - 194,596,530 - 194,596,530 218,562,932 3,147 4.21% 14% - 189,033,907 - 189,033,907 211,670,379 3,047 3.83% 11% - 183,303,285 - 183,303,285 216,140,098 3,102 3.66% 10% - 177,357,663 - 177,357,663 208,723,909 2,948 3.54% 9%
Business-Type Activities
Notes:
(1) The City issued over $29 million of new revenue bonds in 2003 and 2004. The City issued $79 million of new revenue bonds in 2007. The City issued $55 million of new revenue bonds in 2009.
(2) Ratio calculated using population for the prior calendar year. (3) See the schedule of Demographic and Economic Statistics for personal income and per capital data.

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Ratios of General Bonded Debt Outstanding (In Thousands, Except Per Capita) Last Ten Fiscal Years
158
Fiscal Year
Ended June 30,
General
Obligation
Bonds
Tax Allocation
Bonds Total
Percentage of
Assessed
Value (1) Per Capita
2016 - $ 28,095 $ 28,095 $ 0.53% 350.00 $
2017 - 27,203 27,203 0.65% 404.20
2018 - 28,846 28,846 0.62% 437.18
2019 - 27,696 27,696 0.62% 432.75
2020 - 26,501 26,501 0.59% 389.72
2021 - 25,256 25,256 0.51% 371.41
2022 - 23,966 23,966 0.46% 345.03
2023 - 22,636 22,636 0.41% 324.88
2024 - 31,325 31,325 0.53% 449.57
2025 - 31,366 31,366 0.53% 443.03
General bonded debt is payable with governmental fund resource and general obligation bonds recorded in enterprise funds (of which the City has none).
(1) Assessed value has been used because the actual value of taxable property is not readily available from the State of California.

Notes:

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Direct and Overlapping Debt
159
Total Debt
6/30/25
Applicable
Percentage (1)
City's Share of
Debt 6/30/25
Overlapping Tax and Assessment Debt:

College of the Sequoias Tulare School
Facilities Improvement District 53,110,909 $ 48.767% 25,900,597 $ Tulare Union High School District 9,379,899 64.191% 6,021,051 Liberty School District 171,784 45.090% 77,457
Tulare Local Health Care District 137,870,000 62.885% 86,699,550 California Statewide Communities Development Authority
Assessment District No. 2024-01 580,000 100.000% 580,000 California Statewide Communities Development Authority
Assessment District No. 2025-01 590,000 100.000% 590,000 Total Overlapping Tax and Assessment Debt 119,868,655 $ Direct and Overlapping General Fund Debt:

Tulare County General Fund Obligations 33,561,236 12.942% 4,343,495 $ Tulare County Pension Obligation Bonds 177,745,000 12.942% 23,003,758 Tulare County Board of Education Certificates of Participation 31,770,000 12.942% 4,111,673 Liberty Joint Union High School District General Fund Obligation 115,229 64.191% 73,967 Tulare School District General Fund Obligations 1,880,000 45.090% 847,692 Liberty School District General Fund Obligations 4,025,000 95.061% 3,826,205 City of Tulare Lease Revenue Obligations 18,380,000 100.000% 18,380,000 City of Tulare Equipment Lease Obligations 11,584,634 100.000% 11,584,634 Total Direct and Overlapping General Fund Debt 100.000% 66,171,424 $ Overlapping Tax Increment Debt (Successor Agency) 100.000% 13,375,000 13,375,000 $ Total Direct Debt (3) $ 29,964,634
Total Overlapping Debt 169,450,445
Combined Total Debt $ (2) 199,415,079
Ratios to 2024-25 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.84%
Total Direct Debt ($21,015,000) 0.46%
Combined Total Debt 3.07%
Ratios to Redevelopment Successor Agency Incremental Valuation ($919,782,776):

Total Overlapping Tax Increment Debt 1.45%
Notes:

Source: Avenu Insights & Analytics. California Municipal Statistics, Inc. (1) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the City divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and non-bonded capital lease obligations.
(3) Includes any applicable bond premium and/or bond discounts.

Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident. and therefore responsible for repaying the debt, of each overlapping government.

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Legal Debt Margin Information Last Ten Fiscal Years
160
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Assessed Valuation 3,936,379,896 $ 4,116,213,619 $ 4,307,793,619 $ 4,488,777,762 $ 4,734,617,355 $ 4,758,154,693 $ 4,959,482,006 $ 5,561,184,238 $ 5,903,489,000 $ 5,903,489,000 $ Debt Margin Ratio 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75%Debt Margin 147,614,246 154,358,011 161,542,261 168,329,166 177,548,151 178,430,801 185,980,575 208,544,409 221,380,838 221,380,838Less Outstanding General Obligations - - - - - - - - - -Net Debt Margin 147,614,246 $ 154,358,011 $ 161,542,261 $ 168,329,166 $ 177,548,151 $ 178,430,801 $ 185,980,575 $ 208,544,409 $ 221,380,838 $ 221,380,838 $ Notes:Source: City of Tulare Finance DepartmentSource: Cal MuniThe Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based on 15% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current fullvaluation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the State.

Fiscal Year
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Pledged Revenue Coverage Last Ten Fiscal Years
161
Fiscal Year
Ended June
30 Total
Sewer
Revenue
Less
Operating
Expenses
Net
Revenues
2001
Senior
Bonds
Senior
Debt
Coverage
Remaining
Net
Revenues
Parity
(Subordinate)
Debt
Parity Debt
Coverage
Fiscal Year
Ended June
30 Total
Water
Revenue
Less
Operating
Expenses
Net
Revenues
Debt
Service
Debt
Coverage
2016 28,308 $ 10,559 $ (1) 17,749 $ 923 $ 19.22 16,826 $ 10,858 $ 1.55 2017 - $ - $ - $ - $ - 2017 29,556 9,787 19,769 923 21.41 18,846 10,617 1.78 2018 - - - - - 2018 31,650 10,669 (2) 20,981 923 22.72 20,058 10,673 1.88 2019 12,658 6,795 5,863 379 15.47 2019 37,071 11,071 26,000 923 28.16 25,077 10,633 2.36 2020 15,639 6,924 8,715 1,107 7.88 2020 38,398 11,561 26,837 923 29.06 25,914 10,456 2.48 2021 14,662 7,296 7,367 1,353 5.45 2021 38,643 10,916 27,727 462 60.06 27,266 9,859 2.77 2022 15,219 7,015 8,205 2,737 3.00 2022 39,084 12,349 26,735 - - 26,735 10,354 2.58 2023 15,073 7,358 7,715 2,735 2.82 2023 35,339 12,869 22,470 - - 22,470 10,327 2.18 2023 14,256 7,935 6,321 2,295 2.75 2024 38,569 21,981 16,588 - - 16,588 10,340 1.60 2024 14,648 11,433 3,215 1,877 1.71 2025 38,051 23,698 14,353 - - 14,353 10,340 1.39 2025 15,049 11,053 3,996 1,877 2.13 Source: Prepared by Bartle Wells Associated based on audited financial information and outstanding debt service schedules.(1) Operating Expenses shown for Fiscal Year Ended June 30, 2016, exclude $1,543,438.74 of bond-funded expenses related to the Series 2015 Bonds and the unamortized portions of the Series 2006Bonds and Series 2010 Bonds.(2) Operating Expenses shown for Fiscal Year Ended June 30, 2018, exclude $3,163,328.48 of bond funded expenses related to the Series 2016 Bonds and unamortized portion of the Series 2010 Bonds.Operating Expenses exclude interest expenses and depreciation. For purposes of calculating debt service coverage, Federal Reimbursable Credits for Build America Bonds are treated as reductions in debtservice and are excluded from Sewer Revenues. Debt service shown on the table is based on total debt payments due and payable each fiscal year and excludes a) payments made from escrow funds, andb) adjustments due to accounting accruals or interest earnings on debt service reserve funds or other bond funds. Details regarding the City's outstanding debt can be found in the notes to the financialstatements.Operating Expenses exclude interest expenses and depreciation. For purposes of calculating debt service coverage, Federal Reimbursable Credits for Build America Bonds are treated as reductions in debtservice and are excluded from Sewer Revenues. Debt service shown on the table is based on total debt payments due and payable each fiscal year and excludes a) payments made from escrow funds, and b) adjustments due to accounting accruals or interest earnings on debt service reserve funds or other bond funds. Details regarding the City’s outstanding debt can be found in the notes to thefinancial statements.Notes:

Sewer Revenue Bonds Water Revenue Bonds
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Demographic and Economic Statistics
Last Ten Calendar Years
162
Fiscal Year
City Population
(1) Personal Income (2)
Personal Income (in
thousands) (2)
Per Capita Personal
Income (2)
Assessed Valuation
(in thousands)
City
Unemployment
Rate (3)
County
Unemployment
Rate (3)
2016 63,515 1,004,957,149 1,004,957 15,872 3,936,380 9.10% 10.60% 2017 64,661 1,175,483,033 1,175,483 18,179 4,116,214 8.90% 10.60% 2018 65,982 1,194,535,485 1,194,535 18,707 4,307,794 6.40% 9.60% 2019 66,967 1,245,463,575 1,245,464 19,317 4,488,778 7.00% 10.00% 2020 67,834 1,369,297,124 1,369,297 20,186 4,734,617 14.60% 16.20% 2021 67,940 1,376,600,280 1,376,600 20,262 4,975,509 7.40% 9.30% 2022 69,462 1,616,614,827 1,616,615 23,273 5,192,886 3.40% 6.50% 2023 69,677 1,891,424,668 1,891,425 27,146 5,526,399 5.70% 10.00% 2024 70,799 2,150,175,542 2,150,176 30,370 5,903,489 5.70% 9.30% 2025 73,002 2,390,426,399 2,390,426 32,745 6,455,584 6.20% 9.90% MuniServices, LLC / Neumo
Source: FY2024 and prior years: City of Tulare Comprehensive Annual Financial Report For the Year Ended June 30th, 2024 (1) State of California Department of Finance;
(2) U.S. Census Bureau, adjusted for inflation;
(3) State of California Employment Development Department; CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Principal Employers
Current Year and Nine Years Ago
163
Employer
Number of
Employees
Percent of
Total
Employment
Number of
Employees
Percent of
Total
Employment
Tulare City School District 1,400 4.27%
Saputo Cheese USA, Inc. (4 locations) 1,194 3.64% 550 2.02% Tulare Joint Union High School District 633 1.93%
Land O'Lakes, Inc. (formerly Dairyman's Cooperative Creamery) 480 1.46% 530 1.95% Adventist Health Hospital 461 1.41%
City of Tulare 389 1.19%
Dryer's Grand Ice Cream (formerly Haagen-Dazs) 356 1.09% 350 1.29% Lactalis Heritage Dairy (formerly Kraft Foods USA Tulare) 275 0.84% 180 0.66% U.S. Cold Storage of California (2 locations) 270 0.82% 200 0.74% Walmart Store 226 0.69% 225 0.83%
J.D. Heiskell Company 350 1.29%
Morris Levin & Sons Hardware 200 0.74%
Ruan, Inc. 180 0.66%
Southern Ca Edison Company 120 0.44%
Total Top Employers 5,684 17.33% 2,885 10.62%
Total Labor Force (1) 32,800
Source: FY2016, City of Tulare Comprehensive Annual Financial Report For the Year Ended June 30th, 2016 (1) State of California Employment Development Department Notes:

School Districts include Administrators, Certificated, and Classified employees for schools within the city limits only. * No response received from Employer, previous year employee count applied.

Source: MuniServices, LLC / Neumo
2025 2016
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Full-Time and Part-Time City Employees by Function
Last Ten Fiscal Years
164
Full-Time and Part-Time Employees as of June 30
Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General Government 38 40 37 38 37 39 32 35 35 35
Public Safety 159 124 161 161 161 161 160 162 164 177
Public Works 95 92 103 112 112 114 120 120 121 120
Community
Development 15 17 21 21 21 20 25 29 31 29
Community Services 22 26 26 21 20 19 21 22 22 23
Library and Cultural 11 16 12 12 12 12 10 10 10 9
Total 340 315 360 365 363 365 368 378 383 393
Source: City of Tulare Human Resources and Finance Department CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Operating Indicators by Function
Last Ten Fiscal Years
165
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Police:

Arrests 3,577 3,345 3,294 3,118 3,354 2,853 2,219 2,063 1,578 2,391 Parking Citations Issued 182 255 35 123 135 94 218 N/A N/A N/A Fire:

Number of Emergency Calls 5,392 5,496 5,350 5,350 5,704 7,096 8,516 7,687 7,662 7,459 Inspections 1,978 1,447 1,439 1,439 1,290 647 895 1,023 1,079 1,188 Parks and Recreation:

Number of Recreation Classes 340 721 989 973 215 243 618 636 667 761 Number of Facility Rentals 2,885 2,469 2,977 2,967 1,998 648 2,386 2,565 2,952 2,908 Water:

New Connections 701 (1) 378 339 382 394 354 342 362 394 366 Average Daily Consumption
(millions of gallons) 12 13 14 14 14 15 15 13 14 14
Sewer:

New Connections 280 380 340 382 394 354 216 333 1,521 366 Source: City of Tulare Human Resources and Finance Department Note: Parking citation information not available as of the time of publishing this report.

Fiscal Year
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Capital Asset Statistics by Function
Last Ten Fiscal Years
166
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Police:

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

Fire Stations 3 3 3 3 3 3 3 3 3 3
Public Works:

Streets (miles) 220.00 221.72 223.32 223.39 224.78 227.66 227.66 229.24 261.75 289.00 Traffic Signals 47 47 46 47 47 51 54 54 54 54
Parks and Recreation:

Parks 18 18 18 18 18 18 20 20 20 23
Park Acreage 363.00 363.00 367.52 368.66 368.66 370.45 371.12 371.12 371.12 377.40 Water:

Water Mains (miles) 232.16 234.19 235.75 236.63 238.18 241.49 242.72 244.20 279.00 279.07 Average Daily Consumption
(millions of gallons) 12.46 13.31 13.55 14.16 13.99 15.46 15.00 13.45 13.60 13.90 Sewer:

Sanitary Sewers (miles) 243.76 245.89 247.35 248.53 249.81 252.92 254.17 255.35 270.00 270.07 Average Daily Wastewater Flow
(millions of gallons) 11.08 11.24 11.54 11.68 11.65 11.74 11.54 11.46 11.64 11.70 Source: Various City of Tulare Departments as appropriate Fiscal Year
CITY OF TULARE | CALIFORNIA
Single Audit Report
For the Year Ended June 30, 2025
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Single Audit Report

TABLE OF CONTENTS
PAGE
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 ............................................................... 1 Independent Auditor’s Report on Compliance for Each Major Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal and State Awards Required by the Uniform Guidance ................................................................................... 3 Schedule of Expenditures of Federal and State Awards ...................................................................................................... 6 Notes to the Schedule of Expenditures of Federal and State Awards ................................................................................. 7 Schedule of Findings and Questioned Costs ........................................................................................................................ 9 Summary Schedule of Prior Audit Findings ........................................................................................................................ 14 Corrective Action Plan ........................................................................................................................................................ 18 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and City Council
City of Tulare, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Tulare (the 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 June 29, 2026.

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

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying schedule of findings and questioned costs, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.

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. We consider the deficiencies described in the accompanying schedule of findings as items 2025-003 and 2025-004 to be material weaknesses.

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. We consider the deficiencies described in the accompanying schedule of findings as items 2025-001 and 2025-002 to be significant deficiencies.
1 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

City’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying schedule of findings. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

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

Clovis, California
June 29, 2026
2 3
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR PROGRAM; REPORT ON INTERNAL CONTROL OVER
COMPLIANCE; AND REPORT ON SCHEDULE OF EXPENDITURES OF

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

Qualified Opinion on Coronavirus State and Local Fiscal Recovery Funds In our opinion, except for the noncompliance described in the Basis for Qualified and Unmodified Opinions section of our report, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on the Coronavirus State and Local Fiscal Recovery Funds for the year ended June 30, 2025.

Unmodified Opinion on Each of the Other Major Federal Programs In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its other major federal programs identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs for the year ended June 30, 2025.

Basis for Qualified and Unmodified Opinions
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

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

Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.
4 Matters Giving Rise to Qualified Opinion on Coronavirus State and Local Fiscal Recovery Funds As described in the accompanying schedule of findings and questioned costs, the City did not comply with requirements regarding the Coronavirus State and Local Fiscal Recovery Funds as described in finding number 2025-005 for Reporting.

Compliance with such requirements is necessary, in our opinion, for the City to comply with the requirements applicable to that program.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.

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

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

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

Other Matters
The results of our auditing procedures disclosed an instance of noncompliance which is required to be reported in accordance with the Uniform Guidance and which is described in the accompanying schedule of findings and questioned costs as item 2025-005. Our opinion on each major federal program is not modified with respect to this matter.

Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the noncompliance findings identified in our compliance audit described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. 5 Report on Internal Control over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we did identify certain deficiencies in internal control over compliance that we consider to be a material weakness.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.

A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2025-005 to be a material weakness.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the internal control over compliance findings identified in our compliance audit described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

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

Report on Schedule of Expenditures of Federal and State Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Tulare, California, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated June 29, 2026, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal and state awards is presented for purposes of additional analysis as required by the Uniform Guidance and is 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 financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal and state awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Clovis, California
September 8, 2026
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Schedule of Expenditures of Federal and State Awards
See accompanying Notes to the Schedule of Federal and State Awards. 6 Federal Grantor/Program or Cluster Title
Assistance Listing Number Pass-through Grantor Identifying Number Federal Expenditures ($) State Expenditures ($)Passed-through to Subrecipients ($)
U.S. Department of Commerce Direct Awards Economic Development Cluster:

Economic Adjustment Assistance 11.307 ED24SEA0G0002 $ 71,125 $ - $ - Total Economic Development Cluster 71,125 - - Total Department of Commerce 71,125 - - U.S. Dept of Housing & Urban Developing Direct Awards CDBG - Entitlement Grants-Cluster: Community Develop Block Grant (CDBG) 14.218 B-23-MC-06-0034 584,381 - 153,713 Community Develop Block Grant (CDBG) 14.218 B-24-MC-06-0034 464,439 - 153,414 Total CDBG - Entitlement Grants-Cluster 1,048,820 - 307,127 Total Department of Housing and Urban Development 1,048,820 - 307,127 U.S. Dept of Health & Human Services Pass through from Kings/Tulare Area Agency on Aging
Aging Cluster:

Title IIIC Congregate Nutrition C-1 93.045 2401CAOACM-01 87,946 21,127 - Title IIIC Delivered Nutrition C-2 93.045 2401CAOAHD-01 80,256 106,570 - Subtotal for 93.045 168,202 127,697 - Nutrition Service Incentive Program (NSIP) C-1 93.053 2401CAOACM-01 - 4,274 - Nutrition Service Incentive Program (NSIP) C-2 93.053 2401CAOAHD-01 - 8,360 - Subtotal for 93.053 - 12,634 - Total Aging Cluster 168,202 140,331 - Total Department of Health and Human Services 168,202 140,331 - Department of Justice Direct Awards 2022 Edward Byrne Justice Assistance Grant 16.738 15PBJA-22-GG-02583-JAGX 20,756 - - Subtotal for 16.738 20,756 - - COPS Hiring Program (CHP) 16.710 15JCOPS-24-GG-03506-UHPX 36,067 - - Subtotal for 16.710 36,067 - - Total Department of Justice 56,823 - - Department of Transportation Pass through from State of California
Consolidated Rail Infrastructure and Safety Imp (CRISI) Program 20.325 CAA - 2020YR 78 - - Subtotal for 20.325 78 - - Total Department of Transportation 78 - - Department of Small Business Administration Direct Awards Congressionally Directed Spending (Community Project Funding) 59.059 SBAHQ24I0102 2,205,575 - - Subtotal for 59.059 2,205,575 - - Total Department of Small Business Administration 2,205,575 - - Department of the Treasury Pass through from State of California
COVID 19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 Unknown 8,314,510 - - Subtotal for 21.027 8,314,510 - - Total Department of the Treasury 8,314,510 - - Department of Homeland Security Direct Awards Staffing for Adequate Fire and Emergency Response (SAFER) 97.083 EMW-2023-FF-00136 329,861 - - Subtotal for 97.083 329,861 - - Total Department of Homeland Security 329,861 - - Total Expenditures of Federal and State Awards $ 12,194,994 $ 140,331 $ 307,127 CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Notes to the Schedule of Expenditures of Federal and State Awards 7 NOTE 1 – REPORTING ENTITY
The accompanying Schedule of Expenditures of Federal and State Awards presents the activity of all Federal Awards programs of the City of Tulare, California (the City). The City’s reporting entity is defined in Note 1 to the City’s basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included in the schedule. The information on the Schedule of Expenditures of Federal and State Awards is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

NOTE 2 – BASIS OF ACCOUNTING
Consistent with the City’s method of filing federal financial reports, the accompanying Schedule of Expenditures of Federal and State Awards is presented using the modified accrual basis of accounting. Differences, if any, between the schedule and the financial statements (presented on an accrual basis of accounting) are not material.

NOTE 3 – RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
Federal award expenditures agree or can be reconciled with the amounts reported in the City’s basic financial statements.

NOTE 4 – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
The Schedule of Expenditures of Federal and State Awards presented is prepared from only accounts of the various grant programs and, therefore, does not present the financial position of operations of the City.

NOTE 5 – OUTSTANDING LOANS
The City has issued various loans (such as homebuyer and home improvement loans) through the Community Development Block Grants/Entitlement Grants Program and HOME Investment Partnerships Program. The table below presents the cumulative federally funded loans outstanding as of June 30, 2025. Repayments received on these loans are accounted for as program income, and the loans are not subject to a continuing compliance requirement. Accordingly, the amounts noted below are not reported on the Schedule of Expenditures of Federal and State Awards.

Assistance Listing
Number Program Title
Balance
07/01/2024 Increase Decrease
Balance
06/30/2025

14.228
Community Development Block
Grants/Entitlement Grants $ - 471,725 $ (62,307) $ 409,418 $

14.239
Home Investment Partnerships Program
(HOME) 5,991,785 (243,334) 105,518 5,853,969 Total $ 6,463,510 $ 105,518 $ (305,641) $ 6,263,387 NOTE 6 – INDIRECT COST RATE
The City has elected not to use the 10 percent de minimis indirect cost rate applicable for the period July 1, 2024 through September 30, 2024, and has also elected not use the 15 percent de minimis indirect cost rate applicable for the period October 1, 2024 through June 30, 2025, as allowed under the Uniform Guidance.

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Notes to the Schedule of Expenditures of Federal and State Awards 8 NOTE 7 – AMOUNTS PROVIDED TO SUBRECIPIENTS
The City has provided federal awards to various subrecipients. For the year ended June 30, 2025, amounts provided to subrecipients from each federal program are as follows:

Name of Program
Assistance
Listing Number Subrecipient Amount
Community Development Block Grant (CDBG) 14.218 SELF-HELP ENTERPRISES - TULARE COUNTY $ 119,076 Community Development Block Grant (CDBG) 14.218 KINGS VIEW 34,114 Community Development Block Grant (CDBG) 14.218 SALT & LIGHT WORKS 58,518 Community Development Block Grant (CDBG) 14.218 HABITAT FOR HUMANITY - TULARE/KINGS COUNTIES 95,419 Total passed through to subrecipients $ 307,127
NOTE 8 – FEDERAL/STATE SHARE OF AWARDS
Some granting agencies that are reported on the City’s Schedule of Expenditures of Federal and State Awards require that State-funded expenditures be displayed discretely along with Federal expenditures.

NOTE 9 – PASS-THROUGH ENTITY IDENTIFYING NUMBERS
When Federal awards were received from a pass-through entity, the Schedule shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City has either determined that no identifying number is assigned for the program of the City was unable to obtain an identifying number from the pass-through entity.

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Schedule of Findings and Questioned Costs
9 SECTION I – SUMMARY OF AUDITOR’S RESULTS

FINANCIAL STATEMENTS
Type of auditor's report issued: Unmodified
Internal control over financial reporting:

Material weakness(es) identified? X Yes No
Significant deficiencies identified -
not considered to be material weaknesses? X Yes None reported Noncompliance material to financial statements noted? Yes X No

FEDERAL AWARDS
Internal control over major programs:

Material weaknesses identified? X Yes No
Significant deficiencies identified -
not considered to be material weaknesses? Yes X None reported Type of auditor's report issued on compliance for
major programs: Modified for ALN 21.027
Unmodified for all other Federal programs
Any audit findings disclosed that are required
to be reported in accordance with
2 CFR 200.516(a)? X Yes No
IDENTIFICATION OF MAJOR PROGRAMS:

Assistance Listing Number(s)

14.218 Community Development Block Grant

21.027 COVID19 - Coronavirus State and Local Fiscal Recovery Funds

59.059 Congressionally Directed Spending (Community Project Funding) Dollar threshold used to distinguish
between Type A and Type B programs:

Auditee qualified as low-risk auditee? Yes X No
Name of Federal Program or Cluster
$750,000
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Schedule of Findings and Questioned Costs
(Continued)
10 SECTION II – FINANCIAL STATEMENT FINDINGS
Finding 2025-001 – Incomplete Bank Reconciliation (Significant Deficiency) Condition: During our testing of cash and investments, we noted that the City’s bank reconciliations included an unreconciled difference of approximately $325,000.

Criteria: Sound financial management and internal control practices require that cash accounts be reconciled to bank statements monthly, with all differences identified and resolved timely.

Cause: The City identified discrepancies during its bank reconciliation process, but was not able to identify the cause of the cash discrepancies. Additionally, interfund transactions were posted without balancing the corresponding cash entries, which contributed to the discrepancies.

Effect: Unreconciled differences in cash accounts increase the risk of undetected errors, misstatements, or irregularities in the City’s financial records.

Recommendation: We recommend that the City perform complete and timely reconciliations of all bank accounts, ensuring all differences are identified, investigated, and resolved promptly.

Management’s Response: See Corrective Action Plan.

Finding 2025-002 – Outdated and Unsupported Overhead Cost Allocation Methodology (Significant Deficiency) Condition: The City used an overhead cost allocation methodology that has not been reviewed or updated for an extended period. The schedule is based on an old roll-forward with minor adjustments made each year; staff were unable to explain the underlying basis or rationale for the allocations. Despite this, the allocations were incorporated into the budget and approved by the City Council.

Criteria: Generally accepted accounting principles and sound financial management practices require that overhead cost allocations be based on a reasonable, supportable methodology. Such methodologies should be periodically reviewed and updated to ensure they reflect current economic conditions and service levels.

Cause: The Finance Department continued to rely on an outdated roll-forward schedule without reviewing or revising the methodology to ensure its continued relevance or accuracy.

Effect: Overhead allocations may not accurately reflect the City’s current operations and costs, which could result in misallocation of expenditures across funds and programs and reduce the reliability of budgetary information presented to decision-makers.

Recommendation: We recommend that the City develop and implement a reasonable, supportable methodology for allocating overhead costs. The methodology should be reviewed at least annually, updated as needed, and formally presented to and approved by the City Council as part of the annual budget process.

Management’s Response: See Corrective Action Plan
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Schedule of Findings and Questioned Costs
(Continued)
11 SECTION II – FINANCIAL STATEMENT FINDINGS (Continued) Finding 2025-003 – Misclassification of Cash Held in Escrow (Material Weakness) Condition: During our audit, we identified cash held in an escrow account that was reported as a receivable by the City.

The funds represented cash owned by the City and held by a third-party escrow agent; therefore, the balance should have been reported as cash and investments rather than as a receivable.

Criteria: Management is responsible for preparing financial statements in accordance with generally accepted accounting principles (GAAP). Cash and cash equivalents, including amounts held by third parties on behalf of the City that remain under the City's ownership, should be properly classified and reported as cash and investments in the financial statements.

Cause: The City did not maintain effective internal controls over financial reporting to ensure that account balances were properly evaluated and classified in accordance with GAAP during the financial close process. Specifically, management did not perform an adequate review of the nature of assets held by third parties to determine the appropriate financial statement classification, resulting in the escrow balance being incorrectly reported as a receivable rather than cash.

Effect: The misclassification resulted in an overstatement of receivables and an understatement of cash and investments in the amount of approximately $12,373,000 in the City's financial statements. Although the error did not affect the City's net position or change in net position, proper classification is necessary to ensure the financial statements are presented in accordance with GAAP. The error was material to the financial statements and required audit adjustment.

Recommendation: We recommend that the City implement procedures to identify and evaluate assets held by third parties, including escrow accounts, at year-end and ensure balances are properly classified in the financial statements.

Such procedures should include a review of supporting agreements, statements, and reconciliations to determine the appropriate accounting treatment under GAAP.

Management’s Response: See Corrective Action Plan
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Schedule of Findings and Questioned Costs
(Continued)
12 SECTION II – FINANCIAL STATEMENT FINDINGS (Continued) Finding 2025-004 Grant Reconciliation and Schedule of Expenditures of Federal Awards (Material Weakness) Condition: The grant reconciliation and Schedule of Expenditures of Federal Awards (SEFA) initially prepared by the City were materially misstated. Audit procedures identified multiple instances in which grants were improperly recognized on the grant reconciliation and SEFA, as well as one instance in which restricted grant revenue was incorrectly classified as unrestricted revenue. Significant audit adjustments were required to correct the grant reconciliation and SEFA.

Criteria: Management is responsible for establishing and maintaining internal controls to ensure that grant activity is accurately recorded, reconciled, and reported in the financial records and SEFA. In accordance with Title 2 CFR §200.302(b)(2), recipients of federal awards must maintain records that adequately identify the source and application of funds and provide accurate, current, and complete disclosure of the financial results of each federal award. The SEFA should be complete and accurately reflect all federal expenditures incurred during the fiscal year.

Cause: The City did not maintain an effective process for identifying, tracking, reconciling, and reviewing grant activity throughout the fiscal year. Additionally, grant-related accounts were not adequately reconciled to supporting documentation, resulting in errors in the grant reconciliation and SEFA preparation process.

Effect: As a result of the deficiencies described above, the grant reconciliation, SEFA, and account balances contained material errors, including approximately $3,782,000 of overstated grant revenues, the omission of a federal program with expenditures of approximately $330,000, and the misclassification of approximately $295,000 of restricted grant revenue.

These errors required material audit adjustments to properly present grant activity and federal expenditures.

Recommendation: We recommend that management strengthen controls over grant accounting and reporting by enhancing its existing grant tracking and reconciliation process. This process should include maintaining a centralized tracking of all grant awards, identifying applicable federal assistance listings, reconciling grant activity to the general ledger and supporting documentation, and performing a documented supervisory review of the grant reconciliation and SEFA prior to submission for audit. We also recommend providing additional training to personnel responsible for grant accounting to ensure a thorough understanding of grant reporting requirements, including applicable revenue recognition and compliance requirements.

Management’s Response: See Corrective Action Plan
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Schedule of Findings and Questioned Costs
(Continued)
13 SECTION III – FEDERAL AWARD FINDINGS
Finding 2025-005 – Internal Controls Over Reporting (Material Weakness) Program: COVID19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing No.: 21.027
Federal Agency: U.S. Department of Treasury
Pass-Through Agency: State of California
Federal Award Year: FY2024-25
Compliance Requirement: Reporting
Questioned Costs: None
Condition: The City did not report accurate expenditures during the year in its Project and Expenditure Quarterly Reports for the uses of ARPA funding. The reports contained incorrect project amounts and expenditure classifications due to internal control deficiencies, including insufficient review and reconciliation by someone other than the preparer.

Criteria: Per 2 CFR 200.302(b)(3) and 2 CFR 200.328, recipients of federal funds are required to maintain accurate financial records and report expenditures in accordance with federal award terms. Specifically, recipients of ARPA funding are required to submit accurate quarterly Project and Expenditure Reports to provide transparency and ensure funds are used in compliance with allowable purposes.

Cause: The inaccuracies resulted from a lack of sufficient internal controls over the reporting process.

Specifically:
 No independent review was performed to validate the accuracy and completeness of the quarterly reports.  Documentation of the expenditure allocation process was not consistently maintained to support the reported amounts.
 The timing of the prior year audit limited the City’s ability to implement corrective measures before the FY2025 reports were due.
 There was no reconciliation performed to tie underlying financial data to the quarterly reports.

Effect: The lack of accurate reporting undermines compliance with the reporting requirements of the federal award.

Although no unallowable costs were identified, the inaccuracies may necessitate correction of reported amounts in the future.

Recommendation: We recommend that the City strengthen its internal controls over the reporting process by:

1. Identifying and correcting previous reporting amounts and balances to ensure the lifetime project is properly reported.

2. Implementing a formal review process where quarterly reports are reviewed and approved by a designated individual other than the preparer.

3. Establishing a documented process for reconciling expenditures reported to the underlying accounting records and federal award guidelines.

4. Providing training to staff responsible for the preparation and review of federal compliance reports to ensure familiarity with reporting requirements.

Management’s Response: See Corrective Action Plan.

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Summary Schedule of Prior Audit Findings
14 FINANCIAL STATEMENT FINDINGS
Finding 2024-001 – Incomplete Bank Reconciliation (Significant Deficiency) Condition: During our testing of cash and investments, we noted that the City’s bank reconciliations included an unreconciled difference of approximately $120,000.

Criteria: Sound financial management and internal control practices require that cash accounts be reconciled to bank statements monthly, with all differences identified and resolved timely.

Cause: The City did not investigate and resolve reconciling items during its bank reconciliation process.

Effect: Unreconciled differences in cash accounts increase the risk of undetected errors, misstatements, or irregularities in the City’s financial records.

Recommendation: We recommend that the City perform complete and timely reconciliations of all bank accounts, ensuring all differences are identified, investigated, and resolved promptly.

Status: Partially implemented in current year. See finding 2025-001.

Finding 2024-002 – Outdated and Unsupported Overhead Cost Allocation Methodology (Significant Deficiency) Condition: The City used an overhead cost allocation methodology that has not been reviewed or updated for an extended period. The schedule is based on an old roll-forward with minor adjustments made each year; staff were unable to explain the underlying basis or rationale for the allocations. Despite this, the allocations were incorporated into the budget and approved by the City Council.

Cause: The Finance Department continued to rely on an outdated roll-forward schedule without reviewing or revising the methodology to ensure its continued relevance or accuracy.

Status: Not implemented in current year. See finding 2025-002.

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Summary Schedule of Prior Audit Findings
(Continued)
15 FINANCIAL STATEMENT FINDINGS (Continued)
Finding 2023-001 – Financial Close and Reporting (Material Weakness) Condition: The City’s financial balances and activity required various adjustments during the audit to reflect complete and accurate financial statements presented in accordance with generally accepted accounting standards in the United States of America (GAAP).

Criteria: As described in the California State Controller’s “2015 Internal Control Guidelines” an effective internal control system and timely financial reporting of all financial activity provides reasonable assurance for the safeguarding of assets, the reliability of financial information, and compliance with laws and regulations. This includes the design and implementation of control systems that ensure accurate financial reporting in accordance with applicable standards and regulations.

Cause: The City’s year-end closing process was incomplete or improperly designed, failing to identify omissions and errors in the City’s financial data in accordance with GAAP. Contributing to this issue was a lack of sufficient resources within the finance and administration department in recent years, including staff turnover and inadequate staffing levels resulting in new personnel with significant oversight over the financial close.

Effect: Various adjustments were required to correct the City’s general ledger during our audit, including the following:

1. Fund balance - opening fund balance/net position did not reconcile to the prior year ending balance reported by the City for two (2) City financial statement funds (approximate $83k misstatement in the General Fund and $169k in the internal service funds).

2. Bank reconciliation – The City’s bank reconciliations were initially misstated by approximately $141k as a result of journal entries posted by the City but not considered on the reconciliation.

3. Omission of finance leases – the City did not record debt proceeds related to the finance lease noted during the year. In addition, the related debt balances and repayment information was not included in the City’s debt schedules (approximate misstatement of $12.9m).

4. Fiduciary activities – previously reported fiduciary activities were determined to be related to the City’s own revenue source (developer impact fees) and accordingly, reclassified as a special revenue fund (approximately $21.6m restatement of fund balance/fiduciary net position).

5. Grant revenues – Grant revenues were recorded in the current year that relate to the prior year (approximately $318k overstatement of current year revenues).

6. Unrecorded loans – Unrecorded loans and interfund advances activity identified a $1.5m loan made to other organizations not recorded, in addition to interfund advances that were not repaid in accordance with City established agreements (approximate $205k misstatement).

7. Opening capital assets – Opening Capital assets balances and accumulated depreciation identified $36.7m of duplicated accumulated depreciation for various infrastructure capital assets recorded by the City, in addition to various differences in opening balances when compared to the prior year financial statements.

8. Unidentified retirement plan – Unidentified retirement plan identified a retirement plan that was not considered during the city’s calculation of liability balances under GASB68.

Recommendation: We recommend that the City reevaluate the current design of the City’s year-end close and incorporate a more rigorous review by those with appropriate skills, knowledge, and experience to identify errors and omissions of financial information in accordance with GAAP. In addition, the City should consider whether additional resources within the finance and administration department are needed to incorporate a more timely and sufficient yearend financial close process.

Status: Implemented.

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Summary Schedule of Prior Audit Findings
(Continued)
16 FEDERAL AWARD FINDINGS
Finding 2024-003 – Internal Controls Over Reporting (Material Weakness) Program: COVID19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing No.: 21.027
Federal Agency: U.S. Department of Treasury
Pass-Through Agency: State of California
Federal Award Year: FY2023-24
Compliance Requirement: Reporting
Questioned Costs: None
Condition: The City did not report accurate expenditures during the year in its Project and Expenditure Quarterly Reports for the uses of ARPA funding. The reports contained incorrect project amounts and expenditure classifications due to internal control deficiencies, including insufficient review by someone other than the preparer.

Cause: The inaccuracies resulted from a lack of sufficient internal controls over the reporting process.

Effect: The lack of accurate reporting undermines compliance with the reporting requirements of the federal award.

Although no unallowable costs were identified, the inaccuracies may necessitate correction of reported amounts in the future.

Recommendation: We recommend that the City strengthen its internal controls over the reporting process by:

1. Identify and correct previous reporting amounts and balances to ensure the lifetime project is properly reported.

2. Implementing a formal review process where quarterly reports are reviewed and approved by a designated individual other than the preparer.

3. Establishing a documented process for reconciling expenditures reported to the underlying accounting records and federal award guidelines.

4. Providing training to staff responsible for the preparation and review of federal compliance reports to ensure familiarity with reporting requirements.

Status: Partially implemented in current year. See finding 2025-005.

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Summary Schedule of Prior Audit Findings
(Continued)
17 FEDERAL AWARD FINDINGS (Continued)
Finding 2023-002 – Internal Controls Over Reporting (Material Weakness) Program: COVID19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing No.: 21.027
Federal Agency: U.S. Department of Treasury
Pass-Through Agency: State of California
Federal Award Year: FY2022-23
Compliance Requirement: Reporting
Questioned Costs: None
Condition: The City did not report accurate expenditures during the year in its Project and Expenditure Quarterly Reports for the uses of ARPA funding. The reports contained incorrect project amounts and expenditure classifications due to internal control failures, including insufficient review by someone other than the preparer.

Cause: The inaccuracies resulted from a lack of sufficient internal controls over the reporting process.

Effect: The lack of accurate reporting undermines compliance with the reporting requirements of the federal award.

Although no unallowable costs were identified, the inaccuracies may necessitate correction of reported amounts in the future.

Recommendation: We recommend that the City strengthen its internal controls over the reporting process by:

1. Implementing a formal review process where quarterly reports are reviewed and approved by a designated individual other than the preparer.

2. Establishing a documented process for reconciling expenditures reported to the underlying accounting records and federal award guidelines.

3. Providing training to staff responsible for the preparation and review of federal compliance reports to ensure familiarity with reporting requirements.

Status: Partially implemented in current year. See finding 2025-005.

CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Corrective Action Plan
18 CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2025
Corrective Action Plan
(Continued)
19 Item #: 8.3
General Business
Staff Report
City Council
Date: September 15, 2026
Department: Community Services
Submitted by: Chris Orr, Community Services Director
Agenda Title: Community Gardens Presentation

RECOMMENDED ACTION
Receive a presentation regarding community gardens and the Community Health Trust of Pajaro Valley and City of Watsonville community garden partnership.

ALIGNMENT WITH STRATEGIC PRIORITIES
Quality of Life and Community Engagement

SUMMARY
Staff researched community garden programs and partnerships implemented by other agencies to provide the City Council with information regarding community garden models and practices.

As part of that research, staff identified a partnership between the Community Health Trust of Pajaro Valley and the City of Watsonville. The organizations have partnered for approximately five years and currently support four community gardens located within City of Watsonville parks.

Gustavo Indarose with the Community Health Trust of Pajaro Valley and Leonardo Cruz with the City of Watsonville will provide an informational presentation to the City Council regarding their community garden partnership and experience. The presentation is intended to provide Council with information about an established community garden model and an opportunity to ask questions and learn from the participating organizations.

No action regarding the establishment of a City of Tulare community garden program is proposed as part of this item.

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
Council may provide direction to staff regarding community gardens following the presentation.

ATTACHMENTS
None
Reviewed/Approved: TG
Item #: 8.4
General Business
Staff Report
City Council
Date: September 15, 2026
Department: City Manager
Submitted by: Thomas W. Gaffery IV, Assistant City Manager Agenda Title: Discussion Regarding a Potential Data Center Study Session

RECOMMENDED ACTION
Discuss and provide direction regarding whether to schedule a City Council study session concerning data centers and, if desired, identify topics to be addressed as part of the study session.

ALIGNMENT WITH STRATEGIC PRIORITIES
Organizational Excellence

SUMMARY
At the September 1, 2026, City Council meeting, Council discussed a request to place an item on a future agenda regarding a potential moratorium on data center permits. A majority of the Council did not express support for placing a discussion of a moratorium on a future agenda. Council did, however, express interest in considering whether a study session or presentation regarding data centers and related City processes would be beneficial.

This item is being presented to allow the Council to determine whether there is majority interest in scheduling a study session and, if so, to provide general direction regarding the scope of the discussion.

Potential topics could include the City's existing entitlement and development review processes applicable to data centers, applicable land use and zoning regulations, infrastructure and utility considerations, and other topics identified by the Council.

No study session has been scheduled at this time, and no policy or regulatory action regarding data centers is proposed as part of this item. If a majority of the Council supports scheduling a study session, staff will use Council's direction to develop the scope and identify the appropriate staff and other resources necessary for a future presentation.

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
Council may modify the scope of a potential study session, determine that a study session is not necessary, or defer the discussion to a future meeting. Staff will proceed in accordance with the direction provided by a majority of the Council.

ATTACHMENTS
None
Reviewed/Approved: TG
Item #: 8.5
General Business
Staff Report
City Council
Date: September 15, 2026
Department: City Manager
Submitted by: Thomas W. Gaffery IV, Assistant City Manager Agenda Title: Measure A Voter Education Update

RECOMMENDED ACTION
Receive an update regarding the City's Measure A voter education efforts (informational only).

ALIGNMENT WITH STRATEGIC PRIORITIES
Quality of Life and Community Engagement

SUMMARY
Measure A, the City of Tulare Services Measure, will appear on the November 3, 2026, ballot. The City is conducting voter education efforts to provide the community with factual information regarding the measure, the City's financial condition, and City services funded by the General Fund.

Staff will provide a verbal update on voter education activities completed to date, current efforts, and planned activities leading up to the November election. The City's voter education efforts are intended to provide factual, impartial information to help residents understand Measure A and its potential impacts.

FISCAL IMPACT & FUNDING SOURCES
There is no additional 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
As this item is informational, no additional action is required.

ATTACHMENTS
None
Reviewed/Approved: TG

Tulare City CouncilSeptember 15, 2026

Tulare City Council
September 15, 2026