City of Visalia Final ACFR FY 24-25 — Visalia City Council, January 20, 2026 (part 1 of 2)

State of California

City of Visalia

Annual Comprehensive Financial Report

Fiscal Year Ended June 30, 2025

CITY OF VISALIA

STATE OF CALIFORNIA

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

For the Year Ended June 30, 2025

Prepared by the Finance Department

707 W. Acequia Ave.

Visalia, California 93291

(559) 713-4298

VI SALI A

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

Table of Contents

TABLE OF CONTENTS
Page

INTRODUCTORY SECTION:

Letter of Transmittal .......................................................................................................................................... i Organizational Chart .......................................................................................................................................... xii GFOA Certificate of Achievement ...................................................................................................................... xiii

FINANCIAL SECTION:

Independent Auditors’ Report ........................................................................................................................... 1 Management’s Discussion and Analysis ............................................................................................................ 4

Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ............................................................................................................................ 30 Statement of Activities ................................................................................................................................. 31

Fund Financial Statements:

Governmental Funds:

Balance Sheet ............................................................................................................................................... 34 Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position ................... 37 Statement of Revenues, Expenditures, and Changes in Fund Balance ......................................................... 38 Reconciliation of the Net Changes in Fund Balances – Governmental Funds with the Change in Net Position of Governmental Activities ...................................................................................... 41

Proprietary Funds:

Statement of Net Position ............................................................................................................................ 44 Statement of Revenues, Expenses, and Changes in Fund Net Position ........................................................ 46 Statement of Cash Flows .............................................................................................................................. 48

Fiduciary Funds:

Statement of Fiduciary Net Position ............................................................................................................. 51 Statement of Changes in Fiduciary Net Position – Fiduciary Funds .............................................................. 52

Notes to Basic Financial Statements ................................................................................................................ 53

Required Supplementary Information:

Notes to the Budgetary Comparison Schedule ............................................................................................. 107 Budgetary Comparison Schedule:

General Fund ............................................................................................................................................ 1 08 Measure N ................................................................................................................................................ 110 American Rescue Plan .............................................................................................................................. 1 11 Schedule of Changes in Net Pension Liability and Related Ratios - Miscellaneous Plan .............................. 112 Schedule of Changes in Net Pension Liability and Related Ratios - Safety Plan ........................................... 114 Schedule of Contributions ............................................................................................................................ 116

Supplementary Information:

Budgetary Comparison Schedule:

Transportation ......................................................................................................................................... 1 19 Civic Center .............................................................................................................................................. 1 20

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 202 5

Table of Contents

FINANCIAL SECTION: (Continued) .................................................................................................................... Page

Non-major Governmental Funds:

Combining Balance Sheets ............................................................................................................................ 126 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance s ..................................... 135 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual…. ..... 144

Non-Major Proprietary Funds:

Combining Statement of Net Position .......................................................................................................... 164 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ...................................... 165 Combining Statement of Cash Flows ............................................................................................................ 166

Internal Service Funds:

Combining Statement of Net Position .......................................................................................................... 170 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ...................................... 172 Combining Statement of Cash Flows ............................................................................................................ 174

Custodial Funds:

Combining Statements of Fiduciary Net Position – Custodial Funds ............................................................ 180 Combining Statements of Changes in Fiduciary Net Position – Custodial Funds ......................................... 181

STATISTICAL SECTION:

Net Position by Component – Last Ten Fiscal Years ..................................................................................... 186 Changes in Net Position – Last Ten Fiscal Years ............................................................................................ 188 Fund Balances of Governmental Funds – Last Ten Fiscal Years .................................................................... 192 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................................. 194 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ............................................................. 196 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years............................ 198 Principal Property Tax Payers – Current Year and Nine Years Ago ............................................................... 199 Property Tax Levies and Collections – Last Ten Fiscal Years ......................................................................... 200 Historical Sales and Use Tax Rates ................................................................................................................ 201 Taxable Sales Transactions By Type – Last ten Calendar Years .................................................................... 202 Top 25 Sales Tax Contributors – 2024 Calendar Year and Nine Years Ago ................................................... 203 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ......................................................................... 204 Ratio of General Bonded Debt Outstanding – Last Ten Fiscal Years ............................................................. 206 Direct and Overlapping Debt ........................................................................................................................ 207 Legal Debt Margin Information – Last Ten Fiscal Years ................................................................................ 208 Pledged Revenue Coverage – Last Ten Fiscal Years ...................................................................................... 210 Demographic and Economic Statistics – Last Ten Fiscal Years ..................................................................... 211 Principal Employers – Current Year and Nine Years Ago .............................................................................. 212 Full-Time City Employees by Function – Last Ten Fiscal Years ...................................................................... 213 Operating Indicators by Function – Last Ten Fiscal Years ............................................................................. 214 Capital Asset Statistics by Function – Last Ten Fiscal Years .......................................................................... 216 Insurance in Force ......................................................................................................................................... 218

COMPLIANCE SECTION:

Bond Disclosure Requirements ........................................................................................................................ 221

Introductory
Section

Administration Department
Office of the City Manager

December 15, 2025

To the Honorable Mayor, City Council, and Citizens of the City of Visalia:

We are pleased to submit the City of Visalia’s (the City) Annual Comprehensive Financial Report (ACFR) for the fiscal year July 1, 20 24 through June 30, 20 25. The City Charter (Article VI - Section 17) requires that a licensed certified public accountant conduct an annual audit at the end of each fiscal year and issue a complete set of financial statements to be submitted to City Council. The ACFR is also intended to provide relevant financial information to the residents of Visalia, taxpayers, creditors, investors, and other interested parties. Like many financial reports, the ACFR is a “snapshot in time”. It reflects the financial condition of the organization at a specific point in time. The complex financial operations of a city are extremely dynamic and constantly undergoing change. This is not a document requiring dec ision-making or adjustment, it is a merely a reflection of a financial point in our history that provides an open and transparent review of our operations.

This letter of transmittal provides a non -technical summary of City finances, services, achievements, and economic prospects. We ask that readers who wish a more detailed discussion of the City's financial results refer to Management's Discussion & Analysis ("MD&A") contained in the Financial Section of the ACFR.

Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal contro l should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatement. This ACFR has been prepared in accordance with Generally Accepted Accoun ting Principles (GAAP) in the United States of America as promulgated by the Government Accounting Standards Board (GASB).

The City contracted with Brown Armstrong Accountancy Corporation, a firm of Certified Public Accountants licensed to practice in the State of California, to perform the annual independent audit . The auditors expressed an opinion that the City's financial statements for fiscal year 20 24-2025 are fairly stated in accordance with accounting principles generally accepted in the United States of America (GAAP). This is the most favorable conclusion and is commonly known as an "unmodified" or "clean" opinion. The independent auditor's report is included in front of the Financial Section of this report.

The ACFR is organized into four sections:

• The Introductory Section provides this transmittal letter which includes information about the governmental structure, economic activities of the community, and notable financial activities.

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2025

Letter of Transmittal
• The Financial Section includes the financial statements, notes, and supplemental information. It has management’s discussion and analysis (MD&A) which immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the Bas ic Financial Statements including notes, the Required Supplementary Information and Supplementary Information.

• The Statistical Section includes tables containing historical financial data, debt statistics, and miscellaneous social and economic data of potential interest to readers of financial documents. The data also includes ten-year revenue and expenditure data.

• The Compliance Section includes the Bond Disclosure Requirements.

CITY PROFILE
Basic Information
Visalia is located in the central San Joaquin Valley in California, approximately 185 miles north of Los Angeles and 220 miles south of San Francisco. Visalia is the county seat and principal trading center for Tulare County, which is currently one of the most productive agricultural counties in the United States.

Currently, the City has a land area of approximately 40 square miles with a n estimated population of 146,978 as of April 2025, making it the 4 0
th largest city in California (Department of Finance, State of California).

The City was founded in 1852, incorporated in 1874, and became a charter city in 1923. The charter was amended in 1974 and the City operates under a Council -Manager form of government. The City Council is comprised of five members who are elected to alternating four-year terms staggered every two years.

Beginning in November 2016, the Council elections moved from at -large elections to district -based elections. The Council selects two of its members to serve as Mayor and Vice Mayor for a two-year term.

City Council is responsible for making policy, passing ordinances, adopting the budget, appointing committees, and hiring the City Manager and the City Attorney. The City Manager is responsible for carrying out the ordinances and polices of the City Council, overseeing operations, and appointing, with Council approval, the City’s department heads.

Types of Services
The City provides a full range of municipal services including those required by statute or charter. These services include Police, Fire, Planning, Building Safety, Successor Agencies to Redevelopment, Housing and Economic Development, Wastewater Treatment and Collection, Storm Water Collection, Ground Water Recharge, Solid Waste, Streets, Parks, Traffic Safety, Transit, Airport, Recreation, Convention Center, Senior Center, and General Administrative Services.

BUDGET
The City Council is required to adopt a budget by no later than the close of the prior fiscal year. The budget is prepared on a two -year basis and serves as the foundation for the City’s fiscal planning and financial control. The budget is organized by departments (e.g., Parks and Recreation ), by funds (e.g.,

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2025

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Letter of Transmittal
Transportation), and by divisions (e.g., Planning). The City Manager may transfer appropriations within a fund, provided that the total appropriation is not increased.

The City's Capital Budget is considered as part of the City's Five-Year Capital Improvement Plan. The first two years of the capital expenditure plan is adopted with the two year budget.

ECONOMIC CONDITION
Fiscal year 2024-25 had growth in Visalia’s General Fund major revenue categories of Sales Tax, Property Tax, and Transient Occupancy Tax. At June 30, 2025, the California consumer price index stood at 3.0% and employment in the state continued to show signs of slowing as the unemployment rate had climbed to 5.4%, an increase from the June 30, 202 4 rate of 5.2%. Nationally, employment remained st eady as the national unemployment rate was at 4.1%, nearly at the natural unemployment rate of 4% that the Federal Open Market Committee wants to see.

Fiscal year 2024-25 ended the year with an overall increase of $3.0 million in the total economic-sensitive revenue category for the General Fund as shown in Table 1 – Economic Sensitive Revenues. Most of this increase is from Property Tax which had a $2.7 million increase over the prior year.

Table 1 - Economic Sensitive Revenues
(as shown in the Financial Statements)

Sales Tax for the year rebounded from last year’s contraction, ending fiscal year 202 4-25 with a 2.2% increase. The addition of new businesses throughout the City and within our growing Industrial Park help contribute to the growth. The main areas of the increase in Sales Tax for Visalia were General Retail (department stores, apparel stores, furniture/appliance stores) which grew 2.30%, Food Produ cts (restaurants, food markets, liquor stores) which grew 3.75%, and Transportation (new and used auto sales, service stations) which had a slight increase of .5%. Property Tax continued its trend increasing

7.9% as growth in property values remained strong; new development occurred; and the housing market continued to offer premium price levels. Travel stays to the area continued to grow for the year as we saw an increase of 4.4% in Transient Occupancy Tax (TOT) revenue. Contributing to this growth was the implementation of new TOT online payment software as well as increased collection efforts in the short- term rental sector. Franchise Fee revenue saw a significant decrease of 19.5% when compared to the prior fiscal year mainly due to natural gas franchise fee payments. According to the Southern California Gas Company, the decrease was the result of a decrease in usage and price procurement when compared Description FY 23/24 F Y 24/25
Increase Over Prior
Year % Increase
Sales Tax 47,622,285$ 48,662,242$ 1,039,957$ 2.2% Property Tax 34,380,889 37,080,901 2,700,012 7.9% Transient Occupancy Tax 4,789,890 5,001,865 211,975 4.4% Franchise Fees 4,017,299 3,232,921 (784,378) -19.5% Business License 3,471,519 3,340,082 (131,437) -3.8% Total 94,281,882$ 97,318,011$ 3,036,129$ 3.2%

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2025

Letter of Transmittal
to the unprecedented levels seen in 2023. Decreases were seen across most jurisdictions. Business License revenue de creased 3.8% when compared to last year as the implementation of a new online business license billing and receipt system resulted in adjustments that occurred due to the transition of systems.

Visalia has 13,990 licensed businesses operating in the City, a net increase of 517 as compared to last year.

These businesses include private manufacturing, technology research, retail and service businesses, educational services, healthcare and social assistance, consulting, arts and entertainment, hospitality services, along with non-profit institutions.

Construction activity in the City increased 5.4% (based on the number of all permits issued) in fiscal year 2024-25. The total valuation for all permits issued was $410 million, a 15% decrease from the prior year as the City added .7 million square feet of new commercial property and 1.6 million square feet of space overall. Issued single-family dwelling permits for fiscal year 2024-25 had a decrease of 7% when compared to the prior year as shown in Table 2 – New Single-Family Dwelling Permits Comparison. The construction value for 434 new single-family dwelling permits came in at $ 150 million, which was down 4% from the prior year valuation level.

Table 2 – New Single-Family Dwelling Permits Comparison

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2025

Letter of Transmittal
Overall, construction activity drives the revenue collection in several categories and is an indicator of future activity for several other categories, such as property taxes, impact fees, and storm and sanitary sewer system fees.

DEVELOPMENT
The City of Visalia continued to have new additions industrially, commercially, and in other developments throughout the community in f iscal year 2024-25, several of which are named within each category as described here.

Industrial Park
The Industrial Park continues to expand with new additions and ongoing projects.

Seefried Industrial Properties has completed an EIR process for a 280-acre development north of Riggin Avenue between Kelsey Street and Shirk.

College of the Sequoias has purchased an existing facility at 1233 North Century to expand training offerings provided by their Training Resource Center. The increased space will allow the Training Center to bring in more specialized equipment for skills training to help provide the City with a skilled workforce for a growing industrial job market.

A proposed new multi-phased development will be located at Nicholas Avenue and Freedom Street. The first phase will consist of a 35,000 square foot warehouse building with four warehouse lease spaces. The second phase will consist of a 8,750 square foot warehouse building with phase 3 finishing out the development with a 9,000 square foot warehouse.

G3 Development has completed construction of a 310,000 square foot facility at 1030 North Kelsey.

Some new tenants that have come to the area over the past year include Cameron Ashley Building Products, Midwest Veterinary Supply, White Cap Supply, and Living Spaces.

Business Research Park
The Business Research Park located in northwest Visalia adjacent to the Industrial Park had some activity over the last year as well.

Carmax has completed construction in the Visalia Auto Plaza located northwest of Highway 198 and Plaza Drive and is now open.

The Fahrney Auto Group begun construction of its used car sales concept, My Car Park, in the area.

Visalia Hyundai is also considering a new location in the area.

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2025

Letter of Transmittal
Mooney Boulevard
Sequoia Mall is currently undergoing complete refurbishment. The next phases will include a conversion of the former Bed Bath and Beyond building into smaller suites. This follows completion of a new Sephora, Osh Kosh, Carter’s, and Sketchers which are all located near Hobby Lobby.

Local favorite Orange Works is looking to open a new Mooney Boulevard restaurant in the former Crown Dry Cleaners located between Tulare Avenue and Walnut Avenue. The restaurant will also feature a drive- thru.

Downtown
Tazzah, Coffee & Tea will open in the original Tulare Co. Farm Bureau historic building located at 112 East Oak Avenue.

Owners of Sushi Kuu are going to be opening a new restaurant, Ramen Kuu, at 117 West Main Street in the former Metropolis Body Spa building.

Moving forward this year is the Bridging Horizons Play Park project, Visalia’s first fully inclusive playground and park. The project is located just east of Imagine U Children’s Museum.

North Visalia
Development at Orchard Walk West located at Dinuba Boulevard and Riggin Avenue continues to progress. A new phase has been completed and includes Burlington Coat Factory, Ulta Beauty, and Five Below which are all now open.

Raising Cane’s is now open in the Orchard Walk West center.

Construction of a new Costco at the corner of North Shirk Street and Riggin Avenue has begun. The 159,352 square foot Costco will also offer a car wash and fuel facility. Costco intends to be open early 2026.

Additional Visalia Developments
A second Vallarta Supermarket is currently under construction near Lovers Lane and Noble Avenue. The 53,000 square foot space will anchor additional spaces including a 26,000 square foot space and several other retail and food spaces.

Construction of a new Towneplace Suites by Marriott is nearing completion. It is located near the Holiday Inn Express in the Adventure Park area.

A new 2,800 square foot drive -thru restaurant is being proposed at the southeast corner of Stonebrook Street and Caldwell Avenue across from The Human Bean.

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2025

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Letter of Transmittal

ONGOING CAPITAL PROJECTS
The City’s Capital Improvement Program has a number of significant projects currently underway that will continue into fiscal year 2025-26 and beyond.

Caldwell Improvements – Santa Fe to Lovers Lane
• The $ 22.9 million project is widening Caldwell Avenue between Santa Fe and Lovers Lane converting it from an undivided two-lane road to a four-lane divided road with a median.

Shirk Street Improvements
• The $5.1 million project will widen Shirk Street over Mill Creek and will include culvert extensions as well as the extension of an existing storm drain line.

Civic Center Phase II
• The $92 million project will design and construct phase two of the Civic Center to be located next to the Visalia Emergency Communication Center. The facility will consist of a Public Safety Administration building, an Evidence Storage building, and a new City Council Chambers.

Riggin Improvements
• The $11.4 million project will widen Riggin Avenue from Kelsey Street to Shirk Street converting it from an undivided two -lane road to a four- lane road with median. This will improve traffic mobility for the industrial park and surrounding businesses.

Riggin Improvements
• The $7.6 million project will widen Riggin Avenue from Mooney Boulevard to Conyer Street and will include curb and gutter, medians, street lights, and will also construct a frontage road to protect Riggin Avenue properties that face Riggin Avenue.

City Inclusive Park
• The $7.9 million project will construct Visalia’s first inclusive park and playground. The park and playground are intended to become a multi-generational space for community socialization and imaginative fun in which all individuals of all abilities can enjoy.

FINANCIAL CONDITION
The General Fund is the City’s single largest fund which funds the majority of the City’s essential services.

Fiscal year 2024-25 had growth in the main General Fund revenue categories of Sales Tax, Property Tax and Transient Occupancy Tax. Contributing to the growth in revenues was the continued inflation that the country has been experiencing over the last few years. At June 30, 2025, the inflation rate in California was at 3.0% and nationally at 2.67%. With careful management, the City was able to continue to provide service enhancements , infrastructure improvements, and incre ases in employee compensation. As shown in Table 3 – General Fund Statement of Revenues & Expenditures , the General Fund ended the year with nearly no change in fund balance and therefore no surplus. This was mainly due to the

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2025

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Letter of Transmittal
implementation of Governmental Accounting Standards Board Statement No. 101 (GASB 101), which is a required accounting change that updates and standardizes the recognition and measurement guidelines for compensated absences (employee earned vacation and sick time). The implementation of GASB 101 resulted in a transfer out (other financing use) of $3.88 million to the Compensated Absences Fund for the additional sick time in the General Fund that was required to be recognized as an additional liability.

Without this required accounting change, the General Fund would have had a surplus of $3.78 million.

Table 3 – General Fund Statement of Revenues & Expenditures (in millions)

Although there was no surplus this year due to the implementation of GASB 101, there was growth in a few of the main General Fund revenue categories as discussed earlier. In addition, the General Fund saw growth in charges for services which was up $2.6 million as engineering and subdivision fees were up $2 million and charges for fire strike team services were up $0.5 million. Furthermore , uses of money and property (interest income) was up $0.3 million as the average earnings interest rate was 3.82% for the year as compared to 3.37% for the prior year. However, expenditures in the General Fund grew $ 17.6 million over the previous fiscal year. Increases of $9.4 million occurred in salaries and benefits as contracted wage increases occurred, longevity pay was implemented, pension costs grew, health benefit costs increased, and vacancies were filled. Capital expenditures vary from year to year but grew $5.6 million this fiscal year as projects progressed. Finally, operating expenditures had increases of $2.6 million as costs continue to rise. As we can see, the balance between revenues and expenditures in the General Fund can be volatile from year to year. The City will continue to monitor rising operating costs (i.e., pension costs , health insurance, technology ), and the economy for a possible downturn (recession) .

Economists are speculating that the national economic outlook for 2026 is one with slowing Gross General
Fund
Emergency
Reserve
Capital
Project Funds Total
FY 24/25 FY 24/25 F Y 24/25 FY 24/25
Revenues 110.90$ 1.32$ -$ 112.22 $ Expenditures 91.12 0.01 4.61 95.74 Over/(Under) Expenditures 19.78$ 1.31$ (4.61)$ 16.48$ Other Financing Sources (Uses) (19.88)$ -$ 30.91$ 11.03$ Change in Fund Balance before Transfers (0.10)$ 1.31$ 26.30$ 27.51$ Surplus before Transfers to Emergency Reserve and Civic Center Fund (0.10)$ 1. 31$ 26.30$ 27.51$ Transfer surplus to Emergency Reserve Fund* -$ -$ -$ - $ Transfer surplus to Civic Center Fund* - - - - Total Net Change in Fund Balance (0.10)$ 1.31$ 26.30$ 27.51$ *Note - April 15, 2024 Council directed staff on the Emergency Reserve Policy: all surpluses will be deposited into the General Fund Emergency Reserve to maintain 30% of operating expenditures. Any remaining surplus is to be t
ransferred into the Civic Center Fund.

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2025

Letter of Transmittal
Domestic Product (GDP) growth with inflation cooling as the Federal Open Market Committee (FOMC) continues to make cuts to the federal funds rate. However, outlook predictions can easily be affected by trade tensions, uncertainty with tariffs, and federal policies. These issues affect us locally as they have ramifications in both industrial and consumer consumption which may affect Sales Tax revenue for the City. The City must continue to seek new opportunities to increase tax base revenues to help maintain fiscal sustainability.

In June 2024, the City Council adopted a balanced biennial budget for fiscal years 20 24-25 and 2025-26.

The biennial budget focused on the following goals:

• Quality of Life;
• Fiscal Strength;
• Invest in Infrastructure and Growth;
• Organizational Excellence; and
• Economic Vitality.

Both fiscal years budgets projected a surplus for the General Fund. At the April 15, 2024 Council Meeting, Council directed staff to increase the Emergency Reserve to a balance of 30% of General Fund operating expenditures. Any surplus remaining after transferring funds to the Emergency Reserve would be transferred to the Civic Center Fund. Table 4 - General Fund Emergency Reserves shows the usage of the reserves during the great recession and the efforts to replenish and maintain the reserves.

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2025

Letter of Transmittal
Table 4 – General Fund Emergency Reserves

Due to the implementation of GASB 101, the City was not able to meet City Council’s goal of funding the Emergency Reserve Fund with a balance of 30% of General Fund operating expenditures . However, the Emergency Reserve is currently funded with a balance of 27.5% of General Fund operating expenditures for fiscal year 2024-25. Without the implementation of GASB 101, a transfer of $2.2 million would have been able to be made to the Emergency Reserve to fully fund the reserve thus meeting City Councils goal.

BOND RATING
The City’s current general obligation credit ratings are A+ from Standard & Poor's (“S&P”). The ratings continue to reflect the diversity of the local economy anchored by a strong business presence, sound financial management and prudent budgetary practices.

AWARDS
The Government Finance Officers Association (“GFOA”) awarded its Certificate of Achievement for Excellence in Financial Reporting to the City for its ACFR for the fiscal year ended June 30, 2024. To qualify for the Certificate of Achievement, the governmental entity must publish an easily readable and efficiently organized ACFR, the contents of which conform to program standards. Such report must satisfy accounting principles generally accepted in the United States of America, as well as all applicable legal requirements.

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2025

Letter of Transmittal
The Certificate of Achievement is valid for only one year. The City believes this ACFR continues to conform to the Certificate of Achievement Program requirements and will be submitting it to GFOA for consideration of the annual award.

ACKNOWLEDGMENTS
The preparation of this ACFR represents a team effort by the entire staff of the Finance Department.

Sincere appreciation goes to Finance Manager Jason Montgomery and Financial Analyst Kari Williams as they dedicated many long days of focused attention to producing this document. The City also recognizes the contributions and positive working relationship with Brown Armstrong Accountancy Corporation.

Finally, we wish to express our sincere appreciation to the Mayor and City Council for providing policy direction and a firm foundation of support for the pursuit of excellence in all realms of professional endeavors, especially their role in guiding the C ity to a secure financial condition that assures resources are available to provide core services to the community.

Respectfully submitted,

Leslie B. Caviglia Renee Nagel
City Manager Finance Director

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2025

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Organizational Chart

As of June 30, 2025

City Council
Mayor - Brett Taylor
Vice Mayor - Liz Wynn
Council Member - Steve
Nelsen
Council Member - Brian
Poochigian
Council Member - Emmanuel
Hernandez Soto
Jason Salazar
Chief of Police
Dan Griswold
Fire Chief
Jason Glick
Parks & Recreation
Director
Paul Bernal
Planning & Community
Preservation Director
Renee Nagel
Finance & Technology
Services Director
Nick Bartsch
Public Works Director
Shonna Oneal
Admin Services Director
Jason Huckelberry
Engineering & Building
Director
Ken Richardson
City Attorney
Leslie Caviglia
City Manager
John Lollis
Assistant City Manager

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2025

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GFOA Certificate of Achievement

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Financial
Section

1 2

3 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

4 Management Discussion and Analysis

CITY OF VISALIA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
FISCAL YEAR ENDING JUNE 30, 2025

The Governmental Accounting Standards Board (GASB) Statement No. 34 Government -wide statements present a combined picture of the City of Visalia (the City) on a full accrual basis of accounting, where all debt and assets are included in the presentation. Conversely, the Fund level statements present a picture that is based on a modified accrual basis of accounting, where long-term assets and debt are excluded. Thus, Government -wide and Fund level presentations produce different results based on the type of accounting basis used. Please read this document in conjunction with the accompanying Transmittal Letter and the Basic Financial Statements.

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the City’s Basic Financial Statements which have three components:

1. Government–wide financial statements

2. Fund financial statements

3. Notes to the financial statements

This Annual Comprehensive Financial Report also contains Supplemental Information which includes combining statements for Non -major Governmental, Non -major Proprietary, Internal Service and Fiduciary Funds, Bond Disclosure Requirements, as well as a Statistical Section.

Government-wide Financial Statements

The Government-wide Financial Statements are designed to provide a broad overview of all of the City’s finances taken as a whole, using a long-term view, in a manner similar to private-sector businesses.

The Statement of Net Position presents financial information on all the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources , with the difference between the four reported as net position. The full accrual basis of accounting is used; thus, the flow of all economic resources are measured.

The Statement of Activities presents financial information reporting how the City’s net position changed during the fiscal year by listing the revenues and expenses of each of the City’s major activities. The full accrual basis of accounting is also used, thereby all changes to net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in a future fiscal period.

All of the City’s activities are grouped into either Governmental Activities (those functions that are principally supported by taxes or by specific governmental program revenues such as developer fees) or into Business -type Activities (whose services are supported by charges paid by direct users of the service such as Solid Waste collection). All of the amounts in both the Statement of Net Position and the Statement of Activities are segregated into Governmental Activities and Business -type Activities to provide a summary of these City activities. The City’s Governmental Activities include general government, parks and recreation , police, fire, public works, housing & community grants and community development. The City’s Business-type Activities include the convention center, airport, water reclamation facility, storm sewer maintenance, solid waste, transit, building safety, and animal control.

The City’s Government -wide Financial Statements include not only the City itself (referred to as the primary government) but also the Visalia Public Finance Authority, which is financially accountable to the City and is blended into these financial statements.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

5 Management Discussion and Analysis
Fund Financial Statements

The Fund Financial Statements are designed to report information about related accounts that have been segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. All of the City’s funds are divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.

The Fund Financial Statements provide detailed information about each of the City’s most significant funds ca lled Major Funds which include the General Fund, Measure N Fund, American Rescue Plan Fund, Transportation Fund, and Civic Center Fund (detail on pages 34-41). Major funds account for the major financial activities of the City and are presented individually, while the activities of the Non- major funds are presented in summary as Other Governmental Funds. Non-major funds include Special Revenue Funds such as Measure T, Measure R and Transportation Grants; D ebt Service Funds such as VPFA 2014 Refunding COP and 2015 COP; and C apital Projects Funds such as Government Facilities Impact Fee, and Facility Improvements Fund (detail on pages 12 6-160).

Subordinate schedules of the Non-major funds present detailed financial information for the City’s smaller funds.

Governmental Funds: Governmental funds are prepared on the modified accrual basis of accounting, which means they measure only current financial resources and uses. This basis focuses on (1) how cash and other financial assets can be readily converted to available resources and (2) the balances left at year -end that are available for spending. Such information may be useful in determining what financial resources are available in the near future to finance the City’s programs. Capital assets and other long -lived assets along with long- term liabilities are not presented in the Governmental Fund Financial Statements.

Because the focus of the governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with the similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long -term impact of the government's near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City follows Governmental Accounting Standards Board (GASB) Statement No. 54. In the Fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned or unassigned. Each of these components of fund balance is classified based primarily on the extent to which the City is bound to honor constraints on how specific amounts can be spent.

1. Nonspendable Fund Balance – amounts that are inherently nonspendable such as long-term receivables.

2. Restricted Fund Balance – amounts that have externally enforceable limitations on use that are either imposed by law or constrained by grantors, contributors, or laws and regulations of other governments.

3. Committed Fund Balance – amounts that can only be used for specific purposes determined by resolution of the City’s highest level of decision -making authority, the City Council. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through a resolution. The resolution must occur prior to the end of the reporting period; however, the amount can be determined subsequently.

4. Assigned Fund Balance - amounts that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance. The intent can be expressed by the City Council itself or by an official to which the governing body has delegated the authority.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

6 Management Discussion and Analysis

5. Unassigned Fund Balance - the residual positive net resources of the General Fund in excess of what can properly be classified in one of the other four categories. This amount is reported only in the General Fund except in cases of negative fund balance . N egative fund balances in other governmental funds are reported as Unassigned Fund Balance.

The City Council establishes, modifies, or rescinds fund balance commitments by passage of an ordinance or resolution. This is done through the adoption of the budget and subsequent budget amendments that occur throughout the year. Assignments may be established and modified by the City Council, City Manager, or Finance Director.

The accounting policies of the City consider restricted fund balance to have been spent first when expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts.

This Fund Balance policy was established by the City Council on June 20, 2011.

Proprietary Funds : Proprietary funds are generally used to account for services for which the City charges customers – either citizens (e.g., Enterprise funds) or departments of the City (e.g., Internal Service funds).

Proprietary funds provide the same type of information as shown in the government -wide financial statements only in more detail. Proprietary funds are prepared on the full accrual basis of accounting and include all of their assets and liabilities, current and long-term.

• 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 the Wa ter Reclamation Facility , Storm Sewer Maintenance, Solid Waste, and Transit which are considered to be major funds of the City and Convention Center, Airport, Building Safety, and Animal Control which are considered to be non-major funds of the City.

• Internal Service Funds are used to report activities that provide certain supplies and services only to City programs and activities. The internal service funds are combined into a single, aggregated total presented in the f und level proprietary fund financial statements. Subordinate Internal Service fund schedules that provide individual fund financial data in the form of combining statements are also contained in this report. Internal service's revenues are eliminated in the City -wide financial statements and any related profits or losses are returned to the activities which created them. Because these services predominantly benefit governmental rather than business -type functions, the residual net position of these funds has been included within governmental activities in the government -wide financial statements. The City uses internal service funds to account for Fleet Services, Vehicle Replacement, Information Services, Risk Management, Health Benefits, Compensated Absences and Building Maintenance.

Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the City.

The City’s fiduciary activities are reported in the Statement of Fiduciary Net Position included in the Basic Financial Statements. For the City of Visalia, s even fiduciary funds are maintained: the Property and Business Improvement District #5 (for Downtown Visalians & Alliance), the Village West Improvement District, the Orchard Walk Underground Utilities District, the Atwood Water Main Assessment District, the Laura Water Main Assessment District, Visalia Tourism & Marketing District, and the Visalia Redevelopment Successor Agency.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

7 Management Discussion and Analysis
Notes to the Financial Statements

The notes to the financial statements provide additional financial information that is essential for a full understanding of the data provided in the Government-wide and Fund Financial Statements.

FINANCIAL HIGHLIGHTS

Visalia’s population increased to 1 46,978 an increase of 1.7 % this past fiscal year . The California Consumer Price Index for All Urban Consumers was at 3.0% as of June 30, 2025. The major factors driving the City’s government wide financial results this fiscal year are the following:

• Decreased sales tax revenues of $ 0.9 million, down 1 % from last year mainly due to a decrease in Measure R sales tax revenues of $2.4 million (21 .1%) as a portion of revenues received in Measure R are based on project reimbursement. Increases were seen in General Fund sales tax of $ 1.0 million (2.2%), Measure N sales tax of $0.3 million (1.8%) and Measure T sales tax of $0.2 million (1.7%).

• Increased property taxes of $2.8 million, up 8.0% from last year.

• Increases in investment earnings of $ 7.3 million, up 29 % from last year including $2.6 million in interest earnings as the City had an average interest earnings rate of 3. 82% for the year as compared to 3.37% for the prior year, and an increase of $4.7 million in the fair market value of the investments held on June 30, 2025 as the City had unrealized investment gains in accordance with GASB 31.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
(FINANCIAL ACTIVITIES OF THE CITY AS A WHOLE)

Government-wide Statements

Table 1, Government-wide City Totals, summarizes the Government-wide financial activity for this past year.

• The City’s Total Assets increased by $ 99.8 million (7%) during the current fiscal year as the City had increases in cash and investments of $ 45.7 million due to increases in tax, grant, and interest earnings revenue, in addition to revenues exceed ing expenses for the year; interest receivable of $ 0.4 million as F Y 24-25 F Y 23-24*
$ %
Assets 1,564.6$ 1,464.8$ 99.8$ 7%
Deferred Outflows of Resources 46.6 56.3 (9.7) -17% Liabilities 329.4 341.7 (12.3) -4%
Deferred Inflows of Resources 9.4 11.1 (1.7) -15% Net Position 1,272.4 1,168.3 104.1 9%
Revenues 364.0 309.7 54.3 18%
Expenses 259.9 225.3 34.6 15%
* As restated due to the implementation of GASB 101.

Table 1
Government-wide City Totals
(in millions)
Change

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

8 Management Discussion and Analysis
the City’s average interest earnings rate was at 3 .82% for the year; accounts receivable of $2.5 million, notes and loans receivable of $ 2.9 million as Housing and Community Grants had new additions and repayments were received ; due from other governmental units of $ 4.4 million; taxes receivable of $ 12.4 million as accruals for funds due were more for the year; and capital assets of $32.9 million. The increases were offset by decreases in prepaids and deposits of $1. 0 million and supplies and inventory of $0. 4 million. The overall increase in capital assets includes additions, deletions, depreciation, and amortization comprised of increases of $7.4 million in land, $6.6 million in buildings , $5.7 million in vehicles and equipment, $32.3 million in infrastructure, and $1.7 million in lease and subscription -based information technology assets, as well as decreases of $15.4 million in construction in progress , and $5. 4 million in improvements.

• The City’s Deferred Outflows of Resources decreased by $ 9.7 million (17%) due to annual adjustments for GASB 68 pension related activity based on information provided by CalPERS.

• The City’s Liabilities decreased by $12.3 million (4%) during the current fiscal year. This was mainly due to decreases in unearned revenue of $22.1 million as revenue was recognized and ARPA grant funding was closed out; net pension liability of $ 2.5 million, and long term debt obligations of $2.7 million including scheduled debt service payments and compensated absences . Increases included advances from grantors and third parties of $1.2 million due to Transit receiving funds for future use; liability for payables of $10.6 million as payables were entered or accrued and paid next fiscal year , and liability for self -insurance claims of $3.2 million.

• The City’s Deferred Inflows of Resources decreased by $ 1.7 million (15%) due to annual adjustments for GASB 68 pension related activity based on information provided by CalPERS.

• The City’s Total Net Position (assets and deferred outflows of resources exceeding its liabilities and deferred inflows of resources) was $1.3 billion as of June 30, 2025.

• The City’s Total Revenues, including program and general revenues, were $ 364.0 million for fiscal year 2024-25, an increase of $ 54.3 million (18%) from last year, while total City expenses were $259.9 million, an increase of $ 34.6 million (15 %) from last year. The revenue increase is due to a combination of increases in tax revenue of $ 1.4 million, investment earnings of $7.3 million, grants and contributions of $31.4 million, charges for services of $14.7 million, offset by a decrease in miscellaneous revenue of $0.5 million.

• Revenues can be divided between Program Revenues related to work activities and General or Tax Revenues. For the fiscal year 2024 -25, Program Revenues were $ 193.6 million (revenues derived from specific activities) and General Revenues (e.g., taxes and investment earnings) were $ 170.4 million. These same revenues can be classified as either Governmental activity revenues or Business -type activity revenues. For the fiscal year 202 4-25, Governmental activity revenues were $242. 1 million (67 %) and Business-type activity revenues were $121.9 million (33%).

• Expenses for Governmental activities were $154.6 million (a n 11% increase from last year) and Business - type activities were $105.3 million (a 22% increase from last year).

Analysis of Governmental Net Position

The City’s net position derived from governmental activities is shown in Table 2, Governmental Net Position .

Assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $798.4 million.

The largest portion of the ne t position includes $422.6 million ( 53%) in Net Investment in Capital Assets (net of debt to acquire those assets) , $282.1 million (35%) in restricted used for resources that are subject to restrictions , and $93.7 million (12%) in unrestricted.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

9 Management Discussion and Analysis

• Cash and Investments of $415.9 million increased $37.3 million from last year mainly due to an increase in tax and grant revenues, and revenues exceeding expenses for the year.

• Capital Assets, Net of Accumulated Depreciation/Amortization totaling $432.3 million are categorized in Table 8, Capital Assets, Net of Accumulated Depreciation & Amortization.

• Deferred Outflows of Resources of $ 37.9 million, decreased $ 7.4 million due to annual adjustments for GASB 68 pension related activity calculated by using information provided by CalPERS.

• Long-Term Obligations totaling $143.8 million is comprised of Net Pension Liability, Certificates of Participation, government loans, lease liabilities, subscription -based information technology agreements (SBITA), and compensated absences. There were $ 1.1 million in long term debt payments made by the City during the year, $24 thousand in lease payments, and $ 1.1 million in SBITA payments. Compensated Absences increased by $ 0.5 million. The Net pension liability de creased by $ 2.2 million. See the accompanying Notes to Basic Financial Statements, Note 7 – Long-Term Debt and Note 10 – Employee Benefits for further detail.

• Deferred Inflows of Resources of $4.2 million had a decrease of $0.9 million as compared to the prior year.

Decreases were due to annual adjustments of $1. 5 million for GASB 68 pension related activity calculated by using information provided by CalPERS, offset by an increase in leases of $0.6 million.

• Net Position –Net Investment in Capital Assets of $ 422.6 million represents the City’s capital assets less accumulated depreciation and amortization and any debt used to finance its construction or purchase.

F Y 24-25 F Y 23-24*
$ %
Assets
Cash and Investments 415.9$ 378.6$ 37.3$ 10% Current and Other Assets 94.8 85.7 9.1 11% Adv. To Other Funds & Internal Balances 5.2 3.6 1.6 44% Capital Assets, Net of Accum. Deprec./Amortization 432.3 401.8 30.5 8% Total Assets 948.2 869.7 78.5 9% Deferred Outflows of Resources
Pensions 37.9 45.3 (7.4) -16% Total Deferred Outflows of Resources 37.9 45.3 (7.4) -16% Liabilities
Other Liabilities 39.7 52.3 (12.6) -24% Long-Term Obligations 143.8 146.6 (2.8) -2% Total Liabilities 183.5 198.9 (15.4) -8% Deferred Inflows of Resources
Pensions 1.4 2.9 (1.5) -52% Leases 2.8 2.2 0.6 27% Total Deferred Inflows of Resources 4.2 5.1 (0.9) -18% Net Position
Net Investment in Capital Assets 422.6 391.8 30.8 8% Restricted 282.1 254.2 27.9 11% Unrestricted 93.7 65.0 28.7 44% Total Net Position 798.4$ 711.0$ 87.4$ 12% * As restated due to the implementation of GASB 101.

Table 2
Governmental Net Position
(in millions)
Change

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

10 Management Discussion and Analysis
• Restricted Net Position of $282.1 million represents resources that are subject to external restrictions on how they may be used. The largest portion, $173.3 million (61%), is restricted for capital projects, primarily funded by impact fees and grants. Other significant restrictions include $37.5 million for housing and community development programs and successor agency activities; $21.9 million for roadway projects funded by Measure R; $19.1 million for landscape and lighting districts; $19.1 million for public safety activities funded by Measure N and Measure T; and $8.8 million for waterways and groundwater recharge projects.

• Unrestricted Net Position of $93.7 million is the remaining part of the balance.

Analysis of Changes in Governmental Net Position

Governmental activities are summarized on Table 3, Changes in Governmental Net Position , showing that during fiscal year 2024-25 the City’s net position increased by $87.4 million.

F Y 24-25 F Y 23-24*
$ %

REVENUES
Program Revenues:

Charges for Services 39.5$ 28.4$ 11.1$ 39% Operating Grants & Contributions 30.8 20.3 10.5 52% Capital Grants & Contributions 22.4 14.3 8.1 57% General Revenues:

Taxes
Sales 85.2 86.0 (0.8) -1%
Property 37.3 34.5 2.8 8%
Other 11.8 12.3 (0.5) -4%
Investment Earnings 19.1 14.7 4.4 30% Miscellaneous 1.1 0.9 0.2 22% Total Revenues 247.2 211.4 35.8 17%

EXPENSES
General Government 7.3 6.9 0.4 6% Community Development 8.4 13.4 (5.0) -37% Housing & Community Grants 11.9 13.4 (1.5) -11% Police 62.2 56.0 6.2 11%
Fire 26.1 25.2 0.9 4%
Public Works 20.4 13.1 7.3 56% Parks & Recreation 18.0 15.0 3.0 20% Interest on Long-Term Debt 0.3 0.4 (0.1) -25% Total Expenses 154.6 143.4 11.2 8%
Increase in Net Position
Before Transfers 92.6 68.0 24.6 36% Transfers (5.2) (4.6) 0.6 13% Total Transfers (5.2) (4.6) 0.6 13% Increase in Net Position 87.4 63.4 24.0 38% Net Position at Beg. of Year, as previously reporte 715.7 647.6 68.1 11% Restatement for change in accounting principle (4.7) - (4.7) -% Net Position at Beg. of Year, as restated 711.0 647.6 63.4 10% Net Position at End of Year, as restated 798.4$ 711.0$ 87.4$ 12% * As restated due to the implementation of GASB 101.

Table 3
Changes in Governmental Net Position
(in millions)
Change

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

11 Management Discussion and Analysis
Total governmental revenues of $ 247.2 million, increased by $35.8 million (17%) and total governmental expenses of $154.6 million, increased by $11.2 million (8%) when compared to last year. C hanges in revenue were comprised of increases in charges for services of $11.1 million (39%), operating grants & contributions of $1 0.5 million ( 52%), capital grants & contributions of $8.1 million (57%), property tax of $2.8 million (8%), investment earnings of $4.4 million (30%), and miscellaneous revenue of $0.2 million (22%) with decreases occurring in sales tax of $0.8 (1%) , other revenue (comprised of transient occupancy, franchise, and business licenses taxes) of $0.5 million (4%) .

Expenditures had increases seen in Police of $6.2 million (11%), Fire of $0.9 million (4%), General Government of $0.4 million (6%), Public Works of $7.3 million (56%) and Parks and Recreation of $ 3.0 million ( 20%), with decreases occurring in Community Development of $5.0 million (37%), Housing & Community Grants of $1.5 million (11%), and interest on long-term debt of $0.1 million (25%).

PROGRAM REVENUES

• Charges for Services - These charges increased $11.1 million or 39% as compared to the prior year. This was mainly due to increases in impact fees of $2.6 million and the recognition of deferred impact fees of $4.7 million. Increases were also seen in e ngineering and subdivision fees of $2.0 million , special public safety services of $0.5 million, local ordinance violations of $0.2 million, special service district fees of $0.4 million and allocation of Internal Service funds of $0.4 million.

• Grants (Operating & Capital) & Contributions - The combined income from operating and capital grants and contributions increased this year, up from last year by $18.6 million, for a total of $53.2 million as a result of ARPA grant funding of $19.0 million being finalized and closed out.

GENERAL REVENUES

• Sales Tax – For government-wide purposes, sales tax decreased $0.8 million (1%) from the prior year mainly due to a decrease in deferred Measure R revenue for the year resulting from a change in accounting method.

• Property Taxes – For government -wide purposes, property tax revenues increased $2. 8 million (8%) over last year currently totaling $37.3 million.

• Investment Earnings - Investment earnings increased $ 4.4 million over last year including $1.8 million in interest earnings as the interest earnings rate was up as compared to the prior year and an increase of $2.6 million in the fair market value adjustment to investments held on June 30, 2025 as the City had unrealized investment gains in accordance with GASB 31.

EXPENSES

• General Government - There were $7.3 million in expenses, an increase of $0.4 million (6%) as compared to last year which was mainly due to in creases in the annual GASB 68 pension adjustments of $0.4 million and an increase in various other operating expenditures including allocation of Internal Service funds , all together totaling $0.3 million offset by a decrease in salaries and benefits of $0.3 million.

• Community Development - There were $ 8.4 million in expenses, a de crease of $ 5.0 million ( 37%) as compared to last year mainly due to a significant decrease of $5.8 million to the annual GASB 68 pension adjustment. Increases included salaries and benefits of $0.6 million due to wage and benefit increases and $0.2 million in various other operating expenses including allocation of Internal Service funds.

• Housing & Community Grants – There were $ 11.9 million in expenses, a de crease of $ 1.5 million ( 11%) when compared to last year due to decreases in program activity.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

12 Management Discussion and Analysis
• Police – There were $62.2 million in expenses, an increase of $6.2 million (11%) as compared to last year which was comprised of increases in salaries and benefits of $3.5 million due to wage and benefit increases , various other operating expenses including allocation of Internal Service funds, all totaling $3.2 million and a decrease in the annual GASB 68 pension adjustment of $0.5 million.

• Fire – There were $26.1 million in expenses, an increase of $0.9 million (4%) as compared to last year which was comprised of increases in salaries and benefits of $ 1.5 million due to wage and benefit increases , various other operating expenses including allocation of Internal Service funds, all totaling $0. 1 million and a decrease in the annual GASB 68 pension adjustment of $0.7 million.

• Public Works – There were $20.4 million in expenses, a n increase of $7. 3 million (56%) as compared to last year which was mainly due to a significant increase of $5.4 million in the annual GASB 68 pension adjustment. Increases also included salaries and benefits of $0. 7 million due to of wage and benefit increases and various other operating expenses including allocation of Internal Service funds, all together totaling $1.2 million.

• Parks & Recreation – There was $18.0 million in expenses, an increase of $ 3.0 million (20%) as compared to last year which was comprised of increase s in salaries and benefits of $1. 4 million due to wage and benefit increases, various other operating expenses including allocation of Internal Service funds, all together totaling $1.5 million, and the annual GASB 68 pension adjustment of $0.1 million

• Interest on Long-Term Debt – There was $0.3 million in interest expense for fiscal year 2024 -25. Scheduled principal payments were made on Certificates of Participation, bank notes, lease liabilities, and subscription - based information technology liabilities. The 2014 COP has a maturity date of December 2025 and the 2015 COP has a maturity date of December 2029. As the City approaches each maturity, more of the annual debt payment goes towards the principal and less goes toward interest.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

13 Management Discussion and Analysis
Analysis of Business-Type Net Position

The City’s business -type net position, shown in Table 4, Business -Type Net Position , exceeded liabilities by $474.0 million. The largest portion of the net position, Net Investment in Capital Assets, is $279.5 million ( 59%).

Resources that are subject to restrictions total $1 8.9 million (4%). The remaining balance of $ 175.6 million (37%) represents unrestricted net position.

• Cash and Investments increased $ 8.4 million ( 4%), as these funds are accumulating cash for capital projects and scheduled debt payments . Increases included funds in Water Reclamation Facility of $11.4 million, Solid Waste of $ 1.3 million, Building Safety of $1.9 million, Airport of $0. 5 million and Convention Center of $0. 3 million with a decrease in Transit of $6.7 million and Storm Sewer Maintenance of $0. 3 million.

• Current and Other Assets totaled $ 27.6 million for the fiscal year, a n increase of $12.0 million (77%). Due from other governmental units had an increase of $ 1.5 million and taxes receivable had an increase of $10.7 million (Transit) offset by a decrease in leases receivable of $0.2 million.

F Y 24-25 F Y 23-24*
$ %
Assets
Cash and Investments 229.1$ 220.7$ 8.4$ 4% Current and Other Assets 27.6 15.6 12.0 77% Internal Balances (5.2) (3.6) (1.6) 44% Capital Assets 364.8 362.4 2.4 1% Total Assets 616.3 595.1 21.2 4% Deferred Outflows of Resources
Deferred Pensions 8.8 11.0 (2.2) -20% Total Deferred Outflows of Resources 8.8 11.0 (2.2) -20% Liabilities
Other Liabilities 20.8 15.3 5.5 36% Long-Term Debt Outstanding 125.1 127.5 (2.4) -2% Total Liabilities 145.9 142.8 3.1 2% Deferred Inflows of Resources
Deferred Pensions 0.3 0.8 (0.5) -63% Deferred Leases 4.9 5.2 (0.3) -6% Total Deferred Inflows of Resources 5.2 6.0 (0.8) -13% Net Position
Net Investment in Capital Assets 279.5 275.0 4.5 2% Restricted 18.9 11.5 7.4 64% Unrestricted 175.6 170.8 4.8 3% Total Net Position 474.0$ 457.3$ 16.7$ 4% * As restated due to the implementation of GASB 101.

Table 4
Business-Type Net Position
(in millions)
Change

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

14 Management Discussion and Analysis
• Capital Assets totaled $364.8 million for the fiscal year , an increase of $2.4 million (1%) when compared to the prior year. Construction in progress had an increase of $ 3.6 million. M achinery, Equipment and Vehicles had additions of $6.9 million which consisted of additions of eight collection vehicles, eight roll- off boxes, and one compact loader in Solid Waste, four dump trailers and one 30 -yd refuse bin for SWEEP division, two electric buses in Transit , and seven vans for Micro Transit program . R etirements of $0.1 million consisted of one F450 pick -up truck in Transit, one F350 pick-up truck and one crown -vic car in Solid Waste, and one John Deere Gator in Water Reclamation . Infrastructure increased by $2.2 million, which includes Storm Sewer lines and Sanitary Sewer lines. Accumulate d depreciation and amortization increased by $ 12.3 million as assets were depreciated for the year . See Table 8, Capital Assets, Net of Accumulated Depreciation below for additional detail.

• Deferred Outflows of Resources totaled $ 8.8 million for the fiscal year , a decrease of $2.2 million (20%) .

The decrease is due to the GASB 68 annual adjustment for pension related activity using information provided by CalPERS.

• Long-Term Debt totaling $125.1 million is composed of Net Pension Liability, Certificates of Participation, Leases, Clean Water State Revolving Fund Loan, Subscription– Based Information Technology Agreements, and Compensated A bsences. Regularly scheduled payments of $ 4.1 million, adjustments to the Net Pension Liability of $ 0.3 million and an increase in SBITA Liabilities of $2.0 resulted in a net decrease in long-term debt of $2.4 million. See the accompanying Notes to Basic Financial Statements, Note 7 - Long- Term Debt, and Note 10 Employee Benefits for further detail.

• Deferred Inflows of Resources totaled $ 5.2 million for the fiscal year , a decrease of $ 0.8 million ( 13%).

The decreases include Deferred Pensions of $ 0.5 million due to the GASB 68 annual adjustment and Deferred Leases of $0.3 million due to lease activity.

• Net Position – Net Investment in Capital Assets totaling $279.5 million represents capital assets less accumulated depreciation and net of any debt used to finance its construction or purchase. This is a $4.5 million increase as compared to last year.

• Restricted Net Position of $ 18.9 million is primarily found in Capital Projects funds which have been restricted for capital projects and debt service reserves.

• Unrestricted Net Position of $ 175.6 million experienced a n increase of $ 4.8 million. Unrestricted Net Position is normally the part of net position that can be used without constraints established by debt covenants or other legal requirements.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

15 Management Discussion and Analysis
Analysis of Changes in Business-Type Net Position

Table 5, Chan ges in Business -Type Net Position shows the results of the City’s businesses for the last two fiscal years. The City’s Business-type activities increased the City’s net position by $ 16.7 million during fiscal year 20 24-

25. Total Business-type revenues of $ 116.7 million increased by $18.3 million (19%) when compared to last year.

Total Business-type expenses totaled $105.3 million, an increase of $17.8 million (20%) as compared to last year.

F Y 24-25 F Y 23-24*
$ %

REVENUES
Program Revenues:

C
harges for Services 73.3$ 69.8$ 3.5$ 5% Operating Grants & Contributions 16.8 9.4 7.4 79% Capital Grants & Contributions 10.6 5.4 5.2 96% Investment Earnings 13.1 10.1 3.0 30% Miscellaneous 2.9 3.7 (0.8) -22% Total Revenues 116.7 98.4 18.3 19%

EXPENSES
Water Reclamation Facility 35.2 28.8 6.4 22% Storm Sewer Maintenance 2.9 2.7 0.2 7% Solid Waste 26.4 23.4 3.0 13% Transit 27.8 19.8 8.0 40% Convention Center 4.6 4.1 0.5 12% Airport 2.5 2.4 0.1 4% Building Safety 3.4 3.9 (0.5) -13% Animal Control 2.5 2.4 0.1 4% Total Expenses 105.3 87.5 17.8 20% Increase in Net Position
Before Transfers 11.5 10.9 0.6 6% Transfers 5.2 4.6 0.6 13% Increase in Net Position 16.7 15.5 1.2 8% Net Position at Beg. of Year, as previously reported 458.2 441.8 16.4 4% Restatement for change in accounting principle (0.9) - (0.9) -% Net Position at Beg. of Year, as restated 457.3 441.8 15.5 4% Net Position at End of Year, as restated 474.0$ 457.3$ 16.7$ 4% * As restated due to the implementation of GASB 101.

Table 5
Changes in Business-Type Net Position
(in millions)
Change

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

16 Management Discussion and Analysis
Revenues

• Charges for Services – These revenues were up collectively by $3. 5 million. Revenues were up for the Water Reclamation Facility by $1.7 million (residential users , trunk line capacity , and front footage fees).

Increases were also seen in Transit of $0.9 million (farebox ticket sales, and Sequoia Shuttle National Parks reimbursement), Convention Center of $0.2 million (conference room rental, equipment rental, bar sales, and security services), Animal Control of $0.3 million (animal service contract charges for Dinuba, Exeter and Farmersville), and Building Safety of $0.6 million (overall increase in construction permits issued).

Revenues were offset by a decrease in Solid Waste of $0.1 million ( franchise tax). Storm Sewer Maintenance and Airport were consistent with the prior year.

• Operating and Capital Grants and Contributions – The combined revenue from operating and capital grants & contributions increased this year by $12.6 million mainly due to receiving more grant revenue in Transit of $ 11.7 million as a result from timing constraints and increases to the annual apportionment ; Solid Waste of $0. 1 million grant funding fr om CalRecyle OWR4 was received for the purchase of a solid waste front load truck; Water Reclamation Facility of $3.3 million for capital related projects ; and Animal Control of $0.1 million grant funding for providing assistance to owners reclaiming their pets. A decrease in Storm Sewer Maintenance contributions of $2.6 million was a result of less capital related projects.

Expenses

• Water Reclamation Facility – There were $ 35.2 million in expenses , a n increase of $ 6.4 million (22 %) mainly due to increases in salaries and benefits of $ 0.1 million as the result of wage and benefit increases combined with annual pension adjustments, utility expenses of $0. 1 million, allocated expenses and services provided of $0.3 million, capital related activity of $5. 7 million, chemicals of $0.2 million, equipment maintenance of $0.1 million, dump charges of $0.1 million and computer software support of $0.1 million, offset by a decrease of $0.4 million due to the implementation of GASB 101 when compared to the prior year.

• Storm Sewer Maintenance – There were $2.9 million in expenses, an increase of $0.2 million (7%) mainly due to increases in salaries and benefits of $ 0.1 million as the result of wage and benefit increases combined with annual pension adjustments, and allocated expenses and services provided of $0.1 million.

• Solid Waste – There were $ 26.4 million in expenses, a n increase of $ 3.0 million ( 13%) mainly due to increases seen in salaries and benefits of $ 2.1 million as the result of wage and benefit increases combined with annual pension adjustments . Increases also occurred in allocated expenses and services provided of $ 1.2 million, depreciation expense of $0.1 million , and internal services allocation of $0.4 offset by a decrease in bad debts of $0.1 million , capital related activity of $0.3 million and $0.4 million due to the implementation of GASB 101 when compared to the prior year.

• Transit – There were $27.8 million in expenses, a n increase of $8.0 million (40%) mainly due to increases in contracted bus services of $7.4 million as a result of a new vendor providing bus services (RATP Dev USA Inc.), CNG fuel of $0. 1 million, allocated expenses and services provided of $0.2 million , depreciation expense of $0. 2 million, and s alaries and benefits of $0. 1 million as the result of wage and benefit increases combined with annual pension adjustments.

• Convention Center – There were $ 4.6 million in expenses, a n increase of $ 0.5 million ( 12%) due to increases in salaries and benefits of $0. 1 million as the result of wage and benefit increases combined with annual pension adjustments, allocated expenses and services provided of $0.2 million, security services of $0.1 million and utilities of $0.1 million.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

17 Management Discussion and Analysis
• Airport – There were $2.5 million in expenses, a n increase of $0.1 million (4%) due to increases in salaries and benefits of $0. 2 million as the result of wage and benefit increases combined with annual pension adjustments offset by a decrease in capital related activity of $0.1 million.

• Building Safety – There were $ 3.4 million in expenses , a decrease of $0.5 million (13%) due to decreases in allocated expenses and services provided of $0. 3 million, computer software support of $0.1 million , and $0.1 million due to the implementation of GASB 101 when compared to prior year . Salaries and benefits were consistent with the prior year including minor fluctuations as the result of wage and benefit increases combined with annual pension adjustments.

• Animal Control – There were $ 2.5 million in expenses , an increase of $0. 1 million (4 %) mainly due to grant expenses of $0.1 million consisting of services for animals including daily boarding and impound fees, vaccinations and spay/neuter fees . Salaries and benefits were consistent with the prior year including minor fluctuations as the result of wage and benefit increases combined with annual pension adjustments.

FUND FINANCIAL ANALYSIS

Governmental Funds are reported on a modified accrual basis of accounting in the fund statements, essentially eliminating the effects of capital assets and related debt. Table 6, Balance Sheet – Governmental Funds shows the last two fiscal years’ results.

F Y 24-25 F Y 23-24
$ %
Asse ts
Cash and Investments 358.6$ 325.7$ 32.9$ 10% Other Assets 90.2 82.5 7.7 9%
Intergovernmental Balances 7.2 3.7 3.5 95% Total Assets 456.0 411.9 44.1 11%
Liabilities
Advances From Other Funds 2.0 2.0 0.0 0% Other Liabilities 26.5 44.2 (17.7) -40% Total Liabilities 28.5 46.2 (17.7) -38% Deferred Inflows of Resources
Unavailable Revenue 13.7 11.4 2.3 20% Leases 2.8 2.2 0.6 27%
Total Deferred Inflows of Resources 16.5 13.6 2.9 21% Fund Balances
Nonspendable 2.0 2.1 (0.1) -5%
Restricted 259.0 215.9 43.1 20%
Committed 107.4 99.4 8.0 8%
Assigned 40.0 34.9 5.1 15%
Unassigned 2.6 (0.2) 2.8 -1400%
Total Fund Balances 411.0$ 352.1$ 58.9$ 17% Table 6
Balance Sheet - Governmental Funds
(in millions)
Change

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

18 Management Discussion and Analysis
Assets – The composition of assets changed by $ 44.1 million (11%) during the year with increases in cash , other assets, and intergovernmental balances . Cash and investments increased $ 32.9 million (10 %) mainly due to revenues exceeding expenditures and other sources & (uses) by $ 58.9 million. O ther assets in creased $ 7.7 million (9%) as increases were seen i n loans receivable of $ 3.0 million with the majority in Housing & Community Grants of $2.8 million and Housing Successor Agency of $1.2 million offset by a decrease in General Fund of $0.8 million and Transportation of $0.2 million ; leases receivable of $0. 5 million; interest receivable of $0.3 million; accounts receivable of $ 2.4 million ( Transportation $ 1.7 million, Public Safety Impact Fee $0. 1 million, Government Facilities Impact Fee $0. 1 million, General Fund $0.3 million and Recreation Facilities $0.2 million); and taxes receivable of $1. 7 million (mainly in Measure R $1.1 million) . A decrease was seen in inventory of $0.2 million. Intergovernmental balances increased $3.5 million (95%) as a result of increase in due from other funds of $0.6 million and due from other governmental agencies of $2.9 million.

Liabilities – Liabilities have de creased $17.7 million (38%) due to a de crease in other liabilities of $ 17.7 million (40%), consisting of decreases in unearned revenue of $ 22.1 million as revenue has been received and recognized, and customer deposits of $0.2 million , offset by increases in accounts payable of $ 4.0 million, and due to other funds of $0.6 million.

Deferred Inflows of Resources – Deferred Inflows of Resources in creased $ 2.9 million (21%) mainly due to increases in unavailable revenue of $2.3 million consisting of impact fees receivable of $2.6 million, property tax receivable of $0.2 million, business tax receivable of $0.1 million offset by a decrease in grants receivable of $ 0.6 million. Leases had an increase of $0.6 million (27%).

Fund Balances - By June 30, 20 25, the City’s Governmental Funds had a total fund balance of $ 411.0 million, an increase of $58.9 million (17%) from the prior fiscal year, which was a combination of increases and decreases in various funds which are discussed later.

Table 7, Statement of Revenues & Expenditures – Governmental Funds shows the results of the last two fiscal years’ activities.

Revenues increased $ 29.8 million from the prior year . Sales tax de creased $0.9 million which includes a decrease in Measure R sales tax of $ 2.4 million (21%) as funding for Measure R Trails and Measure R Regional are received on a reimbursement basis . In addition, we had growth in general sales tax of $ 1.0 million (2%), Measure N sales tax of $0.3 million (2%) and Measure T sales tax of $0.2 million (2%). Property tax revenue saw an increase of $ 2.7 F Y 24-25 F Y 23-24
$ %
Revenues 238.7$ 208.9$ 29.8$ 14%
Expenditures 176.0 156.1 19.9 13%
Excess of Revenues
Over Expenditures 62.7 52.8 9.9 19% Other Sources & (Uses) (3.8) (4.2) (0.4) -10% Net Change 58.9$ 48.6$ 10.3$ 21%
Table 7
Statement of Revenues & Expenditures - Governmental Funds (in millions)
Change

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

19 Management Discussion and Analysis
million (8%) as growth in property values and new developments continued. S ubventions and grants grew $18.1 million mainly due to the project closing out for ARPA funding. Other increases in revenues included fees and fines of $2.3 million as impact fee revenues were up; charges for current services of $3.1 million; miscellaneous revenue of $0.6 million; and uses of money and property of $ 4.6 million as the average interest earnings rate this year was

3.82% and there also was an increase in the fair market value of investments held on June 30, 2025 in accordance with GASB 31. Decreases were seen in other taxes of $0.7 million, includ ing franchise fees of $0.8 million and business license of $0.1 million offset by an increase in transient occupancy tax of $0.2 million.

Expenditures grew by $19.9 million, as compared to the prior year. Increases were seen in capital-related projects of $ 3.9 million as projects were in progress. Other Financing Sources & Uses in the governmental funds had a decrease of $0.4 million mainly due to transfers out exceeding transfers in for the current year. Increases can also be attributed to the following:

• General Government had an increase of $0.2 million which included an increase in salaries and benefits of $0.2 million as a result of wage and benefit increases.

• Community Development of $1.0 million which included salaries and benefits of $1.0 million as a result of wage and benefit increases.

• Housing and Community Grants of $1.0 million as a result of program activity.

• Fire of $ 2.6 million which included salaries and benefits of $2.2 million as a result of wage and benefit increases. Other increases were seen in various other operating expenses of $0.2 million and allocated expenses and services provided of $0.2 million.

• Police of $7.6 million which included salaries and benefits of $6.0 million as a result of wage and benefit increases. Other increases were seen in various other operating expenses of $0.4 million and allocated expenses and services provided of $1.2 million.

• Public Works of $1.4 million which included salaries and benefits of $0.9 million as a result of wage and benefit increases. Other increases were seen in various other operating expenses of $0.4 million and allocated expenses and services provided of $0.1 million.

• Parks & Recreation of $1. 8 million which included salaries and benefits of $1.6 million as a result of wage and benefit. Other increases were seen in various other operating expenses of $0.1 million and allocated expenses and services provided of $0.1 million.

ANALYSIS OF MAJOR GOVERNMENTAL FUNDS

General Fund - The General Fund saw a change in fund balance of $ 27.5 million for the year. Contributing to the growth in the fund balance was an increase in revenues of $ 6.1 million (6%) as compared to last year. The increases included property taxes of $2.7 million (8%), sales tax of $1.0 million (2%), subventions and grants of $0. 1 million (3%), uses of money and property (interest earnings) of $ 0.3 million (10%), fees and fines of $0.2 million (18%), and charges for current services of $ 2.6 million ( 69%). D ecreases occurred in other taxes of $0.7 million (6%), and miscellaneous of $0.1 million (6%).

Measure N - The Measure N fund is used to account for the half-cent sales tax override approved by the citizens of Visalia in November 2016 which funds increased City essential services of Police, Fire, Streets and Parks. Measure N saw an overall increase in revenues of $ 0.8 million compared to the prior year . The increase include s growth in interest earnings of $0.4 million and sales tax of $0.4 million. The Measure N’s fund balance increased $5.3 million to $42.2 million as a result of revenues and other financing sources exceeding expenditures for the year.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

20 Management Discussion and Analysis
American Rescue Plan - The American Rescue Plan Fund is used to account for the tracking of American Rescue Plan Act funds received as a result of the COVID pandemic. The final reporting for the American Rescue Plan close out has been completed and the fund balance is zero.

Transportation - The Transportation Fund is used to account for the financing and construction of new streets, roads, and various new transportation infrastructure and facilities. Funding is provided by Transportation Impact Fees. The Transportation’s fund balance increased $ 4.6 million to $ 36.0 million as a result of revenues exceeding capital projects for the year. Contributing to the increase in fund balance was an increase in impact fees collected and a higher interest earnings rate for the year , including a n increase in the fair market value of investments.

There was an increase in capital related project activity as projects are moving forward.

Civic Center – The Civic Center fund is used to account for the construction of the Civic Center and related capital improvement projects. Revenue is collected from land sales, one -time monies as incentive revenues, General Fund surplus, and other transfers authorized by the City Council. The Civic Center’s fund balance decreased $0.5 million due to capital expenses of $4.8 million off set by interest earnings of $ 4.3 million.

All Other Governmental Funds - These funds (referred to as Non -Major Funds) are not presented separately in the Basic Financial Statements but are individually presented in Supplementary Information. Combined they received $69.0 million in revenue and have a combined fund balance at year-end of $172.5 million.

ANALYSIS OF MAJOR PROPRIETARY FUNDS

Business-Type Funds

By June 30, 2025 , the City’s Proprietary Funds combined net position totaled $ 479.1 million, an increase of $17.3 million from the prior fiscal year, which was a combination of increases and decreases in various funds . Enterprise operating revenues, including charges for services and grants and contributions , were $90.1 million this year, a n increase of $11.0 million from last year.

Grants and contribution s had an increase of $7.5 million mainly due to receiving more grant revenue in Transit of $7.2 million resulting from the timing constraints and increases to the annual apportionment. In addition, Solid Waste had increases of $0.1 million as a result of receiving a CalRecyle OWR4 grant for the purchase of a solid waste front load truck, and Animal Control increased $0.1 million in grant funding for providing assistance to owners reclaiming their pets.

Charges for services had an increase of $3.5 million. Revenues were up for the Water Reclamation Facility by $ 1.7 million (residential users, trunk line capacity , and front footage fees ). Increases were also seen in Transit of $0.9 million (farebox ticket sales, and Sequoia Shuttle National Parks reimbursement), Convention Center of $0. 2 million (conference room , equipment rental, bar sales, and security services), Animal Control of $0. 3 million (animal service contract charges for Dinuba , Exeter and Farmersville), and Building Safety of $0.6 million (overall increase in construction permits issued). Revenues were offset by a decrease in Solid Waste of $0.1 million (franchise tax). Storm Sewer Maintenance and Airport were consistent with the prior year.

Operating expenses were $ 96.7 million this year, a n increase of $16.7 million from last year including increases in maintenance and operations of $13.7 million, salaries and benefits of $ 2.6 million as the result of wage and benefit increases and annual pension adjustments, and depreciation and amortization of $0.4 million.

Water Reclamation Facility - Operating revenues in creased $ 1.7 million. Revenues had increases in trunk line capacity fees of $1.0 million, front footage fees of $0.2 million, septage receiving fees of $0.1 million, residential fees of $0.1 million, commercial fees of $0. 3 million, and services provided of $0. 3 million, offset by a decrease in industrial fees of $0.3 million . Operating expenses in creased by $ 3.6 million mainly due to increases in maintenance and operations of $3.5 million which had increases in utility expenses of $0. 1 million, allocated

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

21 Management Discussion and Analysis
expenses and services provided of $0.3 million, capital related activity of $2.6 million, chemicals of $0.2 million, equipment maintenance of $0.1 million, dump charges of $0.1 million and computer software support of $0.1 million. Increases were also seen in salaries and benefits of $0.1 million as the result of wage and benefit increases and annual pension adjustments.

Storm Sewer Maintenance - Operating revenues of $1.4 million were consistent with the prior year. Operating expenses increased by $0.2 million including increases in salaries and benefits of $ 0.1 million as the result of wage and benefit increases and annual pension adjustments and increases in maintenance and operations of $0.1 million for allocated expenses and services provided.

Solid Waste - Operating revenues of $24.1 million were consistent with the prior year . Operating expenses increased by $4.2 million due to increases in salaries and benefits of $ 2.1 million as the result of wage and benefit increases and annual pension adjustments, depreciation expenses of $0. 1 million, and maintenance and operations of $ 2.0 million mainly due to allocated expenses and services provided of $1.2 million, capital related activity of $0.9 million, offset by a decrease in bad debts of $0.1 million .

Transit – Operating revenues in creased $ 8.1 million from last year . The majority of the in crease was operating grant revenue of $7. 2 million due to the timing of when the City receives the grant funding and receiving more in transit assistance grant funding which can fluctuate from year to year. Increases were also seen in Sequoia Shuttle National Park reimbursement of $ 0.7 million, and farebox and ticket sales of $0. 3 million, offset by a decrease in CNG sales and carbon credits of $0.1 million . Operating expenses increased by $8.2 million mainly due to increases of $7.9 million in maintenance and operations including new vendor providing bus services (RATP Dev USA Inc.) of $7.4 million, CNG fuel of $0. 1 million, capital related activity of $0.2 million , and allocated expenses and services provided of $0.2 million. Increases were also seen in depreciation expense of $0. 2 million and salaries and benefits of $0.1 million as the result of wage and benefit increases and annual pension adjustments .

ANALYSIS OF NON MAJOR PROPRIETARY FUNDS

Convention Center - Operating revenues increased by $ 0.2 million. Increases were mainly seen in conference room, equipment rental, bar sales, and security services of $0. 2 million. O perating expenses in creased by $ 0.5 million mainly due to increases in maintenance and operations of $0. 4 million including increases in allocated expenses and services provided of $0.2 million, security services of $0.1 million and utilities of $0.1 million due to higher event activity. An increase was also seen in s alaries and benefits of $0.1 million as the result of wage and benefit increases and annual pension adjustments

Airport - Operating revenues of $2.4 million were consistent with the prior year with an increase in grant funding of $0.1 million and a decrease in fuel sales of $0.1 million . Operating expenses increased by $0.2 million in salaries and benefits as the result of wage and benefit increases and annual pension adjustments .

Building Safety – Operating revenues in creased by $0.6 million due to a n overall increase in construction permits compared to prior year s activity. Operating expenses de creased by $0. 4 million mainly in maintenance and operations consisting of allocated expenses and services provided of $0.3 million and c omputer software support of $0.1 million. Salaries and benefits were consistent with the prior year including minor fluctuations as the result of wage and benefit increases and annual pension adjustments.

Animal Control – Operating revenues in creased by $ 0.4 million mainly due to a n increase in animal service contract charges of $0.3 million for Dinuba, Exeter and Farmersville and $0.1 million for grant funding for assistance to owners for reclaiming their pet . Operating expenses increased by $ 0.1 million mainly due to grant expenses of $0.1 million consisting of services for animals including daily boarding and impound fees, vaccinations and spay/neuter fees. Salaries and benefits were consistent with the prior year including minor fluctuations as the result of wage and benefit increases and annual pension adjustments.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

22 Management Discussion and Analysis

GENERAL FUND BUDGETARY HIGHLIGHTS

General Fund - Original and Final Budget Comparison

The City’s final General Fund budget differs from the original budget due to carry- forward appropriations for capital projects and supplemental appropriations approved throughout the year at Council meetings and during the Mid-Year budget reviews.

Budgeted total revenues increased by $ 0.3 million to a final budgeted amount of $ 101.3 million, mainly due to an increase in grant funding of $0.3 million.

Budgeted total expenditures increased by $5.2 million to a final budgeted amount of $ 95.4 million, mainly due to an increase of $5.1 million in Capital Outlay (Projects).

General Fund - Final Budget and Actual Comparison

Total revenues were $10.9 million higher than the final budgeted amount, as detailed below.

• Sales Tax – was $ 1.3 million more than budgeted as the budget was conservative. T he economy had growth, inflation continued and averaged 3. 0% for the year making goods and services more expensive.

In addition, new businesses opened within the City.

• Property Tax – was $2.9 million more than budgeted as valuation increased more than anticipated due to increased development and increases in real estate prices.

• Transient Occupancy Tax – was $0.4 million more than budgeted as there were more hotel stays and short term rentals than anticipated as well as increased collection efforts in the short-term rental sector.

• Franchise Fees – was $0.9 million less than budgeted as revenues were down more than anticipated as the Southern California Gas Company payment was significantly lower this year due to a decrease in usage and price procurement.

• Business License – was $0.1 million less than budgeted as business license activity was slightly lower than anticipated for the year . In addition, the implementation of a new online business license billing and receipt system required adjustments that occurred due to the transition of systems.

• Subventions and Grants – was $ 1.9 million more than budgeted mostly due to the City drawing down grant funding for capital improvement projects.

• Total Fees and Fines – was $0.2 million more than budgeted as local ordinance violations and vehicle code and parking violations were more than projected.

• Interest Earned – was $2.1 million more than budgeted which includes i nterest earnings of $1.2 million due to the earnings rate being more than projected averaging 3.82% for the year and investment & fair market value gain of $0.9 million.

• Total expenditures were $ 0.3 million more than budget. This difference had contributing factors such as vacancies, wage and salary increases , which included adjustments to pension expense as required by GASB 68 all offset by capital outlay.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

23 Management Discussion and Analysis

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

The City’s capital assets for its Governmental and Business- Type activities as of June 30, 2025 totaled $ 797.1 million (net of accumulated depreciation and amortization), as shown in Table 8, Capital Assets, Net of Accumulated Depreciation & Amortization . For Government -wide Financial Statements, capital asset purchases for governmental activities are capitalized and depreciated. In contrast, in the Fund Financial Statements capital asset purchases for governmental activities are recorded as expenditures. Additional information about the City’s capital assets can be found in the Notes to Financial Statements, Note 6 – Capital Assets.

Major capital asset events during the current fiscal year included the following:

Governmental
• Fire Station 56 completed
• Purchased building at 300 E. Mineral King
• Caldwell Improvement project Santa Fe to Lovers Lane in progress • Shirk Widening project in progress
• Riggin Widening project in progress
• Play structures installed at 6 city parks
• Shade structures installed at 3 city parks
• Arbors replaced at Whitendale Park
• Picnic tables replaced at various city parks
F Y 24-25 F Y 23-24
$ %
G overnmental Activities
Land 49.7$ 42.3$ 7.4$ 17%
Buildings 50.6 42.8 7.8 18% Improvements 58.3 59.1 (0.8) -1% Equipment 24.8 21.5 3.3 15% Infrastructure 199.8 167.7 32.1 19% Construction in Progress 46.1 65.1 (19.0) -29% Right-to-use assets - lease assets 0.6 0.6 - 0% Right-to-use assets - SBITA 2.4 2.7 (0.3) -11% Total 432.3$ 401.8$ 30.5$ 8%
Business-Type Activities
Land 26.1$ 26.1$ - 0%
Buildings 32.6 33.8 (1.2) -4% Improvements 146.0 150.6 (4.6) -3% Equipment 28.4 26.0 2.4 9% Infrastructure 117.9 117.7 0.2 0% Construction in Progress 11.7 8.1 3.6 44% Right-to-use assets - SBITA 2.1 0.1 2.00 2000% Total 364.8$ 362.4$ 2.4$ 1%
Total City-Wide 797.1$ 764.2$ 32.9$ 4% Table 8
Capital Assets, Net of Accumulated Depreciation & Amortization (in millions)
Change

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

24 Management Discussion and Analysis
• Blain Park retaining wall completed
• Village Park basketball court resurfaced
• New ovens at the Senior Center
• Purchased 24 new Dodge Durangos for Police
• Purchased new Sweeper for Streets Division
• Purchased 4 new Dodge Durangos for Measure N Police
• Purchased 7 new Dodge Durangos for Measure T Police

Business-type
• Purchased 8 new Roll-Off boxes for Solid Waste
• Purchased 8 new Solid Waste collection vehicles
• Purchased Compact Loader for Solid Waste division
• Purchased 4 Dump Trailers and 1 30-Yd refuse bin for new SWEEP division • Purchased 2 new 40’ Electric Buses for Transit
• Purchased 7 new vans for Micro Transit program
• New Battery Backup System for citywide computer network

Debt Administration

The City’s total long- term debt decreased by $ 2.7 million (2 %) during the fiscal year, as shown in Table 9, Outstanding Debt . This wa s due to the City’s regularly scheduled debt service payments , lease payments , SBITA payments, and adjustments to Compensated Absences . See the accompanying Notes to Basic Financial Statements, Note 7 – Long-Term Debt for further detail. The following summarizes the City’s outstanding debt.

F Y 24-25 F Y 23-24*
$ %
G overnmental Activities
Certificates of Participation 5.5$ 6.5$ (1.0)$ -15% Lease Liabilities 0.6 0.6 - 0% SBITA Liabilities 2.3 2.4 (0.1) -4% Compensated Absences 11.3 10.8 0.5 5% Total 19.7$ 20.3$ (0.6)$ -3% Business-Type Activities
Certificates of Participation 2.6$ 3.6$ (1.0)$ -28% Lease 1.6 2.1 (0.5) -24% Notes - Direct Borrowings 79.0 81.7 (2.7) -3% SBITA Liabilities 2.1 0.04 2.1 5150% Compensated Absences 2.2 2.2 - 0% Total 87.5$ 89.6$ (2.1)$ -2% Total City-Wide 107.2$ 109.9$ (2.7)$ -2% * As restated due to the implementation of GASB 101.

Table 9
Outstanding Debt
(in millions)
Change

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

25 Management Discussion and Analysis
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

Overall, the City is in good financial shape. However, like all Government Agencies throughout California, the City is faced with increases in pension costs, health care, minimum wage, annual operating costs, aging infrastructure, and a potential economic downturn.

Visalia, like many businesses across the nation, is struggling to retain current employees and fill vacant positions. Employees are the City’s most important resource as they serve Visalia residents by providing high quality programs and services. In order to retain employees, the City must compensate them appropriately and competitively for the work they perform, attempting to keep pace with the labor market. The budget for fiscal Year 2025-26 includes a wage increase of up to 4% and the addition of 2 full time employees in Measure N.

Visalia is dealing with inflation and continued supply shortages which is increasing costs significantly. In addition to inflation, operating costs are increasing as more technology is implemented throughout the departments. Technology is used for communication, operations, data collection, and administration of processes. Technology allows departments to become more efficient and responsive in many ways but comes with annual on-going costs.

While revenues continue to have small growth, we must recognize that other foreign and domestic factors (i.e. inflation, housing prices, supply chain disruptions, etc.) could negatively impact the growth and expansion of our local economy. Any of these factors could also contribute to an economic downturn. The City is optimistic but must also be fiscally responsible by having sufficient reserves, balanced budgets, and prudent spending policies.

Economists are speculating that the national economic outlook for 2026 is one with slowing Gross Domestic Product (GDP) growth with inflation cooling as the Federal Open Market Committee (FOMC) continues to make cuts to the federal funds rate , which will reduce interest earnings as the average interest rate earned decreases.

However, outlook predictions can easily be affected by trade tensions, uncertainty with tariffs, and federal policies.

These issues affect us locally as they have ramifications in both industrial and consumer consumption which may affect Sales Tax revenue for the City.

We are projecting that revenues will still increase but not at the rates we have seen in past fiscal years. We are not projecting a recession at this time, however, this could change before the next budget is adopted. Expenditures have been increasing over the last couple of years at a higher rate due to inflation, shortages, legislation, and wage increases.

REQUEST FOR FINANCIAL INFORMATION

This financial report is designed to provide our citizens, customers, investors, and creditors with a general overview of the City’s finances, and to demonstrate the City’s accountability for the money it receives and expends. If you have questions about this report, or need any additional financial information, contact the City of Visalia’s Finance Department at 707 W. Acequia Ave., Visalia, CA 93291.

26 27

BASIC FINANCIAL

STATEMENTS

28 City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2025

29 Statement of Net Position and Statement of Activities

STATEMENT OF NET POSITION AND STATEMENT OF ACTIVITIES

The Statement of Net Position and the Statement of Activities are required by Governmental Accounting Standards Board (GASB) Statement No. 34. Their purpose is to summarize the entire City’s financial activities and financial position. They are prepared on the same basis of accounting as is used by most businesses, which means they include all the City’s assets and all its liabilities, deferred inflows and outflows of resources, as well as all its revenues and expenses. This is known as the full accrual basis of accounting − the effect of all the City’s transactions is taken into account, regardless of whether or when cash changes hands, but all material internal transactions between City funds have been eliminated.

The Statement of Net Position reports the difference between the City’s total assets and deferred outflows of resources and deferred inflows of resources and the City’s total liabilities, including all the City’s capital assets and all its long-term debt. The Statement of Net Position presents information similar to the old balance sheet format, but presents it in a way that focuses the reader on the composition of the City’s net position, by subtracting total liabilities and deferred inflows of resources from total assets and deferred outflows of resources.

The Statement of Net Position summarizes the financial position of all of the City’s Governmental Activities in a single column, and the financial position of all the City’s Business -type Activities in a single column; these columns are followed by a total column that presents the financial position of the entire City.

The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds. Since the City’s Internal Service Funds service these Funds, their activities are consolidated with Governmental Activities, after eliminating interfund transactions and balances. The City’s Business-type Activities include all its Enterprise Fund activities.

The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared on the full accrual basis of accounting, which means it includes all the City’s revenues and all its expenses, regardless of when cash changes hands. This differs from the modified accrual basis of accounting used in the Fund financial statements, which reflect only current assets, current liabilities, available revenues and measurable expenditures.

The Statement of Activities p resents the City’s expenses first, listed by program, and follows these with the expenses of its business -type activities. Program revenues − revenues which are generated directly by these programs − are then deducted from program expenses to arrive at the net expense of each governmental and business-type program. The City’s general revenues are then listed in the Governmental Activities or Business -type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.

Both these statements include the financial activities of the City and the Visalia Public Finance Authority, which is legally separate but is a component unit of the City because it is controlled by the City, which is financially accountable for the activities of this entity.

These financial statements, along with the fund financial statements and footnotes, are called Basic Financial Statements.

30 The accompanying notes are an integral part of these financial statements .

Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Investments (Note 3) 409,754,300$ 222,890,290$ 632,644,590$ Restricted Cash and Investments (Note 3) 6,204,448 6,242,915 12,447,363 Accounts Receivable 14,498,729 8,807,821 23,306,550 Leases Receivable (Note 14) 2,802,596 5,051,861 7,854,457 Interest Receivable 4,644,204 - 4,644,204 Taxes Receivable 21,121,095 11,180,204 32,301,299 Notes and Loans Receivable (Note 5) 47,139,398 18,771 47,158,169 Supplies 1,199,177 107,983 1,307,160 Internal Balances (Note 4D) 5,164,183 (5,164,183) - Due from Other Governmental Units 3,406,945 2,360,535 5,767,480 Prepaids and Deposits 13,848 28,323 42,171 Capital Assets, Net of Accumulated Depreciation (Note 6):

Capital Assets Not Being Depreciated or Amortized 95,857,437 37,880,445 133,737,882 Capital Assets Being Depreciated or Amortized 336,479,708 326,874,520 663,354,228 Total Assets 948,286,068 616,279,485 1,564,565,553

DEFERRED OUTFLOWS OF RESOURCES
Pension Related (Note 10) 37,892,547 8,780,018 46,672,565 Total Deferred Outflows of Resources 37,892,547 8,780,018 46,672,565

LIABILITIES
Accounts, Interest, and Contracts Payable 19,262,280 9,941,204 29,203,484 Advances from Grantors and Third Parties - 8,991,160 8,991,160 Customer Deposits 593,567 528,965 1,122,532 Unearned Revenue 7,706,646 1,336,730 9,043,376 Accrued Personnel Costs 51,913 - 51,913 Long-Term Liabilities (Note 7):

Due Within One Year 3,311,184 4,743,373 8,054,557 Due in More Than One Year 16,427,663 82,712,176 99,139,839 Liability for Self-Insurance Claims (Note 11):

Due Within One Year 938,697 - 938,697 Due in More Than One Year 11,183,382 - 11,183,382 Net Pension Liability Due in More Than One Year (Note10) 124,049,621 37,664,886 161,714,507 Total Liabilities 183,524,953 145,918,494 329,443,447

DEFERRED INFLOWS OF RESOURCES
Pension Related (Note 10) 1,410,785 272,581 1,683,366 Lease Related (Note 14) 2,819,111 4,907,216 7,726,327 Total Deferred Inflows of Resources 4,229,896 5,179,797 9,409,693

NET POSITION
Net Investment in Capital Assets 422,590,865 279,487,995 702,078,860 Restricted for:

Capital Projects 173,294,936 14,485,714 187,780,650 Debt Service 18,254 4,365,228 4,383,482 Waterways/Groundwater Projects 8,772,969 - 8,772,969 Landscape & Lighting Districts 19,124,190 - 19,124,190 Public Safety 19,113,967 - 19,113,967 Roadway Projects 21,908,396 - 21,908,396 Housing & Community Grants and Successor Agency 37,498,679 - 37,498,679 Golf Course Maintenance Projects & Miscellaneous 2,430,455 - 2,430,455 Total Restricted Net Position 282,161,846 18,850,942 301,012,788 Unrestricted 93,671,055 175,622,275 269,293,330

Total Net Position 798,423,766$ 473,961,212$ 1,272,384,978$

CITY OF VISALIA

STATEMENT OF NET POSITION
JUNE 30, 2025

31 The accompanying notes are an integral part of these financial statements .

Operating Capital Business-
Charges for Grants and Grants and Governmental Type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities
General Government 7,331,252$ 1,820,715$ 795,638$ 3,937,841$ (777,058)$ -$ (777,058)$ Community Development 8,362,951 3,819,885 35,341 14,621 (4,493,104) - (4,493,104) Housing & Community Grants 11,881,597 67,085 15,770,058 - 3,955,546 - 3,955,546 Public Safety
Police 62,253,191 4,756,449 14,206,241 847,688 (42,442,813) - (42,442,813) Fire 26,078,536 2,801,296 - 42,061 (23,235,179) - (23,235,179) Public Works 20,371,848 15,776,426 12,343 11,477,091 6,894,012 - 6,894,012 Parks & Recreation 18,002,318 10,493,044 21,202 6,128,718 (1,359,354) - (1,359,354) Interest on Long-Term Debt 324,306 - - - (324,306) - (324,306) Total Governmental Activities 154,605,999 39,534,900 30,840,823 22,448,020 (61,782,256) - (61,782,256) B usiness-Type Activities
Convention Center 4,611,546 2,273,986 - - - (2,337,560) (2,337,560) Airport 2,501,772 2,371,250 64,659 - - (65,863) (65,863) Water Reclamation Facility 35,251,458 32,512,180 37,800 4,165,309 - 1,463,831 1,463,831 Storm Sew er Maintenance 2,897,617 1,378,380 - 1,639,772 - 120,535 120,535 Solid Waste 26,352,994 23,470,039 638,197 62,218 - (2,182,540) (2,182,540) Transit 27,772,894 6,296,565 16,012,472 4,800,751 - (663,106) (663,106) Animal Control 2,481,923 927,085 86,970 - - (1,467,868) (1,467,868) Building Safety 3,407,115 4,040,108 - - - 632,993 632,993 Total Business-Type Activities 105,277,319 73,269,593 16,840,098 10,668,050 - (4,499,578) (4,499,578) Total 259,883,318$ 112,804,493$ 47,680,921$ 33,116,070$ (61,782,256)$ (4,499,578)$ (66,281,834)$ General R evenues
Taxes:

Sales Taxes 85,140,027 - 85,140,027 Property Taxes 37,243,803 - 37,243,803 Transient Occupancy Taxes 5,001,865 - 5,001,865 Franchise Taxes 3,232,921 - 3,232,921 Business License Taxes 3,561,927 - 3,561,927 Investment Earnings 19,082,755 13,060,815 32,143,570 Miscellaneous 1,146,495 2,938,586 4,085,081 Transfers (5,181,564) 5,181,564 -
Total General Revenues and Transfers 149,228,229 21,180,965 170,409,194 Change in Net Position 87,445,973 16,681,387 104,127,360 Net Position - Beginning of Year, As Previously Reported 715,672,024 458,182,170 1,173,854,194 Restatement - Change in Accounting Principle (4,694,231) (902,345) (5,596,576) Net Position - Beginning of Year, as Restated (Note 17) 710,977,793 457,279,825 1,168,257,618 Net Position - End of Year 798,423,766$ 473,961,212$ 1,272,384,978$

CITY OF VISALIA

STATE ME NT OF ACTIVITIE S
FOR THE YEAR ENDED JUNE 30, 2025
Net (Expense) Revenue
Program Revenues and Changes in Net Position

32 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

33 Major Governmental Funds

FUND FINANCIAL STATEMENTS

GASB Statement No. 34 revised the format of the Fund Financial Statements so that only individual major funds are presented, while non -major funds are combined in a single column. Major funds are defined generally as having significant activities or balances in the current year. No distinction is made between fund types.

MAJOR GOVERNMENTAL FUNDS

The funds described below were determined to be Major Funds by the City in fiscal year 20 24-25.

Individual non-major funds are presented in the Supplementary Information section.

GENERAL FUND
The General Fund is used to account for all the general revenues of the City not specifically levied or collected for other City funds and their related expenditures. The General Fund accounts for all financial resources of the City which are not accounted for in another fund. The General Fund includes the Capital Project Funds and Emergency Reserve Fund.

MEASURE N – SPECIAL REVENUE FUND
Measure N is used to account for increased public safety services including p olice and f ire, repair and maintenance for s treets and roads, and maintenance of parks and trails. Measure N provides the City with a reliable, ongoing local source of funding which is locally controlled with citizen oversight. Financing is provided by the ½ cent sales tax ballot measure (N) approved by voters during the November 8, 2016 election.

AMERICAN RESCUE PLAN – SPECIAL REVENUE FUND
Established to track and account for American Rescue Plan Act federal grant funding. Monies can only be used according to the plan guidelines.

TRANSPORTATION – CAPITAL PROJECT FUND
Established to account for the financing and construction of streets, roads, and various transportation infrastructure and facilities. Funding is provided by Transportation Impact Fees.

CIVIC CENTER – CAPITAL PROJECT FUND
Established to account for the construction of the Civic Center and related capital improvement projects.

Revenue is collected from land sales, one time monies such as incentive revenues and General Fund surplus or other transfers authorized by City Council.

34 The accompanying notes are an integral part of these financial statements .

General
Fund
Measure N -
Special Revenue
Fund
American
Rescue Plan -
Special
Revenue Fund
ASSETS
Cash and Investments (Note 3) 58,874,557$ 40,516,185$ -$ Restricted Cash and Investments (Note 3)
Cash Held by Trustee - - - Cash Held by City - - - Accounts Receivable 2,305,525 13,136 - Leases Receivable (Note 14) 453,317 - - Interest Receivable 4,644,204 - - Taxes Receivable 11,317,052 3,240,934 - N
otes and Loans Receivable (Note 5) 10,668,448 - - Supplies 12,312 - - Due from Other Funds (Note 4C) 1,860,293 - - Advances to Other Funds (Note 4B) 1,948,098 - - Due from Other Governmental Units 282,573 - - Prepaids and Deposits 13,844 - - Total Assets 92,380,223$ 43,770,255$ -$

LIABILITIES
Accounts, Interest and Contracts Payable 1,227,973$ 1,569,259$ -$ Due to Other Funds (Note 4C) - - - Advances from Grantors and Third Parties - - - Advances from Other Funds (Note 4B) - - - Customer Deposits 392,120 - - Unearned Revenue 923,223 - - Accrued Personnel Costs 36,401 - - Total Liabilities 2,579,717 1,569,259 -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Tax 1,312,945 - - Unavailable Revenue - Business Tax 998,106 - - Unavailable Revenue - Impact Fees - - - Unavailable Revenue - Misc 449,939 - - Leases (Note 14) 435,735 - - Total Deferred Inflows of Resources 3,196,725 - - FUND BALANCES (Note 9)
Nonspendable 1,974,254 - - Restricted 18,334,342 42,200,996 -
Committed 25,402,999 - - Assigned 38,237,724 - -
Unassigned (Deficit) 2,654,462 - - Total Fund Balances 86,603,781 42,200,996 - 92,380,223$ 43,770,255$ -$
Major Funds
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

CITY OF VISALIA

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2025

35 The accompanying notes are an integral part of these financial statement s.

Non-Major Funds
Transportation -
Capital Project
Fund
Civic Center -
Capital Project
Fund
All Other
Governmental
Funds Total
ASSETS
Cash and Investments (Note 3) 39,969,905$ 73,457,122$ 140,121,995$ 352,939,764$ Restricted Cash and Investments (Note 3)
Cash Held by Trustee - - 18,254 18,254 Cash Held by City - - 5,669,443 5,669,443 Accounts Receivable 8,601,992 702 3,501,217 14,422,572 Leases Receivable (Note 14) - - 2,349,279 2,802,596 Interest Receivable - - - 4,644,204 Taxes Receivable - - 6,563,109 21,121,095 Notes and Loans Receivable (Note 5) 148,833 120,349 36,201,768 47,139,398 Supplies - - - 12,312 Due from Other Funds (Note 4C) - - - 1,860,293 Advances to Other Funds (Note 4B) - - - 1,948,098 Due from Other Governmental Units - - 3,124,372 3,406,945 Prepaids and Deposits - - 4 13,848 Total Assets 48,720,730$ 73,578,173$ 197,549,441$ 455,998,822$

LIABILITIES
Accounts, Interest and Contracts Payable 4,890,074$ 15,202$ 8,675,194$ 16,377,702$ Due to Other Funds (Note 4C) - - 1,860,293 1,860,293 Advances from Grantors and Third Parties - - - - Advances from Other Funds (Note 4B) - - 1,948,098 1,948,098 Customer Deposits - - 201,447 593,567 Unearned Revenue - - 6,783,423 7,706,646 Accrued Personnel Costs - - - 36,401 Total Liabilities 4,890,074 15,202 19,468,455 28,522,707

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Tax - - - 1,312,945 Unavailable Revenue - Business Tax - - - 998,106 Unavailable Revenue - Impact Fees 7,793,237 - 3,151,746 10,944,983 Unavailable Revenue - Misc - - - 449,939 Leases (Note 14) - - 2,383,376 2,819,111 Total Deferred Inflows of Resources 7,793,237 - 5,535,122 16,525,084 FUND BALANCES (Note 9)
Nonspendable - - - 1,974,254 Restricted 36,037,419 - 162,440,373 259,013,130 Committed - 73,562,971 8,394,753 107,360,723 Assigned - - 1,795,407 40,033,131 Unassigned (Deficit) - - (84,669) 2,569,793 Total Fund Balances 36,037,419 73,562,971 172,545,864 410,951,031 48,720,730$ 73,578,173$ 197,549,441$ 455,998,822$ Major Funds
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

CITY OF VISALIA

BALANCE SHEET
GOVERNMENTAL FUNDS (Continued)
JUNE 30, 2025

36 37

The accompanying notes are an integral part of these financial statements.

Total Fund Balances - Governmental Funds 410,951,031$
CAPITAL ASSET TRANSACTIONS:

Capital Assets: In governmental funds, only current assets are reported.

In the statement of net position, all assets are reported, including capital assets, accumulated depreciation and accumulated amortization.

Capital Assets at Cost 595,130,686$
Accumulated Depreciation (185,184,832)
Right-To-Use Assets - Lease Assets at Cost 700,502
Right-To-Use Assets - Subscription-Based Information Technology Arrangements 3,946,482 Accumulated Amortization (2,136,970) 412,455,868

ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal service funds are used by management to charge the cost of certain activities, such as insurance, fleet services, compensated absences, and information services, to individual governmental and proprietary funds. The net current assets and current liabilities of the internal service funds are included in governmental activities in the statement of net position. 50,901,788

LONG-TERM LIABILITIES
Long-term Liabilities: In governmental funds, only current liabilities are reported. In the statement of net position, all liabilities, including long-term liabilities, are reported.

Long-term liabilities relating to governmental activities consist of:

Certificates of Participation (5,453,813)
Lease Liabilities (607,791)
Subscription-Based Information Technology Arrangements (1,916,167) (7,977,771)

DEFERRED INFLOWS / (OUTFLOWS) OF RESOURCES
Deferred Inflows of Resources: In governmental funds, future payments for receivables on delinquent property taxes, business taxes and deferred impact fees are treated as deferred inflows of resources. In government-wide statements, future payments of delinquent property taxes, business taxes and deferred impact fees are recorded as an offset to receivables. 13,705,973 Net pension liability and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in t
he governmental fund financial statements:

Pension related deferred outflows of resources - net of $1,793,113 allocated to the internal service funds 36,099,434 Aggregate net pension liabilities - net of $7,692,179 allocated to the internal service funds (116,357,442) Pension related deferred inflows of resources - net of $55,670 allocated to the internal service funds (1,355,115) (81,613,123) Total Net Position - Governmental Activities 798,423,766$

CITY OF VISALIA

RECONCILIATION OF THE BALANCE SHEET -

GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
JUNE 30, 2025

38 The accompanying notes are an integral part of these financial statements .

CITY OF VISALIA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Major Funds
General
Fund
Measure N -
Special Revenue
F
und
American
Rescue Plan -
S
pecial Revenue
Fund

REVENUES
Sales Taxes 48, 662,242$ $ 18,733,236 -$
Property Taxes 37,080,901 - - Other Taxes 11,574,868 - - Subventions and Grants 2,779,212 41,811 21,936,281 License and Permits 49,532 - - Fees and Fines 1,325,640 - - Uses of Money and Property 3,061,522 2,113,021 662,830 Charges for Current Services 6,298,321 - - Miscellaneous 1,392,021 41,563 302 Total Revenues 112,224,259 20,929,631 22,599,413

EXPENDITURES
Current:

General Government 3,206,327 228,496 - Community Development 7,001,361 - - Housing & Community Grants - - - Public Safety:

Fire 19,230,079 1,802,954 -
Police 44,038,681 7,047,496 -
Public Works 4,145,799 - - Parks & Recreation 8,790,090 888,720 - Capital Outlay 8,685,603 5,104,444 1,308,729 Debt Service (Note 7):

Principal 602,649 309,507 -
Interest and Fiscal Charges 42,899 28,855 - Total Expenditures 95,743,488 15,410,472 1,308,729 Excess (Deficiency) of
Revenues over (Under) Expenditures 16,480,771 5,519,159 21,290,684 Other Financing Sources (Uses)
Proceeds From Sale of Capital Assets 18,500 - - Subscription Assets Acquired 392,903 - - Issuance of Debt - Leases Acquired 15,953 - - Transfers In (Note 4A) 23,300,634 24,082 - Transfers Out (Note 4A) (12,700,990) (242,500) (23,112,970) Total Other Financing Sources (Uses) 11,027,000 (218,418) (23,112,970) Net Change in Fund Balances 27,507,771 5,300,741 (1,822,286) Fund Balances - Beginning of Year 59,096,010 36,900,255 1,822,286 Fund Balances - End of Year 86,603,781$ 42,200,996$ -$ Major Funds

39 The accompanying notes are an integral part of these financial statements.

CITY OF VISALIA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025
Non-Major Funds
Transportation -
Capital Project
F
und
Civic Center -
Capital Project
F
und
All Other
Governmental
F
unds Total

REVENUES
S
ales Taxes -$ -$ 18,405,303$ 85,800,781$ Property Taxes - - - 37,080,901 Other Taxes - - 101,448 11,676,316 Subventions and Grants - - 26,661,789 51,419,093 License and Permits - - 8,710 58,242 Fees and Fines 7,248,428 - 9,165,240 17,739,308 Uses of Money and Property 1,985,126 4,291,442 7,660,398 19,774,339 Charges for Current Services - - 6,585,402 12,883,723 Miscellaneous 501,720 26 399,594 2,335,226 Total Revenues 9,735,274 4,291,468 68,987,884 238,767,929

EXPENDITURES
Current:

General Government - 35,794 769,680 4,240,297 Community Development - - 100,226 7,101,587 Housing & Community Grants - - 2,906,613 2,906,613 Public Safety:

Fire - - 3,419,362 24,452,395 Police - - 5,150,561 56,236,738 Public Works 63,393 - 2,908,468 7,117,660 Parks & Recreation - - 4,817,068 14,495,878 Capital Outlay 5,077,804 4,794,134 32,252,481 57,223,195 Debt Service (Note 7):

Principal - - 1,066,343 1,978,499 Interest and Fiscal Charges - - 212,513 284,267 Total Expenditures 5,141,197 4,829,928 53,603,315 176,037,129 Excess (Deficiency) of
Revenues over (Under) Expenditures 4,594,077 (538,460) 15,384,569 62,730,800 Other Financing Sources (Uses)
Proceeds From Sale of Capital Assets - - - 18,500 Subscription Assets Acquired - - - 392,903 Issuance of Debt - Leases Acquired - - - 15,953 Transfers In (Note 4A) - - 9,718,758 33,043,474 Transfers Out (Note 4A) - - (1,238,942) (37,295,402) Total Other Financing Sources (Uses) - - 8,479,816 (3,824,572) Net Change in Fund Balances 4,594,077 (538,460) 23,864,385 58,906,228 Fund Balances - Beginning of Year 31,443,342 74,101,431 148,681,479 352,044,803 Fund Balances - End of Year 36,037,419$ 73,562,971$ 172,545,864$ 410,951,031$ Major Funds

40 41

The accompanying notes are an integral part of these financial statements .

Total Net Changes in Fund Balances - Governmental Funds 58,906,228$ CAPITAL OUTLAY: In governmental funds, the cost of capital assets are reported as expenditures. In the statement of activities, costs of those assets are allocated over their estimated useful lives as depreciation and amortization expense. The difference between capital outlay expenditures and depreciation expense for the period is:

Expenditures for Capital Outlay 41,671,167$
Net Retirements of Capital Assets (1,508,711)
Depreciation and Amortization Expenses (12,321,164) 27,841,292 DEBT SERVICE: In governmental funds, repayments of long-term debt are reported as expenditures. In the government-wide statements, repayments of long-term debt are reported as reduction of liabilities. Expenditures for repayment of the principal portion of the long-term debt were:

Principal Payments of Long-Term Debt 1,066,343
Principal Payments of Lease Liabilities 24,421
Principal Payments of Subscription-Based Information Technology Arrangements 887,735 1,978,499 In governmental funds, repayments for delinquent property taxes, business taxes, and deferred impact fees are recognized as revenue. In government-wide statements, repayments of delinquent property taxes, business taxes, and deferred impact fees are recorded as reduction of receivables. Change in unavailable revenue relating to delinquent property taxes, business taxes, and deferred impact fees: 2,281,543 Internal service funds are used by management to charge the cost of certain activities, such as insurance, fleet services, compensated absences, and information services, to individual governmental and proprietary funds. The portion of the net revenue (expense) of these internal allocations to governmental activities was: 232,463 Pension Related Expenses (3,794,052)
Total Change in Net Position - Governmental Activities 87,445,973$

CITY OF VISALIA

RECONCILIATION OF THE NET CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS

WITH THE CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2025

42 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

43 Major Proprietary Funds

MAJOR PROPRIETARY FUNDS

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

The funds described below were determined to be Major Funds by the City in fiscal year 202 4-25.

Individual non-major funds are presented in the Supplementary Information section.

WATER RECLAMATION FACILITY
Established to account for the collection and treatment of wastewater. Revenue is provided by user charges and impact fees as well as limited grant funding. Formerly known as Wastewater Fund.

STORM SEWER MAINTENANCE
Established to account for the operations of the City’s storm and sewer drain activity. Revenue is provided by user charges and impact fees as well as limited grant funding.

SOLID WASTE
Established to account for the operations of collecting and disposing of solid waste , Solid Waste Environment Enhancement Program (SWEEP) , and street sweeping activities. Revenues are provided by user charges and limited grant funding.

TRANSIT
Established to account for the operations of the City’s transit activities. Revenue is provided by state transportation funds, federal grants, and passenger fares.

Non-Major Proprietary Funds Include the following: (detail found on pages 164-166) Convention Center
Airport
Building Safety
Animal Control

44 The accompanying notes are an integral part of these financial statements .

CITY OF VISALIA

STATE ME NT OF NE T POSITION

PROPRIETARY FUNDS
JUNE 30, 2025
Water
Reclamation
Facility
Storm Sewer
Maintenance
Solid
Waste Transit
ASSETS
Current Assets
Cash and Investments (Note 3) 117,376,439$ 286,579$ 38,364,048$ 47, 421,632$ Accounts Receivable 4,549,229 244,083 2,792,861 270,014 Leases Receivable (Note 14) - - - 24,458 Taxes Receivable 70,536 - 79,353 11,030,315 Current Portion of Note and Loans Receivable (Note 5) 16,453 - - - Supplies - - - - Due from Other Governmental Units 37,800 - 25,858 2,296,877 Prepaid Expenses - - - - Total Current Assets 122,050,457 530,662 41,262,120 61,043,296 Non-Current Assets
Restricted Cash and Investments (Note 3)
Cash Held by Trustee - - - - Cash Held by City 4,365,228 - - - Leases Receivable (Note 14) - - - - Non-current Portion of Note and Loans Receivable (Note 5) 2,318 - - - Capital Assets (Note 6)
Land 6,948,344 9,437,692 1,567,372 4,361,902 Construction in Progress 6,182,084 5,272,223 - 101,018 Buildings 2,937,862 - 197,130 19,589,783 Improvements Other Than Buildings 206,806,075 2,546,130 981,520 2,602,376 Machinery, Equipment and Vehicles 10,172,379 1,233,446 25,548,425 40,414,370 Infrastructure 94,887,257 65,315,447 - - Right-to-use subscription asset (SBITA) - - - 130,374 Accumulated Depreciation and Amortization (100,778,240) (18,050,202) (13,263,803) (37,193,208) Total Non-Current Assets 231,523,307 65,754,736 15,030,644 30,006,615 Total Assets 353,573,764 66,285,398 56,292,764 91,049,911

DEFERRED OUTFLOWS OF RESOURCES
Pension Related (Note 10) 2,271,113 289,146 3,178,641 540,665 Total Deferred Outflows of Resources 2,271,113 289,146 3,178,641 540,665

LIABILITIES
Current Liabilities
Accounts, Interest and Contracts Payable 4,452,150 14,483 1,280,228 3,077,755 Advances from Grantors and Third Parties - - 36,266 8,954,894 Accrued Personnel Costs - - - - Customer Deposits 504,565 - - - Current Portion of Long-Term Liabilities (Note 7):

Compensated Absences 99,740 - 38,862 - Certificates of Participation and Loans 2,706,542 - - - Liability for SBITA Lease (Note 7) - - - 18,276 Liability for Self-insured Claims (Note 11) - - - - Total Current Liabilities 7,762,997 14,483 1,355,356 12,050,925 Non-Current Liabilities
Unearned Revenue 1,321,784 - - - Non-current Portion of Long-term Liabilities (Note 7):

Compensated Absences 414,915 40,705 938,473 124,982 Certificates of Participation and Loans 76,278,474 - - - Liability for SBITA Lease (Note 7) - - - 18,825 Liability for Self-insured Claims (Note 11) - - - - Net Pension Liability (Note 10) 9,742,716 1,240,391 13,635,868 2,319,366 Total Non-Current Liabilities 87,757,889 1,281,096 14,574,341 2,463,173 Total Liabilities 95,520,886 1,295,579 15,929,697 14,514,098

DEFERRED INFLOWS OF RESOURCES
Pension Related (Note 10) 70,508 8,977 98,683 16,785 Lease Related (Note 14) - - - 24,571 Total Deferred Inflows of Resources 70,508 8,977 98,683 41,356

NET POSITION
Net Investment in Capital Assets 148,138,087 65,754,736 15,030,644 29,969,514 Restricted for:

Debt Service 4,365,228 - - - Capital Projects 9,747,317 81,863 3,622,840 341,082 Designated - - - - Unrestricted (Deficit) 98,002,851 (566,611) 24,789,541 46,724,526 Total Net Position 260,253,483$ 65,269,988$ 43,443,025$ 77,035,122$ Major Funds
Business-Type Activities - Enterprise Funds

45 The accompanying notes are an integral part of these financial statements .

JUNE 30, 2025

CITY OF VISALIA

STATE ME NT OF NE T POSITION
PROPRIETARY FUNDS (Continue d)
Non-Major Funds
Non-Major Funds
Total Total
Governmental
Activities
Internal
Service Funds
ASSETS
Current Assets
Cash and Investments (Note 3) 19,441,592$ 222,890,290$ 56,814,536$ Accounts Receivable 951,634 8,807,821 76,157 Leases Receivable (Note 14) 434,363 458,821 - Taxes Receivable - 11,180,204 - Current Portion of Note and Loans Receivable (Note 5) - 16,453 - Supplies 107,983 107,983 1,186,865 Due from Other Governmental Units - 2,360,535 - Prepaid Expenses 28,323 28,323 - Total Current Assets 20,963,895 245,850,430 58,077,558 Non-Current Assets
Restricted Cash and Investments (Note 3)
Cash Held by Trustee - - 516,751 Cash Held by City 1,877,687 6,242,915 - Leases Receivable (Note 14) 4,593,040 4,593,040 - Non-current Portion of Note and Loans Receivable (Note 5) - 2,318 - Capital Assets (Note 6)
Land 3,829,637 26,144,947 -
Construction in Progress 180,173 11,735,498 3,518,017 Buildings 35,648,426 58,373,201 654,910 Improvements Other Than Buildings 18,946,873 231,882,974 218,785 Machinery, Equipment and Vehicles 3,336,006 80,704,626 43,056,557 Infrastructure - 160,202,704 - Right-to-use subscription asset (SBITA) 2,079,046 2,209,420 1,403,183 Accumulated Depreciation and Amortization (37,212,952) (206,498,405) (28,970,175) Total Non-Current Assets 33,277,936 375,593,238 20,398,028 Total Assets 54,241,831 621,443,668 78,475,586

DEFERRED OUTFLOWS OF RESOURCES
Pension Related (Note 10) 2,500,453 8,780,018 1,793,113 Total Deferred Outflows of Resources 2,500,453 8,780,018 1,793,113

LIABILITIES
Current Liabilities
Accounts, Interest and Contracts Payable 1,116,588 9,941,204 2,884,578 Advances from Grantors and Third Parties - 8,991,160 - Accrued Personnel Costs - - 15,512 Customer Deposits 24,400 528,965 - Current Portion of Long-Term Liabilities (Note 7):

Compensated Absences 93,999 232,601 1,129,292 Certificates of Participation and Loans 1,531,049 4,237,591 - Liability for SBITA Lease (Note 7) 254,905 273,181 173,575 Liability for Self-insured Claims (Note 11) - - 938,697 Total Current Liabilities 3,020,941 24,204,702 5,141,654 Non-Current Liabilities
Unearned Revenue 14,946 1,336,730 - Non-current Portion of Long-term Liabilities (Note 7):

Compensated Absences 469,561 1,988,636 10,204,503 Certificates of Participation and Loans 2,668,913 78,947,387 - Liability for SBITA Lease (Note 7) 1,757,328 1,776,153 253,706 Liability for Self-insured Claims (Note 11) - - 11,183,382 Net Pension Liability (Note 10) 10,726,545 37,664,886 7,692,179 Total Non-Current Liabilities 15,637,293 121,713,792 29,333,770 Total Liabilities 18,658,234 145,918,494 34,475,424

DEFERRED INFLOWS OF RESOURCES
Pension Related (Note 10) 77,628 272,581 55,670 Lease Related (Note 14) 4,882,645 4,907,216 - Total Deferred Inflows of Resources 4,960,273 5,179,797 55,670

NET POSITION
Net Investment in Capital Assets 20,595,014 279,487,995 18,478,094 Restricted for:

Debt Service - 4,365,228 - Capital Projects 692,612 14,485,714 563,040 Designated - - - Unrestricted (Deficit) 11,836,151 180,786,458 26,696,471 Total Net Position 33,123,777$ 479,125,395 45,737,605$ Adjustments to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds (5,164,183) Net Position of Business-Type Activities 473,961,212$
Business-Type Activities - Enterprise Funds

46 The accompanying notes are an integral part of these financial statements .

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2025

CITY OF VISALIA

PROPRIETARY FUNDS
Water
Reclamation
F
acility
Storm Sewer
Maintenance
Solid
Waste T ransit

OPERATING REVENUES
Charges for Services 32, 512,180$ 1,378,380$ 23,470,039$ 6,296,565$ Operating Grants and Contributions 37,800 - 638,197 16,012,472 Total Operating Revenues 32,549,980 1,378,380 24,108,236 22,309,037

OPERATING EXPENSES
Salaries, Wages and Employee Benefits 5,694,708 766,311 9,094,741 1,217,109 Maintenance and Operations 16,912,140 1,233,576 14,615,720 23,465,919 Insurance Premiums and Loss Provisions - - - - Depreciation and Amortization 5,544,548 865,247 1,823,958 2,978,840 Total Operating Expenses 28,151,396 2,865,134 25,534,419 27,661,868 Operating Income (Loss) 4,398,584 (1,486,754) (1,426,183) (5,352,831)

NONOPERATING REVENUES (EXPENSES)
Interest Income 6,525,588 20,794 2,270,321 3,068,472 Interest Expense (1,668,141) - - (583) Other Income 1,233,136 70,941 532,130 806,815 Other Expenses (5,198,042) - - - Total Nonoperating Revenues (Expenses) 892,541 91,735 2,802,451 3,874,704 Income (Loss) Before Contributions and Transfers 5,291,125 (1,395,019) 1,376,268 (1,478,127) Capital Grants and Contributions 4,165,309 1,639,772 62,218 4,800,751 Transfers In (Note 4A) - 300,000 169,835 - Transfers Out (Note 4A) - - - - Net Contributions and Transfers 4,165,309 1,939,772 232,053 4,800,751 Change in Net Position 9,456,434 544,753 1,608,321 3,322,624 Net Position - Beginning of Year 250,991,448 64,746,185 42,239,215 73,761,945 Restatement - Change in Accounting Principle (Note 17) (194,399) (20,950) (404,511) (49,447) Net Position - Beginning of Year, As Restated 250,797,049 64,725,235 41,834,704 73,712,498 Net Position - End of Year 260,253,483$ 65,269,988$ 43,443,025$ 77,035,122$ Business-Type Activities - Enterprise Funds
Major Funds

47 The accompanying notes are an integral part of these financial statements .

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

CITY OF VISALIA
PROPRIETARY FUNDS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025
Business-Type Activities - Enterprise Funds
Non-Major Funds
Non-Major Funds
Total Total
Governmental
Activities
Internal
Service Funds

OPERATING REVENUES
Charges for Services 9,612,429$ 73,269,593$ 37,620,106$ Operating Grants and Contributions 151,629 16,840,098 - Total Operating Revenues 9,764,058 90,109,691 37,620,106

OPERATING EXPENSES
Salaries, Wages and Employee Benefits 6,490,029 23,262,898 4,216,027 Maintenance and Operations 4,705,398 60,932,753 9,472,097 Insurance Premiums and Loss Provisions - - 27,599,165 Depreciation and Amortization 1,265,653 12,478,246 2,829,447 Total Operating Expenses 12,461,080 96,673,897 44,116,736 Operating Income (Loss) (2,697,022) (6,564,206) (6,496,630)

NONOPERATING REVENUES (EXPENSES)
Interest Income 1,175,640 13,060,815 2,930,784 Interest Expense (203,451) (1,872,175) (40,039) Other Income 295,564 2,938,586 1,470,576 Other Expenses - (5,198,042) (105,547) Total Nonoperating Revenues (Expenses) 1,267,753 8,929,184 4,255,774 Income (Loss) Before Contributions and Transfers (1,429,269) 2,364,978 (2,240,856) Capital Grants and Contributions - 10,668,050 1,869,750 Transfers In (Note 4A) 4,711,729 5,181,564 4,694,231 Transfers Out (Note 4A) - - (5,623,867) Net Contributions and Transfers 4,711,729 15,849,614 940,114 Change in Net Position 3,282,460 18,214,592 (1,300,742) Net Position - Beginning of Year 30,074,355 461,813,148 51,732,578 Restatement - Change in Accounting Principle (Note 17) (233,038) (902,345) (4,694,231) Net Position - Beginning of Year, As Restated 29,841,317 460,910,803 47,038,347 Net Position - End of Year 33,123,777$ 479,125,395 45,737,605$ Adjustments to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds (1,533,205) Change in Net Position of Business-Type Activities 16,681,387$

48 CITY OF VISALIA

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025

The accompanying notes are an integral part of these financial statements .

Water
Reclamation
Facility
Storm Sew er
Maintenance Solid Waste Transit

CA SH FLOWS FROM OPERA TING A CTIV ITIES
Cash Received from Customers or Other Funds 33,952,767$ 1,386,334$ 24,687,566$ 12,239,532$ Cash Payments to Employees for Services (5,190,094) (754,939) (7,669,924) (1,203,225) Cash Payments to Suppliers for Services (19,118,490) (1,269,512) (13,704,757) (23,034,908) Cash Received from (Payments to) Other Governments (20,028) 63,963 (25,858) (1,214,553) Net Cash Provided (Used) by Operating Activities 9,624,155 (574,154) 3,287,027 (13,213,154)

CA SH FLOWS FROM NONCA PITA L

FINA NCING A CTIV ITIES
Advance (to) from Other Funds 36,742 - (378,237) - Transfers In - 300,000 169,835 - Transfers (Out) - - - - Net Cash Provided by Noncapital
Financing Activities 36,742 300,000 (208,402) -

CA SH FLOWS FROM CA PITA L A ND RELA TED

FINA NCING A CTIV ITIES
Acquisition of Capital Assets (4,449,748) (1,639,772) (3,737,058) (2,887,759) Capital Grants Received - - - 6,357,550 Contributions 4,165,309 1,639,772 62,218 - Interest Expense - - - - Long-Term Debt Payments - Principal (2,650,874) - - - Long-Term Debt Payments - Interest (1,668,141) - - (583) Net Cash Provided (Used) by Capital and Related
Financing Activities (4,603,454) - (3,674,840) 3,469,208

CA SH FLOWS FROM INV ESTING A CTIV ITIES
Interest Earnings 6,525,588 20,794 2,270,321 3,068,472 Net Cash Provided by Investing Activities 6,525,588 20,794 2,270,321 3,068,472 Net Increase (Decrease) in Cash
and Investments 11,583,031 (253,360) 1,674,106 (6,675,474) Cash and Investments - Beginning of Year 110,158,636 539,939 36,689,942 54,097,106 Cash and Investments - End of Year 121,741,667$ 286,579$ 38,364,048$ 47,421,632$ Consisting of:

Unrestricted 117,376,439$ 286,579$ 38,364,048$ 47,421,632$ Restricted 4,365,228 - - - Total Cash and Investments 121,741,667$ 286,579$ 38,364,048$ 47,421,632$ Reconciliation of Operating Income (Loss) to
Cash Flow s from Operating Activities:

Operating Income (Loss) 4,398,584$ (1,486,754)$ (1,426,183)$ (5,352,831)$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Flow s from Operating Activities:

Depreciation and Amortization 5,544,548 865,247 1,823,958 2,978,840 Operating income and cash flow category
classification differences (3,964,906) 70,941 532,130 806,815 Net Change in Assets and Liabilities:

Accounts and Interest Receivable 169,647 (62,987) 41,800 153,995 Taxes Receivable 17,772 63,963 5,400 (11,030,315) Supplies 20,053 20,766 - - Due from Other Governments (37,800) - (25,858) (1,214,553) Prepaid Expenses - - - - Accounts Payable and Contract Payable 2,576,426 (35,936) 911,449 393,910 Deferred Outflow s Pensions (143,133) (19,283) (184,073) (90,942) Deferred Inflow s Pensions & Leases 580,323 88,035 595,256 158,740 Net Pension Liability (144,149) (67,420) 550,524 (105,701) Unearned Revenue 124,031 (20,766) (486) Accrued Personnel Costs - - - Compensated Absences 211,577 10,040 463,110 51,787 Other Liability - - - 37,101 Liability for Self-Insurance Claims - - - - Customer Deposits 271,182 - - - Net Cash Provided (Used) by Operating Activities 9,624,155$ (574,154)$ 3,287,027$ (13,213,154)$ Noncash investing, capital and financing activities
SBITA liability for the acquisition of
right-to-use assets 115,717$
Total noncash investing, capital and financing activities 115,717$ Major Funds
Business-Type Activities - Enterprise Funds

49 CITY OF VISALIA
STATEMENT OF CASH FLOWS (Continued)

PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025

The accompanying notes are an integral part of these financial statements.

Business-Type Activities - Enterprise Funds
Non-Major Funds Governmental
Activities
Non-Major Funds
Total Total

Internal
Service Funds

CA SH FLOWS FROM OPERA TING A CTIV ITIES
Cash Received from Customers or Other Funds 10,016,102$ 82,282,301 44,441,514$ Cash Payments to Employees for Services (6,513,332) (21,331,514) (30,374,642) Cash Payments to Suppliers for Services (4,578,314) (61,705,981) (4,155,632) Cash Received from (Payments to) Other Governments - (1,196,476) - Net Cash Provided (Used) by Operating Activities (1,075,544) (1,951,670) 9,911,240

CA SH FLOWS FROM NONCA PITA L

FINA NCING A CTIV ITIES
Advance (to) from Other Funds - (341,495) - Transfers In 4,711,729 5,181,564 4,694,231 Transfers (Out) - - (5,623,867) Net Cash Provided by Noncapital
Financing Activities 4,711,729 4,840,069 (929,636)

CA SH FLOWS FROM CA PITA L A ND RELA TED

FINA NCING A CTIV ITIES
Acquisition of Capital Assets (178,829) (12,893,166) (4,679,332) Capital Grants Received - 6,357,550 - Contributions - 5,867,299 1,869,750 Interest Expense - - (40,039) Long-Term Debt Payments - Principal (1,462,705) (4,113,579) - Long-Term Debt Payments - Interest (215,659) (1,884,383) - Net Cash Provided (Used) by Capital and Related
Financing Activities (1,857,193) (6,666,279) (2,849,621)

CA SH FLOWS FROM INV ESTING A CTIV ITIES
Interest Earnings 1,175,640 13,060,815 2,930,784 Net Cash Provided by Investing Activities 1,175,640 13,060,815 2,930,784 Net Increase (Decrease) in Cash
and Investments 2,954,632 9,282,935 9,062,767 Cash and Investments - Beginning of Year 18,364,647 219,850,270 48,268,520 Cash and Investments - End of Year 21,319,279$ 229,133,205$ 57,331,287$ Consisting of:

Unrestricted 19,441,592$ 222,890,290$ 56,814,536$ Restricted 1,877,687 6,242,915 516,751 Total Cash and Investments 21,319,279$ 229,133,205$ 57,331,287$ Reconciliation of Operating Income (Loss) to
Cash Flow s from Operating Activities:

Operating Income (Loss) (2,697,022)$ (6,564,206)$ (6,496,630)$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Flow s from Operating Activities:

Depreciation and Amortization 1,265,653 12,478,246 2,829,447 Operating income and cash flow category
classification differences 295,564 (2,259,456) 1,365,029 Net Change in Assets and Liabilities:

Accounts and Interest Receivable (43,520) 258,935 (50,220) Taxes Receivable - (10,943,180) - Supplies (64,888) (24,069) 326,237 Due from Other Governments - (1,278,211) - Prepaid Expenses 7,198 7,198 1,072,769 Accounts Payable and Contract Payable (1,681,194) 2,164,655 1,988,360 Deferred Outflow s Pensions 159,251 (278,180) 547,619 Deferred Inflow s Pensions & Leases 172,672 1,595,026 (119,707) Net Pension Liability (558,761) (325,507) (423,912) Unearned Revenue (65,850) 36,929 - Accrued Personnel Costs - - 9,673 Compensated Absences 203,535 940,049 5,215,792 Other Liability 1,968,793 2,005,894 427,281 Liability for Self-Insurance Claims - - 3,219,502 Customer Deposits (36,975) 234,207 - Net Cash Provided (Used) by Operating Activities (1,075,544)$ (1,951,670)$ 9,911,240$ Noncash investing, capital and financing activities
SBITA liability for the acquisition of
right-to-use assets 2,014,562$ 2,130,279$ 599,423$ Total noncash investing, capital and financing activities 2,014,562$ 2,130,279$ 599,423$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

50 Fiduciary Funds

FIDUCIARY FUNDS

Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the Government-wide financial statements but are presented in separate Fiduciary Fund financial statements.

The Fiduciary Funds include the following Custodial Funds:

Property and Business Improvement District #5 (PBID)
The City collects the district ’s assessments on real property in the district to improve the district. The effective dates for the district are January 1, 2020 through December 31, 2029.

Village West Improvement District (Village West)
The City collects the district’s assessments on real property in the district to repay bonds for the repair of a private street.

Orchard Walk Underground Utilities District (Orchard Walk) The City collects the district’s assessments on real property in the district to pay for underground utilities.

Atwood Water Main Assessment District (Atwood)
The City collects the district’s assessment s on real property in the district to repay bonds for connection to the Cal Water main extension.

Laura Water Main Assessment District (Laura)
The City collects the district’s assessment s on real property in the district to repay bonds for connection to the Cal Water main extension.

Visalia Tourism & Marketing District (VTMD)
The City collects the district’s assessments on room nights in the district to pay for promotion of travel and tourism specific to Visalia.

The Fiduciary Funds also include the following Private Purpose Trust Fund:

Successor Agency
The Successor Agency is responsible for the wind down of the affairs of the dissolved Redevelopment Agency of the City of Visalia (RDA). It is responsible for fulfilling the obligations of the former RDA and is also responsible for revenue collection, maintaining bond reserves, and disposing of excess property. The Successor Agency is overseen by an oversight board which is comprised primarily of representatives of other affected taxing agencies and the City.

`
51 The accompanying notes are an integral part of these financial statements .

Custodial
Funds
Successor
Agency
Private Purpose
Trust Fund
ASSETS
Cash and Investments (Note 3) 713,086$ 345,003$
Restricted Cash and Investments (Note 3) - 541,454 Accounts Receivable 155,978 -
District Assessment Receivable 25,873 -
Notes and Loan Receivable (Note 5) - 64,036 Land Held For Resale - 2,824,503
Total Assets 894,937 3,774,996

LIABILITIES
Accounts, Interest, and Contracts Payable 81,630 20,435 Deposits 41,124 -
Due to City 105,823 -
Long - Term Liabilities (Note 7):

Due Within One Year - 382,451
Due in More Than One Year - 11,328,964
Total Long - Term Liabilities - 11,711,415 Total Liabilities 228,577 11,731,850

NET POSITION
Restricted for:

Held in Trust - (7,956,854)
Individuals, Organizations, and Other Governments 666,360 - Total Net Position 666,360$ (7,956,854)$

CITY OF VISALIA

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2025
`
52 The accompanying notes are an integral part of these financial statements .

Custodial
Funds
Successor
Agency
Private Purpose
Trust Fund
Additions
Redevelopment Property Taxes Trust Funds -$ 1,513,160$ Use of Money and Property 38,752 60,170
Revenue from District Assessments 1,014,591 -
Miscellaneous Revenue 298,798 -
Total Additions 1,352,141 1,573,330
Deductions
Obligation Requirements
Interest on Bonds and Notes Payable 11,219 264,724 Total Obligation Requirements 11,219 264,724
Administrative Expenses 6,886 120,904
Total Administrative Expenses 6,886 120,904
Distribution of District Assessment 1,309,337 -
Principal on Bonds and Notes Payable 60,666 -
Total Distribution of District Assessment 1,370,003 - Total Deductions 1,388,108 385,628
Change in Net Position (35,967) 1,187,702
Net Position - Beginning of Year 702,327 (9,144,556) Net Position (Deficit) - End of Year 666,360$ (7,956,854)$ FOR THE YEAR ENDED JUNE 30, 2025

CITY OF VISALIA

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
53 NOTES TO THE

FINANCIAL

STATEMENTS

54 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

55 Notes to the Financial Statements
TABLE OF CONTENTS – NOTES TO THE FINANCIAL STATEMENTS
Page

Reporting Entity and Accounting Policies:

Note 1 – Summary of Significant Accounting Policies ................................................................................ 57

DETAILED NOTES ON FUNDS:

Note 2 – Budgets and Budgetary Accounting ............................................................................................. 69 Note 3 – Cash and Investments .................................................................................................................. 70 Note 4 – Interfund Transactions ................................................................................................................. 76 Note 5 – Notes and Loans Receivable ........................................................................................................ 78 Note 6 – Capital Assets ............................................................................................................................... 81 Note 7 – Long Term Liabilities .................................................................................................................... 83 Note 8 – Debt Without City Commitment .................................................................................................. 88 Note 9 – Fund Balance and Net Position Classifications ............................................................................ 89 Note 10 – Employee Benefits ..................................................................................................................... 92 Note 14 – Leases Receivable ...................................................................................................................... 102

OTHER INFORMATION:

Note 11 – Risk Management ...................................................................................................................... 100 Note 12 – Contingent Liabilities and Commitments ................................................................................... 101 Note 13 – Transactions with Related Parties ............................................................................................. 102 Note 15 – Pledged Revenues.………………………………………………………………………………………………………………. 10 4 Note 16 – Subsequent Events………………………………………………………………………………………………………………. 10 4 Note 17 – Restatements and Adjustments..…………………………………………………………………………………………. 10 4

56 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

57 Notes to the Financial Statements
NOTE 1 − SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The City of Visalia, California (“the City”) was founded in 1852 and incorporated in 1874. It became a charter city in 1923. The City operates under the Council -Manager form of government and provides the following services:
public safety (police and fire), highways and streets, wastewater, solid waste, transit, street sweeping, airport facilities, culture -recreation, public improvements, planning and zoning, general administration services, and redevelopment.

The financial statements and accounting policies of the City conform with accounting principles generally accepted in the United States of America (U.S. GAAP) applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard- setting body for establishing governmental accounting and financial reporting principles. Significant accounting policies are summarized below.

A. Reporting Entity

As required by U.S. GAAP , these 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 so data from these units are combined with data of the primary government. Each component unit has a June 30 year -end. The blended component unit included in the City’s financial statements is identified below with a brief explanation of the reason for its inclusion.

The Visalia Public Finance Authority (VPFA) was established pursuant to a joint exercise of powers dated February 1991, by and between the City and the Visalia Community Redevelopment Agency. The VPFA has the power to issue bonds to pay the cost of any public capital improvements. The VPFA is controlled by the City and has the same governing body as the City, which also performs accounting and administrative functions for the VPFA. The financial activities of the VPFA are included in the 2014 Refunding Certificates of Participation Debt Service Fund and the Convention Center Enterprise Fund.

Financial statements or financial information for the above component unit may be obtained from the City of Visalia at 707 West Acequia, Visalia, California 93291.

The financial statements exclude the following:

On June 2, 2003, the Visalia Civic Facilities Authority (VCFA) joint powers agreement was established by the City and the Visalia Unified School District (VUSD). The VCFA has the authority to issue bonds, incur indebtedness, and enter into agreements to acquire real property. The VCFA is administered by the Board of Directors, which consists of four members, two from the City Council and two from the VUSD. The VCFA is not a component unit of the City.

The Downtown Improvement District (District) was incorporated under the Nonprofit Public Benefit Corporation Law of the State of California for the purpose of making improvements in the City’s downtown area. The City collects the District assessment revenue on behalf of the D istrict. The District has the sole discretion on how revenues are to be spent. A twenty -one-member Board, comprised of mainly downtown land and business owners, governs the D istrict. A Council member is a sitting member of the Board. The District is accounted for in the Property and Business Improvement District Agency Funds . The District is not a component unit of the City.

The Village West Assessment District (VWAD) was established to collect the district’s assessments on real property in the district to repay bonds for the repair of a private street. The VWAD is not a component unit of the City.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

58 Notes to the Financial Statements
NOTE 1 − SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

A. Reporting Entity (Continued)

The Orchard Walk Underground Utilities District (OWUUD) was established to collect assessments on real property in the district to repay bonds for underground utilities. The OWUUD is not a component unit of the City.

The Atwood Water Main Assessment District ( AWMAD) was established to collect assessments on real property in the district to repay bonds for Cal Water main extensions. The AWMAD is not a component unit of the City.

The Laura Water Main Assessment District (LWMAD) was established to collect assessments on real property in the district to repay bonds for Cal Water main extensions. The LWMAD is not a component unit of the City.

The Visalia Tourism & Marketing District (VTMD) was established to collect assessments on room nights in the district to pay for promotion of travel and tourism specific to Visalia. The V TMD is not a component unit of the City.

The Visalia Redevelopment Successor Agency (Successor Agency) accounts for assets transferred from the former redevelopment agency (RDA) which was dissolved as of January 31, 2012. The sole purpose of this fund is to retire debt of the former RDA. The Successor Agency is subject to the financial accountability of the Successor Agency Board that is comprised of the City Council of the City of Visalia and accordingly, is a component unit of the City although it is a separate legal entity .

B. Basis of Presentation

The accompanying financial statements are presented on the basis set forth in Governmental Accounting Standards Board Statements No. 34, Basic Financial Statements - and Management’s Discussion and Analysis − for State and Local Governments ; No. 54, Fund Balance Reporting and Governmental Fund Type Definitions ; No. 36, Recipient Reporting for Certain Non- exchange Revenues, an Amendment of GASB Statement No. 33; No. 37, Basic Financial Statements − and Management’s Discussion and Analysis − for State and Local Governments; Omnibus; and No. 38, Certain Financial Statement Note Disclosures.

Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City and its component unit). These statements include the financial activities of the overall City government, except for fiduciary activities. Certain eliminations have been made as prescribed by GASB statement No. 34 to minimize the double counting of internal activities in regard to inter-fund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal fund transactions have been eliminated; however, those transactions between governmental and business -type activities have not been eliminated.

The following inter-fund activities have been eliminated:

• Due to/from other funds
• Advances to/from other funds
• Transfers in/out

These statements distinguish between the governmental and business -type activities of the City.

Governmental activities generally are financed through taxes, intergovernmental revenues, and other non- exchange transactions. Business -type activities are financed in whole or in part by fees charged to external parties.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

59 Notes to the Financial Statements
NOTE 1 − SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

B. Basis of Presentation (Continued)

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business -type activities of the City and for each function of the City’s governmental activities.

Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients for goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

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

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

C. Major Funds

GASB Statement No. 34 defines major funds and requires that the City’s major governmental and business -type funds be identified and presented separately in the fund financial statements. All other funds, called non- major funds, are combined, and reported in a single column, regardless of their fund type.

Major funds are defined as funds that have either assets, liabilities, revenues, or expenditures/expenses equal to ten percent of their fund type total and five percent of the grand total. The General Fund is always a major fund.

The City may also select other funds it believes should be presented as major funds.

The City reported the following major governmental funds in the accompanying financial statements .

General Fund is used to account for all the general revenues of the City not specifically levied or collected for other City funds and their related expenditures. The General Fund accounts for all financial resources of a governmental unit which are not accounted for in another fund. The General Fund includes the Capital Project Funds and Emergency Reserve Fund.

Measure N - Special Revenue Fund Measure N is used to account for increased public safety services including police and fire, repair and maintenance for streets and roads, and maintenance of parks and trails. Measure N provides the City with a reliable, ongoing local source of funding which is locally controlled with citizen oversight.

Financing is provided by the ½ cent sales tax ballot measure (N) approved by voters during the November 8, 2016 election.

American Rescue Plan - Special Revenue Fund e stablished to track and account for American Rescue Plan Act federal grant funding. Monies can only be used according to the plan guidelines.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

60 Notes to the Financial Statements
NOTE 1 − SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

C. Major Funds (Continued)

Transportation - Capital Project Fund is used to account for the financing and construction of streets, roads, and various transportation infrastructure and facilities. Funding is provided by Transportation Impact Fees.

Civic Center - Capital Project Fund is used to account for the construction of the Civic Center and related capital improvement projects. Revenue is collected from land sales, one -time monies such as incentive revenues and General Fund surplus or other transfers authorized by City Council.

The City reported the following major enterprise funds in the accompanying financial statements.

Water Reclamation Facility Fund is used to account for the collection, treatment, and disposal of wastewater.

Revenue is provided by user charges and impact fees a s well as limited grant funding. Formerly known as the Wastewater Fund.

Storm Sewer Maintenance Fund is used to account for the operations of the City’s storm and sewer drain activity. Revenue is provided by user charges and impact fees as well as limited grant funding.

Solid Waste Fund is used to account for the operations of collecting and disposing of solid waste and street sweeping activities. Revenues are provided by user charges and limited grant funding.

Transit Fund is used to account for the operations of the City’s transit activities. Revenue is provided by state transportation funds, federal grants, and passenger fares.

The City also reports the following fund types:

Internal Service Funds The funds account for fleet services, vehicle replacement, information services, risk management, health benefits, compensated absences, and building maintenance; all of which are provided to other departments on a cost-reimbursement basis.

Fiduciary Funds Custodial and Private Purpose Trust Funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. Custodial funds use the economic resources measurement focus. The financial activities of these funds are excluded from the Government-wide financial statements but are presented in separate Fiduciary Fund financial statements. Custodial Funds maintained by the City are the Property and Business Improvement District #5 , Village West Improvement District, Orchard Walk Underground Utilities District, Atwood Water Main Assessment District, Laura Water Main Assessment District , and the Visalia Tourism & Marketing District . A Private Purpose Trust Fund maintained by the City is the Redevelopment Successor Agency.

D. Basis of Accounting

The government -wide and proprietary financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. The Custodial funds use the economic resources measurement focus and are also reported using the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

61 Notes to the Financial Statements
NOTE 1 − SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

D. Basis of Accounting (Continued)

City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year -end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of governmental long -term debt and acquisitions under leases are reported as other financing sources.

Those revenues susceptible to accrual are federal and state grants and subventions, property taxes, sales taxes, franchise taxes, transient occupancy taxes, certain charges for services and interest revenue. Fines, licenses, permits, and charges for services are not susceptible to accrual because they are not measurable until received in cash.

Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and contributions. On the accrual basis of accounting, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

The City may fund programs with a combination of cost -reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position may be available to finance program expenditures. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary. Certain indirect costs are included in program expenses reported for individual functions, activities, and interest.

E. Property Tax

Tulare County (the County) assesses properties, and it bills, collects, and distributes property taxes to the City.

The County remits the taxes periodically throughout the year, as they are paid, with the largest amounts in December and April of each year. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year.

Secured property tax is due in two installments, on November 1 and February 1, and becomes a lien on those dates. It becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is due on August 3 1 and becomes delinquent if not paid by that date . Collection of delinquent accounts is the responsibility of the County. Delinquent property taxes are remitted by the County, to the City, periodically throughout the year as they are paid.

The term “unsecured” refers to taxes on personal property other than real estate, land and buildings. These taxes are secured by liens on the property being taxed. Property tax revenues are recognized by the City in the fiscal year they are assessed provided they become available as defined above.

F. Receivables

Billed but unpaid services provided to individuals or non- governmental entities are recorded as “receivables.” Services provided to other governmental entities are recorded as “due from other government al units.” Grant revenues and receivables are recorded when earned on grants that have been approved and funded by the grantor.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

62 Notes to the Financial Statements
NOTE 1 − SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

G. Unearned Revenue

Unearned revenue is recognized for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues are prepaid charges for services and grants received but not yet earned.

H. Compensated Absences

Compensated absences comprise unused vacation leave, certain compensated time off, and sick leave that is estimated to be more than likely used in the future , all for which are accrued as earned. In addition, a n employee with 10 years or more of continuous service will be compensated for remaining earned sick leave at 30% of its value on their retirement date. Also included is a n employee with 20 years or more of continuous service with the City , who will be compensated for unused sick leave at 30% of its value on their resignation date. The City’s liability for compensated absences is recorded in Proprietary Funds and Internal Service Funds as appropriate. The liability for compensated absences is determined annually. Compensated absences are liquidated by the fund that has recorded the liability. The governmental activities compensated absences are liquidated by the Compensated Absences Internal Service Fund.

I. Land Held for Redevelopment

Land held for redevelopment is stated at the lower of historical cost or net realizable value, if estimable.

J. Capital Assets

Capital assets , in general, are those purchased or acquired with an original cost of $5,000 or more .

Infrastructure, Land, and technology equipment are included regardless of cost . All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value.

With the implementation of GASB Statement No. 34 during the 2002 -03 fiscal year, the City has recorded all its public domain (infrastructure) capital assets, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems. GASB Statement No. 34 requires that all capital assets with limited useful lives be depreciated over their estimated useful lives.

The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets. Depreciation is calculated using the straight -line method, which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The City has assigned the standard useful lives listed below to capital assets. Several asset categories have ranges for the useful lives to cover a wide range of assets that are listed in each asset class. The useful life will be consistent for each individual type of asset.

Buildings, storage buildings, and restrooms 10 - 50 years Improvements other than buildings 20 - 40 years
Infrastructure 40 – 100 years
Machinery, equipment, and vehicles 2 - 25 years

The City of Visalia Capital Asset Capitalization Policy, which contains more details concerning the standard useful lives of individual asset types within the categories listed above, may be obtained from the City of Visalia at 707 West Acequia, Visalia, California 93291.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

63 Notes to the Financial Statements
NOTE 1 − SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

J. Capital Assets (Continued)

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

Some capital assets may be acquired using federal and state grant funds, or they may be contributed by developers or other governments. GASB Statement No. 34 requires that these contributions be accounted for as revenues at the time the capital assets are contributed.

K. Prepaid Items and Supplies

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items and supplies in both the government-wide and fund financial statements by using the purchase method.

A nonspendable fund balance has been reported in the governmental funds to show that inventories and prepaid items do not constitute “available spendable resources,” even though they are a component of current assets.

L. Fund Balance

In the Fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned or unassigned. Each of these components of fund balance is classified based primarily on the extent to which the City is bound to honor constraints on how specific amounts can be spent.

1. Nonspendable Fund Balance – amounts that are inherently nonspendable such as prepaids, long term receivables, advances, and supplies.

4. Assigned Fund Balance - amounts that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance.

The intent can be expressed by the City Council itself or by an official to which the governing body has delegated the authority.

5. Unassigned Fund Balance - the residual positive net resources of the General Fund in excess of what can properly be classified in one of the other four categories. This amount is reported only in the General Fund except in cases of negative fund balance. Negative fund balances in other governmental funds are reported as Unassigned Fund Balance.

The City Council establishes, modifies, or rescinds fund balance commitments and assignments by passage of an ordinance or resolution. Assignments may be established and modified by the City Council, City Manager, or Finance Director.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

64 Notes to the Financial Statements
NOTE 1 − SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

L. Fund Balance (Continued)

M. Net Position

In governmental-wide and proprietary fund financial statements, net positions are categorized as follows:

Net Investment in Capital Assets - This component of net position consists of capital assets, net of accumulated depreciation/amortization, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those assets and retention payable.

Restricted - This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

Unrestricted - This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

When expenses are incurred for purposes for which both restricted and unrestricted net position are available, the City's policy is to apply restricted net position first, then unrestricted net position as they are needed.

N. Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities .

Level 2 inputs are inputs (other than quoted prices included within Level 1) that are observable for an asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for an asset or liability.

If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

65 Notes to the Financial Statements
NOTE 1 − SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

O. Encumbrances

The City uses an encumbrance system as an extension of normal budgetary accounting for all funds. Under this system purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations. Encumbrances outstanding at year -end are recorded as restricted, committed, or assigned fund balance, depending on the classification of the resources to be used to liquidate the encumbrance, since they do not constitute expenditures or liabilities. Outstanding encumbrances at year -end are automatically re -appropriated for the following year. Unencumbered and unexpended appropriation lapse at year end except for capital which is rolled to the next fiscal year until project completion . The City has existing resources as of June 30, 2025 to liquidate the encumbrances.

Encumbrances outstanding as of June 30, 2025 are listed below:

P. Leases

Lessee
The City recognizes lease liabilities and the right -to-use lease assets in the government -wide financial statements. The City currently has a lease obligation for land with land improvements.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of the lease payments made.

Lease assets are recorded at the amount of the initial measurement of the lease liabilities. Lease assets are amortized using the straight -line method over the lease term a s there are currently no purchase options associated with any of the leases.

In calculating the lease liability and lease asset, the City uses key estimates and judgements for (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.

Amount
General Fund 11,837,508$
Measure N 3,787,987
Transportation 4,756,521
Civic Center Fund 51,695,433
Non-Major Governmental Funds 56,167,017
Water Reclamation Facility 9,781,503
Storm Sewer Maintenance 81,863
Solid Waste 3,622,840
Transit 341,082
Non-Major Proprietary Funds 692,612
Vehicle Replacement 20,013
Information Services 26,276
142,810,655$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

66 Notes to the Financial Statements
NOTE 1 − SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

P. Leases (Continued)

• The City uses the incremental borrowing rate provided by the State of California as the discount rate.

For this fiscal year the rates were as follows: 3.16% for a lease term of 0 -60 months; 2. 92% for a lease term of 61-120 months; and 3.70% for a lease term of 121 months or more.

• The lease term includes the noncancellable period of the lease as well as any options to extend the lease if the City feels that it will be exercised. Lease payments included in the measurement of the lease liability are composed of fixed payments.

• The City monitors situations that require a remeasurement of a lease and will remeasure a lease asset and liability if the situation is expected to significantly affect the amount of the lease liability.

• Lease assets are reported as right to use along with other capital assets and lease liabilities are reported with long-term obligations on the statement of net position.

Lessor
The City is a lessor for leases of buildings, office and commercial space, and land. The City recognizes leases receivable and deferred inflows of resources in the financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received.

The deferred inflows of resources are initially measured as the initial amount of the lease receivable. The deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

In calculating the lease receivable and deferred inflows of resources, the City uses key estimates and judgements for (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.

• The City uses the incremental borrowing rate provided by the State of California as the discount rate.

For this fiscal year the rates were as follows: 3.16% for a lease term of 0 -60 months; 2. 92% for a lease term of 61-120 months; and 3.70% for a lease term of 121 months or more.

• The lease term includes the noncancellable period of the lease as well as any options to extend the lease if the City feels that it will be exercised. Lease receipts included in the measurement of the lease receivable are composed of fixed payments from the lessee.

• The City monitors situations that would require a remeasurement of a lease and will remeasure the lease receivable and deferred inflows of resources if the situation is expected to significantly affect the amount of the lease receivable.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

67 Notes to the Financial Statements
NOTE 1 − SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Q. Subscription-Based Information Technology Arrangements (SBITA)

The City implemented GASB Statement No. 96, Subscription-Based Information Technology Arrangements (SBITA) in fiscal year 2022- 23 which affects the government -wide financial statements and proprietary fund financial statements. The City recognizes subscription liabilities with a subscription term greater than one year.

At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made.

Subscription assets are recorded at the amount of the initial measurement of the subscription liabilities, any payments made to the SBITA vendor before the commencement of the subscription term, and capitalizable initial implementation cost, less any incentives received from the SBITA vendor at or before the commencement of the subscription term.

Costs associated with a SBITA, other than the subscription payments are accounted for as follows:
• Preliminary Project Stage: Outlays are expensed as incurred. • Initial Implementation Stage: Outlays are capitalized as an addition to the subscription asset. • Operation and Additional Implementation Stage: Outlays are expensed as incurred unless they meet specific capitalization criteria.

Subscription assets are amortized using the straight-line method over the subscription term.

In calculating the subscription asset and liability, the City uses k ey estimates and judgments related to SBITA for (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.

• The City uses the incremental borrowing rate provided by the State of California as the discount rate.

For this fiscal year the rates were as follows: 3.16% for a subscription term of 0-60 months; 2.92% for a subscription term of 61-120 months; and 3.70% for a subscription term of 121 months or more.

• The subscription term includes the noncancellable period of the SBITA as well as any options to extend the subscription if the City feels that it will be exercised. Subscription payments included in the measurement of the subscription liability are composed of fixed payments.

• The City monitors situations that require a remeasurement of the subscription and will remeasure the subscription asset and liability if the situation is expected to significantly affect the amount of the subscription liability.

• Subscription assets are reported as right to use along with other capital assets and subscription liabilities are reported with long-term obligations on the statement of net position.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

68 Notes to the Financial Statements
NOTE 1 − SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

R. Implementation of Accounting Pronouncements

The following GASB Statement has been implemented in the current financial statements:

GASB Statement No. 101, Compensated Absences

The 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 by amending certain previously required disclosures. The provisions of this statement are effective for fiscal year 202 4-25. The City has implemented this statement for June 30, 2025 which effected the financial statements.

GASB Statement No. 102, Certain Risk Disclosures

The objective of this Statement is to provide users of government financial statement with essential information about risk related to a government’s vulnerabilities due to certain concentrations or constraints.

The provisions of this statement are effective for fiscal year 202 4-25. The City has implemented this statement for June 30, 2025. There was no effect on the financial statements as a result of implementing this statement. As there were no disclosures applicable to the City.

S. Future GASB Pronouncements

The following GASB Statements will be implemented in future financial statements:

GASB Statement No. 103, Financial Reporting Model Improvements

The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement also addresses certain application issues. The provisions of this statement are effective for fiscal year 2025-26. The City has elected not to implement GASB Statement No. 103 early and has not determined its effects on the City’s financial statements.

GASB Statement No. 104, Disclosure of Certain Capital Assets

The objective of this Statement is to provide users of government financial statements with essential information about certain types of capital assets. The provisions of this statement are effective for fiscal year 2025-26. The City has elected not to implement GASB Statement No. 104 early and has not determined its effects on the City’s financial statements.

T. New Funds

During fiscal year 2024-25, the City created two new funds. These two funds account for capital projects in the General fund and remaining capital projects relating to ARPA. Both funds roll up in the financial statements into the General Fund, a major governmental fund.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

69 Notes to the Financial Statements
NOTE 2 − BUDGETS AND BUDGETARY ACCOUNTING

A. Budgetary Information

Biennial budgets are legally required to be adopted by the City Council for all funds to provide for operations, debt service, and capital expenditures of the City. Special Revenue Fund revenues are budgeted by entitlements, subventions, and grants; expenditures and transfers are budgeted based upon available fund resources, which include amounts for encumbrances from prior periods. The City adopts an operating budget for the General Fund; all Special Revenue Funds; all Debt Service Funds and all Capital Projects Funds.

Budgetary controls are set by the City Council within State guidelines. The budgetary basis of accounting is consistent with U.S. GAAP applicable to the City’s financial statements.

The City Council adopts an operating budget at the beginning of the City’s fiscal year. The resolution approving the budget authorizes the City Manager to transfer appropriations within fund budgets including salary, capital accounts, and staffing levels provided that total appropriations are not increased. The legally adopted budget requires expenditures not to exceed total appropriations in each fund. Therefore, budget control is at the fund level and resides with the Department Head responsible for that fund. The City Council is required to intervene to increase or decrease the adopted budget. Also, City Council approval is required to spend reserves from any fund.

The City adopts a two -year budget. The operating and capital expenditures have two mid- year reviews each March and one mid-cycle review in June. The City Council is authorized to make appropriation adjustments to the budget during the year as deemed necessary.

B. Excess of Expenditures

The expenditures of the funds below exceeded their appropriate d expenditures as follows. However, sufficient additional resources were available to fund these expenditures.

Major Funds: Non-Major Funds: (Continued)
General Fund 307,552$ Special Revenue Funds:

Ci vi c Center 35,750$ Golf Course 4,405$
Oak Tree Preservati on 36,510$
Non-Major Funds: Conservation 123$
Special Revenue Funds: Housing Successor Agency 1,800$ Groundwater Recharge 457,831$
Kaweah Lake and Local Storm Water Maint 2,524$ Capital Projects Funds:

Spe cial Se rvice Districts 576,919$ Re cre ation Facilitie s 7,293$ Northeast Area 111$ Public Safety Impact Fee 1,099$ Grant & Loan Funds 69,683$ Government Faci l i ti es Impact Fee 2,618$ Measure T - Fi re 11,869$ Facility Im prove m e nts 392$ Measure R - Regi onal 443,450$ Regional Parks 289$ Transportation Grants 825$ Vehi cl e Mi l es Travel ed Impact Fee 13$ A nim al Control Re se rve 125$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

70 Notes to the Financial Statements
NOTE 3 − CASH AND INVESTMENTS

The City pools cash from all sources and all funds, except Cash with Fiscal Agents, so that it can be invested at the maximum yield, consistent with safety and liquidity, while individual funds can make expenditures at any time.

Investments are carried at fair value.

The City’s cash and cash equivalents for statement of cash flows purposes are considered to be cash on hand, demand deposits, restricted cash, and investments held in a cash management investment pool.

Cash and investments as of June 30, 2025, are classified in the Statement of Net Position as follows :

Cash and investments as of June 30, 2025, consist of the following:

A. Investments Authorized by the California Government Code and the City of Visalia’s Investment Policy

The table below identifies the investment types that are authorized for the City of Visalia by the California Government Code (or the City of Visalia’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City of Visalia’s investment policy, where more restrictive) that addresses interest rate risk , credit risk, and concentration of credit risk . This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements with the City of Visalia, rather than the general provisions of the California Government Code or the City of Visalia’s investment policy.

Government-Wi de Statement of Net Posi ti on:

Cash and Investments 6 32,644,590$
Restricted Cash and Investments 12,447,363
Fiduciary Funds Statement of Net Position:

Cash and Investments 1,058,089
Restricted Cash and Investments 541,454
Total Cash and Investments 646,691,496$
Cash on hand 11,550$
De posits with financial institutions 2,971,564
Investments 643,708,382
Total Cash and Investments 646,691,496$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

71 Notes to the Financial Statements
NOTE 3 − CASH AND INVESTMENTS (Continued)

A. Investments Authorized by the California Government Code and the City of Visalia’s Investment Policy (Continued)

Authorized
Investment Type

Maximum
Maturity
Maximum
Percentage
Of Portfolio *
Maximum
Investment
In One Issuer

Credit
Risk

Local Agency Bonds 5 years None None None
U.S. Treasury Obligations 5 years None None None
U.S. Agency Securities 5 years None None None
Banker’s Acceptances 180 days 40% 30% None
Commercial Paper 270 days 25% 10% AAA/Aaa
Negotiable Certificates of Deposit 5 years 30% None None Repurchase Agreements 1 year 20% None None
Reverse Repurchase Agreements 92 days 20% of base value None None Medium-Term Notes 5 years 30% None A
Mutual Funds 5 years 20% 10% AAA/Aaa
Money Market Mutual Funds N/A 20% 10% AAA/Aaa
Mortgage Pass-Through Securities 5 years 20% None None
County Pooled Investment Funds N/A None None None
Managed Investment Pools (CAMP) N/A None None None
Local Agency Investment Fund (LAIF) N/A None $75M None

* Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.

B. Investments Authorized by Debt Agreements

Investment of debt proceeds held by the bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City of Visalia’s investment policy.

The table below identifies the investment types that are authorized for investments held by the bond trustee.

The table also identifies certain provisions of these debt agreements that address interest rate risk , credit risk, and concentration of credit risk.

Authorized
Investment Type

Maximum
Maturity
Maximum
Percentage
Of Portfolio
Maximum
Investment
In One Issuer

Local Agency Bonds 5 years None None
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Banker’s Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 1 year 20% None
Money Market Mutual Funds N/A None None
Mortgage Pass-Through Securities 5 years 20% None
Local Agency Investment Fund (LAIF) N/A None None
Investment Contracts 30 years None None

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

72 Notes to the Financial Statements
NOTE 3 − CASH AND INVESTMENTS (Continued)

C. Disclosures Relating to Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City of Visalia manages its exposure to interest rate risk is 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. The City of Visalia monitors the interest rate risk inherent in its portfolio by measuring the weighted average maturity of its portfolio. The City of Visalia has no specific limitations with respect to this metric.

D. Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations

As of June 30, 2025 , and during the 20 24-25 fiscal year, the City of Visalia did not hold or purchase investments that were highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above), such as interest only treasury strips or mortgage -backed securities.

E. Disclosures Relating to Credit Risk

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City of Visalia’s investment policy, or debt agreements, and the actual rating as of year - end for each investment type. The column marked “ not rated ” identifies those investment types for which GASB Statement No. 40 does not require disclosure as to credit risk:

Weighted Average
Balance at Maturity
Investment Type 06/30/2025 (in Days ) % of Investments
Federal Agency Securities 170,950,707$ 164.19 26.56% U.S. Treasuries 129,763,606 194.55 20.16% Local Agency Investment Fund 20,303,478 N/A 3.15% California Asset Management Program 47,528,937 N/A 7.38% Corporate Medium-Term Notes 91,154,387 121.60 14.16% Municipal Bonds 183,314,311 222.03 28.48% Local Agency Bonds 133,248 0.28 0.02% Held by Bond Trustee:

Money Market Funds 559,708 0.04 0.09% Total 643,708,382$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

73 Notes to the Financial Statements
NOTE 3 − CASH AND INVESTMENTS (Continued)

E. Disclosures Relating to Credit Risk (Continued)

Investment Type
Minimum
Legal
Rating
Moody's
Rating
Standard & Poor's
Rating
% of
Portfolio
Federal Agency Securities 170,950,707$ N/A Aaa AA+ 26.56% U.S. Treasuries 129,763,606 N/A Aaa Not Rated 20.16% Corporate Medium-Term Notes 10,222,590 A Aaa AA+ 1.59% Corporate Medium-Term Notes 13,852,231 A Aa2 AA 2.15% Corporate Medium-Term Notes 10,906,190 A A1 AA 1.69% Corporate Medium-Term Notes 5,005,960 A Aa3 AA- 0.78% Corporate Medium-Term Notes 4,918,550 A A1 AA- 0.76% Corporate Medium-Term Notes 4,464,833 A Aa3 A+ 0.69% Corporate Medium-Term Notes 18,261,481 A A1 A+ 2.84% Corporate Medium-Term Notes 16,627,122 A A1 A 2.58% Corporate Medium-Term Notes 2,991,270 A A3 A 0.46% Corporate Medium-Term Notes 3,904,160 A A2 A- 0.61% Local Agency Investment Fund 20,303,478 N/A Not Rated Not Rated 3.15% California Asset Management Program 47,528,937 N/A Not Rated Not Rated 7.38% Municipal Bonds 989,392 A Aaa AAA 0.15%
Municipal Bonds 6,240,520 A Aa1 AAA 0.97%
Municipal Bonds 2,446,152 A Aa2 AAA 0.38%
Municipal Bonds 1,772,456 A Not Rated AAA 0.27% Municipal Bonds 12,199,474 A Aaa AA+ 1.89%
Municipal Bonds 3,444,311 A Aa1 AA+ 0.53%
Municipal Bonds 3,583,413 A Not Rated AA+ 0.56% Municipal Bonds 9,578,054 A Aa1 AA 1.49%
Municipal Bonds 24,018,071 A Aa2 AA 3.73%
Municipal Bonds 7,944,265 A Aa3 AA 1.23%
Municipal Bonds 2,878,620 A A1 AA 0.45%
Municipal Bonds 6,418,063 A Not Rated AA 1.00% Municipal Bonds 60,988,030 A Aa2 AA- 9.47%
Municipal Bonds 8,311,095 A Aa3 AA- 1.29%
Municipal Bonds 1,895,740 A Not Rated AA- 0.29% Municipal Bonds 12,956,311 A Aa3 A+ 2.01%
Municipal Bonds 2,044,152 A Not Rated A+ 0.32% Municipal Bonds 10,760,806 A Aa2 Not Rated 1.67% Municipal Bonds 4,845,386 A A1 Not Rated 0.75% Local Agency Bonds 133,248 N/A Not Rated Not Rated 0.02% Held by Bond Trustee:

Money Market Funds 559,708 A Aaa-mf AAAm 0.09% Total 643,708,382$ 100.00%

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

74 Notes to the Financial Statements
NOTE 3 − CASH AND INVESTMENTS (Continued)

F. Concentration of Credit Risk

The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer (other than external investment pools and debt explicitly guaranteed by the U.S. government) that represents 5% or more of the total City of Visalia investments are as follows:

G. Custodial Credit Risk

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

GASB Statement No. 40 requires that the following disclosure be made with respect to custodial credit risks relating to deposits and investments: none of the City of Visalia’s deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts. As of June 30, 2025 , none of the City of Visalia investments were held by the broker -dealer (counterparty) that was used by the City of Visalia to buy the securities.

H. Investment in State Investment Pool

The City of Visalia is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City of Visalia’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City of Visalia’s pro -rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Issuer Investment Type Reported
Federal Home Loan Bank Federal Agency Securities 72,226,546$ Federal Farm Credit Bank Federal Agency Securities 68,261,293 U.S. Treasuries U.S. Treasuries 129,763,606
State of California Bonds Municipal Bonds 42,416,344
Total 312,667,789$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

75 Notes to the Financial Statements
NOTE 3 − CASH AND INVESTMENTS (Continued)

H. Investment in State Investment Pool (Continued)

The State Treasurer’s Office reports its investments at fair value. The fair value of securities in the State Treasurer’s pooled investment program, including LAIF, generally is based on quoted market prices. The State Treasurer’s Office performs a quarterly fair market valuation of the pooled investment program portfolio. In addition, the State Treasurer’s Office performs a monthly fair market valuation of all securities held against carrying cost. At June 30, 2025 , these investments matured in an average of 248 days. These valuations and financial statements are posted to the State Treasurer’s Office website at www.treasurer.ca.gov

I. Investment in California Asset Management Program

The City of Visalia is a voluntary participant in the California Asset Management Program (CAMP), which is a permitted investment under California Government Code 53601(p). CAMP is directed by a Board of Trustees, which is made up of experienced local government finance directors and treasurers.

J. Fair Value Measurements

The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2025:

U.S. Treasuries totaling $129.8 million, classified in Level 1 of the fair value hierarchy, are valued at quoted prices in active markets for identical assets. Federal agency securities totaling $170.9 million, corporate medium-term notes totaling $ 91.2 million, municipal bonds totaling $1 83.3 million, and money market funds held by the bond Trustee totaling $.5 million, classified in Level 2 of the fair value hierarchy, are valued using a matrix pricing technique. Matrix pricing is the process of estimating the fair value price of a bond based on the quoted prices of more frequently traded comparable bonds. The Local Agency Investment Fund, California Asset Management Program, and Local Agency Bonds are reported at amortized cost.

Investments by Fair Value Level Level 1 Level 2 U ncategori zed Total Federal Agency Securi ti es -$ 170,950,707$ -$ 170,950,707$ U.S. Treasuri es 129,763,606 - - 129,763,606 Corporate Medi um-Term Notes - 91,154,387 - 91,154,387 Municipal Bonds - 183,314,311 - 183,314,311 Held by Bond Trustee:

Money market funds - 559,708 - 559,708 Subtotal 129,763,606$ 445,979,113$ 575,742,719$ Investments Measured at Amortized Cost
Local Agency Bonds 133,248 133,248
Local Agency Investment Fund 20,303,478 20,303,478 California Asset Management Program 47,528,937 47,528,937 Subtotal 67,965,663$
Total Investments 643,708,382$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

76 Notes to the Financial Statements
NOTE 4 − INTERFUND TRANSACTIONS

A. Transfers Among Funds

With City Council approval, resources may be transferred from one City fund to another. Transfers are used in cases when a fund subsidizes another fund as in the case of the General Fund subsidizing the Convention Center, Animal Control, and Baseball Funds. Transfers are also used between f unds to fund capital projects and debt service payments . T ransfers between funds during the fiscal year ended June 30, 202 5, were as follows:

Amount
Fund Receiving Transfer F und Making Transfer Transferred Governmental Funds:

General Fund Compensated Absences - Internal Servi ces 352,808$ (B) General Fund Ameri can Rescue Pl an 13,047,308 (B) General Fund Ameri can Rescue Pl an 9,900,518 (A) Measure N Vehi cl e Repl acement Fund - Internal Servi ces 24,082 (A) Debt Service Funds:

VPFA 2014 Refunding COP General Fund 126,739 (C) 2015 COP General Fund 591,610 (C) 2015 COP Publ i c Safety Impact Fee - Capi tal Projects 414,852 (C) 2015 COP Measure T Pol i ce - Speci al Revenue 151,362 (C) Capital Projects Funds:

Parking District General Fund 83,350 (B) Baseball General Fund 647,019 (B) Baseball General Fund 2,656,698 (A)
Baseball Ri sk Management 5,000,000 (A) Special Revenue Funds:

Measure R - Local Re cre ational Facilitie s - Capital Proje cts 5,820 (A) Housing & Community Grants Grant & Loan Funds 40,918 (B) Housing & Community Grants General Fund 390 (B) GOVERNMENTAL Funds Sub-Total 33,043,474
Enterprise Funds:

Animal Control General Fund 1,112,109 (B) Animal Control General Fund 567,328 (C) Convention Center General Fund 400,000 (A) Convention Center General Fund 1,544,348 (B) Convention Center General Fund 1,087,944 (C) Solid Waste Ameri can Rescue Pl an 165,144 (B) Solid Waste General Fund 4,691 (B) Storm Sewer Mai ntenance Kaweah Lake and Local Storm Water Mai ntenance - Speci al Revenue 3 00,000 (B) ENTERPRISE Funds Sub-Total 5,181,564
Internal Service Funds:

Compensated Absences General Fund 3,878,764 (B) Compensated Absences Measure N - Speci al Revenue 242,500 (B) Compensated Absences Grant & Loan Funds - Special Revenue 31,414 (B) Compensated Absences Measure T Pol i ce - Speci al Revenue 128,731 (B) Compensated Absences Measure T Fi re - Speci al Revenue 130,050 (B) Compensated Absences Housing & Community Grants - Special Revenue 35,795 (B) Compensated Absences Fl eet Servi ces - Internal Servi ces 106,120 (B) Compensated Absences Informati on Servi ces - Internal Servi ces 122,916 (B) Compensated Absences Ri sk Management - Internal Servi ces 17,941 (B) INTERNAL SERVICE Funds Sub-Total 4,694,231
TOTAL TRANSFERS 42,919,269$
(A) To fund capital expenses
(B) To fund operating expenses
(C) To fund debt service payments

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

77 Notes to the Financial Statements
NOTE 4 − INTERFUND TRANSACTIONS (Continued)

B. Long-Term Interfund Advances

At June 30, 2025 , the funds below had advance balances which were not expected to be repaid within the next year.

C. Due to/from Other Funds

As of June 30, 2025 , the General Fund provided $ 1,798,877 to the Housing & Community Grants Fund to fund operating expenses, $35,198 to the Waterways Fund to fund operating expenses and $26,218 to the Grant & Loan Funds to fund operating expenses which are expected to be repaid within the next year.

D. Internal Balances

Internal balances are presented in the Government -wide financial statements only. They represent the net interfund receivables and payables remaining after the elimination of all such balances within governmental and business-type activities.

Advances From Advances To
Other Funds Other Funds
General Fund -$ 1,948,098$
Special Revenue Funds:

Spec ial Ser v ic e Distr ic ts (Landsc ape & L ighting) (a) 1,226,278 - M easur e R - Regional (b) 721,820 -
Total Adv anc es 1,948,098$ 1,948,098$
The repayment plans for each of the above advances are as follows:
(a) To be repaid through higher assessment fees.
(b) To be repaid from future Measure R Sales Tax.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

78 Notes to the Financial Statements
NOTE 5 − NOTES AND LOANS RECEIVABLE

A. Current Year Transactions and Balances

Balance at Balance at
Issue Date Maturity June 30, 2024 Additions Repayments June 30, 2025

GOVERNMENTAL ACTIVITIES
General Fund
Visalia Successor Agency - - 11,467,268$ 216,961$ 1,015,781$ 10,668,448 Subtotal General Fund 11,467,268 216,961 1,015,781 10,668,448 Housing & Community Grants
1001 N Jacob (TCHA) May 1996 July 2024 200 - 200 - Fairview Village (KMC) Dec 1994 Dec 2034 120,000 - 6,000 114,000 Navigation Center July 2022 June 2042 3,184,480 - 159,224 3,025,256 Navigation Center July 2022 June 2042 1,950,182 - 97,509 1,852,673 Navigation Center July 2022 June 2042 3,628,371 - 181,419 3,446,952 1627 S Garden Public Facility Aug 2019 Aug 2039 320,000 - 20,000 300,000 1627 S Garden Public Facility Aug 2019 Aug 2039 212,000 - 13,250 198,750 Visalia Senior Housing III Jan 2007 Jan 2062 2,720,193 - - 2,720,193 Robinwood April 2007 April 2036 519,989 - 43,332 476,657 Court & Paradise Apts Nov 2010 Nov 2066 500,000 - - 500,000 Highland Gardens Sep 2015 Dec 2070 1,980,000 - - 1,980,000 101 N Strawberry June 2015 Dec 2045 429,150 - - 429,150 SHE 517-519 N Encina May 2018 May 2048 436,656 - - 436,656 Lofts Project Feb 2022 Dec 2057 2,350,898 - - 2,350,898 Sequoia Village Project April 2022 Mar 2057 1,445,454 - 27,272 1,418,182 Majestic Gardens April 2024 April 2044 - 1,800,000 - 1,800,000 Majestic Gardens April 2024 April 2079 - 648,810 - 648,810 Rancho Colegio May 2024 Dec 2081 - 931,604 - 931,604 Habitat for Humanity Assigned Various Various 262,731 467,815 21,233 709,313 CDBG Various Various 675,872 - 50,025 625,847 Cal Home Various Various 561,332 - - 561,332 HOME Various Various 1,815,760 73,392 30,569 1,858,583 NSP Various Various 508,226 - 448,378 59,848 Subtotal Housing & Community Grants 23,621,494 3,921,621 1,098,411 26,444,704 Housing Successor Agency
Kaweah Management (1) June 1996 Nov 2025 250,000 - - 250,000 Kimball Court (1) Aug 1999 Aug 2054 499,895 - - 499,895 Downtown Senior Housing (1) April 2002 April 2057 900,000 - - 900,000 Tulare County Housing Authority (1) Aug 2003 Aug 2058 29,363 - 863 28,500 Encina Triplex Aug 2008 Aug 2048 252,829 - 7,235 245,594 Kaweah Management - East (1) Sep 2009 June 2065 472,708 - - 472,708 Court & Paradise Apts Nov 2010 Nov 2066 500,000 - - 500,000 Mill Creek Parkway $3.0M (KMC) Oct 2015 Oct 2070 2,563,637 - 54,546 2,509,091 Mill Creek Parkway $1.5M (KMC) Mar 2006 Mar 2061 1,033,612 - 27,935 1,005,677 KMC 621 N Santa Fe Dec 2021 Dec 2071 100,000 - - 100,000 617 & 619 Santa Fe (KMC) July 2017 July 2072 150,000 - - 150,000 517-519 N Encina (SHE) May 2018 May 2074 100,000 - - 100,000 Lofts Project Feb 2022 Dec 2057 329,320 - - 329,320 Navigation Center July 2022 June 2042 200,000 - 10,000 190,000 Majestic Gardens April 2024 April 2079 - 1,325,000 - 1,325,000 1029 W Goshen Jan 2011 Jan 2066 124,233 - 2,953 121,280 East Visalia Redevelopment Various Various 32,461 - - 32,461 Habitat for Humanity Assigned Various Various 647,965 - 9,011 638,954 Housing Fund Various Various 59,237 - 1,740 57,497 Subtotal Housing Successor Funds 8,245,260 1,325,000 114,283 9,455,977 Transportation Fund
El Centro Corner (B183341) May 2019 June 2025 47,633 - 47,633 - NW Visalia Senior (B173132) Oct 2019 June 2025 50,256 - 50,256 - J Beast LP (B193168) July 2020 June 2026 56,373 - 28,187 28,186 J Beast LP (B193169) July 2020 June 2026 31,931 - 15,965 15,966 Vaccinated LP (B201416) June 2021 June 2027 103,658 - 34,553 69,105 Vaccinated LP (B201417) June 2021 June 2027 53,364 - 17,788 35,576 Subtotal Transportation Fund 343,215 - 194,382 148,833 Note: (1) Repayment is based on residual cash flow from operations. To the extent there is excess revenues, the developer is required to repay all accrued interest and principal annually.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

79 Notes to the Financial Statements
NOTE 5 − NOTES AND LOANS RECEIVABLE (Continued)

A. Current Year Transactions and Balances (Continued)

Balance at Balance at
Issue Date Maturity June 30, 2024 Additions Repayments June 30, 2025

GOVERNMENTAL ACTIVITIES
Civic Center Fund
Imagine U Museum Dec 2016 Dec 2046 123,878 - 3,529 120,349 Subtotal Civic Center Fund 123,878 - 3,529 120,349 Parking District Fund
Comfort Suites Oct 2002 Oct 2032 96,651 - 10,548 86,103 Subtotal Parking District Fund 96,651 - 10,548 86,103 Waterways Fund
Imagine U Museum Dec 2016 Dec 2046 151,407 - 4,314 147,093 Subtotal Waterways Fund 151,407 - 4,314 147,093 Govt Facilities Impact Fee Fund
El Centro Corner (B183341) May 2019 June 2025 253 - 253 - J Beast LP (B193168) July 2020 June 2026 29,998 - 14,999 14,999 J Beast LP (B193169) July 2020 June 2026 14,736 - 7,368 7,368 Vaccinated LP (B201416) June 2021 June 2027 6,242 - 2,081 4,161 Vaccinated LP (B201417) June 2021 June 2027 26,526 - 8,842 17,684 Subtotal Govt Facilities Impact Fee Fund 77,755 - 33,543 44,212 Public Safety Impact Fee Fund
El Centro Corner (B183341) May 2019 June 2025 3,170 - 3,170 - J Beast LP (B193168) July 2020 June 2026 18,631 - 9,316 9,315 Vaccinated LP (B201417) June 2021 June 2027 19,202 - 6,400 12,802 Subtotal Public Safety Impact Fee Fund 41,003 - 18,886 22,117 Storm Sewer Construction Fund
El Centro Corner (B183341) May 2019 June 2025 207 - 207 - J Beast LP (B193168) July 2020 June 2026 1,316 - 658 658 Vaccinated LP (B201417) June 2021 June 2027 1,356 - 452 904 Subtotal Storm Sewer Construction Fund 2,879 - 1,317 1,562 Total Governmental Activities 44,170,810 5,463,582 2,494,994 47,139,398

BUSINESS - TYPE
Water Reclamation Facility Fund
El Centro Corner (B183341) May 2019 June 2025 2,804 - 2,804 - NW Visalia Senior (B173132) Oct 2019 June 2025 12,552 - 12,552 - 120 W Main St (B150085) May 2015 June 2025 4,933 - 4,933 - J Beast LP (B193168) July 2020 June 2026 26,600 - 13,300 13,300 J Beast LP (B193169) July 2020 June 2026 1,670 - 835 835 Vaccinated LP (B201416) June 2021 June 2027 3,942 - 1,314 2,628 Vaccinated LP (B201417) June 2021 June 2027 3,012 - 1,004 2,008 Subtotal Water Reclamation Facility Fund 55,513 - 36,742 18,771 Total Governmental Activities and Business-Type 44,226,323$ 5,463,582$ 2,531,736$ 47,158,169 Successor Agency
Willow Street Parking Structure 84,786 - 20,750 64,036 Subtotal Successor Agency 84,786$ -$ 20,750$ 64,036 Total Notes and Loans Receivable 44,311,109$ 5,463,582$ 2,552,486$ 47,222,205

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

80 Notes to the Financial Statements
NOTE 5 − NOTES AND LOANS RECEIVABLE (Continued)

B. Notes Receivable

The City loans monies for various purposes in the course of its operations. The General Fund holds notes receivable for deferred impact fees and land sales. The Parking District holds notes relating to payment of downtown parking in - lieu fees. Various housing funds hold notes related to housing development. The Housing Successor Agency loans are mainly for developers who develop housing projects for low -income persons which meet affordabilit y requirements. At June 30, 202 5, these notes receivable totaled $ 47,222,205 in the following funds: $10 ,668,448 in the General Fund, $ 26,444,704 in Housing & Community Grants, $ 9,455,977 in the Housing Successor Agency Fund, $148,833 in the Transportation Fund, $ 120,349 in the Civic Center Fund, $ 86,103 in the Parking District Fund, $147,093 in the Waterways Fund, $44,212 in the Government Facilities Impact Fee Fund, $22,117 in the Public Safety Impact Fee Fund, $1,562 in the Storm Sewer Construction Fund, $ 18,771 in the Water Reclamation Facility Fund, and $64,036 in the Fiduciary Successor Agency.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

81 Notes to the Financial Statements
NOTE 6 − CAPITAL ASSETS

A. Capital Assets Additions and Retirements

Balance Balance
July 1, 2024 Additions Retirements Transfers June 30, 2025 GOVERNMENTAL ACTIVITIES:

Capital assets not being depreciated
Land 42,306,251$ 7,435,782$ -$ -$ 49,742,033$ Construction in progress 65,121,167 22,722,625 (1,507,498) (40,220,890) 46,115,404 107,427,418 30,158,407 (1,507,498) (40,220,890) 95,857,437 Capi tal assets bei ng depreci ated
Buildings 63,080,109 2,510,225 - 6,617,685 72,208,019 Improvements other than buildings 95,111,657 1,607,257 - 6,878 96,725,792 Machinery, equipment and vehicles 57,447,992 6,889,270 (1,265,226) 313,904 63,385,940 Infrastructure - streets, traffic signals & signs 276,771,340 5,185,339 (837,334) 33,282,423 314,401,768 492,411,098 16,192,091 (2,102,560) 40,220,890 546,721,519 Accumulated depreciation
Buildings (20,340,851) (1,312,135) - - (21,652,986) Improvements other than buildings (36,009,250) (2,393,694) - - (38,402,944) Machinery, equipment and vehicles (35,920,470) (3,736,964) 1,073,583 - (38,583,851) Infrastructure - streets, traffic signals & signs (109,046,355) (6,437,969) 837,334 - (114,646,990) (201,316,926) (13,880,762) 1,910,917 - (213,286,771) Intangible assets being amortized
Right-to-use assets - lease assets - Land and land improvements 684,549 15,953 - - 700,502 Right-to-use assets - lease assets - Buildings 230,126 - (230,126) - - Right-to-use assets - SBITA 4,366,313 992,326 (8,973) - 5,349,666 5,280,988 1,008,279 (239,099) - 6,050,168 Accumulated amortization
Right-to-use assets - lease assets - Land and land improvements (80,059) (28,202) - - (108,261) Right-to-use assets - lease assets - Buildings (243,305) - 243,305 - - Right-to-use assets - SBITA (1,655,300) (1,241,647) - - (2,896,947) (1,978,664) (1,269,849) 243,305 - (3,005,208) Governmental Capital Asset Activity, Net 401,823,914$ 32,208,166$ (1,694,935)$ -$ 432,337,145$ Total Governmental Capital assets not being depreciated or amortized 95,857,437$ Total Governmental Capi tal assets bei ng depreci ated or amorti zed 336,479,708$ BUSINESS-TYPE ACTIVITIES:

Capital assets not being depreciated
Land 26,144,947$ -$ -$ -$ 26,144,947$ Construction in progress 8,108,499 3,807,117 (180,118) - 11,735,498 34,253,446 3,807,117 (180,118) - 37,880,445 Capi tal assets bei ng depreci ated
Buildings 58,373,201 - - - 58,373,201 Improvements other than buildings 231,882,974 - - - 231,882,974 Machinery, equipment and vehicles 73,888,657 6,924,534 (108,565) - 80,704,626 Infrastructure - sewer and storm drainage 158,041,189 2,161,515 - - 160,202,704 522,186,021 9,086,049 (108,565) - 531,163,505 Accumulated depreciation
Buildings (24,557,136) (1,210,152) - - (25,767,288) Improvements other than buildings (81,333,181) (4,604,603) - - (85,937,784) Machinery, equipment and vehicles (47,858,248) (4,597,340) 101,939 - (52,353,649) Infrastructure - sewer and storm drainage (40,355,891) (1,965,698) - - (42,321,589) (194,104,456) (12,377,793) 101,939 - (206,380,310) Intangible assets being amortized
Right-to-use assets - SBITA 144,122 2,130,280 (64,982) - 2,209,420 144,122 2,130,280 (64,982) - 2,209,420 Accumulated amortization
Right-to-use assets - SBITA (82,558) (100,453) 64,916 - (118,095) (82,558) (100,453) 64,916 - (118,095) Business-type Capital Asset Activity, Net 362,396,575$ 2,545,200$ (186,810)$ -$ 364,754,965$ Total Business-Type Capital assets not being depreciated or amortized 37,880,445$ Total Business-Type Capital assets being depreciated or amortized 326,874,520$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

82 Notes to the Financial Statements
NOTE 6 − CAPITAL ASSETS (Continued)

B. Depreciation and Amortization Expense

Depreciation and amortization expense is charged to functions and programs based on their usage of the related assets. The accounts allocated to each function or programs are as follows:

Governmental Activities
General Government 6,838,094$
Public Works 1,504,607
Public Safety:

Police 1,795,672
Fire 544,668
Community Services 1,638,123
Capital Assets Held by the City's Internal Service Funds are Charged to the Various Functions Based on their
Usage of the Assets 2,829,447
Total Governmental Activities 15,150,611$
Business-Type Activities
Water Reclamation Facility 5,544,548$
Storm Sewer Maintenance 865,247
Solid Waste 1,823,958
Transit 2,978,840
Convention Center 715,557
Airport 276,913
Building Safety 93,126
Animal Control 180,057
Total Business-Type Activities 12,478,246$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

83 Notes to the Financial Statements
NOTE 7 − LONG-TERM LIABILITIES

A. Current Year Transactions and Balances

Balance at
Original Issue June 30, 2024 Balance at Due Within
Amount A s Restated Additions Reti rements June 30, 2025 One Year Governmental Activity Debt
Ce rtificate s of Participation:
2015 COP 13,121,230$ 6,278,556$ $ - (948,743)$ $ 5,329,813 $ 996,364 2014 VPFA - Refunding (1) 1,180,800 241,600 - (117,600) 124,000 124,000 14,302,030 6,520,156 - (1,066,343) 5,453,813 1,120,364 Lease Li abi l i ti es (2) - 616,259 15,953 (24,421) 607,791 24,790 SBITA L iabilitie s (3) - 2,410,999 392,903 (887,735) 1,916,167 863,163 Internal Service Funds:

SBITA L iabilitie s (3) - - 599,423 (172,142) 427,281 173,575 Compensated Absences - 10,812,237 521,558 - 11,333,795 1,129,292 Total Gove rnm e ntal A ctivitie s 14,302,030$ 20,359,651$ 1,529,837$ (2,150,641)$ 19,738,847$ 3,311,184$ Business-Type Activity Debt
Ce rtificate s of Participation:
2015 COP 4,788,770$ 2,291,444$ $ - (346,257)$ $ 1,945,187 $ 363,636 2014 VPFA - Refunding (1) 6,199,200 1,268,400 - (617,400) 651,000 651,000 Bond Premium 971,504 12,208 - (12,208) - - 11,959,474 3,572,052 - (975,865) 2,596,187 1,014,636 Notes - Direct Borrowings:
2014 Cl ean Water State Revol vi ng Fund Loan 96,434,597 81,635,890 - (2,650,874) 78,985,016 2,706,542 Lease - Di rect Borrowi ngs:
2012 Animal Control 6,600,000 2,102,823 - (499,048) 1,603,775 516,413 SBITA L iabilitie s (3) - 43,440 2,130,279 (124,385) 2,049,334 273,181 Compensated Absences - 2,183,548 37,689 - 2,221,237 232,601 Total Busine ss-Type A ctivitie s 114,994,071$ 89,537,753$ 2,167,968$ (4,250,172)$ 87,455,549$ 4,743,373$ Fiduciary Funds
Redevelopment Agency Tax Allocation Bonds:
2003 East Visalia District 5,185,000$ 680,000$ $ - (220,000)$ 460,000$ 2 25,000$ Notes - Direct Borrowings:
2004 RDA - Mooney District 2,707,250 733,687 - (150,720) 582,967 157,451 Advances:

General Fund - 11,467,268 216,961 (1,015,781) 10,668,448 - - 11,467,268 216,961 (1,015,781) 10,668,448 - Total Private Purpose Trust Funds 7,892,250$ 12,880,955$ 216,961$ (1,386,501)$ 11,711,415$ 382,451$ (1) The 2014 VPFA issues were for refunding of the 2005 VPFA Issues, and corresponding debt's proportionate allocation remains at 84% to Business-Type Activities (Convention Center - Enterprise Fund) and 16% to Governmental Activities. (2) The City has entered into a lease for land with land improvements. The term remaining on the agreement is 21 years.

The cal cul ated i nterest rates i s 1.50%.
(3) The City has entered into agreements for subscription-based information technology. The terms of the agreements range from 1 to 7 years.

The calculated interest rate is 2.92% and 3.16% for FY2024-25, 2.63% for FY2023-24, and 2.40% for FY2022-23.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

84 Notes to the Financial Statements
NOTE 7 – LONG-TERM LIABILITIES (Continued)

B. Certificates of Participation

On July 2, 2014, the City issued $7,380,000 of 2014 Refunding Certificates of Participation (the Certificates VPFA) to (a) refund all of the City’s outstanding 2005 Refunding Certificates of Participation (the “Prior Certificates”), (b) to purchase a municipal bond debt service reserve insurance policy for deposit into a debt service reserve fund established for the Certificates, and (c) to pay the costs related to the execution and delivery of the Certificates, including, but not limited to, the cost of municipal bond insurance. Of this issue, 84% is allocable to the Convention Center and 16% is considered general long -term debt. The term of the refunding is 11 years with an all in total interest cost of 3.02%. Principal payments are due annually on June 1 and interest is due semiannually on June 1 and December 1, commencing December 1, 2014, with the final payment due in the year 2025. The refunding was structured to lower the annual certificate payments and was achieved by taking advantage of historically low interest rates and extend out the final maturity date by 4 years. The refunding resulted in a bond premium of $971,504 for the business -type activities, of which none remains to be amortized.

The City also chose to unencumber the Convention Center, which was the lease asset for the Prior Certificates, and encumber a new asset, which is the City’s Riverway Sports Park, with the 2014 Certificates. The lowering of the annual payments and unencumbering of the Convention Center were done to help with a larger future financing issued by the City in September of 2015.

The bonds are limited obligations of the Visalia Public Finance Authority and are payable by the City solely from Lease Payments to be made by the City under the Lease and certain other moneys held under the Trust Agreement. The C ity has covenanted to budget and appropriate Lease Payments in each fiscal year in consideration of the use and occupancy of the Property from any source of legally available funds, and to take such action as may be necessary to include all Lease Payments in its annual budgets and to make the necessary annual appropriations thereof. Should the City default under the facilities sublease, the trustee, as the assignee of the Authority, may elect either to terminate the Lease and seek to collect damages from the City or to maintain the Lease in effect and seek to collect the Lease Payments as they become due. Base Rental payments may not be accelerated upon a default under the facilities sublease. A default refers to any one or more of the following events: payment default (lease payment or reserve replenishment); covenant default; and bankruptcy or insolvency. No such events of default occurred during the fiscal year ending June 30, 20 25.

On September 10, 2015 the City issued $17,910,000 of 2015 Certificates of Participation to (a) construct and equip the Visalia Emergency Communications Center (the VECC), (b) to replace the City’s Computer Aided Dispatch and Records Management System (the CAD/RMS), (c) to make certain improvements to the Visalia Convention Center, (d) to purchase a municipal bond debt service reserve insurance policy for deposit into a debt service reserve fund established for the Certificates, and (e) to pay the costs related to the execution and delivery of the Certificates. Of this issue, 27% is allocable to the Convention Center, 10% is allocable to the Measure T Fund, 26% is allocable to Police Impact Fees, and 37% is considered general long- term debt. The term of the certificates is 14 years with an all in total interest cost of 3.14%. Principal and i nterest payments are payable semiannually on June 1 and December 1 of each year, commencing on December 1, 2015, with the final payment due in the year 2029.

The bonds are limited obligations of the Public Property Financing Corporation of California and are payable by the City solely from Lease Payments to be made by the City under the Lease and certain other moneys held under the Trust Agreement. The City has covenanted to budget and appropriate Lease Payments in each fiscal year in consideration of the use and occupancy of the Property from any source of legally available funds, and to take such action as may be necessary to include all Lease Payments in its annual budgets and to make the necessary annual appropriations thereof. Should the City default under the facilities sublease, the Trustee, as the assignee of the Corporation, may elect either to terminate the Lease and seek to collect personal damages from the City or to maintain the Lease in effect to seek to collect the Lease Payments as they become due. Base Rental payments may not be accelerated upon a default under the facilities sublease. A default refers to any one or

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

85 Notes to the Financial Statements
NOTE 7 – LONG-TERM LIABILITIES (Continued)

B. Certificates of Participation (Continued)

more of the following events: payment default (lease payment or reserve replenishment); covenant default; and bankruptcy or insolvency. No such events of default occurred during the fiscal year ending June 30, 20 25.

C. Lease – Animal Control

On December 1, 2012, the City entered into a lease agreement with Municipal Finance Corporation for $6,600,000 for the acquisition and construction of an animal control facility and shelter. The lease agreement pledges two police substations and the animal control center site for the construction of the animal shelter.

The fifteen year lease financing arrangement beg an March 2013 at an interest rate of 3.45%. Principal and interest payments are due each September and March with the first payment beginning September 2013 and the final payment due in March 2028.

D. Compensated Absences

The City accounts for compensated absences (unpaid, vacation, sick leave and compensatory time) in accordance with GASB standards (see Note 1H) . In governmental funds, compensated absences are recorded as expenditures in the year paid, as it is the City’s intention to liquidate any unpaid compensated absences at June 30 from future resources, rather than current available financial resources. Accordingly, the unpaid liability for governmental funds is recorded in the Statement of Net Position. In business -type activities and enterprise funds, the unpaid liability is accrued when the liability occurs. With the implementation of GASB 101, balances as of June 30, 2024 have been restated.

E. Redevelopment Agency Tax Allocation Bonds

On June 18, 2003, the Community Redevelopment Agency (RDA) issued $5,185,000 of 2003 Tax Allocation Refunding Bonds (2003 Bonds) to retire outstanding variable rate 1990 Tax Allocation Bonds and to pay for issuance costs.

Tax increment revenue is pledged for the repayment of the 2003 Bonds. Interest ranges from 2.0% to 4.1% and is due semiannually each July 1 and January 1. Commencing 2004, principal is payable each July 1 through 2026.

The bonds are special obligations of the Agency payable solely from the t ax revenues. The Successor Agency has covenanted in the indenture to manage its fiscal affairs in a manner which ensures that it will have sufficient tax revenues available under the plan limitations in the amounts and at the times required to enable the Agency to pay the principal , interest, and premium (if any) on the b ond when due. Should the Successor Agency default, any Holder or Beneficial Owner of the b onds may take such actions as may be necessary and appropriate including seeking mandate or specific performance by court order, to cause the Issuer to comply with its obligations under this d isclosure certificate. If termination occurs prior to the final maturity of the bonds; the issuer shall give notice of such termination in the same manner as for a listed event. No such events of default occurred during the fiscal year ending June 30, 2025.

This debt was transferred to the Redevelopment Successor Agency (Private Purpose Trust Fund) on February 1, 2012, as a result of the dissolution of the Visalia Community Redevelopment Agency.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

86 Notes to the Financial Statements
NOTE 7 – LONG-TERM LIABILITIES (Continued)

F. Note – WestAmerica Bank Loan – RDA Mooney District

On September 7, 2004, the City approved the refinancing of the remaining balance of the 1993 Mooney Tax Allocation Revenue Bond with a Stockmen’s bank loan in the amount of $ 2,707,250. The bank loan is a variable rate loan, fixed every five years with a floor of 4.30% and a ceiling of 6.00%. As of June 30, 2025, the interest rate on the loan was 4.30%. The term of the loan is set at 24 years to match the sunset of the Mooney Redevelopment Area in 2028.

This loan is secured by the tax revenues received by the RDA for the project area.

Although the note originated with Stockmen’s Bank in 2004, as of June 30, 2012, the note is held by WestAmerica Bank. WestAmerica Bank may determine the loan to be breached and the City to be in default if the City (1) fails to pay the money payment when due, (2) discontinues, or (3) otherwise breaches this agreement, and the breach is not cured as specified therein. Following a breach, WestAmerica Bank shall have the right to declare the entire unpaid balance of the loan obligation due and payable.

This debt was transferred to the Redevelopment Successor Agency (Private Purpose Trust Fund) on February 1, 2012, as a result of the dissolution of the Visalia Community Redevelopment Agency.

G. Note – Clean Water State Revolving Fund – Wastewater Conservation Plant Upgrade Project

On March 27, 2014, the City entered into an installment sale agreement with the California State Water Resources Control Board (CSWRCB) for up to $132,490,000 for a major upgrade to the City’s Water Conservation Plant to provide tertiary level treatment to the water being processed. The project is complete and the City’s loan balance is set at $96,434,597, which includes $3,854,165 of capitalized interest. The term of the loan is 30 years at an interest rate of 2.1%. Principal and interest payments will be repaid in annual installments commencing on September 13, 2018 and shall be fully amortized by September 13, 2047.

The CSWRCB may determine the loan to be breached and the City to be in default if the City (1) fails to pay the money payment when due, (2) discontinues, or (3) otherwise breaches this agreement, and the breach is not cured as specified therein. Following a breach, CSWRCB shall have the right to declare the entire unpaid balance of the loan obligation due and payable.

H. Subscription Based Information Technology Arrangements

The City has entered subscription-based information technology arrangements (SBITA) for various administrative and operational purposes. These subscriptions include services related to cloud-based software applications, data storage, and management services. The remaining subscription periods vary with terms ranging from 1 to 7 years. The discount rate s that have been used are 2.92% and 3.16% for SBITA contracted in fiscal year 2024- 25, 2.63% for SBITA contracted in fiscal year 2023- 24 and 2.40% for SBITA contracted in prior fiscal years.

As of June 30, 2025 , the capitalize d right to use assets related to SBITA for governmental activities was $5,349,666 and $2,209,420 for business-type activities. As of June 30, 2025, the total subscription liability was $2,343,448 for governmental activities and $2,049,334 for business-type activities.

For the year ended June 30, 202 5, the City recognized $ 68,062 of interest expense related to these arrangements for governmental activities and $15,900 of interest expense for business-type activities.

Principal and interest payments to maturity are detailed in Note 7j, Debt Service Requirements.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

87 Notes to the Financial Statements
NOTE 7 – LONG-TERM LIABILITIES (Continued)

I. Lessee Leases
The City entered into a lease for land, including land improvements, with an inception date of November 2020.

The lease has a term of 25 years and an interest rate of 1.50%.

As of June 30, 2025 , the City reported total lease assets for governmental activities amounting to $ 700,502.

The accumulated amortization of these assets totaled $108,261, resulting in net lease assets of $592,241.

For the year ended June 30, 202 5, the City recognized a reduction in the lease liability amounting to $24,421 and interest expense of $9,651.

Principal and interest payments to maturity are detailed in Note 7J, Debt Service Requirements.

J. Debt Service Requirements

Annual debt service requirements to maturity are shown below for all long -term debt:

For the Year
Ending June 30, P rincipal Interest Principal Interest Principal Interest 2026 1,120,364$ 162,216$ 24,790$ 9,282$ 1,036,738$ 48,293$ 2027 1,036,658 118,657 25,164 8,908 772,155 22,202 2028 1,065,963 87,118 25,545 8,528 495,334 4,046 2029 1,098,930 53,957 25,930 8,142 39,221 472 2030 1,131,898 18,393 26,322 7,750 - - 2031-2035 - - 137,693 32,667 - - 2036-2040 - - 148,411 21,949 - - 2041-2045 - - 160,269 10,091 - - 2046-2050 - - 33,667 405 - - 5,453,813$ 440,341$ 607,791$ 107,722$ 2,343,448$ 75,013$ SBITA L iabilitie s
Gove rnm e ntal A ctivitie s
Public Offering Lease Li abi l i ti es
For the Year
Ending June 30, Principal Interest Principal Interest Principal Interest 2026 3,222,955$ 1,709,600$ 1,014,636$ 74,346$ 273,181$ 54,584$ 2027 3,297,764 1,634,792 378,342 43,306 269,664 46,810 2028 3,374,389 1,558,166 389,038 31,795 264,963 38,920 2029 2,880,660 1,484,567 401,069 19,693 291,326 30,791 2030 2,941,154 1,424,073 413,102 6,713 319,579 21,864 2031-2035 15,658,588 6,167,551 - - 630,621 14,790 2036-2040 17,373,260 4,452,879 - - - - 2041-2045 19,275,694 2,550,445 - - - - 2046-2050 12,564,327 531,357 - - - - 80,588,791$ 21,513,430$ 2,596,187$ 175,853$ 2,049,334$ 207,759$ Direct Borrowings SBITA L iabilitie sPublic Offering
Busine ss-Type A ctivitie s

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

88 Notes to the Financial Statements
NOTE 7 – LONG-TERM LIABILITIES (Continued)

J. Debt Service Requirements (Continued)

NOTE 8 − DEBT WITHOUT CITY COMMITMENT

The City issued a $675,000 bond designated as the “City of Visalia Orchard Walk East and West Undergrounding Utilities Assessment District, Series 2011”. The City then purchased the bonds for the City’s cash portfolio. The bonds yield 6.75% and mature on September 2, 2026 and were for the construction of underground electrical utilities at the Orchard Walk East and West commercial shopping center. As of June 30, 2025 , $45,000 of principal balance, which is repayable out of assessments on property in the Assessment District, remained outstanding.

The City issued a $148,367 bond designated as the “City of Visalia Atwood Street Water Assessment District No. 2014-01, Series 201 5-2”. The City then purchased the bonds for the City’s cash portfolio. The bonds yield 4.00% and mature on September 2, 2030 and were for the construction of improvements for the extension of a California Water main into Atwood Street to provide services to each property as the properties had wells that were beginning to fail. As of June 30, 2025 , $ 54,006 of principal balance, which is repayable out of assessments on property in the Assessment District, remained outstanding.

The City issued a $ 106,530 bond designated as the “City of Visalia Laura Street Water Assessment District No. 2014-01, Series 2015- 2”. The City then purchased the bonds for the City’s cash portfolio. The bonds yield 4.00% and mature on September 2, 2030 and were for the construction of improvements for the extension of a C alifornia Water main into Laura Street to provide services to each property as the properties had wells that were beginning to fail. As of June 30, 2025 , $34,242 of principal balance, which is repayable out of assessments on property in the Assessment District, remained outstanding.

Although the City assisted in the issuance of the above debts, it is not obligated in any way to repay this debt and has not reflected the debt in its financial statements.

For the Year
Ending June 30, P rincipal Interest Principal Interest
2026 157,451$ 23,665$ 225,000$ 20,125$ 2027 164,391 16,726 235,000 10,281 2028 171,636 9,480 - - 2029 89,489 1,927 - - 2030 - - - - 582,967$ 51,798$ 460,000$ 30,406$
Private Purpose Trust Fund
Direct Borrowings Public Offering

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

89 Notes to the Financial Statements
NOTE 9 − FUND BALANCE AND NET POSITION CLASSIFICATIONS

GASB Statement No. 34 incorporates the concept of Net Position, which is measured on the full accrual basis of accounting, to the concept of Fund Balance, as amended by GASB Statement No. 54, which is measured on the modified accrual basis of accounting.

A. Fund Balances

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

City of Visalia
Governmental Fund Balances
June 30, 2025
(In Thousands)

General
Fund Measure N

American
Rescue
Plan Transportation
Civic
Center
All Other
Governmental
Funds
Total
Governmental
Funds
Nonspendable
Prepaids/Deposits 14$ - $ - $ -$ - $ -$ 14$ Supplies 12 - - - - - 12 Advance - Measure R - Regional 423 - - - - - 423 Advance - Measure R - Trailways 299 - - - - - 299 Advance - Special Service Districts 1,226 - - - - - 1,226 Total Nonspendable Fund Balance 1,974 - - - - - 1,974 Restricted
Purpose of Fund 18,334 42,201 - 36,037 - 162,441 259,013 Total Restricted Fund Balance 18,334 42,201 - 36,037 - 162,441 259,013 Committed
Golf Course - - - - - 1,041 1,041 Conservation - - - - - 270 270 Police Unclaimed Funds - - - - - 122 122 Softball - - - - - 8 8 Baseball - - - - - 6,954 6,954 Civic Center - - - - 73,563 - 73,563 Emergency Reserve 24,015 - - - - - 24,015 Miscellaneous Capital Projects 1,388 - - - - - 1,388 Total Committed Fund Balance 25,403 - - - 73,563 8,395 107,361 Assigned
Facility Improvements - - - - - 853 853 Regional Parks - - - - - 628 628 Vehicle Miles Traveled - - - - - 40 40 Animal Control Reserve - - - - - 274 274 Advance - Atwood District (Custodial Fund) 68 - - - - - 68 Advance - Laura District (Custodial Fund) 38 - - - - - 38 Due From - Community Development 1,799 - - - - - 1,799 Due From - Waterways 35 - - - - - 35 Due From - Grant & Loan Funds 26 - - - - - 26 CIP Budgeted Not Started 11,148 - - - - - 11,148 Cal PERS Unfunded Liability FY 25/26 14,455 - - - - - 14,455 Successor Agency Loans 10,669 - - - - - 10,669 Total Assigned Fund Balance 38,238 - - - - 1,795 40,033 Unassigned
Total Unassigned Fund Balance (Deficit) 2,655 - - - - (85) 2,570 Total Fund Balances 86,604$ 42,201$ -$ 36,037$ 73,563$ 172,546$ 410,951$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

90 Notes to the Financial Statements
NOTE 9 – FUND BALANCE AND NET POSITION CLASSIFICATIONS (Continued)

B. Fund Balances

FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25
Nonspendable Fund Balance:

Inventory -$ - $ - $ 136$ -$ Prepaid Expenditures 22 27 18 15 14 Supplies 19 14 13 19 12 Long-Term Recei vabl e 527 134 58 - - Advance - Public Facility Impact Fee (Library) 60 26 - - - Advance - Measure R - Regi onal - - - 572 423 Advance - Measure R - Trailways 522 392 2,367 287 299 A dvance - Spe cial Se rvice Districts 963 971 1,042 1,109 1,226 Advance - Airport 1,367 - - - - Nonspendable Fund Balance Total 3,480 1,564 3,498 2,138 1,974 Restricted Fund Balance - - - - 18,334 Committed Fund Balance:

Emergency Reserve 16,407 17,402 19,023 22,705 24,015 Misce llane ous Capital Proje cts 202 156 1,782 905 1,388 Committed Fund Balance Total 16,609 17,558 20,805 23,610 25,403 Assigned Fund Balance:

Custodial Fund Advance - Atwood District 76 75 76 70 68 Custodial Fund Advance - Laura District 36 38 38 38 38 Due from - Community Development 5 - 211 - 1,799 Due from - Public Facility Im pact Fe e (L ibrary) - - 2 - - Due from - Waterways - - - - 35 Due from - Grant & Loan Funds - - - - 26 CIP Budgeted not started 3,961 3,522 4,731 10,087 11,148 Cal PERS Unfunded Liability Payment 11,120 12,227 11,000 11,500 14,455 Successor Agency 12,431 12,077 11,910 11,467 10,669 Assigned Fund Balance Total 27,629 27,939 27,968 33,162 38,238 Unassigned Fund Balance:

Unassigned 5,428 6,731 3,142 186 2,655 Unassigned Fund Balance Total 5,428 6,731 3,142 186 2,655 Total Fund Balance 53,146 $ 53,792 $ 55,413 $ 59,096 $ 86,604 $

CITY OF VISALIA

SCHEDULE OF FUND BALANCE - GENERAL FUND
(In Thousands)

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

91 Notes to the Financial Statements
NOTE 9 − FUND BALANCE AND NET POSITION CLASSIFICATIONS (Continued)

C. Fund Balance and Net Position Deficits

The following funds had deficit fund balances or net position at June 30, 20 25. Future revenues, future charges or interfund transfers are expected to offset these deficits:

D. Net Investment in Capital Assets

The following is the calculation of net investment in capital assets at June 30, 2025:

Special Revenue Funds:

Grant & Loan Funds 2 6,135$
Measure R Regi onal 58,025$
Debt Service Funds:

VPFA 2014 Re funding Ce rtificate s of Participation 509$ Fiduciary Funds:

Successor Agency 7,956,854$
Internal Servi ces:

Fl eet Servi ces 512,765$
Governmental
A ctivitie s
Business-Type
A ctivitie s Total
Capital Assets, net of
a
ccumulated depreciation and amortization 432,337,145$ 364,754,965$ 797,092,110$ Less: outstanding principal on capital related debt (5,453,813) ( 83,184,978) (88,638,791) L e ss: outstanding le ase s liability (607,791) - (607,791) L e ss: outstanding SBITA le ase liability (2,343,448) ( 2,049,334) (4,392,782) Less: capital accounts payable (1,341,228) (32,658) (1,373,886) Net Investment in Capital Assets 422,590,865$ 279,487,995$ 702,078,860$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

92 Notes to the Financial Statements
NOTE 10 − EMPLOYEE BENEFITS

A. General Information about the Pension Plans

Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the City of Visalia 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 City of Visalia 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 or more years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non -duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

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

Miscellaneous
Hire date
Prior to
May 9, 2008
May 10, 2008
through
May 20, 2011
May 21, 2011
through December
31, 2012
January 1, 2013
through current
Benefit formula 3% @ 60 2.5% @ 55 2.0% @ 60 2 % @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Monthly for life Retirement age 50 50 50 52
Monthly benefits, as a % of eligible compensation 2.0% to 3.0% 2.0% to 2.5% 1.09% to 2.42% 1.0% to 2.5% Required employee contribution rates 8% 8% 7% 8.25%
Required employer contribution rates 11.400% 11.400% 11.400% 11.400% Unfunded Liability Contribution
% of Payroll (illustrative only) 24.470% 24.470% 24.470% 24.470% Hire date
Prior to
February 26, 2011
February 27, 2011
through December
31, 2012
January 1, 2013
through current
Benefit formula 3% @ 50 3.0% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 5 0 50 50
Monthly benefits, as a % of eligible compensation 3.0% 2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 9% 9% 14.50%
Required employer contribution rates 21.530% 21.530% 21.530% Unfunded Liability Contribution
% of Payroll (illustrative only) 26.730% 26.730% 26.730% Safety

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

93 Notes to the Financial Statements
NOTE 10 − EMPLOYEE BENEFITS (Continued)

A. General Information about the Pension Plans (Continued)

Employees Covered – For valuation date, as of June 30, 2023 , the following employees were covered by the benefit terms for each Plan:

Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

B. 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, 20 24, using an annual actuarial valuation as of June 30, 20 23 rolled forward to June 30, 20 24 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 in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 508 267 Inactive employees entitled to but not yet receiving benefits 394 136 Active employees 397 221
Total 1,299 624

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

94 Notes to the Financial Statements
NOTE 10 − EMPLOYEE BENEFITS (Continued)

B. Net Pension Liability (Continued)

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 20 23 valuation were based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Further details of the Experience Study can be found on the CalPERS website.

Long-term Expected Rate of Return – The long -term expected rate of return on pension plan investments was determined using a building -block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

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

Change of Assumptions – There were no assumption changes with the June 30, 2023 valuation date (2024 measurement date) . T he accounting discount rate re mained at 6.90%. In determining the expected long -term rate of return, CalPERS took into account long -term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

Miscellaneous Safety
Valuation Date June 30, 2023 June 30, 2023
Measurement Date June 30, 2024 J une 30, 2024
Actuarial Cost Method Entry-Age Actuarial Cost Method Entry-Age Actuarial Cost Method Actuarial Assumptions:

Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Payroll Growth 2.800% 2.800%
Projected Salary Increase .40% - 8.5% (1) .97% - 17.0% (1) Investment Rate of Return 6.80% (2) 6.80% (2)
Post Retirement Benefit Increase
Mortality (3)
(1) Depending on age, service and type of employment
(2) Net of pension plan investment and administrative expenses, including inflation The lessor of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter Derived using CalPERS Membership Data for all Funds
(3) The mortality table used was developed based on CalPERS-specific data. 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. For more details on this table, please refer to the 2021 experience study and report from November 2021 that can be found on the CalPERS website.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

95 Notes to the Financial Statements
NOTE 10 − EMPLOYEE BENEFITS (Continued)

B. Net Pension Liability (Continued)

Discount Rate – The discount rate used to measure the total pension liability was 6. 90% for each Plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long -term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Asset Class 1
Assumed Asset
Allocation Real Return 1,2
Global Equity - Cap-Weighted 30.0% 4.54%
Global Equity - Non-Cap-Weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage Backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Management study.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

96 Notes to the Financial Statements
NOTE 10 − EMPLOYEE BENEFITS (Continued)

C. Changes in the Net Pension Liability

The changes in the Net Pension Liability for each Plan are as follows:

Miscellaneous Plan:

Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2023 $288,867,800 $ 202,799,265 $86,068,535 Changes in the year:

Service cost 5,625,448 - 5,625,448
Interest on the total pension liability 19,930,729 - 19,930,729 Differences between actual and expected experience 4,376,782 - 4,376,782 Contribution - employer - 9,239,433 (9,239,433) Contribution - employee - 2,474,111 (2,474,111) Net investment income - 19,272,982 (19,272,982) Administrative expenses - (165,018) 165,018 Benefit payments, including refunds of employee
contributions (14,412,320) (14,412,320) -
Net changes 15,520,639 1 6,409,188 (888,549)
Balance at June 30, 2024 $304,388,439 $ 219,208,453 $85,179,986 Safety Plan:

Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2023 $315,363,893 $ 237,189,206 $78,174,687 Changes in the year:

Service cost 7,965,287 - 7,965,287
Interest on the total pension liability 21,904,771 - 21,904,771 Differences between actual and expected experience 5,194,048 - 5,194,048 Contribution - employer - 11,207,408 (11,207,408) Contribution - employee - 2,963,630 (2,963,630) Net investment income - 22,726,236 (22,726,236) Administrative expenses - (193,002) 193,002 Benefit payments, including refunds of employee
contributions (14,160,274) (14,160,274) -
Net changes 20,903,832 2 2,543,998 (1,640,166)
Balance at June 30, 2024 $336,267,725 $ 259,733,204 $76,534,521

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

97 Notes to the Financial Statements
NOTE 10 − EMPLOYEE BENEFITS (Continued)

C. Changes in the Net Pension Liability (Continued)

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 of Visalia’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.

D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions

For the year ended June 30, 20 25, the City of Visalia recogniz ed pension expense of $ 28,295,502 ($13,454,241 related to the Miscellaneous Plan and $14, 841,261 related to the Safety Plan) . At June 30, 2025, the City of Visalia reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous Safety Total
1% Decrease 5.90% 5.90% 5.90%
Net Pension Liability $125,945,246 $126,800,711 $252,745,957 Current Discount Rate 6.90% 6.90% 6.90%
Net Pension Liability $85,179,986 $76,534,521 $161,714,507 1% Increase 7.90% 7.90% 7.90%
Net Pension Liability $51,567,202 $35,850,820 $87,418,022 Miscellaneous Plan:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $10,620,001 -$ Differences between expected and actual experience 4,803,543 (616,451) Changes in assumptions 1,189,913 -
Net differences between projected and actual earnings
on plan investments 3,242,748 -
Total $19,856,205 ($616,451)

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

98 Notes to the Financial Statements
NOTE 10 − EMPLOYEE BENEFITS (Continued)

D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)

$23,196,669 ($10,620,001 related to the Miscellaneous Plan and $ 12,576,668 related to the Safety Plan) 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 ending 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:

Expected Average Remaining Service Lifetime (EARSL) – Miscellaneous Plan – The EARSL for the plan for the measurement period ending June 30, 202 4 is 3.5 years, which was obtained by dividing the total service years of 4,493 (the sum of remaining service lifetimes of the active employees ) by 1,299 (the total number of participants:
active, inactive, and retired). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

Expected Average Remaining Service Lifetime (EARSL) – Safety Plan – The EARSL for the plan for the measurement period ending June 30, 202 4 is 4.9 years, which was obtained by dividing the total service years of 3,052 (the sum of remaining service lifetimes of the active employees) by 6 24 (the total number of participants:
active, inactive, and retired). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

Safety Plan:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $12,576,668 -$ Differences between expected and actual experience 5,801,183 (1,066,915) Changes in assumptions 4,803,430 -
Net differences between projected and actual earnings
on plan investments 3,635,079 -
Total $26,816,360 ($1,066,915)
Grand Total $46,672,565 ($1,683,366)
Measurement Measurement
P
eriods Ending Annual Periods Ending Annual
June 30 Amortization June 30 Amortization
2025 $2,861,791 2025 $3,530,860
2026 7,036,261 2026 9,385,838
2027 (201,739) 2027 577,765
2028 (1,076,560) 2028 (321,686)
Total $8,619,753 Total $13,172,777
Safety Plan:Miscellaneous Plan:

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

99 Notes to the Financial Statements
NOTE 10 − EMPLOYEE BENEFITS (Continued)

E. Liquidating Net Pension Liability

The net pension liability, and related components for the m iscellaneous plan are allocated to the governmental activities and business -type activities based on the distribution of current year contributions to the plan. At June 30, 2025, it is distributed 5 6% to governmental activities and 44 % to business -type activities. The net pension liability, and related components for the safety plan are distributed 100% to the governmental activities. Historically, the General Fund has been used to liquidate the net pension liability for the City.

F. Payable to the Pension Plan

At June 30, 2025 , the City did not report a payable for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2025 as there were none outstanding.

G. Deferred Compensation Plan

City employees may defer a portion of their compensation under a City sponsored Deferred Compensation Plan created in accordance with Internal Revenue Code Section 457. P articipants in the Deferred Compensation Plan can make contributions on a pre -tax or post -tax (Roth) basis. Pre -tax contributions are not taxed on the deferred portion of their compensation until it is distributed to them. Roth contributions are made to the plan after payroll taxes are removed from the employee’s paycheck and are not taxed at the time of distribution. Distributions may be made only at termination, retirement, death, or in an emergency as defined by the plan.

The laws governing deferred compensation plan assets require plan assets to be held by a Trust for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under these plans are not the City’s property and are not subject to City control, they have been excluded from these financial statements.

The City has a contract with Mission Square , Empower, and CalPERS to manage and invest the assets of the plan; all pool the assets of the plan with those of other participants and do not make separate investments for employees .

H. Accrued Personnel Costs

Accrued personnel costs are costs that are related to payroll withholdings such as PERS contributions, supplemental life insurance, medical and dependent care flexible spending accounts, and union dues just to name a few.

I. Postemployment Health Care Benefits

City Policy permits retirees access to the City’s health plan but at a cost determined each year by the City. The specific language of Policy 301 is “Retirees and their dependents are eligible for medical and vision benefits at a cost determined each year by the City. “

As of June 30, 2025, 38 retirees are participating in the City’s health plan at full cost. Of these retirees 16 have dependent coverage. The full cost of the EPO and PPO plans is up to $953 per month for retiree only coverage, $1,888 for retiree and one dependent , and $2,608 for the retiree and two or more dependents . The retiree fully funds these premiums.

As an alternative, the City also offers retirees access to the City’s high deductible health plan at a premium cost up to $783 per month for retiree only coverage, $1 ,548 for retiree and one dependent , and $2,137 for retiree and two or more dependents.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

100

Notes to the Financial Statements
NOTE 10 − EMPLOYEE BENEFITS (Continued)

J. Defined Contribution for Retiree Health Care

In 2011, the City adopted Resolution 2011- 17 establishing the phase out of City subsidy to retiree health care cost by 2019. The guidelines included an additional 10 years to phase out the City’s subsidy for qualifying retirees so that all retirees pay full cost by 2029. A qualified retiree is defined as having a household income less than the Federal Social Security Earnings Limit and either a CalPERS Disability Retirement or 15 years of service with Visalia and eligible for Medicare.

Three retirees qualified for the 202 5 reduced rate; both are enrolled as retirees only. The retiree cost is up to $ 795 per month with the City subsidizing up to $ 348 per month. Qualified retirees must re- certify every year to qualify for the subsidy. A portion of the City’s subsidy will transition to the retiree each year until the qualified retirees pay full cost in 2029 or no longer qualify for this provision.

For fiscal year 2024-2025, the City’s Retiree Health Care Contribution was approximately $ 75,000.

NOTE 11 – RISK MANAGEMENT

A. Coverage

The City self-insures workers’ compensation claims. The City retains or s elf-insures the first $1,000,000 of claims and purchases insurance above the $1,000,000 self -retention to $25,000,000. The program is administered by a third party.

The City has public employee dishonesty insurance with a $100,000 deductible and coverage up to $5,000,000 per loss. The City’s property and machinery insurance has various deductibles and various coverages based on the kind of machinery. During the past four years there have been no significant reductions in any of the City’s insurance coverage and no settlement amounts under these policies have exceeded insurance coverage.

The City currently provides three medical plan options for employees and retirees: a Preferred Provider Plan (PPO), an Exclusive Provider (EPO) and a High Deductible Plan (HD). The City provides medical benefits through an insurance pool, PRISMHealth which in turn participates in a larger pool, Self -Insured Schools of California (SISC). The insurance pool is responsible for maintaining a reserve for incurred but not reported claims. The City retains an equity share in the assets and liabilities of both pools.

The City provides dental and vision coverage to employees through programs which are administered by a third -party service agent. The City is self -insured for dental and vision coverage. The City’s dental and vision liability is calculated based upon the historical lag between when a claim is incurred and the time it takes to be paid. Historically, 2 months of claims remain in the system at any given time. T he City calculated the estimated incurred but not reported (IBNR) claims by averaging the yearly claims and multiplying by 2.

The City is a member of the Authority for California Cities Excess Liability (ACCEL), a joint powers authority, which provides general liability coverage up to $65,000,000 ultimate net loss per occurrence. The City retains the risk for the first $1,000,000 in losses for each occurrence under this policy.

ACCEL was established for the purpose of creating a risk management pool for California municipalities. ACCEL is governed by a Board of Directors consisting of representatives of its member cities. The board controls the operations of ACCEL, including selection of management and approval of the annual budget.

The City’s deposits with ACCEL are calculated based on the ratio of the City’s payroll to the total payrolls of all entities, the losses of all members and the City’s experience rate. Actual surpluses or losses are shared according to a formula

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

101

Notes to the Financial Statements
NOTE 11 – RISK MANAGEMENT (Continued)

A. Coverage (Continued)

developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating.

During the fiscal year ended June 30, 2025 , the City contributed $ 2,618,468 to ACCEL for current year coverage.

ACCEL audited financial statements are available from Alliant Insurance Services at 560 Mission Street, Sixth Floor, San Francisco, California 94105.

B. Liability for Uninsured Claims

The City provides for the uninsured portion of claims and judgments in the Risk Management Internal Service Fund.

Claims and judgments, including a provision for claims incurred but not reported, are recorded when a loss is deemed probable of assertion and the amount of the loss is reasonably determinable. As discussed above, the City has coverage for such claims, but it has retained the risk for the deductible or uninsured portion of these claims.

The City’s liability for uninsured claims is limited to general liability claims, as discussed above, and was estimated by management based on the fact that claims must be filed with the City within 6 months of the claim’s occurrence.

Incurred but not reported (IBNR) claims are estimated by taking the previous 5 year’s average claim experience for a year and multiplying by 0.5 (6 month/12 months).

Changes in the balances of claim liabilities during the past three years are as follows :

NOTE 12 − CONTINGENT LIABILITIES AND COMMITMENTS

The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney, there is no pending litigation which is likely to have a material adverse effect on the financial position of the City.

At June 30, 2025 , the City had made commitments of approximately $ 126.6 million for outstanding construction projects and open purchase orders.

The City participates in Federal and State grant programs. These programs are subject to audit by the City’s independent accountants in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Award (Uniform Guidance) and applicable State requirements. No material cost disallowances were proposed as a result of these audits; however, these programs are still subject to further examination by the grantors, and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

Beginning Current Year E nd
of Year Claims & Changes Claim of Year Due Within
L iability in Estimates Payments L iability One Year
2022-23 8,022,206$ 1,445,135$ (1,174,409)$ 8,292,932$ 2,107,818$ 2023-24 8,292,932 1,334,045 (724,400) 8,902,577 447,175 2024-25 8,902,577 7,260,781 (4,041,279) 12,122,079 938,697

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

102

Notes to the Financial Statements
NOTE 13 – TRANSACTIONS WITH RELATED PARTIES

The related party transactions of the City are summarized as follows:

NOTE 14 – LEASES RECEIVABLE

Some governmental and proprietary funds of the City lease property to others.

In the case of the governmental funds, such property includes buildings and land. The remaining terms of these arrangements range from 1 to 27 years with the calculated interest rates used ranging from . 90% to 3. 16% depending on the length of the lease. For the year ended June 30, 202 5, the City’s governmental funds recognized $328,321 in lease revenue and $55,854 in lease interest revenue.

For proprietary funds, leased property includes buildings, office space, and land. The remaining terms of these arrangements range from 1 to 33 years with the calculated interest rates used ranging from . 90% to 2. 63% depending on the length of the lease. For the year ended June 30, 202 5, the City’s proprietary funds recognized $474,973 in lease revenue and $97,196 in lease interest revenue.

A. Current Year Transactions and Balances

A summary of the changes in lease receivables for the fiscal year ended June 30, 2025 is as follows:

Other Related Party Transactions Related Parties P urpose Amount for
the Year Ended
J
une 30, 2025
Downtown Visalians City Council Member B usiness tax surcharge (passthrough) 182,969$ Downtown Visalians City Council Member Security, cleaning services and misc. 53,368 Total 236,337
Downtown Visalia Property
Owners A ssociation City Council Member Property Based Improvement District (passthrough) 665,000 Downtown Visalia Property
Owners A ssociation City Council Member Parking fund revenue match ( 41,917) Total 623,083
Total Related Party Transactions 859,420$
Balance at Balance at D ue Within Due in More Than
June 30, 2024 Additions Deletions June 30, 2025 One Year One Year Governmental Lease Receivable Activities
General Fund 479,183$ $ 51,572 (77,438)$ $ 453,317 $ 83,556 369,761$ Golf Course 1,715,318 - (63,109) 1,652,209 64,150 1,588,059 Parking District 137,893 - (3,609) 134,284 3,867 130,417 Baseball - 843,745 (280,959) 562,786 134,627 428,159 Total Governmental Activities 2,332,394$ 895,317$ (425,115)$ 2,802,596$ 286,200$ 2,516,396$ Business-Type Lease Receivable Activities
Transit 84,984$ $ 1,949 (62,475)$ $ 24,458 $ 24,458 -$ Airport 5,225,263 186,479 (384,339) 5,027,403 434,363 4,593,040 Total Business-Type Activities 5,310,247$ 188,428$ (446,814)$ 5,051,861$ 458,821$ 4,593,040$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

103

Notes to the Financial Statements
NOTE 14 – LEASES RECEIVABLE (Continued)

B. Scheduled Lease Receivables Due

Lease receivables due in the upcoming years are as follows:

C. Deferred Inflows of Resources – Leases

Lease revenue to be recognized in the upcoming years is as follows:

For the Year
Ending June 30, Principal Interest Total Principal Interest Total 2026 286,200$ 49,699$ 335,899$ 458,821$ 72,008$ 530,829$ 2027 262,204 43,426 305,630 347,642 66,661 414,303 2028 258,319 37,575 295,894 201,610 62,560 264,170 2029 264,266 31,627 295,893 198,315 59,555 257,870 2030 114,823 26,671 141,494 201,295 56,574 257,869 2031-2035 654,534 102,836 757,370 1,002,516 237,531 1,240,047 2036-2040 574,297 54,570 628,867 1,035,021 161,641 1,196,662 2041-2045 345,047 10,487 355,534 740,537 92,657 833,194 2046-2050 28,734 1,800 30,534 415,086 47,732 462,818 2051-2055 14,172 77 14,249 269,485 24,256 293,741 2056-2060 - - - 181,533 4,549 186,082 2,802,596$ 358,768$ 3,161,364$ 5,051,861$ 885,724$ 5,937,585$ Governmental Activities Business-Type Activities
Business-Type Activities
For the Year
Ending June 30,
Deferred Inflows of Resources
to be Recognized
Deferred Inflows of
Resources to be Recognized
2026 328,321$ 467,198$
2 027 302,064 372,009 2028 292,649 220,039
2029 292,649 216,202
2030 211,768 214,284
2031-2035 639,950 1,025,992 2036-2040 470,665 986,554 2041-2045 246,955 673,601 2046-2050 23,243 364,216 2051-2055 10,847 224,749 2056-2060 - 142,372 2,819,111$ 4,907,216$
Governmental Activities

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

104

Notes to the Financial Statements
NOTE 15 – PLEDGED REVENUES

The City has pledged future tax increment revenues to repay bonds and a note issued by the former Redevelopment Agency (now the Successor Agency). These obligations are payable solely from the specified revenues and are not general obligations of the City. The total remaining principal and interest payments for this debt at June 30, 2025, is $1,125,171, payable through fiscal year 2028.

For the fiscal year ended June 30, 2025, total principal and interest paid was $ 426,054, and total pledged revenues recognized were $426,054. Details of the City’s revenue pledges at June 30, 2025, are as follows:

NOTE 16 – SUBSEQUENT EVENTS

Litigation Settlement – On July 8, 2025, there was a final judgement in favor of the City in the amount of $2,433,205.

However, the bankruptcy court proposed that $0.00 of the assets be paid to the City.

Management Review - Management has evaluated subsequent events through December 15, 2025, the date on which the financial statements were available to be issued. Other than the matter described above, there were no additional subsequent events requiring recognition or disclosure in the financial statements.

NOTE 17 – RESTATEMENTS AND ADJUSTMENTS

Change in Accounting Principle
In FY 2024- 25, the City implemented new pronouncement GASB 101 Compensated Absences. The new pronouncement uniformed and defined the elements required in the compensated absence liability calculation retroactively.

The change in accounting principle affected the following line items in the prior year governmentwide statements:

Net Position and Long-term Liabilities. As a result, the Net Position of governmental activities and business-type activities were overstated in prior year. In addition, t he change in accounting principle affected the following line items in the prior year Internal Service and Enterprise Fund statements: Net Position and Long-term liabilities. As a result, Net Position was overstated in the prior year.

Pledged Revenue Debt Service Paid in Remaining Debt Term of Pledge Pledged Revenue / Debt Issue Purpose in FY 2025 FY 2025 (P&I) Service (P&I) ( Maturity) Successor Agency - Private
Purpose Trust Fund
Tax Increment Revenue / Refunding of prior $244,938 $244,938 $490,406 2026 2003 Tax Allocation Bonds RDA debt
Tax Increment Revenue / Refinancing of $181,116 $181,116 $634,765 2028 2004 Mooney District Note prior RDA debt
July 1, 2024 Change in
As Previously Accounting July 1, 2024
Reported Principle As Restated
Net Position: Governmentwide
Governmental Activities 715,672,024$ (4,694,231)$ 710,977,793$ Business-Type Activities 458,182,170 (902,345) 457,279,825 Total Governmentwide 1,173,854,194$ (5,596,576)$ 1,168,257,618$ 105

REQUIRED

SUPPLEMENTARY

INFORMATION
(Unaudited)

106

107

City of Visalia
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2025

Budget and Budgetary Accounting

The City follows these procedures in establishing the budgetary data reflected in the financial statements:

1. The biennial budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and the means of financing them.

2. The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year. This "appropriated budget" covers substantially all City expenditures. There were no significant non -budgeted financial activities. Actual expenditures may not exceed budgeted appropriations at the fund level. The City Manager is authorized to make transfers of budget appropriations between classifications and activities within a fund.

3. Formal budgetary integration is employed as a management control device. Commitments for materials and services, such as purchase orders and contracts, are recorded during the year as encumbrances to assist in controlling expenditures. Appropriations, which are encumbered at year end, are added to the following year's budgeted appropriations.

4. Budgets are adopted on a basis substantially consistent with accounting principles generally accepted in the United States of America. Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items. No budgetary comparisons are presented for Proprietary Funds as the City is not legally required to adopt a budget for these types of funds.

5. Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year. For the fiscal year ended June 30, 202 5, based on calculations by City Management, proceeds of taxes did not exceed related appropriations. Further, Section 5 of Article XIIIB allows the City to designate a portion of fund balance for general contingencies, to be used in future years without limitation.

108

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2025

REVENUES
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Taxes
Sales 47,350,600$ 47,350,600$ 48,662,242$ 1,311,642$ Property 34,137,500 34,137,500 37,080,901 2,943,401 Transient Occupancy 4,647,800 4,647,800 5,001,865 354,065 Franchise 4,088,000 4,088,000 3,232,921 (855,079) Business License 3,473,300 3,473,300 3,340,082 (133,218) Total Taxes 93,697,200 93,697,200 97,318,011 3,620,811 Subventions and Grants
Police and Other 379,100 707,529 2,551,327 1,843,798 Motor Vehicle License In-Lieu 147,200 147,200 227,885 80,685 Total Subventions and Grants 526,300 854,729 2,779,212 1,924,483 License and Permits
Other License and Permits 56,200 56,200 49,532 (6,668) Total License and Permits 56,200 56,200 49,532 (6,668) Fees and Fines
Vehicle Code and Parking Violations 518,300 518,300 542,434 24,134 Local Ordinance Violations 634,400 634,400 783,206 148,806 Total Fees and Fines 1,152,700 1,152,700 1,325,640 172,940 Use of Money and Property
Interest Earned 546,900 546,900 2,646,035 2,099,135 Rents and Concessions 414,600 414,600 415,487 887 Total Use of Money and Property 961,500 961,500 3,061,522 2,100,022 Charges for Services
Engineering and Subdivision Fees 989,700 989,700 3,130,779 2,141,079 Zoning Fees 189,600 189,600 215,607 26,007 Special Public Safety Services 1,429,300 1,429,300 2,179,223 749,923 Recreation Programs 723,500 723,500 772,712 49,212 Total Charges for Services 3,332,100 3,332,100 6,298,321 2,966,221 Other Revenue 1,293,700 1,293,700 1,392,021 98,321 Total Revenues 101,019,700 101,348,129 112,224,259 10,876,130 Budgeted Amounts
109

REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (Continued) FOR THE YEAR ENDED JUNE 30, 2025

CITY OF VISALIA

EXPENDITURES
Original
Budget
Final
Budget A ctual
Variance With
Final Budget
Current:

General Government 4, 572,500$ 4,576,781$ 3,206,327$ 1,370,454$ Community Development 6,966,800 6,966,800 7,001,361 (34,561) Public Safety:

Fire 18,338,000 18,334,996 19,230,079 (895,083) Police 42,133,400 42,225,601 44,038,681 (1,813,080) Public Works 4,078,600 4,103,434 4,145,799 (42,365) Parks & Recreation 9,519,400 9,556,166 8,790,090 766,076 Capital Outlay 4,592,200 9,672,158 8,685,603 986,555 Debt Service (Note 7)
Principal - - 602,649 (602,649) Interest and Fiscal Charges - - 42,899 (42,899) Total Expenditures 90,200,900 95,435,936 95,743,488 (307,552) Excess (Deficiency) of
Revenues Over (Under) Expenditures 10,818,800 5,912,193 16,480,771 10,568,578 Other Financing Sources (Uses)
Proceeds From Sale of Capital Assets - - 18,500 18,500 Subscription Assets Acquired - - 392,903 392,903 Issuance of Debt - Leases Acquired - - 15,953 15,953 Transfers In - - 23,300,634 23,300,634 Transfers Out (6,347,500) (6,347,500) (12,700,990) (6,353,490) Total Other Financing Sources (Uses) (6,347,500) (6,347,500) 11,027,000 17,374,500 Net Change in Fund Balance 4,471,300$ (435,307)$ 27,507,771 27,943,078$ Fund Balances - Beginning of Year 59,096,010
Fund Balances - End of Year 86,603,781$
Budgeted Amounts
110

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE - MEASURE N FUND
FOR THE YEAR ENDED JUNE 30, 2025

REVENUES
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Taxes
Sales 18,123,700$ 18,123,700$ 18,733,236$ 609,536$
Total Taxes 18,123,700 18,123,700 18,733,236 609,536 Subventions and Grants
Police and Other - - 41,811 41,811 Total Subventions and Grants - - 41,811 41,811 Use of Money and Property
Interest Earned 380,000 380,000 2,113,021 1,733,021 Total Use of Money and Property 380,000 380,000 2,113,021 1,733,021 Charges for Current Services - - - - Other Revenue 400 400 41,563 41,163 Total Revenues 18,504,100 18,504,100 20,929,631 2,425,531

EXPENDITURES
Current:

General Government 260,400 260,400 228,496 31,904 Public Safety:

Fire 1,747,600 1,747,600 1,802,954 (55,354) Police 7,472,200 7,472,200 7,047,496 424,704 Parks & Recreation 986,400 995,047 888,720 106,327 Capital Outlay 5,338,900 7,401,343 5,104,444 2,296,899 Debt Service (Note 7)
Debt Service-Principal - - 309,507 (309,507) Debt Service-Interest - - 28,855 (28,855) Total Expenditures 15,805,500 17,876,590 15,410,472 2,466,118 Excess (Deficiency) of
Revenues Over (Under) Expenditures 2,698,600 627,510 5,519,159 4,891,649 Other Financing Sources
Transfers In - - 24,082 24,082 Transfers Out - - (242,500) (242,500) Total Other Financing Sources - - (218,418) (218,418) Net Change in Fund Balance 2,698,600$ 627,510$ 5,300,741 4,673,231$ Fund Balances - Beginning of Year 36,900,255
Fund Balance - End of Year 42,200,996$
Budgeted Amounts
111

Original and
Final
B
udget Actual
Variance With
Final Budget
Revenues
Subventions and Grants -$ 21,936,281$ 21,936,281$ Uses of Money and Property - 662,830 662,830 Miscellaneous - 302 302 Total Revenues - 22,599,413 22,599,413 Expenditures
Current:

Capital Outlay 1,308,729 1,308,729 -
Total Expenditures 1,308,729 1,308,729 - Excess (Deficiency) of
Revenue Over (Under) Expenditures (1,308,729) 21,290,684 22,599,413 Other Financing Sources (Uses)
Transfers Out - (23,112,970) 23,112,970 Total Other Financing Sources - (23,112,970) 23,112,970 Net Changes in Fund Balance (1,308,729)$ (1,822,286) 45,712,383$ Fund Balance - Beginning of Year 1,822,286
Fund Balance - End of Year -$

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE - AMERICAN RESCUE PLAN FUND FOR THE YEAR ENDED JUNE 30, 2025

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

112

Required Supplementary Information

Miscellaneous Plan
Measurement Period 2023-24 2022-23 2021-22 2020-21 2019-20

TOTAL PENSION LIABILITY
Service Cost 5,625,448$ 5,014,272$ 4,868,837$ 4,395,969$ 4,403,664$ Interest 19,930,729 18,923,125 17,957,207 17,627,181 16,958,814 Changes of Benefit Terms - 337,776 - - - Difference Between Expected and Actual Experience 4,376,782 4,073,370 (4,315,154) (88,959) (1,366,753) Changes of Assumptions - - 8,329,382 - - Benefit Payments, Including Refunds of Employee Contributions (14,412,320) (13,621,273) (13,000,942) (12,115,961) (11,727,761) Net Change in Total Pension Liability 15,520,639 14,727,270 13,839,330 9,818,230 8,267,964 Total Pension Liability - Beginning 288,867,800 274,140,530 260,301,200 250,482,970 242,215,006 Total Pension Liability - Ending (a) 304,388,439$ 288,867,800$ 274,140,530$ 260,301,200$ 250,482,970$

PLAN FIDUCIARY NET POSITION
Contributions - Employer 9,239,433$ 9,200,531$ 8,224,129$ 7,688,208$ 7,072,583$ Contributions - Employee 2,474,111 2,280,204 1,923,874 1,897,359 1,918,767 Net Investment Income 19,272,982 11,991,455 (16,135,131) 39,751,521 8,526,757 Benefit Payments, Including Refunds of Employee Contributions (14,412,320) (13,621,273) (13,000,942) (12,115,961) (11,727,761) Net Plan to Plan Resource Movement - - - - - Administrative Expense (165,018) (141,990) (132,195) (174,979) (239,113) Other Miscellaneous Income/(Expense)1 - - - - - Net Change in Fiduciary Net Position 16,409,188 9,708,927 (19,120,265) 37,046,148 5,551,233 Plan Fiduciary Net Position - Beginning2 202,799,265 193,090,338 212,210,603 175,164,455 169,613,222 Plan Fiduciary Net Position - Ending (b) 219,208,453$ 202,799,265$ 193,090,338$ 212,210,603$ 175,164,455$ PLAN NET PENSION LIABILITY/(ASSET) - ENDING (a)-(b) 85,179,986$ 86,068,535$ 81,050,192$ 48,090,597$ 75,318,515$ Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 72.02% 70.20% 70.43% 81.53% 69.93% Covered Payroll 3 30,506,769$ 26,488,495$ 25,571,621$ 25,483,876$ 25,250,366$ Plan Net Pension Liability/(Asset) as a
Percentage of Covered Payroll 279.22% 324.93% 316.95% 188.71% 298.29% 1 2 Includes any begining of year adjustments.
3 Notes to Schedule:

Changes of Assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021 valuation date (June 30, 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. The accounting discount rate was 7.15% for measurment dates June 30, 2017 through June 30, 2021, and 7.65% for measurment dates June 30, 2015 through June 30, 2016.

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS FOR THE YEAR ENDED:

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

Includes one year's payroll growth using 2.80 percent payroll growth assumption for fiscal years ended June 30, 2022 through 2024; 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

113

Required Supplementary Information

Miscellaneous Plan
Measurement Period 2018-19 2017-18 2016-17 2015-16 2014-15

TOTAL PENSION LIABILITY
Service Cost 4,255,037$ 4,192,969$ 4,245,437$ 3,786,783$ 3,692,092$ Interest 16,380,941 15,535,179 14,997,055 14,571,322 13,839,466 Changes of Benefit Terms - - - - - Difference Between Expected and Actual Experience 2,525,650 (286,874) (2,890,524) 431,303 (307,086) Changes of Assumptions - (1,586,819) 12,685,479 - (3,447,570) Benefit Payments, Including Refunds of Employee Contributions (10,795,043) (10,116,949) (9,515,763) (8,700,574) (8,186,347) Net Change in Total Pension Liability 12,366,585 7,737,506 19,521,684 10,088,834 5,590,555 Total Pension Liability - Beginning 229,848,421 222,110,915 202,589,231 192,500,397 186,909,842 Total Pension Liability - Ending (a) 242,215,006$ 229,848,421$ 222,110,915$ 202,589,231$ 192,500,397$

PLAN FIDUCIARY NET POSITION
Contributions - Employer 6,219,874$ 5,482,359$ 5,129,632$ 4,678,278$ 4,077,411$ Contributions - Employee 1,845,020 1,850,278 1,781,007 1,733,983 1,747,629 Net Investment Income 10,604,879 12,914,267 15,518,122 742,388 3,174,848 Benefit Payments, Including Refunds of Employee Contributions (10,795,043) (10,116,949) (9,515,763) (8,700,574) (8,186,347) Net Plan to Plan Resource Movement - (376) - - - Administrative Expense (115,502) (237,501) (206,266) (86,138) (159,136) Other Miscellaneous Income/(Expense)1 376 (451,018) - - - Net Change in Fiduciary Net Position 7,759,604 9,441,060 12,706,732 (1,632,063) 654,405 Plan Fiduciary Net Position - Beginning2 161,853,618 152,412,558 139,705,826 141,337,889 140,683,484 Plan Fiduciary Net Position - Ending (b) 169,613,222$ 161,853,618$ 152,412,558$ 139,705,826$ 141,337,889$ PLAN NET PENSION LIABILITY/(ASSET) - ENDING (a)-(b) 72,601,784$ 67,994,803$ 69,698,357$ 62,883,405$ 51,162,508$ Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 70.03% 70.42% 68.62% 68.96% 73.42% Covered Payroll 3 23,916,793$ 23,303,337$ 22,840,895$ 22,218,995$ 21,309,546$ Plan Net Pension Liability/(Asset) as a
Percentage of Covered Payroll 303.56% 291.78% 305.15% 283.02% 240.09% 1 2 Includes any begining of year adjustments.
3 Notes to Schedule:

Changes of Assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021 valuation date (June 30, 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. The accounting discount rate was 7.15% for measurment dates June 30, 2017 through June 30, 2021, and 7.65% for measurment dates June 30, 2015 through June 30, 2016.

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS FOR THE YEAR ENDED:

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

114

Required Supplementary Information
Safety Plan
Measurement Period 2023-24 2022-23 2021-22 2020-21 2019-20

TOTAL PENSION LIABILITY
Service Cost 7,965,287$ 7,341,173$ 7,271,834$ 6,473,248$ 6,324,588$ Interest 21,904,771 20,534,740 19,359,561 18,396,919 17,437,680 Changes of Benefit Terms - 142,088 - - - Difference Between Expected and Actual Experience 5,194,048 2,691,739 (2,751,520) 403,302 (1,240,319) Changes of Assumptions - - 12,387,796 - - Benefit Payments, Including Refunds of Employee Contributions (14,160,274) (12,892,726) (12,043,905) (11,219,989) (10,427,951) Net Change in Total Pension Liability 20,903,832 17,817,014 24,223,766 14,053,480 12,093,998 Total Pension Liability - Beginning 315,363,893 297,546,879 273,323,113 259,269,633 247,175,635 Total Pension Liability - Ending (a) 336,267,725$ 315,363,893$ 297,546,879$ 273,323,113$ 259,269,633$

PLAN FIDUCIARY NET POSITION
Contributions - Employer 11,207,408$ 11,407,444$ 10,480,584$ 10,044,602$ 8,928,558$ Contributions - Employee 2,963,630 2,809,328 2,430,715 2,349,763 2,142,637 Net Investment Income 22,726,236 13,860,541 (18,360,033) 44,537,546 9,341,900 Benefit Payments, Including Refunds of Employee Contributions (14,160,274) (12,892,726) (12,043,905) (11,219,989) (10,427,951) Net Plan to Plan Resource Movement - - - - - Administrative Expense (193,002) (163,372) (149,387) (194,086) (260,195) Other Miscellaneous Income/(Expense)1 - - - - - Net Change in Fiduciary Net Position 22,543,998 15,021,215 (17,642,026) 45,517,836 9,724,949 Plan Fiduciary Net Position - Beginning2 237,189,206 222,167,991 239,810,017 194,292,181 184,567,232 Plan Fiduciary Net Position - Ending (b) 259,733,204$ 237,189,206$ 222,167,991$ 239,810,017$ 194,292,181$ PLAN NET PENSION LIABILITY/(ASSET) - ENDING (a)-(b) 76,534,521$ 78,174,687$ 75,378,888$ 33,513,096$ 64,977,452$ Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 77.24% 75.21% 74.67% 87.74% 74.94% Covered Payroll 3 25,254,555$ 23,013,081$ 22,374,873$ 21,898,673$ 21,060,898$ Plan Net Pension Liability/(Asset) as a
Percentage of Covered Payroll 303.05% 339.70% 336.89% 153.04% 308.52% 1 2 Includes any begining of year adjustments.
3 Notes to Schedule:

Changes of Assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021 valuation date (June 30, 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. The accounting discount rate was 7.15% for measurment dates June 30, 2017 through June 30, 2021, and 7.65% for measurment dates June 30, 2015 through June 30, 2016.

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS FOR THE YEAR ENDED:

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

115

Required Supplementary Information

Safety Plan
Measurement Period 2018-19 2017-18 2016-17 2015-16 2014-15

TOTAL PENSION LIABILITY
Service Cost 6,222,413$ 5,995,204$ 5,853,759$ 5,349,411$ 5,222,479$ Interest 16,600,696 15,464,636 14,715,002 14,186,919 13,269,691 Changes of Benefit Terms - - - - - Difference Between Expected and Actual Experience 3,326,073 (517,263) (4,891,206) 807,923 (373,500) Changes of Assumptions - (1,321,124) 13,266,074 - (3,509,871) Benefit Payments, Including Refunds of Employee Contributions (9,427,686) (8,593,404) (8,040,046) (7,578,069) (7,169,237) Net Change in Total Pension Liability 16,721,496 11,028,049 20,903,583 12,766,184 7,439,562 Total Pension Liability - Beginning 230,454,139 219,426,090 198,522,507 185,756,323 178,316,761 Total Pension Liability - Ending (a) 247,175,635$ 230,454,139$ 219,426,090$ 198,522,507$ 185,756,323$

PLAN FIDUCIARY NET POSITION
Contributions - Employer 8,085,201$ 7,221,051$ 6,623,640$ 6,259,154$ 5,610,391$ Contributions - Employee 2,172,900 1,924,202 1,846,297 1,750,054 1,805,168 Net Investment Income 11,443,404 13,555,587 15,911,405 717,302 3,141,564 Benefit Payments, Including Refunds of Employee Contributions (9,427,686) (8,593,404) (8,040,046) (7,578,069) (7,169,237) Net Plan to Plan Resource Movement - (400) - (9,962) - Administrative Expense (123,040) (247,809) (210,978) (86,447) (159,587) Other Miscellaneous Income/(Expense)1 400 (470,593) - - - Net Change in Fiduciary Net Position 12,151,179 13,388,634 16,130,318 1,052,032 3,228,299 Plan Fiduciary Net Position - Beginning2 172,416,053 159,027,419 142,897,101 141,845,069 138,616,770 Plan Fiduciary Net Position - Ending (b) 184,567,232$ 172,416,053$ 159,027,419$ 142,897,101$ 141,845,069$ PLAN NET PENSION LIABILITY/(ASSET) - ENDING (a)-(b) 62,608,403$ 58,038,086$ 60,398,671$ 55,625,406$ 43,911,254$ Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 74.67% 74.82% 72.47% 71.98% 76.36% Covered Payroll 3 20,360,634$ 19,541,081$ 18,777,695$ 19,201,043$ 18,560,232$ Plan Net Pension Liability/(Asset) as a
Percentage of Covered Payroll 307.50% 297.01% 321.65% 289.70% 236.59% 1 2 Includes any begining of year adjustments.
3 Notes to Schedule:

Changes of Assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021 valuation date (June 30, 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. The accounting discount rate was 7.15% for measurment dates June 30, 2017 through June 30, 2021, and 7.65% for measurment dates June 30, 2015 through June 30, 2016.

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS FOR THE YEAR ENDED:

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

116

Required Supplementary Information

Miscellaneous Plan
Fiscal Year
Actuarially
Determined
Contribution
(ADC)
Contributions in
Relation to the
ADC
Contribution
Deficiency
(Excess) Covered Payroll1
Contributions as a
Percentage of
Covered Payroll
2024-25 10,620,001$ ( 10,620,001)$ -$ 35,030,996$ 30.32% 2023-24 9,239,433 (9,239,433) - 30,506,769 30.29% 2022-23 9,200,531 (9,200,531) - 26,488,495 34.73% 2021-22 8,224,129 (8,224,129) - 25,571,621 32.16% 2020-21 7,688,208 (7,688,208) - 25,483,876 30.17% 2019-20 7,072,583 (7,072,583) - 25,250,366 28.01% 2018-19 6,219,874 (6,219,874) - 23,916,793 26.01% 2017-18 5,482,359 (5,482,359) - 23,303,337 23.53% 2016-17 5,129,632 (5,129,632) - 22,840,895 22.46% 2015-16 4,678,278 (4,678,278) - 22,218,995 21.06% 2014-15 4,077,411 (4,077,411) - 21,309,546 19.13% 2013-14 3,947,176 (3,947,176) - 20,653,520 19.11% Safety Plan
Fiscal Year
Actuarially
Determined
Contribution
(ADC)
Contributions in
Relation to the
ADC
Contribution
Deficiency
(Excess) Covered Payroll1
Contributions as a
Percentage of
Covered Payroll
2024-25 12,576,668$ ( 12,576,668)$ -$ 29,192,371$ 43.08% 2023-24 11,207,408 (11,207,408) - 25,254,555 44.38% 2022-23 11,407,444 (11,407,444) - 23,013,081 49.57% 2021-22 10,480,454 (10,480,454) - 22,374,873 46.84% 2020-21 10,044,602 (10,044,602) - 21,898,673 45.87% 2019-20 8,928,558 (8,928,558) - 21,060,898 42.39% 2018-19 8,085,201 (8,085,201) - 20,360,634 39.71% 2017-18 7,221,051 (7,221,051) - 19,541,081 36.95% 2016-17 6,623,640 (6,623,640) - 18,777,695 35.27% 2015-16 6,259,154 (6,259,154) - 19,201,043 32.60% 2014-15 5,610,391 (5,610,391) - 18,560,232 30.23% 2013-14 5,703,922 (5,703,922) - 17,363,328 32.85% 1 Notes to Schedule
Actuarial Cost Method Entry Age Actuarial Cost Method.

Amortization Method/Period For details, see June 30, 2021 Funding Valuation Report.

Asset Valuation Method Fair Value of Assets. For details, see June 30, 2021 Funding Valuation Report.

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 and Administrative Expenses; includes Inflation.

Retirement Age
Mortality
Other information:

For changes to previous years' information, refer to past GASB 68 reports.

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.

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CONTRIBUTIONS
FOR THE YEAR ENDED:

The probabilities of Retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

Fiscal year ended June 30, 2025 covered payroll is based on PERSable income during fiscal year 2024-25. Includes one year's payroll growth using 2.80 percent payroll growth assumption for fiscal year ended June 30, 2022 through 2024; 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2023-24 were derived from the June 30, 2021 funding valuation report.
117

SUPPLEMENTARY

INFORMATION

118

119

Original
Budget
Final
Budget A ctual
Variance With
Final Budget
Revenues
Fees and Fines 5, 345,500$ 5,345,500$ 7,248,428$ 1,902,928$ Uses of Money and Property 302,100 302,100 1,985,126 1,683,026 Miscellaneous - - 501,720 501,720 Total Revenues 5,647,600 5,647,600 9,735,274 4,087,674 Expenditures
Current:

Public Works 46,800 46,800 63,393 (16,593) Capital Outlay 4,726,100 5,763,077 5,077,804 685,273 Total Expenditures 4,772,900 5,809,877 5,141,197 668,680 Excess (Deficiency) of
Revenue Over (Under) Expenditures 874,700 (162,277) 4,594,077 4,756,354 Net Changes in Fund Balance 874,700$ (162,277)$ 4,594,077 4,756,354$ Fund Balance - Beginning of Year 31,443,342
Fund Balance - End of Year 36,037,419$

CITY OF VISALIA

SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE - TRANSPORTATION - CAPITAL PROJECT FUND FOR THE YEAR ENDED JUNE 30, 2025
Budgeted Amounts

120

Original and
Final
Budget Actual
Variance With
Final Budget
Revenues
Uses of Money and Property -$ 4,291,442$ 4,291,442$ Miscellaneous - 26 26 Total Revenues - 4,291,468 4,291,468 Expenditures
Current:

General Government - 35,794 (35,794) Capital Outlay 4,794,178 4,794,134 44 Total Expenditures 4,794,178 4,829,928 (35,750) Excess (Deficiency) of
Revenue Over (Under) Expenditures (4,794,178) (538,460) 4,255,718 Net Changes in Fund Balance (4,794,178)$ (538,460) 4,255,718$ Fund Balance - Beginning of Year 74,101,431
Fund Balance - End of Year 73,562,971$

CITY OF VISALIA

SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE - CIVIC CENTER - CAPITAL PROJECT FUND FOR THE YEAR ENDED JUNE 30, 2025
121

NON- MAJOR GOVERNMENTAL FUNDS

122

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

123

Non-Major Governmental Funds

SPECIAL REVENUE FUNDS

WATERWAYS
Established to account for the acquisition and landscaping of development buffers along designated waterways. This is funded by monthly rates and development impact fees.

GROUNDWATER RECHARGE
Established to account for the costs of recharging the City’s underground water system. The funding is provided by monthly rates and development fees.

KAWEAH LAKE AND LOCAL STORMWATER MAINTENANCE
Established to account for the costs of adding to the water holding capacity of Lake Kaweah (a source of the City’s water) and was expanded to include the maintenance of local storm channels by a successful ballot election that concluded on March 18, 2013. The funding is provided by monthly rates and development fees.

SPECIAL SERVICE DISTRICTS
Established to account for the maintenance of landscape districts throughout the City. Revenue is collected from fees charged to property owners in the districts.

NORTHEAST AREA
Funded by fees collected on Northeast properties at the time of building permit issuance; monies can only be used for improvements specified in the Northeast Area Master Plan.

GRANT & LOAN FUNDS
Established to account for various funds receiving federal funding. Also established to account for the loans given to the City for low - and moderate -income housing assistance by the California Housing Finance Agency. Federal funding received provides for such activities as community policing, bicycle, and foot patrol in business districts in the City of Visalia.

NARCOTICS FORFEITURE
Established to account for money received from narcotics seizures of cash and property as authorized by the Health and Safety Code. Monies deposited in this fund are invested until a court determines whether the money must be returned to the previous owner, or the funds are forfeited to the City which may use the seized funds for the recovery of narcotics law enforcement costs associated with the seized funds.

MEASURE T – POLICE
Established to account for increased Police operational and capital expenditures. Financing is provided by 60% of the ¼ cent sales tax ballot measure (T) approved by voters during the March 2, 2004, primary election. No sales tax funds can replace General Fund dollars budgeted for normal operations at the previous years’ service level unless the City Council declares an economic emergency by a 4/5
ths vote.

MEASURE T – FIRE
Established to account for increased Fire operational and capital expenditures. Financing is provided by 40% of the ¼ cent sales tax ballot measure (T) approved by voters during the March 2, 2004, primary election. No sales tax funds can replace General Fund dollars budgeted for normal operations at the previous years’ service level unless the City Council declares an economic emergency by a 4/5
ths vote.

MEASURE R – LOCAL
Established to account for the costs of specific local transportation projects and for its funding from a ¼ cent sales tax ballot measure (R) approved by the voters.

MEASURE R – REGIONAL
Established to account for the costs of specific transportation projects and for its funding from a ¼ cent sales tax ballot measure (R) approved by the voters for regional, transit, bike and pedestrian projects.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

124

Non-Major Governmental Funds

TRANSPORTATION GRANTS
Established to account for the financing and construction of streets, roads, and various transportation infrastructure and facilities. Funding is provided by ¼ cent of the 7 ¼ cent retail sales tax collected statewide and by Proposition 1B funds for streets and transit.

GOLF COURSE
Established to account for the major repairs to buildings and equipment (ie heating/cooling equipment) located at the Golf Course. Revenue is collected through the lease of the Golf Course to Valley Oaks Golf, LLC.

CASP PROGRAM (Certified Access Specialist)
Established to account for the additional $1 assessed to all business licenses as required by the State of California Senate Bill (SB) 1186. SB 1186 adds new rules and protections for business owners related to access compliance requirements set forth under the ADA, the California Building Code, and SB 1608.

OAK TREE PRESERVATION
Established to account for the activity of o ak tree preservation and m aintenance throughout the City. Revenue is collected from fees charged to property owners for removal of Oak Trees.

CONSERVATION
Established for energy conservation projects throughout the City. Revenue is collected from grants, reimbursements and incentives.

POLICE UNCLAIMED FUNDS
Established to track and account for money that is found or seized and no longer required as evidence and remains unclaimed after three years. I f the money remains unclaimed the money becomes the property of the City. This fund should not be confused with Narcotics Forfeiture Funds.

HOUSING & COMMUNITY GRANTS
The Housing & Community Grants Fund is used to account for the affordable housing and public service needs of the City’s low - and moderate-income households. Financing is provided by Community Development Block Grants (CDBG), the Home Investment Partnership Program (HOME), Neighborhood Stabilization Program (NSP) , ERF Encampment Resolution, HomeKey, Permanent Local Housing Allocation and fines charged for substandard housing and abandoned vehicle abatement. Also, within the CDBG, HOME and NSP programs, when money that was previously loaned out is paid back, it again becomes available for use in the rehabili tation and development programs.

HOUSING SUCCESSOR AGENCY
The Housing Successor Agency Fund is used to retain the housing assets and functions previously performed by the dissolved Redevelopment Agency of the City of Visalia.

DEBT SERVICE FUNDS

VPFA 2014 REFUNDING CERTIFICATES OF PARTICIPATION
Established to account for the payment of the VPFA 2014 Refunding Certificates of Participation.

2015 CERTIFICATES OF PARTICIPATION
Established to account for the payment of the 2015 Certificates of Participation.

CAPITAL PROJECTS FUNDS

SOFTBALL FACILITY DEVELOPMENT
Established to account for the financing and improvement and/or development of a community softball facility.

Financing is provided from fees charged to existing softball facility users specifically for future development or improvement.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

125

Non-Major Governmental Funds

HIGHWAY USERS
Established to account for the construction and improvement of streets and roads. Financing is provided by grant funds received from state sale taxes on gasoline.

RECREATIONAL FACILITIES
Established to account for the acquisition and development of park and open space. Financing is provided by fees paid by developers in lieu of providing parks and open space.

STORM SEWER CONSTRUCTION
Established to account for the acquisition and installation of storm drain systems. Financing is provided by a specific storm sewer fee charged for new developments.

PUBLIC SAFETY IMPACT FEE
Established to defray the costs of public safety facilities needed as a result of new development projects. Funding is provided by fees charged to new developments.

GOVERNMENT FACILITIES IMPACT FEE
Established to defray the cost of public facilities (i.e., Civic Center, Corporation Yard, and Library) needed as a result of new development projects. Funding is provided by fees charged to new developments.

PARKING DISTRICT
Established to account for acquisition and development of downtown parking facilities. Funding is provided by a specific fee charged for new development and expanded uses within the central business district. Therefore, it is not governed by a formal budget and its financial presentation reflects changes in assets and liabilities as well as the flow of resources.

FACILITY IMPROVEMENTS
Established to account for the maintenance and improvements to City facilities.

REGIONAL PARKS
Established to account for the construction of regional parks.

VEHICLE MILES TRAVELED IMPACT FEE
Established to account for the financing and development of active transportation projects that are multi -modal and reduce vehicle miles traveled. Projects can include trails, bike lanes, sidewalks, and transit. Funding is provided by a fee charged to projects whose Vehicles Miles Traveled (VMT) falls below the City’s established VMT threshold, and required to mitigate impacts.

ANIMAL CONTROL RESERVE
Established to account for the construction of the Animal Control Facility.

BASEBALL
Established to account for the maintenance and improvements to the baseball facility.

126

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS
JUNE 30, 2025

Waterways
Groundwater
Recharge
Kaweah Lake and
Local Storm
Water
Maintenance
Special
S ervic e
Districts
ASSETS
Cash and Investments 5,162,565$ 2,329,918$ 943,156$ 19,668,599$ Restricted Cash and Investments:

Cash Held by Trustee - - - - Cash Held by City - - - - Accounts Receivable 87,715 142,872 56,409 - Lease Receivable - - - - Taxes Receivable - 1,619 - 139,499 Notes and Loans Receivable 147,093 - - - Due from Other Governmental Units - - - - Prepaids and Deposits - - - - Total Assets 5,397,373$ 2,474,409$ 999,565$ 19,808,098$

LIABILITIES
Accounts, Interest and Contracts Payable 5,064$ 3,958$ -$ 397,150$ Due to Other Funds 35,198 - - - Advance from Other Funds - - - 1,226,278 Customer Deposits - - - - Unearned Revenue - 11,429 - - Total Liabilities 40,262 15,387 - 1,623,428

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Grants - - - - Unavailable Revenue - Impact Fees 42,729 - - - Leases - - - - Total Deferred Inflows of Resources 42,729 - - -

FUND BALANCES
Restricted 5,314,382 2,459,022 999,565 18,184,670 Committed - - - - Assigned - - - - Unassigned (Deficit) - - - - Total Fund Balances (Deficit) 5,314,382 2,459,022 999,565 18,184,670 5,397,373$ 2,474,409$ 999,565$ 19,808,098$ Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

SPECIAL REVENUE FUNDS

127

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (Continued)
JUNE 30, 2025

Northeast
Area
Grant
& Loan
F
unds
Narcotics
Forfeiture
Measure T
Police
ASSETS
Cash and Investments 939, 520$ -$ 704,604$ 9,987,772$ Restricted Cash and Investments:

Cash Held by Trustee - - - - Cash Held by City - - - - Accounts Receivable 1,722 212 - 1,481 Lease Receivable - - - - Taxes Receivable - - - 961,164 Notes and Loans Receivable - - - - Due from Other Governmental Units - - - - Prepaids and Deposits - - - - Total Assets 941,242$ 212$ 704,604$ 10,950,417$

LIABILITIES
Accounts, Interest and Contracts Payable -$ 129$ 124,072$ 1,498$ Due to Other Funds - 26,218 - Advance from Other Funds - - - - Customer Deposits - - 197,552 - Unearned Revenue - - 338,315 - Total Liabilities - 26,347 659,939 1,498

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Grants - - - - Unavailable Revenue - Impact Fees 1,722 - - - Leases - - - - Total Deferred Inflows of Resources 1,722 - - -

FUND BALANCES
Restricted 939,520 - 44,665 10,948,919 Committed - - - - Assigned - - - - Unassigned (Deficit) - (26,135) - - Total Fund Balances (Deficit) 939,520 (26,135) 44,665 10,948,919 941,242$ 212$ 704,604$ 10,950,417$ Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

SPECIAL REVENUE FUNDS

128

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (Continued)
JUNE 30, 2025

Measure T
Fire
Measure R
Local
Measure R
Regional
Transportation
Grants
ASSETS
Cash and Investments 7,506,067$ 20,068,908$ -$ 4,123,585$ Restricted Cash and Investments:

Cash Held by Trustee - - - - Cash Held by City - - - - Accounts Receivable 1,295 - - - Lease Receivable - - - - Taxes Receivable 640,776 495,396 3,629,939 - Notes and Loans Receivable - - - - Due from Other Governmental Units 5,708 - - 653,957 Prepaids and Deposits - - - - Total Assets 8,153,846$ 20,564,304$ 3,629,939$ 4,777,542$

LIABILITIES
Accounts, Interest and Contracts Payable 7,328$ 1,187,624$ 2,966,144$ 2,187,801$ Due to Other Funds - - - - Advance from Other Funds - - 721,820 - Customer Deposits - - - - Unearned Revenue - - - - Total Liabilities 7,328 1,187,624 3,687,964 2,187,801

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Grants - - - - Unavailable Revenue - Impact Fees - - - - Leases - - - - Total Deferred Inflows of Resources - - - -

FUND BALANCES
Restricted 8,146,518 19,376,680 - 2,589,741 Committed - - - - Assigned - - - - Unassigned (Deficit) - - (58,025) - Total Fund Balances (Deficit) 8,146,518 19,376,680 (58,025) 2,589,741 8,153,846$ 20,564,304$ 3,629,939$ 4,777,542$

SPECIAL REVENUE FUNDS
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

129

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (Continued)
JUNE 30, 2025

Golf
Course
CASP
Program
Oak Tree
Preservation Conservation
ASSETS
Cash and Investments 947,424$ 746,707$ 238,009$ 270,283$ Restricted Cash and Investments:

Cash Held by Trustee - - - - Cash Held by City - - - - Accounts Receivable 7,500 17,326 - - Lease Receivable 1,652,209 - - - Taxes Receivable - - - - Notes and Loans Receivable - - - - Due from Other Governmental Units - - - - Prepaids and Deposits - 4 - - Total Assets 2,607,133$ 764,037$ 238,009$ 270,283$

LIABILITIES
Accounts, Interest and Contracts Payable 92$ 4,501$ -$ -$ Due to Other Funds - - - - Advance from Other Funds - - - - Customer Deposits - - - - Unearned Revenue - - - - Total Liabilities 92 4,501 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Grants - - - - Unavailable Revenue - Impact Fees - - - - Leases 1,565,977 - - - Total Deferred Inflows of Resources 1,565,977 - - -

FUND BALANCES
Restricted - 759,536 238,009 - Committed 1,041,064 - - 270,283 Assigned - - - - Unassigned (Deficit) - - - - Total Fund Balances (Deficit) 1,041,064 759,536 238,009 270,283 2,607,133$ 764,037$ 238,009$ 270,283$

SPECIAL REVENUE FUNDS
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

130

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (Continued)
JUNE 30, 2025

DEBT SERVICE
FUNDS
Police Unclaimed
Funds
Housing &
Community
Grants
Housing
Successor
Agency
VPFA 2014
Refunding
Certificates of
Participation
ASSETS
Cash and Investments 276,662$ 6,628,657$ 763,941$ -$ Restricted Cash and Investments:

Cash Held by Trustee - - - - Cash Held by City - - - - Accounts Receivable - - - - Lease Receivable - - - - Taxes Receivable - - - - Notes and Loans Receivable - 26,444,704 9,455,977 - Due from Other Governmental Units - 2,464,707 - - Prepaids and Deposits - - - - Total Assets 276,662$ 35,538,068$ 10,219,918$ -$

LIABILITIES
Accounts, Interest and Contracts Payable 2,901$ 178,949$ -$ 509$ Due to Other Funds - 1,798,877 - - Advance from Other Funds - - - - Customer Deposits - - - - Unearned Revenue 152,198 6,281,481 - - Total Liabilities 155,099 8,259,307 - 509

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Grants - - - - Unavailable Revenue - Impact Fees - - - - Leases - - - - Total Deferred Inflows of Resources - - - -

FUND BALANCES
Restricted - 27,278,761 10,219,918 - Committed 121,563 - - - Assigned - - - - Unassigned (Deficit) - - - (509) Total Fund Balances (Deficit) 121,563 27,278,761 10,219,918 (509) 276,662$ 35,538,068$ 10,219,918$ -$

SPECIAL REVENUE FUNDS
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

131

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (Continued)
JUNE 30, 2025

DEBT SERVICE

FUNDS CAPITAL PROJECT FUNDS
2015
Certificates of
Participation
Softball
Facility
Development
Highway
Users
Recreational
Facilities
ASSETS
Cash and Investments -$ 8,385$ 18,483,290$ 12,083,131$ Restricted Cash and Investments:

Cash Held by Trustee 18,254 - - - Cash Held by City - - - - Accounts Receivable - - 3,950 1,848,261 Lease Receivable - - - - Taxes Receivable - - 671,519 - Notes and Loans Receivable - - - - Due from Other Governmental Units - - - - Prepaids and Deposits - - - - Total Assets 18,254$ 8,385$ 19,158,759$ 13,931,392$

LIABILITIES
Accounts, Interest and Contracts Payable 15,083$ -$ 614,523$ 25,244$ Due to Other Funds - - - - Advance from Other Funds - - - - Customer Deposits - - - - Unearned Revenue - - - - Total Liabilities 15,083 - 614,523 25,244

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Grants - - - - Unavailable Revenue - Impact Fees - - - 1,848,261 Leases - - - - Total Deferred Inflows of Resources - - - 1,848,261

FUND BALANCES
Restricted 3,171 - 18,544,236 12,057,887 Committed - 8,385 - - Assigned - - - - Unassigned (Deficit) - - - - Total Fund Balances (Deficit) 3,171 8,385 18,544,236 12,057,887 18,254$ 8,385$ 19,158,759$ 13,931,392$ Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

132

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (Continued)
JUNE 30, 2025

Storm Sewer
Construction
Public Safety
Impact Fee
Government
Facilities
Impact Fee
Parking
District
ASSETS
Cash and Investments 7,671,985$ 2,467,319$ 11,526,025$ 2,578,775$ Restricted Cash and Investments:

Cash Held by Trustee - - - - Cash Held by City - - - - Accounts Receivable 193,752 407,087 730,958 677 Lease Receivable - - - 134,284 Taxes Receivable 11,336 - - 11,861 Notes and Loans Receivable 1,562 22,117 44,212 86,103 Due from Other Governmental Units - - - - Prepaids and Deposits - - - - Total Assets 7,878,635$ 2,896,523$ 12,301,195$ 2,811,700$

LIABILITIES
Accounts, Interest and Contracts Payable 158,194$ 2,304$ 2,259$ 131$ Due to Other Funds - - - Advance from Other Funds - - - - Customer Deposits - - - 3,895 Unearned Revenue - - - - Total Liabilities 158,194 2,304 2,259 4,026

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Grants - - - - Unavailable Revenue - Impact Fees 120,989 407,087 730,958 - Leases - - - 127,063 Total Deferred Inflows of Resources 120,989 407,087 730,958 127,063

FUND BALANCES
Restricted 7,599,452 2,487,132 11,567,978 2,680,611 Committed - - - - Assigned - - - - Unassigned (Deficit) - - - - Total Fund Balances (Deficit) 7,599,452 2,487,132 11,567,978 2,680,611 7,878,635$ 2,896,523$ 12,301,195$ 2,811,700$

CAPITAL PROJECT FUNDS
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

133

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (Continued)
JUNE 30, 2025

Facility
Improvements Regional Parks
Vehicle
Miles Traveled
Impact Fee
Animal Control
Reserve
ASSETS
Cash and Investments 853,089$ 628,106$ 40,189$ 274,023$ Restricted Cash and Investments:

Cash Held by Trustee - - - - Cash Held by City - - - - Accounts Receivable - - - - Lease Receivable - - - - Taxes Receivable - - - - Notes and Loans Receivable - - - - Due from Other Governmental Units - - - - Prepaids and Deposits - - - - Total Assets 853,089$ 628,106$ 40,189$ 274,023$

LIABILITIES
Accounts, Interest and Contracts Payable -$ -$ -$ -$ Due to Other Funds - - - - Advance from Other Funds - - - - Customer Deposits - - - - Unearned Revenue - - - - Total Liabilities - - - -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Grants - - - - Unavailable Revenue - Impact Fees - - - - Leases - - - - Total Deferred Inflows of Resources - - - -

FUND BALANCES
Restricted - - - - Committed - - - - Assigned 853,089 628,106 40,189 274,023 Unassigned (Deficit) - - - - Total Fund Balances (Deficit) 853,089 628,106 40,189 274,023 853,089$ 628,106$ 40,189$ 274,023$

CAPITAL PROJECT FUNDS
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

134

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (Continued)
JUNE 30, 2025

CAPITAL

PROJECT
FUNDS
Baseball
Total
Non-major
Governmental
Funds
ASSETS
Cash and Investments 2,201,301$ 140,121,995$
Restricted Cash and Investments:

Cash Held by Trustee - 18,254
Cash Held by City 5,669,443 5, 669,443
Accounts Receivable - 3,501,217
Lease Receivable 562,786 2,349,279
Taxes Receivable - 6,563,109
Notes and Loans Receivable - 36,201,768 Due from Other Governmental Units - 3,124,372 Prepaids and Deposits - 4
Total Assets 8,433,530$ 197,549,441$

LIABILITIES
Accounts, Interest and Contracts Payable 789,736$ 8,675,194 Due to Other Funds - 1,860,293
Advance from Other Funds - 1,948,098 Customer Deposits - 201,447
Unearned Revenue - 6,783,423
Total Liabilities 789,736 19,468,455

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Grants - - Unavailable Revenue - Impact Fees - 3,151,746 Leases 690,336 2,383,376
Total Deferred Inflows of Resources 690,336 5,535,122

FUND BALANCES
Restricted - 162,440,373
Committed 6,953,458 8,394,753
Assigned - 1,795,407
Unassigned (Deficit) - (84,669)
Total Fund Balances (Deficit) 6,953,458 172,545,864 8,433,530$ 197,549,441$
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

135

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2025

Waterways
Groundwater
Recharge
Kaweah Lake and
Local Storm
Water
Maintenance
Special
S ervic e
Districts

REVENUES
Sales Taxes -$ -$ -$ -$ Other Taxes - - - - Subventions and Grants - - - - License and Permits - - - - Fees and Fines 979,671 1,552,119 422,400 - Uses of Money and Property 283,063 165,505 57,191 1,034,282 Charges for Current Services 328,170 - - 6,098,095 Miscellaneous - 498 - 47 Total Revenues 1,590,904 1,718,122 479,591 7,132,424

EXPENDITURES
Current:

General Government - - - - Community Development - - - - Housing & Community Grants - - - - Public Safety:

Fire - - - - Police - - - - Public Works 373,838 969,420 23,724 - Parks & Recreation - - - 4,756,610 Capital Outlay 638,734 1,341,562 - 159,431 Debt Service:

Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 1,012,572 2,310,982 23,724 4,916,041 Excess (Deficiency) of
Revenues Over (Under) Expenditures 578,332 (592,860) 455,867 2,216,383

OTHER FINANCING SOURCES (USES)
Transfers In - - - - Transfers Out - - (300,000) - Total Other Financing Sources (Uses) - - (300,000) - Net Changes in Fund Balances 578,332 (592,860) 155,867 2,216,383 Fund Balances (Deficits) - Beginning of
Year 4,736,050 3,051,882 843,698 15,968,287 Fund Balances (Deficits) - End of Year 5,314,382$ 2,459,022$ 999,565$ 18,184,670$

SPECIAL REVENUE FUNDS

136

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Northeast
Area
Grant
& Loan
Funds
Narcotics
Forfeiture
Measure T
Police

REVENUES
Sales Taxes -$ -$ -$ 5,622,553$ Other Taxes - - - - Subventions and Grants - 433,715 - 37,731 License and Permits - - - - Fees and Fines 172,789 - - - Uses of Money and Property 43,870 5,130 - 535,793 Charges for Current Services - - - - Miscellaneous - 44 64,150 142 Total Revenues 216,659 438,889 64,150 6,196,219

EXPENDITURES
Current:

General Government - - - - Community Development - - - - Housing & Community Grants - - - - Public Safety:

Fire - - - - Police - 392,041 13,161 4,733,969 Public Works 1,211 - - - Parks & Recreation - - - - Capital Outlay - 88,942 50,939 31 Debt Service:

Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 1,211 480,983 64,100 4,734,000 Excess (Deficiency) of
Revenues Over (Under) Expenditures 215,448 (42,094) 50 1,462,219

OTHER FINANCING SOURCES (USES)
Transfers In - - - - Transfers Out - (72,332) - (280,093) Total Other Financing Sources (Uses) - (72,332) - (280,093) Net Changes in Fund Balances 215,448 (114,426) 50 1,182,126 Fund Balances (Deficits) - Beginning of
Year 724,072 88,291 44,615 9,766,793 Fund Balances (Deficits) - End of Year 939,520$ (26,135)$ 44,665$ 10,948,919$

SPECIAL REVENUE FUNDS

137

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Measure T
Fire
Measure R
Local
Measure R
Regional
Transportation
Grants

REVENUES
Sales Taxes 3,748,368$ 4,130,315$ 4,904,067$ -$ Other Taxes - - - - Subventions and Grants - - - 1,268,847 License and Permits - - - - Fees and Fines - - - - Uses of Money and Property 401,015 1,003,138 3,159 242,510 Charges for Current Services 152,955 - - - Miscellaneous 325 6 104,461 - Total Revenues 4,302,663 5,133,459 5,011,687 1,511,357

EXPENDITURES
Current:

General Government - - - - Community Development - - - - Housing & Community Grants - - - - Public Safety:

Fire 3,414,732 - - - Police - - - - Public Works - 43,549 36,348 2,025 Parks & Recreation - - - - Capital Outlay 1,037 1,779,442 4,654,337 3,079,694 Debt Service:

Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 3,415,769 1,822,991 4,690,685 3,081,719 Excess (Deficiency) of
Revenues Over (Under) Expenditures 886,894 3,310,468 321,002 (1,570,362)

OTHER FINANCING SOURCES (USES)
Transfers In - 5,820 - - Transfers Out (130,050) - - (5,820) Total Other Financing Sources (Uses) (130,050) 5,820 - (5,820) Net Changes in Fund Balances 756,844 3,316,288 321,002 (1,576,182) Fund Balances (Deficits) - Beginning of
Year 7,389,674 16,060,392 (379,027) 4,165,923 Fund Balances (Deficits) - End of Year 8,146,518$ 19,376,680$ (58,025)$ 2,589,741$

SPECIAL REVENUE FUNDS

138

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Golf
Course
CASP
Program
Oak Tree
Preservation Conservation

REVENUES
Sales Taxes -$ -$ -$ -$ Other Taxes - 101,448 - - Subventions and Grants - - - - License and Permits - - - - Fees and Fines 290,514 - 29,492 - Uses of Money and Property 71,592 38,359 13,074 14,861 Charges for Current Services - - - - Miscellaneous - 41 - - Total Revenues 362,106 139,848 42,566 14,861

EXPENDITURES
Current:

General Government 68,705 - - - Community Development - 4,155 - - Housing & Community Grants - - - - Public Safety:

Fire - - - - Police - - - - Public Works - - - - Parks & Recreation - - 36,510 123 Capital Outlay - - - - Debt Service:

Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 68,705 4,155 36,510 123 Excess (Deficiency) of
Revenues Over (Under) Expenditures 293,401 135,693 6,056 14,738

OTHER FINANCING SOURCES (USES)
Transfers In - - - - Transfers Out - - - - Total Other Financing Sources (Uses) - - - - Net Changes in Fund Balances 293,401 135,693 6,056 14,738 Fund Balances (Deficits) - Beginning of
Year 747,663 623,843 231,953 255,545 Fund Balances (Deficits) - End of Year 1,041,064$ 759,536$ 238,009$ 270,283$

SPECIAL REVENUE FUNDS

139

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

DEBT SERVICE
FUNDS
Police Unclaimed
Funds
Housing &
Community
Grants
Housing
Successor
Agency
VPFA 2014
Refunding
Certificates of
Participation

REVENUES
Sales Taxes -$ -$ -$ -$ Other Taxes - - - Subventions and Grants - 14,481,407 1,317,434 - License and Permits - - - - F
ees and Fines - 44,741 - - Uses of Money and Property 14,888 293,931 106,339 - Charges for Current Services - 5,000 - - Miscellaneous 5,751 5,967 19 - Total Revenues 20,639 14,831,046 1,423,792 -

EXPENDITURES
Current:

General Government - - 356,400 - Community Development - 96,071 - - Housing & Community Grants - 2,906,613 - - Public Safety:

Fire - - - - Police 10,421 - - - Public Works - - - - Parks & Recreation - - - - Capital Outlay 5,552 7,630,494 1,325,000 - Debt Service:

Principal - - - 117,600 Interest and Fiscal Charges - - - 8,658 Total Expenditures 15,973 10,633,178 1,681,400 126,258 Excess (Deficiency) of
Revenues Over (Under) Expenditures 4,666 4,197,868 (257,608) (126,258)

OTHER FINANCING SOURCES (USES)
Transfers In - 41,308 - 126,739 Transfers Out - (35,795) - - Total Other Financing Sources (Uses) - 5,513 - 126,739 Net Changes in Fund Balances 4,666 4,203,381 (257,608) 481 Fund Balances (Deficits) - Beginning of
Year 116,897 23,075,380 10,477,526 (990) Fund Balances (Deficits) - End of Year 121,563$ 27,278,761$ 10,219,918$ (509)$

SPECIAL REVENUE FUNDS

140

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

DEBT SERVICE
FUNDS

PROJECT
FUNDS
2015
Certificates of
Participation
Softball
Facility
Development
Highway
Users
Recreational
Facilities

REVENUES
Sales Taxes -$ -$ -$ -$ Other Taxes - - - - Subventions and Grants - - 8,980,748 - License and Permits - - - - Fees and Fines - - - 2,591,091 Uses of Money and Property 3,079 396 907,972 727,061 Charges for Current Services - 1,182 - - Miscellaneous - - 3,977 11 Total Revenues 3,079 1,578 9,892,697 3,318,163

EXPENDITURES
Current:

General Government 1,336 - - - Community Development - - - - Housing & Community Grants - - - - Public Safety:

Fire - - - - Police - - - - Public Works - - 1,412,736 - Parks & Recreation - 4 - 23,821 Capital Outlay - - 3,203,058 3,460,575 Debt Service:

Principal 948,743 - - - Interest and Fiscal Charges 203,855 - - - Total Expenditures 1,153,934 4 4,615,794 3,484,396 Excess (Deficiency) of
Revenues Over (Under) Expenditures (1,150,855) 1,574 5,276,903 (166,233)

OTHER FINANCING SOURCES (USES)
Transfers In 1,157,824 - - - Transfers Out - - - - Total Other Financing Sources (Uses) 1,157,824 - - - Net Changes in Fund Balances 6,969 1,574 5,276,903 (166,233) Fund Balances (Deficits) - Beginning of
Year (3,798) 6,811 13,267,333 12,224,120 Fund Balances (Deficits) - End of Year 3,171$ 8,385$ 18,544,236$ 12,057,887$

CAPITAL PROJECT FUNDS

141

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Storm Sewer
Construction
Public Safety
Impact Fee
Government
Facilities
Impact Fee
Parking
District

REVENUES
Sales Taxes -$ -$ -$ -$ Other Taxes - - - - Subventions and Grants - - - 141,907 License and Permits - - - 8,710 Fees and Fines 1,813,623 748,429 509,242 - Uses of Money and Property 368,795 126,979 624,008 286,662 Charges for Current Services - - - - Miscellaneous 28,001 - - 1 Total Revenues 2,210,419 875,408 1,133,250 437,280

EXPENDITURES
Current:

General Government - - 12,503 34,679 Community Development - - - - Housing & Community Grants - - - - Public Safety:

Fire - 4,630 - - Police - 969 - - Public Works 42,302 - 3,315 - Parks & Recreation - - - - Capital Outlay 371,698 213,030 210,788 2,051,052 Debt Service:

Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 414,000 218,629 226,606 2,085,731 Excess (Deficiency) of
Revenues Over (Under) Expenditures 1,796,419 656,779 906,644 (1,648,451)

OTHER FINANCING SOURCES (USES)
Transfers In - - - 83,350 Transfers Out - (414,852) - - Total Other Financing Sources (Uses) - (414,852) - 83,350 Net Changes in Fund Balances 1,796,419 241,927 906,644 (1,565,101) Fund Balances (Deficits) - Beginning of
Year 5,803,033 2,245,205 10,661,334 4,245,712 Fund Balances (Deficits) - End of Year 7,599,452$ 2,487,132$ 11,567,978$ 2,680,611$

CAPITAL PROJECT FUNDS

142

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Facility
Improvements Regional Parks
Vehicle
Miles Traveled
Impact Fee
Animal Control
Reserve

REVENUES
Sales Taxes -$ -$ -$ -$ Other Taxes - - - - Subventions and Grants - - - - License and Permits - - - - Fees and Fines - - 11,129 - Uses of Money and Property 46,905 34,537 1,658 15,066 Charges for Current Services - - - - Miscellaneous - - - - Total Revenues 46,905 34,537 12,787 15,066

EXPENDITURES
Current:

General Government 392 289 13 125 Community Development - - - - Housing & Community Grants - - - - Public Safety:

Fire - - - - Police - - - - Public Works - - - - Parks & Recreation - - - - Capital Outlay - 36 - - Debt Service:

Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 392 325 13 125 Excess (Deficiency) of
Revenues Over (Under) Expenditures 46,513 34,212 12,774 14,941

OTHER FINANCING SOURCES (USES)
Transfers In - - - - Transfers Out - - - - Total Other Financing Sources (Uses) - - - - Net Changes in Fund Balances 46,513 34,212 12,774 14,941 Fund Balances (Deficits) - Beginning of
Year 806,576 593,894 27,415 259,082 Fund Balances (Deficits) - End of Year 853,089$ 628,106$ 40,189$ 274,023$

CAPITAL PROJECT FUNDS

143

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)

CAPITAL

PROJECT
F
UNDS
Baseball
Total
Non-major
G
overnmental
Funds

REVENUES
Sales Taxes -$ 18,405,303$
Other Taxes - 101,448
Subventions and Grants - 26,661,789 License and Permits - 8,710
Fees and Fines - 9,165,240
Uses of Money and Property 189,580 7,660,398 Charges for Current Services - 6,585,402 Miscellaneous 186,153 399,594
Total Revenues 375,733 68,987,884

EXPENDITURES
Current:

General Government 295,238 769,680
Community Development - 100,226
Housing & Community Grants - 2,906,613 Public Safety:

Fire - 3,419,362
Police - 5,150,561
Public Works - 2,908,468
Parks & Recreation - 4,817,068
Capital Outlay 1,987,049 32,252,481
Debt Service:

Principal - 1,066,343
Interest and Fiscal Charges - 212,513 Total Expenditures 2,282,287 53,603,315
Excess (Deficiency) of
Revenues Over (Under) Expenditures (1,906,554) 15,384,569

OTHER FINANCING SOURCES (USES)
Transfers In 8,303,717 9,718,758
Transfers Out - (1,238,942)
Total Other Financing Sources (Uses) 8,303,717 8,479,816 Net Changes in Fund Balances 6,397,163 23,864,385 Fund Balances (Deficits) - Beginning of
Year 556,295 148,681,479
Fund Balances (Deficits) - End of Year 6,953,458$ 172,545,864$

144

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025

Final
Budget A ctual
Variance
With Final
B
udget
Final
Budget A ctual
Variance
With Final
B
udget

REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants - - - - - - License and Permits - - - - - - Fees and Fines 487,700 979,671 491,971 1,234,800 1,552,119 317,319 Uses of Money and Property 39,200 283,063 243,863 32,900 165,505 132,605 Charges for Current Services 320,600 328,170 7,570 - - - Miscellaneous - - - - 498 498 Total Revenues 847,500 1,590,904 743,404 1,267,700 1,718,122 450,422

EXPENDITURES
Current:

General Government - - - - - - Community Development - - - - - - Housing & Community Grants - - - - - - Public Safety:

Fire - - - - - - Police - - - - - - Public Works 331,000 373,838 (42,838) 296,300 969,420 (673,120) Parks & Recreation - - - - - - Capital Outlay 738,472 638,734 99,738 1,556,851 1,341,562 215,289 Debt Service:

Principal - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 1,069,472 1,012,572 56,900 1,853,151 2,310,982 (457,831) Excess (Deficiency) of
Revenues Over (Under) Expenditures (221,972) 578,332 800,304 (585,451) (592,860) ( 7,409)

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances (221,972)$ 578,332 800,304$ (585,451)$ (592,860) (7,409)$ Fund Balances (Deficits) - Beginning of
Year 4,736,050 3,051,882
Fund Balances (Deficits) - End of Year 5,314,382$ 2,459,022$ Waterways Groundwater Recharge

145

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Final
Budget A ctual
Variance
With Final
B
udget
Final
Budget A ctual
Variance
With Final
B
udget

REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants - - - - - - License and Permits - - - - - - Fees and Fines 367,400 422,400 55,000 - - - Uses of Money and Property 20,700 57,191 36,491 150,000 1,034,282 884,282 Charges for Current Services - - - 5,813,200 6,098,095 284,895 Miscellaneous - - - - 47 47 Total Revenues 388,100 479,591 91,491 5,963,200 7,132,424 1,169,224

EXPENDITURES
Current:

General Government - - - - - - Community Development - - - - - - Housing & Community Grants - - - - - - Public Safety:

Fire - - - - - - Police - - - - - - Public Works 21,200 23,724 (2,524) - - - Parks & Recreation - - - 4,015,800 4,756,610 (740,810) Capital Outlay - - - 323,322 159,431 163,891 Debt Service:

Principal - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 21,200 23,724 (2,524) 4,339,122 4,916,041 (576,919) Excess (Deficiency) of
Revenues Over (Under) Expenditures 366,900 455,867 88,967 1,624,078 2,216,383 592, 305

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - - Transfers Out (300,000) (300,000) - - - - Total Other Financing Sources (Uses) (300,000) (300,000) - - - - Net Changes in Fund Balances 66,900$ 155,867 88,967$ 1,624,078$ 2,216,383 592,305$ Fund Balances (Deficits) - Beginning of
Year 843,698 15,968,287
Fund Balances (Deficits) - End of Year 999,565$ 18,184,670$ Kaweah Lake and
Local Storm Water Maintenance Special Service Districts

146

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants - - - 433,714 433,715 1 License and Permits - - - - - - Fees and Fines 1,600 172,789 171,189 - - - Uses of Money and Property - 43,870 43,870 - 5,130 5,130 Charges for Current Services - - - - - - Miscellaneous - - - - 44 44 Total Revenues 1,600 216,659 215,059 433,714 438,889 5,175

EXPENDITURES
Current:

General Government - - - - - - Community Development - - - - - - Housing & Community Grants - - - - - - Public Safety:

Fire - - - - - - Police - - - 336,300 392,041 (55,741) Public Works 1,100 1,211 (111) - - - Parks & Recreation - - - - - - Capital Outlay - - - 75,000 88,942 (13,942) Debt Service:

Principal - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 1,100 1,211 (111) 411,300 480,983 (69,683) Excess (Deficiency) of
Revenues Over (Under) Expenditures 500 215,448 214,948 22,414 (42,094) ( 64,508)

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - - Transfers Out - - - - (72,332) (72,332) Total Other Financing Sources (Uses) - - - - (72,332) (72,332) Net Changes in Fund Balances 500$ 215,448 214,948$ 22,414$ (114,426) (136,840)$ Fund Balances (Deficits) - Beginning of
Year 724,072 88,291
Fund Balances (Deficits) - End of Year 939,520$ (26,135)$ Northeast Area Grant & Loan Funds

147

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Final
Budget A ctual
Variance
With Final
B
udget
Final
Budget A ctual
Variance
With Final
B
udget

REVENUES
Sales Taxes -$ -$ -$ 5,451,200$ 5,622,553$ 171,353$ Other Taxes - - - - - - Subventions and Grants - - - 6,000 37,731 31,731 License and Permits - - - - - - Fees and Fines - - - - - - Uses of Money and Property - - - 65,000 535,793 470,793 Charges for Current Services - - - - - - Miscellaneous 112,900 64,150 (48,750) 30,000 142 (29,858) Total Revenues 112,900 64,150 (48,750) 5,552,200 6,196,219 644,019

EXPENDITURES
Current:

General Government - - - - - - Community Development - - - - - - Housing & Community Grants - - - - - - Public Safety:

Fire - - - - - - Police 23,300 13,161 10,139 4,967,200 4,733,969 233,231 Public Works - - - - - - Parks & Recreation - - - - - - Capital Outlay 61,477 50,939 10,538 - 31 (31) Debt Service:

Principal - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 84,777 64,100 20,677 4,967,200 4,734,000 233,200 Excess (Deficiency) of
Revenues Over (Under) Expenditures 28,123 50 (28,073) 585,000 1,462,219 877, 219

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - - Transfers Out - - - (151,500) (280,093) (128,593) Total Other Financing Sources (Uses) - - - (151,500) (280,093) (128,593) Net Changes in Fund Balances 28,123$ 50 (28,073)$ 433,500$ 1,182,126 748,626$ Fund Balances (Deficits) - Beginning of
Year 44,615 9,766,793
Fund Balances (Deficits) - End of Year 44,665$ 10,948,919$ Narcotics Forfeiture Measure T - Police

148

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Final
Budget A ctual
Variance
With Final
B
udget
Final
Budget A ctual
Variance
With Final
B
udget

REVENUES
Sales Taxes 3, 634,100$ 3,748,368$ 114,268$ 3,929,800$ 4,130,315$ 200,515$ Other Taxes - - - - - - Subventions and Grants - - - - - - License and Permits - - - - - - Fees and Fines - - - - - - Uses of Money and Property 66,000 401,015 335,015 157,700 1,003,138 845,438 Charges for Current Services 50,000 152,955 102,955 - - - Miscellaneous 30,100 325 (29,775) - 6 6 Total Revenues 3,780,200 4,302,663 522,463 4,087,500 5,133,459 1,045,959

EXPENDITURES
Current:

General Government - - - - - - Community Development - - - - - - Housing & Community Grants - - - - - - Public Safety:

Fire 3,403,900 3,414,732 (10,832) - - - Police - - - - - - Public Works - - - 37,200 43,549 (6,349) Parks & Recreation - - - - - - Capital Outlay - 1,037 (1,037) 2,553,125 1,779,442 773,683 Debt Service:

Principal - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 3,403,900 3,415,769 (11,869) 2,590,325 1,822,991 767,334 Excess (Deficiency) of
Revenues Over (Under) Expenditures 376,300 886,894 510,594 1,497,175 3,310,468 1, 813,293

OTHER FINANCING SOURCES (USES)
Transfers In - - - - 5,820 5,820 Transfers Out - (130,050) (130,050) - - - Total Other Financing Sources (Uses) - (130,050) (130,050) - 5,820 5,820 Net Changes in Fund Balances 376,300$ 756,844 380,544$ 1,497,175$ 3,316,288 1,819,113$ Fund Balances (Deficits) - Beginning of
Year 7,389,674 16,060,392
Fund Balances (Deficits) - End of Year 8,146,518$ 19,376,680$ Measure T - Fire Measure R - Local

149

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Final
Budget A ctual
Variance
With Final
B
udget
Final
Budget A ctual
Variance
With Final
B
udget

REVENUES
Sales Taxes 1, 294,600$ 4,904,067$ 3,609,467$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants - - - 835,000 1,268,847 433,847 License and Permits - - - - - - Fees and Fines - - - - - - Uses of Money and Property - 3,159 3,159 - 242,510 242,510 Charges for Current Services - - - - - - Miscellaneous - 104,461 104,461 - - - Total Revenues 1,294,600 5,011,687 3,717,087 835,000 1,511,357 676,357

EXPENDITURES
Current:

General Government - - - - - - Community Development - - - - - - Housing & Community Grants - - - - - - Public Safety:

Fire - - - - - - Police - - - - - - Public Works - 36,348 (36,348) 1,200 2,025 (825) Parks & Recreation - - - - - - Capital Outlay 4,247,235 4,654,337 (407,102) 3,079,694 3,079,694 - Debt Service:

Principal - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 4,247,235 4,690,685 (443,450) 3,080,894 3,081,719 (825) Excess (Deficiency) of
Revenues Over (Under) Expenditures (2,952,635) 321,002 3,273,637 (2,245,894) (1,570,362) 675, 532

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - - Transfers Out - - - - (5,820) (5,820) Total Other Financing Sources (Uses) - - - - (5,820) (5,820) Net Changes in Fund Balances (2,952,635)$ 321,002 3,273,637$ (2,245,894)$ (1,576,182) 669,712$ Fund Balances (Deficits) - Beginning of
Year (379,027) 4,165,923
Fund Balances (Deficits) - End of Year (58,025)$ 2,589,741$ Measure R - Regional Transportation Grants

150

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Final
Budget A ctual
Variance
With Final
B
udget
Final
Budget A ctual
Variance
With Final
B
udget

REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - 90,100 101,448 11,348 Subventions and Grants - - - - - - License and Permits - - - - - - Fees and Fines 274,700 290,514 15,814 - - - Uses of Money and Property 5,000 71,592 66,592 5,000 38,359 33,359 Charges for Current Services - - - - - - Miscellaneous - - - - 41 41 Total Revenues 279,700 362,106 82,406 95,100 139,848 44,748

EXPENDITURES
Current:

General Government 64,300 68,705 (4,405) - - - Community Development - - - 22,000 4,155 17,845 Housing & Community Grants - - - - - - Public Safety:

Fire - - - - - - Police - - - - - - Public Works - - - - - - Parks & Recreation - - - - - - Capital Outlay - - - - - - Debt Service:

Principal - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 64,300 68,705 (4,405) 22,000 4,155 17,845 Excess (Deficiency) of
Revenues Over (Under) Expenditures 215,400 293,401 78,001 73,100 135,693 62, 593

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances 215,400$ 293,401 78,001$ 73,100$ 135,693 62,593$ Fund Balances (Deficits) - Beginning of
Year 747,663 623,843
Fund Balances (Deficits) - End of Year 1,041,064$ 759,536$ Golf
Course
CASP
Program

151

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Final
Budget A ctual
Variance
With Final
B
udget
Final
Budget A ctual
Variance
With Final
B
udget

REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants - - - - - - License and Permits - - - - - - Fees and Fines - 29,492 29,492 - - - Uses of Money and Property - 13,074 13,074 - 14,861 14,861 Charges for Current Services - - - - - - Miscellaneous - - - - - - Total Revenues - 42,566 42,566 - 14,861 14,861

EXPENDITURES
Current:

General Government - - - - - - Community Development - - - - - - Housing & Community Grants - - - - - - Public Safety:

Fire - - - - - - Police - - - - - - Public Works - - - - - - Parks & Recreation - 36,510 (36,510) - 123 (123) Capital Outlay - - - - - - Debt Service:

Principal - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures - 36,510 (36,510) - 123 (123) Excess (Deficiency) of
Revenues Over (Under) Expenditures - 6,056 6,056 - 14,738 14, 738

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances -$ 6,056 6,056$ -$ 14,738 14,738$ Fund Balances (Deficits) - Beginning of
Year 231,953 255,545
Fund Balances (Deficits) - End of Year 238,009$ 270,283$ Oak Tree Preservation Conservation

152

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Housing &
Community
Grants
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants - - - 8,540,963 14,481,407 5,940,444 License and Permits - - - - - - Fees and Fines - - - 15,600 44,741 29,141 Uses of Money and Property 2,000 14,888 12,888 62,600 293,931 231,331 Charges for Current Services - - - - 5,000 5,000 Miscellaneous 20,000 5,751 (14,249) 10,600 5,967 (4,633) Total Revenues 22,000 20,639 (1,361) 8,629,763 14,831,046 6,201,283

EXPENDITURES
Current:

General Government - - - - - - Community Development - - - 87,200 96,071 (8,871) Housing & Community Grants - - - 6,727,755 2,906,613 3,821,142 Public Safety:

Fire - - - - - - Police 15,100 10,421 4,679 - - - Public Works - - - - - - Parks & Recreation - - - - - - Capital Outlay 2,659 5,552 (2,893) 7,630,494 7,630,494 - Debt Service:

Principal - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 17,759 15,973 1,786 14,445,449 10,633,178 3,812,271 Excess (Deficiency) of
Revenues Over (Under) Expenditures 4,241 4,666 425 (5,815,686) 4,197,868 10,013,554

OTHER FINANCING SOURCES (USES)
Transfers In - - - - 41,308 41,308 Transfers Out - - - - (35,795) (35,795) Total Other Financing Sources (Uses) - - - - 5,513 5,513 Net Changes in Fund Balances 4,241$ 4,666 425$ (5,815,686)$ 4,203,381 10,019,067$ Fund Balances (Deficits) - Beginning of
Year 116,897 23,075,380
Fund Balances (Deficits) - End of Year 121,563$ 27,278,761$ Police Unclaimed Funds

153

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Housing
Successor
Agency
VPFA 2014
Refunding
Certificates of
Participation
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants - 1,317,434 1,317,434 - - - License and Permits - - - - - - Fees and Fines - - - - - - Uses of Money and Property 7,000 106,339 99,339 - - - Charges for Current Services - - - - - - Miscellaneous - 19 19 - - - Total Revenues 7,000 1,423,792 1,416,792 - - -

EXPENDITURES
Current:

General Government 354,600 356,400 (1,800) - - - Community Development - - - - - - Housing & Community Grants - - - - - - Public Safety:

Fire - - - - - - Police - - - - - - Public Works - - - - - - Parks & Recreation - - - - - - Capital Outlay 1,325,000 1,325,000 - - - - Debt Service:

Principal - - - 117,600 117,600 - Interest and Fiscal Charges - - - 9,100 8,658 442 Total Expenditures 1,679,600 1,681,400 (1,800) 126,700 126,258 442 Excess (Deficiency) of
Revenues Over (Under) Expenditures (1,672,600) (257,608) 1,414,992 (126,700) (126,258) 442

OTHER FINANCING SOURCES (USES)
Transfers In - - - 126,700 126,739 39 Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - 126,700 126,739 39 Net Changes in Fund Balances (1,672,600)$ (257,608) 1,414,992$ -$ 481 481$ Fund Balances (Deficits) - Beginning of
Year 10,477,526 (990)
Fund Balances (Deficits) - End of Year 10,219,918$ (509)$

154

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

2015
Certificates of
Participation
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants - - - - - - License and Permits - - - - - - Fees and Fines - - - - - - Uses of Money and Property - 3,079 3,079 - 396 396 Charges for Current Services - - - 1,200 1,182 (18) Miscellaneous - - - - - - Total Revenues - 3,079 3,079 1,200 1,578 378

EXPENDITURES
Current:

General Government - 1,336 (1,336) - - - Community Development - - - - - - Housing & Community Grants - - - - - - Public Safety:

Fire - - - - - - Police - - - - - - Public Works - - - - - - Parks & Recreation - - - 100 4 96 Capital Outlay - - - - - - Debt Service:

Principal 948,700 948,743 (43) - - - Interest and Fiscal Charges 207,800 203,855 3,945 - - - Total Expenditures 1,156,500 1,153,934 2,566 100 4 96 Excess (Deficiency) of
Revenues Over (Under) Expenditures (1,156,500) (1,150,855) 5,645 1,100 1,574 474

OTHER FINANCING SOURCES (USES)
Transfers In 1,157,100 1,157,824 724 - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) 1,157,100 1,157,824 724 - - - Net Changes in Fund Balances 600$ 6,969 6,369$ 1,100$ 1,574 474$ Fund Balances (Deficits) - Beginning of
Year (3,798) 6,811
Fund Balances (Deficits) - End of Year 3,171$ 8,385$ Softball Facility Development

155

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants 7,368,200 8,980,748 1,612,548 - - - License and Permits - - - - - - Fees and Fines - - - 2,417,000 2,591,091 174,091 Uses of Money and Property 138,200 907,972 769,772 81,600 727,061 645,461 Charges for Current Services - - - - - - Miscellaneous - 3,977 3,977 - 11 11 Total Revenues 7,506,400 9,892,697 2,386,297 2,498,600 3,318,163 819,563

EXPENDITURES
Current:

General Government - - - - - - Community Development - - - - - - Housing & Community Grants - - - - - - Public Safety:

Fire - - - - - - Police - - - - - - Public Works 1,495,900 1,412,736 83,164 - - - Parks & Recreation - - - 16,500 23,821 (7,321) Capital Outlay 3,626,466 3,203,058 423,408 3,460,603 3,460,575 28 Debt Service:

Principal - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 5,122,366 4,615,794 506,572 3,477,103 3,484,396 (7,293) Excess (Deficiency) of
Revenues Over (Under) Expenditures 2,384,034 5,276,903 2,892,869 (978,503) (166,233) 812, 270

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances 2,384,034$ 5,276,903 2,892,869$ (978,503)$ (166,233) 812,270$ Fund Balances (Deficits) - Beginning of
Year 13,267,333 12,224,120
Fund Balances (Deficits) - End of Year 18,544,236$ 12,057,887$ Highway Users Recreational Facilities

156

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants - - - - - - License and Permits - - - - - - Fees and Fines 1,271,900 1,813,623 541,723 889,000 748,429 (140,571) Uses of Money and Property 38,900 368,795 329,895 28,300 126,979 98,679 Charges for Current Services - - - - - - Miscellaneous - 28,001 28,001 - - - Total Revenues 1,310,800 2,210,419 899,619 917,300 875,408 (41,892)

EXPENDITURES
Current:

General Government - - - - - - Community Development - - - - - - Housing & Community Grants - - - - - - Public Safety:

Fire - - - 3,600 4,630 (1,030) Police - - - 900 969 (69) Public Works 32,300 42,302 (10,002) - - - Parks & Recreation - - - - - - Capital Outlay 418,447 371,698 46,749 213,030 213,030 - Debt Service:

Principal - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 450,747 414,000 36,747 217,530 218,629 (1,099) Excess (Deficiency) of -
Revenues Over (Under) Expenditures 860,053 1,796,419 936,366 699,770 656, 779 (42,991)

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - - Transfers Out - - - (415,200) (414,852) 348 Total Other Financing Sources (Uses) - - - (415,200) (414,852) 348 Net Changes in Fund Balances 860,053$ 1,796,419 936,366$ 284,570$ 241,927 (42,643)$ Fund Balances (Deficits) - Beginning of
Year 5,803,033 2,245,205
Fund Balances (Deficits) - End of Year 7,599,452$ 2,487,132$ Storm Sewer Construction Public Safety Impact Fee

157

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants - - - 40,300 141,907 101,607 License and Permits - - - 9,400 8,710 (690) Fees and Fines 663,800 509,242 (154,558) - - - Uses of Money and Property 284,400 624,008 339,608 45,700 286,662 240,962 Charges for Current Services - - - - - - Miscellaneous - - - - 1 1 Total Revenues 948,200 1,133,250 185,050 95,400 437,280 341,880

EXPENDITURES
Current:

General Government 11,100 12,503 (1,403) 6,100 34,679 (28,579) Community Development - - - - - - Housing & Community Grants - - - - - - Public Safety:

Fire - - - - - - Police - - - - - - Public Works 2,100 3,315 (1,215) - - - Parks & Recreation - - - - - - Capital Outlay 210,788 210,788 - 2,500,000 2,051,052 448,948 Debt Service:

Principal - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 223,988 226,606 (2,618) 2,506,100 2,085,731 420,369 Excess (Deficiency) of
Revenues Over (Under) Expenditures 724,212 906,644 182,432 (2,410,700) (1,648,451) 762, 249

OTHER FINANCING SOURCES (USES)
Transfers In - - - - 83,350 83,350 Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - 83,350 83,350 Net Changes in Fund Balances 724,212$ 906,644 182,432$ (2,410,700)$ (1,565,101) 845,599$ Fund Balances (Deficits) - Beginning of
Year 10,661,334 4,245,712
Fund Balances (Deficits) - End of Year 11,567,978$ 2,680,611$ Government Facilities Impact Fee Parking District

158

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants - - - - - - License and Permits - - - - - - Fees and Fines - - - - - - Uses of Money and Property - 46,905 46,905 - 34,537 34,537 Charges for Current Services - - - - - - Miscellaneous - - - - - - Total Revenues - 46,905 46,905 - 34,537 34,537

EXPENDITURES
Current:

General Government - 392 (392) - 289 (289) Community Development - - - - - - Housing & Community Grants - - - - - - Public Safety:

Fire - - - - - - Police - - - - - - Public Works - - - - - - Parks & Recreation - - - - - - Capital Outlay - - - 36 36 - Debt Service:

Principal - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures - 392 (392) 36 325 (289) Excess (Deficiency) of
Revenues Over (Under) Expenditures - 46,513 46,513 (36) 34,212 34, 248

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances -$ 46,513 46,513$ (36)$ 34,212 34,248$ Fund Balances (Deficits) - Beginning of
Year 806,576 593,894
Fund Balances (Deficits) - End of Year 853,089$ 628,106$ Facility Improvements Regional Parks

159

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants - - - - - - License and Permits - - - - - - Fees and Fines - 11,129 11,129 - - - Uses of Money and Property - 1,658 1,658 - 15,066 15,066 Charges for Current Services - - - - - - Miscellaneous - - - - - - Total Revenues - 12,787 12,787 - 15,066 15,066

EXPENDITURES
Current:

General Government - 13 (13) - 125 (125) Community Development - - - - - - Housing & Community Grants - - - - - - Public Safety:

Fire - - - - - - Police - - - - - - Public Works - - - - - - Parks & Recreation - - - - - - Capital Outlay - - - - - - Debt Service:

Principal - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures - 13 (13) - 125 (125) Excess (Deficiency) of
Revenues Over (Under) Expenditures - 12,774 12,774 - 14,941 14, 941

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances -$ 12,774 12,774$ -$ 14,941 14,941$ Fund Balances (Deficits) - Beginning of
Year 27,415 259,082
Fund Balances (Deficits) - End of Year 40,189$ 274,023$ Vehicle Miles Traveled Impact Fee Animal Control Reserve

160

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes -$ -$ -$ 14,309,700$ 18,405,303$ 4,095,603$ Other Taxes - - - 90,100 101,448 11,348 Subventions and Grants - - - 17,224,177 26,661,789 9,437,612 License and Permits - - - 9,400 8,710 (690) Fees and Fines - - - 7,623,500 9,165,240 1,541,740 Uses of Money and Property - 189,580 189,580 1,230,200 7,660,398 6,430,198 Charges for Current Services - - - 6,185,000 6,585,402 400,402 Miscellaneous 90,000 186,153 96,153 293,600 399,594 105,994 Total Revenues 90,000 375,733 285,733 46,965,677 68,987,884 22,022,207

EXPENDITURES
Current:

General Government 308,700 295,238 13,462 744,800 769,680 (24,880) Community Development - - - 109,200 100,226 8,974 Housing & Community Grants - - - 6,727,755 2,906,613 3,821,142 Public Safety: -
Fire - - - 3,407,500 3,419,362 (11,862) Police - - - 5,342,800 5,150,561 192,239 Public Works - - - 2,218,300 2,908,468 (690,168) Parks & Recreation - - - 4,032,400 4,817,068 (784,668) Capital Outlay 1,990,210 1,987,049 3,161 34,012,909 32,252,481 1,760,428 Debt Service: -
Principal - - - 1,066,300 1,066,343 (43) Interest and Fiscal Charges - - - 216,900 212,513 4,387 Total Expenditures 2,298,910 2,282,287 16,623 57,878,864 53,603,315 4,275,549 Excess (Deficiency) of
Revenues Over (Under) Expenditures (2,208,910) (1,906,554) 302,356 ( 10,913,187)$ 15,384,569 26,297,756$

OTHER FINANCING SOURCES (USES)
Transfers In 418,700 8,303,717 7,885,017 1,702,500 9,718,758 8,016,258 Transfers Out - - - (866,700) (1,238,942) (372,242) Total Other Financing Sources (Uses) 418,700 8,303,717 7,885,017 835,800 8,479,816 7,644,016 Net Changes in Fund Balances (1,790,210)$ 6,397,163 8,187,373$ (10,077,387)$ 23,864,385 33,941,772$ Fund Balances (Deficits) - Beginning of
Year 556,295 148,681,479
Fund Balances (Deficits) - End of Year 6,953,458$ 172,545,864$ Baseball Total
161

NON-MAJOR PROPRIETARY FUNDS

162

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

163

Non-Major Proprietary Funds

NON-MAJOR PROPRIETARY FUNDS

CONVENTION CENTER
Established to account for operations of the Convention Center. Revenues are provided by fees charged for the Convention Center and by operating transfers from the General Fund.

AIRPORT
Established to account for the operations of the Visalia Municipal Airport. Revenue is provided by the fees charged to the airport users for the aviation fuel, hangar rentals, and leases of land and buildings, as well as from federal grants for capital assets and projects.

BUILDING SAFETY
Established to account for the operations of the City’s reviewing and checking of building plans from developers, contractors and/or property owners, permitting, and inspection of buildings. Revenue is provided by permit fees.

ANIMAL CONTROL
Established to account for the operations of the City’s animal control services. Revenue is provided by users through fees for licensing, adoptions, vaccinations and shelter related fees.

164

Convention
Center Airport
Building
Safety
Animal
Control Total
ASSETS
Current Assets
Cash and Investments 100$ 2,628,711$ 16,812,581$ 200$ 19,441,592$ Accounts Receivable 458,098 115,527 - 378,009 951,634 Leases Receivable - 434,363 - - 434,363 Supplies - 107,983 - - 107,983 Prepaid Expenses - 28,323 - - 28,323 Total Current Assets 458,198 3,314,907 16,812,581 378,209 20,963,895 Non-Current Assets
Restricted Cash and Investments
Cash Held by City 1,359,214 - - 518,473 1,877,687 Leases Receivable - 4,593,040 - - 4,593,040 Capital Assets
Land 829,047 3,000,590 - - 3,829,637 Construction in Progress 178,815 1,358 - - 180,173 Buildings 22,428,375 6,469,160 - 6,750,891 35,648,426 Improvements Other Than Buildings 5,435,369 13,511,504 - - 18,946,873 Machinery, Equipment and Vehicles 1,979,856 1,093,596 228,804 33,750 3,336,006 Subscription-Based Information Technology (SBITA) - 40,259 2,014,562 24,225 2,079,046 Accumulated Depreciation and Amortization (21,700,309) (13,577,306) (213,511) (1,721,826) (37,212,952) Total Non-Current Assets 10,510,367 15,132,201 2,029,855 5, 605,513 33,277,936 Total Assets 10,968,565 18,447,108 18,842,436 5,983,722 54,241,831

DEFERRED OUTFLOWS OF RESOURCES
Pension Related 624,220 267,979 1,116,495 491,759 2,500,453 Total Deferred Outflows of Resources 624,220 267,979 1,116,495 491,759 2,500,453

LIABILITIES
Current Liabilities
Accounts, Interest and Contracts Payable 254,539 137,371 695,114 29,564 1,116,588 Customer Deposits 2,400 - 22,000 - 24,400 Current Portion of Long-Term Liabilities:

Compensated Absences 55,257 - 27,732 11,010 93,999 Certificates of Participation and Loans 1,014,636 - - 516,413 1,531,049 Liability for SBITA Lease - 10,202 237,580 7,123 254,905 Total Current Liabilities 1,326,832 147,573 982,426 564,110 3,020,941 Non-Current Liabilities
Unearned Revenue - - 12,663 2,283 14,946 Non-current Portion of Long-term Liabilities:

Compensated Absences 81,525 62,506 233,346 92,184 469,561 Certificates of Participation and Loans 1,581,551 - - 1,087,362 2,668,913 Liability for SBITA Lease - 10,461 1,746,867 - 1,757,328 Net Pension Liability 2,677,803 1,149,589 4,789,585 2,109,568 10,726,545 Total Non-Current Liabilities 4,340,879 1,222,556 6,782,461 3,291,397 15,637,293 Total Liabilities 5,667,711 1,370,129 7,764,887 3,855,507 18,658,234

DEFERRED INFLOWS OF RESOURCES
Pension Related 19,379 8,320 34,662 15,267 77,628 Lease Related - 4,882,645 - - 4,882,645 Total Deferred Inflows of Resources 19,379 4,890,965 34,662 15, 267 4,960,273

NET POSITION
Net Investment in Capital Assets 6,554,966 10,518,498 45,408 3,476,142 20,595,014 Restricted for:

Capital Projects 82,024 496,488 114,100 - 692,612 Designated - - - - Unrestricted (Deficit) (731,295) 1,439,007 11,999,874 (871,435) 11,836,151 Total Net Position 5,905,695$ 12,453,993$ 12,159,382$ 2,604,707$ 33,123,777$ Non-Major Funds
Business-Type Activities - Enterprise Funds

CITY OF VISALIA

NON-MAJOR PROPRIETARY FUNDS

COMBINING STATEMENT OF NET POSITION
JUNE 30, 2025

165

CITY OF VISALIA

NON-MAJOR PROPRIETARY FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2025

Convention
Center Airport
Building
Safety
Animal
Control Total

OPERATING REVENUES
Charges for Services 2,273,986$ 2,371,250$ 4,040,108$ 927,085$ 9,612,429$ Operating Grants and Contributions - 64,659 - 86,970 151,629 Total Operating Revenues 2,273,986 2,435,909 4,040,108 1,014,055 9,764,058

OPERATING EXPENSES
Salaries, Wages and Employee Benefits 2,093,294 727,361 2,328,619 1,340,755 6,490,029 Maintenance and Operations 1,572,398 1,444,825 873,609 814,566 4,705,398 Depreciation and Amortization 715,557 276,913 93,126 180,057 1,265,653 Total Operating Expenses 4,381,249 2,449,099 3,295,354 2,335,378 12,461,080 Operating Income (Loss) (2,107,263) (13,190) 744,754 (1,321,323) (2,697,022)

NONOPERATING REVENUES (EXPENSES)
Interest Income 62,772 204,545 879,684 28,639 1,175,640 Interest Expense (119,854) (700) (14,312) (68,585) (203,451) Other Income 18,059 261,129 10,660 5,716 295,564 Total Nonoperating Revenues (Expenses) (39,023) 464,974 876,032 (34,230) 1,267,753 Income (Loss) Before Contributions and Transfers (2,146,286) 451,784 1,620,786 (1,355,553) (1,429,269) Transfers In 3,032,292 - - 1,679,437 4,711,729 Net Contributions and Transfers 3,032,292 - - 1,679,437 4,711,729 Change in Net Position 886,006 451,784 1,620,786 323,884 3,282,460 Net Position - Beginning of Year 5,038,603 12,023,273 10,695,456 2,317,023 30,074,355 Restatement - Change in Accounting Principle (Note 17) (18,914) (21,064) (156,860) (36,200) (233,038) Net Position - Beginning, as Restated 5,019,689 12,002,209 10,538,596 2,280,823 29,841,317 Net Position - End of Year 5,905,695$ 12,453,993$ 12,159,382$ 2,604,707$ 33,123,777$ Business-Type Activities - Enterprise Funds
Non-Major Funds

166

Convention
Center Airport Building Safety Animal Control T otal

CA SH FLOWS FROM OPERA TING A CTIV ITIES
Cash Received from Customers or Other Funds 2,093,448$ 2,859,457$ 4,050,768$ 1,012,429$ 10,016,102$ Cash Payments to Employees for Services (2,105,565) (908,772) (2,295,377) (1,203,618) (6,513,332) Cash Payments to Suppliers for Services (1,538,377) (1,611,684) (539,414) (888,839) (4,578,314) Net Cash Provided (Used) by Operating Activities (1,550,494) 339,001 1,215,977 (1,080,028) (1,075,544)

CA SH FLOWS FROM NONCA PITA L

FINA NCING A CTIV ITIES
Transfers In 3,032,292 - - 1,679,437 4,711,729 Net Cash Provided by Noncapital
Financing Activities 3,032,292 - - 1,679,437 4,711,729

CA SH FLOWS FROM CA PITA L A ND RELA TED

FINA NCING A CTIV ITIES
Acquisition of Capital Assets (178,815) (14) - - (178,829) Long-Term Debt Payments - Principal (963,657) - - (499,048) (1,462,705) Long-Term Debt Payments - Interest (132,062) (700) (14,312) (68,585) (215,659) Net Cash (Used) by Capital and Related
Financing Activities (1,274,534) (714) (14,312) (567,633) (1,857,193)

CA SH FLOWS FROM INV ESTING A CTIV ITIES
Interest Earnings 62,772 204,545 879,684 28,639 1,175,640 Net Cash Provided by Investing Activities 62,772 204,545 879,684 28,639 1,175,640 Net Increase in Cash
and Investments 270,036 542,832 2,081,349 60,415 2,954,632 Cash and Investments - Beginning of Year 1,089,278 2,085,879 14,731,232 458,258 18,364,647 Cash and Investments - End of Year 1,359,314$ 2,628,711$ 16,812,581$ 518,673$ 21,319,279$ Consisting of:

Unrestricted 100$ 2,628,711$ 16,812,581$ 200$ 19,441,592$ Restricted 1,359,214 - - 518,473 1,877,687 Total Cash and Investments 1,359,314$ 2,628,711$ 16,812,581$ 518,673$ 21,319,279$ Reconciliation of Operating Income (Loss) to
Cash Flow s from Operating Activities:

Operating Income (Loss) (2,107,263)$ (13,190)$ 744,754$ (1,321,323)$ (2,697,022)$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Flow s from Operating Activities:

Depreciation and Amortization 715,557 276,913 93,126 180,057 1,265,653 Operating income and cash flow category
classification differences 18,059 261,129 10,660 5,716 295,564 Net Change in Assets and Liabilities:

Accounts and Interest Receivable (198,597) 162,419 - (7,342) (43,520) Supplies - (64,888) - - (64,888) Prepaid Expenses - 7,198 - - 7,198 Accounts Payable and Contract Payable 48,996 (99,277) (1,634,719) 3,806 (1,681,194) Deferred Outflow s Pensions 204,362 62,014 (76,851) (30,274) 159,251 Deferred Inflow s Pensions & Leases (42,702) (272,551) 371,850 116,075 172,672 Net Pension Liability (195,165) 5,394 (370,998) 2,008 (558,761) Unearned Revenue - - 6,467 (72,317) (65,850) Compensated Absences 21,234 23,732 109,241 49,328 203,535 Other Liability - (9,892) 1,984,447 (5,762) 1,968,793 Customer Deposits (14,975) - (22,000) - (36,975) Net Cash Provided (Used) by Operating Activities (1,550,494)$ 339,001$ 1,215,977$ (1,080,028)$ (1,075,544)$ Noncash investing, capital and financing activities
SBITA liability for the acquisition of
r
ight-to-use assets 2,014,562$ 2,014,562$
Total noncash investing, capital and financing activities 2,014,562$ 2,014,562$ Business-Type Activities - Enterprise Funds
Non-Major Funds

CITY OF VISALIA

NON-MAJOR PROPRIETARY FUNDS

COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2025

167

INTERNAL SERVICE FUNDS

168

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

169

Internal Service Funds

INTERNAL SERVICE FUNDS

Internal Service Funds are used to finance and account for 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 No. 34 does not extend to internal service funds because they do not do business with outside parties. GASB Statement No. 34 requires that for the Statement of Activities, the net revenue 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 still presented in total in the Fund financial statements, which includes the funds listed below.

FLEET SERVICES
Established to account for the maintenance and fueling of vehicles and related equipment in use by the City.

VEHICLE REPLACEMENT
Established to account for the acquisition of City vehicles. Replacement vehicles are purchased through this fund.

New vehicles added to this fleet (not replacing an existing one) are considered Contributed Capital to the Vehicle Replacement fund.

INFORMATION SERVICES
Established to account for the acquisition, maintenance and upgrade of the City’s computer operations.

RISK MANAGEMENT
Established to account for the self -insured and purchased insurance for the City’s various types of insurance including liability, workers’ compensation, unemployment, property, and employee bonds.

HEALTH BENEFITS
Established to account for the self-insured and purchased insurance for the City’s various types of employee health insurance.

COMPENSATED ABSENCES
Established to account for the long-term portion of the compensated absences liability in the governmental funds.

BUILDING MAINTENANCE
Established to account for the repairs and maintenance for the City’s owned/occupied buildings.

170

CITY OF VISALIA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION
JUNE 30, 2025

Fleet
Services
Vehicle
Replacement
Information
Services
Risk
Management
ASSETS
Current Assets
Cash and Investments 609,926$ 13,913,748$ 7,819,676$ 15,228,199$ Accounts and Interest Receivables 7,854 - - 3,926 Supplies 1,186,865 - - - Total Current Assets 1,804,645 13,913,748 7,819,676 15,232,125 Non-Current Assets
Restricted Cash and Investments
Cash Held by Trustee - - - 456,051 Capital Assets
Building 654,910 - - - Improvements Other Than Buildings 211,545 - 7,240 - Machinery, Equipment and Vehicles 473,900 27,225,974 15,356,683 - Construction in Progress 1,614 3,449,889 66,515 - Right-to-use subscription asset (SBITA) 119,665 - 1,283,519 - Accumulated Depreciation and Amortization (1,179,794) (16,144,354) (11,646,029) - Total Non-Current Assets 281,840 14,531,509 5,067,928 456,051 Total Assets 2,086,485 28,445,257 12,887,604 15,688,176

DEFERRED OUTFLOWS OF RESOURCES
Pension Related 656,326 - 893,807 242,980 Total Deferred Outflows of Resources 656,326 - 893,807 242,980

LIABILITIES
Current Liabilities
Accounts, Interest, and Contracts Payable 325,492 60,411 2,416,309 Accrued Personnel Costs - - - - Current Portion of Long-Term Liabilities:

Compensated Absences - - - - Liability for SBITA Lease (Note 7) 28,092 - 145,483 - Liability for Self-Insurance Claims - - - 836,897 Total Current Liabilities 353,584 - 205,894 3,253,206 Non-Current Liabilities
Non-current Portion of Long-term Liabilities:

Compensated Absences - - - - Liability for SBITA Lease (Note 7) 66,075 - 187,631 - Liability for Self-Insurance Claims - - - 11,183,382 Net Pension Liability 2,815,540 - 3,834,292 1,042,347 Total Non-Current Liabilities 2,881,615 - 4,021,923 12,225,729 Total Liabilities 3,235,199 - 4,227,817 15,478,935

DEFERRED INFLOWS OF RESOURCES
Pension Related 20,377 - 27,749 7,544 Total Deferred Inflows of Resources 20,377 - 27,749 7,544

NET POSITION
Net Investment in Capital Assets 162,175 14,531,509 3,784,409 - Restricted - 20,013 26,276 456,051 Unrestricted (Deficit) (674,940) 13,893,735 5,715,160 (11,374) Total Net Position (Deficit) (512,765)$ 28,445,257$ 9,525,845$ 444,677$

171

INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION (Continued)
JUNE 30, 2025

CITY OF VISALIA
Health
Benefits
Compensated
Absences
Building
Maintenance Totals
ASSETS
Current Assets
C
ash and Investments 7,100,305$ 11,333,795$ 808,887$ 56,814,536$ Accounts and Interest Receivables 64,377 - - 76,157 Supplies - - - 1,186,865 Total Current Assets 7,164,682 11,333,795 808,887 58,077,558 Non-Current Assets
Restricted Cash and Investments
Cash Held by Trustee 60,700 - - 516,751 Capital Assets
Building - - - 654,910 Improvements Other Than Buildings - - - 218,785 Machinery, Equipment and Vehicles - - - 43,056,557 Construction in Progress - - - 3,518,018 Right-to-use subscription asset (SBITA) - - - 1,403,184 Accumulated Depreciation and Amortization - - - (28,970,177) Total Non-Current Assets 60,700 - - 20,398,028 Total Assets 7,225,382 11,333,795 808,887 78,475,586

DEFERRED OUTFLOWS OF RESOURCES
Pension Related - - - 1,793,113 Total Deferred Outflows of Resources - - - 1,793,113

LIABILITIES
Current Liabilities
Accounts, Interest, and Contracts Payable 82,366 - - 2,884,578 Accrued Personnel Costs 15,512 - - 15,512 Current Portion of Long-Term Liabilities:

Compensated Absences - 1,129,292 - 1,129,292 Liability for SBITA Lease (Note 7) - - - 173,575 Liability for Self-Insurance Claims 101,800 - - 938,697 Total Current Liabilities 199,678 1,129,292 - 5,141,654 Non-Current Liabilities
Non-current Portion of Long-term Liabilities:

Compensated Absences - 10,204,503 - 10,204,503 Liability for SBITA Lease (Note 7) - - - 253,706 Liability for Self-Insurance Claims - - - 11,183,382 Net Pension Liability - - - 7,692,179 Total Non-Current Liabilities - 10,204,503 - 29,333,770 Total Liabilities 199,678 11,333,795 - 34,475,424

DEFERRED INFLOWS OF RESOURCES
Pension Related - - - 55,670 Total Deferred Inflows of Resources - - - 55,670

NET POSITION
Net Investment in Capital Assets - - - 18, 478,093
Restricted 60,700 - - 563,040 Unrestricted (Deficit) 6,965,004 - 808,887 26,696,472 Total Net Position (Deficit) 7,025,704$ -$ 808,887$ 45,737,605$

172

FOR THE YEAR ENDED JUNE 30, 2025

CITY OF VISALIA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES, AND

CHANGES IN NET POSITION
Fleet
Services
Vehicle
Replacement
Information
Services
Risk
Management

OPERATING REVENUES
Service Charges and Fees 9, 313,229$ 1,662,225$ 2,696,913$ 7,398,884$

OPERATING EXPENSES
Salaries, Wages and Employee Benefits 1,905,424 - 1,891,172 419,431 Maintenance and Operations 7,018,013 38,178 1,326,733 705,506 Insurance Premiums and Loss Provisions - - - 11,985,813 Depreciation and Amortization 38,851 1,599,217 1,191,379 - Total Operating Expenses 8,962,288 1,637,395 4,409,284 13,110,750 Operating Income (Loss) 350,941 24,830 (1,712,371) (5,711,866)

NONOPERATING REVENUES (EXPENSES)
Interest Income 194 729,004 410,876 1,020,556 Interest (Expense) (36,039) - (4,000) - Other Income 9,417 47,003 816,293 591,553 Other (Expenses) - (105,547) - - Total Nonoperating Revenues (Expenses) (26,428) 670,460 1,223,169 1,612,109 Income (Loss) Before Contributions and Transfers 324,513 695,290 (489,202) (4,099,757)

CONTRIBUTIONS AND TRANSFERS
Grants and Contributions - 1,592,624 277,126 - Transfers In - - - - Transfers Out (106,120) (24,082) (122,916) (5,017,941) Net Contributions and Transfers (106,120) 1,568,542 154,210 (5,017,941) CHANGE IN NET POSITION 218,393 2,263,832 (334,992) (9,117,698)

NET POSITION (DEFICIT)
Net Position - Beginning of Year (731,158) 26,181,425 9,860,837 9,562,375 - - - - Net Position - Beginning of Year, As Restated (731,158) 26,181,425 9,860,837 9,562,375 Net Position - End of Year (512,765)$ 28,445,257$ 9,525,845$ 444,677$ Restatement - Change in Accounting Principle

173

CITY OF VISALIA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN NET POSITION (Continued)
FOR THE YEAR ENDED JUNE 30, 2025
Health
Benefits
Compensated
Absences
Building
Maintenance Totals

OPERATING REVENUES
Service Charges and Fees 16,548,855$ -$ -$ 37,620,106$

OPERATING EXPENSES
Salaries, Wages and Employee Benefits - - - 4,216,027 Maintenance and Operations 380,326 2,970 371 9,472,097 Insurance Premiums and Loss Provisions 15,613,352 - - 27,599,165 Depreciation and Amortization - - - 2,829,447 Total Operating Expenses 15,993,678 2,970 371 44,116,736 Operating Income (Loss) 555,177 (2,970) (371) (6,496,630)

NONOPERATING REVENUES (EXPENSES)
Interest Income 369,902 355,778 44,474 2,930,784 Interest (Expense) - - - (40,039) Other Income 6,310 - - 1,470,576 Other (Expenses) - - - (105,547) Total Nonoperating Revenues (Expenses) 376,212 355,778 44,474 4,255,774 Income (Loss) Before Contributions and Transfers 931,389 352,808 44,103 (2,240,856)

CONTRIBUTIONS AND TRANSFERS
Grants and Contributions - - - 1,869,750 Transfers In - 4,694,231 - 4,694,231 Transfers Out - (352,808) - (5,623,867) Net Contributions and Transfers - 4,341,423 - 940,114 CHANGE IN NET POSITION 931,389 4,694,231 44,103 (1,300,742)

NET POSITION (DEFICIT)
Net Position - Beginning of Year 6,094,315 - 764,784 51,732,578 - (4,694,231) - (4,694,231) Net Position - Beginning of Year, As Restated 6,094,315 (4,694,231) 764,784 47,038,347 Net Position - End of Year 7,025,704$ -$ 808,887$ 45,737,605$ Restatement - Change in Accounting Principle

174

Fleet Vehicle Information Risk
Services Replacement Services Management

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 9,322,895$ 1,894,488$ 3,513,206$ 7,986,511$ Cash Payments to Suppliers for Services (6,762,294) (143,725) (1,437,962) (7,159,372) Cash Payments to Employees for Services (1,775,147) - (1,835,137) (545,348) Net Cash Provided by (Used in) Operating Activities 785,454 1,750,763 240,107 281,791

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers In - - - - Transfers Out (106,120) (24,082) (122,916) (5,017,941) Net Cash Provided by Noncapital
Financing Activities (106,120) (24,082) (122,916) (5,017,941)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of Capital Assets (57,761) (4,290,020) (331,551) - Grants and Contributions - 1,592,624 277,126 - Interest Expense (36,039) - (4,000) - Net Cash (Used in) Capital
and Related Financing Activities (93,800) (2,697,396) (58,425) -

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Earnings 194 729,004 410,876 1,020,556 Net Cash Provided by Investing Activities 194 729,004 410,876 1,020,556 Net Increase (Decrease) in Cash and
Cash Investments 585,728 (241,711) 469,642 (3,715,594) Cash and Cash Investments at Beginning of Year 24,198 14,155,459 7,350,034 19,399,844 Cash and Cash Investments at End of Year 609,926$ 13,913,748$ 7,819,676$ 15,684,250$ Consisting of:

Unrestricted 609,926$ 13,913,748$ 7,819,676$ 15,228,199$ Restricted - - - 456,051 Total Cash and Investments 609,926$ 13,913,748$ 7,819,676$ 15,684,250$ Reconciliation of Operating Income (Loss) to
Net Cash Provided by (Used in) Operating Activities:

Operating Income (Loss) 350,941$ 24,830$ (1,712,371)$ (5,711,866)$ Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided by (Used in) Operating Activities:

Depreciation and amortization 38,851 1,599,217 1,191,379 - Operating income and cash flow category
classification differences 9,417 (58,544) 816,293 591,553 Net Change in Assets and Liabilities:

Accounts and Interest Receivable 249 - - (3,926) Supplies 326,237 - - - Prepaid Expenses - - - - Accounts Payable and Contract Payable (108,290) 185,260 (444,343) 2,320,645 Deferred Outflows Pension 171,958 - 251,712 123,949 Deferred Inflow Pension (41,681) - (58,078) (19,948) Accrued Personnel Costs - - - - Compensated Absences - - - - Other Liability 94,167 - 333,114 - Pension Liability (56,395) - (137,599) (229,918) Liability for Self-Insurance Claims - - - 3,211,302 Net Cash Provided by (Used in) Operating Activities 785,454$ 1,750,763$ 240,107$ 281,791$ Noncash investing, capital and financing activities
SBITA liability for the acquisition of
right-to-use assets 119,665$ 479,758$
Total noncash investing, capital and financing activities 119,665$ 479,758$

CITY OF VISALIA

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025

175

Health Compensated Building
Benefits Absences Maintenance Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 16,508,622$ 5,215,792$ -$ 44,441,514$ Cash Payments to Suppliers for Services (14,867,948) (2,970) (371) (30,374,642) Cash Payments to Employees for Services - - - (4,155,632) Net Cash Provided by (Used in) Operating Activities 1,640,674 5,212,822 (371) 9,911,240

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers In - 4,694,231 - 4,694,231 Transfers Out - (352,808) - (5,623,867) Net Cash Provided by Noncapital
Financing Activities - 4,341,423 - (929,636)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of Capital Assets - - - (4,679,332) Grants and Contributions - - - 1,869,750 Interest Expense - - - (40,039) Net Cash (Used in) Capital
and Related Financing Activities - - - (2,849,621)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 369,902 355,778 44,474 2,930,784 Net Cash Provided by Investing Activities 369,902 355,778 44,474 2,930,784 Net Increase (Decrease) in Cash and
Cash Investments 2,010,576 9,910,023 44,103 9,062,767 Cash and Cash Investments at Beginning of Year 5,150,429 1,423,772 764,784 48,268,520 Cash and Cash Investments at End of Year 7,161,005$ 11,333,795$ 808,887$ 57,331,287$ Consisting of:

Unrestricted 7,100,305$ 11,333,795$ 808,887$ 56,814,536$ Restricted 60,700 - - 516,751 Total Cash and Investments 7,161,005$ 11,333,795$ 808,887$ 57,331,287$ Reconciliation of Operating Income (Loss) to
Net Cash Provided by (Used in) Operating Activities:

Operating Income (Loss) 555,177$ (2,970)$ (371)$ (6,496,630)$ Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided by (Used in) Operating Activities:

Depreciation and amortization - - - 2,829,447 Operating income and cash flow category
classification differences 6,310 - - 1,365,029 Net Change in Assets and Liabilities:

Accounts and Interest Receivable (46,543) - - (50,220) Supplies - - - 326,237 Prepaid Expenses 1,072,769 - - 1,072,769 Accounts Payable and Contract Payable 35,088 - - 1,988,360 Deferred Outflows Pension - - - 547,619 Deferred Inflow Pension - - - (119,707) Accrued Personnel Costs 9,673 9,673
Compensated Absences - 5,215,792 - 5,215,792 Other Liability - - - 427,281 Pension Liability - - - (423,912) Liability for Self-Insurance Claims 8,200 - - 3,219,502 Net Cash Provided by (Used in) Operating Activities 1,640,674$ 5,212,822$ (371)$ 9,911,240$ Noncash investing, capital and financing activities
SBITA liability for the acquisition of
right-to-use assets 599,423$
Total noncash investing, capital and financing activities 599,423$

CITY OF VISALIA

COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS (Continued)
FOR THE YEAR ENDED JUNE 30, 2025

176

177

CUSTODIAL FUNDS

178

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2025

179

Custodial Funds

CUSTODIAL FUNDS

GASB Statement No. 8 4 requires that Custodial Funds be presented separately from the government -wide and Fund financial statements.

Custodial funds account for resources held by the City in custodial capacity for individuals, other governmental units and non-public organizations.

Property and Business Improvement District #5 (PBID)
The City collects the district assessments on real property in the district to improve the district. The effective dates for the district are January 1, 2020 through December31, 2029.

Village West Improvement District (Village West)
The City collects the district assessments on real property in the district to repay bonds for the repair of a private street.

Orchard Walk Underground Utilities District (Orchard Walk) The City collects the district assessments on real property in the district to pay for underground utilities.

Atwood Water Main Assessment District (Atwood)
The City collects the district assessment s on real property in the district to repay bonds issued for the connection to the Cal Water main extension.

Laura Water Main Assessment District (Laura)
The City collects the district assessment s on real property in the district to repay bonds issued for the connection to the Cal Water main extension.

Visalia Tourism & Marketing District (VTMD)
The City collects the district assessments on room nights in the district to pay for promotion of travel and tourism specific to Visalia.

180

PBID # 5 Village West O rchard Walk Atwood Laura VTMD Total
Custodial
F
unds
ASSETS
Cash and Investments (Note 3) 546, 497$ 3$ 80,964$ -$ -$ 85,622$ 713,086$ Accounts Receivable - - - 91,430 64,548 - 155,978 District Assessment Receivable 24,649 - - 1,224 - - 25,873 Total Assets 571,146 3 80,964 92,654 64,548 85,622 894,937

LIABILITIES
Accounts, Interest, and Contracts Payable - - - - - 81,630 81,630 Deposits - - - 20,000 21,124 - 41,124 Due to City - - - 67,543 38,280 - 105,823 Total Liabilities - - - 87,543 59,404 81,630 228,577

NET POSITION (DEFICIT)
Restricted for:

Individuals, Organizations, and Other Governments 571,146$ 3$ 80,964$ 5,111$ 5,144$ 3,992$ 666,360$

CITY OF VISALIA

COMBINING STATEMENTS OF FIDUCIARY NET POSITION

CUSTODIAL FUNDS
JUNE 30, 2025

181

PBID # 5 Village West Orchard Walk Atwood Laura V TMD Total
Custodial
Funds
Additions
Use of Money and Property 34,929$ 117$ 3,706$ -$ -$ -$ 38,752$ Revenue from District Assessments 447,796 - - - - 566,795 1,014,591 Miscellaneous Revenue 226,715 - 52,062 12,241 7,780 - 298,798 Total Additions 709,440 117 55,768 12,241 7,780 566,795 1,352,141 Deductions
Obligation Requirements
Interest on Bonds and Notes Payable - - 7,062 2,544 1,613 - 11,219 Total Obligation Requirements - - 7,062 2,544 1,613 - 11,219 Administrative Expenses 738 - 261 110 108 5,669 6,886 Total Administrative Expenses 738 - 261 110 108 5,669 6,886 Distribution of District Assessment 665,000 - - - - 644,337 1,309,337 Principal on Bonds and Notes Payable - - 45,000 9,587 6,079 - 60,666 Total Distribution of District Assessment 665,000 - 45,000 9,587 6,079 644,337 1,370,003 Total Deductions 665,738 - 52,323 12,241 7,800 650,006 1,388,108 Change in Net Position 43,702 117 3,445 - (20) (83,211) (35,967) Net Position - Beginning of Year 527,444 (114) 77,519 5,111 5,164 87,203 702,327 Net Position (Deficit) - End of Year 571,146 $ 3$ 80,964$ 5,111$ 5,144$ 3,992$ 666,360$

CITY OF VISALIA

COMBINING STATEMENTS OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS
FOR THE YEAR ENEDED JUNE 30, 2025

182

183

Statistical
Section
(Unaudited)

184

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2025

185

Statistical Section
Statistical Section

This part of the City of Visalia’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 says about the City’s overall financial health.

Financial Trends

These schedules contain trend information to help the reader understand how the City of Visalia’s financial performance and well-being have changed over time.

Revenue Capacity

These schedules contain information to help the reader assess the City of Visalia’s significa nt revenue sources, property tax and sales tax.

Debt Capacity

These schedules present information to help the reader assess the affordability of the City of Visalia’s current levels of outstanding debt and the City of Visalia’s ability to issue additional debt in the future.

Demographic and Economic Information

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City of Visalia’s financial activities take place.

Operating Information

These schedules contain service and infrastructure data to help the reader understand how the information in the City of Visalia’s financial report relates to the services the City of Visalia provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Report for the relevant year.

186

2016 2017 2 018 2019
Governmental Activities:

Net Investment in Capital Assets 288,048$ 312,172$ 325,420$ 324,799$ Restricted 56,417 56,984 69,608 79,763 Unrestricted 12,676 17,877 22,633 35,203 Total Governmental Activities Net Position 357,141$ 387,033$ 417,661$ 439,765$ Business-type Activities:

Net Investment in Capital Assets 242,950$ 266,867$ 271,696$ 269,444$ Restricted 45,202 16,732 12,785 11,368 Unrestricted 24,631 63,975 89,290 93,039 Total Business-type Activities Net Position 312,783$ 347,574$ 373,771$ 373,851$ Primary Government:

Net Investment in Capital Assets 530,998$ 579,039$ 597,116$ 594,243$ Restricted 101,619 73,716 82,393 91,131 Unrestricted (Deficit) 37,307 81,852 111,923 128,242 Total Primary Government Net Position 669,924$ 734,607$ 791,432$ 813,616$

CITY OF VISALIA

NET POSITION BY COMPONENT

ACCRUAL BASIS OF ACCOUNTING

LAST TEN FISCAL YEARS
(In Thousands)
Fiscal Year

187

2020 2021 2022 2023 2024 2025
335,920$ 341,796$ 344,300$ 367,404$ 391,773$ 422,591$ 94,930 130,726 159,684 182,830 254,246 282,162 38,351 45,014 8 1,583 97,330 69,653 93,671 469,201$ 517,536$ 585,567$ 647,564$ 715,672$ 798,424$ 270,985$ 277,874$ 276,505$ 272,712$ 275,042$ 279,488$ 20,325 12,887 10,995 16,765 11,479 18,851 104,952 126,266 141,742 152,362 171,661 175,622 396,262$ 417,027$ 429,242$ 441,839$ 458,182$ 473,961$ 606,905$ 619,670$ 620,805$ 640,116$ 666,815$ 702,079$ 115,255 143,613 170,679 199,595 265,725 301,013 143,303 171,280 223,325 249,692 241,314 269,293 865,463$ 934,563$ 1,014,809$ 1,089,403$ 1,173,854$ 1,272,385$ Fiscal Year

188

2016 2017 2018 2019
Expenses:

Governmental Activities:

General Government 4,262$ 3,653$ 5,778$ 4,951$ Community Development 4,768 3,570 2,028 6,098 Housing & Community Grants - - - - Public Safety
Police 31,182 34,737 38,720 39,996 Fire 15,331 16,948 16,881 17,371
Public Works 24,526 19,270 19,579 15,155 Parks & Recreation 799 3,988 4,820 5,540 Community Services - - - - Interest on Long-Term Debt 702 561 508 471 Total Governmental Activities Expenses 81,570 82,727 88,314 89,582 Business-type Activities:

Convention Center 5,822 5,525 5,517 4,952 Airport 2,219 1,999 2,017 2,199 Valley Oaks Golf 2,502 2,426 1,571 - Wastewater and Storm
Sewer Maintenance 19,836 23,845 18,488 21,031 Solid Waste 16,309 17,422 18,847 24,168 Transit 14,772 14,726 18,360 20,408 Baseball 342 329 354 350 Animal Control 1,881 2,490 1,993 1,908 Building Safety 2,306 3,103 3,303 3,303 Total Business-Type Activities Expenses 65,989 71,865 70,450 78,319 Total Primary Government Expenses 147,559 154,592 158,764 167,901 Program Revenues:

Governmental Activities:

Charges for Services:

General Government 653 717 794 1,247 Community Development 2,142 2,122 1,955 1,788 Housing & Community Grants - - - - Public Safety
Police 2,804 2,716 2,636 3,055 Fire 1,256 1,492 1,875 1,678 Public Works 10,011 10,736 11,344 12,286 Parks & Recreation 3,468 3,321 3,509 4,140 Community Services - - - - Operating Grants and Contributions 3,660 3,118 2,619 2,648 Capital Grants and Contributions 9,625 14,635 9,206 12,022 Total Governmental Activities
Program Revenues 33,619$ 38,857$ 33,938$ 38,864$ Fiscal Year

CITY OF VISALIA

CHANGES IN NET POSITION

ACCRUAL BASIS OF ACCOUNTING

LAST TEN FISCAL YEARS
(In Thousands)
In 2020 the City seperated the Housing & Community Grants from Community Development.

In 2020 the City renamed the Parks & Recreation department to Community Services Department.

In 2024 the Ci ty renamed the Communi ty Servi ces Department to the Parks & Recreati on Department.

189

2020 2021 2 022 2023 2024 2025
7,404$ 6 ,883$ 2,237$ 7,009$ 6,393$ 7,331$ 2,477 2 ,741 (3,942) 3,388 12,963 8,363 1,667 2 ,751 2,182 2,936 13,395 11,882 44,992 4 4,431 41,081 49,059 53,384 62,253 19,000 1 9,745 20,380 22,699 24,442 26,079 20,424 1 2,224 19,717 19,949 12,937 20,372 - - - - 14,813 18,002 12,146 1 1,271 14,827 14,074 - - 450 4 01 362 370 362 324 108,560 1 00,447 96,844 119,484 138,689 154,606 4,300 2 ,360 1,180 4,675 4,108 4,612 2,127 3 ,119 2,545 2,755 2,359 2,502 - - - - - - 25,263 2 5,541 28,133 28,439 31,204 38,148 18,963 1 9,212 21,658 20,938 22,946 26,353 17,837 1 7,263 19,791 21,496 19,773 27,773 221 2 43 - - - - 2,003 1 ,927 1,935 1,970 2,439 2,482 3,490 3 ,411 3,099 3,742 3,751 3,407 74,204 7 3,076 78,341 84,015 86,580 105,277 182,764 1 73,523 175,185 203,499 225,269 259,883 896 1 ,110 1,381 1,154 1,181 1,821 1,283 8 71 1,206 782 1,837 3,820 23 2 2 22 39 68 67 3,126 2 ,953 2,818 2,983 4,335 4,756 1,620 1 ,654 2,142 1,960 2,346 2,801 10,459 1 1,303 15,791 12,357 9,220 15,776 - - - - 9,418 10,493 7,778 7 ,957 10,395 9,815 - - 5,083 6 ,064 6,269 7,728 20,302 30,841 11,765 1 2,148 10,618 14,873 14,271 22,448 42,033$ 4 4,082$ 50,642$ 51,691$ 62,978$ 92,823$ Fiscal Year

190

(Continued)

2016 2017 2018 2019
Business-Type Activities:

Charges for Services:

Convention Center 3,587$ 3,483$ 3,657$ 2,967$ Airport 1,925 1,710 1,817 1,701 Valley Oaks Golf 2,405 2,372 1,337 - Wastewater and Storm
Sewer Maintenance 26,033 26,822 27,060 28,057 Solid Waste 18,852 19,831 20,216 19,225 Transit 6,004 4,969 5,055 5,000 Baseball 18 51 68 50 Animal Control 430 487 441 573 Building Safety 3,873 3,741 3,465 3,959 Operating Grants and Contributions 4,183 14,050 16,499 12,987 Capital Grants and Contributions 17,291 21,188 12,160 5,093 Total Business-Type Activities
Program Revenues 84,601 98,704 91,775 79,612 Total Primary Government
Program Revenues 118,220 137,561 125,713 118,476 Net Revenues (Expenses):

Governmental Activities (47,951) (43,870) (54,376) (50,718) Business-Type Activities 18,612 26,839 21,325 1,293 Total Net Revenues (Expenses) (29,339) (17,031) (33,051) (49,425) General Revenues and Other Changes in Net Position:

Governmental Activities:

Taxes:

Sales Taxes 36,145 44,574 54,104 58,561 Property Taxes 26,810 22,429 23,687 25,076 Transient Occupancy Taxes - - - - Franchise Taxes - - - - Business License Taxes - - - - Other Taxes 7,638 7,800 8,341 8,663 Investment Earnings 725 1,074 1,409 4,064 Gain from Sale of Capital Assets 7 3 1 - Miscellaneous 2,563 1,944 1,504 1,704 Transfers and Extraordinary Items (4,138) (3,869) (4,140) (3,785) Total Governmental Activities 69,750 73,955 84,906 94,283 Business-Type Activities:

Investment Earnings 576 690 872 4,024 Miscellaneous 3,439 3,478 3,431 2,344 Transfers 4,138 3,869 4,140 3,785 Total Business-Type Activities 8,153 8,037 8,443 10,153 Total Primary Government 77,903 81,992 93,349 104,436 Changes in Net Position:

Governmental Activities 21,799 30,085 30,530 43,565 Business-Type Activities 26,765 34,876 29,768 11,446 Total Primary Government 48,564$ 64,961$ 60,298$ 55,011$

CITY OF VISALIA

CHANGES IN NET POSITION

ACCRUAL BASIS OF ACCOUNTING

LAST TEN FISCAL YEARS
(In Thousands)
Fiscal Year

191

2020 2021 2022 2023 2024 2025
1,882$ 505$ 1,547$ 1,770$ 2,079$ 2,274$ 1,616 1,775 2,313 2,282 2,400 2,371 - - - - - - 27,479 27,744 30,975 30,013 32,164 33,890 19,457 20,564 21,574 21,505 23,585 23,470 5,081 3,623 5,161 5,838 5,434 6,297 4 - - - - - 580 646 636 564 632 927 4,520 4,934 5,771 5,133 3,490 4,040 15,949 15,455 14,030 16,395 9,364 16,840 7,650 12,093 7,045 2,965 5,354 10,668 84,218 87,339 89,052 86,465 84,502 100,777 126,251 131,421 139,694 138,156 147,480 193,600 (66,527) (56,365) (46,202) (67,793) (75,711) (61,783) 10,014 14,263 10,711 2,450 (2,078) (4,500) (56,513) (42,102) (35,491) (65,343) (77,789) (66,283) 60,351 70,926 82,151 85,969 85,984 85,140 26,297 27,875 29,810 31,727 34,476 37,244 - - - 4,533 4,790 5,002 - - - 3,707 4,017 3,233 - - - 3,752 3,513 3,562 7,987 9,275 10,714 - - - 4,614 1,311 (5,351) 3,711 14,735 19,083 - - - - - - 1,387 1,056 1,196 1,023 925 1,146 (4,489) (4,018) (3,836) (4,894) (4,621) (5,182) 96,147 106,425 114,684 129,528 143,819 149,228 4,345 674 (5,026) 2,185 10,114 13,061 2,939 1,810 3,356 3,068 3,687 2,939 4,489 4,018 3,836 4,894 4,621 5,182 11,773 6,502 2,166 10,147 18,422 21,182 107,920 112,927 116,850 139,675 162,241 170,410 29,620 50,060 68,482 61,735 68,108 87,446 21,787 20,765 12,876 12,597 16,343 16,681 51,407$ 70,825$ 81,358$ 74,332$ 84,451$ 104,127$ Fiscal Year

192

2016 2017 2018 2019
General Fund:

Nonspendable 357$ 1,346$ 1,365$ 1,125$ Restricted - 1,193 - - Committed 28,018 19,805 21,921 15,344 Assigned 18,781 21,857 24,981 25,215 Unassigned 4,787 9,612 10,214 9,753 Total General Fund 51,943 53,813 58,481 51,437 All Other Governmental Funds:

Nonspendable - 47 815 - Restricted 50,857 51,465 54,253 68,188 Committed 15,903 9,582 18,233 31,924 Assigned 1,243 1,243 1,632 1,632 Unassigned (Deficit) (11,627) (5,393) (6,005) (3,925) Total All Other Governmental Funds 56,376 56,944 68,928 97,819 Total Governmental Fund Balance 108,319$ 110,757$ 127,409$ 149,256$ Fiscal Year

CITY OF VISALIA

FUND BALANCES OF GOVERNMENTAL FUNDS

MODIFIED ACCRUAL BASIS OF ACCOUNTING

LAST TEN FISCAL YEARS
(In Thousands)

193

2020 2021 2022 2023 2024 2025
678$ 3,480$ 1,564$ 3,498$ 2,138$ 1,974$ - - - - - 18,334 16,239 16,609 17,559 20,805 23,610 25,403 30,278 27,629 27,939 27,968 33,162 38,238 5,497 5,428 6,731 3,142 186 2,655 52,692 53,146 53,793 55,413 59,096 86,604 - - - - - - 91,088 144,003 210,248 189,403 215,861 240,679 30,259 36,280 14,099 57,720 75,785 81,958 1,168 848 301 1,654 1,687 1,795 (4,475) (31) (989) (737) (384) (85) 118,040 181,100 223,659 248,040 292,949 324,347 170,732$ 234,246$ 277,452$ 303,453$ 352,045$ 410,951$ Fiscal Year

194

2016 2017 2018 2019
Revenues:

Sales Tax 36,144$ 4 4,575$ 54,104$ 58,561$ Property Tax 26,880 2 2,370 23,694 25,048 Other Taxes 7,608 7 ,681 8,272 8,619 Subventions and Grants 13,286 1 4,160 10,355 13,505 Li censes and Permi ts 87 8 1 88 95 Fees and Fi nes 10,520 1 0,552 10,991 12,267 Use of Money and Property 1,133 1 ,522 1,843 4,470 Charges for Current Services 7,014 7 ,859 8,367 8,692 Misce llane ous 2,477 2 ,578 2,260 2,999 Total Revenues 105,149 1 11,378 119,974 134,256 Expenditures
Current:

General Government 3,102 3 ,335 3,913 3,049 Community Development 5,119 5 ,245 5,272 6,052 Communi ty Servi ces 3,231 3 ,531 3,510 3,988 Housing & Community Grants - - - - Public Safety:

Police 31,728 3 3,378 35,382 38,446 Fire 15,070 1 5,855 16,160 17,115 Parks & Recreati on - - - - Public Works 8,958 8 ,874 9,053 8,966 Capital Outlay 32,435 3 4,136 24,248 27,031 Debt Servi ce:

Principal Re tire m e nt 1,178 1 ,321 1,364 1,136 Interest and Fiscal Charges 694 5 48 507 465 Total Expenditures 101,515 1 06,223 99,409 106,248 Excess (Defi ci ency) of
Revenues Over (Under)
Expenditures 3,634 5 ,155 20,565 28,008 Other Financing Sources (Uses):

Sal es of Real Property 655 1 ,465 113 517 Proceeds from Sal e of Capi tal 7 3 1 1 Subscription Assets Acquired - - - - Issuance of Debt - Leases Acqui red - - - - Issuance of Debt 13,121 - - - Bond Premium 785 - - - Transfers In 2,070 8 ,373 3,272 9,509 Transfers Out (6,304) ( 12,365) (7,398) (13,125) Total Other Financing
Sources (Uses) 10,334 ( 2,524) (4,012) (3,098) Extraordinary Items - - - - Net Change in Fund Balances 13,968$ 2 ,631$ 16,553$ 24,910$ Debt Servi ce as a Percentage of
Noncapital Expenditures 1 2.4% 2.3% 2 .3% 2.0%
1 The calculation of debt service as a percentage of noncapital expenditures excludes capital outlays.

In 2020 the City separated the Housing & Community Grants from Community Development.

In 2020 the City renamed the Parks & Recreation department to Community Services Department.

Fiscal Year

CITY OF VISALIA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

MODIFIED ACCRUAL BASIS OF ACCOUNTING

LAST TEN FISCAL YEARS
(In Thousands)

195

2020 2021 2 022 2023 2024 2025
60,350$ 70,926$ 82,151$ 84,617$ 86,676$ 85,801$ 26,282 2 7,885 29,726 31,769 34,381 37,081 8,020 9 ,290 10,868 11,771 12,368 11,676 14,829 1 7,865 14,689 20,859 33,329 51,419 84 7 3 57 97 60 58 13,929 1 4,264 17,382 13,106 15,415 17,739 4,841 1 ,479 (4,977) 4,056 15,152 19,775 8,374 8 ,117 10,530 9,441 9,804 12,884 2,208 1 ,754 2,780 2,151 1,742 2,335 138,917 1 51,653 163,206 177,867 208,927 238,768 3,944 4 ,610 3,600 4,546 4,022 4,240 2,114 2 ,552 3,135 3,131 6,150 7,102 10,501 9 ,736 11,825 12,645 - - 753 2 ,269 947 2,637 1,859 2,907 41,638 4 2,420 44,792 47,580 48,603 56,237 17,360 1 8,678 20,542 22,135 21,846 24,452 - - - - 12,673 14,496 5,400 5 ,305 5,881 6,723 5,735 7,118 29,900 1 9,298 21,389 39,293 53,280 57,223 895 8 82 1,041 1,729 1,601 1,978 437 3 97 362 346 328 284 112,942 1 06,147 113,514 140,765 156,097 176,037 25,975 4 5,506 49,692 37,102 52,830 62,731 - 1 ,028 1,386 173 - - 16 3 47 1 - 18 - - - - 2,187 393 - - - 73 17 16 - - - - - - - - - - - - 8,482 1 3,700 15,959 11,748 20,107 33,043 (12,813) ( 17,697) (24,795) (23,097) (26,549) (37,295) (4,315) ( 2,966) (7,403) (11,102) (4,238) (3,825) - - - - - - 21,660$ 4 2,540$ 42,289$ 26,000$ 48,592$ 58,906$

1.5% 1.5% 1.4% 1.9% 1.6% 1.7%
Fiscal Year

196

NOTE:

In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an “inflation factor” (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

1 The City’s total direct tax rate varies by tax rate area. The rate provided comes from tax rate area 006 -008 and is representative of other tax rate areas within the City.

Source: Tulare County Auditor Controller’s Office

2016 2017 2 018 2019
City Direct Rate:

City Basic Rate 0.1150$ 0.1150$ 0.1150$ 0.1150$ Total City Direct Rate 0.1150 0.1150 0.1150 0.1150 Overlapping Rates:

Visalia Unified School District 0.3068 0.3068 0.3068 0.3068 College of The Sequoias 0.0537 0.0537 0.0537 0.0537 County of Tulare 0.1834 0.1836 0.1825 0.1825 Tulare County Schools 0.0248 0.0248 0.0248 0.0248 Tulare County Flood Control District 0.0022 0.0022 0.0021 0.0021 Air Pollution Control District 0.0004 0.0004 0.0004 0.0004 Library Fund 0.0158 0.0158 0.0157 0.0157 Memorial District 0.0016 0.0016 0.0016 0.0016 Cemetery District 0.0011 0.0011 0.0011 0.0011 Delta Vector Control District 0.0142 0.0142 0.0141 0.0141 Kaweah Delta Hospital 0.0096 0.0096 0.0096 0.0096 Kaweah Delta Water District 0.0289 0.0289 0.0289 0.0289 Education Revenue Augmentation 0.2430 0.2426 0.2438 0.2438 Visalia Unified School District Bonds 0.0226 0.0270 0.0183 0.0225 Kaweah Delta Hospital Bonds 0.0237 0.0206 0.0198 0.0181 Kaweah Delta Water Assessment 0.0004 0.0003 0.0004 0.0004 Total Direct Rate 1

1.0472$ 1.0482$ 1.0386$ 1.0411$ Fiscal Year

CITY OF VISALIA

DIRECT AND OVERLAPPING PROPERTY TAX RATES

LAST TEN FISCAL YEARS
(Rate per $100 of Assessed Value)

197

2020 2021 2022 2023 2024 2025

0.1150$ 0.1150$ 0.1150$ 0.1540$ 0.1535$ 0.1535$

0.1150 0.1150 0.1150 0.1540 0.1535 0.1535

0.3068 0.3068 0.3068 0.3068 0.3068 0.3068

0.0537 0.0537 0.0537 0.0537 0.0537 0.0537

0.1818 0.1820 0.1820 0.3722 0.3722 0.3722

0.0248 0.0248 0.0248 0.0248 0.0248 0.0248

0.0021 0.0021 0.0021 0.0055 0.0055 0.0055

0.0004 0.0004 0.0004 0.0004 0.0004 0.0004

0.0156 0.0156 0.0156 0.0174 0.0174 0.0174

0.0016 0.0016 0.0016 0.0020 0.0020 0.0020

0.0011 0.0011 0.0011 0.0018 0.0018 0.0018

0.0141 0.0141 0.0140 0.0237 0.0237 0.0237

0.0096 0.0096 0.0096 0.0096 0.0096 0.0096

0.0289 0.0289 0.0289 0.0289 0.0289 0.0289

0.2447 0.2445 0.2447 - - -

0.0225 0.0425 0.0350 0.0300 0.0400 0.0400

0.0181 0.0169 0.0180 0.0160 0.0160 0.0147

0.0003 0.0004 0.0004 - - -

1.0411$ 1.0600$ 1.0537$ 1.0468$ 1.0563$ 1.0550$ Fiscal Year

198

NOTE:

In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an “inflation factor” (limited to a maximum increase of 2%). With few exceptions, the property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

1 The City’s total direct tax rate varies by tax rate area. The rate provided comes from tax rate area 006 -008 and is representative of other tax rate areas within the City.

Source: Tulare County Auditor Controller’s Office
Fiscal Year Taxable Total
Ended Assessed Direct Tax
June 30 Secured Unsecured Value Rate 1
2016 8,672,154$ 438,480$ 9,110,634$ 0.115% 2017 9,144,989 435,751 9,580,740 0.115% 2018 9,502,122 498,924 10,001,046 0.115% 2019 10,066,721 534,555 10,601,276 0.115% 2020 10,592,327 552,734 11,145,061 0.115% 2021 11,213,027 576,723 11,789,750 0.115% 2022 11,869,633 646,790 12,516,423 0.115% 2023 13,813,575 870,691 14,684,266 0.154% 2024 14,752,716 1,032,054 15,784,770 0.154% 2025 16,037,686 1,146,181 17,183,867 0.154%

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS

CITY OF VISALIA
City
(In Thousands)

199

Percent Of Percent Of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Rank Value Value Rank
California Dairies Inc. 212,906$ 1.24% 1 - - - CRP LDF Central Point CA LLC 186,640 1.09% 2 - - - Canam Visalia LLC 147,104 0.86% 3 - - - Amazon.com Services LLC 137,155 0.80% 4 - - - 3315 Kelsey LLC 133,404 0.78% 5 - - - Pac West Diversified LP 97,277 0.57% 6 - - - J Beast LP 65,000 0.38% 7 - - - United Parcel Service Inc 79,985 0.47% 8
BT-OH LLC 63,269 0.37% 9 - - - Visalia Mall LP 62,508 0.36% 10 - - - California Dairies Inc. - - - 184,312$ 2.02% 1 Imperial Bondware Corp. - - - 61,893 0.68% 2 Target Corporation - - - 50,446 0.55% 3 Perfection Pet Foods - - - 45,515 0.50% 4 Visalia Mall LP - - - 43,719 0.48% 5 VF Outdoor - - - 37,559 0.41% 6 Bank of America - - - 37,242 0.41% 7 VWR International LLC - - - 36,947 0.41% 8 J Beast LP - - - 36,067 0.40% 9 Cottonwood Fresno Holdings LLC - - - 36,000 0.40% 10 Total Ten Largest Tax Payers 1,185,248$ 6.90% 569,700$ 6.25% All Other Tax Payers 15,998,619$ 93.10% 8,540,934$ 93.75% Total Assessed Valuation - All Tax Payers 17,183,867$ 100.00% 9,110,634$ 100.00% The amounts shown above include assessed value data for both the City and the Successor Agency.

Source: Tulare County Auditor-Controller
2025

CITY OF VISALIA

PRINCIPAL PROPERTY TAX PAYERS

CURRENT YEAR AND NINE YEARS AGO
(In Thousands)
2016

200

Source: Tulare County Auditor-Controller
Note: In 2022-23, Tulare County implemented a new financial and reporting system.

Fiscal Taxes Levied
Year Ended for the Percent
June 30 Fiscal Year Amount of Levy
2016 19,764$ 19,764$ 100.00%
2017 20,337 20,337 100.00%
2018 21,211 21,211 100.00%
2019 22,495 22,495 100.00%
2020 23,649 23,649 100.00%
2021 25,137 25,137 100.00%
2022 25,185 25,185 100.00%
2023 28,768 28,768 100.00%
2024 30,937 30,937 100.00%
2025 33,436 33,436 100.00%
Fiscal Year of Levy

CITY OF VISALIA

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
(In Thousands)
Collected within the

201

End State Local Local (1) City Rate County Rate City Rate Combined Date Jurisdiction Transportation Fund City Rate Measure T Measure R Measure N Rate 06/30/1935 (2 ) 2.50% 2.50%
06/30/1943 3.00% 3.00%
06/30/1949 2.50% 2.50%
12/31/1961 3.00% 1.00% 4.00%
07/31/1967 3.00% 1.00% 4.00%
06/30/1972 4.00% 0.25% 1.00% 5.25%
06/30/1973 3.75% 0.25% 1.00% 5.00%
09/30/1973 4.75% 0.25% 1.00% 6.00%
03/31/1974 3.75% 0.25% 1.00% 5.00%
11/30/1989 4.75% 0.25% 1.00% 6.00%
12/31/1990 5.00% 0.25% 1.00% 6.25%
07/14/1991 4.75% 0.25% 1.00% 6.00%
12/31/2000 6.00% 0.25% 1.00% 7.25%
12/31/2001 5.75% 0.25% 1.00% 7.00%
06/30/2004 6.00% 0.25% 1.00% 7.25%
03/31/2007 6.25% 0.25% 0.75% (3) 0.25% (4) 7.50%
03/31/2009 6.25% 0.25% 0.75% 0.25% 0.50% (5) 8.00%
06/30/2011 7.25% 0.25% 0.75% 0.25% 0.50% 9.00%
12/31/2012 6.25% 0.25% 0.75% 0.25% 0.50% 8.00%
12/31/2016 6.50% 0.25% 0.75% 0.25% 0.50% 8.25%
03/31/2017 6.00% 0.25% 1.00% 0.25% 0.50% 8.00%
Current 6.00% 0.25% 1.00% 0.25% 0.50% 0.50% (6) 8.50%
NOTES:
(1)
(2)
(3)
(4)
(5)
(6)
Source:
(1)(2)(3) State Board of Equalization, State of California (4)(5)(6) City of Visalia
Statewide Base Sales and Use Tax Rate
04/01/2017
01/01/2017

CITY OF VISALIA

HISTORICAL SALES AND USE TAX RATES
04/01/1974
Effective
Date
08/01/1933
07/01/1935
07/01/1943
07/01/1949
01/01/1962
08/01/1967
07/01/1972
07/01/1973
10/01/1973
12/01/1989
01/01/1991
07/15/1991
01/01/2013
07/01/2004
01/01/2001
01/01/2002
04/01/2007
04/01/2009
07/01/2011
The Bradley-Burns Uniform Local Sales and Use Tax Law was encated in 1955. The law authorizes cities and counties to impose a sales and use tax. Effective January 1, 1962, all cities and counties have adopted ordinances for the State Board of Equalization to collect the local tax.

Sales Tax only. The use tax was enacted effective July 1, 1935.

In March 2004, a State ballot measure was passed issuing deficit reduction bonds for State purposes. Funding was provided effective July 1, 2004, by repealing 25% of the local 1% sales tax and then adopting a new 1/4 cent sales tax dedicated to the repayment of the deficit reduction bonds. Cities and counties would then be "made whole" by the State from increased property tax allocations via reduced contributions to ERAF. This "triple flip" is theoretically revenue-neutral, and as such, the effective rate for revenue purposes remains at 1%.

In March 2004, the voters of the City of Visalia passed a sales tax override (Measure T) to increase public saftey in the community increasing the City rate by 1/4% ,effectiveJuly 1, 2004. The measure requires the City Manager to annually recertify the Measure T plan to the City Council. Additionally,the plan must be reafirrmed every 8 years by a 4 out of 5 City Council approval.

In November 2006, voters in the County of Tulare approved a countywide sales tax measure (Measure R) giving the County a 1/2% rate increase which became effective April 1, 2007. The sales tax measure has a sunset period of 30 years. The revenue is earmarked for transportation projects with allocations as follows: 50% for regional projects, 35% goes to cities for their street programs, 14% for transportationenhancement programs, and 1% for administration.

In November 2016, voters of the City of Visalia passed a 1/2 (half-cent) sales tax override (Measure N), effective April 1, 2017.

The proceeds of this tax will provide the City with a reliable, ongoing, local source of funding for public safety, repairs and maintenance for streets, and maintenance of parks and trails.

202

Source:
(1) California Department of Finance
(2) Avenue Insights & Analytics (MuniServices)

Note: 2024 is the latest available year.
2020(2) 2021(2) 2022(2) 2023(2) 2024(2)
Retail Stores
Apparel Stores 1 07,987$ 185,096$ 166,673$ 181,202$ 205,352$ General Merchandise Stores 387,705 471,973 504,821 501,146 487,703 Food Stores 138,239 131,034 149,412 138,113 144,061 Eating and Drinking Places 249,567 348,749 381,344 403,787 422,182 Home Furnishings and Appliances 91,551 119,453 106,914 93,362 86,956 Bldg. Material and Farm Implements 286,433 309,307 335,070 329,892 311,749 Auto Dealers and Auto Supplies 370,099 479,184 452,229 432,378 415,763 Service Stations 132,712 186,585 225,791 204,930 191,093 Other Retail Stores 218,646 346,084 516,480 628,872 614,357 Retail Stores Totals 1,982,939 2,577,465 2,838,734 2,913,682 2,879,216 All Other Outlets 1,081,731 1,251,414 1,363,230 1,226,427 1,199,684 Totals All Outlets 3,064,670$ 3,828,879$ 4,201,964$ 4,140,109$ 4,078,900$

CITY OF VISALIA

TAXABLE SALES TRANSACTIONS BY TYPE
2015-2024 CALENDAR YEARS
(Dollars in Thousands)
2015(2) 2016(2) 2017(2) 2018(2) 2019(2)
Retail Stores
Apparel Stores 128,885$ 138,129$ 138,637$ 144,806$ 145,638$ General Merchandise Stores 392,404 398,900 400,820 406,490 405,765 Food Stores 108,996 123,005 120,900 124,058 124,210 Eating and Drinking Places 247,406 263,310 277,409 288,003 296,010 Home Furnishings and Appliances 83,136 91,778 86,839 91,966 92,407 Bldg. Material and Farm Implements 203,921 213,421 222,315 312,640 242,041 Auto Dealers and Auto Supplies 370,884 411,684 401,536 377,145 375,482 Service Stations 155,270 141,307 163,999 155,709 171,821 Other Retail Stores 208,015 212,872 203,637 215,347 214,145 Retail Stores Totals 1,898,917 1,994,406 2,016,092 2,116,164 2,067,519 All Other Outlets 742,120 775,194 794,330 854,888 1,029,450 Totals All Outlets 2,641,037$ 2,769,600$ 2,810,422$ 2,971,052$ 3,096,969$

203

Source: Avenue Insights & Analytics (MuniServices)

Note: 2024 is the latest available year.

Amazon Lampe Chrysler Dodge Jeep Ram
Amazon Services Lowe's Home Centers
ARCO AM/PM Mini Marts MWI Veterinary Supply
Best Buy Stores Ross Stores
Bluescope Buildings Target Stores
Butler Animal Health Supply Tri-Animal Health Services
Chevron Service Stations Vans
COSTCO Wholesale Visalia Honda
Don Rose Oil Co. Visalia Kia
Giant Chevrolet Cadillac Visalia Toyota
HILTI VWR International
Home Depot Wal Mart Stores
J.C. Lansdowne
Animal Health International MWI Veterinary Supply
Best Buy Stores Nissan of Visalia
Bluescope Buildings Ross Stores
Butler Animal Health Supply Save Mart Supermarkets
COSTCO Wholesale Target Stores
Don Rose Oil Company Tri-Animal Health Services
Giant Chevrolet Company Union 76 Service Stations
HILTI Visalia Ford
Home Depot Visalia Honda
J C Penney Company Visalia Toyota
Lampe Chrysler Dodge Jeep Ram VWR International
Lowe's Home Improvement Wal Mart Stores
Macy's

CITY OF VISALIA
TOP 25 SALES TAX CONTRIBUTORS
(in alphabetical order)
2024 CALENDAR YEAR and NINE YEARS AGO
2015 CALENDAR YEAR
2024 CALENDAR YEAR

204

NOTES:

1US Department of Commerce Bureau of Economic Analysis

Personal Income Data from the Bureau of Economic Analysis is only available through 2021.

Fiscal Year Certificates Total
Ended of Notes Lease SBITA Governmental
June 30 Participation Payable Liabilities Liabilities Activities 2016 13,678$ 1,479$ -$ -$ 15,157$ 2017 12,835 937 - - 13,772 2018 11,994 372 - - 12,366 2019 11,155 54 - - 11,209 2020 10,310 - - - 10,310 2021 9,428 - - - 9,428 2022 8,501 - 723 - 9,224 2023 7,533 - 679 732 8,944 2024 6,520 - 616 2,411 9,547 2025 5,454 - 608 1,916 7,978 Governmental Activities

CITY OF VISALIA

LAST TEN FISCAL YEARS

RATIOS OF OUTSTANDING DEBT BY TYPE
(In Thousands, except Debt per Capita)

205

Total Total Percentage Debt
Certi fi cates of Lease SBITA Business-type Primary of Personal Per Participation Notes L iabilitie s L iabilitie s A ctivitie s Government Income1 Capita 10,517$ 84,995$ 5,536$ -$ 101,048$ 116,205$ 0.66% 892 9,677 92,703 5,157 - 107,537 121,309 0.66% 911 8,838 96,516 4,764 - 110,118 122,484 0.66% 899 8,003 94,133 4,357 - 106,493 117,702 0.59% 852 7,166 91,705 3,937 - 102,808 113,118 0.52% 816 6,308 89,266 3,502 - 99,076 108,504 0.47% 768 5,425 86,775 3,051 - 95,251 104,475 0.46% 735 4,513 84,232 2,585 65 91,395 100,339 N/A 702 3,572 81,636 2,103 43 87,354 96,901 N/A 670 2,596 78,985 1,604 2,049 85,234 93,212 N/A 634 Busine ss-type A ctivitie s

Visalia City CouncilJanuary 20, 2026

Visalia City Council
January 20, 2026