City of Vacaville Agenda for the City Council,
Successor Agency to the Redevelopment
Agency, Housing Authority,
Groundwater Sustainability Agency and
Public Financing Authority
Tuesday, May 12, 2026
06:00 PM
Vacaville City Hall Council Chamber
650 Merchant Street
Entrance to the council Chamber is located
in the parking area off of Walnut Avenue
___________________________________________________________________________ The City of Vacaville is committed to providing meeting facilities that are accessible to persons with disabilities.
Council meetings can be viewed live on the City of Vacaville's website at www.cityofvacaville.com (select the link to view the meeting from the Agenda/Minutes page), on the City’s YouTube account, or Cable Channel 26. Comments on agenda items can be emailed to the City Clerk up to 3:30p.m. prior to the meeting by emailing [email protected]. Please include the item number on which you wish to comment. Written comments will be provided to the City Council for consideration before Council action and will be made available to the public for review. Comments received are kept as part of the record of the meeting. In compliance with the Americans with Disabilities Act, if you need special assistance, please contact the City Clerk’s Office at (707) 449-5100.
All items on the agenda can be opened for public comment before final action is taken. After staff has presented the item, the Mayor will open the matter for comments from the public. Items on the Consent Calendar are routine business items that require no discussion and are acted upon in one motion. However, any item on the Consent Calendar can be removed and discussed separately upon request. The item “Business from the Floor” is the time to address the Council on matters that are not on the agenda and are within the Council’s subject matter jurisdiction.
Comments should be kept to a maximum of three minutes per speaker or group spokesperson (per Government Code § 54954.3(a); VMC §2.0.4.130); the Mayor has the discretion to change the time limit to accommodate the meeting schedule and public interest.
Gov. Code § 84308 (Levine Act): Parties to any proceeding involving a license, permit, or other entitlement for use pending before the City Council must disclose any campaign contribution over $500 (aggregated) within the preceding 12 months by the party, their agent, and those required to be aggregated with their contributions under Gov. Code § 82015.5. The disclosure must include the amount contributed and the name(s) of the contributor(s). "Levine Act: Yes" on this agenda indicates that the item is subject to these regulations.
Closed Session - None
Pursuant to California Government Code Section 54950, et seq.
Roll Call for the Regular Meeting
Mayor/Chair John Carli
Vice Mayor/Vice-Chair Michael Silva, District 3
Council/Agency/Authority Member Roy Stockton, District 1 Council/Agency/Authority Member Greg Ritchie, District 2
1. 2.
Council/Agency/Authority Member Sarah Chapman, District 4 Council/Agency/Authority Member Ted Fremouw, District 5 Council/Agency/Authority Member Jeanette Wylie, District 6 Moment of Silence followed by the Pledge of Allegiance
Report out of Closed Session - None
Approval of Agenda
Reports of the City Council
Update on Recent Attended Boards, Commissions, and Committee Meetings Reports of City Manager
Presentations
Older Americans Month Proclamation
(Staff Contact: Courtney Collier, Recreation Supervisor (707) 469-6672) Public Works Week Proclamation
(Staff Contact: Brian Oxley, Director of Public Works (707) 449-5313) Consent Calendar
Resolution Accepting the Financial Audit for FY24/25
(Staff Contact: Swapna Panigrahi, Accounting Manager (707) 449-5394) Individual Action: By simple motion, adopt the subject resolution.
Fiscal Impact:
Amount Requested: There are no funds requested for this item.
Funding Source: Not applicable
Budget Distribution: The costs of staff time associated with this item are covered within the existing Finance Department operating budget.
Strategic Plan Goal/Initiative:
Goal #4: Maintain Efficient and Effective Services
Initiative 4A: Ensure Fiscal Sustainability
Levine Act: No
Resolution Authorizing the Chief of Police to Execute a Professional Services Agreement with AP Triton, LLC for a Police Department Operational and Organizational Assessment and Fire Department Master Plan at a Total Cost of $128,750; and, Amending the Fiscal Year 2025-26 Capital Improvement Program Budget
(Staff Contact: Bryan Larsen, Police Captain (707) 469-4823 and David Casalnuovo, Police Sergeant (707) 449-5290)
3. 4.
5. 6.
6.a
7. 8.
8.a
8.b
9. 9.a
9.b
Tuesday, May 12, 2026
Individual Action: By simple motion, adopt the subject resolution.
Fiscal Impact:
Amount Requested: $128,750
Funding Source: General Fund (1001), Police Development Impact Fees (4103), Fire Development Impact Fees (4104)
Budget Distribution: If approved by Council, the CIP budget will be amended by $128,750 and a project will be established with $50,670 from one-time FY26 Police Department Salary Savings (1001.60.6028100), $50,000 from Police Development Impact Fees (4103.60.0000.800), and $28,080 from Fire Development Impact Fees (4103.65.0000.800).
Strategic Plan Goal/Initiative:
Goal #1: Ensure Public Safety
Initiative 1A: Manage Changing Paradigm for Police
Goal #3: Protect Vacaville's Quality of Life
Levine Act: No
Resolution Approving a No-Cost One-Year Extension Amendment to the BSCC Organized Retail Theft Prevention Grant Agreement
(Staff Contact: Katie Cardona, Police Captain (707) 469-4801) Individual Action: By simple motion, adopt the subject resolution.
Fiscal Impact:
Amount Requested: There are no funds requested for this item.
Funding Source: Board and State of Community Correction (BSCC) grant (2920) Budget Distribution: The costs associated with this item are covered within the existing operating budget for the department.
Strategic Plan Goal/Initiative:
Goal #1: Ensure Public Safety
Goal #4: Maintain Effective and Efficient Services
Levine Act: No
Approval of Minutes – Approve the Minutes for the Meeting of Apr 28, 2026 (Staff Contact: Michelle Thornbrugh, City Clerk (707) 449-5100) Individual Action: By simple motion, approve the minutes.
Fiscal Impact:
Amount Requested: There are no funds requested for this item Funding Source: Not applicable
Budget Distribution: The costs of staff time associated with this item are covered within the existing City Clerk's operating budget.
Strategic Plan Goal/Initiative:
Goal #4: Maintain Effective and Efficient Services
Levine Act: No
Approval of Accounts Payable and Payroll Payment of Claims for the Weeks Ending April 24, 2026; and May 1, 2026; and Wire and ACH Disbursements for the Month of April 2026
(Staff Contact: Ken Matsumiya, Director of Finance (707) 449-5180) Individual Action: By simple motion, approve the item.
9.c
9.d
9.e
Tuesday, May 12, 2026
Fiscal Impact:
Amount Requested: Not applicable
Funding Source: Various
Budget Distribution: The costs associated with staff time for this item are fully supported within the Finance Department's operating budget.
Strategic Plan Goal/Initiative:
Goal 4: Maintain Effective and Efficient Services
Levine Act: No
Business from the Floor
This is the time to address the Council with issues that are not on the agenda that are within the Council’s subject matter jurisdiction. With certain exceptions, the City Council may not discuss or take action on items that are not on the agenda. Members of the audience wishing to address a specific agendized item are encouraged to offer their public comment during consideration of that item.
Comment is limited to three minutes per speaker or group spokesperson per Government Code §54954.3(a); VMC §2.04.130.
Public Hearings - None
Business
Presentation of the Draft Community Development Block Grant for Program Year 2026-2027 Annual Action Plan
(Staff Contact: Matilda Horace, Housing Services Administrator (707) 449-5038) Recommended Action: Receive report, open discussion, and provide direction to staff.
Fiscal Impact:
Amount Requested: There are no funds requested for this item.
Funding Source: Department of Housing and Urban Development, Community Development Block Grant Entitlement funding.
Budget Distribution: Upon approval of the action plan, the budget will be loaded into the appropriate CDBG grant funds/accounts for the approved activities.
Strategic Plan Goal/Initiative:
Goal 2: Strengthen the Local Economy
Goal 3: Protect Vacaville's Quality of Life
Goal 5: Promote Community Engagement and Increased Equity and Inclusion Levine Act: No
Informational Update on the City of Vacaville Budget Process - Budget 101 (Staff Contact: Ken Matsumiya, Director of Finance (707) 449-5180) Recommended Action: Council to receive the information.
Fiscal Impact:
Amount Requested: There are no funds requested for this item.
Funding Source: Not applicable
Budget Distribution: The costs of staff time associated with this item are covered within the existing Finance Department operating budget.
Strategic Plan Goal/Initiative:
Goal 4: Maintain Effective and Efficient Services
10. 11.
12. 12.a
12.b
Tuesday, May 12, 2026
Initiative 4A: Ensure Fiscal Sustainability
Levine Act: No
Adjournment
All public records relating to an open session item that are not exempt from disclosure pursuant to the Public Records Act and that are distributed to a majority of the City Council will be available for public inspection during normal business hours at the City Administration Counter at City Hall, 650 Merchant Street. The City may charge customary photocopying charges for requested copies of such documents.
This agenda and related materials may also be available on the City's website under Public Meetings and Agendas' subject to our staff's ability to pose the documents prior to the meeting. To view City Council meetings, tune in to cable Channel 26, or log onto the City's website at www.cityofvacaville.com to watch the meeting live or on-demand. If you have any questions, please contact the City Clerk's office at (707) 449-5100.
I declare that the agenda for the Regular Meeting of the City Council/Successor Agency to the Redevelopment Agency/Groundwater Sustainability Agency/Public Financing Authority was posted and available for review by the time and place prescribed by law. ______________________________
Michelle A. Thornbrugh, City Clerk
13. Tuesday, May 12, 2026
CITY OF VACAVILLE
City Council
Staff Report
Meeting Date: May 12, 2026
To: Honorable Mayor and City Council Members
Attention: Savita Chaudhary, City Manager
From: Director Ken Matsumiya, Finance
(Swapna Panigrahi, Accounting Manager (707) 449-5394)
Subject: Resolution of the City Council of the City of Vacaville Accepting the Financial Audit FY24/25
Actions for Consideration:
Receive and accept the fiscal year 2024-25 financial audit results and related financial reports.
Recommendations:
By simple motion, adopt the subject resolution.
Background:
The City is required to have an independent financial audit performed every fiscal year. The fiscal year 2024-25 financial audit was conducted by the CPA firm, LSL, LLP (LSL). The goal of a financial statement audit is to provide users with a reasonable assurance from an independent source that the information presented in the statements is reliable. The attached Annual Comprehensive Financial Report (ACFR) was deemed neutral, consistent, and clear in the opinion of the City’s independent auditor and received an “unmodified opinion” which is the goal of the City.
The ACFR was submitted to the Government Finance Officers Association for consideration as part of the Certificate for Excellence in Financial Reporting program. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting. The City has received the GFOA certification for the last 33 years and believes that the recent report meets the requirements to again merit GFOA recognition.
Discussion:
The external, independent audit of the City’s fiscal year 2024-25 financials was completed on March 31, 2026, three months earlier than the previous fiscal year as staffing challenges had resulted in delays with the issuance of the ACFR in recent years. The ACFR (Attachment 1) provides a detailed view of the City’s financial condition, including its activities (ex. Where was the funding spent? How much revenue did the City bring in?) and balances (ex. How much cash does the City have? What are its liabilities?) for the fiscal year. The report must comply with the accounting requirements established by the Government Accounting Standards Board Item 9.a
and must be audited by an independent auditor using generally accepted government auditing standards. As part of the audit engagement, the auditors:
• Examine internal controls, processes, and procedures
• Perform testing of account balances and transactions, including substantiation of transactions and analytic procedures
• Perform compliance testing with laws, regulations, grant agreements, and contracts
• Provide feedback to management
The auditors perform this work to ultimately render an opinion on the City’s ACFR. The City received an unmodified opinion which means the financial statements are accurate and reliable with no material misstatements for the fiscal year audited (2024-25). In addition to the audit opinion, the auditors also issue an Audit Communication Letter (Attachment 2) to the governing board and a report on internal controls and compliance (Attachment 3).
The Audit Communication Letter communicates and advises on matters related to the audit process and relays any issues found as they relate to the division of responsibilities between the independent auditor and management, management disagreements, audit adjustments, and accounting estimates used to prepare the ACFR. As stated in the letter, the auditors identified no material audit adjustments, fraud, waste, or abuse, had no disagreements with management about the application of accounting principles, and no difficulties conducting the audit. Although the City received an unmodified opinion on its ACFR, there was one finding identified in the report on internal controls and compliance related to staff turnover, Untimely Bank Reconciliations. Though this finding did not result in any errors, fraud, or misstatements in the City’s financial statements, City staff fully understands the importance of addressing the finding and is confident this will not be an issue with the current year audit now that the senior accounting positions are staffed.
The final attachment to this report (Attachment 4) is the City’s Popular Annual Financial Report (PAFR). The report is a simplified, summarized version of the City’s ACFR and is designed to be easily understood by the general public, including those without a background in finance.
The goal is to provide transparency and insight into the financial health and activities of the City.
Both the ACFR and PAFR can be found on the City’s website at the page below. https://www.cityofvacaville.gov/government/finance/financial-reports The Government Finance Officers Association has recognized the City as a GFOA Triple Crown Winner the last several years, which is a recognition awarded to governments that have received GFOA’s awards for all financial reports (ACFR, PAFR, and Budget) in the same fiscal year. The City has submitted all three reports for consideration again this year.
Environmental Impact:
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project that has the potential to result in either a physical change in the environment or a Item 9.a
reasonably foreseeable indirect physical change in the environment, pursuant to California Code of Regulations Title 14 Section 15378(b)(5). No further environmental review is required.
Fiscal Impact:
Amount Requested: There are no funds requested for this item.
Funding Source: Not applicable
Budget Distribution: The costs of staff time associated with this item are covered within the existing Finance Department operating budget.
Alternatives:
No alternative recommendation.
Strategic Plan Goal/Initiative:
Initiative 4A: Ensure Fiscal Sustainability
Levine Act:
No
Attachments:
Action Item - Resolution
Attachment 1: Annual Comprehensive Financial Report
Attachment 2: Audit Communication Letter
Attachment 3: 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 Attachment 4: Popular Annual Financial Report
Item 9.a
City of VacavilleCity of Vacaville
F i s c a l Y e a r 2 0 2 4 - 2 0 2 5
Annual Comprehensive Financial Report
Item 9.a
Item 9.a
City of Vacaville, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended
June 30, 2025
Prepared by:
Finance Department
Item 9.a
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Item 9.a
Page
Number
INTRODUCTORY SECTION
Letter of Transmittal i
Organization Chart - City iv
List of Elected and Appointed Officials v
Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting vi
Organization Chart vii
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT 1
MANAGEMENT'S DISCUSSION AND ANALYSIS 5
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Position 23
Statement of Activities 24
Fund Financial Statements:
Balance Sheet - Governmental Funds 26
Reconciliation of the Balance Sheet of Governmental Funds 28 Statement of Revenues, Expenditures
and Changes in Fund Balances - Governmental Funds 29
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 31 Proprietary Funds:
Statement of Net Position 33
Statement of Revenues, Expenses, and Changes in Fund Net Position 34 Statement of Cash Flows 35
Fiduciary Funds:
Statement of Fiduciary Net Position 38
Statement of Changes in Fiduciary Net Position 39
Notes to the Basic Financial Statements 41
to the Statement of Net Position
TABLE OF CONTENTS
CITY OF VACAVILLE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Item 9.a
Page
Number
TABLE OF CONTENTS
CITY OF VACAVILLE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Data 108
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:
General Fund 109
Successor Housing Special Revenue Fund 110
Housing Assistance Special Revenue Fund 111
Special Programs Fund 112
Schedule of Changes in Net OPEB Liability and Related Ratios 113 Schedule of OPEB Contributions 114
Schedule of Changes in Net Pension Liability and Related Ratios - Miscellaneous Plan 115 Schedule of Changes in Net Pension Liability and Related Ratios - Safety Plan 116 Schedule of Plan Contribution - Miscellaneous Plan 117
Schedule of Plan Contribution - Safety Plan 118
Schedule of Changes in Net Pension Liability and Related Ratios - PARS Miscellaneous Plan 119 Schedule of Changes in Net Pension Liability and Related Ratios - PARS Safety Plan 120 Schedule of Plan Contribution - PARS Miscellaneous Plan 121 Schedule of Plan Contribution - PARS Safety Plan 122
SUPPLEMENTARY INFORMATION
Non-Major Governmental Funds:
Combining Balance Sheet 125
Combining Statement of Revenues, Expenditures and Changes in Fund Balance 127 Special Revenue Funds - Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:
Building and Street Development 129
Community Development 130
Maintenance Districts 131
Community Facilities 132
Internal Service Funds:
Combining Statements of Net Position 134
Combining Statements of Revenues, Expenses and Changes in Fund Net Position 135 Combining Statement of Cash Flows 136
Fiduciary Funds:
Combining Statement of Fiduciary Net Position - Custodial Funds 138 Combining Statement of Changes in Fiduciary Net Position - Custodial Funds 140 Item 9.a
Page
Number
TABLE OF CONTENTS
CITY OF VACAVILLE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
STATISTICAL SECTION
Schedule 1 - Net Position by Component 143
Schedule 2 - Changes in Net Position, Primary Government 144 Schedule 2a - Changes in Net Position, Governmental Activities 145 Schedule 2b - Changes in Net Position, Business-Type Activities 146 Schedule 3 - Fund Balances, Governmental Funds 147
Schedule 4 - Changes in Fund Balances, Governmental Funds 148 Schedule 5 - Assessed Value and Actual Value of Taxable Property 149 Schedule 6 - Direct and Overlapping Property Tax Rates 150 Schedule 7 - Principal Property Tax Payers 151
Schedule 8 - Property Tax Levies and Collections 152
Schedule 9 - Ratios of Outstanding Debt by Type 153
Schedule 10 - Direct and Overlapping Debt 154
Schedule 11 - Legal Debt Margin Information 155
Schedule 12 - Pledged-Revenue Coverage 156
Schedule 13 - Demographic and Economic Statistics 157
Schedule 14 - Principal Employers 158
Schedule 15 - Full-time Equivalent City Government Employees by Function/Program 159 Schedule 16 - Operating Indicators by Function/Program 160 Schedule 17 - Capital Asset Statistics by Function/Program 161 Item 9.a
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Item 9.a
CITY OF VACAVILLE
FINANCE DEPARTMENT
650 Merchant Street • Vacaville, CA 95688 • CityofVacaville.gov • 707.449.5450 March 31, 2026
To the Honorable Mayor, Members of the City Council, and Citizens of the City of Vacaville:
It is
my pleasure to present the Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2025.
This report reflects the City’s ongoing commitment to transparency, accountability, and the careful stewardship of
public resources. The information contained herein represents management’s assertions regarding the City’s financial condition, and we take full responsibility for its accuracy and completeness.
To
support these representations, the City maintains a comprehensive internal control framework designed to safeguard assets and ensure reliable financial reporting. Because internal controls must balance effectiveness and cost, this system provides reasonable, rather than absolute, assurance that the financial statements are free from material misstatement. To the best of our knowledge, this report is complete and reliable in all material respects.
The City’s financial statements have been audited by LSL, LLP, independent certified public accountants.
Their work included an examination of our financial records as well as evaluations of internal controls and c
ompliance. The auditor issued an unmodified opinion, which is the highest level of assurance an auditor can give, on the City’s financial statements which can be found at the beginning of the Financial Section of this report. In simpler terms, an unmodified opinion means the auditors believe the City’s financial statements present
our financial position fairly and accurately, in accordance with generally accepted acc ounting principles, and that no significant is sues were found that would cause them to question the integrity of the information provided.
The auditors also performed a federally required Single Audit, which examines internal controls and compliance related specifically to federal grants. Those reports are issued separately and are available in the City’s Single Audit Report.
Management’s
Discussion and Analysis (MD&A), which appears immediately after the Independent Auditor’s Report, offers a narrative overview and analysis of the financial statements and should be read in conjunction with this letter.
Profile
of the City
Incorporated in 1892, the City of Vacaville lies in Northern Solano County along the I-8 0 corridor, roughly midway between San Francisco and Sacramento. Covering about 30 square miles, the community combines
a rich agricultural heritage with well-p lanned growth, all within easy reach of destinations such as Napa and
Lake Tahoe. As of January 1, 2025, the State Department of Finance estimates Vacaville’s population at 103,181.
Vacaville operates under the council-m anager form of government and is a general law city under California law. In 2020, the City transitioned from at-large elections to a seven-member district-based council, including the mayor. The City Council serves as the policy-making body, while the City Manager oversees daily operations and appoints department directors.
The
City provides a full complement of municipal services, including public safety, public works, parks and recreation, economic development, utilities, transportation, and housing programs. The City is also financially accountable for the dissolution of the Successor Agency obligations , the Vacaville Housing Authority, and the Vacaville Public Financing Authority; therefore, these entities are included in the City’s financial statements.
Additional information on these legally separate entities can be found in Note 1 in the Notes to the Financial Statements.
The annual budget is the foundation of the City’s financial planning and control. The City Manager proposes the
budget to the City Council each year through budget study sessions with Council adoption no later than June 30, which is the end of the City’s fiscal year. Appropriations are controlled at the fund and department level, and budget-to-a ctual comparisons for each governmental fund with an adopted budget appear in the Required Supplementary Information section of this ACFR. i
Item 9.a
Local
economy. Vacaville has evolved from its agricultural and rail -shipping roots into a regional hub for retail, commercial services, and advanced biomanufacturing. Home to approximately 103,000 residents – including those housed in state correctional and medical facilities – the City benefits from a well -educated population, with over 91% holding at least a high school diploma and more than 27% holding a bachelor’s degree. Unemployment increased from 4.1% in 2024 to 4.5% in 2025 but continues to remain below both the state and nation’s 5% rates.
Kaise
r Permanente, Amazon Services, and Lonza rank among the community’s largest employers. The local economy is anchored by healthcare, retail, food services, and wholesale trade. Vacaville also continues to solidify its role as a leader in bio and advanced manufacturing; the acquisition of Genentech’s facility by Lonza signals ongoing expansion in this sector. The City also maintains a vibrant retail environment, including the Nut Tree and Vacaville Premium Outlets.
Despi
te inflationary pressures and higher borrowing costs nationwide, Vacaville’s long -term outlook remains favorable. The City’s strategic location – within 60 miles of major universities and home to Solano Community College’s renowned biotechnology program – supports a robust pipeline. Vacaville also offers diverse and comparatively affordable housing options, low crime rates, and excellent freeway access.
Priorit
ies for the future. The City’s most recent strategic plan, adopted in 2021, outlines five long -term goals:
ensuring public safety; strengthening the local economy; protecting Vacaville’s quality of life; maintaining effective and efficient services; and promoting community engagement, equality, and inclusion. These goals are supported by targeted initiatives that continue to guide the City’s work.
In addit
ion to these ongoing efforts, the City has begun developing its next five-year strategic plan. City leadership and the City Council held a strategic planning retreat in January 2026 to discuss priority areas and emerging challenges. The updated strategic plan is scheduled to be presented to the City Council in April 2026, and upon adoption, will take effect at the start of the 2026-27 fiscal year. This new plan will serve as a roadmap for the City’s long-range direction, aligning future initiatives, resource planning, and organizational focus with the community’s evolving needs.
Long-term
financial planning. To maintain high-quality infrastructure and plan for future needs, the City updates its Capital Improvement Program (CIP) every year. The proposed budget for the upcoming fiscal year is $50,068,166, including over $32 million in Utilities funding for drilling and equipping a new municipal well (Well 20) and a new waterline from I-505 to N. Meridian Road.
Long-term
infrastructure plans, including water, wastewater, and transportation projects, are forecast over five -to- ten-year horizons. Though new General Fund and Measure M allocations are paused for the coming fiscal year due to deficit spending, the CIP remains active and robust.
Relevan
t financial policies. The City’s General Fund Reserve Policy is a key component of its long- term fiscal framework. Originally adopted in 2011 and most recently updated in 2022, the policy establishes a minimum reserve level equal to 20% of ongoing expenditures. Thanks to the growth of property and sales tax revenues – including Measure M – over the years, the City has exceeded this target regularly. As part of the City ’s broader strategic planning efforts and updated General Fund Reserve Policy will be presented to Council in April 2026. This update incorporates feedback received from the most recent strategic plan retreat and insights gathered through community focus group meetings. This new policy update will focus primarily on the allocation of excess reserves and the prioritization of long- term investments such as infrastructure improvements, internal service fund support, organizational and community programs, and reducing the City’s unfunded liabilities.
The Ci
ty also maintains a financial policy for funding Other Post -Employment Benefits (OPEB), adopted in 2015, which set a goal of fully funding the actuarially determined contribution (ADC) by 2020. The City has successfully met this goal since 2018.
Looking
forward, the City will also work on an updated procurement policy in FY 2026-27. This effort will be guided by recommendations from an external procurement assessment conducted this year, and will aim to enhance best practices, streamline internal processes, and reinforce internal controls across procurement activities. ii
Item 9.a
Major initiatives. Like many California cities, Vacaville is navigating a long-term structural budget imbalance in which ongoing expenditures are rising faster than ongoing revenues. Multi -year financial forecasts indicate that, even after significant cost-saving efforts, the City faces a projected annual gap of approximately $9 million, growing to nearly $13 million if current mitigation measures are not continued. This imbalance is driven by familiar pressures across the municipal landscape: rising public safety and emergency service costs, inflation in materials and equipment, and increased service demands from a growing community. Despite these challenges, the City’s General Fund reserves remain healthy in the near term, currently projected at about 27% of annual expenditures, or roughly three months of operating costs. However, under current projections, reserves would fall below the City’s adopted policy target in future years if the structural gap is not addressed.
To
ensure long-term fiscal sustainability, the City has undertaken a series of short- and medium-term actions to help reduce immediate pressures. These include targeted departmental reductions, hiring freezes for select positions, deferred maintenance and capital projects, and strategic use of one- time funds to address short -term gaps.
Additional revenue-focused adjustments are also underway, including implementation of credit card and e-payment processing fees, a citywide user- fee study to ensure cost recovery in accordance with state law, and updates to cell-site leasing practices that may generate additional non-tax revenues.
Whi
le these actions help stabilize the immediate outlook, they do not fully resolve the long- term structural deficit.
As a result, the City Council has initiated a major public engagement effort to evaluate a potential one- cent local sales tax measure for the November 2026 ballot. This initiative includes voter research, community outreach, and public education to ensure residents have clear, accessible information about the City ’s fiscal challenges, service needs, and options for creating a more sustainable revenue base. If pursued and ultimately approved by voters, such a measure would help align ongoing revenues with the rising cost of essential services and reduce reliance on reserves or one-time solutions.
Toget
her, these efforts reflect the City’s commitment to long-term financial health, responsible stewardship of public resources, and maintaining the high-quality services that Vacaville residents expect.
Aw
ards and Acknowledgements
The
Government Finance Officers Association (GFOA) awarded the City of Vacaville a Certificate of Achievement for Excellence in Financial Reporting for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023. This recognition marked the 32nd consecutive year the City has received this prestigious honor, reflecting our long-standing commitment to producing transparent, well-organized, and high-quality financial reports.
The C
ity has submitted its 2024 ACFR to GFOA for review, and while the evaluation is still pending, we are confident that the report continues to meet the rigorous standards required for recognition and will extend our multi -decade streak of achievement. The City also received its ninth consecutive GFOA award for its Popular Annual Financial Report (PAFR) in 2023 and was recognized as a GFOA Triple Crown winner, reflecting excellence across our ACFR, PAFR, and annual budget.
Thi
s year, I would like to extend special appreciation to the Accounting team. The June 30, 2025 ACFR was completed three months faster than the FY 2024 report – quite an accomplishment given the significant transitions and staffing changes the division has navigated over the past several years. Their dedication, professionalism, and continued resilience made meeting this deadline possible.
Fin
ally, I wish to acknowledge the Mayor, Vice-Mayor, and City Council for their consistent support of strong financial management practices and their commitment to maintaining the highest standards of public accountability.
Re
spectfully submitted,
Sav
ita Chaudhary
City Manager
iii
Item 9.a
CITY OF VACAVILLE ORGANIZATIONAL CHART
CITIZENS OF VACAVILLE
CITY COUNCIL CITY CLERKCITY TREASURER
COMMISSIONS (APPOINTED)
PLANNING
PARKS & RECREATION
CITY MANAGER'S OFFICE CITY ATTORNEY'S OFFICE
HUMAN RESOURCES FINANCE
ECONOMIC DEVELOPMENT
PARKS & RECREATION COMMUNITY DEVELOPMENT
HOUSING & COMMUNITY SRVS
POLICE FIRE
UTILITIES PUBLIC WORKS
iv
Item 9.a
City of Vacaville
List of Elected and Appointed Officials
June 30, 2025
Elected Officials
Mayor, Member-At-Large
Vice-Mayor, District 2
Council Member, District 1
Council Member, District 3
Council Member, District 4
Council Member, District 5
Council Member, District 6
City Treasurer
City Clerk
Appointed Officials
City Manager
City Attorney
Assistant City Manager
Director of Finance
Director of Human Resources
Fire Chief
Chief of Police
Director of Public Works
Director of Economic Development
Director of Community Development
Director of Housing and Community Serv
ices
Director of Parks and Recreation
Director of Utilities
John Carli
Gregory Ritchie II
Roy Stockton
Michael Silva
Sarah Chapman
Ted Fremouw
Jeanette Wylie
Jay Yerkes
Michelle Thornbrugh
Savita Chaudhary
Melinda Stew
art
GeorgeAnne Meggers-Smith
Ken Matsumiya
Jessica Bowes
Kristian Concepcion
Chris Polen
Brian McLean
Don Burrus
Erin Morris
Tamara Colden
Bruce Mulder
Justen Cole
v
Item 9.a
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Vacaville
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
vi
Item 9.a
DIRECTOR OF FINANCE
FINANCE DEPARTMENT
TOTAL FULLTIME POSITIONS 30
BUDGET
BUDGET MANAGER 1
BUDGET ANALYST 1
MANAGEMENT ANALYST 2
REVENUES
FINANCE SUPV 1
FINANCE TECH 2
FINANCE ASST I/II 3
ACCOUNTING
ACCOUNTING MGR 1
SENIOR ACCT 1
ACCOUNTANT I/II 2
FINANCE TECH 1
UTILITY BILLING
FINANCE SUPV 1
FINANCE TECH 1
FINANCE ASST I/II 3
WATER SERVICES
WATER SRVCS COORD 1
WATER SRVCS REP I/II 2
DISBURSEMENTS
FINANCE SUPV 1
ADMIN TECH 1
FINANCE TECH 1
FINANCE ASST I/II 2
ASSISTANT DIRECTOR OF FINANCE 1
vii
Item 9.a
LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Vacaville, 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 Vacaville, California, (hereafter, 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 opi nio
n, the financial statements referred to above pr esent fairly, in all material respects, the respective financial position of the governmental activities, the bus iness-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 responsibilit ies under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial St atements section of our repor t. We are required to be independent of the City and to meet our other ethical res ponsibilities, 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.
Emphasis of Matter
Change in Accounting Principle
As described
in Note 1 to the financial statements, in 2025, the City adopted new accounting guidance, GASB Statement No. 101, Compensated Absences. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Manag
ement 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, incl uding any currently known information that may raise substantial doubt shortly thereafter.
1 Item 9.a
To the Honorable Mayor and Members of the City Council
City of Vacaville, California
Auditors’ 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 auditors’ 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 wi th 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 respon sive 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 a ccounting 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, budgetary comparison information, and r equired pension and other post-employment benefits schedules as listed on 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 appropriat e 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 informati on for consistency with management’s responses to our inquiries, the basic financial statements, and other knowle dge 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. 2 Item 9.a
To the Honorable Mayor and Members of the City Council
City of Vacaville, California
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 i ndividual fund financial statements and schedules (supplementary information) 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 finan cial statements or to the basic financial statements themselves, and other additional procedures in accordan ce with auditing standards generally accepted in the United States of America. In our opinion , the supplementary information is 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 auditors’ 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 also issued our report dated March 31, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, cont racts, and grant agreements and other matte rs. 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 pa rt of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.
Sacramento, California
March 31, 2026
3 Item 9.a
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4 Item 9.a
CITY OF VACAVILLE
Management’s Discussion and Analysis
For the year ended June 30, 2025
(Amounts expressed in thousands)
As management of the City of Vacaville (the City), we offer this narrative overview and analysis of the financial activities for the fiscal year ended June 30, 2025. We encourage readers to consider the information presented here in conjunction with additional information furnished in our letter of transmittal, which can be found on pages i-iv of this report. All amounts, unless otherwise indicated, are expressed in thousands of dollars.
Financial Highlights
Assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources at June 30, 2025 by $939,740 ( net position ). Of this amount, $15,991 ( unrestricted net position ) includes the City’s net pension liability of $278,299 and net OPEB liability of $87,940. The largest portion of net position, $764,859, is net investment in capital assets and cannot be used for future spending. The remaining net position is restricted for specified purposes.
Total net position increased by $41,219 from the previous year. Net position in the governmental activities increased by $24,733 and net position in business-type activities also increased from the previous year by $16,486. The primary reason for the increases was operating grant and contribution revenues, sales tax and investment income.
As of the close of the current fiscal year, governmental funds reported combined ending fund balances of $226,480, an increase of $4,775 in comparison with the prior year. This increase in fund balance was mainly due to the increase in the Capital Projects Fund. Similar to the previous year, the increase in the Capital Projects Fund is due to a significant increase in development related fees paid and higher investment earnings. In accordance with the implementation of GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, fund balances are composed of three primary categories to increase the understanding of the availability of resources. The classifications establish a hierarchy based on the extent to which the City must observe constraints imposed upon the use of the resources that are reported. Applying governmental fund balances to the three primary categories, the City has less than 1% categorized as Nonspendable, 66% as Restricted, and 34% as Unrestricted (Committed, Assigned and Unassigned) fund balance.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the basic financial statements, comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains certain supplementary information.
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 statement of net position presents information on all the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the excess of assets and deferred outflows over liabilities and deferred inflows reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows . Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
The government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues ( governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business-type activities ). The governmental activities of the City include general government, public safety, public works, community development and community services. The business- type activities of the City include sewer, water and transit enterprise operations.
5 Item 9.a
CITY OF VACAVILLE
Management’s Discussion and Analysis
For the year ended June 30, 2025
(Amounts expressed in thousands)
The government-wide financial statements include not only the City itself (known as the primary government), but also the legally separate Vacaville Housing Authority and Vacaville Public Financing Authority, for which the City is financially accountable. Although legally separate, these component units function for all practical purposes as departments of the City and therefore have been blended as part of the primary government.
Both the Governmental Activities and the Business-Type Activities are presented on the accrual basis of accounting, a basis of accounting that differs from the modified basis of accounting used in presenting governmental fund financial statements.
Note 1 of the Notes to the Basic Financial Statements fully describes these bases of accounting. Proprietary funds, discussed below, also follow the accrual basis of accounting.
The government-wide financial statements can be found on pages 23-24 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City can be divided into three categories: governmental, proprietary, and fiduciary.
Governmental funds. Governmental funds are used to account for the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources , as well as on balances of spendable resources available at the end of the fiscal year.
It is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. Reconciliations to facilitate this comparison are provided for both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances. The major reconciling items relate to capital assets and debt. In the Governmental Funds, acquisitions of capital assets are treated as “expenditures” because upon purchase of a capital asset, cash used for the acquisition is no longer available for other purposes. The issuance of debt provides cash, which is now available for specified purposes.
Accordingly, at the end of the fiscal year, the unrestricted fund balances of the Governmental Funds reflect spendable resources available for appropriation by the City Council. Spendable balances are not presented on the face of the government-wide financial statements.
The City maintains twelve individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General, Successor Housing, Housing Assistance, Special Programs, and City Projects funds, all of which are considered to be major funds. Data for the other seven governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these non-major governmental funds is provided in the form of combining statements and can be found on pages 125-132 of this report.
The City adopts an annual appropriated budget for its General Fund. A budgetary comparison schedule has been provided in supplemental information for the General Fund to demonstrate compliance with this budget.
The governmental fund financial statements can be found on pages 26-31 of this report.
Proprietary funds. The City maintains two different types of proprietary funds, enterprise and internal service funds.
Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Sewer, Water and Transit operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its central services, vehicle replacement, technology replacement, self-insured insurance programs and employee benefits management. These internal service funds benefit predominantly governmental rather than business-type functions, so they have been included within governmental activities in the government-wide financial statements. In previous fiscal years, the vehicle replacement fund was reported within the business-type activities due to the sewer and water functions being the primary users of the fund. A restatement was done in fiscal year 2017 to reclassify the net position of the vehicle replacement fund within the governmental activities. Internal service funds are presented as proprietary funds because both enterprise and internal service funds follow the accrual basis of accounting.
6 Item 9.a
CITY OF VACAVILLE
Management’s Discussion and Analysis
For the year ended June 30, 2025
(Amounts expressed in thousands)
Proprietary funds provide the same type of information as the government-wide financial statements ( business-type activities), only in more detail. The proprietary fund financial statements provide separate information for the Sewer, Water, and Transit operations, all of which are considered to be major funds of the City. All internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements and can be found on pages 134-136 of this report.
The basic proprietary fund financial statements can be found on pages 33-35 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The fiduciary fund financial statements can be found on page 38-39 of this report. Individual fund data for the custodial funds is provided in the form of combining statements and can be found on pages 138-140.
Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 41-106 of this report.
Government-wide Financial Analysis
The following table presents a summarization of the City’s assets, liabilities, deferred inflows and outflows of resources and net position for its governmental and business-type activities. As noted earlier, a government’s net position may serve over time as a useful indicator of its financial position.
As noted earlier, the City’s assets and deferred outflows exceeded liabilities and deferred inflows of resources by $939,740 on June 30, 2025, an increase of $41,219 from June 30, 2024. By far the largest portion of net position, 81%, reflects the City’s investment in capital assets (i.e., land, buildings, equipment, vehicles and infrastructure), less any related debt used to acquire those assets still outstanding, and net of any unspent debt proceeds, and cash held in debt reserve accounts.
The City uses these capital assets to provide municipal services to the community; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. 2025 2024 2025 2024 2025 2024
Current and other assets 312,520$ 298,252$ 216,428$ 197,791$ 528,948$ 496,043$ Capital assets 527,207 495,325 338,578 340,721 865,785 836,046 Total assets 839,727 793,577 555,006 538,512 1,394,733 1,332,089 Deferred outflows of resources 91,989 95,439 16,774 18,010 108,763 113,449 Total assets and deferred outflows of resources 931,716 889,016 571,780 556,522 1,503,496 1,445,538 Current and other liabilities 57,180 37,427 20,388 11,099 77,568 48,526 Noncurrent liabilities 349,657 351,970 120,013 131,561 469,670 483,531 Total liabilities 406,837 389,397 140,401 142,660 547,238 532,057 Deferred inflows of resources 12,176 11,649 4,342 3,311 16,518 14,960 Total liabilities and deferred inflows of resources 419,013 401,046 144,743 145,971 563,756 547,017 Net position:
Net investment in capital assets 492,854 461,628 272,005 268,037 764,859 729,665 Restricted 151,784 140,962 7,106 7,106 158,890 148,068 Unrestricted (131,935) (114,620) 147,926 135,408 15,991 20,788 Total Net Position 512,703$ 487,970$ 427,037$ 410,551$ 939,740$ 898,521$
NET POSITION
GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES TOTAL 7 Item 9.a
CITY OF VACAVILLE
Management’s Discussion and Analysis
For the year ended June 30, 2025
(Amounts expressed in thousands)
Approximately 17% of net position represents resources that are subject to external restrictions on how they may be used.
The remaining unrestricted net position, 2%, may be used to meet the City’s ongoing obligations to its citizens and creditors.
Unrestricted net position for the City decreased during the fiscal year but has been positive since fiscal year 2021-2022.
Since the implementation of GASB Statement No. 68 – reporting of the long-term obligation for pension benefits as a liability - in fiscal year 2015, unrestricted net position has primarily been negative.
Total assets increased by $62,644 primarily due to an increase in cash and investments as well as capital assets. Sales tax and property tax revenues continued to perform strongly during the fiscal year, and the City received more operating grants and contributions revenue than the prior year.
The following is a condensed summary of activities of the City’s governmental and business-type operations for the period ended June 30, 2025, with the prior fiscal year presented for comparative purposes. Also included are revenue and expense graphs to aid in understanding the results of the current year’s activities. 2025 2024 2025 2024 2025 2024
REVENUES:
Program Revenues:
Charges for services 28,780$ 27,555$ 63,093$ 60,158$ 91,873$ 87,713$ Operating grants & contributions 52,524 40,456 3,998 4,710 56,522 45,166 Capital grants & contributions 28,680 25,700 16,653 19,180 45,333 44,880 General Revenues:
Taxes:
Property taxes 65,033 60,514 84 83 65,117 60,597 Sales taxes 57,258 49,941 - - 57,258 49,941
Franchise taxes 5,677 5,669 - - 5,677 5,669
Transient lodging tax 2,006 2,052 - - 2,006 2,052 Business license tax 440 430 - - 440 430
Excise tax 2,971 2,924 - - 2,971 2,924
Gasoline tax - - - - - -
Vehicle license taxes - - - - - -
Unrestricted capital contributions - - - - - - Interest and other 12,518 8,956 11,851 8,820 24,369 17,776 Total revenues 255,887 224,197 95,679 92,951 351,566 317,148
CITY OF VACAVILLE'S CHANGES IN NET POSITION
(Expressed in Thousands of Dollars)
GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES TOTAL
8 Item 9.a
CITY OF VACAVILLE
Management’s Discussion and Analysis
For the year ended June 30, 2025
(Amounts expressed in thousands)
Governmental activities: Net position increased by $24,733 during the fiscal year. Key elements of this year’s activity in relation to the prior year are as follows:
Revenues:
The increase in revenues, $31,690 or 14%, compared with 2024 was primarily due to the following reasons.
Operating grant and contributions revenue substantially increased over the prior fiscal year as the City continues to implement more grant funded programs and initiatives.
Sales tax revenue increased by $7,317 or over 14% primarily due to one-time revenues from the recent sale and acquisition of one of the largest biotech facilities in the world.
Property tax revenue also increased by $4,520 or 7.47% due to growth in the assessed valuation of the industrial category despite rising interest rates and its negative impact on borrowing/mortgages slowing real estate transactions and values.
Again, this year, one of the positive impacts of the Fed’s interest rate hikes has been increased investment income on the City’s investment portfolio.
Expenses:
While variances between years exist for the various functions, total expenses increased by $9,379 or 4.27% from 2024.
Some of the factors for the increase include:
Staffing: 3 full-time positions were approved with the adoption of the fiscal year 2024-25 budget to address existing staffing level challenges and to support the City’s continued growth.
2025 2024 2025 2024 2025 2024
EXPENSES:
Governmental activities:
General government 28,189 26,760 - - 28,189 26,760 Public safety 107,321 94,818 - - 107,321 94,818 Public works 40,866 51,452 - - 40,866 51,452 Community services 22,415 20,638 - - 22,415 20,638 Housing 28,742 25,320 - - 28,742 25,320 Interest on long-term debt 1,430 596 - - 1,430 596 Business-type activities:
Sewer - - 40,945 38,361 40,945 38,361 Water - - 26,690 25,892 26,690 25,892 Transit - - 5,622 4,223 5,622 4,223 Total expenses 228,963 219,584 73,257 68,476 302,220 288,060 Increase in net position
before transfers 26,924 4,613 22,422 24,475 49,346 29,088 Transfers 5,091 3,172 (5,091) (3,172) - - Increase in net position 32,015 7,785 17,331 21,303 49,346 29,088 Accounting Change/Error Correction (7,282) 1,840 (845) - (8,127) 1,840 Net position - July 1, 2024 487,970 478,345 410,551 389,248 898,521 867,593 Net position - June 30, 2025 512,703$ 487,970$ 427,037$ 410,551$ 939,740$ 898,521$
CITY OF VACAVILLE'S CHANGES IN NET POSITION
(Expressed in Thousands of Dollars)
GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES TOTAL
9 Item 9.a
CITY OF VACAVILLE
Management’s Discussion and Analysis
For the year ended June 30, 2025
(Amounts expressed in thousands)
Inflationary pressures caused an escalation in the expenses associated with procurement of supplies used in department operations and in construction-related costs.
10 Item 9.a
CITY OF VACAVILLE
Management’s Discussion and Analysis
For the year ended June 30, 2025
(Amounts expressed in thousands)
Revenues by Source – Governmental Activities – Fiscal Year Comparison
11 Item 9.a
CITY OF VACAVILLE
Management’s Discussion and Analysis
For the year ended June 30, 2025
(Amounts expressed in thousands)
Revenues by Source – Governmental Activities – Fiscal Year Comparison (Continued)
12 Item 9.a
CITY OF VACAVILLE
Management’s Discussion and Analysis
For the year ended June 30, 2025
(Amounts expressed in thousands)
Business-type activities. Business-type activities increased the City’s net position by $16,486; key elements of the 2025 increase in net position are as follows:
Connection fees revenue increased due to development and building permits pulled. Increase in interest revenue due to rising interest rate environment. Increase in transit intergovernmental revenue from grant funds.
Revenues by Source-Business Type Activities - Fiscal Year Comparison
13 Item 9.a
CITY OF VACAVILLE
Management’s Discussion and Analysis
For the year ended June 30, 2025
(Amounts expressed in thousands)
Revenues by Source-Business Type Activities - Fiscal Year Comparison (Continued)
Financial Analysis of the City’s Funds
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, the fund balance classification for unrestricted fund balance including; Committed-internally imposed restrictions set by formal action of the city council, Assigned-intended to be used for specific purposes that are neither restricted or committed, and Unassigned-positive fund balance within the general fund which has not been classified and negative fund balances from other governmental funds, may serve as a useful measure of a City’s net resources available for spending at the end of the fiscal year.
The following chart compares the 2025 and 2024 fund balances for the City’s General, Successor Housing, Housing Assistance, City Projects, Special Programs and Other Governmental Funds. As noted earlier, the City of Vacaville uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
14 Item 9.a
CITY OF VACAVILLE
Management’s Discussion and Analysis
For the year ended June 30, 2025
(Amounts expressed in thousands)
As of June 30, 2025, the City’s governmental funds reported combined ending fund balances of $226,480 an increase of $4,775 in comparison with the prior year. 66% of the fund balance is either Non-spendable to indicate that it is not available for future spending because it is not in spendable form or is legally required to be maintained, or Restricted to indicate there are spending constraints externally imposed on the city for specific purposes.
The General Fund is the primary operating fund of the City. At June 30, 2025, the Assigned and Unassigned fund balance of the General Fund was $78,392 or 98% of the total General Fund fund balance. This amount can be viewed as the City’s emergency operating reserve and is often measured as a percent of ongoing operating expenditures. At the end of fiscal year 2025, the City’s emergency operating reserve was 56% of General Fund operating expenditures. The fund balance of the City's General Fund decreased by $600 during the current fiscal year. Although the City has seen increased assessed values for property taxes, the decrease in fund balance was related primarily to reduced growth in property tax and sales tax revenue. During the year, the City also had increased expenditures due to the addition of a number of positions, spending on Measure M programs and projects, overtime, inflation, and rising indirect costs.
The City Projects fund has a total fund balance of $91,038 and saw the largest increase of fund balance from 2024 amongst the governmental funds. As previously stated, the increase was mainly due to development fee revenue exceeding amounts received in typical fiscal years.
Proprietary funds . The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The following chart compares the 2025 and 2024 net position balances for the City’s Sewer, Water and Transit Funds.
15 Item 9.a
CITY OF VACAVILLE
Management’s Discussion and Analysis
For the year ended June 30, 2025
(Amounts expressed in thousands)
Unrestricted net position at the end of the year amounted to $43,261 for the Sewer Utility fund, $102,638 for the Water Utility fund, and $2,026 for the Transit fund. The increase in net position for sewer operations was $1,952 and the increase in water operations was $14,801; connection fee revenues and increased developer capital contributions were key factors in both funds seeing year-over-year growth in net position. The net position for the Transit fund decreased by $266 mainly due to a significant reduction intergovernmental capital contributions. Other factors concerning the finances of these funds have already been addressed in the discussion of the City’s business-type activities.
General Fund Budgetary Highlights
Original Final Actual Variance from
Budget Budget Amounts Final Budget
Total revenues 131,824$ 131,824$ 149,665$ 17,841$ Expenditures:
General government 18,524 19,120 16,672 2,448 Public safety 98,719 98,840 95,045 3,795 Public works 11,901 11,919 11,522 397 Community services 14,794 14,958 14,496 462 Housing 137 137 120 17 Capital outlay - - 331 (331) Debt service 184 184 1,937 (1,753) Total expenditures 144,259 145,158 140,123 5,035 Revenue over (under)
expenditures (12,435) (13,334) 9,542 22,876 Other financing sources (uses) (987) (27,640) (10,142) 17,498 Net change in fund balance (13,422)$ (40,974)$ (600) 40,374$ Beginning fund balance 80,434
Ending fund balance 79,834$
16 Item 9.a
CITY OF VACAVILLE
Management’s Discussion and Analysis
For the year ended June 30, 2025
(Amounts expressed in thousands)
Final budgeted expenditures exceeded original budgeted expenditures and finance uses by $899 or less than 1%. The reasons for the increase are as follows:
Energy feasibility study at the Easterly Wastewater Treatment facility and other City properties Services and supplies for the newly established North East Growth Area Cybersecurity staffing and solutions
Actual amounts differed from the Final budget as follows:
Actual revenues were about 14% more than the budget. This was primarily due to higher than anticipated property tax and sales tax revenues despite the impacts of inflation.
Actual expenditures were $5,035, or 3.5% below budget for the year. The City was able to realize cost savings throughout the year due to unfilled positions and the City has paused additional payments to towards the unfunded pension and medical liabilities to save on interest costs until deficit spending is resolved.
The net effect of all the above was a favorable variance from the amounts budgeted of $40,374.
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2025, amounted to $865,785 (net of accumulated depreciation). This investment includes land, buildings and improvements, park facilities, equipment, vehicles, roads and bridges. The total increase in the City’s net investment in capital assets for the current fiscal year was $29,739 (increase of $31,882 for governmental activities, including internal service funds and a decrease of $2,143 for business-type activities).
CAPITAL ASSETS
(net of depreciation)
2025 2024 2025 2024 2025 2024
Land 182,538$ 182,538 $ 10,835 $ 10,835 $ 193,373$ 193,373 $ Construction in progress 68,289$ 34,920 $ 15,771 $ 18,222 $ 84,060$ 53,142 $ Right-to-use subscription in progress 138$ - $ - $ - $ 138$ - $ Buildings and improvements 33,933 34,945 195,572 204,313 229,505 239,258 Land improvements 27,277 25,640 - - 27,277 25,640 Equipment 3,385 3,020 9,451 10,295 12,836 13,315 Vehicles 14,611 14,881 27 16 14,638 14,897 Software - 56 - - - 56 Infrastructure 187,485 188,736 106,775 96,898 294,260 285,634 Right-to-use leased land 481 548 - - 481 548 Right-to-use leased equipment 2,338 1,970 - - 2,338 1,970 Right-to-use subscription software 6,732 8,071 147 142 6,879 8,213 Total 527,207$ 495,325 $ 338,578 $ 340,721 $ 865,785$ 836,046 $ Governmental Activities Business-type Activities Total
17 Item 9.a
CITY OF VACAVILLE
Management’s Discussion and Analysis
For the year ended June 30, 2025
(Amounts expressed in thousands)
Major capital asset events during the current fiscal year included the completion of the Allison Parkway Lift Station Expansion and the Wykoff Water and Sewer replacement project. Additionally, the replacement of the City’s public safety radios and aging vehicle fleet, and completion of park improvements in each of the City’s six districts remain capital priorities.
Additional information on the City's capital assets can be found in Note 6 on pages 65-67.
Long-term debt . At the end of the current fiscal year, the City had total long-term debt (excluding leases and SBITA) outstanding of $92,824, which is backed by the full faith and credit of the government.
The City’s total debt decreased by $3,842 primarily due to payments made to the State Water Resource Control Board for the Sewer Easterly and Tertiary Projects. During the fiscal year, the City entered into one new debt agreement under Governmental Activities, a financed purchase of 13 fleet vehicles for the Fire Department, including two fire engines, for $2,960.
Additional information on the City’s long-term debt can be found in Note 7 on pages 68-76 of this report.
Economic Factors and Next Year’s Budget
At the outset of Fiscal Year 2025/26, the country is entering a phase of substantial change as the new presidential administration embarks on broad-ranging reforms. These initiatives touch on key policy areas – including the economy, trade, healthcare, immigration, fiscal spending, environmental regulations, ad foreign policy – and have the potential to shape growth, job creation, and inflation, factors that may elevate short-term economic uncertainty. While navigating such uncertainty has become a familiar challenge, our City and community have consistently adapted and focused on advancing priorities and meeting evolving needs in the face of past obstacles like the pandemic and rising inflation.
Locally, like many cities across California, the City is grappling with the challenge of expenses that are growing faster than resources. This imbalance is referred to as deficit spending. Revenue growth has slowed dramatically since the accelerated rebound seen during the pandemic driven by diminished consumer confidence and rising costs.
The proposed FY 2025/26 budget reflects the second year of a budget balancing strategy reliant on the use of excess General Fund Reserves. Furthermore, the budget seeks to address the structural deficit through a strategic approach to expense reductions and cost saving measures instead of simply pursuing across-the-board cuts or a hiring freeze. However, cost-saving measures alone cannot balance the budget gap or provide a permanent solution to our structural deficit. In order to restore structural balance to the City’s budget, efforts to attract increased private investment and economic growth and enhance revenues will become an even greater priority in the upcoming year.
The proposed budget takes a measured approach with the goal of minimizing service impacts on our community while addressing Council priorities and demonstrating fiscal responsibility. It ensures the effective, efficient, and safe delivery of City programs and services.
2025 2024 2025 2024 2025 2024
Financed obligations 26,349 $ 24,112 $ 1,118 $ 1,810 $ 27,467 $ 25,922 $ Loans payable - - 65,357 70,744 65,357 70,744 Total 26,349 $ 24,112 $ 66,475 $ 72,554 $ 92,824 $ 96,666 $ Governmental Activities Business-type Activities Total
OUTSTANDING DEBT
(expressed in thousands of dollars)
18 Item 9.a
CITY OF VACAVILLE
Management’s Discussion and Analysis
For the year ended June 30, 2025
(Amounts expressed in thousands)
The City budgets and forecasts conservatively to maintain the level of services delivered to our residents and businesses while strategically expanding services as growth, demand, and funding warrant. While preparing the budget and forecasting the following assumptions were made:
Revenues:
• Sales tax revenue remains flat in FY 2025/26 due to continued economic uncertainty; with 3% growth in subsequent fiscal years.
• Property tax category overall increases by 1% compared to FY 2024/25 due to large supplemental property tax revenues received this fiscal year; 4% growth seen in future years. • PP-GEMT revenues related to medical transports continue to perform well and remain unaffected by any federal or state policy decisions.
• Overall, General Fund revenue growth in FY 2025/26 is expected to be below 3% in the upcoming year and average between 3-4% in subsequent years.
Expenditures:
• 2% annual personnel cost growth assumption; 6% vacancy rate in FY 2025/26 based on current trends. • Implementation of cost saving measures for FY 2025/26 • No increase for CPI in discretionary Services and Supplies budgets for the upcoming fiscal year • PERS pension investment earnings assumed at 9.3% for FY 2023/24 and 6.8% for FY 2024/25. • Full funding of annual OPEB Actuarially Determined Contribution (ADC). • Pausing the annual $2.2 million contribution towards additional discretionary payments (ADP) towards CalPERS pension liability to save on long-term interest costs and accelerate the reduction of unfunded liability until deficit spending is resolved.
• No new funding from the General Fund for Capital Improvement Program budget in the upcoming fiscal year due to deficit spending
The City Operating Budget for the coming year is $295 million of which $158 million is the General Fund portion. With a measured increase of about 1% compared to the FY 2024/25 Adopted Operating Budget, the proposed FY 2025/26 Operating Budget is designed to strategically narrow the budget gap and implement cost-saving measures.
Due to the anticipated deficit spending, the first step in developing the proposed budget was looking internally at City spending and identifying areas where funding could be paused or reduced while minimizing the impacts on service levels provided to the community. Each department was instructed and successfully identified at least 2.5% in reductions within their budgets. Additionally, staff analyzed citywide strategies and initiatives to identify previously allocated funding for programs that could be redirected or paused for budget balancing.
To maximize savings for the upcoming year, we propose pausing the Measure M Pilot Programs – with the notable exceptions of the Neighborhood Cleanup and Youth Scholarship Programs. The Neighborhood Cleanup initiative, held twice a year, supports essential yard maintenance, fence repairs, and exterior improvements in our most overburdened neighborhoods. The Yough Scholarship Program, widely recognized for its impact, annually extends recreational opportunities to youth under 18 from low-income families. Furthermore, reducing General Fund contributions toward internal service fuds for public safety equipment and technology upgrades, along with suspending new General Fund and Measure M funding for the Capital Improvement Program, completes our slate of proposed cost savings. Despite the City’s continued growth and expanding service demands, the proposed budget maintains current staffing levels with no additional full-time positions due to budget constraints.
At the start of FY 2025/26, the City anticipates a General Fund Reserve of $43 million, which accounts for 29% of expenses.
Despite projected improvements in revenue growth and upcoming expense-reduction measures, a forecasted shortfall of $8.9 million between ongoing revenues and expenses is expected. Consequently, the Reserve will decrease to $34 million, or 23% of expenses, by year-end.
19 Item 9.a
CITY OF VACAVILLE
Management’s Discussion and Analysis
For the year ended June 30, 2025
(Amounts expressed in thousands)
Utilities:
Utilities include water and wastewater services provided to Vacaville residents and businesses. The primary source of revenue for these operations is the rates paid by customers.
The Utilities Department continues to face the challenge of rising operation, maintenance, and construction costs for our aging infrastructure against a backdrop of stagnant revenue projections. To maximize our resources, the Department has managed expenses diligently by performing work in-house and deferring non-essential maintenance projects and purchases. Recognizing that reinvestment is essential, we are committed to securing the future financial stability of both the water and sewer funds. In partnership with a consulting firm, we have conducted a comprehensive financial analysis that provides rate and funding recommendations to support initiatives aimed at enhancing system performance, ensuring regulatory compliance, and bolstering long-term resilience. It has been a number of years since a rate increase was applied to the City’s utility rates and without an increase in revenues, both the water and sewer funds are projected to be fully depleted of their operating reserve within the next two years.
Successor Agency and Housing Services:
Successor Agency activities reflect the continued mandated wind down of former Redevelopment Agency activities. In the upcoming fiscal year, the Successor Agency will continue funding all recognized obligations of the former Redevelopment Agency.
The Department of Housing & Community Services will continue to provide programs and activities to address state and federally funded housing services including providing Housing Choice Voucher rental subsidy on behalf of approximately 1,000 very-low income Vacaville households and 200 very-low income households under the Solano County program each month. Developing affordable housing to meet the Regional Housing Needs Allocation in the General Plan Housing Element continues to be a priority. Special Projects for the upcoming year include the De Colores Park development, Gables Apartments Rehabilitation project, and a number of housing projects (Allison, Oak Grove, Victory Gardens, Habitat Harmony Village).
Capital Improvement Program:
The proposed CIP budget is $50 million. Although new funding specifically from the General Fund and Measure M will be paused in the upcoming year as a cost saving measure, the City’s CIP continues to be robust. The proposed capital budget includes $6.6 million in Utilities funding to drill and equip a new municipal well and for the design consultation and implementation of a new Computerized Maintenance Management System. The remaining $43.5 million budget is proposed to be allocated to existing projects including the Midway Road Waterline, Public Works Safety, ADA, & Tenant improvements, additional funding for Unity Meadows Park and Al Patch Park, and to widen the parkway from Vaca Valley Parkway to Allison Drive.
Requests for Information
This financial report is designed to provide a general overview of the City of Vacaville’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Department, City of Vacaville, 650 Merchant Street, Vacaville, CA 95688 or you may visit our website at www.cityofvacaville.gov for contact information. 20 Item 9.a
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21 Item 9.a
GOVERNMENT-WIDE FINANCIAL STATEMENTS
22 Item 9.a
CITY OF VACAVILLE
STATEMENT OF NET POSITION
JUNE 30, 2025
Governmental Business-Type
Activities Activities Total
Assets:
Cash and investments 197,084,044$ 166,728,093$ 363,812,137$ Receivables, net of allowance for uncollectibles:
Interest 1,334,312 1,091,524 2,425,836 Taxes 12,097,303 - 12,097,303 Accounts 20,743,493 12,580,898 33,324,391 Loans 45,472,316 - 45,472,316 Leases 5,356,192 3,177,449 8,533,641 Inventories 220,154 - 220,154 Prepaid Items 4,009,125 265,103 4,274,228 Internal balances (529,428) 529,428 - Restricted cash and investments 26,112,668 7,105,613 33,218,281 Deposits 619,944 - 619,944 Investment in joint venture - 24,949,906 24,949,906 Capital assets:
Capital assets, non-depreciable 250,964,908 26,605,654 277,570,562 Capital assets, net of accumulated depreciation/amortization 276,241,715 311,971,850 588,213,565 Total Assets 839,726,746 555,005,518 1,394,732,264 Deferred Outflows of Resources:
Deferred outflows related to pension 56,411,876 9,997,675 66,409,551 Deferred outflows related to OPEB 35,577,607 6,776,690 42,354,297 Total Deferred Outflow of Resources 91,989,483 16,774,365 108,763,848 Liabilities:
Accounts payable and contract payable 17,187,973 5,709,807 22,897,780 Accrued payroll 7,467,064 1,049,782 8,516,846 Interest payable 179,934 571,516 751,450 Employee benefits payable 1,898,946 - 1,898,946 Deposits payable 8,555,599 24,795 8,580,394 Due to other governments - - - Unearned revenue 10,383,056 328,483 10,711,539 Remediation liability - due in more than a year - 115,000 115,000 Net OPEB liability - due in more than a year 73,869,494 14,070,379 87,939,873 Net pension liability - due in more than a year 228,529,443 49,769,535 278,298,978 Compensated absences
Due within one year 14,110,894 2,060,325 16,171,219 Due in more than one year 1,170,180 129,468 1,299,648 Claims payable
Due within one year 3,965,000 - 3,965,000 Due in more than one year 5,167,000 - 5,167,000 Leases payable
Due within one year 415,533 - 415,533 Due in more than one year 1,888,685 - 1,888,685 SBITA payable
Due within one year 1,900,233 31,558 1,931,791 Due in more than one year 3,798,676 66,479 3,865,155 Long-term liabilities
Due within one year 1,499,124 10,940,764 12,439,888 Due in more than one year 24,850,066 55,533,467 80,383,533 Total Liabilities 406,836,900 140,401,358 547,238,258 Deferred Inflows of Resources:
Deferred inflows related to leases 5,297,233 3,065,949 8,363,182 Deferred inflows related to pension 307,240 24,064 331,304 Deferred inflows related to OPEB 6,571,994 1,251,816 7,823,810 Total Deferred Inflows of Resources 12,176,467 4,341,829 16,518,296 Net Position:
Net investment in capital assets 492,854,306 272,005,236 764,859,542 Restricted for:
Capital projects 94,211,755 - 94,211,755 Debt service 8,750,750 7,105,613 15,856,363 Highway and streets 4,885,947 - 4,885,947 Housing 41,733,021 - 41,733,021 Special programs 2,202,149 - 2,202,149 Total restricted 151,783,622 7,105,613 158,889,235 Unrestricted (131,935,066) 147,925,847 15,990,781 512,702,862$ 427,036,696$ 939,739,558$ Total Net Position Primary Government
See accompanying Notes to Basic Financial Statements.
23 Item 9.a
CITY OF VACAVILLE
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
CHARGES OPERATING CAPITAL BUSINESS
FOR GRANTS AND GRANTS AND GOVERNMENTAL TYPE
EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS TOTALS ACTIVITIES ACTIVITIES TOTALS Functions/Programs
Primary Government:
Governmental activities:
General government 28,188,451$ 6,717,965$ 3,400,055$ 1,375,382$ 11,493,402$ (16,695,049)$ -$ (16,695,049)$ Public safety 107,321,302 8,678,857 5,562,805 905,354 15,147,016 (92,174,286) - (92,174,286) Public works 40,866,275 3,382,364 15,376,657 24,357,285 43,116,306 2,250,031 - 2,250,031 Community services 22,415,247 9,959,335 613,762 2,042,073 12,615,170 (9,800,077) - (9,800,077) Housing 28,741,947 41,050 27,570,638 - 27,611,688 (1,130,259) - (1,130,259) Interest on long-term debt 1,430,386 - - - - (1,430,386) - (1,430,386) Total Governmental Activities 228,963,608 28,779,571 52,523,917 28,680,094 109,983,582 (118,980,026) - (118,980,026) Business-type activities:
Sewer 40,945,479 37,432,906 (16,143) 6,628,643 44,045,406 - 3,099,927 3,099,927 Water 26,689,765 25,346,664 (17,467) 9,042,069 34,371,266 - 7,681,501 7,681,501 Transit 5,622,299 313,264 4,032,228 982,738 5,328,230 - (294,069) (294,069) Total Business-Type Activities 73,257,543 63,092,834 3,998,618 16,653,450 83,744,902 - 10,487,359 10,487,359 Total Primary Government 302,221,151$ 91,872,405$ 56,522,535$ 45,333,544$ 193,728,484$ (118,980,026) 10,487,359 (108,492,667) General Revenues:
Taxes:
Property taxes 65,032,874 84,380 65,117,254 Sales taxes 57,258,467 - 57,258,467 Franchise taxes 5,676,978 - 5,676,978 Transient lodging tax 2,006,413 - 2,006,413 Business license tax 440,276 - 440,276 Excise tax 2,970,507 - 2,970,507 Subtotal taxes 133,385,515 84,380 133,469,895 Investment income 11,247,789 9,895,231 21,143,020 Miscellaneous 1,269,937 1,955,720 3,225,657 Transfers 5,091,421 (5,091,421) -
Total General Revenues and Transfers 150,994,662 6,843,910 157,838,572 Change in Net Position 32,014,636 17,331,269 49,345,905 Net Position at Beginning of Year 487,969,990 410,550,663 898,520,653 Accounting Change/Error Correction (Note 21) (7,281,764) (845,236) (8,127,000) Net Position at Beginning of Year as Restated 480,688,226 409,705,427 890,393,653 Net Position at End of Year 512,702,862$ 427,036,696$ 939,739,558$
CHANGES IN NET POSITIONPROGRAM REVENUES
NET (EXPENSE) REVENUE AND
See accompanying Notes to Basic Financial Statements.
24 Item 9.a
GOVERNMENTAL FUND FINANCIAL STATEMENTS
GENERAL FUND
required to be accounted for in another fund. It derives a majority of its revenues from property, sales, business and excise tax.
SUCCESSOR HOUSING
Formerly accounted for the 20% set aside funds received from tax increments in the City's two Redevelopment areas; to be used for low and moderate housing purposes. Upon dissolution of the Redevelopment Agency, the City will continue to use these funds for low and moderate housing purposes.
HOUSING ASSISTANCE
homebuyer loans to low-income, elderly, disabled, and handicapped people qualifying for the programs, as well as for the rehabilitation for rental property. Funds are received from the U.S. Department of Housing and Urban Development's Section 8 Voucher Housing Programs and Federal and State rehabilitation and home loan programs.
SPECIAL PROGRAMS
To account for monies received and expended from Federal, State and Local grants earmarked for public safety services, diversionary youth education, after school programs, and recycling programs.
CITY PROJECTS
To account for proceeds used to fund the acquisition and construction of public improvements, for proceeds from State Gas Tax (Section 2105 and 2106), State and Federal transit programs, development, and for proceeds from bonds issued to fund City public facilities and infrastructure projects.
OTHER GOVERNMENTAL FUNDS
Other Governmental Funds is the aggregate of all the non-major governmental funds. 25 Item 9.a
CITY OF VACAVILLE
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2025
Successor Housing Special
General Housing Assistance Programs
Assets:
Cash and investments 66,493,722$ 2,949,966$ 5,762,410$ 4,393,770$ Receivables:
Interest 1,082,050 - - - Taxes 11,068,425 - - 43,309 Accounts 4,668,011 125,065 174,739 4,733,136 Leases 5,356,192 - - - Loans, net allowance - 36,345,020 7,112,935 - Prepaid items 20,000 - - - Restricted cash and investments
held by fiscal agent - 433,339 - - Due from other funds 10,873,210 - - - Deposits 572,823 - - - Advances to other funds 849,302 - - - Total Assets 100,983,735$ 39,853,390$ 13,050,084$ 9,170,215$ Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts and contract payable 5,195,499$ 9,380$ 4,749$ 300,003$ Accrued payroll 5,874,502 42,843 111,238 73,392 Due to other funds - - - - Employee benefits payable 1,898,946 - - - Deposits payable 1,333,494 38,217 509,530 201,014 Unearned revenue 1,420,136 - 674,487 6,967,478 Due to other governments - - - - Advances from other funds - - - - Total Liabilities 15,722,577 90,440 1,300,004 7,541,887 Deferred Inflows of Resources:
Leases 5,297,233 - - - Unavailable revenue - development impact fees - - - - Unavailable revenue - grants and other 129,396 9,276,230 503,779 4,019,694 Total Deferred Inflows 5,426,629 9,276,230 503,779 4,019,694 Fund Balances (Deficits):
Nonspendable 1,442,125 - - - Restricted - 30,486,720 11,246,301 - Assigned 40,066,103 - - - Unassigned 38,326,301 - - (2,391,366) Total Fund Balances (Deficits) 79,834,529 30,486,720 11,246,301 (2,391,366) Total Liabilities, Deferred Inflows of
Resources and Fund Balances
(Deficits) 100,983,735$ 39,853,390$ 13,050,084$ 9,170,215$ Special Revenue Funds
See accompanying Notes to Basic Financial Statements.
26 Item 9.a
CITY OF VACAVILLE
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2025
Assets:
Cash and investments
Receivables:
Interest
Taxes
Accounts
Leases
Loans, net allowance
Prepaid items
Restricted cash and investments
held by fiscal agent
Due from other funds
Deposits
Advances to other funds
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts and contract payable
Accrued payroll
Due to other funds
Employee benefits payable
Deposits payable
Unearned revenue
Due to other governments
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:
Leases
Unavailable revenue - development impact fees
Unavailable revenue - grants and other
Total Deferred Inflows
Fund Balances (Deficits):
Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources and Fund Balances
(Deficits)
Capital Projects
Funds
Other Total
City Governmental Governmental
Projects Funds Funds
92,948,141$ 11,368,670$ 183,916,679$
243,723 - 1,325,773 829,673 155,896 12,097,303 8,031,457 2,219,684 19,952,092
- - 5,356,192 405,000 1,609,361 45,472,316 - - 20,000 3,219,293 19,506,285 23,158,917
- - 10,873,210 - - 572,823 - - 849,302 105,677,287$ 34,859,896$ 303,594,607$
10,444,146$ 386,346$ 16,340,123$
100,236 657,843 6,860,054 - 10,873,210 10,873,210 - - 1,898,946 2,292,887 4,176,403 8,551,545
553,763 767,192 10,383,056 - - -
529,428 - 529,428 13,920,460 16,860,994 55,436,362
- - 5,297,233 311,322 - 311,322 407,534 1,732,772 16,069,405 718,856 1,732,772 21,677,960 - - 1,442,125 90,702,646 16,394,204 148,829,871
335,325 - 40,401,428 - (128,074) 35,806,861 91,037,971 16,266,130 226,480,285
105,677,287$ 34,859,896$ 303,594,607$
See accompanying Notes to Basic Financial Statements.
27 Item 9.a
CITY OF VACAVILLE
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2025
Fund balances of governmental funds 226,480,285$
Capital assets net of depreciation have not been included as financial resources in governmental fund activity 512,252,155
Long-term liabilities are not due and payable in the current period and, therefore are not reported in governmental fund activity:
Financed debt obligations (22,688,310)
Lease payable (1,930,490)
SBITA payable (5,081,647)
Prepaid items are applied using the purchases method in the governmental funds and are fully recognized as an expenditure of the period payment is made 297,846 Compensated absences not included in the governmental fund activity. (15,281,074) Net pension liability not included in the governmental fund activity for the following plans:
Miscellaneous plan (51,528,313)$
Safety plan (142,146,217)
Miscellaneous PARS plan (22,412,581)
Safety PARS plan (1,382,436) (217,469,547) Net OPEB liability not included in the governmental fund activity. (69,472,502) Deferred outflows related to pension items are not included in the governmental fund activity:
Miscellaneous plan 5,000,517
Safety plan 46,372,111
Miscellaneous PARS plan 2,753,279
Safety PARS plan 64,260 54,190,167
Deferred inflows related to pension items are not included in the governmental fund activity
Deferred inflows of resources - pension
Miscellaneous plan (245,994)
Safety plan (55,907) (301,901)
Deferred outflows related to OPEB items are not included in the governmental fund activity. 33,459,894
Deferred inflows related to OPEB items are not included in the governmental fund activity. (6,180,809)
Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds. (103,402) Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 16,380,727
Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds.
The assets and liabilities of the internal service funds must be added to the statement of net position. 8,151,470
Net Position of Governmental Activities 512,702,862$
Amounts reported for governmental activities in the statement of net position are different because:
See accompanying Notes to Basic Financial Statements.
28 Item 9.a
CITY OF VACAVILLE
STATEMENT OF REVENUES
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Successor Housing Special
General Housing Assistance Programs
Revenues:
Taxes and fees 125,593,236$ -$ -$ 182,623$ Licenses and permits 331,844 - - - Investment earnings 4,925,207 434,971 152,779 55,422 Intergovernmental 2,869,448 - 27,229,299 6,871,775 Charges for services 14,656,789 - 20,767 679,709 Rents and royalties 494,698 - - - Fines, forfeitures, and penalties 431,730 - - - Development fees - - - - Other 362,163 88,379 68,934 4,797 Total Revenues 149,665,115 523,350 27,471,779 7,794,326 Expenditures:
Current:
General government 16,672,210 - - 2,785,486 Public safety 95,044,798 - - 3,079,954 Public works 11,521,639 - - 239,312 Community services 14,495,942 - - 78,389 Housing 119,797 1,080,032 27,103,065 108,981 Capital outlay 331,393 - - 852,281 Debt service:
Principal - leases 280,964 - - 767,833 Principal - SBITA 1,111,879 39,466 182,694 Principal - financed 304,799 - - - Interest and fiscal charges 239,217 - 962 24,214 Total Expenditures 140,122,638 1,080,032 27,143,493 8,119,144 Excess (Deficiency) or Revenues
Over (Under) Expenditures 9,542,477 (556,682) 328,286 (324,818) Other Financing Sources (Uses):
Transfers in 8,539,615 - - 471,130 Transfers out (18,808,857) (43) - (1,694,637) Sale of capital assets - 341,250 - - Subscription based information technology arrangements (SBITAs) 127,083 - - 84,448 Leases - - - 767,833 Issuance of debt and loans - - - - Total Other Financing Sources (Uses) (10,142,159) 341,207 - (371,226) Net Change in Fund Balances (599,682) (215,475) 328,286 (696,044) Fund Balances (Deficits), Beginning of Year 80,434,211 30,702,195 10,918,015 (1,695,322) Fund Balances (Deficits), End of Year 79,834,529$ 30,486,720$ 11,246,301$ (2,391,366)$ Special Revenue Funds
See accompanying Notes to Basic Financial Statements.
29 Item 9.a
CITY OF VACAVILLE
STATEMENT OF REVENUES
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Revenues:
Taxes and fees
Licenses and permits
Investment earnings
Intergovernmental
Charges for services
Rents and royalties
Fines, forfeitures, and penalties
Development fees
Other
Total Revenues
Expenditures:
Current:
General government
Public safety
Public works
Community services
Housing
Capital outlay
Debt service:
Principal - leases
Principal - SBITA
Principal - financed
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) or Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Sale of capital assets
Subscription based information technology arrangements (SBITAs) Leases
Issuance of debt and loans
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficits), Beginning of Year
Fund Balances (Deficits), End of Year
Capital Projects
Funds
Other Total
City Governmental Governmental
Projects Funds Funds
-$ 12,900,588$ 138,676,447$ - 2,696,320 3,028,164
5,128,065 366,250 11,062,694
18,155,618 2,590,954 57,717,094
- 4,785,145 20,142,410
- 20,282 514,980
- - 431,730
14,375,333 - 14,375,333
115,030 6,454 645,757
37,774,046 23,365,993 246,594,609
- 6,041,203 25,498,899
- 1,776,162 99,900,914
- 4,285,012 16,045,963
- 6,790,396 21,364,727
- - 28,411,875 48,650,058 619,696 50,453,428
- - 1,048,797 25,000 113,613 1,472,652
184,969 692,422 1,182,190
43,031 1,131,396 1,438,820
48,903,058 21,449,900 246,818,265
(11,129,012) 1,916,093 (223,656)
26,712,963 4,665,882 40,389,590
(258,260) (17,370,561) (38,132,358) 45,000 - 386,250
- 536,853 748,384
- - 767,833
- 838,461 838,461
26,499,703 (11,329,365) 4,998,160
15,370,691 (9,413,272) 4,774,504
75,667,280 25,679,402 221,705,781
91,037,971$ 16,266,130$ 226,480,285$
See accompanying Notes to Basic Financial Statements.
30 Item 9.a
CITY OF VACAVILLE
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 4,774,504$ Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period:
Capital outlay 50,453,428$
Uncapitalized outlay costs (14,108,348)
Departmental expenditures capitalized 3,879,647
Depreciation/amortization (16,161,339)
Developer contributions 8,913,571
Loss from disposal of capital assets and transfer of capital asset (162,265) 32,814,694 Repayment of principal is an expenditure in governmental funds, but the repayment is a reduction in long-term liabilities in the statement of net position:
Principal repayments - leases 1,048,797
Principal repayments - financed debt 1,182,190
Principal repayments - SBITAs 1,472,652
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period 8,434
Prepaid items are applied using the purchases method in the governmental funds and are fully recognized as an expenditure of the period payment is made. (84,650) Compensated absences are expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. 518,625
Issuance of debt proceeds provides current financial resources to Governmental Funds, but issuing debt increases long-term liabilities in the Government-Wide Statement of Net Position. (2,555,769) Pension expenses recognized in accordance with GASB 68 not recognized in the governmental fund activity for the following plans:
Miscellaneous plan (2,337,749)
Safety plan (4,027,664)
Miscellaneous PARS plan 135,024
Safety PARS plan 118,715 (6,111,674) OPEB expenses recognized in accordance with GASB 75 are not recognized in the governmental fund activity 883,948
Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. (243,587)
Internal service funds are used by management to charge the costs of certain activities, such as equipment maintenance and self-insurance, to individual funds.
The net revenues (expenses) of the internal service funds is reported with governmental activities. (1,693,528)
Change in Net Position of Governmental Activities 32,014,636$ See accompanying Notes to Basic Financial Statements.
31 Item 9.a
PROPRIETARY FUND FINANCIAL STATEMENTS
SEWER UTILITY
To account for the operation (including waste wate r treatment) o f the City's sewe r facility, a self-supporting activity which provides services on a user charge basis.
WATER UTILITY
To account for the operation of the City's water utility, a self-supporting activity which provides services on a user charge basis.
TRANSIT
To account for the operation of the City's transit system. 32 Item 9.a
CITY OF VACAVILLE
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2025
Governmental
Activities-
Internal
Sewer Utility Water Utility Transit Totals Service Funds Assets:
Current:
Cash and investments 71,745,645$ 93,374,166$ 1,608,282$ 166,728,093$ 13,167,365$ Interest receivable 570,029 521,495 - 1,091,524 8,539 Accounts receivable, net allowance of $100,032 (Sewer), $59,288 (Water) 7,249,784 4,426,234 904,880 12,580,898 791,401 Leases receivable - 3,177,449 - 3,177,449 - Prepaid items 52,671 200,894 11,538 265,103 3,691,279 Restricted cash and investments 7,105,613 - - 7,105,613 2,953,751 Inventories-supplies - - - - 220,154 Total Current Assets 86,723,742 101,700,238 2,524,700 190,948,680 20,832,489 Noncurrent assets:
Deposits - - - - 47,121 Advances to other funds 276,476 352,952 - 629,428 - Investment in joint venture - 24,949,906 - 24,949,906 - Capital assets - net of accumulated depreciation/amortization 232,567,488 80,509,797 25,500,219 338,577,504 14,954,468 Total Noncurrent Assets 232,843,964 105,812,655 25,500,219 364,156,838 15,001,589 Total Assets 319,567,706 207,512,893 28,024,919 555,105,518 35,834,078 Deferred Outflows of Resources:
Deferred outflows related to pension 6,387,402 3,610,273 - 9,997,675 2,221,709 Deferred outflows related to OPEB 4,658,975 2,117,715 - 6,776,690 2,117,713 Total Deferred Outflows of Resources 11,046,377 5,727,988 - 16,774,365 4,339,422 Liabilities:
Current:
Accounts and contract payable 2,136,014 3,100,292 473,501 5,709,807 847,850 Accrued payroll 653,437 373,887 22,458 1,049,782 607,010 Advances from other funds - - - - 849,302 Interest payable 557,873 11,176 2,467 571,516 76,532 Deposits payable 2,916 21,879 - 24,795 4,054 Compensated absences - due within one year 1,718,003 342,322 - 2,060,325 - Claims payable - due within one year - - - - 3,965,000 Lease payable - due within one year - - - - 126,625 SBITA payable - due within one year - - 31,558 31,558 577,487 Long-term debt - due within one year 10,205,000 735,764 - 10,940,764 400,572 Total Current Liabilities 15,273,243 4,585,320 529,984 20,388,547 7,454,432 Noncurrent:
Advances from other funds - 100,000 - 100,000 - Unearned revenue 37,001 291,482 - 328,483 - Compensated absences - due in more than one year 112,804 16,664 - 129,468 - Remediation liability 115,000 - - 115,000 - Net OPEB liability 9,673,387 4,396,992 - 14,070,379 4,396,992 Net Pension liability 31,797,203 17,972,332 - 49,769,535 11,059,896 Claims payable - due in more than one year - - - - 5,167,000 Lease payable - due in more than one year - - - - 247,103 SBITA payable - due in more than one year - - 66,479 66,479 39,775 Long-term debt - due in more than one year 55,151,600 381,867 - 55,533,467 3,260,308 Total Noncurrent Liabilities 96,886,995 23,159,337 66,479 120,112,811 24,171,074 Total Liabilities 112,160,238 27,744,657 596,463 140,501,358 31,625,506 Deferred Inflows of Resources:
Deferred inflows related to leases - 3,065,949 - 3,065,949 - Deferred inflows related to pension 15,372 8,692 - 24,064 5,339 Deferred inflows related to OPEB 860,624 391,192 - 1,251,816 391,185 Total Deferred Inflows of Resources 875,996 3,465,833 - 4,341,829 396,524 Net Position:
Net investment in capital assets 167,210,888 79,392,166 25,402,182 272,005,236 10,302,598 Restricted for debt service/capital projects 7,105,613 - - 7,105,613 2,953,751 Unrestricted 43,261,348 102,638,225 2,026,274 147,925,847 (5,104,879) Total Net Position 217,577,849$ 182,030,391$ 27,428,456$ 427,036,696$ 8,151,470$ Business-Type Activities - Enterprise Funds
See accompanying Notes to Basic Financial Statements.
33 Item 9.a
CITY OF VACAVILLE
STATEMENT OF REVENUE, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Governmental
Activities-
Internal
Sewer Utility Water Utility Transit Totals Service Funds Operating Revenues:
Sewer charges 37,380,813$ -$ -$ 37,380,813$ -$ Water sales - 25,121,690 - 25,121,690 - Transit fares - - 313,264 313,264 - Internal service charges - - - - 17,939,892 Total Operating Revenues 37,380,813 25,121,690 313,264 62,815,767 17,939,892 Operating Expenses:
Treatment plant and sources of supply 10,299,745 9,069,913 - 19,369,658 - Transmission and distribution - 2,854,482 - 2,854,482 - Maintenance 10,228,069 3,701,166 - 13,929,235 - Customer services and administration 9,891,686 8,911,822 - 18,803,508 - Transportation - - 4,032,334 4,032,334 - Internal service expenses - - - - 19,086,233 Depreciation/amortization 8,722,319 2,830,226 1,586,220 13,138,765 3,617,356 Total Operating Expenses 39,141,819 27,367,609 5,618,554 72,127,982 22,703,589 Operating Income (Loss) (1,761,006) (2,245,919) (5,305,290) (9,312,215) (4,763,697) Nonoperating Revenues (Expenses):
Gain/(loss) from joint venture - 720,148 - 720,148 - Gain/Loss on disposal of capital assets - - - - (19,248) Interest revenue 4,628,329 5,239,644 27,258 9,895,231 328,100 Interest expense (1,803,660) (42,304) (3,745) (1,849,709) (143,004) Rents and royalties - 224,974 - 224,974 - Intergovernmental (16,143) (17,467) 4,032,228 3,998,618 - Taxes and other 52,093 2,040,100 - 2,092,193 70,132 Total Nonoperating
Revenues (Expenses) 2,860,619 8,165,095 4,055,741 15,081,455 235,980 Income (Loss) Before Transfers and Contributions 1,099,613 5,919,176 (1,249,549) 5,769,240 (4,527,717) Transfers:
Transfers in 1,390,899 15,914 - 1,406,813 2,841,257 Transfers out (6,494,823) (3,411) - (6,498,234) (7,068) Total Transfers (5,103,924) 12,503 - (5,091,421) 2,834,189 Capital Contributions:
Connection fees 4,259,386 7,002,390 - 11,261,776 - Intergovernmental 1,149,639 - 982,738 2,132,377 - Developers 1,219,618 2,039,679 - 3,259,297 - Total Capital Contributions 6,628,643 9,042,069 982,738 16,653,450 - Changes in Net Position 2,624,332 14,973,748 (266,811) 17,331,269 (1,693,528) Net Position:
Net position, beginning of year 215,626,284 167,229,112 27,695,267 410,550,663 9,595,030 Accounting Change/Error Correction (Note 21) (672,767) (172,469) - (845,236) 249,968 Beginning of Year 214,953,517 167,056,643 27,695,267 409,705,427 9,844,998 End of Fiscal Year 217,577,849$ 182,030,391$ 27,428,456$ 427,036,696$ 8,151,470$ Business-Type Activities - Enterprise Funds
See accompanying Notes to Basic Financial Statements.
34 Item 9.a
CITY OF VACAVILLE
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Governmental
Activities-
Internal
Sewer Utility Water Utility Transit Totals Service Funds Cash Flows from Operating Activities:
Cash received from customers and users 37,579,165$ 23,694,137$ 1,082,448$ 62,355,750$ 17,956,173$ Cash paid to suppliers for goods and services (16,211,358) (14,344,914) (3,332,128) (33,888,400) (12,261,726) Cash paid to employees for services (12,327,760) (7,098,205) (407,823) (19,833,788) (4,547,215) Claims paid - - - - (1,011,184) Net Cash Provided (Used) Operating Activities 9,040,047 2,251,018 (2,657,503) 8,633,562 136,048 Cash Flows from Non Capital
Financing Activities:
Repayment received from other funds 22,193 44,387 - 66,580 - Advances from other funds (Payments on advances from other funds) - - - - (113,569) Cash transfers in 1,390,899 15,914 - 1,406,813 2,841,257 Cash transfers out (6,494,823) (3,411) - (6,498,234) (7,068) Taxes 7,480 2,040,100 - 2,047,580 - Rents and royalties - 224,974 - 224,974 - Grants (16,143) (17,467) 4,032,228 3,998,618 - Other 44,613 - - 44,613 70,132 Net Cash Provided by
Noncapital Financing Activities (5,045,781) 2,304,497 4,032,228 1,290,944 2,790,752 Cash Flows from Capital
and Related Financing Activities:
Capital contributions 2,369,257 2,039,679 - 4,408,936 - Connection fees 4,259,386 7,002,390 - 11,261,776 - Net proceeds from issuance of long-term debt - - - - 2,960,000 Proceeds from sale of capital assets - - - - 45,543 Acquisition and construction of capital assets (4,568,991) (5,405,859) (38,140) (10,012,990) (6,270,454) Principal paid on leased assets and subscriptions - - (30,487) (30,487) (591,264) Principal paid on capital debt (5,387,860) (692,422) - (6,080,282) (379,012) Interest paid (1,717,752) (49,229) (4,512) (1,771,493) (105,660) Pollution remediation payments 9,000 - - 9,000 - Net Cash Provided (Used) by
Capital and Related Financing Activities (5,036,960) 2,894,559 (73,139) (2,215,540) (4,340,847) Cash Flows from Investing Activities:
Interest received (forfeited) 4,628,329 5,239,644 27,258 9,895,231 319,487 Net Cash Provided (Used) by Investing Activities 4,628,329 5,239,644 27,258 9,895,231 319,487 Net Increase (Decrease) in Cash and
Cash Equivalents 3,585,635 12,689,718 1,328,844 17,604,197 (1,094,560) Cash and Cash Equivalents at Beginning of Year 75,265,623 80,684,448 279,438 156,229,509 17,215,676 Cash and investments 71,745,645 93,374,166 1,608,282 166,728,093 13,167,365 Restricted cash and investments 7,105,613 - - 7,105,613 2,953,751 Cash and Cash Equivalents at End of Year 78,851,258$ 93,374,166$ 1,608,282$ 173,833,706$ 16,121,116$ Business-Type Activities - Enterprise Funds
See accompanying Notes to Basic Financial Statements.
35 Item 9.a
CITY OF VACAVILLE
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Governmental
Activities-
Internal
Sewer Utility Water Utility Transit Totals Service Funds Business-Type Activities - Enterprise Funds
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss) (1,761,006)$ (2,245,919)$ (5,305,290)$ (9,312,215)$ (4,763,697)$ Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided by Operating Activities:
Depreciation/amortization 8,722,319 2,830,226 1,586,220 13,138,765 3,617,356 Changes in assets and liabilities:
Decrease (increase) in accounts receivable 285,419 (1,168,324) 769,184 (113,721) (775,120) Decrease (increase) in interest receivable (86,535) (150,845) - (237,380) - Decrease (increase) in prepaid expenses (16,538) (24,685) 13,061 (28,162) (7,350) Decrease (increase) in inventories - supplies - - - - 3,642 Decrease (increase) in deposits - - - - 14,965 Decrease (increase) in deferred outflow of resources - pension 2,023,112 1,143,498 - 3,166,610 703,689 Decrease (increase in deferred outflow of resources - OPEB (1,327,386) (603,357) - (1,930,743) (603,356) Increase (decrease) in accounts and contracts payable 1,075,702 976,310 274,964 2,326,976 477,653 Increase (decrease) in accrued payroll 72,990 13,309 4,358 90,657 71,504 Increase (decrease) in employee benefits payable - - - - (370,076) Increase (decrease) in compensated absences (33,383) (89,064) - (122,447) - Increase (decrease) in deposits payable - 1,005 - 1,005 - Increase (decrease) in unearned revenue (532) 64,085 - 63,553 - Increase (decrease) in Net OPEB trust liability 1,490,116 677,325 - 2,167,441 677,326 Increase (decrease) in Net pension liability (1,027,174) (580,577) - (1,607,751) (357,275) Increase (decrease) in deferred inflow of resources - leases - 1,589,518 - 1,589,518 - Increase (decrease) in deferred inflow of resources - pension (91,245) (51,572) - (142,817) (31,738) Increase (decrease) in deferred inflow of resources - OPEB (285,812) (129,915) - (415,727) (129,915) Increase (decrease) in insurance liability - - - - 1,608,440 Total Adjustments 10,801,053 4,496,937 2,647,787 17,945,777 4,899,745 Net Cash Provided (Used) by Operating Activities 9,040,047$ 2,251,018$ (2,657,503)$ 8,633,562$ 136,048$ Non-Cash Investing, Capital, and Financing Activities:
Gain (loss) on disposition of capital assets -$ -$ -$ -$ (19,248)$ Gain (loss) on investment in joint venture - 720,148 - 720,148 - Issuance of new SBITA - - - - 14,023 Early Termination of SBITA - - - - (265,882) Transfer/contribution of capital assets from governmental activities - - 982,738 982,738 - See accompanying Notes to Basic Financial Statements.
36 Item 9.a
FIDUCIARY FUND FINANCIAL STATEMENTS
PRIVATE PURPOSE TRUST FUND
To account for the proceeds of the dissolution of the Redevelopment Agency.
CUSTODIAL FUNDS
To account for other deposits received from outside parties including deposits from Solano Transportation Authority, Community Action Partnership of Solano, refunding of permit monies and restitution for crimes committed. Also used to account for monies received through property tax to pay debt service payments for the Special Assessment Districts and to account for bond proceeds and repayment of debt service held in trust.
37 Item 9.a
CITY OF VACAVILLE
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2025
Private Purpose
Trust Fund
Assets: Successor Agency Custodial Funds
Current assets:
Cash and investments 9,760,753$ 29,018,822$ Receivables:
Accounts - 270,803
Interest 7,614 -
Loans 2,373,308 -
Prepaid expenses 52,609 -
Total current assets 12,194,284 29,289,625 Noncurrent assets:
Restricted cash and investments 2,594,734 2,190,989 Capital assets, non-depreciable 788,124 - Capital assets, net of accumulated depreciation 17,373,413 153,554 Total noncurrent assets 20,756,271 2,344,543 Total Assets 32,950,555 31,634,168
Deferred Outflows of Resources:
Deferred charge on refunding 215,115 - Total Deferred Outflows of Resources 215,115 - Liabilities:
Current liabilities:
Accounts payable and contracts payable 825 1,565,262$ Deposits payable 133,302 12,824,795 Unearned revenue 19,946 4,904,487 Interest payable 256,130 -
SBITA payable - due within one year - 112,452 Long-term liabilities - due within one year 2,500,000 257,906 Total current liabilities 2,910,203 19,664,902 SBITA payable - due in more than one year - 19,061 Long-Term liabilities - due in more than a year 17,994,330 3,103,813 Total Liabilities 20,904,533 22,787,776 Net Position:
Restricted for governments, individuals or other organizations 12,261,137$ 8,846,392$ See accompanying Notes to Basic Financial Statements.
38 Item 9.a
CITY OF VACAVILLE
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2025
Private Purpose
Trust Fund
Additions: Successor Agency Custodial Funds
Investment income 324,244$ 355,665$
Deposits Received - 47,244,797 Redevelopment Agency (RDA) property tax trust fund distribution 3,243,746 - Taxes & fees - 413,724
Program revenue - -
Grants and contributions - 3,456,644 Other 192,392 -
Total Additions: 3,760,382 51,470,830
Deductions:
Administrative and general operations - 573,921 Program expenses 215,000 2,984,295
DDA agreements 184,969 -
Payment to vendors, employees - 48,555,899 Professional fees 49,310 -
Depreciation expense 805,030 -
Fiscal fines and other fees 17,059 16,731 Interest expense 678,440 111,627
Total Deductions 1,949,808 52,242,473
Changes in Net Position 1,810,574 (771,643) Net Position - Beginning of the Year 10,450,563 9,618,035 Net Position - End of the Year 12,261,137$ 8,846,392$ See accompanying Notes to Basic Financial Statements.
39 Item 9.a
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40 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Vacaville, California, (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below:
A. Reporting Entity
The City of Vacaville was incorporated August 9, 1892 as a General Law City in the State of California. The City operates under the Council-Manager form of government. Services provided by the City include: public safety (police, fire and ambulance), public works (streets and highways), community development (building regulation, planning and zoning), community services (parks, culture and recreation), housing, public utilities (sewer and water), public improvements and general administrative services.
As required by GAAP, these basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the City’s operations and data from these units are combined with data of the City. The City had no discretely presented component units. Each blended component unit has a June 30 year-end. The City Council serves as the governing board, or comprises a majority of the governing board, of each of the blended component units. The City Council must represent a voting majority of the governing boards of the blended component units. The component units discussed in the following paragraphs are included in the City’s reporting entity because of the significance of their operational or financial relationships with the City. The following entities are reported as blended component units:
Vacaville Housing Authority
The Vacaville Housing Authority (VHA) is organized under the California Health and Safety Code and was established pursuant to the laws of the State of California to provide housing subsidies on behalf of eligible participants, to transact business and to have those powers as defined by law. The Housing Authority has entered into an Annual Contributions Contract with the U.S. Department of Housing and Urban Development (HUD) pertaining to its Housing Choice Voucher Program. The objectives of VHA are to aid low-income families in obtaining decent, safe and sanitary housing through federal assistance programs. The City Council serves as the governing body for the Vacaville Housing Authority and the City Manager has operational responsibility for the component unit.
Vacaville Public Financing Authority
The Vacaville Public Financing Authority (the Authority) was established pursuant to a Joint Exercise of Powers Agreement dated April 12, 1988, by and between the City and the Agency in accordance with provisions of the Joint Powers Act (Act). The Authority was created for the purpose of assisting with the financing of public capital improvements. The Authority has the power to issue bonds to pay the cost of public capital improvements.
Financial statements for the Vacaville Housing Authority can be obtained by contacting the City's Finance Department. The Vacaville Public Financing Authority does not issue financial statements.
The City is no longer reporting the Solano County Housing Authority as a component unit. Solano County includes the Solano County Housing Authority as a component unit in their Comprehensive Annual Financial Report. The Solano County Board of Supervisors is the governing body of the Solano County Housing Authority.
41 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
B. Basis of Accounting, Measurement Focus and Financial Statement Presentation
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for in a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled.
Government-Wide Financial Statements
The City Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of Governmental and Business-Type Activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements.
The Government-Wide Financial Statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The types of transactions reported as program revenues for the City are reported in three categories:
1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements.
Exceptions to this general rule are payments-in-lieu of taxes where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the government’s water and sewer function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. The assets and liabilities of the internal services funds have been included in the Statement of Net Position based on the predominant user of the services. The Vehicle Replacement, Central Services, Technology Replacement, Insurance and Employee Benefits internal service funds’ assets and liabilities have been reported in the governmental activities column.
Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. Separate statements for each fund category—governmental, proprietary, and fiduciary—are presented. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements. The City has presented all major funds that met the applicable criteria.
All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues, except for sales tax and grant revenues, to be available if they are collected within 60 days of the end of the current fiscal period. Sales tax and grant revenues are considered available if they are collected within 90 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
42 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Proprietary funds focus on total economic resources and employ the accrual basis of accounting, which recognizes increases and decreases in economic resources as soon as the underlying event or transaction occurs. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds and internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets.
All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
Fiduciary funds include both Private Purpose Trust and Custodial funds. Custodial funds use the economic resources measurement focus and are used to account for assets temporarily held by the City in a fiduciary capacity.
Private Purpose Trust funds also use the economic resources measurement focus and are used by the City to report trust arrangements under which principal and income benefit other governmental entities. The Fiduciary Fund Financial Statements include a Statement of Fiduciary Net Position and Statement of Change in Fiduciary Net Position.
The City reports the following major governmental funds:
General Fund – the City’s primary operating fund and accounts for all financial resources of the general government, except those required to be accounted for in another fund.
Successor Housing Special Revenue Fund – to account for the proceeds and dissolution of Redevelopment due to AB26x1. See further description in Note 15.
Housing Assistance Special Revenue Fund – to account for restricted grant funds received from the Federal Government to provide rental assistance payments to low-income, elderly, disabled, and handicapped people qualifying for the programs, the rehabilitation of rental property, and first-time homebuyer programs.
Funds are received from the U.S. Department of Housing and Urban Development’s Section 8 Voucher Housing Programs, State Rehabilitation Programs, and both federal and state first-time homebuyer programs.
Special Programs – to account for the proceeds of specific revenue sources that are legally restricted to be expended for specified purposes.
City Projects Capital Projects Fund – to account for proceeds used to fund the acquisition and construction of public improvements, proceeds from State Gas Tax, State and Federal transit programs, development, and for proceeds from bonds issued to fund City public facilities and infrastructure projects.
The City reports the following major enterprise funds:
Sewer Utility Fund – to account for the operation and maintenance of the City’s sewer system.
Water Utility Fund – to account for the operation and maintenance of the City’s water treatment and water transmission and distribution system.
Transit Fund – to account for the operation and management of the City’s transit operations including a fixed route bus system, taxi subsidy program and paratransit operations.
43 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Additionally, the City reports the following fund types:
Internal Service Funds
Internal Service Funds – account for centralized purchases, equipment replacement, payouts for sick and vacation leave, employee retirements and retiree health insurance premiums, and self-insured services provided to other departments of the government, or to other governments, on a cost reimbursement basis.
Fiduciary Funds
Solano Transportation Authority – to account for amounts held for Solano Transportation Authority. The City is only recording amounts that the City has a fiduciary responsibility over.
Community Action Partnership Solano – to account for amounts held for Community Action Partnership Solano.
Special Assessments Funds – to account for amounts held for benefit district participants and reimbursements.
Benefit District and Reimbursement Fund – to account for amounts held for benefit district deposits, the Hometown Hero Banner Program, and amounts seized from crimes committed.
Bond Funds – to account for bond proceeds and repayment of debt service held in trust. The City participated in the issuance of the Multifamily Housing Revenue and Refunding Bonds 1999 Series A. The bond proceeds were loaned to WLP Sycamores Apartments, LLC.
Private-Purpose Trust Fund
Successor Agency Fund – to account for the proceeds and dissolution of the Redevelopment Agency due to AB26x1. See further description in Note 15.
C. Cash, Cash Equivalents and Investments
The City pools cash resources of its various funds to facilitate cash management. The cash pool functions as a demand deposit from the position of each individual fund. Cash in excess of current requirements is invested and reported as investments. It is the City’s intent to hold investments until maturity. However, the City may, in response to market conditions, sell investments prior to maturity in order to improve the quality, liquidity or yield of the portfolio.
Interest earnings are apportioned among funds based on ending accounting period cash and investment balances.
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and highly liquid investments with original maturities of three months or less at the time of acquisition.
See further disclosures in Note 2 including use of certain methods to present deposits and investments, highly sensitive investments, and credit quality at year-end.
44 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
The City participates in the Local Agency Investment Fund (LAIF), an investment pool for local governments and special districts managed by the State of California. Under Federal Law, the State of California cannot declare bankruptcy, therefore deposits in the LAIF shall not be subject to either of the following: (a) transfer or loan pursuant to Government Code Sections 16310, 16312 or 16313 or (b) impoundment or seizure by any state official or state agency.
D. Receivables and Payables
Property, sales and use taxes related to the current fiscal year are accrued as revenue and accounts receivable and considered available if received within 60 days of year end or 90 days for sales and use tax. Federal and State grants are considered receivable and accrued as revenue when reimbursable costs are incurred under the accrual basis of accounting in the government-wide statement of net position. The amount recognized as revenue under the modified accrual basis of accounting is limited to the amount that is deemed measurable and collectible.
Unbilled utility revenue earned is recognized as revenue and accounts receivable in the enterprise funds.
Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as either “due to/from other funds” or “advances to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”
E. Net Position
In the government-wide and proprietary fund financial statements, equity is displayed in three components as follows:
Net investment in capital assets –This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation/amortization and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce this category.
Restricted net position – This category presents external restrictions imposed by creditors, grantors, contributors or laws and regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. Additionally, this category presents restrictions placed as established by the City Council.
Unrestricted net position – This category represents the net position of the City, which is not restricted or invested in capital assets net of related debt for any project or other purpose.
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first. Additionally, certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. In addition, funds have been restricted for capital projects, streets and highways, housing and special programs.
45 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
F. Fund Balance
Fund balances presented in the governmental fund financial statements represent the difference between assets and liabilities. GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions , establishes criteria for classifying fund balances into specifically defined classifications and clarifies definitions for governmental funds. GASB Statement No. 54 requires that the fund balances be classified into categories based upon the type of restrictions imposed on the use of funds. The City evaluated each of its funds at June 30, 2025 and classified fund balances into the following five categories:
Nonspendable – includes fund balance amounts that cannot be spent because they are either (a) not expected to be converted to cash or (b) legally or contractually required to be maintained intact.
Restricted – includes fund balance amounts that are subject to externally enforceable legal restrictions or constrained for a specific purpose by external parties, constitutional provisions or enabling legislation.
Committed – includes fund balance amounts that can only be used for specific purposes pursuant to constraints imposed by the formal action of the City Council. The City Council must approve an amendment to the Annual Appropriation resolution to allow for removal or change to the constraint. As of June 30, 2025 the City does not have any fund balances that have been committed.
Assigned – includes fund balance amounts that are intended to be used for specific purposes that are neither considered restricted or committed. The City Council assigns fund balance.
Unassigned – includes negative fund balances in other governmental funds and positive fund balance within the General Fund which has not been classified within the above mentioned categories. Only the General Fund may report a positive unassigned fund balance.
The city reduces restricted amounts first when expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned or unassigned) amounts are available. The City reduces committed amounts first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which any of those unrestricted fund balance classifications could be used. Additional information concerning the nature of the City’s fund balances pursuant to GASB Statement No. 54 is provided in Note 13 – Fund Balance.
G. Inventory and Prepaid Items
Inventory is valued at cost using the first-in first-out method. The cost is recorded as an expenditure or expense in the appropriate fund at the time individual inventory items are withdrawn for use (consumption method).
The City applies the purchases method for prepaid items in the governmental funds and recognizes the entire amount of the prepayment as an expenditure of the period payment is made.
46 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
H. Capital Assets
Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not available.
Donated capital assets are valued at their acquisition value, the price that would have been paid to acquire the asset, on the date donated. City policy has set the capitalization threshold for reporting infrastructure at $100,000 with the exception of water and sewer/wastewater system networks, which have a $25,000 threshold. All other non-infrastructure capital assets have a capitalization threshold of $5,000. Depreciation/amortization is recorded on a straight-line basis over estimated useful lives of the assets as follows:
Buildings and Improvements 10-40 years
Machinery and Equipment 5-20 years
Infrastructure 25-50 years
Land Improvements 25-40 years
Software 10 years
Leased equipment/SBITA 2-10 years
The City defines infrastructure as the basic physical assets that allow the City to function. The assets include streets, water and sewer systems, and storm drains. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems. Interest accrued during capital assets construction, if any, is capitalized for the business-type and proprietary funds as part of the asset cost.
I. Long-term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business- type activities, or proprietary fund type statement of net position. Bonds issued prior to the implementation of GASB Statement No. 34 have been presented at the gross issuance amount.
In the fund financial statements, 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.
J. Compensated Absences
Employees accrue vacation, sick, holiday, and compensatory time off benefits. In the government-wide financial statements, compensated absences are recorded as incurred and the related expenses and liabilities are reported.
In the fund financial statements, governmental fund types record compensated absences as expenditures in the years paid as it is the City's policy to liquidate any unpaid compensated absences at June 30 from future resources, rather than currently available financial resources. In proprietary funds, compensated absences are expensed to the various funds in the period they are earned, and such fund’s share of the unpaid liability is recorded as a long- term liability of the fund.
47 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
K. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of financial position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
L. Property Tax Revenue
Article XIII of the California Constitution (Proposition 13) limits ad valorem taxes on real property to one percent of value plus taxes necessary to pay indebtedness approved by voters prior to July 1, 1978. The Article also established the 1975/76 assessed valuation as the base and limits annual increases to the cost of living, not to exceed two percent, for each year thereafter. Property may also be reassessed to full market value after a sale, transfer of ownership, or completion of new construction. The State is prohibited under the Article from imposing new ad valorem, sales, or transaction taxes on real property.
Local government may impose special taxes (except on real property) with the approval of two-thirds of the qualified electors.
All property taxes are collected and allocated by the County of Solano to the various taxing entities. Property taxes are determined annually as of January 1 and attach as an enforceable lien on real property as of July 1. Taxes are due November 1 and February 1 and are delinquent if not paid by December 10 and April 10, respectively.
The City participates in an alternative method of distribution of property tax levies and assessments known as the “Teeter Plan”. The State Revenue and Taxation Code allows counties to distribute secured real property, assessment and supplemental property taxes on an accrual basis resulting in full payment to cities each fiscal year.
Any subsequent delinquent payments and related penalties and interest during a fiscal year will revert to Solano County. The Teeter Plan payment, which includes 95% of the outstanding accumulated delinquency, is included in property tax revenue. Under the Teeter Plan code, 5% of the delinquency must remain with the County as a reserve for Teeter Plan funding.
M. Pension
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) and PARS plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS and PARS. 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.
48 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
N. Other Postemployment 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.
For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2024
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
O. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.
P. Leases
The City determines if an arrangement is a lease at inception.
When the City is a lessor, lease receivables are recorded by the City as the present value of future lease payments expected to be received from the lessee during the lease term, reduced by any provision for estimated uncollectible amounts. Lease receivables are subsequently reduced over the life of the lease as cash is received in the applicable reporting period. The present value of future lease payments to be received is discounted based on the interest rate the City charges the lessee.
When the City is a lessee, leases are included in capital assets and lease liabilities in the statements of net position.
Lease assets represent the City’s control of the right to use an underlying asset for the lease term, as specified in the contract, in an exchange or exchange ‐like transaction. Lease assets are recognized at the commencement date based on the initial measurement of the lease liability, plus any payments made to the lessor at or before the commencement of the lease term and certain direct costs. Lease assets are amortized on a straight-line basis over the shorter of the lease term or the useful life of the underlying asset.
Lease liabilities represent the City’s obligation to make lease payments arising from the lease. Lease liabilities are recognized at the commencement date based on the present value of expected lease payments over the lease term, less any lease incentives. Interest expense is recognized ratably over the contract term. The lease term may include options to extend or terminate the lease when it is reasonably certain that the City will exercise that option.
The City recognizes payments for short-term leases with a lease term of 12 months or less as expenses as incurred, and these leases are not included as lease liabilities or right-to-use lease assets on the statement of net position.
For individual contracts where information about the discount rate implicit in the lease are not included, the City has elected to use the incremental borrowing rate to calculate the present value of expected lease payments.
49 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Q. Subscription-Based Information Technology Arrangements (SBITAs)
The City determines if an arrangement is a Subscription-Based Information Technology Arrangement (SBITA) at inception.
Right-to-use subscription assets are recognized at the commencement date and represent the City’s right to use the underlying subscription IT asset for the subscription term. Right-to-use subscription assets are measured at the initial value of the subscription liability plus any payments made to the vendor at or before the commencement date of the subscription term and any capitalizable initial implementation costs necessary to place the subscription IT asset into service. Right-to-use subscription IT assets are amortized on a straight-line basis over the shorter of the subscription term or useful life of the underlying asset.
Subscription Liabilities represent the City’s obligation to make subscription payments arising from the subscription contract. Subscription liabilities are recognized at the subscription commencement date based on the present value of future subscription payments expected to be made during the subscription term. The present value of subscription payments is discounted based on an incremental borrowing rate determined by the City.
The City recognizes payments for short-term SBITAs with a subscription term of 12 months or less as expenses as incurred, and these arrangements are not included as subscription liabilities or right-to-use subscription assets on the statements of net position.
R. Implementation of New GASB Pronouncements
During the year ended June 30, 2025, the City adopted the following Governmental Accounting Standards Board (GASB) Statements:
GASB 101 – Compensated Absences – In June 2022, the GASB issued Statement No. 101. The primary objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and amending certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023 and all reporting periods thereafter. The implementation of this statement resulted in the recognition of additional compensated absences liabilities as of June 30, 2025 and a restatement of the beginning net position for both governmental and business -type activities. Additional details can be found in Note 21 – Accounting Changes and Error Corrections.
GASB 102 – Certain Risk Disclosures – In December 2023, the GASB issued Statement No. 102. The primary objective of this statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The related disclosures will provide users with timely information regarding certain concentrations or constraints and related events that make a government vulnerable to a substantial impact, improving the understanding of a government’s financial condition. The requirements of this Statement are effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter. The Statement did not have a material effect on the financial statements.
50 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 2 - CASH AND INVESTMENTS
The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds. This pooled cash is invested by the City’s Investment Officer, and overseen by the City’s Treasurer, to enhance interest earnings. The pooled interest earned is allocated to the funds based on cash and investment balances in these funds at the end of each accounting period.
A. Deposits
The California Government Code requires California banks and savings and loans to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City’s name.
The market value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure city deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City has waived collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation.
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.
Cash and investments as of June 30, 2025 are classified in the accompanying financial statements as follows:
Statement of Net Position:
Cash and Investments 363,812,137$
Cash and Investments held by bond trustee 33,218,281
Fiduciary Funds:
Cash and Investments 38,779,575
Cash and Investments held by bond trustee 4,785,723
Total Cash and Investments 440,595,716$
Cash and Investments as of June 30, 2025 consist of the following:
Cash on hand 35,360$
Deposits with financial institutions 39,029,497
Investments 401,530,859
Total Cash and Investments 440,595,716$
51 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 2 - CASH AND INVESTMENTS, continued
B. Investments Authorized by the California Government Code and Investment Policy
The table below identifies the investment types authorized under the provisions of the City's investment policy, and in accordance with the California Government Code. 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 .
C. Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee and the City.
Investments were stated at fair value using the aggregate method in all funds and component units, resulting in the following investment income in all funds and component units:
Maximum Maximum Percentage Maximum Investment
Authorized Investment Type Maturity of Portfolio in One Issuer Local Agency Investment Fund N/A 100% N/A
U.S. Government Securities 5 years 100% 100%
U.S. Agency Securities 5 years 100% 100%
Commercial Paper 270 days 25% 10%
Certificates of Deposit 5 years N/A N/A
Negotiable Certificates of Deposit 5 years 3% 30%
Corporate Notes 5 years 30% 30%
U.S. Agency Discount Notes 5 years 100% 100%
Municipal Bonds 5 years 100% 100%
Money Market Mutual Funds N/A 20% 10%
Repurchase Agreements 92 days 20% 20%
Bankers Acceptance 180 days 40% 30%
Mortgage-backed Securities 5 years 20% 20%
Unsubordinated Obligations 5 years 30% 30%
Maximum Maximum Percentage Maximum Investment
Authorized Investment Type Maturity of Portfolio in One Issuer Local Agency Investment Fund N/A 100% 100%
U.S. Government Securities N/A 100% 100%
Repurchase Agreements 1 year 100% 100%
Money Market Mutual Funds N/A 100% 100%
Guaranteed Investment Contract N/A 100% 100%
Unrealized loss in changes in fair value of investments 10, 667,234$ Interest income 11,155,736
Total investment income - Governmental and Proprietary Funds 21,143,020$ Total investment income - Fiduciary Funds 679,950$
52 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 2 - CASH AND INVESTMENTS, continued
The City’s portfolio value fluctuates in an inverse relationship to any change in interest rates. Accordingly, if interest rates have risen, the portfolio value will have declined. If interest rates have fallen, the portfolio value will have risen.
In accordance with GASB Statement No. 31, the portfolio for year-end reporting purposes is treated as if it were all sold.
Therefore, fund balance must reflect the portfolio’s change in value. These portfolio value changes are unrealized unless sold. The City’s practice is to buy and hold investments until their maturity dates.
D. Disclosures Relating to Interest Rate Risk
The City manages its exposure to interest rate risk by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments as of June 30, 2025 by maturity:
E. Disclosures Relating to Credit Risk
Credit Risk is the risk of loss of value of an investment due to a downgrade of its rating or the failure or impairment of its issuer. Credit Risk 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 June 30, 2025 for each investment type. In order to limit loss exposure due to Credit Risk, the investment policy limits purchases of investments in commercial paper to those rated A-1 by Standard & Poor’s or P-1 by Moody’s Investors Service.
The U.S. Agency Securities, Treasuries, and Supranationals have a split rating. As of June 30, 2025 the securities were rated AAA by Moody’s and AA by Standard & Poor’s Rating Services. All negotiable certificates of deposit held by the City are under $250,000 and fully insured by the Federal Deposit Insurance Corporation.
Investment Type Fair Value Less Than 1 1-5
Local Agency Investment Fund 62,227,577$ 62,227,577$ -$ U.S. Agency Securities 131,208,709 13,403,984 117,804,725 U.S. Government Securities 27,009,971 4,850,780 22,159,191 Municipal Bonds 33,796,340 12,467,928 21,328,412 Corporate Notes 65,616,471 6,292,510 59,323,961 Commercial Paper 8,231,366 8,231,366 -
Negotiable Certificates of Deposit 244,887 - 244,887 Supranational 23,767,724 7,883,520 15,884,204 Money Market Mutual Funds 12,847,821 12,847,821 - Asset-backed Securities 36,579,993 - 36,579,993 Total 401,530,859$ 128,205,486$ 273,325,373$
Investment Maturities (in Years)
53 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 2 - CASH AND INVESTMENTS, continued
F. Investments in Local Agency Investment Funds
The Local Agency Investment Fund (LAIF), is a voluntary program created by state statute in 1977 as an investment alternative for California’s local governments and special districts. Under the direction of the State Treasurer’s Office and audited by the Bureau of State Audits, the program offers local agencies the opportunity to participate in a major portfolio. The fair value for the City’s position in LAIF is the same as the value of the pooled shares.
The City’s investments with LAIF at June 30, 2025, included a small portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments may include the following:
Structured Notes – debt securities (other than Asset-Backed securities) whose cash-flow characteristics (coupon rate, redemption amount, or state maturity) depend upon one or more indices and/or that have embedded forwards or options.
Asset-Backed Securities – generally mortgage-backed securities which entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMOs) or credit card receivables.
As of June 30, 2025, the City had $62,227,577 invested in LAIF, which has invested 3.81% of the pool investments funds in medium-term and short-term Structured Notes and Asset-Backed Securities. The City valued its investment in LAIF as of June 30, 2025 by multiplying the City’s account balance with a fair value factor determined by LAIF. This fair value factor was determined by dividing all LAIF participants’ total aggregate fair value by total aggregate amortized cost resulting in a factor of 1.001198310.
G. Fair Value of Investments
The City of Vacaville measures and records its investments using the fair value measurement framework established with GASB Statement No. 72. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows:
Level 1 – Inputs to the valuation methodology are (unadjusted) quoted prices for identical assets or liabilities in active markets that the City has the ability to access.
Minimum
Legal Not
Investment Type Rating AAA AA A A1/P1 Rated
Local Agency Investment Fund 62,227,577$ N/A -$ - $ - $ - $ 62,227,577$ U.S. Agency Securities 131,208,709 N/A 131,208,709 - - - - U.S. Government Securities 27,009,971 N/A 25,287,357 1,722,614 - - - Municipal Bonds 33,796,340 N/A 9,337,590 23,377,157 1,081,593 - - Corporate Notes 65,616,471 A 13,981,020 22,545,911 29,089,540 - - Commercial Paper 8,231,366 A1/P1 - - - 8,231,366 - Negotiable Certificates of Deposit 244,887 N/A - - - - 244,887 Supranational 23,767,724 AA 23,767,724 - - - - Money Market Mutual Funds 12,847,821 AAA 12,847,821 - - - - Asset-backed Securities 36,579,993 36,579,993 - - - - Total 401,530,859$ 253,010,214$ 47,645,682$ 30,171,133$ 8,231,366$ 62,472,464$ 54 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 2 - CASH AND INVESTMENTS, continued
Level 2 – Inputs to the valuation methodology include:
Quoted prices for similar assets or liabilities in active markets Quoted prices for identical or similar assets or liabilities in inactive markets Inputs other than quoted prices that are observable for the asset or liability Inputs that are derived principally from or corroborated by observable market data by correlation or other means
Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk).
The City had the following recurring fair value measurements as of June 30, 2025:
The following is a description of the valuation methods and assumptions used by the City to estimate the fair value of its investments. When available, quoted prices were used to determine fair value. When quoted prices in active markets were not available, fair values were based on information received from the City’s custodians of investments. There have been no changes in the methods and assumptions used at June 30, 2025. Debt securities classified in Level 1 were valued using prices quoted in active markets for those securities. Debt securities classified in Level 2 were valued accordingly:
U.S. Agency Securities, Municipal Bonds, Corporate Notes, Commercial Paper, Supranational – Quoted prices for similar securities in active markets.
Quoted Prices in
Active Markets
for Identical
Assets
Significant Other
Observable
Inputs
Significant
Unobservable
Inputs
Investments by fair value level 6/30/2025 (Level 1) (Level 2) (Level 3) Total U.S. Agency Securities 131,208,709$ -$ 131,208,709$ -$ 131,208,709$ U.S. Government Securities 27,009,971$ - 27,009,971 - 27,009,971 Municipal Bonds 33,796,340$ - 33,796,340 - 33,796,340 Corporate Notes 65,616,471$ - 65,616,471 - 65,616,471 Commercial Paper 8,231,366$ - 8,231,366 - 8,231,366 Negotiable Certificates of Deposit 244,887$ - 244,887 - 244,887 Supranational 23,767,724$ - 23,767,724 - 23,767,724 Asset-backed Securities 36,579,993$ - 36,579,993 - 36,579,993 Total 326,455,461$ -$ 326,455,461$ -$ 326,455,461$ Investments Exempt From Disclosure
Local Agency Investment Fund 62,227,577
Money Market 12,847,821
Investment portfolio total 401,530,859$
Fair Value Measurement Using
55 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 3 – LOANS RECEIVABLE
At June 30, 2025, the City’s outstanding loans receivables net of allowances were as follows:
$ 6,565,957 City loans recorded in the Special Revenue Fund, Housing Assistance, are for the HOME Partnership Program (HOME). HOME is a U.S. Housing and Urban Development program administered by the California Department of Housing and Community Development (HCD). The City uses HOME funds to operate an acquisition and rehabilitation loan program. The loans are made to owners of rental properties that agree to restrict the rent of the HOME-assisted units to low and moderate income families and to provide assistance to first-time homebuyers. In Fiscal Year 2024, the City Council approved a loan consolidation of 32 existing Eden Housing loans for four different housing projects. The loans were funded through several sources, including HOME loans. This resulted in the accrued interest for the Hillside Senior Apartments added to the principal balance of this receivable.
$ 171,379 The Successor Housing Shared Equity loans are recorded in the Special Revenue funds for expanding homeownership opportunities to low and moderate-income households. The amount borrowed is the minimum needed to close the gap between lender requirements and buyer’s cash for down payment assistance and/or closing costs. Qualified homebuyers may receive up to $50,000 or 20% of the purchase price (whichever is less) towards the purchase of a home located in Vacaville. The deferred loan terms are 45 years at zero interest with no payments required during that time as long as the homebuyer does not sell, transfer ownership, rent the property, refinance it with cash back, or prepay the loan with any other funds. The loan will be forgiven if the borrower remains in the home for the full 45-year loan term. There is a 45-year Resale Restriction Agreement that will be recorded against the property. The City will hold an option to purchase the home at a restricted sales price to keep the home affordable for another buyer.
$ 285,700 A loan receivable was recorded in the Special Revenue Fund, Housing Assistance, for the Cal Home Program. The purpose of the program is to provide assistance in the form of a deferred payment loan to eligible households in purchasing their first home. Qualified homebuyers may receive a maximum loan amount of $50,000. The loan term is a minimum 30-year deferred payment loan at 0% interest with the principal due and payable at year
30. $ 4,357,519 A loan receivable was recorded in the Successor Housing Special Revenue Fund from Rocky Hill Investors, L.P. for phase one of the Callen Street/Bennett Hill Court Housing Project. Phase one of the project involves the acquisition and rehabilitation of sixty-four affordable rental units on Bennett Hill Court and Rocky Hill Road. The term of the promissory note is fifty-five years at 1% interest. The developer shall make annual payments of principal and interest in the amount of fifty percent of residual receipts.
$ 93,409 City loans recorded in the Special Revenue Fund, Neighborhood Stabilization Program (NSP), are for a first-time homebuyer loan program. The program is designed to provide assistance to eligible homebuyers in purchasing foreclosed homes located within the program’s eligible area. The program provides this assistance in the form of a shared equity, deferred payment, second priority loan to reduce the gap between the purchase price and closing costs of affordable housing units that will be occupied by the homebuyers.
The term of each loan shall be for a maximum of 15 years. If the borrower remains in the home for the full term of the affordability period the loan is forgiven.
$ 6,905,000 A loan receivable was recorded in the Successor Housing Special Revenue Fund from Callen Street Investors, L.P. for phase two of the Callen Street/Bennett Hill Court Housing Project. Phase two includes the acquisition and rehabilitation/new construction of 66 rental 56 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 3 – LOANS RECEIVABLE, continued
units on Callen Street. The term of the promissory note is fifty-five years at 1% interest.
The developer shall make annual payments of principal and interest in the amount of fifty percent of residual receipts.
$ 137,500 A loan receivable has been recorded in the Special Revenue Fund, Housing Assistance, for a loan provided to Vacaville Social Services Corporation, a nonprofit corporation, which operates the Opportunity House homeless shelter in Vacaville. The original $300,000 loan was used for construction improvements at the site where the shelter was relocated and expanded. Monthly payments of $1,000 began in January 2017; the loan was amended and restated in October 2017 to $275,000. Payment is deferred until 2067. If the borrower complies with all City requirements for the duration of the maturity period the loan is forgiven.
$ 1,515,952 City loans recorded in the Special Revenue Fund, Community Development, are for the Community Development Block Grant (CDBG) and Rental Rehabilitation Program (RRP).
In the past, the City operated CDBG and RRP, and, even though the City no longer receives funding under these programs, the borrowers are repaying the existing loan balances. Repayments are used to carry out CDBG and RRP eligible activities. In Fiscal Year 2024, the City Council approved a loan consolidation of 32 existing Eden Housing loans for four different housing projects. The loans were funded through several sources, including CDBG loans. This resulted in the accrued interest for the Orchard-Maples and Willows housing projects added to the principal balance of this receivable.
$ 123,778 City loans recorded are for the First Time Homebuyer program (CALHOME). This is a Housing and Urban Development (HUD) program administered by the California Department of Housing and Community Development (HCD). Funds are to be used for purposes set forth in Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990. The Cranston-Gonzalez National Affordable Housing Act intends to expand the supply of decent, safe, sanitary affordable housing for very low and low income Americans.
Households assisted must meet the income determination requirements. During Fiscal Year 19 three loans were issued ranging between $50,000 and $75,000. Funds in the amount of $500,000 were made available in 2016.
$ 4,904,112 Successor Housing loans recorded in the Special Revenue Funds are for the Neighborhood Conservation Program (NCP), the purpose of which is to provide a pool of loan funds to encourage investor-owners and owner-occupants to improve the lower income neighborhoods of the City and further equal opportunity in housing. Loans ranging in amounts from $1,000 to $45,000 per unit are offered at 3% interest and may be amortized over 15 years. The loans are secured by property. Loans to households with very low incomes may be deferred until such time that household income becomes sufficient to repay the loan; the deferred loan will become fully amortized at 3% interest.
Deferred loans may also be made to low-income households on fixed incomes. The amount of loans in arrears is $153,974. In Fiscal Year 2024, the City Council approved a loan consolidation of 32 existing Eden Housing loans for four different housing projects.
The loans were funded through several sources, including NCP loans. This resulted in the accrued interest for the Orchard-Maples and Willows housing projects added to the new principal balance of this receivable.
57 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 3 – LOANS RECEIVABLE, continued
$ 9,258,306 The Successor Housing Equity loans recorded in the Special Revenue Funds are for primary financing to obtain blighted property. The loan amounts and terms may vary depending on the amounts needed to acquire and improve the property. The loans are offered at 0% interest, with the total payment deferred until the end of the term and are secured by the property. In Fiscal Year 2023, the Vaca Meadows and Vaca Depot-Lincoln Corners Loans were amended to add the accrued interest to the principal loan balance, with the loan payments deferred until maturity.
$ 13,785 The Successor Housing Down Payment loans recorded in the Special Revenue Funds are for assisting low-income families with their down payment and closing costs. There are two types of loans. The first type is given in coordination with a Mortgage Credit Certificate (MCC) for a maximum amount of $15,000 deferred for five years, and repaid over ten years at an interest rate of 5%. The loan is not secured against the property. The second type has no other assistance for a maximum amount of $10,000 deferred for five years, and repaid over fifteen years at an interest rate of 5%. The amount of loans in arrears is $28,822.35.
$ 2,177,773 A loan receivable was recorded in the Successor Housing Special Revenue Funds from Vacaville Community Housing, a non-profit corporation. The loan is secured by multi-family housing units at 0% interest and the total payment is deferred until the year 2025. In Fiscal Year 2024, the City Council approved a loan consolidation of 32 existing Eden Housing loans, formerly Vacaville Community Housing, for four different housing projects. The loans were funded through several sources. This resulted in the accrued interest for the Orchard- Maples and Willows housing projects added to the new principal balance of this receivable.
$ 300,000 A loan receivable was recorded in the Successor Housing Special Revenue Funds from Petaluma Ecumenical Properties Inc. (PEP Housing). The loan is to be used to fund eligible predevelopment costs and expenses for the affordable senior housing project at 220 Aegean Way and will accrue interest at a rate of 3% per annum.
$ 1,113,000 A loan receivable was recorded in the Successor Housing Special Revenue Fund from Trower Housing Partners, L.P. for the acquisition of land for Veterans housing on Rocky Hill Road. The term of the promissory note is fifty-seven years at 1% interest. The developer shall make annual payments of principal and interest in the amount of 50% of residual receipts.
$ 5,820,091 A loan receivable was recorded in the Successor Housing Special Revenue fund from Meadows Holly Partners, LP. Related to the affordable housing Meadows Holly Project.
The loan is a consolidation of former Redevelopment Agency loans issued for the purpose of rehabilitation of affordable housing. The term of the loan is fifty-five years at 1% interest.
The borrower shall make annual payments in the amount of 25% of residual receipts.
$ 1,121,555 A loan receivable was recorded in the Successor Housing Special Revenue Fund from Eden Oak Grove Investors, L.P. related to the affordable housing Oak Grove Apartment Project. The term of the loan is fifty-five years at 1% interest. The borrower shall make annual payments in the amount of 50% of residual receipts. The loan is for pre- development, with drawdowns as needed by developer. In Fiscal Year 2025 the developer drawdown was $14,428.56.
58 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 3 – LOANS RECEIVABLE, continued
$ 607,500 A loan receivable was recorded in the Successor Housing Special Revenue Fund and the 2001 Tax Allocation Bond Proceeds Fund (2001 TAB), a City Project Fund. The loan is for an Amended and Restated Disposition and Development Agreement (ARDDA) with Blackpine 700 Parc, LLC. 2001 TAB proceeds in the amount of $450,000 and $543,750 from the Successor Housing Special Revenue fund was loaned to Blackpine for this ARDDA. The term of the note is two years from the note commencement date of December 13, 2022, with an annual interest rate of 7.75% and interest payments due monthly during the note term. A principal payment of $386,250 was paid in October 2024.
$ 45,472,316 Total City loans receivable
For governmental activities, the City recorded an allowance for delinquent and forgivable loans of $1,834,395.
At June 30, 2025, the Private Purpose Trust Fund Successor Agency’s outstanding loans receivables were as follows:
$ 2,364,740 A loan receivable was recorded in the former Redevelopment Agency Debt Service Fund from Vacaville Community Housing, a non-profit corporation. The loan is secured by multi- family housing units at 0% interest, and the payment is deferred until the year 2025.
$ 8,568 The former Redevelopment Agency Downtown Rehabilitation loans recorded in the Capital Projects Funds are for façade improvements and historic district building loans made to business tenants in the downtown area. Façade improvement loans are fully amortized for 15-year terms at 1% interest with a $20,000 maximum loan per standard building street frontage. Façade improvements may include a complete renovation, signage, exterior lighting, landscaping, painting and awnings. Historic district building loans are fully amortized for 25-year terms at 3% interest with a maximum loan amount of $135,000.
Historic district building loans for tenant improvements and other non-seismic related costs require 50% matching funds contributed by the borrower, which may include private funds as well as loans made through the façade improvement loan program. Borrowers are not required to match funds on seismic upgrades. These loans may be assumable on a case- by-case basis.
$ 2,373,308 Total Private Purpose Trust Fund Successor Agency loans receivable For Successor Agency activities, the City recorded an allowance for delinquent and forgivable loans of $163,342.
59 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 4 – LEASES
A. Lease Receivable
The City, as a lessor, had entered into 20 lease agreements involving land and facilities. Out of these, 15 are qualified leases under GASB Statement No. 87. As of 06/30/2025, the total combined value of the lease receivable is $8,533,641, and the combined value of the deferred inflow of resources is $8,363,182.
The following is a summary of the 15 qualified leases and description of the lease arrangements:
Governmental
Business Type
Land Leases – The City is the lessor for one ground lease agreement of real property between the City and Vacaville Youth Soccer League for approximately 12 acres at the Horse Creek Soccer Complex within Centennial Park. The lease expires April 30, 2037 and has an interest rate of 2%.
Telecommunication Leases – The City entered into 14 lease agreements with wireless providers (AT&T, Verizon, T-Mobile, Tower Co.) related to telecommunications. These agreements are for the installation, operation, and management of telecommunication sites, mounting structures and equipment associated with the transmission and reception of radio communication signals. These agreements are all qualified leases under GASB Statement No. 87 with periods covering various ranges and the latest expiring February 2052. Interest rates range from 1% - 4%.
Total payments for the current year varied from $20,000 to $82,000.
Balance Balance Lease Interest
Lease at 6/30/2024 Additions Reductions at 6/30/2025 Revenue Revenue Land 164,800$ -$ (10,565)$ 154,235$ 12,373 3,810 Telecommunications 1,946,669 3,778,769 (523,481) 5,201,957 407,267 147,755 Total 2,111,469$ 3,778,769$ (534,046)$ 5,356,192$ 419,640 151,565 Lease Receivable Inflows of Resources
Balance Balance Lease Interest
Lease at 6/30/2024 Additions Reductions at 6/30/2025 Revenue Revenue Telecommunications 1,555,401$ 1,717,036$ (94,988)$ 3,177,449$ 127,518 94,851 Total 1,555,401$ 1,717,036$ (94,988)$ 3,177,449$ 127,518 94,851 Inflows of ResourcesLease Receivable
60 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 4 – LEASES, continued
Future annual lease receivables as of June 30, 2025, are as follows:
Governmental Activities
Business-type Activities
Lease Receivable
Fiscal Year Principal Payments Interest Payments Total Payments 2026 295,749$ 155,649$ 451,398$ 2027 211,004 180,417 391,421 2028 174,112 172,684 346,796 2029 146,385 166,480 312,865 2030 162,245 161,440 323,685 2031 - 2035 1,075,511 710,772 1,786,283 2036 - 2040 1,324,096 500,810 1,824,906 2041 - 2045 1,598,825 241,967 1,840,792 2046 - 2050 368,265 18,737 387,002 Total 5,356,192$ 2,308,956$ 7,665,148$ Governmental Activities
Lease Receivable
Fiscal Year Principal Payments Interest Payments Total Payments 2026 45,666$ 108,097$ 153,763$ 2027 40,865 118,290 159,155 2028 47,867 116,873 164,740 2029 55,331 115,193 170,524 2030 63,282 113,235 176,517 2031 - 2035 454,608 525,652 980,260 2036 - 2040 743,048 422,794 1,165,842 2041 - 2045 965,922 260,721 1,226,643 2046 - 2050 657,881 100,445 758,326 2051 - 2052 102,979 3,598 106,577 Total 3,177,449$ 1,884,898$ 5,062,347$ Business-Type Activities
61 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 4 – LEASES, continued
B. Deferred Inflows of Resources
Governmental
Business Type
C. Lease Payable
Lease agreements where the City is considered the lessee are summarized as follows:
The City has entered into agreements to lease certain equipment and a land use site for telecommunications equipment. The lease agreements qualify as other than short-term leases under GASB 87. The City has fully adopted and implemented the GASB 87 standard in which the City recognizes lease liability and a right-to-use asset, which is included in the Note 6 Capital Assets schedules. As of June 30, 2025, the City had six active leases with a total combined lease liability of $2,304,218, payments ranging from $9,546 to $767,833 and interest rates that range from 0.20% to 4.00%.
Balance Balance
Lease at 6/30/2024 Additions Reductions at 6/30/2025
Land 158,785$ -$ (12,373)$ 146,412$ Telecommunications 1,883,114 3,778,769 (511,062) 5,150,821 Total 2,041,899$ 3,778,769$ (523,435)$ 5,297,233$ Deferred Inflows of Resources
Balance Balance
Lease at 6/30/2024 Additions Reductions at 6/30/2025
Telecommunications 1,476,431$ 1,717,036$ (127,518)$ 3,065,949$ Total 1,476,431$ 1,717,036$ (127,518)$ 3,065,949$ Deferred Inflows of Resources
Balance Balance Due Within
Lease at 6/30/2024 Additions Reductions at 6/30/2025 One Year Equipment 1,887,161$ 974,416$ (1,118,765)$ 1,742,812$ 356,668$ Land 614,946 - (53,540) 561,406 58,865 Total 2,502,107$ 974,416$ (1,172,305)$ 2,304,218$ 415,533$ Lease Payable
62 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 4 – LEASES, continued
Annual requirements to amortize long-term lease obligations and related interest are as follows:
Governmental Activities
NOTE 5 – SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITAs)
Governmental Activities
For the year ended June 30, 2025, the City had 52 active subscriptions for the use of information technology. As of June 30, 2025 the value of the total subscription liability outstanding is $5,698,909. The City is required to make annual fixed payments for these various subscriptions with interest rates ranging from 2.00% to 3.53%. The right- to-use subscription IT assets are recognized as Capital Assets (see Note 6) and, as of June 30, 2025, have a value of $11,726,232 with accumulated amortization of $4,993,894.
Lease Payable
Fiscal Year Principal Payments Interest Payments Total Payments 2026 415,533$ 46,214$ 461,747$ 2027 416,506 37,914 454,420 2028 418,928 29,285 448,213 2029 302,842 21,571 324,413 2030 312,378 15,646 328,024 2031 - 2033 438,031 12,335 450,366 Total 2,304,218$ 162,965$ 2,467,183$ Governmental Activities
GOVERNMENTAL ACTIVITIES: Balance as of Balance as of Due Within July 1, 2024 Additions Reductions June 30, 2025 One Year Subscription Liability
Software 7,083,492$ 949,475$ (2,334,058)$ 5,698,909$ 1,900,233$ Total Subscription Liability 7,083,492$ 949,475$ (2,334,058)$ 5,698,909$ 1,900,233$ Fiscal Year Principal Payments Interest Payments Total Payments 2026 1,900,233$ 197,224$ 2,097,457$ 2027 1,316,972 142,902 1,459,874 2028 923,790 94,253 1,018,043 2029 583,625 65,235 648,860 2030 487,190 40,108 527,298 2031 - 2032 487,099 40,869 527,968 Total 5,698,909$ 580,591$ 6,279,500$ Governmental Activities
63 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 5 – SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITAs), continued
Business-Type Activities
On October 13, 2023, the City entered into a 56 month subscription for the use of a transit management information system. The City is required to make annual fixed payments of $35,000 and the subscription has an interest rate of 3.51%. The right-to-use subscription IT asset is recognized as a Capital Asset (see Note 6) and, as of June 30, 2025, has a value of $163,524 with accumulated amortization of $60,154.
BUSINESS-TYPE ACTIVITIES: Balance as of Balance as of Due Within July 1, 2024 Additions Reductions June 30, 2025 One Year Subscription Liability
Software 128,524$ 14,023$ (44,510)$ 98,037$ 31,558$ Total Subscription Liability 128,524$ 14,023$ (44,510)$ 98,037$ 31,558$ Fiscal Year Principal Payments Interest Payments Total Payments 2026 31,558 3,442 35,000 2027 32,666 2,334 35,000 2028 33,813 1,187 35,000 Total 98,037$ 6,963$ 105,000$ Business-Type Activities
64 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 6 – CAPITAL ASSETS
Government-Wide Financial Statements
A. Summary
The following is a summary of capital assets as of June 30, 2025:
Total
Governmental Business-Type Primary
Activities Activities Government
Non-Depreciable/Amortizable Assets:
Land 182,537,685$ 10,834,802$ 193,372,487$ Construction in progress 68,289,107 15,770,852 84,059,959 Right-to-use subscription in progress 138,116 - 138,116 Total 250,964,908 26,605,654 277,570,562 Depreciable/Amortizable Assets:
Buildings & improvements 71,000,003 381,745,269 452,745,272 Land improvements 77,239,847 - 77,239,847 Equipment 10,493,828 20,797,474 31,291,302 Vehicles 39,768,846 90,968 39,859,814 Software 153,928 - 153,928 Infrastructure 432,108,374 159,968,574 592,076,948 Right-to-use leased land 749,266 - 749,266 Right-to-use leased equipment 3,693,667 - 3,693,667 Right-to-use subscription software 11,726,232 271,773 11,998,005 646,933,991 562,874,058 1,209,808,049 Less accumulated depreciation/amortization (364,074,315) (250,776,823) (614,851,137) Right-to-use leased land (268,393) - (268,393) Right-to-use leased equipment (1,355,674) - (1,355,674) Right-to-use subscription software (4,993,894) (125,385) (5,119,279) Total depreciable/amortizable assets, net 276,241,715 311,971,850 588,213,565 Total capital assets, net 527,206,623$ 338,577,504$ 865,784,127$ 65 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 6 – CAPITAL ASSETS, continued
B. Governmental Activities
The following is a summary of capital assets for governmental activities:
Capital asset balances for the year ended June 30, 2024, net of depreciation were understanded by $249,968 as described in Note 21. During the fiscal year, $45,090 of governmental equipment with accumulated depreciation of $33,090 was transferred to the Sewer Utility.
Depreciation/amortization expense was charged to functions as follows:
Internal service capital assets included in general governmental activities at June 30, 2025 were $14,954,468 (net depreciable value) with related depreciation/amortization expense of $3,617,356.
Balance Balance
July 1, 2024 Adjustments Additions Disposals Transfers June 30, 2025 Non-Depreciable/Amortizable Assets:
Land 182,537,685$ -$ -$ -$ -$ 182,537,685$ Construction in progress 34,919,730 - 37,167,035 (100,519) (3,697,139) 68,289,107 Right-to-use subscription in progress - - 198,884 - (60,768) 138,116 Total 217,457,415 - 37,365,919 (100,519) (3,757,907) 250,964,908 Depreciable/Amortizable Assets:
Buildings & improvements 70,133,831 - - - 866,172 71,000,003 Land improvements 73,983,839 - 940,314 - 2,315,694 77,239,847 Equipment 9,226,600 38,204 959,521 (200,680) 470,183 10,493,828 Vehicles 37,099,145 307,730 2,552,211 (190,240) 39,768,846 Software 599,905 - - (445,977) - 153,928 Infrastructure 424,135,117 - 7,973,257 - - 432,108,374 Right-to-use leased land 749,266 - - - - 749,266 Right-to-use leased equipment 2,720,511 - 973,156 - - 3,693,667 Right-to-use subscription software 10,980,135 - 898,193 (212,864) 60,768 11,726,232 Total 629,628,349 345,934 14,296,652 (1,049,761) 3,712,817 646,933,991 Less accumulated depreciation/amortization for:
Buildings & improvements (35,188,582) - (1,878,322) - - (37,066,904) Land improvements (48,344,204) - (1,618,342) - - (49,962,546) Equipment (6,206,650) (3,820) (1,127,397) 196,056 33,090 (7,108,721) Vehicles (22,218,027) (92,146) (2,947,652) 99,937 (25,157,888) Software (543,060) - (11,722) 400,854 - (153,928) Infrastructure (235,399,033) - (9,225,295) - - (244,624,328) Right-to-use leased land (201,295) - (67,098) - - (268,393) Right-to-use leased equipment (750,320) - (605,354) - - (1,355,674) Right-to-use subscription software (2,909,245) - (2,297,513) 212,864 - (4,993,894) Total (351,760,416) (95,966) (19,778,695) 909,711 33,090 (370,692,276) Total depreciable/amortizable assets, net 277,867,933 249,968 (5,482,043) (140,050) 3,745,907 276,241,715 Governmental activities capital assets, net 495,325,348$ 249,968$ 31,883,876$ (240,569)$ (12,000)$ 527,206,623$ Governmental activities:
General government 3,034,869$
Public safety 3,377,552
Public works 8,971,868
Community services 675,327
Housing 101,724
Capital assets held by the government's internal service funds are charged to the various functions based on usage of the assets 3,617,356 Total Government activities depreciation/amortization expense 19,778,695$ 66 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 6 – CAPITAL ASSETS, continued
Fund Financial Statements
The fund financial statements do not present general government activities capital assets but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.
C. Business-type Activities
The following is a summary of capital assets for business-type activities:
During the fiscal year, $45,090 of equipment with accumulated depreciation of $33,090 was transferred to the Sewer Utility from governmental activities.
Depreciation/amortization expense was charged to functions as follows:
Balance Balance
July 1, 2024 Additions Disposals Transfers June 30, 2025 Non-Depreciable/Amortizable Assets:
Land 10,834,802$ -$ -$ -$ 10,834,802$ Construction in progress 18,222,157 7,301,465 - (9,752,770) 15,770,852 Total 29,056,959 7,301,465 - (9,752,770) 26,605,654 Depreciable/Amortizable Assets:
Buildings & improvements 381,745,269 - - - 381,745,269 Equipment 20,448,576 308,972 (5,164) 45,090 20,797,474 Vehicles 74,000 16,968 - - 90,968 Infrastructure 146,956,507 3,259,297 - 9,752,770 159,968,574 Right-to-use subscription software 174,747 97,026 - - 271,773 Total 549,399,099 3,682,263 (5,164) 9,797,860 562,874,058 Less accumulated depreciation/amortization for:
Buildings & improvements (177,432,758) (8,740,513) - - (186,173,271) Equipment (10,153,369) (1,165,426) 5,164 (33,090) (11,346,721) Vehicles (58,326) (5,237) - - (63,563) Infrastructure (50,058,937) (3,134,331) - - (53,193,268) Right-to-use subscription software (32,127) (93,258) - - (125,385) Total (237,735,517) (13,138,765) 5,164 (33,090) (250,902,208) Total depreciable/amortizable assets, net 311,663,582 (9,456,502) - 9,764,770 311,971,850 Business-type activities capital assets, net 340,720,541$ (2,155,037)$ -$ 12,000$ 338,577,504$ Business-type activities:
Sewer 8,722,319$
Water 2,830,226
Transit 1,586,220
Total Business-type activities depreciation/amortization expense 13,138,765$ 67 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 7 – LONG-TERM LIABILITIES
A. Long-Term Liabilities
The following is a summary of long-term liabilities for the fiscal year ended June 30, 2025
Activity
The following is a summary of changes in long-term liabilities for governmental activities. Activity for the City’s fiscal year ended June 30, 2025:
Balance Balance Due Within
July 1, 2024 Additions Reductions June 30, 2025 One Year Governmental Activities:
Financed Obligations 24,111,931$ 3,798,461$ 1,561,202$ 26,349,190$ 1,499,124$ Governmental activities long-term liabilities 24,111,931$ 3,798,461$ 1,561,202$ 26,349,190$ 1,499,124$ Balance Balance Due Within
July 1, 2024 Additions Reductions June 30, 2025 One Year Business-Type Activities:
Loans Payable 70,744,460$ -$ 5,387,861$ 65,356,599$ 10,205,000$ Financed Obligations 1,810,053 - 692,421 1,117,632 735,764 72,554,513$ -$ 6,080,282$ 66,474,231$ 10,940,764$ Balance Balance Due Within
July 1, 2024 Additions Reductions June 30, 2025 One Year Private-Purpose Trust:
Bonds Payable 23,040,663$ -$ 2,546,333$ 20,494,330$ 2,500,000$ Private-Purpose trust long-term liabilities 23,040,663$ -$ 2,546,333$ 20,494,330$ 2,500,000$ Beginning Ending Due Within
Financed Obligations: Balance Additions Reductions Balance One Year Vacaville Recreation Corporation 232,672$ -$ 184,968$ 47,704$ 47,704$ Leasource Financial Services, Inc. - Public Safety Radio 929,908 - 183,716 746,192 189,948 Leasource Financial Services, Inc. - Equipment 2019 361,483 - 61,737 299,746 63,453 PNC, LLC 1,810,054 - 692,421 1,117,633 735,764 Holman Corporation - 2014 Acquisition 57,516 - 57,516 - - Holman Corporation - 2015 Acquisition 364,771 - 179,912 184,859 184,859 Holman Corporation - 2017 Acquisition 107,416 - 34,722 72,694 35,794 Holman Corporation - 2017 Acquisition 188,706 - 45,126 143,580 46,466 Ford Explorer 2,629 - 2,629 - - Motorola Solutions 375,784 - 118,455 257,329 125,136 Engie Equipment Lease 19,680,992 838,461 - 20,519,453 - Webster Bank Fire Fleet Purchase Agreement - 2,960,000 - 2,960,000 70,000 Total Financed Obligations 24,111,931 3,798,461 1,561,202 26,349,190 1,499,124 Total Long-term debt 24,111,931$ 3,798,461$ 1,561,202$ 26,349,190$ 1,499,124$ 68 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 7 – LONG-TERM LIABILITIES, continued
Financed Obligations:
Original Debt Outstanding
Amount June 30, 2025
$ 2,626,700 $ 47,704 Sublease agreement with Vacaville Recreation Corporation (Corporation) and Agency. The Agency entered into an agreement, option to purchase and right of first refusal with the Corporation for the in-line/multi-purpose portion of the Vacaville Skating Center. Pursuant to a separate sublease agreement between the City and Agency, the City agreed to assume all rights and responsibilities of the Agency under the lease agreement. In the event of the City’s inability to pay the sublease, the Agency is obligated to pay the Corporation the lease payments. The City also assumed the option to purchase the subleased premises for one dollar at the expiration of the term of the sublease or prepayment in full of the sublease payments. This sublease qualifies as a capital lease for accounting purposes and has been recorded as a capital asset and liability at the present value of the future minimum lease payments. Lease payments are paid monthly through September 2025. Lease payments are funded through the Parks and Recreation Capital Projects Fund.
$ 619,287 $ 299,746 Lease agreement between the City and Leasource Financial Services, Inc. to purchase new equipment, a Peterbilt Water Truck. A lease payment of $17,761 will be paid quarterly beginning January 2020 through October 2029 at an interest rate of 2.75%.
$ 1,800,000 $ 746,192 Lease agreement between the City and Leasource Financial Services, Inc. to purchase a new Public Safety radio communications system, including system components, radio dispatch console, and radio subscriber components from Motorola, Inc. A lease payment of $53,144 will be paid quarterly beginning May 2019 through February 2029 at an interest rate of 3.35%.
$ 6,993,972 $1,117,633 Lease agreement between the City and PNC, LLC for facility improvement projects in progress throughout the City at an estimated cost of $6,993,972 with an interest rate of 3.10%. Lease payment will be paid semi-annually beginning February 2014 through August 2026. Lease payments are funded through energy cost savings in the General Fund, Gas Tax, and Special Revenue Maintenance Districts Funds.
$ 507,647 $ 0 Lease agreement between the City and Holman Corporation for the purchase of a dump truck and vactor truck at an estimated cost of $507,647 with an interest rate of 2.89%. Lease payment was paid annually through March 2025.
Lease payments were funded through the Equipment Replacement Internal Service Fund.
$ 1,641,125 $ 184,859 Lease agreement between the City and Holman Capital Corporation for the purchase of a fire engine and ladder truck for Fire Station 75 at an estimated cost of $1,641,125 with an interest rate of 2.75%. Lease payment will be paid annually beginning September 2016 through 2025. Lease payments are funded through the City’s Equipment Replacement Internal Service Fund.
69 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 7 – LONG-TERM LIABILITIES, continued
Financed Obligations:
Original Debt Outstanding
Amount June 30, 2025
$ 323,010 $ 72,694 Lease agreement between the City and Holman Capital Corporation for the purchase of a TV van with inspection system for the Utilities Department at an estimated cost of $323,010 with an interest rate of 3.09%. Lease payment will be paid annually beginning April 2018 through 2027. Lease payments are funded through the City’s Equipment Replacement Internal Service Fund.
$ 433,404 $ 143,580 Lease agreement between the City and Holman Capital Corporation for the purchase of Utility Vehicles with all accessories, attachments, and substitutions for the Utilities Department at an estimated cost of $433,404 with an interest rate of 2.97%. Lease payment will be paid annually beginning September 2018 through 2027. Lease payments are funded through the City’s Equipment Replacement Internal Service Fund.
$ 38,193 $ 0 Lease agreement between the City and Ford Motor Credit Company for the purchase of a Ford Explorer with all equipment for the Police Department at an estimated cost of $38,193 with an interest rate of 5.49%. Lease payments were paid monthly beginning October 2020 through September 2024.
$ 515,273 $ 257,329 Lease agreement between the City and Motorola Solutions Credit Company for the purchase of 65 portable radios for the Fire Department at an estimated cost of $515,273 with an interest rate of 5.64%. Lease payments will be paid annually beginning October 2024 through October 2026.
$ 19,558,635 $20,519,453 Lease agreement between the City and Banc of America Public Corp for the purchase of solar photovoltaic and emergency power generating equipment at an estimated cost of $19,558,635 with an interest rate of 4.45%. Interest accrued between November 2024 and May 2026 will be added to the original principal balance. Lease payments will be paid semi-annually beginning November 2026 through May 2044.
$ 2,960,000 $2,960,000 Lease agreement between the City and Webster Bank National Association for the purchase of 13 fleet vehicles for the Fire Department, including two fire engines, with an estimated cost of $2,960,000 and an interest rate of 4.29%.
Interest payments begin in June 2025, capitalized from an escrow fund. Semi- annual principal and interest payments begin in June 2026 through June 2040.
$ 26,349,190 Total financed obligations
The annual requirement to amortize debt outstanding as of June 30, 2025 for financed obligations is as follows:
Year Ending June 30, 2025 Principal Interest Total
2026 1,499,124$ 675,000$ 2,174,124$
2027 1,266,172 1,085,179 2,351,351
2028 819,524 1,041,734 1,861,258
2029 876,250 1,007,877 1,884,127
2030 822,486 973,055 1,795,541
Thereafter 21,065,634 8,098,377 29,164,011 26,349,190$ 12,881,222$ 39,230,412$
70 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 7 – LONG-TERM LIABILITIES, continued
B. Business-Type Long-Term Debt
Activity
The following is a summary of changes in the business-type long-term liabilities at June 30, 2025:
State Water Resources Control Board Loan for the Easterly Wastewater Treatment Plant Tertiary Project – Original Issue $119,858,236
This loan is a State Revolving Loan Fund Program contract between the State Water Quality Control Board and the City with a maximum loan amount of $119,858,236 to fund the Easterly Wastewater Treatment Plant Tertiary Project. The project consists of four construction phases. There are four separate financial agreements for each phase as follows:
Phase 1 – Denitrification Improvements; financial agreement executed on August 23, 2011 for $32,162,246
Phase 2 – Laboratory Expansion Improvements; financial agreement executed on October 12, 2011 for $4,781,000
Phase 3 – Filtration Improvements; financial agreement executed on October 21, 2011 for $68,834,990 Phase 4 – Completion Improvements; financial agreement executed on October 12, 2011 for $14,080,000
The term of the loan is 20 years with an interest rate of 2.6%. Annual payments began following the agreed upon completion date for each individual phase. The City had a contract with C. Overaa & Company for $22,630,000 to construct the Denitrification Improvements, Phase 1 of the SRF loan. The Denitrification Improvements are required by the Central Valley Regional Water Quality Control Board of the City’s National Pollutant Discharge Elimination System Discharge Permit for the Easterly Wastewater Treatment Plant, and by the Time Scheduled Order issued by the same board. Phase 1 of the project was completed in fiscal year 2013-14 and Phase 3 was completed in fiscal year 2015-16. The Phase 2 lab expansion was completed by Landmark Construction during fiscal year 2016-
17. The final phase of the project was completed in October 2019.
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
State Revolving Loans Payable:
Tertiary Project 66,067,405$ - $ 5,387,861$ 60,679,544$ 5,527,945$ Plant Expansion 4,677,055 - - 4,677,055 4,677,055 Total Easterly Wastewater Treatment Plant 70,744,460 - 5,387,861 65,356,599 10,205,000 Financed Obligations:
PNC, LLC 1,810,053 - 692,421 1,117,632 735,764 Total Financed Obligations 1,810,053 - 692,421 1,117,632 735,764 Total 72,554,513$ - $ 6,080,282$ 66,474,231$ 10,940,764$ 71 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 7 – LONG-TERM LIABILITIES, continued
The City has drawn the following amounts through June 30, 2025 for each phase:
The estimated annual debt service requirement on this note is as follows:
Principal payments totaling $5,387,861 were made during fiscal year 2025 for Phases 1 through 3 of the project.
The outstanding principal balance for Phase 4, was paid off completely during the 2017-2018 fiscal year.
State Water Resources Control Board Loan for the Easterly Wastewater Treatment Plant Expansion– Original Issue $67,786,401
This loan is a State Revolving Loan Fund Program contract between the State Water Resources Control Board and the City with a maximum loan amount of $67,786,401 to fund the Easterly Wastewater Treatment Plant Expansion.
The loan repayment amounts are due in installments of $4,803,335 beginning in 2006. Principal and interest at
2.7% are paid annually each July through 2025.
The estimated annual debt service requirement on this note is as follows:
Available Loan Amount Drawn
Phase 1 - Denitrification 32,162,246$ (32,162,246)$ Phase 2 - Lab Expansion 4,781,000 (4,781,000) Phase 3 - Filtration Improvements 68,834,990 (68,834,990) Phase 4 - Completion 10,898,764 (306,023)
116,677,000$ (106,084,259)$
Construction Period Interest added to Loan (3,983,511)$ Less: Cumulative Repayments 49,388,226
Amount Due (60,679,544)$
Year Ending
Yea
r Ending June 30 Principal Interest Total
2026 5,527,945 1,577,668 7,105,613
2027 5,671,671 1,433,942 7,105,613
2028 5,819,135 1,286,478 7,105,613
2029-2033 31,445,363 4,082,704 35,528,067 2034-2037 12,215,430 482,537 12,697,967 Total 60,679,544$ 8,863,329$ 69,542,873$
Proprietary Fund
Year Ending
Yea
r Ending June 30 Principal Interest Total
2026 4,677,055 126,280 4,803,335
Total 4,677,055$ 126,280$ 4,803,335$ Proprietary Fund
72 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 7 – LONG-TERM LIABILITIES, continued
Financed Obligations:
Original Debt Outstanding
Amount June 30, 2025
$ 6,993,972 $ 1,117,632 Finance agreement between the City and PNC, LLC for facility improvement projects in progress throughout the City at an estimated cost of $6,993,972 with an interest rate of 3.10%. Lease payment will be paid semi-annually beginning February 2014 through August 2026. Lease payments are funded through the City’s Water Fund.
$ 1,117,632 Total financed obligations
The annual requirement to amortize debt outstanding as of June 30, 2025, for financed obligations is as follows:
C. Compensated Absences
Compensated absences are due to employees for earned but unused leave balances, including vacation, sick, and compensated time off. Compensated absences are generally liquidated by the City’s General Fund, Internal Service Funds and Enterprise Funds in each fiscal year. The following is a summary of the compensated absences liability at the fiscal year ended June 30, 2025:
D. Debt Without City Commitment
Special Assessment Debt
Payment of this debt is secured by valid assessment liens upon certain land within each district and, as such, is not a direct liability of the City. Reserves have been established from the bond proceeds to meet delinquencies should they occur. Neither the faith and credit nor taxing power of the City of Vacaville is pledged to the payment of the bonds; therefore, they are not included in the financial statements. If delinquencies occur beyond the amounts held in those reserves, the City has no duty to pay those delinquencies out of any other available funds. The City acts solely as an agent for those paying assessments and the bondholders.
Year Ending June 30 Principal Interest Total
2026 735,764 28,136 763,900
2027 381,868 5,728 387,596
Total 1,117,632$ 33,864$ 1,151,496$ Beginning Ending Due Within
Balance Net Changes Balance One Year
Governmental Activities 15,799,700$ (518,626)$ 15,281,074$ 14,110,894$ Business Activities 2,312,240 (122,447) 2,189,793 2,060,325 Total 18,111,940$ (641,073)$ 17,470,867$ 16,171,219$ 73 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 7 – LONG-TERM LIABILITIES, continued
The amount of bonds outstanding at June 30, 2025 is as follows:
Conduit Debt
The City has issued multifamily housing revenue bonds to provide funds for the refinancing and rehabilitation of rental housing developments by private developers. The proceeds were used for the following multifamily rental housing projects: The Willows, Orchards/Maples, Quail Run, and The Sycamores Apartments. The bonds are payable solely from loan repayments made by the borrower directly to the bond trustee. Neither the faith and credit nor the taxing power of the City is pledged to the payment of the principal or interest on the bonds.
The amount of bonds outstanding at June 30, 2025 is as follows:
E. Private Purpose Trust Fund - Successor Agency Activity
The following is a summary of changes in long-term liabilities for Private Purpose Trust Fund Successor Agency (Agency) activities. Activity for the Successor Agency’s fiscal year ended June 30, 2025:
Description Original Bond Amount June 30, 2025
2020-Nut Tree Assessment Dist 4,308,445 3,361,719$ Total 1915 Act Limited Obligation Bonds 3,361,719$
Description Original Bond Amount June 30, 2025
Multifamily Revenue Bonds 1999A 9,600,000$ 9,600,000$ Total Conduit Debt 9,600,000$
Beginning Ending Due within
Balance Additions Reductions Balance one year
Bonds Payable:
2014 Subordinate Tax Allocation Refunding Bonds 11,970,000 - 1,325,000 10,645,000 1,390,000 2014 Subordinate Tax Allocation Refunding Bonds Premium 1,170,663 - 146,333 1,024,330 - 2016 Subordinate Tax Allocation Refunding Bonds Series A 1,480,000 - - 1,480,000 - 2016 Subordinate Tax Allocation Refunding Bonds Series A-T 8,420,000 - 1,075,000 7,345,000 1,110,000 Total Bonds 23,040,663 - 2,546,333 20,494,330 2,500,000 Total Long-Term Debt 23,040,663$ -$ 2,546,333$ 20,494,330$ 2,500,000$ 74 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 7 – LONG-TERM LIABILITIES, continued
The following is a description of long-term debt issues, along with the amount of original debt issuance:
Bonds Payable:
There are three bonds payable secured by property tax increments: 2014 Subordinate Tax Allocation Refunding, 2016 Subordinate Tax Allocation Refunding A and 2016 Subordinate Tax Allocation Refunding A-T Bonds. Due to the dissolution of the Redevelopment Agency, these bonds have been transferred to the Successor Agency and Redevelopment Property Tax Trust Funds were received during the fiscal year to fund these enforceable obligations.
Original Debt Outstanding
Amount June 30, 2025
$ 28,090,000 $ 11,669,330 Subordinate Tax Allocation Refunding Bonds issued by the Successor Agency to the Redevelopment Agency of the City of Vacaville to prepay 1996, 2000 and 2001 Tax Allocation Bonds outstanding loans payable from tax increment revenue generated in the Vacaville Community Redevelopment Project Area in the I-505/80 Project Area. Interest rates range from 2.0% to 5.0% and the bonds mature in March 2032. Payments of principal and interest are funded by property tax revenues distributed to the former Redevelopment Property Tax Trust Fund (RPTTF).
$ 1,480,000 $ 1,480,000 Subordinate Tax Allocation Series A Refunding Bonds issued by the Successor Agency to advance refund $1.7 million of outstanding 2006 ABAG Tax Allocation Bonds. Interest rates for the newly issued bonds range from 2.75% to 2.875% and the bonds mature in September 2032. Payments of principal and interest are funded by property tax revenues distributed to the former Redevelopment Property Tax Trust Fund (RPTTF).
$15,285,000 $ 7,345,000 Subordinate Tax Allocation Series A-T Refunding Bonds issued by the Successor Agency to advance refund $15.4 million of 2006 Taxable Housing Bonds. Interest rates range from 1.1% to 3.4% and the bonds mature in September 2031. Payments of principal and interest are funded by property tax revenues distributed to the former Redevelopment Property Tax Trust Fund (RPTTF).
$ 20,494,330 Total bonds payable
Paid During Fiscal Year
Estimated Remaining to be
Paid
2014 Subordinate Tax Allocation Refunding 1,845,369 12,275,087 2016 Subordinate Tax Allocation Refunding A 42,188 1,788,433 2016 Subordinate Tax Allocation Refunding A-T 1,328,503 8,185,189 3,216,060$ 22,248,709$
Principal and Interest
75 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 7 – LONG-TERM LIABILITIES, continued
The annual requirement to amortize debt outstanding as of June 30, 2025 for bonds payable is as follows:
There are a number of limitations and restrictions contained in the various bond indentures. The Successor Agency believes it is in compliance with the significant limitations and restrictions.
Year Ending June 30, 2025 Principal Interest Total
2026 2,500,000 717,789 3,217,789 2027 2,595,000 613,913 3,208,913 2028 2,555,000 504,813 3,059,813 2029-2032 10,630,000 925,088 11,555,088 2033 1,190,000 17,106 1,207,106 Subtotal 19,470,000 2,778,709$ 22,248,709$ Unamortized premium 1,024,330
Total 20,494,330$
76 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 8 – EMPLOYEE RETIREMENT PLANS
Pension related balances presented on the Statement of Net Position as of June 30, 2025 by individual plan are described in the following table:
Deferred Outflows and Inflows by individual plan are described below:
Deferred Deferred Net Pension Pension
Outflows Inflows Liability Expense
CALPERS Miscellaneous 22,854,106$ 66,842$ 98,226,249$ 16,454,216$ CALPERS Safety 38,574,614 264,462 138,667,832 22,976,919 PARS Miscellaneous 4,916,571 - 40,022,461 4,088,667 PARS Safety 64,260 - 1,382,436 119,312 66,409,551$ 331,304$ 278,298,978$ 43,639,114$ Deferred Deferred
Outflows Inflows
CalPERS Miscellaneous
Changes of Assumptions 1,568,471$ -$
Differences between Expected and Actual Experiences 5,902,078 66,842 Difference between Projected and Actual Earnings on
Pension Plan Investments 3,102,041 -
Current Year Contributions 12,281,516 -
Total CalPERS Miscellaneous 22,854,106 66,842
CalPERS Safety
Changes of Assumptions 4,769,379 -
Differences between Expected and Actual Experiences 11,049,353 264,462 Difference between Projected and Actual Earnings on
Pension Plan Investments 3,804,328 -
Current Year Contributions 18,951,554 -
Total CalPERS Safety 38,574,614 264,462
PARS Miscellaneous
Changes of Assumptions - -
Differences between Expected and Actual Experiences 585,198 - Difference between Projected and Actual Earnings on
Pension Plan Investments 1,593 -
Current Year Contributions 4,329,780 -
Total PARS Miscellaneous 4,916,571 -
PARS Safety
Changes of Assumptions - -
Differences between Expected and Actual Experiences - - Difference between Projected and Actual Earnings on
Pension Plan Investments (5,863) -
Current Year Contributions 70,123
-
Total PARS Safety 64,260 -
Total 66,409,551$ 331,304$
77 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 8 – EMPLOYEE RETIREMENT PLANS, continued
CALPERS PLAN
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Local Government’s separate Safety (police and fire) and Miscellaneous (all other) Plans, agent multiple-employer defined benefit pension plans 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 Plans are established by State statute and Local Government 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 1959 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The Plan’s provisions and benefits in effect as of the measurement date, are summarized as follows:
On January 1, 2013, the Public Employee Pension Reform Act (PEPRA) went into effect. This State law applies to employees hired after January 1, 2013, who are new to PERS. These employees are termed PEPRA members and employees that were enrolled in PERS (without significant separation) prior to January 1, 2013, are now referred to as classic members. PEPRA miscellaneous members will be enrolled in a 2% at 62 plan and PEPRA safety members will be enrolled in a 2.7% at 57 plan. PEPRA members will be required to pay half the normal cost of their plans.
Employees Covered
As of the measurement date, the following employees were covered by the benefit terms for each Plan:
Safety Miscellaneous
Benefit vesting schedule 5 years of service 5 years of service Benefit payment monthly for life monthly for life
Earliest retirement age 50 50
Benefit factor for each year of service, as a % of salary 3% at age 50 2% at age 50 Required employee contribution rates 10.37% 10.06%
Required employer contribution rates 62.90% 31.99%
Safety Miscellaneous
Inactive employees or beneficiaries currently receiving benefits 239 542 Inactive employees entitled to but not yet received benefits 87 278 Active employees 190 366
Total 517 1,186
78 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 8 – EMPLOYEE RETIREMENT PLANS, continued
Contributions
Section 20814(C) of the California Public Employees’ Retirement Law (PERL) 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. 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 estimated amount to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer 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.
Net Pension Liability
The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans 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.
Actuarial Assumptions
The total pension liabilities as of June 30, 2025 were determined using the following assumptions:
Safety Miscellaneous
Valuation Date June 30, 2023 June 30, 2023
Measurement Date June 30, 2024 June 30, 2024
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Salary Increases
Investment Rate of Return 6.80% 6.80%
Mortality (1)
(1) The mortality table used was developed based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.
Entry-Age Actuarial Cost Method
Varies by Entry Age and Service
Derived using CalPERS' Membership Data
for all Funds
79 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 8 – EMPLOYEE RETIREMENT PLANS, continued
Discount Rate
The discount rate used to measure the total pension liability was 6.80% for each plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate.
Based on the testing of the plans, the tests revealed the assets would not run out. Therefore, the current 6.80 percent discount rate is appropriate, and the use of the municipal bond rate calculation is not deemed necessary.
The long-term expected discount rate of 6.80 percent is applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section.
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 as well as the expected pension fund (Public Employees’ Retirement Fund) cash flows.
Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.
The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.
Assumed Asset
Asset Class (1) Allocation Real Return (1),(2)
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the CalPERS 2021 Asset Liability Managerment study 80 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 8 – EMPLOYEE RETIREMENT PLANS, continued
Subsequent Events
During the time period between the valuation date and the publication of the related report, price inflation has been higher than the assumed rate of 2.3% per annum. Since inflation influences cost of living adjustments for retirees and beneficiaries and active member pay increases, higher inflation is likely to put at lease some upward pressure on the pension expense and the net pension liability in future valuations. The actual impact of higher inflation on future valuation results will depend on, among other factors, how long higher inflation persists.
Changes in the Net Pension Liability
The changes in the Net Pension Liability for each Plan follow:
Safety Plan Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2023 (Measurement Date) 427,703,995$ 285,557,778$ 142,146,217$ Changes in the year:
Service Cost 8,908,035 - 8,908,035 Interest on Total Pension Liability 29,721,641 - 29,721,641 Differences between Expected and Actual Experience 9,246,428 - 9,246,428 Changes of Assumptions - - - Plan to Plan Resource Movement - 121 (121) Contribution - Employer - 19,683,625 (19,683,625) Contribution - Employee - 3,939,376 (3,939,376) Investment Income - 27,963,726 (27,963,726) Changes of Benefit Terms - - - Administrative Expenses - (232,359) 232,359 Benefit Payments, including Refunds of Employee Contributions (21,312,065) (21,312,065) - Net Changes 26,564,039 30,042,424 (3,478,385) Balances at June 30, 2024 (Measurement Date) 454,268,034$ 315,600,202$ 138,667,832$ Increase (Decrease)
81 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 8 – EMPLOYEE RETIREMENT PLANS, continued
Changes in the Net Pension Liability
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each 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:
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
Miscellaneous Plan Total Pension Plan Fiduciary Net Pension Liability Net Position Liability/(Asset)
Balance at June 30, 2023 (Measurement Date) 316,548,778$ 215,749,400$ 100,799,378$ Changes in the year:
Service Cost 6,352,567 - 6,352,567 Interest on Total Pension Liability 21,843,185 - 21,843,185 Differences between Expected and Actual Experience 5,472,860 - 5,472,860 Changes of Assumptions - - - Plan to Plan Resource Movement - (121) 121 Contribution - Employer - 12,575,011 (12,575,011) Contribution - Employee - 3,023,670 (3,023,670) Investment Income - 20,818,737 (20,818,737) Changes of Benefit Terms - - - Administrative Expenses - (175,556) 175,556 Benefit Payments, including Refunds of Employee Contributions (17,260,045) (17,260,045) - Net changes 16,408,567 18,981,696 (2,573,129) Balances at June 30, 2024 (Measurement Date) 332,957,345$ 234,731,096$ 98,226,249$ Increase (Decrease)
Safety Miscellaneous
1% Decrease 5.90% 5.90%
Net Pension Liability 202,814,433$ 141,718,358$ Current Discount Rate 6.90% 6.90%
Net Pension Liability 138,667,832$ 98,226,249$
1% Increase 7.90% 7.90%
Net Pension Liability 86,383,994$ 62,231,266$
82 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 8 – EMPLOYEE RETIREMENT PLANS, continued
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2025, the City recognized pension expenses of $22,976,919 for the Safety Plan and $16,454,216 for the Miscellaneous Plan. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
$18,951,554 in Safety and $12,281,516 in Miscellaneous pension contributions reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
SUPPLEMENTAL PARS PLAN
Plan Description
The City of Vacaville entered into an agreement with the Public Agency Retirement System Trust (PARS Trust) and Phase II Systems as the Trust Administrator to contribute to a supplemental agent multiple-employer defined benefit pension plan (Supplemental Plan). The Supplemental Plan provides lifetime supplemental retirement benefits for participants that retire on or after age 50. Death and disability benefits are not covered under the plan. The amount of the supplement is determined based on: length of PERS service; final average compensation; and actuarially determined factors. The cost-of-living adjustment is 2% per year. The Supplemental Plan conforms to the requirements under Internal Revenue Code 401(a) and has received a favorable Letter of Determination from the Internal Revenue Service.
The Supplemental Program is a multiple-employer trust agreement established to provide administrative cost- sharing among public agencies (Member Agencies) and consists of Agency Trusts within the program. Phase II Systems issues a publicly available financial report that includes financial statements and required supplementary information for the program. That report may be obtained by writing to Phase II Systems, 3961 MacArthur Boulevard, Suite 200, Newport Beach, California 92660.
Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows of Resources of Resources of Resources of Resources
Pension contributions subsequent to measurement date 18,951,554$ -$ 12,281,516$ -$ Changes of Assumptions 4,769,379 - 1,568,471 - Differences between Expected and Actual Experiences 11,049,353 (264,462) 5,902,078 (66,842) Differences between Projected and Actual Earnings
on Pension Plan Investments 3,804,328 - 3,102,041$ - Total 38,574,614$ (264,462)$ 22,854,106$ (66,842)$ Safety Miscellaneous
Safety Miscellaneous
Deferred Deferred
Outflows/(Inflows) Outflows/(Inflows)
Fiscal Year Ended June 30: of Resources of Resources
2026 6,802,596$ 4,082,642$
2027 11,854,270 7,663,760
2028 1,133,566 (40,673)
2029 (431,834) (1,199,981)
83 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 8 – EMPLOYEE RETIREMENT PLANS, continued
Benefits Provided
PARS provides service retirement 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. The cost-of-living adjustments for each plan are applied as specified by contract. Death and disability benefits are not covered under the plan.
The Plan’s provisions and benefits in effect as of the measurement date, are summarized as follows:
On January 1, 2013, the Public Employee Pension Reform Act (PEPRA) went into effect. This State law applies to employees hired after January 1, 2013. The City updated the Plan to reflect compliance with PEPRA. The Plan has been amended and is closed to all new hires on or after January 1, 2013.
Employees Covered
At June 30, 2024, the following employees were covered by the benefit terms for each Plan:
Contributions
Section 20814(C) of the California Public Employees’ Retirement Law (PERL) 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. The total plan contributions are determined through PARS’ 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 additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ended June 30, 2024 (the measurement date), the average active employee contribution rate is 2.00 percent of annual pay for the Miscellaneous Plan, and employer contribution rate is 36.93 percent of annual payroll for the Miscellaneous Plan. The Safety Plan does not have any active members, contributions are solely made by the City based on the actuarially determined amount necessary to amortize the unfunded accrued liability.
As of June 30, 2025, the Safety Plan is not prefunded. There are no active employees, therefore there is no contribution rate for employees. The level of employer contributions made are sufficient only to make current benefit payments and expenses.
Safety Miscellaneous
Benefit vesting schedule 5 years of service 5 years of service Benefit payment monthly for life monthly for life
Earliest retirement age 50 50
Benefit factor for each year of service, as a % of salary 1% at age 50 .7% at age 55 Required employee contribution rates N/A 2%
Required employer contribution rates N/A 37.140%
Safety Miscellaneous
Inactive employees or beneficiaries currently receiving benefits 4 315 Inactive employees entitled to but not yet received benefits - 23 Active employees - 95
Total 4 433
84 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 8 – EMPLOYEE RETIREMENT PLANS, continued
Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Miscellaneous Plan is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2024. The Safety Plan is measured as of June 30, 2024, using an annual valuation date as of June 30, 2024. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
Actuarial Assumptions
The total pension liabilities in the June 30, 2024 actuarial valuations were determined using the following assumptions:
Discount Rate
The discount rate used to measure the total pension liability was 6.50% for the Miscellaneous Plan and 6.50% for the Safety Plan. For the Miscellaneous Plan the projection of cash flows used to determine the discount rate assumed that the City contribution will be made at rates equal to the actuarially determined contribution rates.
Based on those assumptions, the pension plan’s fiduciary net position is projected to cover all future pension payments. Therefore, the discount rate was set equal to the long-term expected rate of return. The discount rate is based on the single equivalent rate that results in the same actuarial present value as the long-term expected rate of return applied to benefit payments, to the extent that the plan’s fiduciary net position is projected to be sufficient to make projected benefit payments, and the municipal bond rate applied to benefit payments, to the extent that the plan’s fiduciary net position is not projected to be sufficient.
According to Paragraph 30 of Statement 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. The 6.50% for the Miscellaneous Plan and 6.50% for the Safety Plan investment return assumption used in these accounting valuations is net of administrative expenses.
In determining the long-term expected rate of return, the best-estimate 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.
Safety Miscellaneous
Valuation Date June 30, 2024 June 30, 2024
Measurement Date June 30, 2024 June 30, 2024
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 6.50% 6.50%
Inflation N/A 2.30%
Salary Increases N/A Varies by Entry Age
Investment Rate of Return 6.50% 6.50%
Mortality
Entry Age Normal
Consistent with the Non-Industrial rates
used to value the Miscellaneous
CalPERS Pension Plans.
85 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 8 – EMPLOYEE RETIREMENT PLANS, continued
The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.
Safety Plan
Miscellaneous Plan
Long-Term Long-Term
Target Arithmetic Real Geometric Real
Asset Class Allocation Rate of Return Rate of Return
US Cash 2.00% 0.83% 0.80%
US Bonds 38.00% 6.94% 6.13%
US Equity Market 36.00% 12.19% 8.00%
Foreign Developed Equity 13.50% 6.61% 4.79%
Emerging Markets Equity 4.50% 8.78% 5.73%
US REITs 3.00% 6.71% 4.46%
Infrastructure - Public 3.00% 5.68% 4.18%
Total 100%
Assumed Inflation - Mean 2.28% 2.28%
Assumed Inflation - Standard Deviation 1.47% 1.47%
Portfolio Real Mean Return 4.78% 4.02%
Portfolio Nominal Mean Return 7.06% 6.43%
Portfolio Standard Deviation 11.91%
Long-Term Long-Term
Target Arithmetic Real Geometric Real
Asset Class Allocation Rate of Return Rate of Return
US Cash 2.00% 0.83% 0.80%
US Bonds 38.00% 6.94% 6.13%
US Equity Market 36.00% 12.19% 8.00%
Foreign Developed Equity 13.50% 6.61% 4.79%
Emerging Markets Equity 4.50% 8.78% 5.73%
US REITs 3.00% 6.71% 4.46%
Infrastructure - Public 3.00% 5.68% 4.18%
Total 100%
Assumed Inflation 2.28% 2.28%
Assumed Inflation - Standard Deviation 1.47% 1.47%
Portfolio Real Mean Return 4.78% 4.02%
Portfolio Nominal Mean Return 7.06% 6.40%
Portfolio Standard Deviation 11.91%
86 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 8 – EMPLOYEE RETIREMENT PLANS, continued
Changes in the Net Pension Liability
The changes in the Net Pension Liability for the Plan follow:
Safety Plan Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2023 (Measurement Date) 2,378,464$ 718,796$ 1,659,668$ Changes in the year:
Service Cost - - -
Interest on Total Pension Liability 149,256 - 149,256 Differences between Expected and Actual Experience 13,184 - 13,184 Changes of Assumptions - - - Contribution - Employer - 356,681 (356,681) Contribution - Employee - - - Investment Income - 98,067 (98,067) Expected Net Investment Income - - - Administrative Expenses (15,076) 15,076
Benefit Payments, including Refunds of Employee Contributions (167,058) (167,058) - Net changes (4,618) 272,614 (277,232) Balances at June 30, 2024 (Measurement Date) 2,373,846$ 991,410$ 1,382,436$ Increase (Decrease)
Miscellaneous Plan Total Pension Plan Fiduciary Net Pension Liability Net Position Liability/(Asset)
Balance at June 30, 2023 (Measurement Date) 68,241,839$ 26,326,537$ 41,915,302$ Changes in the year:
Service Cost 466,826 - 466,826 Interest on Total Pension Liability 4,331,436 - 4,331,436 Changes of Assumptions - - - Effect of Economic/Demographic Gains or Losses 618,180 - 618,180 Contribution - Employer - 4,028,181 (4,028,181) Contribution - Employee - 235,439 (235,439) Investment Income - 3,187,143 (3,187,143) Administrative Expenses - (141,480) 141,480 Benefit Payments, including Refunds of Employee Contributions (4,208,659) (4,208,659) - Net changes 1,207,783 3,100,624 (1,892,841) Balances at June 30, 2024 (Measurement Date) 69,449,622$ 29,427,161$ 40,022,461$ Increase (Decrease)
87 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 8 – EMPLOYEE RETIREMENT PLANS, continued
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City for the Plan, calculated using the discount rate for the 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:
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued PARS financial report.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2025, the City recognized pension expense of $4,207,979. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Miscellaneous Plan reported $4,329,780 and the Safety Plan reported $70,123 as deferred outflows of resources related to contributions subsequent to the measurement date which will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Safety Miscellaneous
1% Decrease 5.50% 5.50%
Net Pension Liability 1,629,663$ 47,791,063$
Current Discount Rate 6.50% 6.50%
Net Pension Liability 1,382,436$ 40,022,461$
1% Increase 7.50% 7.50%
Net Pension Liability 1,171,848$ 33,451,849$
Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows of Resources of Resources of Resources of Resources
Pension contributions subsequent to measurement date 70,123$ -$ 4,329,780$ -$ Changes of Assumptions - - - - Differences between Expected and Actual Experiences - - 585,198 - Net differences between projected and actual earnings
on plan investments (5,863) - 1,593 - Total 64,260$ -$ 4,916,571$ -$ MiscellaneousSafety
Deferred Deferred
Measurement Period Outflows/(Inflows) Measurement Period Outflows/(Inflows) Ended June 30: of Resources Ended June 30: of Resources 2025 (2,264)$ 2025 471,182$
2026 12,832 2026 719,732
2027 (8,446) 2027 (334,982)
2028 (7,985) 2028 (269,141)
Safety Miscellaneous
88 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS
Plan Description
The City provides post-employment healthcare benefits under an agent multiple-employer defined healthcare plan administered by CalPERS. The plan provides medical insurance benefits to eligible retirees and their eligible dependents. During fiscal year 2018, the City implemented the provisions of GASB Statement No. 75 – Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. This statement establishes uniform financial reporting standards for employers providing OPEB. Required disclosures are presented in this footnote.
The City established an irrevocable trust with California Employer’s Retiree Benefit Trust Program (CERBT) to prefund retiree health benefits in 2009. The CERBT is administered by CalPERS and is managed by an appointed board not under the control of the City Council. This trust is not considered a component unit of the City and has been excluded from the financial statements. Separately issued financial statements for CERBT may be obtained from CalPERS as 400 Q Street Sacramento, CA 95811.
Benefits Provided
The City contributes a monthly amount to PERS for each retiree, determined by the retiree's employment classification when employed by the City. If the retiree selects health coverage through PERS that has a higher premium than the City's contribution, the balance is deducted from the retiree's monthly PERS pension benefit.
Employees Hired Prior to January 1, 2009
Employees hired prior to January 2009 must attain age 50 with five years of PERS service and be eligible to retire through PERS. The City pays a percentage of the retired employees’ and dependents’ monthly medical premium, up to a fixed amount (single, two-party, or family), in accordance with employee collective bargaining agreements.
Currently, this percentage is 85% of the Kaiser non-Medicare rate. Alternatively, an employee can elect to be covered by the eligibility conditions for employees hired on or after January 1, 2009.
Employees Hired on or After January 1, 2009 but Before December 1, 2018
Employees in this tier must attain age 50 with ten years of PERS service (and five years of City service) and be eligible to retire through PERS. The City provides a percentage of a maximum contribution amount. This percentage is 50% for 10 years of service increasing to 100% for 20 or more years of service. The City contribution will never exceed the actual premium. This vesting schedule is based on California Government Code 22893 and the maximum contribution amount is approved by the CalPERS Board.
Miscellaneous Employees Hired on or After December 1, 2018
The City provides the minimum monthly employer contribution as required by CalPERS under the Public Employees’ Medical and Hospital Care Act (PEMHCA). For calendar year 2024, the amount is $151 per month. (For calendar year 2023, the amount was $151 per month.) In addition, the City provides an additional monthly contribution based on years of service at retirement, as described in the table below.
Years of Service Monthly City Contribution
Less than 10 $0
10 to 15 $100
15 to 20 $150
20 or more $200
89 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS, continued
Safety Employees Hired on or After January 1, 2020
The City provides the minimum monthly employer contribution as required by CalPERS under the Public Employees’ Medical and Hospital Care Act (PEMHCA). For calendar year 2024, the amount is $157 per month. (For calendar year 2023, the amount was $151 per month.) In addition, the City provides an additional monthly contribution based on years of service at retirement, as described in the table below.
Employees Covered
At June 30, 20234, the following employees were covered by the benefit terms:
Contributions
The Actuarially Determined Contribution is an amount, if paid on an ongoing basis, projected to cover normal costs each year and amortize any unfunded actuarial liabilities over the amortization period. During the measurement period, the City’s contributions totaled $10,525,824. $1,389,932 of this amount was contributed directly to the CERBT trust with the remaining amount being comprised of medical premium payments made by the City on behalf of retirees (not reimbursed by the trust) and implied subsidy payments.
In November 2015, the City adopted an OPEB funding policy to fund an increasing percentage of the annual contribution each fiscal year starting 2016 and reaching 100% contribution funding in fiscal year 2020. The City has been funding 100% of the Actuarially Determined Contribution since the fiscal year ending 2018.
Years of Service Monthly City Contribution
Less than 10 $0
10 to 15 $100
15 to 20 $150
20 or more $200
Inactive employees or beneficiaries currently receiving benefits 856 Active employees 592
Total 1,448
90 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS, continued
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 dated June 30, 2024 based on the following actuarial methods and assumptions:
Discount Rate
The discount rate used to measure the total OPEB liability was 6.25%. The long-term expected return on plan investments may be used to discount liabilities to the extent that the plan’s Fiduciary Net Position is projected to cover benefit payments and administrative expenses. Determining the discount rate requires the actuary perform complex projections (depletion date projections) of future benefit payments and asset values. Based on the actuary’s depletion date projections, the City’s assets are always projected to be sufficient to cover benefit payments and administrative expenses.
The table below reflects long-term expected real rate of return by asset class. The best-estimate 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 Milliman’s investment consulting practice as of June 30, 2024.
Valuation Date June 30, 2024
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 6.25%
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Investment Rate of Return 6.25%
Mortality (1) Derived using CalPERS' Membership
Data for all Funds
(1) The mortality table used w as developed based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP -2020 published by the Society of Actuaries. 91 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 9 – OTHER POST-EMPLOYMENT HEALTH BENEFITS, continued
Changes in the Net OPEB Liability
The changes in the Net OPEB liability are as follows:
Long-Term Long-Term
Target Arithmetic Real Geometric Real
Asset Class Allocation Rate of Return Rate of Return
US Long Treasury Bonds 9.20% 2.96% 2.10%
US Long Credit Bonds 7.36% 3.57% 3.02%
US Securitized Securities 6.44% 3.07% 2.93%
US Inflation-Indexed Bonds 5.00% 2.00% 1.83%
Global Equity 49.00% 6.18% 4.53%
Global REITs 20.00% 6.88% 4.84%
Commodities 3.00% 3.30% 1.78%
Total 100.00%
Assumed Inflation 2.31% 2.30%
Assumed Inflation - Standard Deviation 1.45% 1.45%
Portfolio Real Mean Return 5.34% 4.48%
Portfolio Nominal Mean Return 7.64% 6.89%
Portfolio Standard Deviation 12.73%
Total OPEB Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2023 (Measurement Period) 134,408,388$ 60,015,021$ 74,393,367$ Changes in the year:
Service Cost 3,250,479 - 3,250,479 Interest on Total OPEB Liability 8,356,673 - 8,356,673 Effect of Economic/Demographic Gains or Losses 17,995,515 - 17,995,515 Effect of Changes of Assumptions 1,186,008 - 1,186,008 Plan to Plan Resource Movement - - - Contribution - Employer - 10,525,824 (10,525,824) Contribution - Employee - - - Investment Income - 6,747,414 (6,747,414) Administrative Expenses - (31,069) 31,069 Benefit Payments, including Refunds of Employee Contributions (8,025,824) (8,025,824) - Net changes 22,762,851 9,216,345 13,546,506
Balances at June 30, 2024 (Measurement Period) 157,171,239$ 69,231,366$ 87,939,873$ Increase (Decrease)
92 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 9 – OTHER POST-EMPLOYMENT HEALTH BENEFITS, continued
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following table presents the Net OPEB liability if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate for the measurement period ended June 30, 2024.
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the City’s Net OPEB liability calculated using the current healthcare cost trend rates, as well as what the City’s Net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point higher or one percentage point lower than the current rates.
OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2025, the City recognized OPEB expenses of $10,697,994. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Net OPEB Liabilty
1% Decrease 5.25%
Net OPEB Liability 106,868,126$
Current Discount Rate 6.25%
Net OPEB Liability 87,939,872$
1% Increase 7.25%
Net OPEB Liability 72,146,379$
Net OPEB Liabilty
1% Decrease
Net OPEB Liability 692,019$
Current Healthcare Trend Rate
Net OPEB Liability 87,939,872$
1% Increase
Net OPEB Liability 8,861,228$
Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB contributions subsequent to measurement date 11,816,916$ -$ Changes of Assumptions 8,744,443 (7,597,107) Differences between Expected and Actual Experiences 21,078,924 (226,704) Net differences between projected and actual earnings
on plan investments 714,014 -
Total 42,354,297$ (7,823,811)$
93 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 9 – OTHER POST-EMPLOYMENT HEALTH BENEFITS, continued
Contributions made subsequent to the measurement date will be recognized as a reduction of the Net OPEB liability in fiscal year 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:
NOTE 10 – FUND EQUITY
Deficit Fund Balances
The following fund had a deficit as of June 30, 2025:
Maintenance Districts Fund
The Maintenance Districts Fund had a deficit of ($10,399) at June 30, 2025. Future revenues for these landscaping and lighting districts and larger contributions from the General Fund are expected to eliminate this deficit.
Special Programs Fund
The Special Programs Fund had a deficit of ($2,391,366) at June 30, 2025. Revenues were not received within the 90-day availability period. Revenue will be recognized in fiscal year 2026.
Energy Efficiency Siemens Fund
The Energy Efficiency Debt Service Fund had a deficit of ($117,675) at June 30, 2025. The City entered into a contract with Siemens to perform facility improvements throughout the City. The improvements will produce energy savings for the City which in turn will be used to pay the debt service commitment. The operational departments will contribute to the debt service fund from their energy savings.
Deficit Net Position
Central Services Fund
The Central Services Internal Service fund has a deficit of ($9,019,756) at June 30, 2025. The deficit is due to the implementation of GASB Statement No. 68 – reporting of the long-term obligation for pension benefits and GASB Statement No. 75 – reporting for postemployment benefits other than pensions as a liability.
Insurance Fund
The Insurance Internal Service fund has a deficit of ($3,515,704) at June 30, 2025. The deficit is primarily due to the implementation of GASB Statement No. 68 – reporting of the long-term obligation for pension benefits and GASB Statement No. 75 – reporting for postemployment benefits other than pensions as a liability.
Deferred
Measurement Period Outflows/(Inflows)
Ended June 30: of Resources
2025 2,642,071$
2026 4,590,667
2027 2,132,938
2028 4,293,395
2029 4,132,929
Thereafter 4,921,570
22,713,570$
94 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 11 – INTERFUND TRANSACTIONS
Transfers report the nonreciprocal contribution of resources from one fund to another. The interfund transfers generally are made for the purpose of debt service payments made from a debt service fund but funded from an operating fund or subsidiary transfers, funding for capital projects and re-allocation of special revenues.
The following schedule briefly summarizes the City’s transfer activity for the fiscal year ended June 30, 2025:
The major fund transfer activity includes the following: 1) Community Facility Districts transferred $8.1 million in special tax to the General Fund to cover public safety costs to maintain the districts 2) ENGIE Energy Conservation Fund transferred $8.1 million to the Capital Projects Fund for the installation of solar photovoltaic and emergency power generating equipment and 3) Sewer Utility transferred over $6.3 million to the Capital Projects fund for the construction of a parkway.
Due To/Due From Other Funds:
Capital Projects
Fund
Other
Transfers Out General Special City Governmental Sewer Water Central Vehicle (fund making transfer): Fund Programs Projects Funds Utility Utility Services Replacement Insurance Totals General Fund - $ 471,130$ 11,228,725$ 4,302,068$ - $ - $ 50,000 $ 2,525,594$ 231,340$ 18,808,857$ Special Revenue Funds:
Successor Housing - - 43 - - - - - - 43 Special Programs - - 524,373 32,625 1,137,639 - - 1,694,637 Capital Projects Funds:
City Projects - - - - 253,260 - 5,000 - - 258,260 Other Governmental Funds: 8,509,415 - 8,548,825 312,321 - - - - - 17,370,561 Enterprise Funds:
Sewer Utility 30,200 - 6,410,997 13,875 - 15,914 15,000 8,837 - 6,494,823 Water Utility - - - - - - - 3,411 - 3,411 Internal Service Funds:
Central Services - - - 4,993 - - - - - 4,993 Technology Replacement - - - - - - 2,075 - 2,075 Totals 8,539,615$ 471,130$ 26,712,963$ 4,665,882$ 1,390,899$ 15,914$ 70,000 $ 2,539,917$ 231,340$ 44,637,660$ Enterprise Funds Internal Service Fund
Special
Revenue
Due From Other Funds
(fund making loan):
Internal Service
Fund
Other
Governmental
Funds Total
General Fund -$ 10,873,210$ 10,873,210$ -$ 10,873,210$ 10,873,210$ Due to Other Funds
(fund receiving loan):
95 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 11 – INTERFUND TRANSACTIONS, continued
Advances To/Advances From Other Funds:
The advances to/from consists of the following: The Water and Sewer Utility Enterprise loans to the City Projects Capital Projects fund were for the construction of a fire station with the remaining amount owed being $529,428.
The $100,000 loan between the Sewer and Water Utility funds was related to the expansion of the Easterly plant.
The $849,302 loan between the General Fund and the Vehicle Replacement Fund was for the purchase of two vehicles.
NOTE 12 – UNEARNED REVENUE
Unearned revenues in the government-wide financial statements as of June 30, 2025, were as follows:
Vehicle City Projects
Advances To Other Funds Replacement Capital
(fund making loan): Fund Projects Fund Water Utility Total General Fund:
General Fund 849,302$ -$ -$ 849,302$ Total General Fund 849,302 - - 849,302 Enterprise Funds:
Sewer Utility - 176,476 100,000 276,476 Water Utility - 352,952 - 352,952 Total Enterprise - 529,428 100,000 629,428 Total 849,302$ 529,428$ 100,000$ 1,478,730$ Governmental Business-Type Fiduciary
Activities Activities Total Funds
General services and recreation revenue 1,420,136$ -$ 1,420,136$ -$ Community Facilities District 559,334 - 559,334 - Grant proceeds received in advance 8,219,295 - 8,219,295 4,904,487 Developer Deposits 184,291 - 184,291 - GWTP Closure - 37,001 37,001 - Water utility revenue - 291,482 291,482 - Harbison maintenance reserve - - - 19,946 Total 10,383,056$ 328,483$ 10,711,539$ 4,924,433$ 96 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 12 – UNEARNED REVENUE, continued
Unearned revenues in the fund financial statements as of June 30, 2025, were as follows:
The following amounts and descriptions are included in unearned revenue in the fund financial statements:
$ 1,314,944 Recreation and facility rental fees collected in advance of class or usage.
$ 5,767,283 American Rescue Plan Act funds received in advance of usage.
NOTE 13 – CLASSIFICATION OF FUND BALANCES
As of June 30, 2025, classifications of fund balance were as follows:
Fiduciary Funds
Other
Housing Special Governmental Sewer Water Successor
General Assistance Programs City Projects Funds Utility Utility Total Agency General services and
recreation revenue 1,420,136$ -$ -$ -$ -$ -$ -$ 1,420,136$ -$ Grant proceeds received in advance - 674,487 6,967,478 553,763 23,567 8,219,295 4,904,487 Community Facilities District - - - - 559,334 - - 559,334 - Developer Deposits - - - - 184,291 - - 184,291 - Mariani GWTP closure - - - - - 37,001 - 37,001 - Water utility revenue - - - - - - 291,482 291,482 - Harbison maintenance reserve - - - - - - - - 19,946 1,420,136$ 674,487$ 6,967,478$ 553,763$ 767,192$ 37,001$ 291,482$ 10,711,539$ 4,924,433$ Proprietary FundsMajor Governmental Funds
Other Total
Sucessor Housing Special City Governmental Governmental Fund Balance: General Housing Assistance Programs Projects Funds Funds Nonspendable
Loans and long-term receivables 1,442,125$ -$ -$ -$ -$ -$ 1,442,125$ Subtotal 1,442,125 - - - - - 1,442,125 Restricted
Grants, development impact fees - - - - 74,426,740 2,087,177 76,513,917 Bond proceeds - - - - 1,534,727 - 1,534,727 Highway and streets - - - - 14,741,179 3,477,428 18,218,607 Community facility district - - - - - - - Housing - 30,429,259 11,154,296 - - - 41,583,555 Debt service - - - - - 8,750,750 8,750,750 Capital projects - - - - - 555,358 555,358 Encumbrances - 57,461 92,005 - - 1,523,491 1,672,957 Subtotal - 30,486,720 11,246,301 - 90,702,646 16,394,204 148,829,871 Assigned
Capital projects 5,759,663 - - - (29,864,302) - (24,104,639) Technology 271,830 - - - - - 271,830 Measure M 22,429,126 - - - - - 22,429,126 Lagoon Valley Improvements 508,537 - - - - - 508,537 General government - - - - - - - Community services - - - - - - - Public safety equipment replacement - - - - - - - Future park improvements 62,438 - - - - - 62,438 Encumbrances 11,034,509 - - - 30,199,627 - 41,234,136 Subtotal 40,066,103 - - - 335,325 - 40,401,428 Unassigned 38,326,301 - - (2,391,366) - (128,074) 35,806,861 Total Fund Balances 79,834,529$ 30,486,720$ 11,246,301$ (2,391,366)$ 91,037,971$ 16,266,130$ 226,480,285$ 97 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 13 – CLASSIFICATION OF FUND BALANCES, continued
Grants, development impact fees include amounts restricted for AB 1600 funded capital projects, grant funded reservoir rehab projects, etc.
Bonds proceeds include amounts restricted for downtown enhancement projects, East Main District capital improvements, etc.
Measure M amounts include funds earmarked by council action for Public Safety personnel, street and parks maintenance, and capital items.
NOTE 14 – RISK MANAGEMENT
The City is exposed to various risks of loss including government tort claims (general and automobile liability), employment practices liability, employee work related injuries and illnesses, public officials errors and omissions, natural disasters, and theft of or damage to property. The City protects its financial resources and assets through insurance programs managed and administered by the Risk Management Office within the Human Resources Department.
The Human Resources Department is responsible for managing the Workers’ Compensation Internal Service Fund and the City Manager’s Office is responsible for managing the General Liability Internal Service Fund to account for and finance the City’s risk of loss. Under these programs, the City is self-insured for the first $750,000 per occurrence for general, auto, and employment liability and is self-insured for the first $350,000 for workers’ compensation claims. All City operating funds and departments participate in the self-insurance programs and make payments to the General Liability and Workers’ Compensation Internal Service Funds based on size of payroll, risk, and actuarial estimates of the amounts needed to pay for both prior and current year claims. The total actuarial estimated claims liability at June 30, 2025 is $9,132,000, consisting of $2,857,000 general liability and $6,275,000 worker’s compensation liability. These amounts include allocated expenses and a provision for the incurred but not reported claims. Of this balance, $3,965,000 has been recorded as a current liability on the City’s balance sheet.
The City is a member of the California Joint Powers Risk Management Authority (CJPRMA) self-insurance pool.
Through CJPRMA, the City has an additional $39,500,000 in comprehensive liability coverage over and above our self-insured retention of $750,000 per occurrence. The City is also a member of the Local Agency Workers’ Compensation Excess (LAWCX) Joint Powers Authority self-insurance pool which provides excess workers compensation coverage above our self-insured retention of $350,000. The purpose of CJPRMA and LAWCX is to spread the adverse effects of losses among the member public agencies and to purchase excess insurance as a group, thereby reducing its expense. The City contributes its pro rata share of expected losses to these self- insurance pools administered by CJPRMA and LAWCX. Should the pool’s actual losses among participating agencies be greater than the anticipated losses, the City may be assessed its pro rata share of that deficiency.
Conversely, if the actual losses for the pool are less than anticipated, the City may from time to time be refunded a pro rata share of the excess.
Additionally, the City participates in the California Transit Insurance Pool (CalTIP), a California Joint Powers Authority. The purpose of CalTIP is to provide coverage for the City's public transit system. The City maintains, through its membership in CalTIP, general, automobile, and public official’s errors and omissions limits of $20,000,000 per occurrence, subject to a $25,000 self-insured retention. In addition, the City participates in CalTIP's Physical Damage Program, protecting the transit vehicle fleet with a $5,000 deductible per accident.
The City also maintains separate policies for special events with a $25,000 deductible, automobile physical damage for vehicles valued over $10,000, property insurance with a $100,000 deductible, boiler and machinery, pollution, terrorism, employee crime and fidelity, and drone insurance.
98 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 14 – RISK MANAGEMENT, continued
The following claim estimates are based on the requirements of Governmental Accounting Standards Board Statement 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, and include estimated claims incurred but not yet reported as of June 30, 2025. Changes in the Insurance Fund claims liability during the fiscal years July 1, 2021 through June 30, 2025 are as follows:
NOTE 15 – SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVELOPMENT AGENCY
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Vacaville that previously reported a redevelopment agency within the reporting entity of the City as a blended component unit.
The Bill provides that upon dissolution of the redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 10, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2012-10.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).
In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.
The Bill directs the State Controller of the State of California (SCO) to review the propriety of any transfer of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure of encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill.
Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City.
In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.
Current Year Claims Current Year
Claims Liability and Changes Claim Balance Due Within
July 1 in Estimates Payments June 30 One Year
2021-2022 6,423,435$ 1,799,999$ (1,468,903)$ 6,754,531$ 1,757,819$ 2022-2023 6,754,531$ 3,025,692$ (1,912,223)$ 7,868,000$ 2,684,000$ 2023-2024 7,868,000$ 2,201,480$ (2,545,920)$ 7,523,560$ 2,984,000$ 2024-2025 7,523,560$ 4,228,064$ (2,619,624)$ 9,132,000$ 3,965,000$ 99 Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 15 – SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVELOPMENT AGENCY, continued
After the date of the dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.
As a result of the dissolution of the redevelopment agency, the City received a one-time settlement of $4,482,226 during the fiscal year 2012-13.
During fiscal year 2013-14, Pursuant to Health and Safety Code section 34167.5, the SCO reviewed all asset transfers made by the Vacaville Redevelopment Agency (RDA) to the City of Vacaville or any other public agency after January 1, 2011. The SCO determined that the RDA made an unallowable asset transfer in cash to the City after January 1, 2011 in the amount of $3,814,709 on February 28, 2011 to repay an unsecured Promissory Note dated November 17, 2000. The City was ordered to reverse the transfer and turn it over to the Successor Agency.
This “clawback” was recorded as a receivable to the City from the Successor Agency and was fully paid in fiscal year 2018-19.
On December 16, 2015 the DOF issued a final determination related to the disposition of Successor Agency properties. The DOF determination approved the transfer of 16 parcels to the City for governmental use, including the Harbison Event Center, Carnegie Library, and the downtown parking lots.
NOTE 16 – POLLUTION REMEDIATION
Groundwater monitoring data collected since 1996 indicate that operations at the City’s Gibson Canyon Wastewater Treatment Plant (WWTP) contributed to increased salinity in groundwater beneath the WWTP. The City determined that compliance with groundwater quality regulatory requirements would be cost prohibitive and agreed with users of the WWTP to a closure plan. As of December 2006, the WWTP has ceased operation. A Final Closure Plan has been developed to achieve a clean-closure. Once the groundwater remediation work is completed, the need for post-closure maintenance will be eliminated. However, corrective action will continue for up to 20 years with the operation of the groundwater remediation system. The Closure Plan consists of the demolition or renovation of existing structures, demolition or abandonment of existing piping systems and re-grading of the chlorination basin, the stabilization ponds, and the aeration basins. At the time, the City estimated - based on engineering cost estimates for closure of projects - $1,355,000 for the Closure Plan work with no estimated recoveries to reduce the liability. The groundwater remediation work is still ongoing. Although the groundwater plume has been adequately contained, it is not shrinking. The estimated remaining liability for the remediation program work was $115,000 as of June 30, 2025.
NOTE 17 – COMMITMENTS AND CONTINGENCIES
A. COMMITMENTS
City Projects
In Fiscal Year 2024, the city entered into a contract with Opterra Energy Services, LLC, formerly known as Engie Services U.S. Inc., for a citywide solar energy conservation project. The project contract is for solar panel and generator installations across various city facilities. The construction phase commenced in Fiscal Year 2025 and, as of June 30, 2025, the outstanding balance on the construction phase was $7,371,343.55.
On May 13, 2025, the city awarded Pavement Coatings Co. with a construction contract for the 2025 Slurry Seal project. Annually, Public Works implements a slurry seal project to repair and maintain residential and major roadways. The project is funded through Measure M and state gas tax funding. As of June 30, 2025, the outstanding balance on the contract was $3,746,333.60.
100
Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 17 – COMMITMENTS AND CONTINGENCIES, continued
On April 8, 2025, the city awarded QA Constructors, Inc. with a construction contract for the 2025 Asphalt Concrete (AC) Repair project. The project is intended to repair areas where pavement has failed in residential, collector and arterial streets. The project is funded through Measure M and state gas tax funding. As of June 30, 2025, the outstanding balance on the contract was $1,564,309.56.
Sewer Utility
The City entered into a contract with Holt of California for the improvement of key components of the wastewater treatment plant control systems. The scope of the project includes upgrading the generators and programmable logic controller (PLC), modernizing the human machine interface (HMI), and performing testing of all improvements.
As of June 30, 2025, the contract had a balance of $530,000.
The City entered into a contract with West Yost and Associates for the Easterly Well 3 design, bidding, and construction period engineering services. The scope of services for the project includes preliminary design, treatment improvements, bid services, engineering services during construction and project management. As of June 30, 2025, the contract had an outstanding balance of $196,860.27.
In June 2025 the City extended a contract with Luhdorff and Scalmanini Consulting Engineers, Inc. for the Gibson Canyon closure project. The scope of services for the contract includes project management to create a plan for the City to conduct a subsurface hydrogeologic investigation at the former Gibson Canyon Wastewater Treatment Plant site. As of June 30, 2025, the outstanding balance of the contract was $89,581.25.
Water Utility
The City entered into a contract with Verdantas, Inc. for Well 18 and 19 design and construction support services in the amount of $2,858,676. The contract includes work for project management, surveying and mapping, and geotechnical and environmental studies and other administrative tasks and subsequent drilling and inspection services. As of June 30, 2025, the outstanding balance of the contract was $2,774,006.34.
The City entered into a contract with Luhdorff & Scalmanini Consulting Engineers, Inc. for hydrogeologic investigation and well design services for the Green Tree and Well 1 sites. The scope of work includes evaluating and investigating prospective well sites, including test drilling, well monitoring, and water quality analysis. As of June 30, 2025, the outstanding balance of the contract was $156,054.78.
The City had an outstanding contract with Zanjero, Inc. for consultant services for the recycled water supply replenishment and reliability project. The work includes identifying options for use of recycled water, analyzing alternatives for the use of recycled water, preparation of a recycled water planning report, and managing the project along with City staff. As of June 30, 2025, the outstanding balance of the contract was $115,237.50.
B. CONTINGENCIES
The City participates in a number of federal and state grant programs. These programs are subject to program compliance audits by the grantors or their representatives. Such audits could lead to request for reimbursement of expenditures disallowed under the terms of the grant. The amount, if any, of expenditures that may be disallowed by the granting agencies cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.
101
Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 17 – COMMITMENTS AND CONTINGENCIES, continued
On February 12, 2019, the City Council adopted an ordinance amending Vacaville Municipal Code Subsection
11.010.70 (D) and Section 11.01.100 related to the expiration of development impact fee credits in situations where a building is demolished or its use is discontinued. Previously, the fee credits would expire if a new structure was not constructed on the same property within 10 years or if a new use was not established in the same building within 15 years. The ordinance amended the code so that these fees would not expire. The value of these fee credits is currently undeterminable and unlikely to have a material effect on the financial statements since the credit is only triggered when a demolition occurs and new construction occurs on the same property, or a use is discontinued. Historically, these situations rarely occur.
On March 11, 2021, the American Rescue Plan Act was signed into law and includes direct funding to local government agencies with a population over 50,000. The City received $12.6 million as a result.
Various claims and lawsuits are pending against the City. Although the outcome of these claims and lawsuits is not presently determinable, in the opinion of the City’s management, on advice of legal counsel, it is unlikely that they will have a material adverse effect on the accompanying financial statements.
NOTE 18 - JOINTLY GOVERNED AND RELATED ORGANIZATIONS
The City of Vacaville participates in various joint ventures and jointly governed organizations. The City's financial interests are as follows:
The Solano Water Authority
The Solano Water Authority (the Water Authority), a joint powers agency, was organized in September of 1987 to develop water resources and related water projects for the participating local county agencies. The governing body of the Water Authority consists of a representative from each participating agency. The Water Authority has initiated three major water projects to date; Noonan Reservoir, Imported Water Supply Development, and Groundwater Management; all of which are in the research and development phase.
The City’s equity investment in the Water Authority, $354,515, is reported in the Water Utility Enterprise Fund as an investment in joint venture. Complete financial statements may be obtained from the Solano Irrigation District.
The following unaudited information for the Water Authority is presented as of, and for the year ended June 30, 2025:
Current assets 489,847$
Property, plant and equipment, net 954,067
Total assets 1,443,914
Net position 1,443,914$
Other revenues (expenses), net (3,197)
Decrease in net position (3,197)$
102
Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 18 - JOINTLY GOVERNED AND RELATED ORGANIZATIONS, continued
North Bay Treatment Plant
The North Bay Treatment Plant was constructed through a joint exercise of powers agreement between the City of Fairfield and the City to operate and maintain facilities for supplying potable water to their respective service areas. A Joint Powers Policy Committee (JPPC) handles the organization and administration of the North Bay Treatment Plant. The JPPC is composed of the Director of Public Works from Fairfield and the Director of Utilities from the City or their designated alternates. The City's equity in the joint venture is shown as an investment in joint venture in the City’s enterprise funds in the amount of $24,595,391 which represents a 36.00% equity interest. The City’s contribution to the operations of the North Bay Treatment Plant for the fiscal year was $3,847,995. This amount is included in the total operating revenues stated in the following financial information.
Complete financial statements may be obtained through the City of Fairfield Finance Department.
Summarized audited financial information for the North Bay Treatment Plant as of June 30, 2025, is shown below:
NORTH BAY TREATMENT PLANT
Current assets 8,489,782$
Noncurrent assets 67,262,752
Total assets 75,752,534
Deferred outflows of resources 1,311,743
Current liabilities 747,129
Noncurrent liabilities 7,581,662
Total liabilities 8,328,791
Deferred inflows of resources 423,896
Net investment in Capital Assets 31,605,399
Restricted for major maintenance 35,657,353
Restricted for minority interest 282,495
Unrestricted 766,343
Total Net Position 68,311,590$
Total operating revenues 11,939,809$
Total operating expenses 11,622,255
Operating Income 317,554
Total non-operating revenues (expenses) 1,968,395
Income before transfers 2,285,949
Transfers (82,124)
Total transfers (82,124)
Increase in Net Position 2,203,825
Net Position
Beginning of Year 66,107,765
End of Year 68,311,590$
24,595,391
36.00%
103
Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 18 - JOINTLY GOVERNED AND RELATED ORGANIZATIONS, continued
A summary of the City’s equity in the joint venture is presented below:
Vacaville-Dixon Greenbelt Authority
In order to provide a distinct separation between the urban areas of Vacaville and Dixon, it was determined that a permanent greenbelt should be established. The Vacaville-Dixon Greenbelt Authority (VDGA) was created under a joint exercise of powers agreement between the two cities for the purpose of providing for the preservation and conservation of viable agricultural and open space land. The governing body consists of two members each from the City Councils of Vacaville and Dixon and one ex-officio member from the Solano County Board of Supervisors.
The cities share equally in VDGA operations. During the fiscal year ended June 30, 2025, the city reimbursed the City of Dixon $11,937.34 for the construction and installation of the Vacaville-Dixon Greenbelt Sign on the I-80 corridor.
Solano Animal Control Authority
The Solano Animal Control Authority (SACA), a California Joint Powers Authority, provides animal control services to member cities in Solano County. The City, through its membership in SACA, receives animal control services including response for vicious, injured, dead, loose, unwanted and noisy animals. During the fiscal year ended June 30, 2025, the City contributed $624,906 to the operation and maintenance of the Claybank Animal Shelter and $89,477 towards capital improvements. The City has no equity interest in SACA.
Solano Transportation Authority
The Solano Transportation Authority (STA), a California Joint Powers Authority, provides for coordinated, continuous and comprehensive transportation planning for Solano County and the cities within its boundaries. STA members refine and update the County transportation plan, coordinate planning and implementation of improvements and operate or contract for transit and paratransit services. The City paid a membership fee of $172,542 through the Local Transportation Fund and $64,450 from gas tax revenues to STA for fiscal year 2025.
The City has no equity interest in STA.
NOTE 19 – TAX ABATEMENT
GASB Statement No. 77 defines tax abatements as resulting from an agreement between a government and an individual or entity in which the government promises to forgo tax revenues and the individual or entity promises to subsequently take a specific action that contributes to economic development or otherwise benefits the government or its citizens. According to the GASB 77, the substance of these agreements meets the definition of “tax abatements” as the revenues received were not available for general municipal services purposes but rather used to reduce the net tax liability of certain taxpayers per the conditions of an agreement. The taxes paid to the City are included in the revenue reported in these financial statements and the payments made to the businesses based upon the taxes paid are also included as expenditures in these financial statements.
Net Position City of Vacaville City of Fairfield Total Net investment in capital assets 11,425,485$ 20,179,914$ 31,605,399$ Restricted for major maintenance 12,887,411 22,769,942 35,657,353 Restricted for minority interest 282,495 - 282,495 Unrestricted - 766,343 766,343 Total net position 24,595,391$ 43,716,199$ 68,311,590$ 104
Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 19 – TAX ABATEMENT, continued
The City offers several economic development incentive programs - which are detailed below - to entities that propose to locate or expand already established businesses within the City. In compliance with Government Code sections 53084 and 53084.5, the incentives may not be offered to entities that relocate their business to Vacaville from another city. The City Council must approve that the incentive will result in a net financial benefit to the public that will exceed the value of the incentive provided to the entity, a direct public benefit through the provision of either high-paying jobs, the generation of sales, property, and/or transient occupancy taxes, or that other benefits to the City will be provided by the entity, and that the incentive represents a partial return of revenues or fees that will be realized once the project is completed.
Retail Incentive Program
The purpose of the Retail Incentive Program is to attract “unique businesses” to leverage the strengths of the City’s retail areas with public sector support. This program is meant to attract new investment dollars from retailers that are not currently serving the area. The program uses a sales tax rebate as the incentive. There are currently no businesses that have received a sales tax rebate under this program.
Office and Industrial Incentive Program
This program is intended to provide financial incentives to eligible developer-owners, prospective tenants, or tenant representatives for clients looking to locate or expand in the City’s office or industrial areas. The financial incentive may be either a sales, use, property, or other tax rebate, or direct financial assistance via reduction of development impact fees. Entities must meet one or more of the following criteria: generate annual gross sales of at least $10 million, generate sales or use tax to the City corresponding to the gross sales, and/or provide a minimum of 200 full-time equivalent high paying (annual gross salary that meets or exceeds 60% of the current City median household income) jobs. There are no current tax abatement agreements under this program.
NOTE 20 – AVAILABILITY PAY ARRANGEMENTS
GASB Statement No. 94 defines an Availability Payment Arrangement (APA) as an arrangement in which a government compensates an operator for activities that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like transaction where the payments provided by the government are based entirely on the asset’s availability for use.
As of July 1, 2023, The City of Vacaville extended its agreement with VenueTech Management group to operate the Vacaville Performing Arts Theatre through June 30, 2026 to support cultural development for the Vacaville community and to promote and provide recreational and cultural activities for Vacaville residents. The annual fee paid by the City is solely for consultation and management services provided by VenueTech. This agreement qualifies as an Availability Payment Arrangement, and, as such, under GASB Statement No. 94, these payments should be accounted for as outflows of resources by the City in the period to which the payments relate. The implementation of this statement resulted in no change of accounting treatment and had no material impact on the financial statements.
105
Item 9.a
CITY OF VACAVILLE
Notes to the Basic Financial Statements
For the year ended June 30, 2025
NOTE 21 – GASB 100 ACCOUNTING CHANGES AND ERROR CORRECTIONS
As of July 1, 2024, the City implemented GASB Statement No. 101, Compensated Absences. The City has restated the beginning net position for governmental activities and business-type activities to record the impact of the compensated absence liabilities. The effect of this change in accounting principle is shown in the table below.
During the year ended June 30, 2025, the City determined that cost of six vehicles and six radios purchased by the Vehicle Replacement Fund should have been capitalized in the prior year. Therefore, capital assets, net of depreciation, were understated by $249,968 for the year ended June 30, 2024. The effect of correcting that error is shown in the table below.
NOTE 22 – SUBSEQUENT EVENTS
The City evaluated subsequent events for recognition and disclosure through March 31, 2026, the date on which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2025, that required recognition or disclosure in these financial statements.
Vehicle Replacement Sewer Utility Water Utility
Governmental
Activities
Business-Type
Activities
6/30/2024 Net Position, as previously reported 18,429,243$ 215,626,284$ 167,229,112$ 487,969,990$ 410,550,663$ Change in Accounting Principle -$ (672,767) (172,469) (7,531,732)$ (845,236)$ Error Correction 249,968 - - 249,968 - 6/30/2024 Net Position, as restated 18,679,211$ 214,953,517$ 167,056,643$ 480,688,226$ 409,705,427$ Reporting Units Affected by Restatements of Beginning Balances Government-WideFunds
106
Item 9.a
REQUIRED SUPPLEMENTARY INFORMATION
107
Item 9.a
Budgetary Data
1. The City Manager submits a recommended annual operating budget to the City Council for each fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.
2. The City Council holds budget study sessions which are open to the public for its comments.
3. The budget is prepared by fund and by department. The budget is approved by City Council through the passage of an ordinance.
4. The City Manager has the ability to transfer amounts between funds and fund types without City Council approval as long as there is no legal restriction and as long as the transfer does not result in the total appropriation amount being exceeded. When an appropriation requires an increase that cannot be supported by a transfer, City Council authorization is required.
Encumbrances
Budgets are adopted on a basis consistent with Generally Accepted Accounting Principles (GAAP). Budgetary comparisons presented in this report are on this budgetary basis and reflect applicable amendments and revisions. The City uses the following procedures in establishing the annual budget:
Encumbrance accounting is used during the year for budgetary control. Encumbrances outstanding at year-end do not constitute expenditures or liabilities, but rather, an assignment of fund balance. The City honors contracts represented by year-end encumbrances and the appropriations carried over provide authority to complete these transactions in the following year.
REQUIRED SUPPLEMENTARY INFORMATION
The City adopts annual budgets for the General and Special Revenue Funds. The City also adopts project length budgets which can span a number of years for the Capital Projects Funds. The Debt Service Funds' budgets are adopted when the debt issuances are authorized.
108
Item 9.a
CITY OF VACAVILLE
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes and fees 114,952,077$ 114,952,077$ 125,593,236$ 10,641,159$ Licenses and permits 478,714 478,714 331,844 (146,870) Investment income 1,128,950 1,128,950 4,925,207 3,796,257 Intergovernmental 1,786,000 1,786,000 2,869,448 1,083,448 Charges for services 12,559,002 12,559,002 14,656,789 2,097,787 Rents and royalties 475,000 475,000 494,698 19,698 Fines, forfeitures and penalties 296,825 296,825 431,730 134,905 Other 147,758 147,758 362,163 214,405 Total Revenues 131,824,326 131,824,326 149,665,115 17,840,789 Expenditures:
Current:
General government 18,524,487 19,120,508 16,672,210 2,448,298 Public safety 98,719,031 98,840,096 95,044,798 3,795,298 Public works 11,901,000 11,919,215 11,521,639 397,576 Community services 14,793,826 14,957,636 14,495,942 461,694 Housing 136,954 136,954 119,797 17,157 Capital outlay - - 331,393 (331,393) Debt service:
Principal 183,716 183,716 1,697,642 (1,513,926) Interest - - 239,217 (239,217) Total Expenditures 144,259,014 145,158,125 140,122,638 5,035,487 Excess (deficiency) of revenues over (under) expenditures (12,434,688) (13,333,799) 9,542,477 22,876,276 Other Financing Sources (Uses):
Transfers in 8,418,388 8,418,388 8,539,615 121,227 Transfers out (9,405,291) (36,058,194) (18,808,857) 17,249,337 Sale of capital assets - - - - Subscription based information technology arrangements (SBITAs) - - 127,083 127,083 Total Other Financing Sources (Uses) (986,903) (27,639,806) (10,142,159) 17,497,647 Net Change in Fund Balance (13,421,591) (40,973,605) (599,682) 40,373,923 Fund balances, beginning of year 80,434,211 80,434,211 80,434,211 - Fund balances, end of year 67,012,620$ 39,460,606$ 79,834,529$ 40,373,923$ Budget Amounts
109
Item 9.a
CITY OF VACAVILLE
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
SUCCESSOR HOUSING
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income -$ -$ 434,971$ 434,971$ Rents and royalties - - - - Other 901,249 901,249 88,379 (812,870) Total Revenues 901,249 901,249 523,350 (377,899) Expenditures:
Current:
Housing 8,960,206 8,981,984 1,080,032 7,901,952 Interest and fiscal charges - - - - Total Expenditures 8,960,206 8,981,984 1,080,032 7,901,952 Excess (deficiency) of revenues over (under) expenditures (8,058,957) (8,080,735) (556,682) 7,524,053 Other Financing Sources (Uses):
Transfers out - - (43) (43) Sale of capital assets - - 341,250 341,250 Total Other Financing Sources (Uses) - - 341,207 341,207 Net Change in Fund Balance (8,058,957) (8,080,735) (215,475) 7,865,260 Fund Balances, Beginning of Year 30,702,195 30,702,195 30,702,195 - Fund Balances, End of Year 22,643,238$ 22,621,460$ 30,486,720$ 7,865,260$ Budget Amounts
110
Item 9.a
CITY OF VACAVILLE
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
HOUSING ASSISTANCE
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income -$ -$ 152,779$ 152,779$ Intergovernmental 25,714,858 26,590,237 27,229,299 639,062 Charges for services - - 20,767 20,767 Other - - 68,934 68,934 Total Revenues 25,714,858 26,590,237 27,471,779 881,542 Expenditures:
Current:
Housing 25,254,286 25,252,358 27,103,065 (1,850,707) Capital outlay - - - - Debt service:
Principal - - 39,466 (39,466) Interest - - 962 (962) Total Expenditures 25,254,286 25,252,358 27,143,493 (1,891,135) Excess (deficiency) of revenues over (under) expenditures 460,572 1,337,879 328,286 (1,009,593) Other Financing Sources (Uses):
Transfers in - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balance 460,572 1,337,879 328,286 (1,009,593) Fund Balances, Beginning of Year 10,918,015 10,918,015 10,918,015 - Fund Balances, End of Year 11,378,587$ 12,255,894$ 11,246,301$ (1,009,593)$ Budget Amounts
111
Item 9.a
CITY OF VACAVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
SPECIAL PROGRAMS
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Taxes & Fees 215,000$ 215,000$ 182,623$ (32,377)$ Investment income 5,000 5,000 55,422 50,422 Intergovernmental 7,404,933 17,538,144 6,871,775 (10,666,369) Charges for services 135,000 2,751,745 679,709 (2,072,036) Fines, forfeitures and penalties - - - - Other - - 4,797 4,797 Total Revenues 7,759,933 20,509,889 7,794,326 (12,715,563) Expenditures:
Current:
General government 324,782 6,863,656 2,785,486 4,078,170 Public safety 561,056 709,890 3,079,954 (2,370,064) Public works 99,458 367,761 239,312 128,449 Community services - - 78,389 (78,389) Housing - - 108,981 (108,981) Capital outlay - - 852,281 (852,281) Debt service:
Principal - - 950,527 (950,527) Interest - - 24,214 (24,214) Total Expenditures 985,296 7,941,307 8,119,144 (177,837) Excess (Deficiency) of Revenues Over (Under) Expenditures 6,774,637 12,568,582 (324,818) (12,893,400) Other Financing Sources (Uses)
Transfers in 5,000 380,000 471,130 91,130 Transfers out (500) (9,368,162) (1,694,637) 7,673,525 Subscription based information technology arrangements (SBITAs) - - 84,448 84,448 Total Other Financing Sources (Uses) 4,500 (8,988,162) (1,139,059) 7,764,655 Net Change in Fund Balances 6,779,137 3,580,420 (1,463,877) (5,128,745) Fund Balances, Beginning of Year (1,695,322) (1,695,322) (1,695,322) - Fund Balances, End of Year 5,083,815$ 1,885,098$ (3,159,199)$ (5,128,745)$ Budget Amounts
112
Item 9.a
CITY OF VACAVILLE
REQUIRED SUPPLEMENTARY INFORMATION
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2025 2024 2023 2022 2021 2020 2019 2018
Measurement Period June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Total OPEB Liability
Service Cost 3,250,478$ 2,725,543$ 3,037,017$ 3,378,497$ 3,363,025$ 3,987,272$ 3,803,326$ 3,562,835$ Interest 8,356,673 7,903,012 7,128,994 7,853,750 7,584,779 7,578,675 7,227,589 6,885,327 Difference Between Expected and Actual Experience 17,995,515 (251,482) 7,320,319 2,491,686 - (179,414) - - Changes of Assumptions 1,186,008 8,949,552 1,880,365 (17,623,325) - (191,770) - - Benefit Payments, Including Refunds of Employee Contributions (8,025,824) (7,437,907) (6,865,614) (6,951,470) (6,702,964) (5,980,269) (5,692,757) (5,545,872) Net Change in Total OPEB Liability 22,762,850 11,888,718 12,501,081 (10,850,862) 4,244,840 5,214,494 5,338,158 4,902,290 Total OPEB Liability - Beginning 134,408,388 122,519,670 110,018,589 120,869,451 116,624,611 111,410,117 106,071,959 101,169,669 Total OPEB Liability - Ending (a) 157,171,238$ 134,408,388$ 122,519,670$ 110,018,589$ 120,869,451$ 116,624,611$ 111,410,117$ 106,071,959$ Plan Fiduciary Net Position
Contributions - Employer 10,525,824$ 9,487,907$ 8,200,614$ 10,996,470$ 11,617,964$ 11,150,269$ 11,562,757$ 8,522,372$ Net Investment Income 6,747,414 3,574,640 (8,417,734) 12,717,113 1,467,421 2,210,294 1,938,189 2,093,866 Benefit Payments, Including Refunds of Employee Contributions (8,025,824) (7,437,907) (6,865,614) (6,951,470) (6,702,964) (5,980,269) (5,692,757) (5,545,872) Administrative Expense (31,069) (27,515) (30,357) (26,086) (20,796) (16,354) (13,404) (17,401) Net Change in Fiduciary Net Position 9,216,345 5,597,125 (7,113,091) 16,736,027 6,361,625 7,363,940 7,794,785 5,052,965 Plan Fiduciary Net Position - Beginning 60,015,021 54,417,896 61,530,987 44,794,960 38,433,335 31,069,395 23,274,610 18,221,645 Plan Fiduciary Net Position - Ending (b) 69,231,366$ 60,015,021$ 54,417,896$ 61,530,987$ 44,794,960$ 38,433,335$ 31,069,395$ 23,274,610$ Plan Net OPEB Liability/(Asset) - Ending (a) - (b) 87,939,872$ 74,393,367$ 68,101,774$ 48,487,602$ 76,074,491$ 78,191,276$ 80,340,722$ 82,797,349$ Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 44.05% 44.65% 44.42% 55.93% 37.06% 32.95% 27.89% 21.94% Covered-Employee Payroll 70,064,681$ 63,647,723$ 59,568,254$ 58,118,637$ 55,888,662$ 51,929,478$ 49,289,087$ 44,694,355$ Net OPEB Liability as a Percentage of Covered Payroll 125.51% 116.88% 114.33% 83.43% 136.12% 150.57% 163.00% 185.25% (1) Historical information is required only for the measurement periods for which GASB Statement No. 75 is applicable. Fiscal year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.
Schedule of Changes in the Net OPEB Liability and Related Ratios 113
Item 9.a
CITY OF VACAVILLE
REQUIRED SUPPLEMENTARY INFORMATION
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2025 2024 2023 2022 2021 2020 2019 2018
Actuarially Determined Contribution 11,679,283$ 9,920,005$ 9,070,455$ 7,104,376$ 9,779,803$ 9,518,057$ 10,297,257$ 9,939,506$ Contribution in Relation to the Actuarially Determined Contributions (11,816,916) (10,525,824) (9,487,907) (8,200,614) (10,996,470) (11,617,964) (11,150,269) (11,562,757) Contribution Deficiency (Excess) (137,633)$ (605,819)$ (417,452)$ (1,096,238)$ (1,216,667)$ (2,099,907)$ (853,012)$ (1,623,251)$ Covered-employee Payroll 73,251,837$ 70,064,681$ 63,647,723$ 59,568,254$ 58,118,637$ 55,888,662$ 51,292,478$ 49,289,087$ Contributions as a Percentage of Covered Employee Payroll 16.13% 15.02% 14.91% 13.77% 18.92% 20.79% 21.74% 23.46% (1) Historical information is required only for the measurement periods for which GASB Statement No. 75 is applicable. Fiscal Year 2018 was the first year of implementation.
Future years' information will be displayed up to 10 years as information becomes available.
Notes to Schedule: N/A
*Actuarial methods and assumptions used to set the actuarially determined contribution for Fiscal Year 2024 were from the June 30, 2023 actuarial valuation.
Methods and assumptions used to determine contributions:
Actuarial Cost Method Entry Age Normal, level percent of payroll Amortization Method Level percentage of payroll
Amortization Period 14 years as of 6/30/2024
Asset Valuation Method Market Value
Discount Rate 6.25%
Inflation 2.50%
Medical Trend Non-Medicare - 5.9% for 2024, decreasing to an ultimate rate of 3.7% in 2073 Medicare - 12.76% for 2024, decreasing to an ultimate rate of 3.7% in 2073 Mortality CalPERS 2000-2019 experience study
Mortality Improvement CalPERS Experience Study issued November 2021 All Other Assumptions Same as those used to determine the total OPEB liability OPEB - Schedule of Plan Contributions
114
Item 9.a
CITY OF VACAVILLE
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2025
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Measurement Period June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Total Pension Liability
Service Cost 6,352,567$ 5,677,246$ 5,494,299$ 4,725,762$ 4,628,561$ 4,294,485$ 4,282,235$ 4,070,951$ 3,639,007$ 3,593,518$ Interest 21,843,185 20,774,289 19,771,770 19,159,420 18,440,540 17,570,932 16,724,064 16,149,819 15,690,624 15,160,887 Changes of Benefit Terms - 343,097 - - - - - - - - Difference Between Expected and Actual Experience 5,472,860 4,548,733 (401,051) 856,270 3,262,977 3,036,102 664,877 (1,689,195) (2,033,908) (1,553,311) Changes of Assumptions - - 9,410,825 - - - (1,650,869) 13,405,143 - (3,722,850) Benefit Payments, Including Refunds of Employee Contributions (17,260,045) (16,281,539) (15,158,710) (14,232,814) (13,606,594) (12,659,571) (11,748,841) (10,869,200) (10,123,097) (9,514,061) Net Change in Total Pension Liability 16,408,567 15,061,826 19,117,133 10,508,638 12,725,484 12,241,948 8,271,466 21,067,518 7,172,626 3,964,183 Total Pension Liability - Beginning 316,548,778 301,486,952 282,369,819 271,861,181 259,135,697 246,893,749 238,622,283 217,554,765 210,382,139 206,417,956 Total Pension Liability - Ending (a) 332,957,345$ 316,548,778$ 301,486,952$ 282,369,819$ 271,861,181$ 259,135,697$ 246,893,749$ 238,622,283$ 217,554,765$ 210,382,139$ Plan Fiduciary Net Position
Contributions - Employer 12,575,011$ 12,118,227$ 11,685,300$ 8,560,825$ 7,795,719$ 6,883,772$ 6,025,604$ 5,511,690$ 5,298,538$ 4,433,062$ Contributions - Employee 3,023,670 2,627,611 2,455,292 2,342,496 2,296,252 2,102,224 2,004,097 1,979,001 1,707,009 1,680,540 Net Investment Income 20,818,737 12,818,553 (16,914,874) 41,718,044 8,967,860 11,278,235 13,837,827 16,897,828 790,828 3,371,547 Net Plan to Plan Resource Movement (121) (2,325) - - - - 20,385 Benefit Payments, Including Refunds of Employee Contributions (17,260,045) (16,281,539) (15,158,710) (14,232,814) (13,606,594) (12,659,571) (11,748,841) (10,869,200) (10,123,097) (9,514,061) Administrative Expense (175,556) (150,467) (138,723) (184,291) (252,750) (122,603) (253,061) (220,135) (92,342) (170,549) Other Changes in Fiduciary Net Position - - - - - 400 (480,568) - - 851 Net Change in Fiduciary Net Position 18,981,696 11,130,060 (18,071,715) 38,204,260 5,200,487 7,482,457 9,405,443 13,299,184 (2,419,064) (198,610) Plan Fiduciary Net Position - Beginning 215,749,400 204,619,340 222,691,055 184,486,795 179,286,308 171,803,851 162,398,408 149,099,224 151,518,288 151,716,898 Plan Fiduciary Net Position - Ending (b) 234,731,096$ 215,749,400$ 204,619,340$ 222,691,055$ 184,486,795$ 179,286,308$ 171,803,851$ 162,398,408$ 149,099,224$ 151,518,288$ Plan Net Pension Liability/(Asset) - Ending (a) - (b) 98,226,249$ 100,799,378$ 96,867,612$ 59,678,764$ 87,374,386$ 79,849,389$ 75,089,898$ 76,223,875$ 68,455,541$ 58,863,851$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 70.50% 68.16% 67.87% 78.87% 67.86% 69.19% 69.59% 68.06% 68.53% 72.02% Covered Payroll 33,593,170$ 32,568,460$ 30,508,467$ 29,406,361$ 27,094,542$ 28,792,806$ 25,775,960$ 25,415,588$ 23,566,640$ 25,025,634$ Net Pension Liability as a Percentage of Covered Payroll 292.40% 309.50% 317.51% 202.95% 322.48% 277.32% 291.32% 299.91% 290.48% 235.21% Notes to Schedule:
Benefit Changes:
The reported figures 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.
Changes of Assumptions:
There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting dicount 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 expected pension fund cash flows.
In addition, demographic assumptions and 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 2017 through 2021, and 7.65% for measurement dates 2015-2016.
Miscellaneous Plan
Agent Multiple-Employer Defined Benefit Pension Plan
Last 10 Years
Schedule of Changes in the Net Pension Liability and Related Ratios 115
Item 9.a
CITY OF VACAVILLE
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2025
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Measurement Period June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Total Pension Liability
Service Cost 8,908,035$ 8,442,216$ 8,356,248$ 7,881,683$ 7,088,239$ 7,043,408$ 6,434,504$ 6,743,529$ 5,552,457$ 5,591,667$ Interest 29,721,641 27,969,232 26,404,345 25,150,948 23,786,281 22,781,839 21,603,640 20,466,920 19,576,598 18,681,145 Changes of Benefit Terms - 126,646 - - - - - - - - Difference Between Expected and Actual Experience 9,246,428 6,306,030 (831,176) 2,954,454 (1,469,739) 1,790,717 3,169,943 (1,567,406) (1,413,668) 1,979,967 Changes of Assumptions - - 14,989,473 - - - (1,439,201) 18,155,192 - (4,983,218) Benefit Payments, Including Refunds of Employee Contributions (21,312,065) (19,675,078) (17,438,326) (15,597,830) (14,681,029) (13,978,578) (13,331,430) (12,445,567) (11,484,404) (10,784,136) Net Change in Total Pension Liability 26,564,039 23,169,046 31,480,564 20,389,255 14,723,752 17,637,386 16,437,456 31,352,668 12,230,983 10,485,425 Total Pension Liability - Beginning 427,703,995 404,534,949 373,054,385 352,665,130 337,941,378 320,303,992 303,866,536 272,513,868 260,282,885 249,797,460 Total Pension Liability - Ending (a) 454,268,034$ 427,703,995$ 404,534,949$ 373,054,385$ 352,665,130$ 337,941,378$ 320,303,992$ 303,866,536$ 272,513,868$ 260,282,885$ Plan Fiduciary Net Position
Contributions - Employer 19,683,625$ 18,330,303$ 14,768,471$ 14,153,282$ 12,918,457$ 11,214,077$ 10,142,509$ 9,200,463$ 8,843,994$ 8,631,967$ Contributions - Employee 3,939,376 3,454,507 3,240,202 3,304,480 3,135,831 2,830,991 2,721,930 2,484,982 2,201,585 1,816,937 Net Investment Income 27,963,726 16,865,504 (22,116,304) 53,827,925 11,120,855 13,729,875 16,386,837 19,927,697 858,115 3,809,579 Net Plan to Plan Resource Movement 121 2,325 - - - - (21,266) Benefit Payments, Including Refunds of Employee Contributions (21,312,065) (19,675,078) (17,438,326) (15,597,830) (14,681,029) (13,978,578) (13,331,430) (12,445,567) (11,484,404) (10,784,136) Administrative Expense (232,359) (196,175) (179,720) (232,800) (311,364) (147,873) (299,477) (255,826) (105,410) (194,650) Other Changes in Fiduciary Net Position - - - - - 481 (568,712) - - (851) Net Change in Fiduciary Net Position 30,042,424 18,781,386 (21,725,677) 55,455,057 12,182,750 13,648,973 15,030,391 18,911,749 313,880 3,278,846 Plan Fiduciary Net Position - Beginning 285,557,778 266,776,392 288,502,069 233,047,012 220,864,262 207,215,289 192,184,898 173,273,149 172,959,269 169,680,423 Plan Fiduciary Net Position - Ending (b) 315,600,202$ 285,557,778$ 266,776,392$ 288,502,069$ 233,047,012$ 220,864,262$ 207,215,289$ 192,184,898$ 173,273,149$ 172,959,269$ Plan Net Pension Liability/(Asset) - Ending (a) - (b) 138,667,832$ 142,146,217$ 137,758,557$ 84,552,316$ 119,618,118$ 117,077,116$ 113,088,703$ 111,681,638$ 99,240,719$ 87,323,616$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 69.47% 66.77% 65.95% 77.34% 66.08% 65.36% 64.69% 63.25% 63.58% 66.45% Covered Payroll 27,006,450$ 26,544,624$ 27,084,820$ 23,906,371$ 23,606,288$ 23,573,710$ 22,566,262$ 21,370,707$ 19,274,948$ 20,137,068$ Net Pension Liability as a Percentage of Covered Payroll 513.46% 535.50% 508.62% 353.68% 506.72% 496.64% 501.14% 522.59% 514.87% 433.65% Notes to Schedule
Benefit Changes
The reported figures 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.
Changes of Assumptions
There were no assumption changes in 2023 of 2024. 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 price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
Safety Plan
Agent Multiple-Employer Defined Benefit Pension Plan
Last 10 Years
Schedule of Changes in the Net Pension Liability and Related Ratios 116
Item 9.a
CITY OF VACAVILLE
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2025
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Actuarially determined contribution 12,267,502$ 11,010,448$ 10,713,740$ 9,685,300$ 8,563,743$ 7,795,070$ 6,884,422$ 6,019,753$ 5,511,690$ 5,289,899$ Contribution in relation to the actuarially determined contributions (12,281,514) (12,576,870) (12,118,699) (11,685,300) (8,563,743) (7,795,070) (6,884,422) (6,019,753) (5,511,690) (5,289,899) Contribution deficiency (excess) (14,012)$ (1,566,422)$ (1,404,959)$ (2,000,000)$ -$ -$ -$ -$ -$ -$ Covered payroll 37,566,926$ 33,593,170$ 32,568,460$ 30,508,467$ 29,406,361$ 27,094,542$ 28,792,806$ 25,775,960$ 25,415,588$ 23,566,640$ Contributions as a percentage of covered payroll 32.69% 37.44% 37.21% 38.30% 29.12% 28.77% 23.91% 23.35% 21.69% 22.45% Notes to Schedule:
Valuation date June 30, 2023
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age actuarial cost method
Amortization method Level percentage of payroll
Asset valuation method Market Value
Inflation 2.30%
Salary increasexs Varies by Entry Age and Service
Payroll growth 2.80%
Investment rate of return 6.80%, net of pension plan investment expenses, including inflation.
Retirement age The probabilities of retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
Mortality The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.
Miscellaneous Plan
Agent Multiple-Employer Defined Benefit Pension Plan
Last 10 Years
Schedule of Plan Contributions
117
Item 9.a
CITY OF VACAVILLE
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2025
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Actuarially Determined Contribution 19,195,572$ 17,644,942$ 17,128,834$ 14,768,471$ 14,154,414$ 12,926,127$ 13,506,592$ 10,147,595$ 9,200,650$ 8,837,204$ Contribution in relation to the Actuarially Determined Contributions (18,951,560) (19,685,929) (18,332,739) (14,768,471) (14,154,414) (12,926,127) (13,506,592) (10,147,595) (9,200,650) (8,837,204) Contribution Deficiency (Excess) 244,012$ (2,040,987)$ (1,203,905)$ -$ -$ -$ - $ -$ - $ - $ Covered Payroll 28,959,803$ 27,006,450$ 26,544,624$ 27,084,820$ 23,906,371$ 23,606,288$ 23,573,710$ 22,566,262$ 21,370,707$ 19,274,948$ Contributions as a Percentage of Covered Payroll 65.44% 72.89% 69.06% 54.53% 59.21% 54.76% 57.30% 44.97% 43.05% 45.85% Notes to Schedule:
Valuation date June 30, 2023
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age actuarial cost method
Amortization method Level percentage of pay
Asset valuation method Market Value
Inflation 2.30%
Salary increases Varies by Entry Age and Service
Payroll growth 2.80%
Investment rate of return 6.80%, net of pension plan investment expenses, including inflation.
Retirement age The probabilities of retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
Mortality The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.
Safety Plan
Agent Multiple-Employer Defined Benefit Pension Plan
Last 10 Years
Schedule of Plan Contributions
118
Item 9.a
CITY OF VACAVILLE
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2025
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Measurement Period June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Total Pension Liability
Service Cost 466,826$ 518,486$ 620,740$ 604,127$ 695,775$ 643,419$ 903,834$ 878,575$ 950,515$ 1,070,789$ Interest 4,331,436 4,143,132 4,134,879 3,936,534 3,868,776 3,974,530 3,874,434 3,660,384 3,463,819 3,331,873 Changes of Benefit Terms - - - - - - - - - - Difference Between Expected and Actual Experience 618,180 2,380,131 560,784 2,103,099 - (2,443,671) - 2,535,438 - (622,779) Changes of Assumptions - - (1,236,345) - - 1,670,278 - 4,325,462 - 1,567,158 Benefit Payments, Including Refunds of Employee Contributions (4,208,659) (3,981,137) (3,724,585) (3,496,840) (3,366,142) (3,153,756) (2,919,979) (2,740,593) (2,653,022) (2,338,674) Net Change in Total Pension Liability 1,207,783 3,060,612 355,473 3,146,920 1,198,409 690,800 1,858,289 8,659,266 1,761,312 3,008,367 Total Pension Liability - Beginning 68,241,839 65,181,227 64,825,754 61,678,834 60,480,425 59,789,625 57,931,336 49,272,070 47,510,758 44,502,391 Total Pension Liability - Ending (a) 69,449,622$ 68,241,839$ 65,181,227$ 64,825,754$ 61,678,834$ 60,480,425$ 59,789,625$ 57,931,336$ 49,272,070$ 47,510,758$ Plan Fiduciary Net Position
Contributions - Employer 4,028,181$ 3,628,402$ 3,744,851$ 3,886,357$ 3,348,558$ 3,366,989$ 2,825,129$ 2,837,184$ 2,709,376$ 2,760,122$ Contributions - Employee 235,439 258,229 280,071 297,624 329,522 337,144 357,008 360,808 402,607 414,680 Net Investment Income 3,187,143 2,036,337 (3,363,164) 5,694,753 768,943 1,245,146 1,236,844 1,728,933 180,668 311,185 Administrative Expenses (141,480) (163,055) (242,138) (224,033) (189,790) (180,904) (178,322) (172,072) (102,722) (70,906) Benefit Payments, Including Refunds of Employee Contributions (4,208,659) (3,981,137) (3,724,585) (3,496,840) (3,366,142) (3,153,756) (2,919,979) (2,740,593) (2,653,022) (2,338,674) Other Changes in Fiduciary Net Position - - - - - - - - - - Net Change in Fiduciary Net Position 3,100,624 1,778,776 (3,304,965) 6,157,861 891,091 1,614,619 1,320,680 2,014,260 536,907 1,076,407 Plan Fiduciary Net Position - Beginning 26,326,537 24,547,761 27,852,726 21,694,865 20,803,774 19,189,155 17,868,475 15,854,215 15,317,308 14,240,901 Plan Fiduciary Net Position - Ending (b) 29,427,161$ 26,326,537$ 24,547,761$ 27,852,726$ 21,694,865$ 20,803,774$ 19,189,155$ 17,868,475$ 15,854,215$ 15,317,308$ Plan Net Pension Liability/(Asset) - Ending (a) - (b) 40,022,461$ 41,915,302$ 40,633,466$ 36,973,028$ 39,983,969$ 39,676,651$ 40,600,470$ 40,062,861$ 33,417,855$ 32,193,450$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 42.37% 38.58% 37.66% 42.97% 35.17% 34.40% 32.09% 30.84% 32.18% 32.24% Covered Payroll 12,308,476$ 12,911,450$ 14,003,571$ 14,515,999$ 16,524,198$ 16,081,945$ 17,751,878$ 18,828,810$ 19,274,948$ 21,588,915$ Plan Net Pension Liability as a Percentage of Covered Payroll 325.16% 324.64% 290.17% 254.71% 241.97% 246.72% 228.71% 212.77% 173.37% 149.12% Notes to Schedule
Benefit Changes
None
Changes of Assumptions
The non-economic actuarial assumptions are based on the results of an actuarial experience study of the California Public Employees' Retirement System for the period 1997-2019 and released in November 2021. The inflation growth rate was reduced from 2.50% to 2.30% with the June 30, 2022 valuation.
Schedule of Changes in the Net Pension Liability and Related Ratios PARS Miscellaneous Plan
Agent Multiple-Employer Defined Benefit Pension Plan
Last 10 Years
119
Item 9.a
CITY OF VACAVILLE
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2025
2025 2024 2023 2022 2021 2020
Measurement Period June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Total Pension Liability
Service Cost -$ -$ -$ -$ -$ -$ Interest 149,256 146,435 148,665 84,991 114,003 120,894 Changes of Benefit Terms - - - - - - Difference Between Expected and Actual Experience 13,184 62,360 12,274 (17,698) 11,924 10,068 Changes of Assumptions - - (33,088) (1,467,724) 618,688 155,275 Benefit Payments, Including Refunds of Employee Contributions (167,058) (163,782) (160,571) (157,422) (154,336) (151,309) Net Change in Total Pension Liability (4,618) 45,013 (32,720) (1,557,853) 590,279 134,928 Total Pension Liability - Beginning 2,378,464 2,333,451 2,366,171 3,924,024 3,333,745 3,198,817 Total Pension Liability - Ending (a) 2,373,846$ 2,378,464$ 2,333,451$ 2,366,171$ 3,924,024$ 3,333,745$ Plan Fiduciary Net Position
Contributions - Employer 356,681$ 345,204$ 177,300$ 177,300$ 177,300$ 177,300$ Contributions - Employee - - - - - - Net Investment Income 98,067 46,025 (69,510) 102,822 14,725 22,307 Administrative Expenses (15,076) (9,837) (9,800) (9,617) (9,800) (9,800) Benefit Payments, Including Refunds of Employee Contributions (167,058) (163,782) (160,571) (157,422) (154,336) (151,309) Other Changes in Fiduciary Net Position - - - - - - Net Change in Fiduciary Net Position 272,614 217,610 (62,581) 113,083 27,889 38,498 Plan Fiduciary Net Position - Beginning 718,796 501,186 563,767 450,684 422,795 384,297 Plan Fiduciary Net Position - Ending (b) 991,410$ 718,796$ 501,186$ 563,767$ 450,684$ 422,795$ Plan Net Pension Liability/(Asset) - Ending (a) - (b) 1,382,436$ 1,659,668$ 1,832,265$ 1,802,404$ 3,473,340$ 2,910,950$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 41.76% 30.22% 21.48% 23.83% 11.49% 12.68% Covered Payroll N/A N/A N/A N/A N/A N/A
Plan Net Pension Liability as a Percentage of Covered Payroll N/A N/A N/A N/A N/A N/A Notes to Schedule
Benefit Changes
None
Changes of Assumptions
The non-economic actuarial assumptions are based on the results of an actuarial experience study of the California Public Employees' Retirement System for the period 1997-2019 and released in November 2021. The inflation growth rate was reduced from 2.50% to 2.30% with the June 30, 2022 valuation. **Historical information is required only for measurement periods for which GASB 68 is applicable.
Fiscal Year 2020 was the first year of implementation, therefore only six years are shown.
PARS Safety Plan
Agent Multiple-Employer Defined Benefit Pension Plan
Last 10 Years**
Schedule of Changes in the Net Pension Liability and Related Ratios 120
Item 9.a
CITY OF VACAVILLE
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2025
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Actuarially Determined Contribution 4,329,780$ 4,028,181$ 3,628,402$ 3,744,851$ 3,886,357$ 3,348,558$ 3,366,989$ 2,988,490$ 2,837,184$ 2,709,376$ Contribution in Relation to the Actuarially Determined Contributions (4,329,780) (4,028,181) (3,628,402) (3,744,851) (3,886,357) (3,348,558) (3,366,989) (2,988,490) (2,837,184) (2,709,376) Contribution Deficiency (Excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Covered Payroll 10,642,912$ 12,308,476$ 12,911,450$ 14,003,571$ 14,515,999$ 16,524,198$ 16,081,945$ 17,751,878$ 18,828,810$ 19,274,948$ Contributions as a Percentage of Covered Payroll 40.68% 32.73% 28.10% 26.74% 26.77% 20.26% 20.94% 16.83% 15.07% 14.06% Notes to Schedule:
Valuation date June 30, 2024
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal cost method
Amortization method Level dollar
Amortization Period 17 years as of 6/30/2024
Asset valuation method Market Value
Inflation 2.30%
Salary increasexs Varies by Entry Age and Service
Payroll growth 2.80%
Investment rate of return 6.50%, net of pension plan investment expenses, including inflation.
Retirement age Consistent with rates used to value "2.7% at age 55" Miscellaneous Public Agency Pension Plans (20 years of service) Mortality Consistent with the Non-Industrial rates used to value Miscellaneous Agency CalPERS pension plans after June 30, 2021.
PARS Miscellaneous Plan
Agent Multiple-Employer Defined Benefit Pension Plan
Last 10 Years
Schedule of Plan Contributions
121
Item 9.a
CITY OF VACAVILLE
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2025
2025 2024 2023 2022 2021 2020 2019
Actuarially Determined Contribution 169,402$ 181,249$ 173,275$ 173,275$ 173,275$ 147,944$ 184,542$ Contribution in relation to the actuarially determined contributions (238,027) (356,681) (345,204) (177,300) (177,300) (177,300) (177,300) Contribution deficiency (excess) (68,625)$ (175,432)$ (171,929)$ (4,025)$ (4,025)$ (29,356)$ 7,242$ Covered payroll N/A N/A N/A N/A N/A N/A N/A
Contributions as a percentage of covered payroll 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Notes to Schedule:
Valuation date June 30, 2024
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal cost method
Amortization method Level dollar
Amortization Period 17 years as of 6/30/2024
Asset valuation method Market Value
Inflation N/A
Salary increases N/A
Payroll growth N/A
Cost of Living Adjustments 2.00%
Investment rate of return 6.5%, net of pension plan investment expenses, including inflation.
Retirement age N/A
Mortality Consistent with the Non-Industrial rates used to value Miscellaneous Agency CalPERS pension plans after June 30, 2021 with 80% MP2020 generational projection
**Historical information is required only for measurement periods which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only seven years are shown.
PARS Safety Plan
Agent Multiple-Employer Defined Benefit Pension Plan
Last 10 Years**
Schedule of Plan Contributions
122
Item 9.a
SUPPLEMENTARY INFORMATION
123
Item 9.a
SPECIAL REVENUE FUNDS:
BUILDING & STREET DEVELOPMENT
To account for funds received to provide for building and street maintenance. A portion of the funds is received from the Highway Users Tax Fund as provided in Section 2107.
COMMUNITY DEVELOPMENT
To account for those funds received from the Federal Governmen t for the purpose of correctin g sub-standard, unsafe residences and eliminatin g building code deficiencies.
MAINTENANCE DISTRICTS
Funds established to account for park maintenance, setback maintenance, and maintenance of median strips for which no taxes have been levied.
COMMUNITY FACILITIES
To account for funds received for the administration of the Community Facilities Districts DEBT SERVICE FUNDS:
ENERGY EFFICIENCY SIEMENS
To account for the collection of energy savings and payment of debt service for the lease issued to fund facility improvements throughout the City.
ENGIE ENERGY CONSERVATION
To account for the payment of debt service for the lease issued to fund the purchase and installation of solar photovoltaic and emergency powe generating equipment.
CAPITAL PROJECT FUNDS:
ASSESSMENT AND IMPROVEMENT DISTRICTS
To account for proceeds from taxes and bonds used to construct public improvements benefiting specific property.
OTHER GOVERNMENTAL FUNDS
Other governmental funds are nonmajor governmental funds reported in the other governmental funds column of the governmental funds financial statements and include:
124
Item 9.a
CITY OF VACAVILLE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
Building and
Street Community Maintenance Community
Development Development Districts Facilities
Assets:
Cash and investments 5,375,301$ 218,479$ 4,382,346$ 837,186$ Receivables:
Taxes 155,896 - - - Accounts 160,092 402,002 - 1,657,590 Loans - 1,609,361 - - Prepaid items - - - - Restricted cash and investments
held by fiscal agent - - - - Due from other funds - - - - Total Assets 5,691,289$ 2,229,842$ 4,382,346$ 2,494,776$ Liabilities, Deferred Inflows of Resources
and Fund Balances:
Liabilities:
Accounts and contract payable 175,854$ 24,313$ 169,659$ 16,520$ Accrued payroll 319,948 11,226 136,130 190,539 Due to other funds - - - - Deposits payable 88,549 898 4,086,956 - Unearned revenue 184,457 23,401 - 559,334 Total Liabilities 768,808 59,838 4,392,745 766,393 Deferred Inflows of Resources:
Unavailable revenue - grants and other 36,534 38,648 - 1,657,590 Total Deferred Inflows of Resources 36,534 38,648 - 1,657,590 Fund Balances (Deficits):
Restricted 4,885,947 2,131,356 - 70,793 Assigned - - - - Unassigned - - (10,399) - Total Fund Balances (Deficits) 4,885,947 2,131,356 (10,399) 70,793 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 5,691,289$ 2,229,842$ 4,382,346$ 2,494,776$ Special Revenue Funds
125
Item 9.a
CITY OF VACAVILLE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
Assets:
Cash and investments
Receivables:
Taxes
Accounts
Loans
Prepaid items
Restricted cash and investments
held by fiscal agent
Due from other funds
Total Assets
Liabilities, Deferred Inflows of Resources
and Fund Balances:
Liabilities:
Accounts and contract payable
Accrued payroll
Due to other funds
Deposits payable
Unearned revenue
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenue - grants and other
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Restricted
Assigned
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Capital Project
Funds
Total
Assessment Energy ENGIE Other
& Improvement Efficiency Energy Governmental
Districts Siemens Conservation Funds
555,358$ -$ -$ 11,368,670$ - - - 155,896 - - - 2,219,684 - - - 1,609,361 - - - - - - 19,506,285 19,506,285 - - - - 555,358$ -$ 19,506,285$ 34,859,896$ -$ -$ -$ 386,346$ - - - 657,843 - 117,675 10,755,535 10,873,210 - - - 4,176,403 - - - 767,192 - 117,675 10,755,535 16,860,994 - - - 1,732,772 - - - 1,732,772 555,358 - 8,750,750 16,394,204 - - - - - (117,675) - (128,074) 555,358 (117,675) 8,750,750 16,266,130 555,358$ -$ 19,506,285$ 34,859,896$ Debt Service Funds
126
Item 9.a
CITY OF VACAVILLE
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
Building and
Street Community Maintenance Community
Development Development Districts Facilities
Revenues:
Taxes and fees 441,598$ -$ 4,629,341$ 7,829,649$ Licenses and permits 2,696,320 - - - Investment income 152,822 14,633 130,240 52,022 Intergovernmental 849,760 1,741,194 - - Charges for services 4,785,145 - - - Rents and royalties - 20,282 - - Other 6,454 - - - Total Revenues 8,932,099 1,776,109 4,759,581 7,881,671 Expenditures:
Current:
General government 5,629,818 - - 411,385 Public safety - - - 1,776,162 Public works 4,285,012 - - - Community services - 656,370 6,134,026 - Capital outlay 619,696 - - - Debt service:
Principal - SBITA 112,841 - 772 - Principal - financed - - - - Interest and fiscal charges - - - 243,706 Total Expenditures 10,647,367 656,370 6,134,798 2,431,253 Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,715,268) 1,119,739 (1,375,217) 5,450,418 Other Financing Sources (Uses):
Transfers in 331,748 - 1,641,871 1,880,612 Transfers out (207,449) (442,167) (137,215) (8,477,071) Subscription based information technology arrangements (SBITAs) 536,081 - 772 - Issuance of debt and loans - - - - Total Other Financing Sources (Uses) 660,380 (442,167) 1,505,428 (6,596,459) Net Change in Fund Balances (1,054,888) 677,572 130,211 (1,146,041) Fund Balances, Beginning of Year 5,940,835 1,453,784 (140,610) 1,216,834 Fund Balances, End of Year 4,885,947$ 2,131,356$ (10,399)$ 70,793$ Special Revenue Funds
127
Item 9.a
CITY OF VACAVILLE
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
Revenues:
Taxes and fees
Licenses and permits
Investment income
Intergovernmental
Charges for services
Rents and royalties
Other
Total Revenues
Expenditures:
Current:
General government
Public safety
Public works
Community services
Capital outlay
Debt service:
Principal - SBITA
Principal - financed
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Subscription based information technology arrangements (SBITAs) Issuance of debt and loans
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Capital Project
Total
Assessment Energy Engie Other
& Improvement Efficiency Energy Governmental
Districts Siemens Conservation Funds
-$ -$ -$ 12,900,588$ - - - 2,696,320 16,533 - - 366,250 - - - 2,590,954 - - - 4,785,145 - - - 20,282 - - - 6,454 16,533 - - 23,365,993 - - - 6,041,203 - - - 1,776,162 - - - 4,285,012 - - - 6,790,396 - - - 619,696 - - - 113,613 - 692,422 - 692,422 - 49,229 838,461 1,131,396 - 741,651 838,461 21,449,900 16,533 (741,651) (838,461) 1,916,093 - 811,651 - 4,665,882 - - (8,106,659) (17,370,561) - - - 536,853 - - 838,461 838,461 - 811,651 (7,268,198) (11,329,365) 16,533 70,000 (8,106,659) (9,413,272) 538,825 (187,675) 16,857,409 25,679,402 555,358$ (117,675)$ 8,750,750$ 16,266,130$ Debt Service Funds
128
Item 9.a
CITY OF VACAVILLE
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
BUILDING AND STREET DEVELOPMENT
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes and fees 363,305$ 363,305$ 441,598$ 78,293$ Licenses and permits 2,005,909 2,005,909 2,696,320 690,411 Investment income 41,733 41,733 152,822 111,089 Intergovernmental - - 849,760 849,760 Charges for services 3,565,575 3,565,575 4,785,145 1,219,570 Other 6,134 6,134 6,454 320 Total Revenues 5,982,656 5,982,656 8,932,099 2,949,443 Expenditures:
Current:
General government 6,100,136 6,374,956 5,629,818 745,138 Public works 4,259,954 4,278,798 4,285,012 (6,214) Capital outlay - - 619,696 (619,696) Debt Service:
Principal - SBITA - - 112,841 (112,841) Total Expenditures 10,360,090 10,653,754 10,647,367 6,387 Excess (deficiency) of revenues over (under) expenditures (4,377,434) (4,671,098) (1,715,268) 2,955,830 Other Financing Sources (Uses)
Transfers in 250,000 250,000 331,748 81,748 Transfers out (240,074) (240,074) (207,449) 32,625 Subscription based information technology arrangements (SBITAs) 536,081 Total Other Financing Sources (Uses) 9,926 9,926 660,380 114,373 Net Change in Fund Balances (4,367,508) (4,661,172) (1,054,888) 3,070,203 Fund Balances, Beginning of Year 5,940,835 5,940,835 5,940,835 - Fund Balances, End of Year 1,573,327$ 1,279,663$ 4,885,947$ 3,070,203$ Budget Amounts
129
Item 9.a
CITY OF VACAVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Investment income -$ -$ 14,633$ 14,633$ Intergovernmental 1,021,981 1,768,043 1,741,194 (26,849) Rents and royalties - 19,744 20,282 538 Total Revenues 1,021,981 1,787,787 1,776,109 (11,678) Expenditures:
Community services 491,235 471,329 656,370 (185,041) Total Expenditures 491,235 471,329 656,370 (185,041) Excess (Deficiency) of Revenues Over (Under) Expenditures 530,746 1,316,458 1,119,739 (196,719) Other Financing Sources (Uses):
Transfers out - (399,525) (442,167) (42,642) Total Other Financing Sources (Uses) - (399,525) (442,167) (42,642) Net Change in Fund Balance 530,746 916,933 677,572 (239,361) Fund Balances, Beginning of Year 1,453,784 1,453,784 1,453,784 - Fund Balances, End of Year 1,984,530$ 2,370,717$ 2,131,356$ (239,361)$ Budget Amounts
130
Item 9.a
CITY OF VACAVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
MAINTENANCE DISTRICTS
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Taxes and fees 4,614,439$ 4,614,439$ 4,629,341$ 14,902$ Investment income - - 130,240 130,240 Total Revenues 4,614,439 4,614,439 4,759,581 145,142 Expenditures:
Current:
Community services 6,443,988 6,443,988 6,134,026 309,962 Debt Service:
Principal - SBITA - - 772 (772) Total Expenditures 6,443,988 6,443,988 6,134,798 309,190 Excess (deficiency) of revenues over (under) expenditures (1,829,549) (1,829,549) (1,375,217) 454,332 Other Financing Sources (Uses)
Transfers in 1,641,871 1,641,871 1,641,871 - Transfers out (137,215) (137,215) (137,215) - Subscription based information technology arrangements (SBITAs) - - 772 772 Total Other Financing Sources (Uses) 1,504,656 1,504,656 1,505,428 772 Net change in fund balance (324,893) (324,893) 130,211 455,104 Fund Balances, Beginning of Year (140,610) (140,610) (140,610) - Fund Balances, End of Year (465,503)$ (465,503)$ (10,399)$ 455,104$ Budget Amounts
131
Item 9.a
CITY OF VACAVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
COMMUNITY FACILITIES
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Taxes and fees -$ -$ 7,829,649$ 7,829,649$ Interest Income - - 52,022 52,022 Total Revenues - - 7,881,671 7,881,671 Expenditures:
Current:
General government - - 411,385 (411,385) Public safety 2,067,438 2,067,438 1,776,162 291,276 Debt service:
Interest and fiscal charges - - 243,706 (243,706) Total Expenditures 2,067,438 2,067,438 2,431,253 (243,706) Excess (deficiency) of revenues over (under) expenditures (2,067,438) (2,067,438) 5,450,418 7,637,965 Other Financing Sources (Uses)
Transfers in 307,243 1,745,957 1,880,612 134,655 Transfers out (8,219,924) (8,219,924) (8,477,071) (257,147) Total Other Financing Sources (Uses) (7,912,681) (6,473,967) (6,596,459) (122,492) Net change in fund balance (9,980,119) (8,541,405) (1,146,041) 7,515,473 Fund Balances, Beginning of Year 1,216,834 1,216,834 1,216,834 - Fund Balances, End of Year (8,763,285)$ (7,324,571)$ 70,793$ 7,515,473$ Budget Amounts
132
Item 9.a
CENTRAL SERVICES
To account for all the centralized purchases which are in turn charged back to the operating department upon usage. The activity includes Central Stores, Fuel Station and Garage, and Engineering Services.
VEHICLE REPLACEMENT
To account for the acquisition of replacement equipment. Charges are levied to departments on a straight line replacement basis in order to ensure funds are available when the equipment becomes obsolete.
TECHNOLOGY REPLACEMENT
To account for the acquisition of techology equipment and printer repalcements. Charges are levied to departments on a straight line replacement basis in order to ensure funds are available when the equipment becomes obsolete.
INSURANCE
To account for premium costs and self-insured claim losses for the following risks: property-related, workers' compensation, unemployment, vehicle-related, and general liability.
EMPLOYEE BENEFITS
To account for sick and vacation leave payoffs related to employee retirements and other postemployment benefits (OPEB) that are held by California Employers' Retiree Benefit Trust (CERBT) Fund in an irrevocable trust established by PERS to pre-fund OPEB and payments made to active employees as part of the City's vacation and sick leave buyback program.
INTERNAL SERVICE FUNDS
Internal Service Funds are used to finance and account for goods and special activities and services performed by a designated department for other departments in the City on a cost reimbursement basis.
The concept of major funds introduced by GASB Statement 34 does not extend to internal service funds because they do not do business with outside parties. GASB Statement 34 requires that for the Statement of Activities, the net revenues or expenses of each internal service fund be eliminated by netting them against the operations of the other City departments which generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position.
However, internal service funds are presented separately in the fund financial statements, including the funds below. 133
Item 9.a
CITY OF VACAVILLE
COMBINING STATEMENTS OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2025
Central Vehicle Technology Employee
Services Replacement Replacement Insurance Benefits Total Assets:
Cash and investments 498,413$ 4,203,179$ 709,509$ 7,734,789$ 21,475$ 13,167,365$ Receivables:
Interest - 8,539 - - - 8,539 Accounts - - - - 791,401 791,401 Due from other funds - - - - - - Employee benefits - - - - - - Inventories - supplies 220,154 - - - - 220,154 Prepaid expenses 4,680 3,584,627 101,972 - - 3,691,279 Restricted cash and investments - 2,953,751 - - - 2,953,751 Deposits - - - 47,121 - 47,121 Capital assets -
net of accumulated depreciation/amortization 76,715 13,359,665 1,518,088 - - 14,954,468 Total Assets 799,962 24,109,761 2,329,569 7,781,910 812,876 35,834,078 Deferred Outflows of Resources:
Deferred outflows related to pension 1,777,373 - - 444,336 - 2,221,709 Deferred outflows related to OPEB 1,842,411 - - 275,302 - 2,117,713 Total Deferred Outflow of Resources 3,619,784 - - 719,638 - 4,339,422 Liabilities:
Current:
Accounts and contract payable 266,414 292,979 224,747 8,156 55,554 847,850 Accrued payroll 147,291 - - 37,534 422,185 607,010 Advances from other funds - 849,302 - - - 849,302 Interest payable - 66,962 9,570 - - 76,532 Employee benefits payable - - - - - - Due to other funds - - - - - - Deposits payable - - - 4,054 - 4,054 Claims payable - due within one year - - - 3,965,000 - 3,965,000 Lease payable - due within one year 7,893 - 118,732 - - 126,625 SBITA payable - due within one year - - 577,487 - - 577,487 Long term debt - due within one year - 400,572 - - - 400,572 Total Current Liabilities 421,598 1,609,815 930,536 4,014,744 477,739 7,454,432 Noncurrent:
Net Pension liability 8,847,916 - - 2,211,980 - 11,059,896 Net OPEB liability 3,825,383 571,609 4,396,992 Claims payable - due in more than a year - - - 5,167,000 - 5,167,000 Lease payable - due in more than a year - - 247,103 - - 247,103 SBITA payable - due in more than a year - - 39,775 - - 39,775 Long term debt - due in more than a year - 3,260,308 - - - 3,260,308 Total Noncurrent Liabilities 12,673,299 3,260,308 286,878 7,950,589 - 24,171,074 Deferred Inflows of Resources
Deferred inflows related to pension 4,272 - - 1,067 - 5,339 Deferred inflows related to OPEB 340,333 - - 50,852 - 391,185 Total Deferred Inflows of Resources 344,605 - - 51,919 - 396,524 Net Position:
Net investment in capital assets 68,822 9,698,785 534,991 - - 10,302,598 Restricted for capital acquisition - 2,953,751 - - - 2,953,751 Unrestricted (9,088,578) 6,587,102 577,164 (3,515,704) 335,137 (5,104,879) Total Net Position (9,019,756)$ 19,239,638$ 1,112,155$ (3,515,704)$ 335,137$ 8,151,470$ Governmental Activities - Internal Service Funds
134
Item 9.a
CITY OF VACAVILLE
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Central Vehicle Technology Employee
Services Replacement Replacement Insurance Benefits Totals Operating Revenues:
Internal service charges 5,800,722$ 700,906$ 1,915,084$ 8,773,180$ 750,000$ 17,939,892$ Total Operating Revenues 5,800,722 700,906 1,915,084 8,773,180 750,000 17,939,892 Operating Expenses:
Internal service expenses 6,394,484 20,817 1,552,283 10,262,574 856,075 19,086,233 Depreciation/amortization 18,219 2,741,063 858,074 - - 3,617,356 Total Operating Expenses 6,412,703 2,761,880 2,410,357 10,262,574 856,075 22,703,589 Operating Income (Loss) (611,981) (2,060,974) (495,273) (1,489,394) (106,075) (4,763,697) Nonoperating Revenues (Expenses):
Interest revenue 17,299 138,628 21,160 140,186 10,827 328,100 Interest expense (24) (108,028) (34,952) - - (143,004) Gain (Loss) on disposal of capital assets - (19,248) - - - (19,248) Other - 70,132 - - - 70,132 Total Nonoperating
Revenues (Expenses) 17,275 81,484 (13,792) 140,186 10,827 235,980 Income (Loss) Before Transfers (594,706) (1,979,490) (509,065) (1,349,208) (95,248) (4,527,717) Transfers:
Transfers in 70,000 2,539,917 - 231,340 - 2,841,257 Transfers out (4,993) - (2,075) - - (7,068) Total Transfers 65,007 2,539,917 (2,075) 231,340 - 2,834,189 Changes in Net Position (529,699) 560,427 (511,140) (1,117,868) (95,248) (1,693,528) Net Position:
Net position, beginning of year as previously reported (8,490,057) 18,429,243 1,623,295 (2,397,836) 430,385 9,595,030 Error Correction (Note 21) - 249,968 - - - 249,968 Beginning of Year (8,490,057) 18,679,211 1,623,295 (2,397,836) 430,385 9,844,998 End of Fiscal Year (9,019,756)$ 19,239,638$ 1,112,155$ (3,515,704)$ 335,137$ 8,151,470$ Governmental Activities - Internal Service Funds
135
Item 9.a
CITY OF VACAVILLE
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Central Vehicle Technology Employee
Services Replacement Replacement Insurance Benefits Total Cash Flows from Operating Activities:
Cash received from customers and users 5,815,003$ 700,906$ 1,915,084$ 8,775,180$ 750,000$ 17,956,173$ Cash paid to suppliers for goods and services (4,470,208) 184,735 (1,396,733) (6,597,602) 18,082 (12,261,726) Cash paid to employees for services (1,600,482) - - (994,884) (1,951,849) (4,547,215) Claims paid - - - (1,011,184) - (1,011,184) Net Cash Provided (Used) by Operating Activities (255,687) 885,641 518,351 171,510 (1,183,767) 136,048 Cash Flow from Non-Capital
Financing Activities:
Due to/(from) other funds - - - - - - Advances from other funds (Payments on advances from other funds) - (113,569) - - - (113,569) Cash transfers in 70,000 2,539,917 - 231,340 - 2,841,257 Cash transfers out (4,993) - (2,075) - - (7,068) Settlement - 70,132 - - - 70,132 Net Cash Provided (Used) by 65,007 2,496,480 (2,075) 231,340 - 2,790,752 Non-Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Net proceeds from issuance of long-term debt - 2,960,000 - - - 2,960,000 Acquisition of capital assets (15,463) (5,955,059) (299,932) - - (6,270,454) Proceeds from sale of capital assets - 45,543 - - - 45,543 Principal paid on leased assets and subscriptions (7,878) - (583,386) - - (591,264) Principal paid on financed debt - (379,012) - - - (379,012) Interest paid (24) (63,101) (42,535) - - (105,660) Net Cash Used by
Capital and Related Financing Activities (23,365) (3,391,629) (925,853) - - (4,340,847) CASH FLOWS FROM INVESTING ACTIVITIES:
Interest revenue 17,299 130,089 21,160 140,112 10,827 319,487 Net cash provided by investing activities 17,299 130,089 21,160 140,112 10,827 319,487 Net Increase (Decrease) in Cash
and Cash Equivalents (196,746) 120,581 (388,417) 542,962 (1,172,940) (1,094,560) Cash and Cash Equivalents at Beginning of Year 695,159 7,036,349 1,097,926 7,191,827 1,194,415 17,215,676 Cash and investments 498,413 4,203,179 709,509 7,734,789 21,475 13,167,365 Restricted cash and investments - 2,953,751 - - - 2,953,751 Cash and Cash Equivalents at End of Year 498,413 7,156,930 709,509 7,734,789 21,475 16,121,116 Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating Income (Loss) (611,981)$ (2,060,974)$ (495,273)$ (1,489,394)$ (106,075)$ (4,763,697)$ Adjustments to Reconcile Operating Income (Loss)
Net Cash Provided (Used) by Operating Activities:
Depreciation/amortization 18,219 2,741,063 858,074 - - 3,617,356 Changes in assets and liabilities:
Decrease in accounts receivable 14,281 - - 2,000 (791,401) (775,120) Decrease (increase) in prepaid expenses - - (7,350) - - (7,350) Decrease (increase) in inventories - supplies 3,642 - - - - 3,642 Decrease (increase) in deposits - - - 14,965 - 14,965 Decrease (increase) in deferred outflows of resources - pension 562,953 - - 140,736 - 703,689 Decrease (increase) in deferred outflows of resources - OPEB (524,919) - - (78,437) (603,356) Increase (decrease) in accounts and contracts payable 116,240 205,552 162,900 (25,121) 18,082 477,653 Increase (decrease) in accrued payroll 842 - - 4,959 65,703 71,504 Increase (decrease) in employee benefits payable - - - - (370,076) (370,076) Increase (decrease) in pension liability (285,821) - - (71,454) - (357,275) Increase (decrease) in OPEB liability 589,273 - - 88,053 - 677,326 Increase (decrease) in deferred inflow of resources - pension (25,390) - - (6,348) - (31,738) Increase (decrease) in deferred inflow of resources - OPEB (113,026) - - (16,889) - (129,915) Increase (decrease) in claims payable - - - 1,608,440 - 1,608,440 Total Adjustments 356,294 2,946,615 1,013,624 1,660,904 (1,077,692) 4,899,745 Net Cash Provided (Used) by
Operating Activities (255,687)$ 885,641$ 518,351$ 171,510$ (1,183,767)$ 136,048$ Non-Cash Investing, Capital, and Financing Activities:
Gain (loss) on disposition of capital assets -$ (19,248)$ -$ -$ -$ (19,248)$ Issuance of new SBITA - - 14,023 - - 14,023$ Early Termination of SBITA - (262,638) - (3,244) - (265,882)$ Governmental Activities - Internal Service Funds
136
Item 9.a
CUSTODIAL FUND COMBINING STATEMENTS
137
Item 9.a
CITY OF VACAVILLE
COMBINING STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2025
Solano Transportation Community Action Benefit District and Authority Partnership Reimbursement Fund
Custodial Funds Custodial Funds Custodial Funds
Assets:
Current assets:
Cash and investments 8,933,069$ 5,992,203$ 13,342,795$ Receivables:
Accounts, net allowance - 270,803 - Total current assets 8,933,069 6,263,006 13,342,795 Noncurrent assets:
Restricted cash and investments - - - Capital assets, net of accumulated amortization - 153,554 - Total noncurrent assets - 153,554 - Total Assets 8,933,069 6,416,560 13,342,795 Liabilities:
Current liabilities:
Accounts payable and contracts payable - 1,047,262 518,000 Deposits payable - - 12,824,795 Unearned revenue - 4,904,487 - SBITA payable - due within one year - 112,452 - Long-term liabilities - due within one year - - - - 6,064,201 13,342,795 Noncurrent liabilities:
SBITA payable - due in more than one year - 19,061 - Long-term liabilities - due in more than a year - - - Total Liabilities - 6,083,262 13,342,795 Net Position - End of the Year 8,933,069$ 333,298$ -$ 138
Item 9.a
CITY OF VACAVILLE
COMBINING STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2025
Assets:
Current assets:
Cash and investments
Receivables:
Accounts, net allowance
Total current assets
Noncurrent assets:
Restricted cash and investments
Capital assets, net of accumulated amortization
Total noncurrent assets
Total Assets
Liabilities:
Current liabilities:
Accounts payable and contracts payable
Deposits payable
Unearned revenue
SBITA payable - due within one year
Long-term liabilities - due within one year
Noncurrent liabilities:
SBITA payable - due in more than one year
Long-term liabilities - due in more than a year
Total Liabilities
Net Position - End of the Year
Special Bond Total
Assessments Funds Custodial
Custodial Funds Custodial Funds Funds
750,755$ -$ 29,018,822$
- - 270,803
750,755 - 29,289,625
192,726 1,998,263 2,190,989
- - 153,554
192,726 1,998,263 2,344,543
943,481 1,998,263 31,634,168
- - 1,565,262
- - 12,824,795
- - 4,904,487
- - 112,452
257,906 - 257,906
257,906 - 19,664,902
- - 19,061
3,103,813 - 3,103,813
3,361,719 - 22,787,776
(2,418,238)$ 1,998,263$ 8,846,392$
139
Item 9.a
CITY OF VACAVILLE
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Solano Transportation Community Action Benefit District and Authority Partnership Reimbursement Fund
Custodial Funds Custodial Funds Custodial Funds
Additions:
Investment income -$ 38,096$ -$ Deposits received 47,244,797 - - Issuance of debt and loans - - - Program revenue - - - Taxes & fees - 34,541 - Grants and contributions - 3,456,644 Other - - - Total Additions: 47,244,797 3,529,281 - Deductions:
Administrative and general operations - 573,921 - Program expenses - 2,984,295 - Other expenses 48,555,899 - - Fiscal fines and other fees - - Interest expense - - - Total Deductions: 48,555,899 3,558,216 - Change in Net Position (1,311,102) (28,935) - Beginning of year 10,244,171 362,233 - Net Position - End of the Year 8,933,069$ 333,298$ -$ 140
Item 9.a
CITY OF VACAVILLE
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Additions:
Investment income
Deposits received
Issuance of debt and loans
Program revenue
Taxes & fees
Grants and contributions
Other
Total Additions:
Deductions:
Administrative and general operations
Program expenses
Other expenses
Fiscal fines and other fees
Interest expense
Total Deductions:
Change in Net Position
Beginning of year
Net Position - End of the Year
Special Bond Total
Assessments Funds Custodial
Custodial Funds Custodial Funds Funds
16,040$ 301,529$ 355,665$
- - 47,244,797
- - -
- - -
379,183 - 413,724
- - 3,456,644
- - -
395,223 301,529 51,470,830
- - 573,921
- - 2,984,295
- - 48,555,899
16,731 - 16,731
111,627 - 111,627
128,358 - 52,242,473
266,865 301,529 (771,643)
(2,685,103) 1,696,734 9,618,035
(2,418,238)$ 1,998,263$ 8,846,392$
141
Item 9.a
STATISTICAL SECTION
This part of the City of Vacaville's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health.
Contents Page
Financial Trends 143
These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time.
Revenue Capacity 149
These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax.
Debt Capacity 153
These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future.
Demographic and Economic Information 157
These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place.
Operating Information 159
These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.
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Governmental activities
Net investment in capital assets 492,854$ 461,628$ 469,699$ 454,580$ 456,266$ 449,819$ 440,786$ 441,258$ 428,611$ 419,176$ Restricted 151,784 140,963 119,079 104,134 102,152 102,530 76,249 77,301 78,936 76,780 Unrestricted (131,935) (114,621) (110,433) (121,773) (148,855) (168,602) (148,236) (166,324) (131,398) (131,083) Total governmental activities net position 512,703 487,970 478,345 436,941 409,563 383,747 368,799 352,235 376,149 364,873 Business-type activities
Net investment in capital assets 272,005 268,037 246,489 236,213 234,578 231,479 225,000 215,531 205,549 202,700 Restricted 7,106 7,106 7,106 7,106 7,106 7,106 7,106 7,105 - - Unrestricted 147,926 135,408 135,653 129,859 126,145 111,581 96,333 94,934 111,075 99,939 Total business-type activities net position 427,037 410,551 389,248 373,178 367,829 350,166 328,439 317,570 316,624 302,639 Primary government
Net investment in capital assets 764,859 729,665 716,188 690,793 690,844 681,298 665,786 656,789 634,160 621,876 Restricted 158,890 148,069 126,185 11,140 109,258 109,636 83,355 84,406 78,936 76,780 Unrestricted 15,991 20,787 25,220 8,086 (22,710) (57,021) (51,903) (71,390) (20,323) (31,144) Total primary government net position 939,740$ 898,521$ 867,593$ 810,119$ 777,392$ 733,913$ 697,238$ 669,805$ 692,773$ 667,512$ The City of Vacaville implemented GASB 34 for the fiscal year ended June 30, 2003.
Schedule 1
CITY OF VACAVILLE
Net Position by Component,
Last Ten Fiscal Years
(accrual basis of accounting)
(expressed in thousands of dollars)
Fiscal Year
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Expenses
Governmental activities 228,964$ 219,584$ 196,665$ 149,216$ 158,253$ 148,851$ 139,209$ 137,621$ 125,764$ 115,864$ Business-type 73,257 68,476 71,441 60,936 62,325 62,274 62,333 60,216 54,595 51,419 Total primary government expenses 302,221 288,060 268,106 210,152 220,578 211,125 201,542 197,837 180,359 167,283 Program Revenues
Governmental activities 109,983 93,711 112,685 63,301 80,305 59,477 55,279 64,445 54,702 69,483 Business-type 83,744 84,048 83,584 71,662 79,759 75,831 67,311 65,924 73,738 67,197 Total primary government program revenues 193,727 177,759 196,269 134,963 160,064 135,308 122,590 130,369 128,440 136,680 Net (Expense)/Revenue
Governmental activities (118,981) (125,873) (83,980) (85,915) (77,948) (89,374) (83,930) (73,176) (71,062) (46,381) Business-type 10,487 15,572 12,143 10,726 17,434 13,557 4,978 5,708 19,143 15,778 Total primary government net expense (108,494) (110,301) (71,837) (75,189) (60,514) (75,817) (78,952) (67,468) (51,919) (30,603) General Revenues and Other Changes in Net Position
Governmental activities 150,995 133,658 125,384 113,292 107,203 104,322 100,494 86,550 78,355 76,217 Business-type 6,844 5,731 3,927 (5,377) 229 8,170 5,891 676 (1,174) 4,307 Total primary government 157,839 139,389 129,311 107,915 107,432 112,492 106,385 87,226 77,181 80,524 Changes in Net Position
Governmental activities 32,014 7,785 41,404 27,377 29,255 14,948 16,564 13,374 7,293 29,836 Business-type 17,331 21,303 16,070 5,349 17,663 21,727 10,869 6,384 17,969 20,085 Total primary government 49,345$ 29,088 $ 57,474 $ 32,726 $ 46,918 $ 36,675 $ 27,433 $ 19,758 $ 25,262 $ 49,921 $ The City of Vacaville implemented GASB 34 for the fiscal year ended June 30, 2003.
Schedule 2
CITY OF VACAVILLE
Changes in Net Position, Primary Government
Last Ten Fiscal Years
(accrual basis of accounting)
(expressed in thousands of dollars)
Fiscal Year
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Expenses
General Government 28,189$ 26,760$ 24,630$ 15,918$ 13,839$ 16,155$ 12,775$ 12,840$ 14,849$ 11,350$ Public Safety 107,321 94,818 86,175 69,027 79,380 77,785 73,903 67,543 61,505 58,052 Public Works 40,867 51,452 37,395 27,413 30,503 20,158 22,404 28,104 22,247 19,989 Community Services 22,415 20,638 19,410 17,634 15,198 17,033 14,883 14,416 13,567 12,507 Housing 28,742 25,320 28,635 18,882 18,817 17,040 14,692 14,206 13,019 13,303 Redevelopment - - - - - - - - - - Interest on long-term debt 1,430 596 420 342 516 680 552 512 577 663 Total governmental activities expenses 228,964 219,584 196,665 149,216 158,253 148,851 139,209 137,621 125,764 115,864 Program Revenues
Charges for services:
General Government 6,718 5,284 6,434 4,375 5,780 6,432 4,949 3,859 4,442 4,893 Public Safety 8,679 8,482 7,185 7,845 6,836 6,397 5,514 5,792 4,978 4,334 Public Works 3,382 4,530 4,522 3,838 3,964 1,206 2,566 1,889 1,383 991 Community Services 9,959 9,222 9,331 7,986 5,633 5,679 7,993 7,229 6,607 6,340 Housing 41 37 31 16 12 4 10 21 22 34 Operating grants and contributions 52,524 40,456 37,210 26,874 25,494 20,466 18,870 17,282 15,828 18,785 Capital grants and contributions 28,680 25,700 47,972 12,367 32,586 19,293 15,377 28,373 21,442 34,106 Total governmental activities program revenues 109,983 93,711 112,685 63,301 80,305 59,477 55,279 64,445 54,702 69,483 Net (Expense)/Revenue (118,981) (125,873) (83,980) (85,915) (77,948) (89,374) (83,930) (73,176) (71,062) (46,381) General Revenues and Other Changes in Net Position
Taxes
Property taxes 65,033 60,514 59,185 56,498 50,141 50,543 47,971 47,387 41,210 37,869 Sales taxes 57,259 49,941 51,958 50,561 46,319 38,932 39,272 27,234 24,855 26,632 Franchise taxes 5,677 5,669 5,551 5,303 5,160 4,898 4,536 4,262 4,366 4,045 Transient lodging tax 2,006 2,052 1,983 2,163 1,446 1,685 2,015 1,835 1,678 1,688 Business license tax 440 430 399 407 355 279 287 287 291 300 Excise tax 2,971 2,924 2,853 2,890 2,676 2,590 2,671 2,694 2,572 2,617 Gasoline tax - - - - - - - - - - Vehicle license taxes - - - - - - - - - - Investment income 11,248 8,347 1,410 (5,356) 221 5,756 3,801 1,244 887 967 Unrestricted capital contributions - - - - - - - - - Special Item - gain on dissolution of Redevelopment - - - - - - - - 1,582 Miscellaneous 1,270 609 2,239 943 503 613 534 878 433 858 Transfers 5,091 3,172 (194) (117) 382 (974) (593) 729 2,063 (341) Total governmental activities 150,995 133,658 125,384 113,292 107,203 104,322 100,494 86,550 78,355 76,217 Changes in Net Position 32,014 $ 7,785 $ 41,404 $ 27,377 $ 29,255 $ 14,948 $ 16,564 $ 13,374 $ 7,293 $ 29,836 $ The City of Vacaville implemented GASB 34 for the fiscal year ended June 30, 2003.
Starting 2015, gasoline tax and unrestricted capital contributions are reported as grants and contributions under Program Revenues instead of General Revenues due to restrictions placed on the use of these resources.
Fiscal Year
(expressed in thousands of dollars)
CITY OF VACAVILLE
Schedule 2a
(accrual basis of accounting)
Last Ten Fiscal Years
Changes in Net Position, Governmental Activities
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Expenses
Sewer 40,945 $ 38,361 $ 39,949 $ 34,272 $ 35,569 $ 36,042 $ 35,076 $ 34,301 $ 32,908 $ 29,548 $ Water 26,690 25,892 27,722 22,763 23,301 22,524 23,425 21,789 18,021 18,318 Transit 5,622 4,223 3,770 3,901 3,455 3,708 3,832 4,126 3,666 3,553 Total business-type activities expenses 73,257 68,476 71,441 60,936 62,325 62,274 62,333 60,216 54,595 51,419 Program Revenues
Charges for services:
Sewer 37,433 35,825 35,747 35,145 34,571 33,951 34,146 33,655 33,807 33,680 Water 25,347 24,049 23,777 23,673 24,573 23,092 20,890 20,156 18,487 15,979 Transit 313 284 190 89 65 318 403 447 441 453 Operating grants and contributions 3,998 4,710 3,329 2,383 2,459 2,521 2,196 2,181 1,903 1,857 Capital grants and contributions 16,653 19,180 20,541 10,372 18,091 15,949 9,676 9,485 19,100 15,228 Total business-type activities program revenues 83,744 84,048 83,584 71,662 79,759 75,831 67,311 65,924 73,738 67,197 Net (Expense)/Revenue 10,487 15,572 12,143 10,726 17,434 13,557 4,978 5,708 19,143 15,778 General Revenues and Other Changes in Net Position
Taxes
Property taxes 84 83 85 83 90 111 98 99 98 96 Investment income 9,895 7,924 1,323 (6,936) (580) 5,898 4,009 857 90 769 Unrestricted capital contributions - - - - - - - - - - Miscellaneous 1,956 896 2,325 1,359 1,101 1,187 1,192 449 701 3,101 Transfers (5,091) (3,172) 194 117 (382) 974 592 (729) (2,063) 341 Total business-type activities 6,844 5,731 3,927 (5,377) 229 8,170 5,891 676 (1,174) 4,307 Changes in Net Position 17,331 $ 21,303 $ 16,070 $ 5,349 $ 17,663 $ 21,727 $ 10,869 $ 6,384 $ 17,969 $ 20,085 $ The City of Vacaville implemented GASB 34 for the fiscal year ended June 30, 2003.
Starting 2015, unrestricted capital contributions are reported as grants and contributions under Program Revenues instead of General Revenues due to restrictions placed on the use of these resources.
Fiscal Year
(expressed in thousands of dollars)
(accrual basis of accounting)
Schedule 2b
CITY OF VACAVILLE
Changes in Net Position, Business-Type Activities
Last Ten Fiscal Years
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General Fund
Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unreserved - - - - - - - - - - Nonspendable 1,442 1,506 1,685 1,920 611 552 10 964 1,928 2,862 Restricted - - - - - 439 2,394 - - - Committed - - - - - - - - - - Assigned 40,066 28,079 31,321 28,942 39,995 31,064 23,644 11,463 8,282 3,279 Unassigned 38,326 50,849 49,954 49,740 30,009 29,133 28,408 27,572 22,814 24,161 Total general fund 79,834$ 80,434$ 82,960$ 80,602$ 70,615$ 61,188$ 54,456$ 39,999$ 33,024$ 30,302$ All Other Governmental Funds
Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unreserved, reported in: - -
Special revenue funds - - - - - - - - - - Capital projects funds - - - - - - - - - - Debt service funds - - - - - - - - - - Nonspendable - - - - - - - - - - Restricted 149,064 140,963 119,079 105,077 102,640 90,271 83,490 77,079 78,439 76,777 Committed - - - - - - - - - - Assigned 5,615 2,332 3,521 357 362 411 1,483 1,221 501 1,098 Unassigned (8,033) (2,024) (1,782) (1,919) (568) (767) (546) (411) (302) (271) Total all other governmental funds 146,646$ 141,271$ 120,818$ 103,515$ 102,434$ 89,915$ 84,427$ 77,889$ 78,638$ 77,604$ The City of Vacaville implemented GASB 54 for the fiscal year ended June 30, 2011, which has revised classifications of fund balances.
Fiscal Year
(modified accrual basis of accounting)
(expressed in thousands of dollars)
Schedule 3
CITY OF VACAVILLE
Fund Balances, Governmental Funds,
Last Ten Fiscal Years
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Revenues
Taxes and fees 138,676$ 126,132$ 130,309$ 122,961$ 111,043$ 102,843$ 111,508$ 94,125$ 87,932$ 87,142$ Licenses and permits 3,028 2,326 2,906 2,055 2,768 2,243 1,872 1,734 1,764 2,028 Investment income 11,063 8,185 1,346 (5,399) 139 5,756 3,870 1,322 954 975 Intergovernmental 57,717 54,491 39,110 26,308 28,637 24,858 21,963 38,827 26,258 27,985 Charges for services 20,142 20,066 19,197 16,861 14,174 12,767 14,453 13,047 12,119 11,179 Rents and royalties 515 578 582 402 532 441 460 444 390 540 Development fees 14,375 10,345 18,146 8,011 19,841 12,230 - - - - Fines, penalties and forfeitures 432 349 328 401 445 283 403 386 397 310 AB 1484 County distribution - - - - - - - - - - Other 646 305 1,353 262 367 468 299 380 443 826 Total revenues 246,594 222,777 213,277 171,862 177,946 161,889 154,828 150,265 130,257 130,985 Expenditures
General Government 25,499 23,246 22,786 16,982 16,663 13,748 12,681 11,054 13,513 11,129 Public Safety 99,901 92,141 86,772 78,065 73,068 70,039 66,614 62,189 57,272 53,059 Public Works 16,046 16,641 14,136 12,690 9,884 9,927 8,997 8,585 8,142 7,107 Community Services 21,365 20,073 18,988 17,639 14,192 14,552 14,231 13,614 13,121 11,782 Housing 28,412 25,063 21,999 19,204 17,897 16,607 14,740 13,905 13,247 13,168 Capital Outlay 50,453 44,164 24,258 12,785 16,143 19,745 13,893 30,560 21,996 16,113 Debt service:
Principal 3,703 2,817 1,802 985 5,200 1,157 969 888 911 2,217 Interest and fiscal charges 600 448 372 348 548 615 548 519 585 687 Total expenditures 245,979 224,593 191,113 158,698 153,595 146,390 132,673 141,314 128,787 115,262 Excess (deficiency) of revenues
over (under) expenditures 615 (1,816) 22,164 13,164 24,351 15,499 22,155 8,951 1,470 15,723 Other Financing Sources (uses)
Transfers in 40,390 24,684 16,718 15,471 19,472 17,571 12,863 12,471 9,056 10,458 Transfers out (38,132) (26,464) (20,063) (18,675) (21,210) (21,437) (15,827) (15,218) (7,465) (10,829) Sale of capital assets 386 - 351 301 - 588 3 - 694 189 Issuance of debt and loans 1,516 21,524 491 807 38 - 1,800 23 - - Total other financing sources (uses) 4,160 19,744 (2,503) (2,096) (1,700) (3,278) (1,161) (2,724) 2,285 (182) Extraordinary gain/(loss) - - - - - - - - - - Net change in fund balances 4,775 $ 17,928 $ 19,661 $ 11,068 $ 22,651 $ 12,221 $ 20,994 $ 6,227 $ 3,755 $ 15,541 $ Debt services as a percentage
of noncapital expenditures 2.2% 1.8% 1.2% 0.9% 3.9% 1.3% 1.2% 1.2% 1.4% 2.8% Schedule 4
CITY OF VACAVILLE
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
The City of Vacaville implemented GASB 34 for the fiscal year ended June 30, 2003. (expressed in thousands of dollars)
(modified accrual basis of accounting)
Fiscal Year
148
Item 9.a
Fiscal Year
Ended June 30, Secured
Nonunitary
Utilities Unsecured
Less
Exemptions
Taxable
Assessed
Value Secured Unsecured
Less
Exemptions
Taxable
Assessed
Value
Total Direct
Tax Rate
2025 $ 18,034,464 $ 735 $ 591,861 $ (1,107,750) 17,519,310$ - - - - 0.206% 2024 17,030,859 715 535,966 (1,048,520) 16,519,021 - - - - 0.210% 2023 16,302,770 715 526,190 (1,020,181) 15,809,494 - - - - 0.208% 2022 15,255,879 715 462,155 (981,481) 14,737,268 - - - - 0.203% 2021 14,477,124 665 477,782 (896,220) 14,059,351 - - - - 0.209% 2020 13,869,454 175 417,324 (887,928) 13,399,025 - - - - 0.209% 2019 13,173,782 175 402,510 (882,823) 12,693,643 - - - - 0.209% 2018 12,522,415 175 405,936 (873,135) 12,055,391 - - - - 0.210% 2017 11,883,362 175 401,437 (844,519) 11,440,455 - - - - 0.213% 2016 11,163,934 240 392,820 (836,233) 10,720,761 - - - - 0.214% The City of Vacaville implemented GASB 34 for the fiscal year ended June 30, 2003.
Source: HDL Coren & Cone, Solano County Assessor 2011/12 - 2020/21 Combined Tax Rolls Note: The assessed value is 100 percent of actual value for all types of secured and unsecured property. Tax rates are per $1,000 of assessed value.
City Redevelopment Agency
(expressed in thousands of dollars)
Schedule 5
CITY OF VACAVILLE
Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years
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City Direct Rates:
City Basic Rate 0.24267% 0.24267% 0.24267% 0.24267% 0.24267% 0.24267% 0.24267% 0.24267% 0.24267% 0.24267% Redevelopment agency 0.00000% 0.00000% 0.00000% 0.00000% 0.00000% 0.00000% 0.00000% 0.00000% 0.00000% 0.00000% Total City Direct Rate 0.20560% 0.21033% 0.20841% 0.20340% 0.20880% 0.20856% 0.20894% 0.20984% 0.21275% 0.21439% Overlapping Rates:
Basic Levy* 1.00000% 1.00000% 1.00000% 1.00000% 1.00000% 1.00000% 1.00000% 1.00000% 1.00000% 1.00000% Davis Unified 0.00000% 0.00000% 0.00000% 0.00000% 0.00000% 0.00000% 0.08411% 0.09224% 0.05713% 0.04833% Dixon Unified School Bonds 0.07648% 0.06353% 0.07587% 0.07744% 0.07207% 0.07270% 0.00000% 0.00000% 0.00000% 0.00000% Fairfield/Suisun USD GOB 2002S 0.07880% 0.06441% 0.07945% 0.08358% 0.06974% 0.06266% 0.11377% 0.09583% 0.10295% 0.04185% SC Fld State Wtr Prj Zone Ben#1 0.02000% 0.02000% 0.02000% 0.02000% 0.02000% 0.02000% 0.02000% 0.02000% 0.02000% 0.02000% Solano Community College 0.03143% 0.03270% 0.02621% 0.03313% 0.03164% 0.03204% 0.03889% 0.02442% 0.03504% 0.03492% City of Vacaville 0.03035% 0.03037% 0.03039% 0.03042% 0.03046% 0.03049% 0.03064% 0.03067% 0.03074% 0.03080% Vacaville Unified School Bonds 0.08855% 0.08253% 0.08137% 0.09986% 0.09768% 0.09989% 0.10319% 0.10097% 0.11261% 0.11411% Refund of Excess Taxes FD 427 0.00000% 0.00000% 0.00000% 0.00000% 0.00000% 0.00000% 0.00000% 0.00000% -0.00121% 0.00000%
1.32561% 1.29354% 1.31329% 1.34443% 1.32158% 1.31778% 1.39060% 1.36413% 1.35726% 1.29001% Source: HDL Coren & Cone, Solano County Assessor 2011/12 - 2020/21 Tax Rate Table Fiscal Year
Because basic and debt rates vary by tax rate area individual rates cannot be summed. Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information. Beginning in 2013/2014, the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/2013.
Redevelopment agency (RDA) rate is based on the largest RDA tax rate areas (TRA) and includes only the rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of California Assembly Bill ABX1 26 eliminated RDA from the State of California for the fiscal year 2012/13 and years thereafter.
*In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property value for the payment of any voter approved bonds.
Schedule 6
CITY OF VACAVILLE
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
150
Item 9.a
Taxpayer
Taxable
Assessed Value Rank
Percentage of Total
City Taxable
Assessed Value
Taxable
Assessed Value Rank
Percentage of Total
City Taxable
Assessed Value
Genentech Inc. 651,442,408$ 1 3.72% 866,863,311$ 1 8.09% MPLD Vacaville C LLC 251,766,380 2 1.44%
PW Fund A LP 192,363,408 3 1.10%
Nella NT LLC 129,859,788 4 0.74%
CPG Finance II LLC 120,554,324 5 0.69% 102,357,036 4 0.95% TGA Midway District Center LLC 114,964,200 6 0.66% Travis Way LLC 97,373,012 7 0.56%
MG North Pointe Apartments LLC 95,906,375 8 0.55% Ranger Northbay LLC 93,916,907 9 0.54%
Sequoia Equities - River Oaks 64,900,235 10 0.37% 54,789,146 7 0.51% Alza Corporation 114,863,099 2 1.07%
NT Dunhill II LLC 106,471,249 3 0.99%
Norvartis Animal Health US Inc 57,773,576 6 0.54% 6801 Leisure Town Road Apt Invest 54,534,010 8 0.51% State Compensation Insurance Fund 51,349,391 9 0.48% Walmart/Sams 47,872,929 10 0.45%
Central Valley Industrial Core 59,282,258 5 0.55% Source: HDL Coren & Cone, Solano County 2011/12 & 2020/2021 Combined Tax Rolls and the SBE Non Unitary Tax Roll.
Schedule 7
CITY OF VACAVILLE
Principal Property Tax Payers
Current Year and Ten Years Ago
2025 2016
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Item 9.a
Fiscal Year Ended
June 30,
Taxes Levied for
the Fiscal Year Amount
Percentage of
Levy
Supplemental/Prior
Years Collections Amount
Percentage of
Levy
2025 20,733,369$ 20,733,369$ 100.00% 1,415,464$ 22,148,833 106.83% 2024 19,285,425 19,285,425 100.00% 415,590 19,701,015 102.15% 2023 18,819,906 18,819,906 100.00% 485,162 19,305,067 102.58% 2022 17,117,779 17,117,779 100.00% 758,073 17,875,852 104.43% 2021 16,254,033 16,254,033 100.00% 121,003 16,375,036 100.74% 2020 15,724,619 15,724,619 100.00% 431,046 16,155,665 102.74% 2019 14,302,993 14,302,993 100.00% 536,401 14,839,394 103.75% 2018 13,901,552 13,901,552 100.00% 588,703 14,490,255 104.23% 2017 13,007,698 13,007,698 100.00% 381,439 13,389,137 102.93% 2016 12,107,472 12,107,472 100.00% 327,997 12,435,469 102.71% Article XIII A of the California Constitution (more commonly known as Proposition 13) limits ad valorem taxes on real property to one percent of value plus taxes necessary to pay indebtedness approved by voters prior to July 1, 1978. The Article also establishes the 1975/76 assessed valuation as the base and limits annual increases to the cost of living, not to exceed two percent, for each year thereafter. Property may also be reassessed to full market value after a sale, transfer of ownership, or completion of new construction. The State is prohibited under the article from imposing new ad valorem, sales or transactions taxes on real property. Local government may impose special taxes (except on real property) with the approval of two-thirds of the qualified electors.
Source: Solano County Auditor Controller's Office.
Schedule 8
CITY OF VACAVILLE
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the Fiscal Year
of the Levy Total Collections to Date
In addition to the City's property tax levies for voter-approved debt, Solano County levies property taxes limited to $1 to $100 of assessed valuation for county, cities, schools and special districts operating expenses. This additional property tax levy is distributed to the different governmental agencies under the State mandated alternate method of apportioning taxes (commonly referred to as the "Teeter Plan") whereby all local agencies, including cities, receive from the county 100% of their respective shares of the amount of ad valorem taxes levied, without regard to the actual collection of the taxes levied. This method was placed in effect by Solano County in the 1965/1966 tax year and remains in effect unless the County Board of Supervisors orders its discontinuance.
152
Item 9.a
Fiscal
Year City Loans
Redevelopment
Loans
Certificates of
Participation
Redevelopment
Bonds
Financed
Obligations
Leases
Payable
SBITA
Payable
Total
Governmental
Activities
State
Revolving
Loan
Financed
Obligations
Leases
Payable
SBITA
Payable
City
Loans
Total
Business-
type Activities
Total Primary
Government
Percentage of
Personal
Income
Per
Capita
Special
Assessment
Bonds
2025 -$ -$ -$ -$ 26,349,190$ 2,304,218$ 5,698,909$ 34,352,317$ 65,356,599$ 1,117,632$ -$ 98,037$ -$ 66,572,268$ 100,924,585$ 2.16% 978 3,361,719$ 2024 - - - - 24,111,931 2,502,107 7,083,492 33,697,530 70,744,460 1,810,053 - 128,524 - 72,683,037 106,380,567 2.37% 1,041 3,614,979 2023 - - - - 5,438,526 1,119,358 6,623,467 13,181,351 84,984,248 2,461,038 - 20,416 - 87,465,702 100,647,053 2.45% 998 3,859,694 2022 - - - - 6,757,196 761,422 7,310,706 14,829,324 94,420,285 3,072,416 - - - 97,492,701 112,322,025 2.71% 1,030 4,095,547 2021 - - - - 8,013,850 - - 8,013,850 103,613,106 3,645,948 - - - 107,259,054 115,272,904 3.24% 1,176 5,423,445 2020 - - - - 13,514,907 - - 13,514,907 112,639,719 4,183,322 - - - 116,823,041 130,337,948 3.94% 1,318 6,395,000 2019 - - - - 14,355,845 - - 14,355,845 121,433,568 4,677,370 - - - 126,110,938 140,466,783 4.51% 1,422 7,070,000 2018 - - - - 13,793,331 - - 13,793,331 130,000,656 5,120,648 - - - 135,121,304 148,914,635 5.20% 1,512 7,695,000 2017 - - - - 14,492,185 - - 14,492,185 138,666,796 5,542,234 - - - 144,209,030 158,701,215 5.55% 1,612 8,975,000 2016 - - - - 13,336,137 - - 13,336,137 145,774,138 8,044,666 - - - 153,818,804 167,154,941 5.91% 1,711 9,855,000 Business-Type Activities Governmental Activities
Schedule 9
CITY OF VACAVILLE
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
153
Item 9.a
City Assessed Valuation 17,491,657,222$
Percentage
Applicable Outstanding Debt
Estimated Share of
Overlapping Debt
(1)
Overlapping Tax and Assessment Debt:
Solano County Community College District 24.304% 351,752,581$ 85,489,947$ Dixon Unified School District 0.259% 49,581,999 128,417 Fairfield-Suisun Joint Unified School District 0.029% 283,256,931 82,145 Travis Unified School District 58.255% 21,000,000 12,233,550 Vacaville Unified School District 91.168% 212,379,000 193,621,687 California Statewide Community Development Authority
Assessment District No. 21.02, Series 2021C 100.000% 2,639,000 2,639,000 California Statewide Community Development Authority
Assessment District No. 22.02, Series 2022C 100.000% 1,085,000 1,085,000 California Statewide Community Development Authority
Assessment Disctrict No. 23.00, Series 2023F 100.000% 2,510,000 2,510,000 City of Vacaville 1915 Act Bonds 100.000% 3,361,719 3,361,719 Total overlapping debt repaid with property taxes 927,566,230 301,151,465 Direct and Overlapping General Fund Debt:
Solano County General Fund Obligations 23.666% 62,105,000 14,697,769 Dixon Unified School District Certificates of Participation 0.259% 6,975,000 18,065 Fairfield-Suisun Joint Unified School District Certificates of Participation 0.029% 5,386,156 1,562 Travis Unified School District General Fund Obligations 58.255% 22,218,217 12,943,222 Vacaville Unified School District Certificates of Participation 91.168% 34,070,000 31,060,938 City of Vacaville Equipment Lease Obligations 100.000% 19,558,635 19,558,635 Total overlapping other debt 52.078% 150,313,008 78,280,191 Overlapping Tax Increment Debt (Successor Agency):
City of Vacaville Tax Allocation Bonds 100.000% 19,470,000 19,470,000 19,470,000 19,470,000
Total Overlapping debt 1,097,349,238$ 379,343,021
City direct debt 34,352,317
Total direct and overlapping debt 413,695,338$ (2) Source: California Municipal Statistics, Inc. and HDL Coren & Cone, Solano County Assessor 2020/21 Combined Tax Rolls Schedule 10
CITY OF VACAVILLE
Direct and Overlapping Debt
As of June 30, 2025
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. (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 districts' total taxable assessed value. 154
Item 9.a
Schedule 11
CITY OF VACAVILLE
Legal Debt Margin Information
Last Ten Fiscal Years
(expressed in thousands of dollars)
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Assessed value 17,519,310$ 16,519,021$ 15,809,494$ 14,737,268$ 14,059,351$ 13,399,025$ 12,693,643$ 12,055,391$ 11,440,455$ 10,720,761$ Conversion percentage 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% Adjusted assessed valuation 4,379,828 4,129,755 3,952,374 3,684,317 3,514,838 3,349,756 3,173,411 3,013,848 2,860,114 2,680,190 Debt limit percentage 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% Debt limit 656,974 619,463 592,856 552,648 527,226 502,463 476,012 452,077 429,017 402,029 Total net debt applicable to limit: - - - - - - - - - - General obligation bonds - - - - - - - - - - Legal debt margin 656,974$ 619,463$ 592,856$ 552,648$ 527,226$ 502,463$ 476,012$ 452,077$ 429,017$ 402,029$ Total net debt applicable to the
limit as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Source: HDL Coren & Cone, Solano County 2011/2012 - 2020/2021 Combined Tax Rolls.
Fiscal Year
155
Item 9.a
Fiscal
Year
Water
Revenue
Less Operating
Expenses (1)
Net Available
Revenue Principal Interest Coverage
Tax
Increment (2) Principal Interest Coverage
2025 25,122$ 26,538$ (1,416)$ -$ -$ - -$ 2,400$ 816$ - 2024 23,869 24,005 (136) - - - - 2,653 919 - 2023 23,538 23,459 79 - - - - 3,105 1,039 - 2022 23,756 20,447 3,309 - - - - 2,991 1,146 - 2021 24,500 21,280 3,220 - - - - 2,882 1,278 - 2020 23,092 20,065 3,027 - - - - 2,775 1,387 - 2019 20,749 20,753 (4) - - - - 2,672 1,490 - 2018 20,021 18,590 1,431 - - - - 2,506 1,595 - 2017 18,357 17,217 1,140 - - - - 1,574 1,534 - 2016 15,855 15,768 87 - - - - 2,128 2,343 - Water Revenue Bonds paid in full fiscal year 1994/95--no outstanding revenue bond indebtedness Debt Service Debt Service
(1) Expenses exclude depreciation and debt service.
(2) Due to the dissolution of the redevelopment agency in 2012, the tax allocation bonds secured by property tax increments will now be repaid from the Redevelopment Property Tax Trust Fund of the successor agency.
Water Revenue Bonds Tax Allocation Bonds
Schedule 12
CITY OF VACAVILLE
Pledged-Revenue Coverage
Last Ten Fiscal Years
(expressed in thousands of dollars)
156
Item 9.a
Year Population (1)
Personal Income
(thousands of dollars) (2)
Per Capita
Personal Income (2)
Unemployment
Rate (3)
2025 103,181 4,676,185$ 45,320$ 4.5% 2024 102,173 4,486,683 43,912 4.1% 2023 100,806 4,111,639 40,787 3.7% 2022 101,257 3,851,602 38,037 6.3% 2021 98,041 3,561,616 36,327 8.2% 2020 98,855 3,308,561 33,468 3.4% 2019 98,807 3,115,920 31,535 3.4% 2018 98,456 2,967,681 30,142 3.8% 2017 98,456 2,861,231 29,061 4.5% 2016 97,667 2,830,236 28,978 4.6% Sources: (1)
(2)
(3) State of California Employment Development Department (as of January each year) Schedule 13
CITY OF VACAVILLE
Demographic and Economic Statistics
Last Ten Calendar Years
State of California Department of Finance (as of January each year) HDL Coren & Cone
157
Item 9.a
Employer
Number of
Employees Rank
Percent of Total
Employment
Number of
Employees Rank
Percent of Total
Employment
Kaiser Permanente 1,375 1 3.18% 1,500 2 3.39% Amazon Services, LLC 899 2 2.08%
Lonza Manufacturing, LLC 800 3
Genentech, Inc. 740 4 1.71% 1,004 4 2.27% Thistle Health Inc. 450 5 1.04%
Wal-Mart Stores, Inc. 372 6 0.86% 441 7 1.00% Blue Mountain Construction Services, Inc. 300 7 0.69%
Costco Wholesale 294 8 0.68%
All Weather Insulated Panels 280 9 0.65%
Mariani Packing Co., Inc. 258 10
Duravent Inc. 375 10 0.85%
Alza Corporation 383 9 0.86%
California State Department of Corrections 3,438 1 7.76% Vacaville Unified School District 1,380 3 3.12% City of Vacaville 794 5 1.79%
State Compensation Insurance, Inc. 509 6 1.15% Northbay VacaValley Hospital 437 8 0.99% Travis Credit Union 383 9 0.86%
Employee data was previously obtained through a survey of local businesses.
Beginning 2017, the data is based on information provided through business license renewal.
Government employee information has been excluded since it is not obtained through the business license renewal process.
Source: State of California Employment Development Department, City survey of area businesses conducted in 2011, & City Business License Software.
Schedule 14
CITY OF VACAVILLE
Principal Employers
Current Year and Ten Years Ago
2025 2016
158
Item 9.a
Function/Program 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 General Government
City Attorney 8 6 7 7 5 4 4 4 4 2 City Manager 14 14 11 22 23 10 9 9 9 10 Economic Development 1 2 2 2 Finance 29 28 26 24 27 24 23 20 25 25 Human Resources 15 15 15 13 12 12 12 14 11 11 Information Technology 11 12 11 - - 9 9 9 8 9 Community Development 19 14 17 13 15 15 16 16 17 18 Police Department 174 174 171 166 167 175 169 157 149 153 Fire Department 107 103 105 95 97 96 91 92 82 102 Community Services 26 23 22 19 18 17 16 16 16 17 Housing and Successor Agency 21 22 19 20 18 15 14 13 14 12 Utilities 86 83 84 65 68 68 67 68 68 67 Public Works 96 96 93 104 105 99 74 94 89 83 Total 607 592 583 550 555 544 504 512 492 509 Starting fiscal year 2013, Sewer and Water Operations employees are reported in the Utilities function. In previous years, employees were included with Public Works.
Starting fiscal year 2021, Information Technology employees are reported in the City Manager's Department. In previous years, employees were included within Information Technology.
Starting fiscal year 2022, Economic Development employees are reported in their own function. In previous years, employees were included with the City Manager's Department.
Schedule 15
CITY OF VACAVILLE
Full-time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
Full-time Equivalent Employees as of June 30, 2025
159
Item 9.a
Function/Program 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Fire
Emergency responses 13,848 13,416 13,144 13,026 11,891 11,231 10,921 10,915 10,520 9,471 Inspections 1,690 1,648 1,669 1,655 1,629 1,661 1,633 1,056 1,490 2,287 Parks and Recreation
Number of recreation registrants 24,955 24,745 21,144 21,445 12,215 16,827 32,313 30,483 31,651 31,741 Number of facility rentals 1,995 1,929 1,480 1,448 189 768 1,368 749 573 502 Police Department
Physical arrests 4,001 1,999 1,670 2,866 4,149 3,982 3,804 4,725 5,739 4,767 Parking citations issued 1,336 588 565 2,629 3,072 2,165 3,520 3,354 2,681 3,615 Public Works
Street resurfacing (centerline miles) 18 17 20 20 25 12 36 30 1 - Potholes repaired 5,739 3,331 6,490 4,256 2,549 792 481 1,664 1,937 1,035 Transit
Total revenue route miles 368,171 359,599 366,236 373,113 267,603 366,776 480,454 566,729 576,898 569,949 Passengers 203,349 215,664 278,178 252,820 101,028 272,616 372,004 420,781 449,010 509,023 Wastewater
Average daily sewage treatment
(million gallons per day) 9 9 9 8 7 8 9 8 9 7 Water
New Connections (meter sets) 468 256 268 292 476 427 272 196 339 376 Average daily consumption 14,363 12,974 12,967 14,536 15,225 14,122 13,513 13,177 11,497 10,694 (thousands gallons per day)
Source: Various City Departments
Schedule 16
CITY OF VACAVILLE
Operating Indicators by Function/Program
Last Ten Fiscal Years
Fiscal Year
160
Item 9.a
Schedule 17
CITY OF VACAVILLE
Function/Program 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Fire
Fire Stations 6 5 5 5 5 5 5 5 5 5 Fire Engines 15 15 15 15 15 15 14 14 13 13 Parks and Recreation
Parks 39 39 38 37 37 35 35 35 34 34 Park Acres 616 609 608 605 605 597 596 596 572 572 Special Community Facilities 11 11 11 11 11 11 11 11 6 6 Neighborhood Centers 8 8 8 8 8 8 8 8 11 11 Police Department
Police Stations 1 1 1 1 1 1 1 1 1 1 Police Vehicles (excluding motorcycles) 163 154 134 127 124 118 135 126 108 113 Police Motorcycles 10 9 9 9 9 11 11 7 9 9 Public Works
Traffic Signals 74 72 72 72 72 72 72 67 67 69 Transit Buses
Fixed Route 25 27 18 18 18 18 18 18 18 18 Special Services 6 6 6 7 7 7 7 7 7 6 Direct Route 4 4 4 4 - - - - - - Wastewater
Sewers (miles) 267 265 265 259 256 253 249 249 249 249 Storm Drain (miles) 170 168 168 161 158 154 151 151 151 151 Treatment Plants 1 1 1 1 1 1 1 1 1 1 Water
Water Mains (miles) 319 316 315 308 304 300 295 295 295 295 Fire hydrants 3,879 3,828 3,822 3,778 3,721 3,664 3,586 3,586 3,586 3,580 Reservoirs 11 11 10 10 10 10 10 10 10 10 Wells 13 13 11 13 13 13 13 13 13 13 Source: Various City Departments
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Fiscal Year
161
Item 9.a
LSLCPAS.COM
March 31, 2026
To the Honorable Mayor and Members of the City Council
City of Vacavi
lle California
We have audited the financial statements of the government al activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Vacaville, California (hereafter, the City) for the year ended June 30, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated August 6, 2025. Professional st andards also require that we communicate to you the following information related to our audit.
Significant Audit Matters
Qualitative Aspe
cts of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. As described in Note 1 to the financial statements, the City changed accounting policies relat ed to compensated absences by adopting Statement of Governmental Accounting Standar ds (GASB Statement) No. 101, Compensated Absences , in fiscal year 2025.
Accordingly, the cumulative effect of the accounting c hange as of the beginning of the year is reported in the Statement of Activities. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period
Accounting estimates are an integral part of the finan cial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ si gnificantly from those expected. The most sensitive estimates affecting the City’s financial statements were:
Manag
ement’s estimates of the net pension liabilit y, net other post-employment benefits liability, and claims and judgments liability are based on actuarial valuations. We evaluated the methods, assumptions, and data used to develop the net pension liability, net other post-employment benefits liability, and claims and judgments liability in determining that they are reasonable in relation to the financial statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Item 9.a
To the Honorable Mayor and Members of the City Council
City of Vacaville California
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communi cate them to the appropriate level of management. The attached schedule summarizes uncorrected misstate ments of the financial st atements. Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. The uncorrected misstatem ents or the matters underlying them could potentially cause future period financial statements to be materially misstated, even though, in our judgment, such uncorrected misstatements are immaterial to the financial statements under audit.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter dated March 31, 2026.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our profe ssional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, ther e were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City ’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to management’s discussion and analysis, the budgetary comparison schedules for the General Fund and major special revenu e funds, and the required pension and other post- employment benefits schedules, which are required supple mentary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the combining and individual fund statements and schedules which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the introductory and statistical sections of the Annual Comprehensive Financial Report, which accompany the financial statements but are not RSI. Such information has not been subjected to the Item 9.a
To the Honorable Mayor and Members of the City Council
City of Vacaville California
auditing procedures applied in the audit of the basic financi al statements, and accordingly, we do not express an opinion or provide any assurance on it.
Future GASB Pronouncements
The following Government Accounting Standards Board (GASB) pronouncements will be effective for the following fiscal years’ audits and should be reviewed for proper implementation by management:
Fiscal Year 2025-2026
GASB Statement No. 103, Financial Reporting Model Improvements.
GASB Statement No. 104, Disclosure of Certain Capital Assets.
Future Projects
Comprehensive Project, Revenue and Expense Recognition.
Major Project, Going Concern Uncertainties and Severe Financial Stress.
Major Project, Infrastructure Assets.
Practice Issue, Subsequent Events.
Restriction on Use
This information is intended solely for the information and use of City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
Sacramento, California
Item 9.a
To the Honorable Mayor and Members of the City Council
City of Vacaville California
SUMMARY OF AUDIT DIFFERENCES
City of Vacaville
Year Ended June 30, 2025
Unad
justed audit differences: Sewer Utility Fund
Current Year over (under)
Revenues and
Expenditures/Expenses
and Changes in
Fund Balance/Equity
Depreciation Expense $ 48,972
Net Position (48,972)
Cumulative effect (after effect of prior year differences) $ 0
Unadjusted audit differences: Governmental Activities
Current Year over (under)
Revenues and
Expenditures/Expenses
and Changes in
Fund Balance/Equity
General Government $ 131,078
Compensated Absences (131,078)
Cumulative effect (after effect of prior year differences) $ 0
Item 9.a
LSLCPAS.COM
INDEPENDENT AUDITORS’ 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 Members of the City Council
City of Vacaville, 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 the City of Vacaville, California (hereafter, 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 March 31, 2026.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statemen ts, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatem ent of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal co ntrol that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist t hat were not identified. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as item 2025-001 that we consider to be a material weakness.
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 di rect and material effect on the financial statements.
However, providing an opinion on compliance with thos e 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.
Item 9.a
To the Honorable Mayor and Members of the City Council
City of Vacaville, California
City of Vacaville, California’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 and questioned costs. 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 sc ope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Sacramento, California
March 31, 2026
2 Item 9.a
POPULAR ANNUAL FINANCIAL REPORT
CityofVacaville.gov
Please view the ACFR at CityofVacaville.gov for more detailed information.
Item 9.a
POPULAR ANNUAL FINANCIAL REPORT
CityofVacaville.gov
Please view the ACFR at CityofVacaville.gov for more detailed information.
TABLE OF CONTENTS
To the Citizens of Vacaville 1
Vacaville’s Profile 2
Top Sales Tax Producers and Employers 3
City Organization 4
Where the Money Comes From 5
Where the Money Goes 7
General Fund Financial Highlights 9
Combined Financial Statements 10
▪ Statement of Net Position
▪ Statement of Activities
Key Financial Information 12
▪ Capital Assets-What We Own
▪ Long –Term Debt-What We Owe
City Highlights 13
POPULAR ANNUAL FINANCIAL REPORT
Item 9.a
POPULAR ANNUAL FINANCIAL REPORT
CityofVacaville.gov
Please view the ACFR at CityofVacaville.gov for more detailed information.
About Vacaville
The City of Vacaville, incorporated in 1892, is located in northern Solano County roughly midway between San Francisco and
Sacramento. It has a beautiful setting bordered by rolling hillsides, fruit orchards, and fertile farmland.
Residents can “day trip” to Lake Tahoe, the Napa wine country, and beaches due to the city’s central location, or enjoy a wide range of arts, entertainment, and outdoor recreational activities offered within the city.
Originally founded as an agricultural and rail shipping area, Vacaville has grown into a thriving and progressive city. It is home to several global pharmaceutical companies and biologics and industrial biomanufacturing continue to be at the forefront of the City’s economic development efforts. Despite its rapid growth, Vacaville remains a “small town at heart,” whose residents pride themselves on their high level of community involvement.
POPULAR ANNUAL FINANCIAL REPORT
Item 9.a
POPULAR ANNUAL FINANCIAL REPORT
CityofVacaville.gov
Please view the ACFR at CityofVacaville.gov for more detailed information.
To the Citizens of the City of Vacaville:
It is our pleasure to present you with the Popular Annual Financial Report (PAFR) of the City of Vacaville for the fiscal year ended June 30, 2025. The purpose of the PAFR is to increase awareness throughout the community of the City’s finances. The report provides a brief analysis of the City’s revenue sources and where those dollars are spent as well as an overview of the City’s financial condition. It is our goal that this report is easy to read and understand.
This report contains condensed and simplified financial information from the City’s Annual Comprehensive Financial Report (ACFR), which can be viewed at City Hall or on the City’s website at CityofVacaville.gov. The ACFR is a more complete, independently audited financial presentation prepared in accordance with generally accepted accounting principles (GAAP), and the City received an unmodified (clean) opinion on its ACFR . Only the financial data for the primary government are included in the PAFR with the main focus being on the City’s governmental activities. The data presented in the General Fund Highlights on page 9, is presented using the accrual method of accounting. Additionally, information is presented in a summarized manner and certain financial statements and note disclosures required by GAAP are omitted.
We hope you will find the report to be interesting and informative. We welcome any feedback, comments, or concerns regarding the information included. We would also like to thank the Mayor, Vice Mayor, City Council, and City Manager for their unfailing support in maintaining the highest standards of professionalism in the management of the City’s finances.
A Message to Our Readers…
1 Item 9.a
POPULAR ANNUAL FINANCIAL REPORT
CityofVacaville.gov
Please view the ACFR at CityofVacaville.gov for more detailed information.
Vacaville’s Profile Elected and Appointed Officials
June 30, 2025
Founded as Vacaville December 13, 1851
Incorporated as Vacaville August 9, 1892
Geography
Land 28.37 square miles
Coordinates 38°21’14”N 121°58’22”W
Government
Form of Government Council-Manager
Mayor 4-Year Term
6 City Council Members 4-Year Term
*Election Staggered Every 2 Years
Demographic and Economic Statistics
Population 103,181
Percentage Male 51.8%
Percentage Female 48.2%
Median Age 38.1
Median Household Income $111,126
High school graduate or higher, Age 25+ 91.5%
Bachelor’s degree or higher, Age 25+ 27.6%
Sales tax rate 8.125%
Source: California State Department of Finance, U.S. Census Bureau, Applied Geographic Solutions
Unemployment Rate
Nation 5.4% (January 2025)
California 5.3% (January 2025)
Solano County 5.0% (January 2025)
Vacaville 4.5% (January 2025)
Source: U.S. Bureau of Labor Statistics, California Employment Development Department Rate is not seasonally adjusted
John Carli
Sarah Chapman
Roy Stockton
Gregory Ritchie II
Michael Silva
Ted Fremouw
Jeanette Wylie
Jay Yerkes
Michelle Thornbrugh
Savita Chaudhary
Melinda Stewart
GeorgeAnne Meggers-Smith
Ken Matsumiya
Jessica Bowes
Kristian Concepcion
Chris Polen
Brian McLean
Don Burrus
Erin Morris
Tamara Colden
Bruce Mulder
Elected Officials
Mayor, Member-At-Large
Vice Mayor, District 4
Council Member, District 1
Council Member, District 2
Council Member, District 3
Council Member, District 5
Council Member, District 6
City Treasurer
City Clerk
Appointed Officials
City Manager
City Attorney
Assistant City Manager
Director of Finance
Director of Human Resources
Fire Chief
Chief of Police
Director of Public Works
Director of Economic Development
Director of Community Development
Director of Housing and Community Services
Director of Parks and Recreation
Director of Utilities
Justen Cole
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Top 10 Principal
Employers
Top 25 Sales Tax Producers
For Fiscal Year 2024-25
Kaiser Permanente
Amazon Services, LLC
Lonza Manufacturing, LLC
Genentech, Inc.
Thistle Health Inc.
Walmart Stores, Inc.
Blue Mountain Construction Services, Inc.
Costco Wholesale
All Weather Insulated Panels
Mariani Packing Co., Inc.
Source: Finance Department – Business License Section
Excludes Government Entities
Amazon Com Services Lowes
Amazon MFA Matheson Tri Gas
Ammaar’s Toyota Vacaville Mazzei Chevrolet
Arco Mettler Toledo Rainin
Best Buy Nike Factory
Buick GMC of Vacaville Nissan of Vacaville
Camping World RV Sam’s Club w/Fuel
Costco Target
Dodge Chrysler Jeep of Vacaville Texaco
GE Healthcare Bio Sciences Vaca Valley Travel Center
Genentech Vacaville Honda
Home Depot Walmart
Invitrogen
Source: State Board of Equalization, CA Dept of Taxes and Fees Administration, State Controller’s Office, The HDL Companies - Firms listed alphabetically 3 Item 9.a
POPULAR ANNUAL FINANCIAL REPORT
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City Organization
Citizens of
Vacaville
City
Treasurer
City Council
City Clerk
Commissions (Appointed)
Planning
Parks & Recreation
City
Manager’s
Office
City
Attorney’s
Office
Human
Resources
Finance
Economic
Development
Public
Works
Utilities
Housing &
Community
Services
Police
Fire
Parks &
Recreation
Community
Development
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Property taxes: Property taxes are the largest source of operating revenues for the governmental funds. The assessed valuation of the property in the City is determined by the Solano County Tax Assessor, which levies a base tax at the rate of 1% of assessed valuation.
Sales and Use taxes: Sales and use taxes are imposed on retail transactions and are collected and administered by the state. The City receives 1% of all taxable sales within City limits and a pro-rata share of use taxes which are “pooled” at the state and county level. The total tax rate in Vacaville is 8.125%. Measure M revenues, an additional ¾ cent transactions tax approved in 2018, are included in this category.
Franchise taxes: These revenues come from fees collected on electric and natural gas utilities, sanitary, and telecommunication franchises operating within the City. The fees are based on gross receipts.
Excise taxes: This revenue is from Measure I. The tax was initially approved by voters in 1989 to pay for the construction of the Ulatis Cultural Center and provide an additional source of funding for services such as street maintenance, cultural events, and recreation activities. The continuation of Measure I was approved by voters in November 2012 and proceeds are used to fund general City services and facilities.
Charges for services: These revenues are collected for services rendered to the public, such as recreational classes.
Operating grants and contributions: Funding received from other governments and organizations for the purpose of financing the day-to-day costs of a specific program. The City’s Housing Choice Voucher Program, first-time homebuyer programs, and motor vehicle fuel tax allocated by the state for public street purposes are examples.
Capital grants and contributions: Funding received from other governments and organizations for financing the purchase of capital assets for a specific program. Improvements and additions to the City’s infrastructure and equipment are funded from this revenue source.
Other taxes: This category includes the Transient Occupancy Tax (TOT), which is imposed on lodging facilities such as hotels and motels, and the Business License Tax, which is an annual tax on local businesses based on a flat-fee schedule. The TOT tax rate is currently 8%.
Investment income: The City pools its available cash from various funds and invests in instruments allowed by the City’s investment policy.
Investment earnings are dependent on market conditions and the cash available to invest and earnings are allocated to various funds proportionate to their cash balances.
Other revenue: This category includes revenues that are not otherwise categorized in the charts on the following page.
Where the Money Comes From – Governmental Activities
Governmental activities are mostly supported by taxes, such as property and sales taxes, and intergovernmental revenues, primarily federal grants.
The General Fund, the chief operating fund used to support the regular day-to-day operations of the City, is included in governmental activities.
In 2025, revenues from the City’s governmental activities totaled $255,886,823. Over half of this amount was from property and sales taxes. In total, revenue increased by over $31.7 million or 14 % when compared to 2024. Operating grants and contributions substantially increased over the prior fiscal year with the City continuing to implement more grant funded programs and initiatives. Sales tax revenue had an increase of 14%, primarily due to one-time revenues from the recent sale and acquisition of one of the largest biotech facilities in the world. Property tax revenue increased by 7.47% due to growth in the assessed valuation of the industrial category despite rising interest rates. Conversely, the Fed’s interest rate increases have continued to raise the value of investment income in the City’s portfolio. The following is a list of the City’s major revenue sources:
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Item 9.a
POPULAR ANNUAL FINANCIAL REPORT
CityofVacaville.gov
Please view the ACFR at CityofVacaville.gov for more detailed information. $255,887
$224,197
$238,263
2025 2024 2023
Revenue by type
(in thousands of dollars) 2025 2024 2023
Property taxes $65,033 $60,514 $59,185
Sales and use taxes 57,258 49,941 51,958
Franchise taxes 5,677 5,669 5,551
Excise taxes 2,971 2,924 2,853
Charges for
services
28,780 27,555 27,503
Operating grants 52,524 40,456 37,210
Capital grants 28,680 25,700 47,972
Other taxes 2,446 2,482 2,382
Interest and other 12,518 8,956 3,649
Total 255,887 224,197 $238,263
Where the Money Comes From
The following charts and table summarize the revenues of the City’s governmental activities and how current year revenues compare to amounts received in previous years. Like all governments, the City must raise funds to pay for the services it provides to its citizens and businesses. These funds are raised through taxes, charges, and grants.
Property taxes and sales and use taxes are consistently the two largest revenue sources for the governmental funds. In 2025, operating grants and contributions substantially increased from the previous year as the City continues to implement more grant funded programs and initiatives.
The Fed’s interest rate increases have continued to raise the value of investment income in the City’s portfolio.
$65,033,
26%
$57,258,
22%
$5,677,
2%
$2,971,
1%
$28,780,
11%
$52,524,
21%
$28,680,
11%
$2,446,
1%
$12,518,
5%
2025 Governmental Activities Revenue
(full accrual)
Property Taxes Sales and Use Taxes
Franchise Taxes Excise Taxes
Charges for Services Operating Grants and Contributions Capital Grants and Contributions Other Taxes
Investment Income
Fiscal Year Comparison
(in thousands of dollars)
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General government – Expenses are related to the administration of the City’s affairs. These expenses include the City Council, City Treasurer, City Manager, City Attorney, Finance, Human Resources, Economic Development, Planning and Building.
Public safety – Expenses incurred for Police and Fire services.
Public works – Expenses for Public Works include those related to the design, construction, maintenance, and operation of public facilities and infrastructure within the City.
Parks & Recreation– Expenses incurred to provide recreational and cultural activities, maintain parks, and support educationally enriching activities for the City’s youth.
Housing – Expenses are related to the City’s operation of programs addressing housing needs, neighborhood revitalization, and projects designed to promote economic growth and eliminate blight.
Interest on long-term debt – Interest expenses incurred for outstanding debt obligations.
$28,189
12%
$107,321
47%
$40,866
18%
$22,415
10%
$28,742
12%
$1,430
1%
2025 Governmental Activities Expenses
(full accrual)
General government Public safety
Public works Community services
Housing Interest on long-term debt
(Amounts expressed in thousands of dollars)
Where The Money Goes – Governmental Activities
Now that we’ve covered how the activities of the governmental funds are supported, let’s take a look at the services that are provided with these funds. The City provides a wide range of services, including police and fire protection, street and park maintenance, and recreational and cultural opportunities. Since our focus in this section is on the expenses of the governmental funds, financial information on the City’s transportation, sewer and water services have been excluded since they are business-type activities. In 2025, expenses from governmental activities totaled $228,963,608.
The following is a list of the City’s governmental expenses by function:
7 Item 9.a
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Please view the ACFR at CityofVacaville.gov for more detailed information. $228,963 $219,584
$196,665
2025 2024 2023
Where the Money Goes
The following table and chart summarize the expenses of the City’s governmental activities for the current fiscal year along with the previous two fiscal years presented for comparison.
Expenses increased by approximately 4.27% or $9.4 million from fiscal year 2024. With the adoption of the fiscal year 2024-25 budget, 3 positions were approved to address staffing level challenges and support the City’s continued growth. Inflationary pressures caused an escalation in the expenses associated with the procurement of supplies used in department operations and construction-related costs.
Fiscal Year Comparison
(in thousands of dollars)
Expense by Type
(in thousands of dollars) 2025 2024 2023
General government 28,189 26,760 24,630
Public safety 107,321 94,818 86,175
Public works 40,866 51,452 37,395
Community services 22,415 20,638 19,410
Housing 28,742 25,320 28,635
Interest on long-term debt 1,430 596 420
Total 228,963 219,584 196,665
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Fund Balance (Assets – Liabilities)
The chart on the top right illustrates the City’s fund balance over the last three years. The total fund balance for the General Fund at the end of fiscal year 2025 was $79,834,529, a decrease of approximately $600 thousand from prior year. Since there are limitations on how these resources can be spent, the City’s fund balance is categorized as follows:
Nonspendable: Amounts that are not in a spendable form or are required to be maintained intact.
Restricted: Resources that are legally restricted by outside parties (grantors, bondholders) or enabling legislation. For the current fiscal year, there were no general fund resources in this category.
Assigned: Amounts the City intends to use for a specific purpose.
Examples include funding to be used for capital improvement and technology projects. The increase in the current year is primarily due to funding designated for the City’s Measure M projects.
Unassigned: Amounts that are available for any purpose.
The amounts in the Assigned and Unassigned categories, $78.4 million at the end of 2025, can be viewed as the City’s emergency operating reserve. As a general rule, this reserve should be no less than two months or 20% of regular operating revenues or expenditures. The City’s emergency reserve at June 30, 2025, was 56% of General Fund expenditures.
General Fund Financial Highlights
$49,954
$31,321
$-
$1,685
$50,849
$28,079
$-
$1,506
$38,326
$40,066
$-
$1,442
Unassigned
Assigned
Restricted
Nonspendable
2025
2024
2023
The General Fund is the main operating fund of the City. It is used to account for all revenues and expenditures that are not required to be reported in another fund and is the only fund that every government has.
The data in this section is presented with a focus on current financial resources; i.e., the City’s ability to pay current bills with existing resources.
Revenues vs. Expenditures for Fiscal Year 2025
(in thousands of dollars)
General fund revenues $149,665
General fund expenditures (140,123)
Excess revenues 9,542
Transfer of public safety district funds and traffic safety fines into the general fund
8,540
Transfer of funds from the general fund for capital
improvement projects, building and street development,
and park maintenance
(18,809)
Other 127
Net decrease in fund balance ($600)
Fiscal Year Comparison
(in thousands of dollars)
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Statement of Net Position
Statement of Net Position
(in thousands of dollars)
Governmental Activities Business-Type
Activities
Total Primary
Government
2025 2024 2025 2024 2025 2024
Current And Other Assets $312,520 $298,252 $216,428 $197,791 $528,948 $496,043 Capital Assets 527,207 495,325 338,578 340,721 865,785 836,046 Total Assets (What We Have) 839,727 793,577 555,006 538,512 1,394,733 1,332,089 Deferred Outflows of Resources 91,989 95,439 16,774 18,010 108,763 113,449 Current And Other Liabilities 380,488 365,285 73,927 70,106 454,415 435,391 Loans, Bonds, And Capital Lease
Obligations
26,349 24,112 66,474 72,554 92,823 96,666
Total Liabilities (What We Owe) 406,837 389,397 140,401 142,660 547,238 532,057 Deferred Inflows Of Resources 12,176 11,649 4,342 3,311 16,518 14,960 Net Position
Net Investment In Capital Assets 492,854 461,628 272,005 268,037 764,859 729,665 Restricted 151,784 140,962 7,106 7,106 158,890 148,068
Unrestricted (131,935) (114,620) 147,926 135,408 15,991 20,788 Total Net Position $512,703 $487,970 $427,037 $410,551 $939,740 $898,521 In this section, we will look at a
condensed version of the City’s
Statement of Net Position.
The Statement of Net Position includes
the governmental activities we have
looked at and business-type activities –
the City’s transit and utilities services –
to illustrate the overall financial
condition of the City. The statement is
similar to a balance sheet found in the
private sector.
The City’s assets and deferred outflows
exceeded its liabilities and deferred
inflows by $940 million at the close of
fiscal year 2025, an increase of about
$41 million from fiscal year 2024. The
City’s unrestricted net position, which
may be used to meet ongoing
obligations to its citizens and creditors,
decreased during the fiscal year.
Deferred inflows of resources – Includes deferred pension actuarial changes Net Position – Total assets and deferred outflows of resources minus liabilities and deferred inflows of the City.
Net investment in capital assets – Represents amount invested in capital assets less accumulated depreciation and any outstanding debt used to acquire these assets. The resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate this debt.
Restricted – Resources subject to externally imposed restrictions.
Unrestricted - Resources available to provide services to citizens and meet ongoing obligations to creditors if there were no additional resources or revenue available.
Current and other assets – Includes cash, assets that are expected to convert to cash, be sold, or consumed within one year, and long-term receivables.
Capital assets – The City’s long-term investment in land, buildings, infrastructure, equipment, and other improvements. These capital assets are used to provide services to the community; consequently, these assets are not available for future spending.
Deferred outflows of resources – City contributions made after the measurement date of the new net pension liability and deferred pension actuarial changes.
Current and other liabilities – Amounts owed by the City excluding loans and bonds payable and capital lease obligations.
Loans, bonds, and capital lease obligations – The proceeds from these debt issues were used to finance large projects such as building construction and renovation and major equipment purchases.
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Statement of Activities Changes in Net Position
(in thousands of dollars)
Governmental
Activities
Business-Type
Activities
Total Primary
Government
2025 2024 2025 2024 2025 2024
Revenues
Program revenues:
Charges for service $28,780 $27,555 $63,093 $60,158 $91,873 $87,713 Operating grants & contributions 52,524 40,456 3,998 4,710 56,522 45,166 Capital grants & contributions 28,680 25,700 16,653 19,180 45,333 44,880 General revenues:
Property taxes 65,033 60,514 84 83 65,117 60,597
Sales and use taxes 57,258 49,941 - - 57,258 49,941
Franchise taxes 5,677 5,669 - - - 5,669
Other taxes 5,417 5,406 - - 5,417 5,406
Investment income 11,248 8,347 9,895 7,924 21,143 16,270 Other revenue 1,270 609 1,956 897 3,226 1,506
Total revenues 255,887 224,197 95,679 92,952 345,889 317,149 Expenses
Governmental activities 228,963 219,584 - - 228,963 219,584 Business-type activities:
Sewer - - 40,945 38,361 40,945 38,361
Water - - 26,690 25,892 26,690 25,982
Transit - - 5,622 4,223 5,622 4,223
Total expenses 228,963 219,584 73,257 68,476 302,220 288,060 Transfers 5,091 3,172 (5,091) (3,172) - -
Change in net position 32,015 7,785 17,331 21,303 49,346 29,088 Net position – July 1, 2024 487,970 478,345 410,551 389,248 898,521 867,593 Accounting Change/Correction (Note 21) (7,282) 1,840 (845) - (8,127) 1,840 Net Position – July 1, 2024, as restated 480,688 480,185 409,706 - 890,394 869,433 Net position – June 30, 2025 512,703 487,970 427,037 410,551 939,740 898,521 The income statement for the City of Vacaville,
known as the Statement of Activities, illustrates
how the City’s net position changed during fiscal
year 2025. Over time, increases or decreases in
net position may serve as a useful indicator of
whether the City’s financial position is improving or
deteriorating.
The revenue sources and the services and
programs provided with the funding were
discussed earlier in this report for the
governmental activities. The Statement of
Activities illustrate how much of the City’s
operations are paid directly from program revenues
raised or collected from customers and the portion
funded through taxes.
The City’s business-type activities (water and
sewer operations, City Coach) are designed to
recover costs from customers and rely heavily on
fees charged to the recipients of the service. As
shown in the table, a majority of the revenues for
the business-type activities, unlike the
governmental activities, are from program
revenues.
• Continued increase in connection fee revenue
due to development and building permits pulled.
• Continued increase in investment income due to
rising interest rates on City’s investment
portfolio from Fed action to slow inflation.
• Reduction in transit intergovernmental revenue
from grant funds.
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Capital Assets – What We Own
As of June 30, 2025, the value of the City’s capital assets was $866 million, which is an increase of about $29.7 million from fiscal year 2024. Major capital asset events during the current fiscal year included:
• Completion of the Allison Parkway Lift Station Expansion. • Completion of the Wykoff Water and Sewer project.
• Continued efforts to address the replacement of the aging vehicle fleet and replacement of public safety radios.
• Continued efforts to complete park improvements in each of the City’s six districts.
Land,
$193,373
Right-to-use
leased land,
$481
Land
improvements,
$27,277
Buildings and
improvements,
$229,505 Equipment,
$12,836
Right-to-use
leased equipment ,
$2,338
Vehicles,
$14,638
Infrastructure,
$294,260
Right to use
subscription
Software
$6,879
Construction in
progress,
$84,060
Total Primary Government
(in thousands of dollars, net of depreciation)
$-
$20,000
$40,000
$60,000
$80,000
Governmental Business-type Total Primary
Government
$-
$65,357 $65,357
$26,349
$1,118
$27,467
Long-Term Debt
(in thousands of dollars)
Loans Payable Financed Obligations
$11,860
$7,641
$2,456
$1,921
$- $4,000 $8,000 $12,000 $16,000
2024
2025
Debt Service Payments
(in thousands of dollars)
Principal Interest
Key Financial Information Long-term Debt – Loans Payable And Financed Obligations – What We Owe
At the end of fiscal year 2025, the City had total debt outstanding of $93 million for loans payable and financed obligations excluding leases and SBITAs payable. The City’s debt decreased by $3.8 million due to loan payments made to the State Water Resource Control Board for the Sewer Easterly and Tertiary Projects.
Debt service payments in fiscal year 2025 decreased by approximately $4.2 million due to early payments made to the State Water Resource Control Board. The city also entered into a new debt agreement to finance 13 fleet vehicles for the Fire Department, including two fire engines.
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The City of Vacaville continues to strive for excellence; here are a few noteworthy accomplishments:
• As part of the City’s Arts and Culture Master Plan, a local artist held a series of community workshops called “Weaving Our Future”. Participants were guided through art making and contributions were integrated into a tapestry showcased at the Vacaville Performing Arts Theatre. • In October 2024, the VPD was awarded a $136,000 grant from the CA Office of Traffic Safety to support ongoing enforcement and education programs, helping to increase safety, prevent crashes and make our roads safer for everyone. • The Destination Downtown Storefront Improvement Grant Pilot Program was launched October 2024 to revitalize and re-energize the downtown area business climate.
• LIFEPAK 35 defibrillators were deployed on every fire apparatus across the City, empowering first responders to deliver better care in the field, enhance emergency medical response, and save lives in critical situations. • In December 2024, the City was honored with the prestigious Helen Putnam Award for Excellence for outstanding programs that enhance quality of life and service delivery.
• The Ruth Vreeland Award recognized the City’s commitment to youth engagement and community service. This award highlights the success of the “Summer at City Hall” program which invites high school students to learn hands on through internships. • April 2025 the City announced the start of the Sustainable Energy Project, beginning the first phase of installing solar systems at eight City facilities.
The project marks a significant step in the City's ongoing commitment to sustainability and cleaner energy future. • In May 2025, the City announced the award of a Digital Literacy grant funded by the CPUC. This four-week program is designed to empower adults aged 50 and older with essential technology skills to reduce isolation, stay connected, informed and safe online.
City Highlights…
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CITY OF VACAVILLE FINANCE DEPARTMENT
650 Merchant Street
Vacaville, CA 95688
CityofVacaville.gov
POPULAR ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2025
Item 9.a
CITY OF VACAVILLE
City Council
Staff Report
Meeting Date: May 12, 2026
To: Honorable Mayor and City Council Members
Attention: Savita Chaudhary, City Manager
From: Director Name, Chief Chris Polen, Police Department (Staff Contact, Captain Bryan Larsen (707) 469-4823, Sergeant David Casalnuovo (707) 449-5290)
Subject: Resolution of the City Council of the City of Vacaville to authorize the Chief of Police to execute a Professional Services Agreement with AP Triton, LLC for a Police Department Operational and
Organizational Assessment and Fire Department Master Plan at a total cost of $128,750; and, amending the fiscal year 2025-26 Capital Improvement Program Budget.
Actions for Consideration:
The Police Department is requesting the City Council to authorize the Police Chief to execute a Professional Services Agreement with AP Triton, LLC (“AP Triton”) for a Police Department Operational and Organizational Assessment and Fire Department Master Plan (“Master Plan”) at a total cost of $128,750. In addition, staff recommends Council approve a budget amendment adding a total of $128,750 to the fiscal year 2025-26 Capital Improvement Program Budget.
Recommendations:
By simple motion, adopt the subject resolution.
Background:
The City of Vacaville (“City”) has experienced continuous development and growth over the past fifteen years. The State of California Department of Finance estimated the City experienced a 12% population growth (92,428 to 103,181 residents) between 2010 and 2025. Future developments, including the Northeast and East of Leisure Town Growth Areas, will add thousands of residential units, substantial commercial acreage, and several schools to the City.
While the City has experienced substantial and sustained growth since 2010, the City’s Police Department’s level of sworn staffing has stayed nearly the same since 2007. In FY 2007/08 the Police Department was authorized for 116 sworn positions. Currently, in FY 2025/26, that number has increased by only two positions to 118, or just under 2%. During the same period, overall fulltime department staffing rose from 185 to 194 positions, or 5%, showing that while total staffing grew modestly, sworn personnel have remained essentially flat.
Item 9.b
The Police Department underwent an independent audit by the OIR Group in 2022. This audit was designed to assess the policies, procedures, and practices of the Police Department. The audit did not address current Police Department capabilities, community priorities, staffing, or future service needs. Other City departments, including the Fire Department, routinely contract with outside consultants to assess standards of cover, maximize department resources, and improve service delivery. An Operational and Organizational Analysis will provide an avenue for future planning to uphold our mission to improve the quality of life within the City.
In addition to the Police Department analysis, the Fire Department previously completed a Community Risk Assessment/Standards of Cover analysis (“CRA/SOC”) in 2024, which established a baseline evaluation of current service delivery and community risk. As the City continues to grow, there is a need to expand this effort into a comprehensive CRA/SOC Master Plan that incorporates future development, population growth, and long-term service demands.
Building on the 2024 CRA/SOC, the Master Plan will provide a forward-looking framework to guide staffing, station locations, and resource allocation to ensure the continued delivery of effective and reliable emergency services.
On February 24, 2026, the City Council approved an amendment to the fiscal year 2025-26 CIP budget increasing the budget amount to $62,356,562.
Discussion:
It is expected that the resulting Operational and Organizational Analysis report will serve as a comprehensive analysis and provide the Police Department with valuable data-based insight into how its existing resources are being utilized, whether such resources can be redeployed to reach the Police Department’s goals for officer availability, or if additional staff are needed.
Strategic planning based solely on calls for service or a ratio of officers-to-population is insufficient as it does not incorporate fluctuating workloads, trends, or community priorities.
AP Triton has conducted similar studies for police departments throughout California, demonstrating regional experience in line with state specific laws, policies, and community expectations. AP Triton has conducted an equivalent study with the City’s Fire Department and is familiar with the City’s General Plan and Growth Areas. The scope of services for the Operational and Organizational Analysis should include an assessment of the following:
Current Capabilities:
• Assess the baseline service delivery capabilities of patrol, investigations, dispatch, records, property, community service officers, and volunteers within the current resources and infrastructure.
• Assess the current capabilities to provide training and education to personnel, within the current resources and infrastructure.
• Assess current staff scheduling methodology.
• Assess capital facilities, equipment and vehicles.
Item 9.b
• Assess community expectations through meetings and surveys.
Future Needs:
• Project future service and staffing needs based on current capabilities, call volumes, workload trends, staffing levels, and population growth. • Provide recommendations regarding potential service expansion. • Recommend industry best practices for staffing based on patrol coverage, investigations, dispatch, records, property, evidence, and service delivery needs. • Recommend industry best practices for staffing management positions based on appropriate span of control and necessary subject matter expertise. • Recommend a strategy to address training staff needs to continue to provide the highest level of training for Police Department staff.
• Recommend options to leverage technology relative to meeting service level demands of the City over a 10-year time frame.
The Fire Department’s 2024 CRA/SOC provides a strong analytical foundation that can be expanded into a comprehensive Master Plan. The 2024 CRA/SOC provided the Fire Department with a report that outlined the capabilities of the Fire Department at that time and also the future needs of the Fire Department in relation to City growth and development.
Incorporating future growth projections and development patterns, the Master Plan effort would translate prior findings into a long-term strategy for staffing, deployment, and capital planning, ensuring service levels are maintained as the community continues to grow.
Similarly, the Operational and Organizational Assessment would result in a report outlining the current capabilities and future needs of the Police Department in relation to City growth and development. The report will include actionable steps to sustain adequate Police Department staffing levels for the next ten years, with a matrix which identifies immediate needs, future milestones, alternatives, estimated costs, and the consequences of not making improvements.
This study would ensure the Police Department can provide a level of service to meet the current and future needs of the community. This study would result in a single document covering the Fire Department’s Master Plan and Police Department’s Operational and Organizational Analysis.
This overall Budget Amendment will increase the CIP budget by $128,750. This Council action will adjust the fiscal year 2025-26 CIP Budget to $62,485,312.
Environmental Impact:
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project that has the potential to result in either a physical change in the environment or a reasonably foreseeable indirect physical change in the environment, pursuant to California Code of Regulations Title 14 Section 15378(b)(5).
Item 9.b
Fiscal Impact:
Funding for this onetime item will be supported through multiple sources: $28,080 from Fire Development Impact Fees to expand the CRA/SOC into a comprehensive Fire Master Plan, to specifically address future growth-related impacts; an additional $50,000 from Police Development Impact Fees to specifically address the portions of the report related to future growth-related impacts; and the remaining $50,670 will be covered through one-time salary savings within the Police Department. There is no additional General Fund funding requested at this time.
The amount of $128,750 will adjust the overall fiscal year 2025-26 CIP budget total from $62,356,562 to $62,485,312.
Amount Requested: $128,750
Funding Source: General Fund (1001), Police Development Impact Fees (4103), Fire Development Impact Fees (4104)
Budget Distribution: If approved by Council, the CIP budget will be amended by $128,750 and a project will be established with $50,670 from one-time FY26 Police Department Salary Savings (1001.60.6028100), $50,000 from Police Development Impact Fees (4103.60.0000.800), and $28,080 from Fire Development Impact Fees (4103.65.0000.800).
Alternatives:
The City Council could vote to delay or deny the execution of the contract. This is not recommended as doing so will leave the Police and Fire Departments without the detailed information needed to optimally meet the future needs of the community.
Strategic Plan Goal/Initiative:
Goal 1: Ensure Public Safety
Initiative 1A: Manage Changing Paradigm for Police
Goal #3: Protect City of Vacaville’s Quality of Life
Levine Act:
No
Attachments:
Resolution—Action Item
Attachment 1: Proposed Agreement with AP Triton, LLC for Operational and Organizational Analysis and Fire Department Master Plan
Attachment 2: AP Triton LLC Vacaville Public Safety Study Proposal Item 9.b
CITY OF VACAVILLE
RESOLUTION NO. 2026-
Resolution of the City Council of the City of Vacaville Authorizing the Police Chief to Enter into a Professional Services Agreement with AP Triton, LLC for a Police Department Operational and Organizational Assessment and Fire Department Master Plan at a Total Cost of $128,750; and, Amending the Fiscal Year 2025-26 Capital Improvement Program Budget
Whereas, the Police Department desires to evaluate the City of Vacaville’s service delivery structure and resource deployment for its Police Department to ensure that the evolving needs of the community are met; and
Whereas, an Operational and Organizational Analysis will assess current Police Department service delivery, validate and update prior planning assumptions, and evaluate the current and future needs of the community; and
Whereas, the Fire Department desires to create a master plan to update and build upon the previously completed Community Risk Assessment and Standards of Cover (CRA-SOC) to evaluate current and projected growth, service demand, response expectations, facilities, apparatus, and fiscal considerations affecting the Fire Department’s ability to maintain and improve service delivery; and
Whereas, AP Triton, LLC is an industry leader with extensive experience in performing these services; and
Whereas, a Master Plan will generate strategies for growth, deployment, and necessary levels of service, and
Whereas, the City Manager of the City of Vacaville has submitted to the City Council of said City, a revised Capital Improvement Program (CIP) Budget for fiscal year 2025-26 in the amount of $62,485,312; and
Whereas, the City of Vacaville has sufficient funding from Fire Development Impact fees ($28,080 and Police Development Impact Fees ($50,000) and Police Department one-time salary savings ($50,670) to fund the amended amount for the Operational and Organizational Analysis and Master Plan Project.
Now, therefore, be it resolved by the City Council of the City of Vacaville that the City Council of the City of Vacaville does hereby authorize the Police Chief to enter into a Professional Services Agreement with AP Triton, LLC for an Operational and Organizational Analysis at a total cost of $128,750; and,
Item 9.b
Now, therefore, be it resolved by the City Council of the City of Vacaville by the City Council of the City of Vacaville that the amended Capital Improvement Program Budget of the City of Vacaville, for the fiscal year 2025-26 in the sum of $62,482,312 is approved and ratified in all particulars and is adopted as the official Capital Improvement Program Budget of the City of Vacaville for fiscal year 2025-26.
I hereby certify that the foregoing resolution was introduced and passed at a regular meeting of the City Council of the City of Vacaville, held on the 12th day of May 2026, by the following vote:
Ayes:
Noes:
Absent:
Attest:
_____________________________
Michelle A. Thornbrugh, City Clerk
Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
1 Attachment 1
AGREEMENT FOR CONSULTANT SERVICES
BETWEEN THE CITY OF VACAVILLE AND
AP TRITON, LLC
FOR
A POLICE DEPARTMENT OPERATIONAL AND ORGANIZATIONAL ASSESSMENT AND
FIRE DEPARTMENT MASTER PLAN
THIS AGREEMENT is made and entered into on the date last written below, by and between the CITY OF VACAVILLE, a municipal corporation (hereinafter "CITY"), and AP TRITON, LLC, a Wyoming limited liability company, with a principal place of business at 1309 Coffeen Avenue, Suite 3178, Sheridan WY 82801 (hereinafter “CONSULTANT”).
R E C I T A L S
The purpose for which this AGREEMENT is made, and all pertinent recitals, are listed on EXHIBIT A, entitled “RECITALS,” which is attached hereto and incorporated herein.
THE PARTIES HEREBY AGREE AS FOLLOWS:
SECTION 1. SCOPE OF SERVICES.
CONSULTANT shall perform those services specified in detail in EXHIBIT B, entitled “SCOPE OF SERVICES,” which is attached hereto and incorporated herein.
SECTION 2. TERM OF AGREEMENT.
The term of this AGREEMENT shall be from (check one):
The date of this AGREEMENT last written below to April 1, 2027, inclusive, subject to the provisions of SECTION 12 of this AGREEMENT.
to , inclusive, subject to the provisions of SECTION 12 of this AGREEMENT.
SECTION 3. SCHEDULE OF PERFORMANCE.
The services of CONSULTANT are to be completed according to the schedule set out in EXHIBIT C, entitled "SCHEDULE OF PERFORMANCE,” which is attached hereto and incorporated herein. Time is of the essence in this AGREEMENT.
SECTION 4. COMPENSATION.
The compensation to be paid to CONSULTANT, including both payment for professional services and reimbursable expenses, shall not exceed one hundred twenty-eight thousand seven hundred fifty Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
2 dollars ($128,750). The rate and schedule of payment are set out in EXHIBIT D, entitled "COMPENSATION," which is attached hereto and incorporated herein.
SECTION 5. METHOD OF PAYMENT.
Each month, CONSULTANT shall furnish to CITY a statement of the work performed for compensation during the preceding month. Such statement shall also include a detailed record of the month's actual reimbursable expenditures permitted hereunder. Statements furnished by CONSULTANT under this AGREEMENT must be in a form acceptable to CITY. All amounts paid by CITY to CONSULTANT shall be subject to audit by CITY. Should a statement identify a charge which is contested by CITY, CITY will issue payment in the amount of the total uncontested portion. Payment of the contested portion will be made upon CITY’s receipt of any requested documentation verifying the contested amount(s) and CITY’s determination that the contested amount(s) is due and payable under the terms of this AGREEMENT.
SECTION 6. INDEPENDENT CONTRACTOR.
A. CONSULTANT shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs its required services under the terms of this AGREEMENT. CONSULTANT shall be liable for its acts and omissions and those of its employees and agents. Nothing contained herein shall be construed as creating an employment, agency, or partnership relationship between CITY and CONSULTANT.
B. Terms in this AGREEMENT referring to direction received from the CITY shall be construed as providing instructive guidelines to CONSULTANT, and not as a means of controlling or specifically directing CONSULTANT in connection with the performance of the work.
C. Notwithstanding any other CITY, state, or federal policy, rule, regulation, law, or ordinance to the contrary, CONSULTANT and its employees, agents, and subcontractors providing services under this AGREEMENT shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or incident of employment by CITY, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of CITY and entitlement to any contribution to be paid by CITY for employer contributions and/or employee contributions for PERS benefits.
Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
3 SECTION 7. ASSIGNABILITY.
A. The parties agree that the expertise and experience of CONSULTANT are material considerations for this AGREEMENT. CONSULTANT shall not assign or transfer any interest in this AGREEMENT nor the performance of any of CONSULTANT's obligations hereunder, without the prior written consent of CITY, and any attempt by CONSULTANT to so assign or transfer this AGREEMENT or any rights, duties or obligations arising hereunder shall be void and of no effect.
B. Work under this AGREEMENT shall only be performed by competent personnel under the supervision of CONSULTANT. CONSULTANT will conform to CITY’s reasonable requests regarding assignment of personnel, but all personnel, including those assigned at CITY’s request, shall be supervised solely by CONSULTANT.
SECTION 8. INDEMNIFICATION AND DEFENSE.
A. INDEMNITY.
To the fullest extent allowed by law, CONSULTANT shall indemnify and hold harmless CITY and its officers, officials, employees, volunteers, and agents from and against damages, liabilities, or costs of all types including consequential, incidental, and special damages, court costs, reasonable attorney’s fees as may be determined by the Court, litigation expenses and fees of expert witnesses incurred in connection therewith, and costs of investigation to the extent they are caused by the negligence, recklessness, or willful misconduct of CONSULTANT, or any subconsultants, or subcontractor, or anyone directly or indirectly employed by them, or anyone for whom they are legally liable (collectively “Liabilities”), whether or not CITY accepted or approved any service or work product performed or provided by CONSULTANT hereunder, and whether or not such Liabilities are litigated, settled, or reduced to judgment. In the event that a final decision or judgment allocates liability by determining that any portion of damages awarded is attributable to CITY’s negligence or willful misconduct, CITY shall pay the portion of damages which is allocated to CITY’s negligence or willful misconduct, provided that CITY shall not be liable for any passive negligence of CITY or its officers, officials, employees, agents, and volunteers in reviewing, accepting, or approving any service or work product performed or provided by CONSULTANT.
Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
4 B. OBLIGATION TO DEFEND.
CONSULTANT shall, upon CITY’s request, defend with counsel approved by CITY (which approval shall not be unreasonably withheld), at CONSULTANT’s sole cost and expense, any action, claim, suit, cause of action, or portion thereof which asserts or alleges liabilities resulting from any allegedly negligent act, omission, misconduct, or other legal fault of CONSULTANT or its officers, employees, subcontractors, or agents in connection with the performance or nonperformance of this AGREEMENT, whether or not such action, claim, suit, cause of action, or portion thereof is well founded or lacking in merit.
C. INSURANCE IN ADDITION TO OBLIGATION TO INDEMNIFY AND DEFEND.
The defense and indemnification obligations of this AGREEMENT are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained in this AGREEMENT.
CONSULTANT’s responsibility for such defense and indemnity obligations shall survive the termination or completion of this AGREEMENT for the full period of time allowed by law.
SECTION 9. INSURANCE REQUIREMENTS AND WAIVER OF SUBROGATION.
A. INSURANCE POLICIES.
Prior to commencing services and for the duration of this AGREEMENT, CONSULTANT agrees to have and maintain, for a period of not less than five (5) years after completion of this AGREEMENT, the policies of insurance, and otherwise comply with all obligations, set forth in EXHIBIT E, entitled "INSURANCE," which is attached hereto and incorporated herein. All policies, endorsements, certificates, and/or binders shall be subject to approval by CITY’s Risk Manager as to form and content. These requirements are subject to amendment or waiver only if so approved in writing by CITY’s Risk Management. CONSULTANT agrees to provide CITY project manager with a copy of said policies, endorsements, certificates, and/or binders before work commences under this AGREEMENT. Acceptance of insurance certificates or endorsements required under EXHIBIT E of this AGREEMENT does not relieve or decrease the liability of CONSULTANT under this AGREEMENT.
B. WAIVER OF SUBROGATION.
All insurance policies required under this AGREEMENT shall include a waiver of subrogation endorsement by which CONSULTANT’s insurer agrees to waive all subrogation rights against CITY and its Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
5 officers, officials, employees, and volunteers for losses arising from work performed by CONSULTANT for CITY. CONSULTANT agrees to waive rights of subrogation against CITY in connection with services provided under this AGREEMENT, regardless of whether an insurance endorsement is issued to this effect.
SECTION 10. NONDISCRIMINATION.
At all times during the term of this AGREEMENT, CONSULTANT will comply with all applicable federal, state, and local laws, rules, and regulations prohibiting discrimination and shall not discriminate in any way against any person based on race, ethnicity, color, national origin, religion, marital status, age, sex, sexual orientation, disability (including any physical or mental impairment that substantially limits a major life activity), medical condition, or any protected class.
SECTION 11. STANDARD OF CARE.
CONSULTANT shall perform its services consistent with the specialized expertise and professional skill and care ordinarily provided by consultants practicing in the same or similar locality under the same or similar circumstances. CONSULTANT shall perform its services as expeditiously as is consistent with such specialized expertise and professional skill and care, and the orderly progress of this AGREEMENT.
SECTION 12. TERMINATION.
A. CITY shall have the right to terminate this AGREEMENT, without cause, by giving not less than seven (7) days’ written notice of termination.
B. If CONSULTANT fails to perform any of its material obligations under this AGREEMENT, in addition to all other remedies provided by law, CITY may terminate this AGREEMENT immediately upon written notice.
C. In accordance with Article XVI, Section 18 of the California Constitution, if in any fiscal year subsequent to the execution of this AGREEMENT, CITY fails to appropriate money for the purpose of funding this AGREEMENT, this AGREEMENT shall terminate, without penalty, effective upon the close of business on the last day of the fiscal year for which funding has been appropriated.
D. CITY's Chief of Police or his/her authorized designee is empowered to terminate this AGREEMENT on behalf of CITY.
Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
6 E. In the event of termination, CONSULTANT shall deliver to CITY copies of all reports, documents, and other work performed by CONSULTANT under this AGREEMENT and, upon receipt thereof, CITY shall pay CONSULTANT for the reasonable value of services performed to the date of termination.
F. Except as expressly provided in this AGREEMENT, in no event shall CITY be liable for costs incurred by or on behalf of CONSULTANT after the effective date of a notice of termination.
G. Termination under this SECTION shall not be construed as a waiver of any right or remedy otherwise available to CITY.
SECTION 13. GOVERNING LAW.
CITY and CONSULTANT agree that the law governing this AGREEMENT, and all claims or causes of actions (whether in contract, tort, or statute that may be based upon, arise out of, or relate to this AGREEMENT, or the negotiation, execution, or performance of this AGREEMENT, including any claim or cause of action based upon, arising out of, or related to any representation or warranty made in or connection with this AGREEMENT or as an inducement to enter into this AGREEMENT), shall be governed by, and enforced in accordance with, the internal laws that of the State of California, including its statute of limitations, without regard to any conflict of law principles.
SECTION 14. COMPLIANCE WITH LAWS; PERMITS AND LICENSES.
CONSULTANT shall comply with all applicable laws, ordinances, codes, and federal, state, and local government regulations. CONSULTANT’s failure to comply with any laws, ordinances, codes, or regulations applicable to the performance of the work hereunder shall constitute a breach of this AGREEMENT. CONSULTANT represents and warrants to CITY that CONSULTANT has and will maintain during the term of this AGREEMENT all licenses (including, but not limited to, a City of Vacaville business license unless exempted), permits, qualifications, and approvals of whatsoever nature which are legally required for CONSULTANT to practice its profession or perform the services required hereunder.
SECTION 15. CONFIDENTIAL INFORMATION.
CONSULTANT understands and agrees that, in the performance of the services under this AGREEMENT, CONSULTANT may have access to private or confidential information that may be owned or Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
7 controlled by CITY, and that such information may contain proprietary or confidential details, the disclosure of which to third parties may be damaging to CITY. CONSULTANT agrees that, absent express written consent of CITY, all information disclosed by CITY to CONSULTANT shall be held in confidence and used only in performance of the AGREEMENT. CONSULTANT shall exercise the same standard of care to protect such information as a reasonably prudent consultant would use to protect its own proprietary data.
SECTION 16. OWNERSHIP OF MATERIALS.
This AGREEMENT creates a nonexclusive and perpetual license for CITY to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by CONSULTANT under this AGREEMENT (''Documents & Data"). CONSULTANT shall require all subcontractors to agree in writing that CITY is granted a nonexclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. CONSULTANT represents and warrants that CONSULTANT has the legal right to license any and all Documents & Data. CONSULTANT makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than CONSULTANT or provided to CONSULTANT by the CITY. CITY shall not be limited in any way in its use or modification of the Documents and Data at any time, provided that any such use or modification not within the purposes intended by this AGREEMENT shall be at CITY’s sole risk.
SECTION 17. WAIVER.
CONSULTANT agrees that waiver by CITY of any breach or violation of any term or condition of this AGREEMENT shall not be deemed to be a waiver of any other term or condition contained herein or a waiver of any subsequent breach or violation of the same or any other term or condition. The acceptance by CITY of the performance of any work or services by CONSULTANT shall not be deemed to be a waiver of any term or condition of this AGREEMENT.
Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
8 SECTION 18. CONSULTANT'S BOOKS AND RECORDS.
A. CONSULTANT shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to CITY, for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to CONSULTANT pursuant to this AGREEMENT.
B. CONSULTANT shall maintain all documents and records which demonstrate performance under this AGREEMENT for a minimum period of three (3) years, or for any longer period required by law, from the date of termination or completion of this AGREEMENT.
C. Any records or documents required to be maintained pursuant to this AGREEMENT shall be made available for inspection or audit at any time during regular business hours upon written request by CITY’s City Attorney, City Manager, or a designated representative of either of these officers. Copies of such documents shall be provided to CITY for inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at CONSULTANT's address indicated for receipt of notices in this AGREEMENT.
D. Where CITY has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment, or termination of CONSULTANT's business, CITY may, by written request by any of the above-named officers, require that custody of such records and documents be given to CITY and that such records and documents shall be maintained in City Hall. Access to such records and documents shall be granted to any party authorized by CONSULTANT, CONSULTANT's representatives, or CONSULTANT's successor-in-interest during regular business hours.
E. The rights and obligations of this SECTION shall be specifically enforceable and survive termination of this AGREEMENT.
SECTION 19. CONFLICT OF INTEREST.
CONSULTANT shall avoid all conflicts of interest or the appearance of a conflict of interest in the performance of this AGREEMENT.
Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
9 SECTION 20. SPECIAL PROVISIONS.
Special provisions, if any, to this AGREEMENT are specified in EXHIBIT F, entitled, "SPECIAL PROVISIONS," which is attached hereto and incorporated herein.
SECTION 21. NOTICES.
All notices and other communications required or permitted to be given under this AGREEMENT shall be in writing and shall be personally served or mailed, postage prepaid and addressed to the respective parties as follows:
TO CITY: David Casalnuovo, Project Manager
City of Vacaville
660 Merchant Street
Vacaville, CA 95688
ATTENTION: Police Department
TO CONSULTANT: AP Triton, LLC
1309 Coffeen Ave., Ste. 3178
Sheridan, WY 82801
ATTENTION: Kurt P. Henke
Notice shall be deemed effective on the date personally delivered or, if mailed, three (3) days after deposit in the mail.
SECTION 22. CLAIMS AGAINST CITY.
In the event any claim or cause of action is brought against CITY by CONSULTANT or its officers, employees, subconsultants, subcontractors, or agents in connection with the performance or nonperformance or arising out of or in any way connected to this AGREEMENT or the duties and obligations contemplated herein, CONSULTANT and its officers, employees, subconsultants, subcontractors, or agents must comply with Vacaville Municipal Code (VMC) Chapter 1.10, as may be amended from time to time. Any claims arising out of or in any way connected to this AGREEMENT, the performance or non-performance hereof, or the duties and obligations contemplated herein must be presented in writing to CITY no later than six (6) months after the accrual of the cause of action and such claims shall be governed by the provisions of VMC Chapter 1.10, as may be amended from time to time.
No lawsuit, complaint, or cause of action arising out of or in any way connected with this AGREEMENT, Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
10 the performance or non-performance hereof, or the duties and obligations contemplated herein may be brought against CITY, or any officer, employee, board, commission, or authority of CITY, until a written claim has been presented to CITY’s City Council (by and through CITY’s City Clerk) and has been acted upon or has been deemed to have been rejected by CITY.
SECTION 23. VENUE AND JURISDICTION.
In the event that suit shall be brought by either party to this AGREEMENT, the parties agree that venue shall be exclusively vested in the state courts of the County of Solano or, where otherwise appropriate, exclusively in the United States District Court, Eastern District of California, Sacramento, California. By entering into this AGREEMENT and performing work or providing services hereunder, CONSULTANT consents to jurisdiction over their persons and over the subject matter of any claim or legal action in such courts, and consents to service of process issued by such courts. Unless otherwise specified below, CONSULTANT hereby designates the person listed in Section 21 (Notices) as its agent for service of process for this purpose.
ALTERNATE CONTACT FOR SERVICE OF PROCESS (Optional):
AP TRITON, LLC
6720 Browns Road
Placerville, CA 95667
Attn: Scott A. Clough
SECTION 24. INTERPRETATION.
Each party has reviewed this AGREEMENT and any question of doubtful interpretation shall not be resolved by any rule or interpretation providing for interpretation against the drafting party. This AGREEMENT shall be construed as if both parties drafted it. The captions and headings contained herein are for convenience only and shall not affect the meaning or interpretation of this AGREEMENT.
SECTION 25. SIGNATOR’S WARRANTY.
Each party warrants to each other party that he or she is fully authorized and competent to enter into this AGREEMENT in the capacity indicated by his or her signature and agrees to be bound by this AGREEMENT.
Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
11 SECTION 26. ELECTRONIC SIGNATURES AND COUNTERPARTS.
As permitted under the U.S. Electronic Signatures in Global and National Commerce (ESIGN) Act of 2000, and the Uniform Electronic Transactions Act (UETA), the parties hereby agree to conduct this transaction by electronic means. Accordingly, this AGREEMENT may be executed through an electronic signature and may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The parties agree that the electronic signatures appearing on this AGREEMENT are intended by each party using it to have the same force and effect as the use of a manual signature for the purposes of validity, enforceability, and admissibility.
SECTION 27. PRIOR AGREEMENTS AND AMENDMENTS.
This AGREEMENT, including all Exhibits attached hereto, represents the entire understanding of the parties as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This AGREEMENT may only be modified by a written amendment duly executed by the parties to this AGREEMENT.
SECTION 28. SEVERABILITY.
If any part of this AGREEMENT or the application thereof is declared invalid for any reason, such invalidity shall not affect the other provisions of this AGREEMENT which can be given effect without the invalid provision and to that end the provisions of this AGREEMENT are declared to be severable.
SECTION 29. SURVIVAL.
The following sections shall survive the expiration or termination of this AGREEMENT: SECTIONS 6, 8, 13, 15, 16, 22, 23, 24, and 25.
[SIGNATURES ON THE FOLLOWING PAGE]
Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
12 WITNESS THE EXECUTION HEREOF on the day and year last written below.
APPROVED AS TO FORM:
Andria Borba, City Attorney
By:
David Nam, Assistant City Attorney
“CITY”
CITY OF VACAVILLE, a municipal corporation
By:
Chris Polen, Chief of Police
Dated:
“CONSULTANT”
AP Triton, a Wyoming limited liability company
By:
Kurt P. Henke, Member
Dated:
By:
Scott A. Clough, Member
Dated:
Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
13 EXHIBIT A
RECITALS
WHEREAS, CITY desires to retain CONSULTANT to conduct an operational and organizational assessment to analyze the current and future staffing, infrastructure, and community needs of the Police Department, as further described in the Scope of Services attached hereto as EXHIBIT B; and WHEREAS, CITY retained the services of CONSULTANT in 2023 to complete a Community Risk Assessment and Standards of Cover (CRA-SOC) for CITY’s Fire Department, which was completed in 2024; and
WHEREAS, this AGREEMENT was procured through a single source, as the scope of work requires specialized skills, familiarity with CITY systems and data, and an alternative source with comparable expertise declined to provide a proposal; and
WHEREAS, CONSULTANT has the necessary professional expertise, experience, personnel, and skill to perform such services.
NOW, THEREFORE, the purpose of this AGREEMENT is to retain AP TRITON, LLC, a Wyoming limited liability company as CONSULTANT to CITY to perform those services specified in SECTION 1 and EXHIBIT B of this AGREEMENT.
_____________________________________________________
[REMAINDER INTENTIONALLY LEFT BLANK]
Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
14 EXHIBIT B
SCOPE OF SERVICES
CONSULTANT shall provide the following services: evaluating Fire and Police services to support immediate organizational decision-making and long-range service planning. Using prior work products, updated GIS and incident analysis, stakeholder input, field observations, and current operational and planning data, CONSULTANT will provide CITY with a refreshed and expanded Fire planning document that reflects CITY’s present conditions and future needs.
Additionally, CITY’s Police Department seeks a forward-looking organizational and operational analysis focused on aligning staffing, deployment, supervision, facilities, fleet, and support systems with current and future service demands.
This study will provide more than a staffing count analysis. It will evaluate how CITY’s Police Department is currently organized, how personnel and supervisory resources are allocated, how demand varies by function and geography, whether current beat structure and deployment remain aligned with CITY’s development patterns, and whether specialty assignments, professional staff roles, dispatch support structures, facilities, and fleet resources are effectively supporting service delivery.
This study will analyze supervisory span of control, dispatch supervisory structure, beat alignment with community growth, evaluation of professional staff functions, specialty unit effectiveness, facility capacity and geographic suitability, and future operational needs tied to City of Vacaville growth and organizational succession. The study will therefore be structured to provide actionable findings and recommendations that can support both immediate decision-making and a longer-range planning horizon.
The Police component will place strong emphasis on objective performance validation, workload and staffing analysis, and development of practical future strategies that CITY leadership can use in planning for the next decade and beyond.
This project is intended to build upon CONSULTANT’s previously completed Community Risk Assessment and Standards of Cover (CRS-SOC) that was approved by CITY’s City Council in 2023. This project will refresh and expand the CRS-SOC effort into a broader Fire Master Plan, while concurrently conducting a first-time organizational and operational analysis of CITY’s Police Department.
CONSULTANT’s proposal is attached hereto as Exhibit B-1 and incorporated herein by reference. _____________________________________________________
[REMAINDER INTENTIONALLY LEFT BLANK]
Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
15 EXHIBIT C
SCHEDULE OF PERFORMANCE
Work shall commence immediately upon execution of this AGREEMENT and in accordance with the estimated project timeline specified in CONSULTANT’s proposal, attached hereto as Exhibit B-1 and incorporated herein by reference. The time for completion is April 1, 2027. _____________________________________________________
[REMAINDER INTENTIONALLY LEFT BLANK]
Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
16 EXHIBIT D
COMPENSATION
CITY agrees to compensate CONSULTANT up to one hundred twenty-eight thousand seven hundred fifty dollars ($128,750) for professional services performed in accordance with the terms and conditions of this AGREEMENT.
The maximum amount of compensation to be paid to CONSULTANT under this AGREEMENT, including both payment for professional services and reimbursable expenses, shall not exceed one hundred twenty-eight thousand seven hundred fifty dollars ($128,750). CONSULTANT shall not be entitled to any additional compensation unless CITY, after receiving written notice from CONSULTANT, approves in writing such additional compensation.
Reimbursable expenses shall include the reasonable cost of: N/A. _____________________________________________________
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Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
17 EXHIBIT E
INSURANCE
In all instances where CONSULTANT or its representatives will provide consulting services to CITY, it shall be a requirement under this AGREEMENT that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits shall be available to CITY and its directors, officers, representatives, employees, consultants, and agents as Additional Insured.
Furthermore, the requirements for coverage and limits shall be (1) the minimum coverage and limits specified in this AGREEMENT; or (2) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named Insured; whichever is greater. No representation is made that the minimum insurance requirements of this AGREEMENT are sufficient to cover the obligations of the CONSULTANT under this AGREEMENT.
CONSULTANT shall procure and maintain insurance against claims for injuries to persons, damage to property, or economic losses which may arise from or in connection with the performance of the work hereunder and the results of that work by CONSULTANT and its agents, representatives, employees or subcontractors.
CONSULTANT agrees that in the event of loss due to any of the perils for which it has agreed to provide Commercial General and Auto Liability insurance, CONSULTANT shall look solely to its insurance for recovery. Accordingly, CONSULTANT hereby grants to CITY, on behalf of any insurer providing Commercial General and Automobile Liability insurance to either CONSULTANT or CITY with respect to the services of CONSULTANT herein, a waiver of any right to subrogation, which any such insurer of said CONSULTANT may acquire against CITY by virtue of the payment of any loss under such insurance.
Original signed certificates and separate policy endorsements naming the City of Vacaville as Additional Insured for general liability, and a waiver of subrogation for Workers’ Compensation, shall be received and approved by CITY before any work may begin. However, failure to do so shall not operate as a waiver of these insurance requirements.
Minimum Scope of Insurance – the following forms shall be provided and coverage shall be at least as broad as the following:
1. Insurance Services Office Commercial General Liability Insurance coverage (ISO Occurrence Form CG 0001).
2. Original and separate Additional Insured Endorsements for General Liability On-Going Operations (ISO Form CG 20 10 or 20 26, Scheduled Form, or 20 38 Automatic Form).
3. Original and separate Endorsement for Primary and Non-Contributory insurance coverage (ISO Form CG20 01 Scheduled Form, or 20 40 Automatic Form).
4. Insurance Services Office Automobile Liability coverage (ISO Form CA 0001, Code 1, Any Auto).
5. Workers’ Compensation Insurance as required by the State of California including Employer’s Liability coverage.
Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
18 6. Original and separate Waiver of Subrogation for Workers’ Compensation Insurance and Commercial General Liability Insurance.
7. Professional Liability or Errors and Omissions Liability Insurance appropriate to CONSULTANT’s profession.
Required Coverage Minimum Limits
General Liability
(primary and excess limits
combined)
Minimum coverage $3,000,000 per occurrence and $3,000,000 aggregate.
Includes coverage for bodily injury, personal injury and property damage. If the policy includes a general aggregate, either the general aggregate shall apply separately to this project, service or location or the minimum required aggregate limit shall be twice the per occurrence limit.
Policy shall be endorsed to name the City of Vacaville as Additional Insured per the conditions detailed below.
Workers’ Compensation and
Employers’ Liability
Statutory limits as required by the State of California including $1,000,000 Employers’ Liability per accident, per employee for bodily injury or disease. If CONSULTANT is self-insured, provide a certificate of Permission to Self-Insure, signed by the California Department of Industrial Relations and Self-Insurance.
If CONSULTANT is not required by the State of California to carry Workers’ Compensation or Employers’ Liability insurance, CONSULTANT agrees to complete the Workers’ Compensation Declaration provided by CITY. CONSULTANT agrees that if their Workers’ Compensation requirement status changes while
CONSULTANT is performing work under this AGREEMENT,
CONSULTANT will provide CITY evidence of such Workers’
Compensation coverage in compliance with the terms of this AGREEMENT.
Professional Liability or Errors
and Omissions Liability
Minimum coverage $2,000,000 per claim and $2,000,000 aggregate (on a claims made basis).
Required Policy Conditions
Additional Insured
Endorsement - On-Going
Operations
The City of Vacaville, its officers, officials, employees, agents and volunteers are to be named as Additional Insured for all liability in any way caused, in whole or in part, actively or passively, by the named insured in the performance of this AGREEMENT. All coverage available to the named insured shall also be available and applicable to the CITY as Additional Insured.
Additional Insured On-Going Operations Coverage shall be at least as broad as ISO Form CG 20 10 04 13 or 20 26 scheduled, or 20 38 Automatic.
Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
19 If ISO Additional Insured Endorsement is 2013 or 2019 CONSULTANT aggregate limits will apply per project (ISO CG 25 03) or location (ISO CG 25 04).
Primary and Noncontributory
Endorsement
The Additional Insured coverage under the CONSULTANT’s policy shall be Primary and Noncontributory and will not seek
contribution from the CITY’s insurance or self-insurance and shall be at least as broad as ISO Form CG 20 01.
Complete Copy of Liability
Policies
(applicable if using Umbrella or
Excess policies to meet General
Liability coverage
requirements)
CONTRACTOR will provide a complete copy of all Excess or Umbrella liability policies used to meet the Commercial General Liability coverage requirements, with all endorsements.
A. M. Best Rating A-:VII or better. If the A.M. Best Rating falls below the required rating, CONSULTANT must replace coverage immediately and provide prompt notice to CITY.
Waiver of Subrogation
Endorsement
CONSULTANT’s insurer will provide a Waiver of Subrogation endorsement in favor of CITY for Workers Compensation coverage, and Commercial General Liability coverage (at least as broad as ISO CG 24 53 or 24 04), during the life of this AGREEMENT.
Deductibles and Self-Insured
Retentions
1. All deductibles and self-insured retentions (SIR) greater than $50,000 must be disclosed to and approved by CITY’s Risk Management and shall not reduce the limits of liability. If CONSULTANT’s SIR is greater than $50,000, CONSULTANT will provide Evergreen Letter of Credit, Financials, Collateral, Bond, etc., sufficient to cover the SIR.
2. Policies containing any SIR provision shall provide or be endorsed to provide that the SIR may be satisfied by either the named Insured or CITY.
3. At the option of CITY either the insurer shall reduce or eliminate such deductibles or SIR as respects CITY; or CONSULTANT shall procure a financial guarantee in an amount equal to the deductible or SIR retention guaranteeing payment of losses and related investigations, claims administration, and defense expenses.
Umbrella/Excess Liability Policies
The limits of insurance required in this AGREEMENT may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall be at least as broad as specified for the underlying coverages and cover those insured in the underlying policies. Any umbrella or excess insurance shall also apply on a Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
20 Primary and Noncontributory basis for the benefit of CITY before CITY’s own insurance or self-insurance shall be called upon to protect it as a named insured.
If any Excess or Umbrella Liability policies are used to meet the limits of liability required by this AGREEMENT, then said policies shall be true “following form” of the underlying policy coverage, terms, conditions, and provisions and shall meet all the Insurance requirements stated in this document, including the additional insured, SIR, and primary Insurance requirements stated therein.
No Insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until CONSULTANT’s primary and excess liability policies are exhausted.
Claims-Made Policies
If any insurance policy is written on a claims-made form, the following conditions apply: 1) the retroactive date must be shown and must be before the date of this AGREEMENT, 2) the insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work, and 3) if coverage is canceled or non-renewed, and not replaced with another claims- made policy form with a retroactive date prior to the effective date of this AGREEMENT, CONSULTANT must purchase an extended period coverage for a minimum of five (5) years after completion of contract work.
Subcontractors
CONSULTANT shall include the following language in their agreement with subcontractors:
“Subcontractor hired by CONSULTANT agree to be bound to the CONSULTANT and the City of Vacaville in the same manner and to the same extent as the CONSULTANT is bound to City of Vacaville under the Contract Documents and provide a valid certificate of insurance and the required endorsement included in the AGREEMENT as proof of compliance prior to commencement of any work and to include this same requirement for any subcontractors they hire for this work. Subcontractor further agrees to include the same indemnity and insurance provisions contained in the City Contract Document, to the extent they apply to the scope of the sub-subcontractor’s work. A copy of the CITY Contract Document indemnity and insurance provisions will be furnished to subcontractor upon request.” CONSULTANT shall provide proof of such compliance and verification to the CITY upon request.
CONSULTANT is responsible for verifying subcontractors’ insurance policies and endorsements.
CONSULTANT agrees to furnish to CITY upon request proof of insurance coverage for CONSULTANT’s subcontractors.
CONSULTANT agrees to defend and indemnify CITY for any damage resulting from failure of either CONSULTANT or any subcontractor to take out or maintain the required insurance policies. The fact that insurance is obtained by CONSULTANT and/or CONSULTANT’s subcontractors will not be deemed to release or diminish the liability of CONSULTANT, including, without limitation, liability under the indemnity provisions of this AGREEMENT. Damages recoverable by CITY from CONSULTANT or any third party will not be limited by the amount of the required insurance coverage. ______________________________________________________
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Item 9.b
Agreement for Consultant Services (CAO Rev 07.2025)
21 Verification of Coverage
All original certificates and endorsements shall be received and approved by CITY before work may begin.
CITY reserves the right to obtain full certified copy of any insurance policy and endorsements. Failure to exercise this right shall not constitute a waiver of right to exercise later.
Original insurance certificates and required policy endorsements shall be mailed, or delivered to CITY’s Project Manager. Insurance certificates and endorsements may be emailed or faxed to CITY’s Project Manager. However, CONSULTANT must mail the original certificates and endorsements to CITY’s Project Manager once emailed or faxed.
CITY’s Project Manager
NAME: David Casalnuovo, Sergeant
ADDRESS: 660 Merchant Street
Vacaville, CA 95688
EMAIL: [email protected]
PHONE: (707) 449-5290
Continuous Coverage
CONSULTANT shall maintain the required insurance for a period of at least one hundred and eighty (180) days (except as required under Claims-Made Policies) after final payment has been made by CITY to CONSULTANT pursuant to this AGREEMENT. Should CONSULTANT cease to have insurance as required during this time, all work by CONSULTANT pursuant to this AGREEMENT shall cease until insurance acceptable to CITY is provided. Maintenance of proper insurance coverage is a material element of this AGREEMENT. Failure to maintain or renew coverage or to provide evidence of renewal may be treated by CITY as a material breach of this AGREEMENT. In the event that CONSULTANT fails to comply with CITY’s insurance requirements, CITY may take such action as it deems necessary to protect CITY’s interests.
Such action may include but is not limited to termination of this AGREEMENT, withholding of payments, CITY taking out such insurance and deducting and retaining the amount of the premium from any sum due to CONSULTANT under this AGREEMENT, or other actions as CITY deems appropriate.