The Docket · Government Meeting · DKT-2026-000150

On the agenda: Chowchilla meeting — LPR camera (Apr 28)

Past ⚠ Agenda Watch Chowchilla, California · Tuesday, April 28, 2026 — 4 months ago

About this record

The published agenda for this April 28 meeting contains: "LPR camera". The meeting has passed; the record and its outcome live here permanently.

WhenTuesday, April 28, 2026
Check the agenda document for the meeting time.

WhereChowchilla, California

Money$500 was at stake

On the record“LPR camera”

The agenda, word for word

Government public record — the full text of the published document, archived July 21, 2026. Gold highlighting of key terms is ours, not the original’s. Read the original document ↗

187 pages · scroll to read

Page 1 of 187

AGENDA
City Council Meeting

Council Chamber, Chowchilla City Hall
130 S. 2nd Street, Chowchilla, CA 93610

Tuesday, April 28, 2026
Open Session: 4:00 p.m.

Agendas for all City Council meetings are posted at least 72 hours prior to the meeting in the kiosk just
outside of City Hall, 130 S. Second St., Chowchilla, CA 93610.
The City of Chowchilla complies with the Americans with Disabilities Act (ADA of 1990). The Council
Chambers is accessible to the physically disabled. If you need special assistance, please call (559) 6658615, ext. 102, at least four days prior to a regular meeting and one day for a special meeting.
California Levine Act Statement:
California Government Code Section 84308, commonly referred to as the "Levine Act," prohibits any
Chowchilla City Council Member from participating in any action related to a license, permit, contract, or
entitlement for use application if he or she receives any political contributions totaling more than $500 within
the previous twelve months, and for twelve months following the date of a final decision, from the
business/board or applicant.
The Levine Act also requires a member of the Chowchilla City Council who has received such a contribution
to disclose the contribution on the record of the proceeding.

CALL TO ORDER/ROLL CALL
Mayor: Kelly Smith
Mayor Pro Tem: Ray Barragan
Council Members: Waseem Ahmed, John Chavez, Jeff Troost
City staff and contract employees present will be recorded in the minutes.
CONSIDERATION OF APPROVAL OF AGENDA Additions and/or Deletions:
OPEN SESSION – 4:00 PM
PLEDGE OF ALLEGIANCE
INVOCATION:
PRESENTATIONS/WORKSHOP - Section 1
•

Proclamation: National Public Works Week

PUBLIC ADDRESS
This time is reserved for members of the audience to address the City Council on items of interest that are
not on the agenda and that are within the subject matter jurisdiction of the Council.
It is recommended that speakers limit their comments to no more than 3 minutes each, and it is requested
that no comments be made during this period on items on the Agenda. Speakers are not allowed to cede
their public comment time.
Members of the public who are joining the meeting via Zoom and would like to address the Council on items
on the agenda should follow the policy on page 4 of this agenda packet.

Page 2 of 187

City Council Meeting AGENDA

April 28, 2026

The Council is prohibited by law from taking any action on matters discussed that are not on the agenda.
No adverse conclusions should be drawn if the Council does not respond to public comment at this time.

COUNCIL AND STAFF VERBAL REPORTS – Section 2
2.1

COUNCIL VERBAL REPORTS
Legislative, Collaborative Agency, Ad Hoc

2.2

STAFF VERBAL REPORTS

CONSENT CALENDAR – Section 3
All items listed under Consent Calendar are considered to be routine and will be enacted by one motion.
For discussion of any Consent Item, it will be made a part of the Regular Agenda at the request of any
member of the City Council or any person in the audience.

3.1

Approval of the April 14, 2026 Regular City Council Meeting Minutes (McClendon)

3.2

Consideration and Acceptance of the March 2026 Financial Report (McClendon)

3.3

Second Reading and Adoption of an Ordinance Amending Section 4.04.360 of the
Chowchilla Municipal Code Related to Bid Protest Procedures (Pruett)

3.4

Consideration and Adoption of a City Council Resolution Approving Amendments to
the City of Chowchilla Procurement Policy Related to Bid Protest Procedures (Pruett)

3.5

Consideration and Adoption of a City Council Resolution Designating Eligible
Projects for Fiscal Year 2026-27 Funded by SB 1: The Road Repair and Accountability
Act of 2017 (Roman)

3.6

Consideration and Adoption of a City Council Resolution Renewing Ordinance #50922, Chowchilla Police Department Policy No. 705, and the 2025 Annual Military
Equipment Report (Palmer)

3.7

Informational Item – Quarterly Project Management Update (McClendon)

3.8

Consideration and Acceptance of the Quarterly Fee Waiver Report (Seeto)

3.9

Consideration and Acceptance of the Quarterly Contracts Executed Report (Pruett)

3.10 Consideration and Acceptance of the Quarterly Financial Investment Report (Seeto)
PUBLIC HEARINGS – Section 4
4.1

Consideration and Adoption of a City Council Resolution Approving the Measure T
Annual Expenditure Plan (AEP) for Fiscal Year 2026/27 and Authorizing the Public
Works Director or Designee to Submit the Plan to the Madera County Transportation
Authority (MCTA) for Adoption (Roman)

DEFERRED BUSINESS – Section 5
NEW BUSINESS – Section 6
6.1

Presentation of the City’s Fiscal Year 2024-2025 Financial Statement Audit (Seeto)

Page 3 of 187

City Council Meeting AGENDA

6.2

April 28, 2026

Consideration and Adoption of a City Council Resolution Awarding Contract for the
Road 15 ½ Rehabilitation Project to Hensley’s Paving and General Engineering and
Authorizing the City Administrator or Designee to Execute Related Documents
(Roman)

ANNOUNCEMENTS – Section 7
MAY 12
MAY 7-10
MAY 9

CITY COUNCIL MEETING, COUNCIL CHAMBERS, 4PM
CHOWCHILLA FAIR, MADERA-CHOWCHILLA FAIRGROUNDS
SPRING FESTIVAL PARADE

ADJOURNMENT
I, Joann McClendon, CMC, City Clerk, do hereby declare under penalty of perjury that the foregoing agenda
was posted at Chowchilla City Hall, 130 S 2nd Street, Chowchilla, CA, and made available for public review
on this 24th day of April, 2026 at or before 4:00 pm.

Page 4 of 187

April 28, 2026 City Council Meeting | 4:00pm Open Session

ZOOM LOGIN INSTRUCTIONS
Use the following URL to start Zoom:
https://us06web.zoom.us/j/87344948065?pwd=4bLvTyJRGpYMTDO81oUrY4OSbFOSs
z.1

Passcode: 365 585
To participate by phone:
Dial 1-669-444-9171
Webinar ID: 873 4494 8065
Passcode: 365 585
Staff highly recommends that participants log into Zoom 15 minutes before
the meeting begins to perform an audio check and ensure they have an
optimal internet connection.
Options to participate / view / listen to the meeting:
• If you wish to speak on an item using the Zoom platform on your
computer/laptop or smartphone, please use the “raise hand” icon, and
you will be unmuted when it is your turn to speak. Please provide your
name when unmuted. You can address the Council for up to 3 minutes.
• If you are calling into the meeting only (no camera/video) and wish to
comment, press *9 to “raise your hand” and *6 to unmute yourself.

Page 5 of 187

MINUTES
City Council Meeting

Council Chamber, Chowchilla City Hall
130 S. 2nd Street, Chowchilla, CA 93610

Item 3.1
CLICK HERE
TO RETURN TO
THE AGENDA

Tuesday, April 14, 2026
Open Session: 4:00 p.m.

CALL TO ORDER/ROLL CALL
Mayor: Kelly Smith
Mayor Pro Tem: Ray Barragan
Council Members: Waseem Ahmed (ABSENT), John Chavez, Jeff Troost
City staff and contract employees present: City Administrator Rod Pruett, City Attorney
Michael Prentice, Police Chief Jeff Palmer, Fire Chief Fred Gaumnitz, Public Works Director
Dustin Ensminger, Community & Economic Development Director Denise Munoz, Finance
Director Daniel Seeto, Director of Recreation & Community Engagement Stacy Wisener, IT
System Administrator Carlos Berrocal, Kurt Wlodarczyk, Deputy City Clerk Vanessa GalvezEscobar
CONSIDERATION OF APPROVAL OF AGENDA Additions and/or Deletions: None.
OPEN SESSION – 4:00 PM
PLEDGE OF ALLEGIANCE
INVOCATION: Pastor Pruitt
PRESENTATIONS/WORKSHOP - Section 1
• Proclamation: Child Abuse Prevention Month
Jennifer Coronado, Program Manager for Victim Services, thanked the Council for recognizing
Child Abuse Prevention Month and highlighted the importance of prevention education. She
announced a Child Abuse Prevention Conference on April 30 in Madera and shared local data
from the Child Advocacy Center, emphasizing that most perpetrators are known to the child. She
encouraged community awareness and participation.
PUBLIC ADDRESS
Vanessa Saldaña Lopez, a UC Merced student, presented a proposed community project focused
on park cleanup in Chowchilla. As part of her environmental science studies and honors program,
she plans to organize biweekly cleanups beginning around July, engaging student volunteers and
local youth. The project will include providing supplies and potentially recycling collected cans to
support the local soccer league. Staff recommended coordination with Public Works for supplies
and trash collection.
COUNCIL AND STAFF VERBAL REPORTS – Section 2
2.1

COUNCIL VERBAL REPORTS
Legislative, Collaborative Agency, Ad Hoc

Council Member Chavez reported since the last meeting he attended the ICSC in Monterey and
the CAPMC meeting.

Page 6 of 187

City Council Meeting MINUTES

April 14, 2026

Council Member Troost reported that on April 7, he attended the regular monthly meeting at the
Citizens Advisory Committee at the Valley Air Board and the Fair and K-9 Dinner.
Mayor Pro Temp Barragan reported that he also attended the Fair dinner and the K-9 dinner.
Mayor Smith reported that he also attended both dinners, Fair and K-9, and the Task Force
meeting.
2.2

STAFF VERBAL REPORTS

Police Chief Palmer reported that since the last meeting, Chowchilla PD responded to 1,217 calls
for service, conducting 502 proactive stops, resulting in 25 misdemeanor and 10 felony arrests.
A total of 24 citations were issued, along with 45 additional calls for service and 7 other
enforcement actions. Staff also reported on the success of the K9 Dinner, noting it was the highest
event attended to date. Appreciation was expressed to Sergeant Burnett for his work in organizing
the event. Thanks were given to all donors, including Golden Memorial Insurance and Mr. Ray
Barragan for a $50,000 contribution to the K9 program. Funds will support the replacement of
retiring K9s, related equipment, and training for both dogs and handlers.
Fire Chief Gaumnitz reported that for the month of March, there were 125 calls for service and
561 individual volunteer responses. Incidents included 7 fires, 2 hazard situations, 91 medical
calls (27 trauma-related), 12 public service requests, 1 rescue, and 1 law enforcement support
response. Staff also met with American Ambulance to discuss coordination and strengthening
working relationships moving forward. Positive feedback was noted regarding their service and
its impact on the community. Additionally, one new volunteer is in the background process, and
the department’s last full-time position is also currently in background.
Public Works Director Ensminger reported that Well 15 was recently brought online with potable
drinking water now being supplied to the community. This represents a significant milestone
following a long-term project involving multiple regulatory and construction challenges.
Community & Economic Development Director Munoz reported attending the Madera County Fair
kickoff dinner. The Community Development Department continues to process permits and
planning applications and is actively working with developers, property owners, real estate agents,
and business owners to support project acceleration, business retention, and new investment.
Notable updates include Tyler Palmer Construction opening at 107 N. Front St., Suite C on April
6, and Counce Center Fuels anticipated to open at 240 E. Robertson Blvd. around May 1.
Director of Recreation & Community Engagement Wisener reported the City launched its
community budget survey and continues outreach efforts for the upcoming fiscal year. A new
community event, Community Paint Night, is scheduled for April 24. Staff also implemented new
software to support ADA Title II website and form accessibility compliance and is in the planning
stages of a new project tracking system to improve interdepartmental coordination. IT staff
continue addressing infrastructure and system reliability issues, including network
troubleshooting, system updates, and support for wastewater treatment plant operations.
Additional improvements were made with the installation of a new wide-angle camera at City Hall
to enhance security coverage.
City Administrator Pruett reported attending the Fair dinner and K9 dinner. Updates were provided
on ongoing regional coordination efforts, including meetings with Caltrans regarding the
roundabout project, right-of-way acquisition, and environmental clearance related to parcel
contamination. Continued work on grant applications for the project, including federal funding
opportunities, as well as participation in regional coordination meetings with county and economic
development partners. Additional updates included CFD bond planning discussions, fair

Page 7 of 187

City Council Meeting MINUTES

April 14, 2026

consolidation project coordination, and ongoing permitting efforts with Caltrans, Union Pacific,
and the Army Corps of Engineers in preparation for future bid advertisements.
CONSENT CALENDAR – Section 3
3.1

Approval of the March 26, 2026 Goal Setting Meeting Minutes (McClendon)

3.2

Approval of the March 26, 2026 Special City Council Meeting Minutes (McClendon)

3.3

Consideration and Acceptance of the March 2026 Check Register Report (Seeto)

3.4

Consideration and Adoption of a City Council Resolution Approving the Mid-Year
Budget Amendments for the Fiscal Year Ending June 30, 2026 (Seeto)

Motion by Mayor Pro Tem Barragan, Seconded by Council Member Troost to Approve the
Consent Calendar as Presented. Motion passed by roll call vote with Council Member Ahmed
absent.
PUBLIC HEARINGS – Section 4
4.1

Introduction and First Reading of an Ordinance Amending Section 4.04.360 of the
Chowchilla Municipal Code Related to Bid Protest Procedures (Pruett)

The Mayor opened the public hearing at 4:29 p.m. No one spoke for or against the item. The
Mayor closed the public hearing at 4:29 p.m.
Motion by Council Member Troost, Seconded by Mayor Pro Tem Barragan to Waive the First
Reading of an Ordinance Amending Section 4.04.360 of the Chowchilla Municipal Code Related
to Bid Protest Procedures. Motion passed with Council Member Ahmed absent.
DEFERRED BUSINESS – Section 5
NEW BUSINESS – Section 6
6.1

Second Reading and Adoption of an Ordinance Levying and Apportioning Special
Taxes Within the City of Chowchilla Community Facilities District No. 2025-2 (Pruett)

Motion by Mayor Smith, Seconded by Mayor Pro Tem Barragan to Approve Ordinance #537-26,
Levying and Apportioning Special Taxes Within the City of Chowchilla Community Facilities
District No. 2025-2. Motion passed with Council Member Ahmed absent.
6.2

Consideration and Adoption of a City Council Resolution Authorizing Allocation from
the Council contingency Fund for the Coarsegold Rodeo Grounds Sponsorship
Request (Wisener)

Motion by Mayor Pro Tem Barragan, Seconded by Council Member Troost to Approve City
Council Resolution #14-26, Authorizing Allocation from the Council contingency Fund for the
Coarsegold Rodeo Grounds Sponsorship Request. Motion passed with Council Member Ahmed
absent.
6.3

Informational Item: Pavement Management Report Presentation (Ensminger)

ANNOUNCEMENTS – Section 7
APR 15

PLANNING COMMISSION MEETING, COUNCIL CHAMBERS, 5PM

Page 8 of 187

City Council Meeting MINUTES

APR 20
APR 24
APR 28

April 14, 2026

AIRPORT ADVISORY MEETING., COUNCIL CHAMBERS, 5PM
COMMUNITY PAINT NIGHT, SENIOR CENTER, 6PM
CITY COUNCIL MEETING COUNCIL CHAMBERS, 4PM

ADJOURNMENT
Mayor Smith adjourned the meeting at 5:00p.m.
ATTEST:

APPROVED:

Vanessa Galvez-Escobar, Deputy City Clerk

Mayor Kelly Smith

Page 9 of 187

Item 3.2

REPORT TO THE CITY COUNCIL

CLICK HERE
TO RETURN TO
THE AGENDA

Meeting of: Tuesday, April 28, 2026
AGENDA SECTION:

Consent

SUBJECT:

Consideration of Monthly Financial Statements

PREPARED BY:

Daniel Seeto, Finance Director

ATTACHMENTS:

March 2026 Budget vs Actual and Balance Sheet

REVIEWED BY
ADMINISTRATOR

☒

REVIEWED BY
ATTORNEY

☒

REVIEWED BY
FINANCE

☒

RECOMMENDATION:
Approve the March 2026 Financial Statements shown in the attachment.
BACKGROUND:
Staff provides Council with monthly financial information as an ongoing financial status update.
REASON FOR RECOMMENDATION:
The monthly financial statements consist of a Budget vs Actual and a Balance Sheet for the General Fund.
The Budget vs Actual shows the current Month (Period Activity) and current Year (Fiscal Activity)
Revenues and Expenses by Department in summary form compared to the current year Original and
Current budgets. The Balance Sheet shows the Assets, Liabilities and Fund Balance at the time the report
is generated. This provides an overview of cash, amounts owed to the City, amounts the City owes and
the fund balance at a specific point in time.
The financial statements are being presented as an overview of the City’s finances and are not meant to
be a comprehensive in-depth review. As a reference to compare to the percent remaining column in the
report, the percentage of the year remaining 25.00%.
If the percent remaining column for Revenues is higher than the above-mentioned percentage, that is an
unfavorable variance and should be explained if significant. If the percent remaining column for Expenses
is lower than the above-mentioned percentage, that is an unfavorable variance and should be explained
if significant.
If there are questions regarding the actual amounts or budget vs actual variances, please forward your
questions to Finance with enough time before the meeting for staff to research them.

Page 10 of 187

FISCAL IMPACT:
Revenues
General Administration- The City’s largest budgeted revenue sources are Property tax and VLF (50%),
Sales Tax (25%), and overhead allocations (20%). Property tax and VLF are only received twice a year,
typically in February and May. The first payment of $4,005,356 was received in January 2026. The City is
teetered - which means we do not have to worry about delinquencies, because the County pays the City
and then goes after the delinquencies themselves. Sales tax payments can lag a month or two behind. For
the financial statements presented the sales tax payments reflect through January. The overhead
allocations are amortized quarterly based on budget, then reconciled to actual at June 30.
Police Department- Budgeted revenue is from school reimbursements for SRO service, which we have
received. Also, the budget has a $750k Transfer-in from Measure N for the RIMS Software, recruitment
and retention of employees, communications upgrade, evidence storage and fleet/upfitting costs.
Fire Department- This revenue is for fines/penalties and fire inspection fees that are completed throughout
the year.
Community & Economic Development- This will fluctuate as building permits are pulled. The City
budgeted for the following projects like Rancho Calera, Solar Permits and various other projects within the
City. The City still has other miscellaneous permits for other items that are happening as well.
Parks and Facilities- The revenues are for overhead allocations from the LLMD that happen at the end
of the year.
Community Relations- Revenues are from sports program reimbursements, park pavilion rentals and
donations.
Expenses
General Services- Actual expenses appear to be in-line with budgeted projections as a whole.
Police Department- Actual expenses appear to be in-line with budgeted projections as a whole.
Fire Department- Actual expenses appear to be in-line with budgeted projections as a whole.
Community Relations- Actual expenses appear to be in-line with budgeted projections as a whole.
ALTERNATIVES:
Pull the item for further discussion.
ACTIONS FOLLOWING APPROVAL:
None.

Page 11 of 187

Budget Report
Group Summary

Chowchilla, CA

For Fiscal: 2025-2026 Period Ending: 03/31/2026

Variance
Favorable
Percent
(Unfavorable) Remaining

Original
Total Budget

Current
Total Budget

Period
Activity

Fiscal
Activity

10,697,699.00
427,896.00
10,269,803.00

174,792.65
4,730.10
170,062.55

5,161,670.22
47,081.67
5,114,588.55

-5,536,028.78
380,814.33
-5,155,214.45

51.75%
89.00%
50.20%

Dept: 1605 - City Council Surplus (Deficit):

3,500.00
121,911.00
-118,411.00

284.40
5,230.76
-4,946.36

5,070.40
65,708.78
-60,638.38

1,570.40
56,202.22
57,772.62

44.87%
46.10%
48.79%

Dept: 1610 - City Clerk Total:

291,900.00
291,900.00

23,240.03
23,240.03

252,420.58
252,420.58

39,479.42
39,479.42

13.52%
13.52%

Dept: 1615 - City Attorney Total:

275,000.00
275,000.00

20,828.17
20,828.17

107,076.12
107,076.12

167,923.88
167,923.88

61.06%
61.06%

Dept: 1705 - General Services
Revenue
Expense
Dept: 1705 - General Services Surplus (Deficit):

0.00
2,247,814.00
-2,247,814.00

0.00
2,343,984.00
-2,343,984.00

0.00
57,280.66
-57,280.66

4,958.37
1,639,313.41
-1,634,355.04

4,958.37
704,670.59
709,628.96

0.00%
30.06%
30.27%

Dept: 1710 - City Administration
Expense
Dept: 1710 - City Administration Total:

456,703.00
456,703.00

29,656.09
29,656.09

290,508.52
290,508.52

166,194.48
166,194.48

36.39%
36.39%

Dept: 1712 - City Property - Rents
Revenue
Expense
Dept: 1712 - City Property - Rents Surplus (Deficit):

162,846.00
53,445.00
109,401.00

15,999.54
10.52
15,989.02

120,144.52
25,976.80
94,167.72

-42,701.48
27,468.20
-15,233.28

26.22%
51.40%
13.92%

Dept: 1720 - Finance Department
Revenue
Expense
Dept: 1720 - Finance Department Surplus (Deficit):

8,200.00
977,847.00
-969,647.00

839.00
61,168.37
-60,329.37

4,229.00
691,183.98
-686,954.98

-3,971.00
286,663.02
282,692.02

48.43%
29.32%
29.15%

Dept: 2610 - Police Department
Revenue
Expense
Dept: 2610 - Police Department Surplus (Deficit):

1,049,432.00
5,224,437.00
-4,175,005.00

1,208,326.00
5,752,119.00
-4,543,793.00

11,576.58
299,404.33
-287,827.75

469,918.97
4,113,891.69
-3,643,972.72

-738,407.03
1,638,227.31
899,820.28

61.11%
28.48%
19.80%

Dept: 2615 - Police - Mad Net
Revenue
Expense
Dept: 2615 - Police - Mad Net Surplus (Deficit):

193,300.00
303,692.00
-110,392.00

0.00
7,983.97
-7,983.97

0.00
33,670.99
-33,670.99

-193,300.00
270,021.01
76,721.01

100.00%
88.91%
69.50%

Dept: 2705 - Fire Department
Revenue
Expense
Dept: 2705 - Fire Department Surplus (Deficit):

5,500.00
517,716.00
-512,216.00

14,224.00
528,798.00
-514,574.00

0.00
18,930.15
-18,930.15

11,018.13
344,238.00
-333,219.87

-3,205.87
184,560.00
181,354.13

22.54%
34.90%
35.24%

Dept: 4705 - Community & Economic Development
Revenue
Expense
Dept: 4705 - Community & Economic Development Surplus (Deficit):

739,134.00
1,180,198.00
-441,064.00

751,835.00
1,182,899.00
-431,064.00

65,778.65
46,902.16
18,876.49

615,681.62
699,963.57
-84,281.95

-136,153.38
482,935.43
346,782.05

18.11%
40.83%
80.45%

2,000.00
24,956.00

3,600.00
24,956.00

0.00
0.00

3,628.00
16,291.14

28.00
8,664.86

0.78%
34.72%

Account Typ…
Dept: 1600 - General Administration
Revenue
Expense
Dept: 1600 - General Administration Surplus (Deficit):
Dept: 1605 - City Council
Revenue
Expense
Dept: 1610 - City Clerk
Expense
Dept: 1615 - City Attorney
Expense

Dept: 6610 - Community Pool (OLD)
Revenue
Expense

4/13/2026 3:23:34 PM

Page 1 of 3

Page 12 of 187

Budget Report

For Fiscal: 2025-2026 Period Ending: 03/31/2026
Variance
Favorable
Percent
(Unfavorable) Remaining

Original
Total Budget

Current
Total Budget

Period
Activity

Fiscal
Activity

-22,956.00

-21,356.00

0.00

-12,663.14

8,692.86

40.70%

Dept: 6615 - Senior Services Total:

47,902.00
47,902.00

50,902.00
50,902.00

752.75
752.75

28,836.02
28,836.02

22,065.98
22,065.98

43.35%
43.35%

Dept: 6620 - Parks & Facilities
Revenue
Expense
Dept: 6620 - Parks & Facilities Surplus (Deficit):

79,597.00
1,337,779.00
-1,258,182.00

79,597.00
1,423,863.00
-1,344,266.00

0.00
56,576.01
-56,576.01

20,226.50
630,390.42
-610,163.92

-59,370.50
793,472.58
734,102.08

74.59%
55.73%
54.61%

Dept: 6625 - Recreation & Community Engagement
Revenue
Expense
Dept: 6625 - Recreation & Community Engagement Surplus (Deficit):

24,408.00
276,435.00
-252,027.00

24,408.00
296,275.00
-271,867.00

3,519.00
15,215.36
-11,696.36

23,862.77
229,056.50
-205,193.73

-545.23
67,218.50
66,673.27

2.23%
22.69%
24.52%

Report Surplus (Deficit):

-800,015.00

-1,364,655.00

-375,119.61

-2,775,199.69

-1,410,544.69

-103.36%

Account Typ…
Dept: 6610 - Community Pool (OLD) Surplus (Deficit):
Dept: 6615 - Senior Services
Expense

4/13/2026 3:23:34 PM

Page 2 of 3

Page 13 of 187

Budget Report

For Fiscal: 2025-2026 Period Ending: 03/31/2026

Fund Summary

4/13/2026 3:23:34 PM

Fund

Original
Total Budget

Current
Total Budget

Period
Activity

Fiscal
Activity

Variance
Favorable
(Unfavorable)

100 - General Fund
Report Surplus (Deficit):

-800,015.00
-800,015.00

-1,364,655.00
-1,364,655.00

-375,119.61
-375,119.61

-2,775,199.69
-2,775,199.69

-1,410,544.69
-1,410,544.69

Page 3 of 3

Page 14 of 187

Balance Sheet

Account Summary

Chowchilla, CA

As Of 03/31/2026

Account
Fund: 100 - General Fund
Assets
100-0100-0201
100-0100-0202
100-0100-0206
100-0100-0219
100-0100-0224
100-0100-0226
100-0100-0227
100-0100-0228
100-0100-0229
100-0100-0230
100-0100-0244
100-0100-0291
100-0100-1900

Name

Balance

Petty Cash
Pre-Paid Postage Account
Cash Drawer
Lease Receivable
A/R MODULE ONLY RECEIVALBLES
Advance to Other Funds
Liens Receivables General Fund
Pending Charges or Refunds
A/R Business License
Accounts Receivable-Utilities
Deposit for Sec. 125
Prepaid Expenses
Claim On Cash
Total Assets:

Liability
100-0200-0422
100-0200-0426
100-0200-0480
100-0200-0482
100-0200-2901

Bonds for Work-Refundable
Manual Payables
Deferred Revenue
Unavailable Lease Revenue
Accounts Payable Pending
Total Liability:

Equity
100-0300-0601
100-0300-0604
100-0300-0605
100-0300-0611
100-0300-0615

Fund Balance
Reserve for Contingencies
Designated for Prepaid Items
Reserve for L/T A/R
SB1186
Total Beginning Equity:

Total Revenue
Total Expense
Revenues Over/Under Expenses
Total Equity and Current Surplus (Deficit):

500.00
1,586.78
1,700.00
48,839.58
75,408.69
294,135.64
202,144.13
0.01
-28.00
30.00
1,278.90
18,316.89
9,735,770.56
10,379,683.18
1,000.00
1,625.96
157,935.77
25,411.68
106,201.47
292,174.88
11,651,134.66
910,223.00
239.50
294,135.64
6,975.19
12,862,707.99
6,440,408.50
9,215,608.19
-2,775,199.69
10,087,508.30

Total Liabilities, Equity and Current Surplus (Deficit):

4/13/2026 3:25:55 PM

10,379,683.18

Page 1 of 1

Page 15 of 187

Item 3.3

REPORT TO THE CITY COUNCIL

CLICK HERE
TO RETURN TO
THE AGENDA

Meeting of: Tuesday, April 28, 2026
AGENDA SECTION:

Consent

SUBJECT:

Second Reading and Adoption of an Ordinance Amending Section 4.04.360
of the Chowchilla Municipal Code Related to Bid Protest Procedures.

PREPARED BY:

Rod Pruett, City Administrator

ATTACHMENTS:

Draft Ordinance

REVIEWED BY
ADMINISTRATOR

☒

REVIEWED BY
ATTORNEY

☒

REVIEWED BY
FINANCE

☒

RECOMMENDATION:
That the City Council waive the second reading and adopt an Ordinance amending Section 4.04.360 of
the Chowchilla Municipal Code to establish updated rules and procedures for protests of publicly bid
contracts.
BACKGROUND:
Section 4.04.360 of the Chowchilla Municipal Code allows a prospective bidder, offeror, or contractor, to
submit a protest regarding the solicitation or award of a contract. However, as currently written, Section
4.04.360 does not provide procedures and rules related to the submission, routing, processing, resolution,
or determination of such protests. The lack of detailed procedures can cause uncertainty for prospective
bidders and City staff alike.
Additionally, Section 4.04.360 provides that a contract award is stayed upon the submission of a bid
protest, “until all administrative and judicial remedies have been exhausted or until the city council makes
a determination on the record that the award of a contract without delay is necessary to protect substantial
interests of the city.” Staying a contract award upon receipt of a bid protest and until all potential
administrative and judicial remedies are exhausted is not required by law and has the potential to cause
significant delays in business conducted by the City.
The proposed ordinance would amend Section 4.04.360 to be consistent with other jurisdictions throughout
the region and the state. The proposed ordinance would remove the stay provision and adopt a new
procedure for the timely submission and processing of bid protests. These procedures include timelines
by which an actual or prospective bidder may protest an invitation for bid or a contract award, payment of
a non-refundable fee of $50.00 to cover administrative costs associated with processing the protest, and
a requirement that protesting bidders attend the City Council meeting at which the contract award will be
considered.
The proposed ordinance clarifies the City Administrator’s role in processing bid protests and making
recommendations to the City Council. In accordance with existing law, the ordinance retains and clarifies
that the City Council may, at its sole discretion, waive immaterial and inconsequential bid irregularities,
accept or reject bids, or abandon a project.

Page 16 of 187

REASON FOR RECOMMENDATION:
The current bid protest procedures in Section 4.04.360 include procedures that are not required by law
and carry the potential to significantly disrupt the orderly conduct of the City’s business. Additionally, there
are several ambiguities regarding the processing of bid protests. The proposed ordinance will remove
unnecessary procedures and provide a clear and streamlined process for the submission and resolution
of protests. This will provide clarity to actual or prospective bidders and improve the efficiency of the City’s
contract award process. Finally, there are costs associated with the City’s internal processing of bid
protests which will be alleviated in part by the requirement to pay a non-refundable fee when submitting a
protest. This is also intended to deter frivolous protests.
FISCAL IMPACT:
Minimal. While it will provide a $50.00 non-refundable fee, that fee partially offsets the costs associated
with processing a bid protest. Prior bid protest costs were absorbed by the City. This does not generate
revenue or provide a source of funds. The number of bid protests is expected to remain small.
ALTERNATIVES:
1. Continue the item to a future meeting;
2. Direct staff to revise the ordinance and return to introduce the updated ordinance at a future
meeting; or
3. Not approve the ordinance and leave the current bid protest procedures in place.
ACTIONS FOLLOWING APPROVAL:
Post the ordinance for 30-days; the ordinance will become effective thirty (30) days from the date of
adoption.

Page 17 of 187

ORDINANCE # 538-26
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA AMENDING
SECTION 4.04.360 OF THE CHOWCHILLA MUNICIPAL CODE RELATED TO BID PROTEST
PROCEDURES
THE CITY COUNCIL OF THE CITY OF CHOWCHILLA DOES HEREBY ORDAIN AS
FOLLOWS:
SECTION 1. Section 4.04.360 (“Bid Protests”) of the City Municipal Code is hereby amended to
read as follows:
4.04.360 Bid Protests.
A. Right to Protest.
Any actual or prospective bidder, offeror, or contractor (excluding subcontractors or others with a
secondary interest) who is aggrieved in connection with the solicitation of a contract may protest
to the City Council.
B. Procedure for Bid Protests.
1. A protest with respect to an invitation for bids shall be submitted to the City
Administrator in writing no later than 5:00 p.m. on the closing date of bids.
2. A protest regarding the award of a contract must be submitted in writing, to the City
Administrator, within five (5) calendar days after such aggrieved person, who submitted a timely
bid, knows or should have known of the facts giving rise thereto.
3. The protestor is required to submit a non-refundable fee of $50 to cover the
administrative cost of processing the protest.
4. The City Administrator or designee shall consider the grounds of a timely protest
when making recommendations to the City Council regarding an invitation for bids or the award
of a contract. Such recommendations are made at the sole and absolute discretion of the City
Administrator or designee. The City Administrator or designee shall provide notice to a protestor
regarding their recommendation to the City Council. Such notice shall be provided five (5)
calendar days prior to the meeting of the City Council in which a contract subject to the protest is
awarded. However, if a protestor does not receive notice of the City Administrator or designee’s
recommendation prior to a meeting of the City Council in which a contract subject to their protest
is awarded, it will not constitute a waiver of any requirements in this section.
5. If a protestor does not attend a meeting in which a contract subject to their protest
is made, such protest shall be considered waived.
6. A copy of the protest and all supporting documents must be concurrently
transmitted by fax or by email, by or before the Bid Protest Deadline, to the protested bidder and
any other bidder who has a reasonable prospect of receiving an award depending on the outcome
of the protest.

Page 18 of 187

7. The City reserves the right, acting in its sole discretion, to waive immaterial bid
irregularities, to accept or reject any and all bids, or to abandon a project entirely.
SECTION 2. This ordinance supersedes and replaces any prior language in Section 4.04.360 or
elsewhere in the Municipal Code that deals with Bid Protests.
SECTION 3. EFFECTIVE DATE.
adoption.

This ordinance shall take effect thirty (30) days after

INTRODUCED at a regular City Council meeting on the 14th day of April, 2026.
PASSED AND ADOPTED by the City Council of the City of Chowchilla, this 28th day of April
2026, by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:

Mayor Kelly Smith
ATTEST:

Joann McClendon, CMC
City Clerk

Page 19 of 187

Item 3.4

REPORT TO THE CITY COUNCIL

CLICK HERE
TO RETURN TO
THE AGENDA

Meeting of: Tuesday, April 28, 2026
AGENDA SECTION:

Consent

SUBJECT:

Consideration and Adoption of a Resolution of the City Council of the City
of Chowchilla Approving Amendments to the City of Chowchilla
Procurement Policy Related to Bid Protest Procedures.

PREPARED BY:

Rod Pruett, City Administrator

ATTACHMENTS:

Proposed Resolution, Procurement Policy

REVIEWED BY
ADMINISTRATOR

☒

REVIEWED BY
ATTORNEY

☒

REVIEWED BY
FINANCE

☒

RECOMMENDATION:
That the City Council approve the proposed resolution which will amend the City’s Procurement Policy
related to bid protest procedures. This amendment will ensure the bid protest guidelines of the
Procurement Policy are consistent with the procedures of the Chowchilla Municipal Code, as recently
amended.
BACKGROUND:
On November 12, 2000, the City Council adopted an Ordinance adding Chapter 4.04 to the Chowchilla
Municipal Code related to public purchasing and procurement. Section 4.04.360 of the Chowchilla
Municipal Code was recently amended by Ordinance as it relates to the procedures for bid protests.
Pursuant to Chapter 4.04 of the Chowchilla Municipal Code, the City Council has adopted CPP-F2.2 (the
“Procurement Policy”) which also includes guidelines related to bid protests. A copy of the current
Procurement Policy is included with this Staff Report for reference.
Section 4.04.050 of the Chowchilla Municipal Code requires the Procurement Policy to be consistent with
Chapter 4.04 of the Chowchilla Municipal Code.
REASON FOR RECOMMENDATION:
The proposed resolution would amend Section I of Chapter 9 of the Procurement Policy to ensure that the
bid protest guidelines are consistent with the Chowchilla Municipal Code.
FISCAL IMPACT:
None.
ALTERNATIVES:
There are no reasonable alternatives. Without the amendment, the Procurement Policy would be
inconsistent with the Chowchilla Municipal Code.

Page 20 of 187

ACTIONS FOLLOWING APPROVAL:
City Staff will replace Section I of Chapter 9 of the Procurement Policy with the draft language in Exhibit
“A” to the proposed resolution.

Page 21 of 187

COUNCIL RESOLUTION # XX-26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA
APPROVING AMENDMENTS TO THE CITY OF CHOWCHILLA PROCUREMENT POLICY
RELATED TO BID PROTEST PROCEDURES
WHEREAS, on November 12, 2000, the City Council of the City of Chowchilla (“City”)
adopted Ordinance #414-00 adding Chapter 4.04 of Title 4 to the Chowchilla Municipal Code
relating to public purchasing and procurement; and
WHEREAS. Section 4.04.040 of the Chowchilla Municipal Code established the position
of the purchasing agent; and
WHEREAS, Section 4.04.050 of the Chowchilla Municipal Code identifies the authority
and duties of the purchasing agent; and
WHEREAS, Section 4.04.050, subdivision “C” authorizes the purchasing agent, with the
approval of the City Council, to adopt operational procedures related to procurement, provided
such operational procedures are consistent with the procedures set forth in Chapter 4.04 of the
Chowchilla Municipal Code; and
WHEREAS, in accordance with Chapter 4.04 of the Chowchilla Municipal Code, the City
has adopted CPP-F2.2 (the “Procurement Policy”) setting forth the City’s guidelines for public
procurement in greater detail than the Chowchilla Municipal Code; and
WHEREAS, Section I of Chapter 9 of the Procurement Policy provides guidelines related
to bid protest procedures; and
WHEREAS, on April 28, 2026, the City Council adopted an Ordinance amending Section
4.04.360 of the Chowchilla Municipal Code, establishing new procedures for protests of publicly
bid contracts; and
WHEREAS, the purchasing agent has prepared, and seeks the City Council’s approval
of, an amendment to Section I of Chapter 9 of the Procurement Policy to be consistent with
Section 4.04.360 of the Chowchilla Municipal Code as recently amended. A true and correct copy
of the amendment to Section I of Chapter 9 of the Procurement Policy is attached hereto as
Exhibit “A” and incorporated herein by reference.
///
///
///
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby
finds, determines and declares the following:
1.
The Bid Protest Procedures attached hereto as Exhibit A are hereby approved and
shall supersede all prior directives, memoranda, and practices related to protests of publicly bid
contracts.
2.
The purchasing agent is directed to replace Section I of Chapter 9 of the
Procurement Policy with the approved procedures in Exhibit “A” to this resolution.

Page 22 of 187

PASSED AND ADOPTED by the City Council of the City of Chowchilla this 28th day of April,
2026 by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:

Mayor Kelly Smith
ATTEST:

Joann McClendon, CMC
City Clerk

Page 23 of 187

EXHIBIT “A” – Amendment to Section I of Chapter 9 of Procurement Policy
(“CPP-F2.2”)
SECTION I – RIGHTS
1. RIGHT OF NONDISCLOSURE. Bidders and offerors shall identify proprietary
information in any bid or proposal submitted to the City. Information determined
to be proprietary will be maintained as confidential by the City to the extent
permitted by law. The City will notify any bidder or offeror when the City receives
a request for information and the City determines information previously identified
as proprietary must be disclosed as required by applicable law. Written material
pertaining to any identified proprietary information and the City’s determination
and disclosure of same shall be retained in the solicitation file that is maintained
by the City Administrator.
2. RIGHT TO PROTEST. Any actual or prospective bidder, offeror, or contractor
(excluding subcontractors or others with a secondary interest) who is aggrieved
in connection with the solicitation of a contract may protest to the City Council.
3. PROCEDURE FOR BID PROTESTS. All protests with respect to an invitation for
bids or an award of contract are subject to the procedures set forth in Subdivision
“B” of Section 4.04.360 of the Chowchilla Municipal Code.

Page 24 of 187

Item 3.5

REPORT TO THE CITY COUNCIL

CLICK HERE
TO RETURN TO
THE AGENDA

Meeting of: Tuesday, April 28, 2026
AGENDA SECTION:

Consent

SUBJECT:

Consideration of a City Council Resolution Designating Eligible Projects for
SB 1 The Road Repair and Accountability Act of 2017

PREPARED BY:

Christina Soares, Administrative Analyst

APPROVED BY:

Dustin Ensminger, Public Works Director

ATTACHMENTS:

Resolution

REVIEWED BY
ADMINISTRATOR

☒

REVIEWED BY
ATTORNEY

☒

REVIEWED BY
FINANCE

☒

RECOMMENDATION:
It is recommended that the Council approve the proposed resolution which will designate specific street
segments for road improvements and be eligible for funding from SB 1 Road Maintenance and
Rehabilitation Account (RMRA). This is an annual requirement that municipalities must complete in order
to receive RMRA funds.
BACKGROUND:
Senate Bill 1 (Road Repair and Accountability Act of 2017) created funding known as the Road
Maintenance and Rehabilitation Account (RMRA) that can be used to maintain local streets contingent on
meeting certain guidelines and procedures The City may designate multiple years of funding for a single
project, however, a resolution and project list must be adopted each fiscal year the RMRA funding is
sought. (Streets & Highways Code Section 2304) The RMRA program contains a local agency
maintenance of effort (MOE) requirement that applies to agencies receiving the funds. The authorizing
legislation, SB1, states that the MOE requirement is to ensure that these new road funds do not supplant
existing levels of city and county general fund revenue spending on streets and roads. The MOE
requirement specifies that jurisdictions utilizing RMRA funds must maintain general fund spending for
street, road, and highway purposes at no less than the average from 2009-10, 2010-11, and 2011-12. The
City of Chowchilla’s published MOE is $14,502 and will be included in the FY 2026-2027 Budget. Failure
to meet the MOE can result in forfeiture of RMRA funds.
REASON FOR RECOMMENDATION:
Local agencies must adopt a list of proposed projects as part of their annual Road Fund budget and provide
this list to the California Transportation Commission (CTC) prior to the specified deadline date. For FY
2026-2027, the deadline is July 1, 2025. RMRA funds will be distributed by the State Controller’s Office by
formula pursuant to SHC section 2032(h). The City of Chowchilla is projected to received approximately
$540,688 for FY 2026-2027.

Page 25 of 187

FISCAL IMPACT:
The proposed project expenditures and revenues will be included in the FY 2026-27 Budget. The total
amount of RMRA funds of $540,688 in addition to the MOE of $14,502 from the General Fund for a total
of $555,190 will be allocated to the Rd 15 ½ Rehabilitation project. Additional funding for the projects will
come from a combination of Measure T and Gas Tax funds.
ALTERNATIVES:
None recommended.
ACTIONS FOLLOWING APPROVAL:
The Resolution will be uploaded to the California Transportation Commission’s CalSMART system and
secure funding for the project.

Page 26 of 187

COUNCIL RESOLUTION # XX-26
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA
DESIGNATING ELIGIBLE PROJECTS FOR FISCAL YEAR 2026-27 FUNDED BY SB 1: THE ROAD
REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5,
Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to
address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents
of our City are aware of the projects proposed for funding in our community and which projects have been
completed each fiscal year; and
WHEREAS, the City of Chowchilla must adopt by resolution a list of projects proposed to receive
fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1,
which must include a description and the location of each proposed project, a proposed schedule for the
project’s completion, the estimated useful life of the improvement; and
WHEREAS, the City will receive an estimated $540,688 in RMRA funding in Fiscal Year 2026-2027
from SB 1; and
WHEREAS, the City is receiving SB 1 funding, and will enable the City of Chowchilla to continue
essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging
bridges, and increasing access and mobility options for the traveling public that would not have otherwise
been possible without SB 1; and
WHEREAS, the City has undergone a robust public process to ensure public input into out
community’s transportation priorities/the project list; and
WHEREAS, the City of Chowchilla used a Pavement Management System to develop the SB 1
project list to ensure revenues are being used on the most high-priority and cost-effective projects that also
meet the community’s priorities for transportation investment; and
WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate streets/roads, and
add active transportation infrastructure throughout the City this year and other similar projects into the
future; and
WHEREAS, the 2020 California Statewide Local Streets and Roads Needs Assessment found that
the City’s streets and roads are in an at-risk condition and this revenue will help us increase the overall
quality of our road system and over the next decade will bring our streets and roads into a good condition;
and
WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure
with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using
cutting-edge technology, materials, and practices, will have significant positive co-benefits statewide.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds,
determines and declares the following:
1. The foregoing recitals are true and correct.
2. The following list of proposed projects will be funded in part or sorely with Fiscal Year 2026-27
Road Maintenance and Rehabilitation Account revenues:
Project Title: Rd 15 ½ Rehab. Project

Page 27 of 187

Project Description: Pavement rehabilitation project per the City’s Pavement Management
System; Road 15 ½ will be reconstructed from 15th Street to Ave 24 ½ to improve the
pavement surface.
Project Location: Road 15 ½ from 15th St to Ave 24 ½
Estimated Project Schedule:

Engineering Design – FY 25/26
Construction – FY 26/27
Project Completion – FY 26/27

Estimated Project Useful Life: 20 years
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 28th day of April, 2026 by
the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:

APPROVED:

Kelly Smith, Mayor
ATTEST:

Joann McClendon, CMC
City Clerk

Page 28 of 187

Item 3.6
CLICK HERE
TO RETURN TO
THE AGENDA

REPORT TO THE CITY COUNCIL
Meeting of: Tuesday, April 28, 2026
AGENDA SECTION:

Consent

SUBJECT:

Consideration and Adoption of a City Council Resolution Renewing
Ordinance 509-22, Chowchilla Police Department Policy No. 705, and the
Annual Military Equipment Report

PREPARED BY:

Daniel Denny, Lieutenant, Chowchilla Police Department

ATTACHMENTS:

Resolution, Policy No. 705, Annual Military Equipment Report

REVIEWED BY
ADMINISTRATOR

☒

REVIEWED BY
ATTORNEY

☒

REVIEWED BY
FINANCE

☒

RECOMMENDATION:
Staff recommends that the City Council adopt the resolution renewing Military Equipment Use Policy,
Policy 705 of the Chowchilla PD Policy Manual, and the Annual Military Equipment Report.
BACKGROUND:
On January 1, 2022, Governor Newsom signed into law Assembly Bill 481, codified in Government Code
sections 7070 through 7075. This new law requires law enforcement agencies to obtain approval from the
applicable governing body of a military equipment use policy (adopted by ordinance) before obtaining
funding, acquiring, or using military equipment.
The Department seeks City Council’s approval of Policy 705 (Attachment 2), by renewing Ordinance 50922 (Attachment 1), so that the Department is authorized to continue using the equipment as specified in
the Policy. The purpose of Policy 705 is to safeguard the public’s welfare, safety, civil rights, and civil
liberties. Policy 705 ensures that there are adequate safeguards in place for the use of such equipment,
including transparency, oversight, and accountability.
Policy 705 includes an inventory of each piece of equipment identified in Government Code section 7070
that is currently owned by the City, and the current use and cost of each piece of equipment. Policy 705
also allows for other law enforcement agencies to use military equipment when assisting in Chowchilla as
long as the assisting agency has a similar military equipment use policy adopted by its governing body.
As required by AB 481, Policy 705 has been posted on the Department’s website. If Policy 705 is reapproved, it will remain posted and publicly available on the Department’s website, along with the Annual
Report, for as long as the military equipment is available for use.
As a result of the approval of Policy 705 in 2022, AB 481 requires the Department to annually submit a
military equipment report for each approved type of military equipment to the City Council for as long as
the military equipment is available for use. Additionally, the Department must make each annual report
publicly available on its website for as long as the equipment is available for use. The annual report must
be presented to and reviewed by the City Council at a regular meeting each year, and the City Council

Page 29 of 187

must determine at the annual meeting whether each type of military equipment identified in the report
continues to comply with the standard of approval and determine whether to renew the ordinance
approving Policy 705.
The Annual Report contains a comprehensive list of each type of equipment owned by the City and
contains all required information in accordance with Government Code section 7072. Future acquisition
of any equipment deemed to be “military equipment” will comply with applicable funding and procurement
requirements.
REASON FOR RECOMMENDATION:
Per Assembly Bill 481, the Policy and ordinance (which adopted the Policy) must be renewed annually to
allow the Department to continue using existing military equipment in the Department’s inventory and
acquire new equipment for operational needs. Policy 705, Ordinance 509-22, and the Annual Military
Equipment Report comply with the requirements of AB 481 (codified in Gov. Code section 7072) and each
type of equipment identified in the Annual Report has complied with the applicable standards in
Government Code section 7071(d).
Department Policy 705 was adopted by Ordinance 509-22 in compliance with AB 481. “Military equipment”
is defined to include, without limitation, the following equipment: unmanned aerial or ground vehicles,
armored vehicles, command and control vehicles, pepper balls, less lethal shotguns, less lethal 40mm
projectile launchers, long range acoustic devices, flashbangs, and foundational equipment, such as rifles.
This equipment is used as a component of overall best practices for law enforcement agencies throughout
the country. Authorization to continue using this equipment is necessary to protect the safety and welfare
of the public and peace officers within the City.
There is a significant interest in ensuring that the Department continues to have access to equipment that
provides the Department as many resources as possible to safeguard lives, ensure safety, and protect civil
liberties. The use of military equipment is crucial to the Department’s mission and will continue to be strictly
regulated through internal processes and oversight, transparency, and City Council and public review.
FISCAL IMPACT:
None
ALTERNATIVES:
Pros:
• Compliance with AB 481.
Cons:
• Failure to comply with AB 481 would result in the police department’s inability to continue using
the equipment as specified in Policy 705.

Page 30 of 187

COUNCIL RESOLUTION # XX-26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA
RENEWING ORDINANCE 509-22, CHOWCHILLA POLICE DEPARTMENT POLICY NO. 705, AND
THE 2025 ANNUAL MILITARY EQUIPMENT REPORT
WHEREAS, the City Council adopted Chowchilla Police Department Policy 705 (Military Equipment
Use) with the adoption of Ordinance 509-22 on April 12, 2022; and
WHEREAS, in accordance with Government Code section 7070, et seq., enacted by AB 481, the
Police Department has prepared the 2025 Annual Military Equipment Report (“Annual Report”), which is
incorporated herein by reference, for review by the City Council; and
WHEREAS, at its regular meeting on May 9, 2023, the City Council duly reviewed the Annual
Report, Ordinance 509-22, and Policy 705, and reviewed the associated staff report, and considered all
public input and other information pertaining to the Annual Report and the authorization to use military
equipment presented at the meeting.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds,
determines and declares the following:
1. Based on the Annual Report, the City Council determines that each type of military equipment
identified in the Annual Report has complied with the applicable standards for approval as set
forth in Government Code section 7071, subd. (d).
2. Policy 705 of the Police Department Manual and Ordinance 509-22, which adopted Policy 705
on April 12, 2022, are hereby renewed.
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 28th day of April, 2026 by the
following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:

Mayor Kelly Smith
ATTEST:

Joann McClendon, CMC
City Clerk

Page 31 of 187

Policy

Chowchilla Police Department

705

Chowchilla PD Policy Manual

Military Equipment
705.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting
requirements of military equipment (Government Code § 7070; Government Code § 7071;
Government Code § 7072).
705.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):
Governing body – The elected or appointed body that oversees the Department.
Military equipment – Includes but is not limited to the following:

•

Unmanned, remotely piloted, powered aerial or ground vehicles.

•

Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers.

•

High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks,
five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached.

•

Tracked armored vehicles that provide ballistic protection to their occupants.

•

Command and control vehicles that are either built or modified to facilitate the
operational control and direction of public safety units.

•

Weaponized aircraft, vessels, or vehicles of any kind.

•

Battering rams, slugs, and breaching apparatuses that are explosive in nature. This
does not include a handheld, one-person ram.

•

Firearms and ammunition of_.50 caliber or greater, excluding standard-issue shotguns
and standard-issue shotgun ammunition.

•

Specialized firearms and ammunition of less than_.50 caliber, including firearms and
accessories identified as assault weapons in Penal Code § 30510 and Penal Code §
30515, with the exception of standard-issue firearms.

•

Any firearm or firearm accessory that is designed to launch explosive projectiles.

•

Noise-flash diversionary devices and explosive breaching tools.

•

Munitions containing tear gas or OC, excluding standard, service-issued handheld
pepper spray.

•

Area denial electroshock devices, microwave weapons, water cannons, long-range
acoustic devices (LRADs), acoustic hailing devices, and sound cannons.

•

Kinetic energy weapons and munitions.

•

Any other equipment as determined by a governing body or a state agency to require
additional oversight.

Military Equipment - 1

Page 32 of 187

Chowchilla Police Department
Chowchilla PD Policy Manual

Military Equipment

705.2 POLICY
It is the policy of the Chowchilla Police Department that members of this department comply with
the provisions of Government Code § 7071 with respect to military equipment.
705.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police should designate a member of this department to act as the military equipment
coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a)

Acting as liaison to the governing body for matters related to the requirements of this
policy.

(b)

Identifying department equipment that qualifies as military equipment in the current
possession of the Department, or the equipment the Department intends to acquire
that requires approval by the governing body.

(c)

Conducting an inventory of all military equipment at least annually.

(d)

Collaborating with any allied agency that may use military equipment within the
jurisdiction of Chowchilla Police Department (Government Code § 7071).

(e)

Preparing for, scheduling, and coordinating the annual community engagement
meeting to include:
1.

Publicizing the details of the meeting.

Preparing for public questions regarding the department’s funding, acquisition,
and use of equipment.

(f)

Preparing the annual military equipment report for submission to the Chief of Police
and ensuring that the report is made available on the department website (Government
Code § 7072).

(g)

Establishing the procedure for a person to register a complaint or concern, or how that
person may submit a question about the use of a type of military equipment, and how
the Department will respond in a timely manner.

705.4 MILITARY EQUIPMENT INVENTORY
The following constitutes a list of qualifying equipment for the Department:
See attachment: Military Equipment - Drones and Weapons.pdf
705.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by
way of an ordinance adopting the military equipment policy. As part of the approval process, the
Chief of Police or the authorized designee shall ensure the proposed military equipment policy is
submitted to the governing body and is available on the department website at least 30 days prior
to any public hearing concerning the military equipment at issue (Government Code § 7071). The
military equipment policy must be approved by the governing body prior to engaging in any of the
following (Government Code § 7071):

Military Equipment - 2

Page 33 of 187

Chowchilla Police Department
Chowchilla PD Policy Manual

Military Equipment

(a)

Requesting military equipment made available pursuant to 10 USC § 2576a.

(b)

Seeking funds for military equipment, including but not limited to applying for a grant,
soliciting or accepting private, local, state, or federal funds, in-kind donations, or other
donations or transfers.

(c)

Acquiring military equipment either permanently or temporarily, including by borrowing
or leasing.

(d)

Collaborating with another law enforcement agency in the deployment or other use of
military equipment within the jurisdiction of this department.

(e)

Using any new or existing military equipment for a purpose, in a manner, or by a person
not previously approved by the governing body.

(f)

Soliciting or responding to a proposal for, or entering into an agreement with, any other
person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the
use of military equipment.

(g)

Acquiring military equipment through any means not provided above.

705.6 COORDINATION WITH OTHER JURISDICTIONS
Military equipment should not be used by any other law enforcement agency or member in this
jurisdiction unless the military equipment is approved for use in accordance with this policy.
705.7 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should
submit a military equipment report to the governing body for each type of military equipment
approved within one year of approval, and annually thereafter for as long as the military equipment
is available for Department use (Government Code § 7072).
The Chief of Police or the authorized designee should also make each annual military equipment
report publicly available on the department website for as long as the military equipment is
available for use. The report shall include all information required by Government Code § 7072
for the preceding calendar year for each type of military equipment in department inventory.
705.8 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold
at least one well-publicized and conveniently located community engagement meeting, at which
the Department should discuss the report and respond to public questions regarding the funding,
acquisition, or use of military equipment.

Military Equipment - 3

Page 34 of 187

Chowchilla PD Policy Manual

Attachments

Attachments - 4

Page 35 of 187

Attachment
Chowchilla PD Policy Manual

Military Equipment - Drones and Weapons.pdf
Military Equipment - Drones and Weapons.pdf

Military Equipment - Drones and Weapons.pdf
-5

Page 36 of 187

1. Unmanned Aircraft System (UAS): An unmanned aircraft along with the
associated equipment necessary to control it remotely.
a. Description, quantity, capabilities, and purchase cost of current UAS:
i.

DJI MAVIC ENTERPRISE DUALS, cost: $3,850 each, quantity: 2.
UAS that has a color and inferred camera as well as audible speaker
and light. Capable of video recording and weighs 899 grams, approx.
30 minutes of flight time.
ii. AUTEL EVO II – 8K, cost $1,616 each, quantity:2. UAS has color
camera. Capable of video recording and weighs approximately 1127
grams, with approximately 40 minutes of flight time.
iii. DJI MAVIC MINI, $499 each, quantity 2. UAS has color video
recording capabilities. UAS weighs approximately 249 grams with
approximately 30 minutes of flight time.

b. Purpose
To be deployed when its view would assist officers or incident
commanders with the following situations, which include but are not
limited to:
i. major collision investigations.
ii. search for missing persons.
iii. natural disaster management.
iv. crime scene photography.
v. SWAT, tactical or other public safety and life preservation missions.
vi. In response to specific requests from local, state or federal fire
authorities for fire response and/or prevention.
c. Authorized Use
Only assigned operators who have completed the required training
shall be permitted to operate the DJI Mavic Mini during approved
missions.
d. Expected Life Span
All UAS equipment, 3-5 years.
e. Fiscal Impact
Annual maintenance and battery replacement cost is approximately $1,500.
f.

Training
All Department UAS operators are licensed by the Federal Aviation
Administration for UAS operation. In addition, each operator must attend a 40hour department training and ongoing quarterly training.

Page 37 of 187

g. Legal and Procedural Rules
Use is established under General Order 525.09, FAA Regulation 14 CFR Part
107, and the Chowchilla Police Department UAS policy. It is the policy of the
Chowchilla Police Department to utilize UAS only for official law enforcement
purposes, and in a manner that respects the privacy of our community,
pursuant to State and Federal law.

2. Less Lethal Shotgun: Less Lethal Shotgun is used to deploy the less lethal 12gauge Super-Sock Beanbag Round.
a. Description, quantity, capabilities, and purchase cost
i. REMINGTON 870 LESS LETHAL SHOTGUN, cost: $946,
quantity: 02. The Remington 870 Less Lethal Shotgun is used to
deploy the less lethal 12-gauge Drag Stabilized Beanbag Round
up to a distance of 75 feet. The range of the weapon system helps
to maintain space between officers and a suspect reducing the
immediacy of the threat which is a principle of De-escalation.
ii. 12-GAUGE DRAG STABILIZED BEAN BAG ROUND, cost: $5,
quantity: 50 A less lethal 2.4-inch 12-gauge shotgun round firing a
ballistic fiber bag filled with 40 grams of lead shot at a velocity of 270
feet per second (FPS). Drag Stabilized Bean Bag rounds are
discharged from a dedicated 12-gauge shotgun that is
distinguishable by an orange butt stock and fore grip. This round
provides accurate and effective performance when fired from the
approved distance of not fewer than five (5) feet. The maximum
effective range of this munition is up to 75 feet from the target. The
Model 3027 Drag Stabilized Bean Bag is in its deployed state
immediately upon exiting the barrel. It does not require a minimum
range to “unfold” or “stabilize.” The Drag Stabilized Bean Bag round
is a 40-Gram tear shaped bag projectile. However, accuracy is
relative to the shotgun, barrel length, environmental conditions, and
the operator. The Drag stabilized Bean Bag Round is a very accurate.
However, effectiveness depends on many variables, such as
distance, clothing, stature, and the point where the projectile impacts.

b. Purpose
To limit the escalation of conflict where employment of lethal
force is prohibited or undesirable.
c. Authorized Use
Situations for use of the less lethal weapon systems may include, but are not
limited to:

Page 38 of 187

i.
ii.
iii.
iv.
v.

Self-destructive, dangerous and/or combative individuals.
Riot/crowd control and civil unrest incidents.
Circumstances where a tactical advantage can be obtained.
Potentially vicious animals.
Training exercises or approved demonstrations.

d. Lifespan
Remington 870 Less Lethal
Shotgun- 25 years. Super
Drag Stabilized - No listed
expiration date.
e. Fiscal Impact
Annual maintenance is approximately $50 for each shotgun.
f.

Training
All officers are trained in the 12 gauge less lethal shotgun as a less lethal
option by in-service training. SWAT personnel receive additional training
internally when they transfer to the unit. SWAT operators who utilize these
munitions have been through and successfully completed a POST approved
gas school and/or trained in house by POST certified chemical agent
instructors for muzzle blast training.

g. Legal and Procedural Rules
It is the policy of the Chowchilla Police Department, to utilize the less
lethal shotgun only for official law enforcement purposes, and pursuant
to State and Federal law, including those regarding the use of force.

3. Rifles: Guns that are fired from shoulder level, having a long spirally grooved
barrel intended to make bullets spin and thereby have greater accuracy over a
long distance.
a. Description, quantity, capabilities, and purchase cost
i. Colt M4 RIFLE, cost: $1500, quantity: 21. The M4 rifle, officially
designated Patrol Rifle, Caliber 5.56MM.
ii. Sig Sauer MCX, cost $1993.93, quantity: 2, Caliber 5.56 AR-15
style rifle w/ red dot sight, suppressor and night vision capabilities
designed for use for Chowchilla Police department Officers
assigned to the Madera County Regional SWAT Team.
iii. Colt AR10 RIFLE, cost $4500, quantity: 1, Caliber .308 The Colt
AR10 with 16" Barrel, is an entry level AR-10 style rifle. This firearm
is chambered in .308 Winchester/7.62 NATO Rifle and has a 16"

Page 39 of 187

barrel. The magazine holds up to 20 rounds of ammunition and the
rifle has a collapsible stock. This rifle is primarily used in an
overwatch capacity to protect the community during large events
iv. Federal 5.56 CALIBER 55/62 GRAIN RIFLE ROUND, cost: $289 per
case of 500, quantity: 20 cases. Direct impingement, gas piston,
suppressed, unsuppressed, inertia, bolt, pump, supersonic,
subsonic, rifle, mid-length, carbine Federal ammunition delivers
superior performance for a variety of applications.
v. Federal 40 S&W 180 gr HST JHP, cost: $309.21 per case of 500,
quantity: 20 cases.
vi. Federal Premium 308 Winchester 168g Sierra Match king BTHP,
cost: $60 per box of 20, quantity: 10.
b. Purpose
To be used as precision weapons to address a threat with more
precision and/or greater distances than a handgun, if present and
feasible.
c. Authorized Use
Only members that are POST certified are authorized to use a rifle.
d. Lifespan
Colt M4 Rifle – 15 years.
Sig Sauer MCX Rifle – 15 years
Colt AR 10 Rifle – 15 years
Federal Ammunition – no expiration
e. Fiscal Impact
Annual maintenance is approximately $50 for each rifle.
f.

Training
Prior to using a rifle, officers must be certified by POST instructors in the
operation of the rifle. Additionally, all members that operate any rifle are
required to pass a range qualification two times a year.

g. Legal and Procedural Rules
Use is established under Chowchilla Police Department Policy. It is the policy of the
Chowchilla Police Department to utilize rifles only for official law enforcement purposes, and
pursuant to State and Federal law regarding the use

Page 40 of 187

Page 41 of 187

Page 42 of 187

i.
ii.
iii.
iv.
v.

d. Lifespan
Remington 870 Less Lethal
Shotgun- 25 years. Super
Drag Stabilized - No listed
expiration date.
e. Fiscal Impact
Annual maintenance is approximately $50 for each shotgun.
f.

Page 43 of 187

Page 44 of 187

Item 3.7

REPORT TO THE CITY COUNCIL

CLICK HERE
TO RETURN TO
THE AGENDA

Meeting of: Tuesday, April 28, 2026
AGENDA SECTION:

Consent

SUBJECT:

Informational Item – Excel Project Management Program (PMP) Update

PREPARED BY:

Vanessa Galvez-Escobar, Deputy City Clerk

APPROVED BY:

Joann McClendon, City Clerk

ATTACHMENTS:

Excel Project Management Program City Council Departmental Spreadsheets

REVIEWED BY
ADMINISTRATOR

☒

REVIEWED BY
ATTORNEY

☒

REVIEWED BY
FINANCE

☒

RECOMMENDATION:
Informational item only.
BACKGROUND:
The City Council has requested that staff bring back the Project Management Program (PMP) reports on
a quarterly basis for follow-up and review. Below you will find a quick review of ongoing items, in progress,
or on hold. The last report was brought to the Council on January 27, 2026.
City Staff emailed each department their project list to update for the dates between January and March
2026.

Page 45 of 187

Quarterly: January to March
2026

Smart Sheets
Department: Administration
Project / Description

Human Resource

Date

Update

Motion/Approvals

Info Source

Status

HR Manager Trinette Martinez reports to City Administrator
Rod Pruett and most updates will be from the City
Administrator. As the City Clerk, however, and per our
municipal code, I will still manage claims against the City,
accept subpoenas, and have agreed to continuing to manage
insurance for City fleet and property.

Consideration and Adoption of a City Council Resolution
Adopting the Revised Transit Services Drug and Alcohol
Testing Policy (McClendon)
Consideration and Adoption of a City Council Resolution
Adopting the Revised Transit Services Drug and Alcohol
Testing Policy (McClendon)

Motion by Mayor Pro Tem Ahmed, Seconded by Council
Member Barragan to Approve the Consent Calendar as
Presented. Motion passed by roll call vote.

On Going

Events
City Administrator Mr. Pruett
2/11-13/2026 LOCC City Manager Conference
2/21/2026 CAF Dinner
3/12/2026 LOCC Quarterly Division Dinner-Tracy City Hall
3/23-3/25 ICSC Monterey
3/26/2026 Goal Setting - 2pm
3/26/2026 Special Council Meeting - 4PM
3/28/2026 Fair Dinner (City has a table)
4/11-12/2026 Portuguese Festa
4/24/2026 CAF Golf Tournament
4/22-24/2026 LOCC City Leaders Summit
4/29/2026 MCEDC Economic Summit- San Joaquin Winery

Completed
Completed
Completed
Completed
Completed
Completed
Completed

Notes

Page 46 of 187

Smart Sheets

Quarterly: January to March 2026

Department: Public Works
Project / Description

Date

Update

Motion/Approvals

Info Source

Status

ADHOC: Wastewater
Treatment Plant

On Hold

ADHOC: Park Fields

In Progress

Fairmead WWTP Project
(2016)

4/2024

State Water Resources Control Board anticipates funding agreement by
August 2024. High Speed Rail anticipates reimbursement agreement
prior to State's.

In Progress

11/2024

Consideration and Adoption of a City Council Resolution Awarding a
Contract to VM Lyles Company for Civic Center and Well 15 Generator
Improvements Project in the amount of $1,190,560.00 and Authorizing
the City Administrator or Designee to Execute All Related Documents
Thereto and Amending the Fiscal Year 2024/25 City Budget (Rogers)

In Progress

12/24

Consideration and Adoption of a City Council Resolution Awarding the
Contract for Well No. 16 Improvements to Alliance Construction
Solutions, Inc. in the Amount of $924,300, Authorizing the City
Administrator or Designee to Execute Related Documents, and
Amending the Fiscal Year 2024/25 City Budget (Rogers)

In Progress

1/2025

Drilling ongoing.

Well 15

Well 16

Bridge Preventative
Maintenance Project

High Speed Rail

11/2024

Consideration and Adoption of a City Council Resolution Awarding a
Contract to Cornerstone Structural Engineering Group, Inc. for the
Bridge Preventative Maintenance Project in the amount of $37,300.00
and Authorizing the City Administrator or Designee to Execute All
Related Documents Thereto (Rogers)

8/2025

The Executive Committee of the San Joaquin Valley Regional Policy
Council has requested member agencies to compile a list of potential
projects related to State Route 99 (SR 99), Interstate 5 (I-5), and
Passenger Rail. This list may be used to advocate for the $4 billion in
retracted Federal High-Speed Rail funding. Working with MCTC, we
submitted the Roundabouts Project as a potential project for
consideration.

Motion by Council Member Troost,
Seconded by Mayor Pro Tem Ahmed to
Approve City Council Resolution #6124, Awarding a Contract to
Cornerstone Structural Engineering
Group, Inc. for the Bridge Preventative
Maintenance Project in the amount of
$37,300.00 and Authorizing the City
Administrator or Designee to Execute
All Related Documents Thereto.
Motion passed with Council Member
Barragan absent.

In Progress

Weekly Report
8/2/2025
Complete

Notes

Page 47 of 187

Scour Countermeasure
Project

11/2024

Motion by Council Member Troost,
Seconded by Council Member Chavez
to Approve City Council Resolution
#62-24, Awarding a Contract to
Consideration and Adoption of a City Council Resolution Awarding a
Cornerstone Structural Engineering
Contract to Cornerstone Structural Engineering Group, Inc. for the Road
Group, Inc. for the Road 16 Over
16 Over Berenda Slough Scour Countermeasure Project in the amount of
Berenda Slough Scour Countermeasure
$252,200.00 and Authorizing the City Administrator or Designee to
Project in the amount of $252,200.00
Execute All Related Documents Thereto (Rogers)
and Authorizing the City Administrator
or Designee to Execute All Related
Documents Thereto. Motion passed
with Council Member Barragan absent.

8/2025

Design ongoing.

In Progress
Motion by Mayor Pro Tem Ahmed,
Seconded by Council Member Troost
to Approve City Council Resolution
#55-24, Approving the Measure T
Annual Expenditure Plan (AEP) for
Fiscal Year (FY) 2024/25 and
Authorizing the Public Works Director
or Designee to Submit the Plan to the
Madera County Transportation
Authority (MCTA) for Adoption.
Motion passed by roll call vote.

Madera County
Transportation
Commission

10/24

Consideration and Adoption of a City Council Resolution (55-24)
Approving the Measure T Annual Expenditure Plan (AEP) for Fiscal
Year (FY) 2024/25 and Authorizing the Public Works Director or
Designee to Submit the Plan to the Madera County Transportation
Authority (MCTA) for Adoption (Rogers)

Fairmead Consolidation
Project

6/2025

Engineering surveying completed. Currently working on the basis of
design/identifying the locations for mains/lift stations.

Wkly Activity Report
6/21/25

8/2025

Attended Madera County Board of Supervisors meeting to provide an
update on the Fairmead Sewer Consolidation Project per the
requirements of a prior Grand Jury Report.

Weekly Report
8/16/2025

10/2025

Still in design phase

11/2025

Still in design phase

6/2025

Caltrans submitted a 4th Right-of-Way temporary construction permit
acquisition agreement for review for more City identified properties.
Will be coming to Council for approval.

Robertson Blvd.
Rehabilitation and
Complete Streets/Caltrans

8/2025

10/2025

Completed review of the Robertson Blvd CAPM Project 90% design plans
and submitted comments back to Caltrans
Met with Caltrans regarding the Robertson Blvd CAPM project. As part
of the project, they will be replacing and upfitting the RRFB poles (that
we still have not received as part of another project). Passed 95% design
and nearing 100%.

Complete

Weekly Report
10/11/2025
Weekly Report
11/1/2025

In Progress

Wkly Activities
Report 6/14/2025
Weekly Report
8/16/2025

On Going

Weekly Report
10/11/2025

On Going

Page 48 of 187

Clean CA Grant/
Robertson Blvd.
Beautification Project

8/2025

10/2025

11/2025

Project on hold. Delivery of poles, push buttons, and signage still
scheduled for mid-August.

Weekly Report
8/16/2025

Arches for the median are being designed and constructed by a new
vendor and will be paid for with liquidated damages from the current
construction company and or a reduction in payment to them since they
are not doing it
Project on hold. Delivery of poles delayed. City is now assessing
Liquidated Damages (LDs) at $1,000 per day. Reached out to Caltrans
about modifying the scope to remove the poles as Caltrans recently
stated that they would be removing them and upgrading them to fully
electric in the CAPM project next year. Set up a meeting with Caltrans
to discuss next week.
Arches for the median are supposed to be done and ready to install this
week. Project on hold for poles/pushbuttons scheduled for delivery in
February. LDs to continue to be assessed.

Kings Ave Storm Drain
Project & ADA Sidewalk
Improvement Project

7/2025

Received the final plans, specs, engineer's estimate, and notice to
bidders for the King's Avenue storm drain project. Project is shovel
ready now and we can apply for additional CDBG funding once they
issue the Notice of Funding Opportunity (NOFO).

Former Library Building

3/2025

Update on the Library
• The Historical Society has finished updating the application and we
need to review and approve before submittal

Weekly Report
10/112025

Weekly Report
10/11/2025

Weekly Report
11/1/2025

ON HOLD

Weekly Report
7/19/2025

In Progress

Weekly Report Reported by Admin

Complete

Motion by Mayor Pro Tem Ahmed,
Seconded by Council Member
Barragan to Approve a Well Installation
Permit Application Pursuant to
Chowchilla Municipal Code Section
8.20 and 13.04 Requested by Pheasant
Run, LLC. Motion passed by roll call
vote with Council Member Troost
abstaining.

Green Hills

9/2024

6.1 Consideration and Approval of a Well Installation Permit
Application Pursuant to Chowchilla Municipal Code Section 8.20 and
13.04 Requested by Pheasant Run, LLC (Rogers)

Ed Ray Park Tower

7/2025

IT staff is gathering latest preferred PTP network & PTZ camera item
product info for tower project. To be submitted to Jason, & IT will begin
purchasing hardware soon.

Wkly Activity Report
7/19/25

Airport/FAA

5/2025

Worked with our Airport Engineer in putting the AIP funding
application together to submit to the FAA

Wkly Activity Report
5/3/25

On Going

7/2024

Construction ongoing. Pavement completed. Striping completed and
road re-opened. Waiting on pipe to be delivered for continuation of the
water main stub outs. Construction ongoing. Paving to continue July
10th

Weekly Reports

On Going

Chowchilla Boulevard
Rehab & Water Stub Outs

Complete

Page 49 of 187

SR 99/233 Interchange
(2017)

Race Communciations

Edinburgh Well Rehab

HSIP Project

8/2025

Attended debrief with MCTC and the CTC regarding the 2024 LPP
Competitive Program application for the SR 99-233 Chowchilla
Multimodal Interchange Project (Roundabouts). Specific comments were
related to wanted more analysis of impact to low income housing,
disadvantaged communities, more VMT mitigation, how it will reduce
greenhouse gasses (GHG) further, how the project affects transportation

Weekly Report
8/2/2025

8/2025

meeting with Caltrans and MCTC to discuss the roundabouts project and
requesting Caltrans to increase their contribution from $300,000. At this
time, that is the only amount the State has approved for the project. The
project does not fit into the STIP or SHOPP funding categories. While
Caltrans will continue to try and identify additional funding, the City and
MCTC will look for additional grant opportunities.

Weekly Report
8/9/2025

5/2025

PG&E on site at Lone Oak/Sessions for undergrounding work on
Washington Rd

Wkly Activity Report
5/3/25

4/2025

Madera County notified us that they were moving forward with
approving the Edinburgh Well Rehab for PRGC. We provided a letter
from PRGC that they had agreed to install a flow meter, not use the well
to increase their overall annual water usage, and submit monthly reports
to the City.

Wkly Activity Report
4/26/25

6/2025

8/2025
8/2025

PROP 218

5/2025

Civic Center Generator
Project

8/2025
10/2025
11/2025

Corrected comments received from Caltrans regarding the RoW
Certification for the CMAQ; Pedestrian Improvements Project;
Riverside Avenue, 8th Street, & Kings Avenue Pedestrian
Improvements. Resubmitted to Caltrans. Once approved, we can request
construction funding and go out to bid.
Submitted the E-76 Authorization Package to Caltrans for the CMAQ
Pedestrian Project.
Received the E-76 Authorization for Construction from Caltrans for the
CMAQ Pedestrian Improvements Project. Bid notice to be released on
8/25 and close on 9/22.
218 Rate Notices were sent out to property owners/tenants
Civic Center Generator Project – Project on hold until delivery of the
backup generator in October/November.
Project on hold until delivery of the backup generator in
October/November.
Contractor scheduled installation starting 11/12/25 with startup
scheduled for 11/25/25. Met with Lighthouse electrician onsite to
review site prior to install.

City Watering

5/2025

Staff is considering moving the Summer months schedule from MayNov to April-Oct. Bydefaultthisadjuststhewinterscheduletoo
• Also considering a switch from 2 days a week to 3 days a week
during summer schedule

Ave 24 1/2

8/2025

Received the final plans, specs, engineer's estimate, and notice to
bidders for the Ave 24 ½ Reconstruction Project. Project is out to bid
and scheduled to close end of August.

On Going

Wkly Activity Report
6/7/25
Weekly Report
8/2/2025
Weekly Report
8/16/2025
Wkly Activity Report
5/10/25

Completed

Weekly Report
8/16/2025
Weekly Report
10/11/2025
Weekly Report
11/1/2025

Wkly Activity Report
5/3/25
Weekly Report
8/2/2025

On Going

Completed

Page 50 of 187

10/2025

Will be closed for construction 11/17-12/23

Weekly Report
10/11/2025

11/2025

Attended pre-construction meeting with Terra West Construction
regarding the Ave 24 ½ Rehabilitation project. They are reviewing their
schedule and potentially looking to start soon rather than wait for the
Spring. They will provide a schedule. Meet with City Inspector and
Terra West on-site. They will be staging equipment in filed by the
WWTP.

Weekly Report
11/1/2025

Samsara Replacement
Project

8/2025

Received the final plans, specs and notice to bidders for the Samsara
Replacement Project. Provided corrections to electrical engineer. Bid is
expected to be advertised by 8/15.

Weekly Report
8/9/2025

Sonoma Storm Drain

7/2025

Working with the State on Prop 1 SWRCB grant (Sonoma Stormdrain)
final closeout of the grant. After review, SWRCB had some comments
and requested clarification on some items.

Weekly Report
7/19/2025

Working with the State on Prop 1 SWRCB grant (Sonoma Stormdrain)
final closeout of the grant
Working with the State on Prop 1 SWRCB grant (Sonoma Stormdrain)
final closeout of the grant.
Working with the State on Prop 1 SWRCB grant (Sonoma Stormdrain)
final closeout of the grant.

Weekly Report
8/2/2025
Weekly Report
8/9/2025
Weekly Report
8/16/2025

Mid Cal is currently verifying water lines per the scope of the Water
Main Replacement Project.

Wkly Activity Report
11/1/25

Received the draft plans and specifications for the Samsara SCADA
replacement. Began initial review to provide comments back.
Currently working on a U.S. Department of Transportation’s Safe Streets
for All (SS4A) grant application to construct sidewalks near schools
where they are currently missing.
Completed the Electronic Annual Report for Solid Waste and submitted
to CalRecycle on July 31st.
Reviewing bids for the CMAQ Riverside, 8th, & Kings Pedestrian
Improvements Project for responsiveness and bring to Council for
award.

Wkly Activity Report
6/14/25

8/2025
8/2025
8/2025
Mid Cal

11/2025

Additional Updates

6/2025

8/2025
10/2025

Wkly Activity Report
6/21/25

Wkly Activity Report
10/11/25

Page 51 of 187

Smart Sheets

Quarterly: January to March 2026

Department: Community Economic Development
Project / Description

Community Facilities District

Date

Update

1/2025

Scheduled a CFD meeting for Rancho Calera and the City’s 2006-1
CFD refunding. 1/16- will discuss next steps for both but the City’s
can’t start until sometime in February and there will be items
coming on the agenda for approval of the CFD team.

Consideration and Adoption of a City Council Resolution
Approving a Reimbursement Agreement, Designating Consultants,
and Authorizing and Directing Certain Actions Related to the
Proposed Formation of a Community Facilities District (Pruett)

Maple Meadows Project

6/2025

10/2025

Auto Zone Distribution Facility

ADHOC: Zoning Ordinance

Motion/Approvals

Info Source

Motion by Council Member Troost, Seconded by
Mayor Pro Tem Ahmed to Approve City Council
Resolution #65-24, Approving a Reimbursement
Agreement, Designating Consultants, and
Authorizing and Directing Certain Actions Related to
the Proposed Formation of a Community Facilities
District. Motion passed with Council Member
Barragan absent.

Met with contractors several times throughout the week. They will
be doing the Maple water tie in on Wednesday 6/18. The water
main will be shut off for approximately 4 hours, 29 houses will be
affected, fliers were delivered by contractor.
Construction is ongoing. All phase 1 permits have been pulled

1/2025

PGE was out on 1/15 installing a new pole and starting the process
to get them energized

6/2025

Equipemt final; inspection

12/1/2024

Motion by Co-Chair Salter, Seconded by
Commissioner Hale to Approve Planning
Consideration and Approval of a Planning Commission Resolution
Commission Resolution #24-06, Recommending
Recommending Approval of Zoning Ordinance Text Amendment #
Approval of Zoning Ordinance Text Amendment #
24-0600 to the City Council With Findings and Conditions as Set
24-0600 to the City Council With Findings and
Out in the Resolution (Perea)
Conditions as Set Out in the Resolution. Motion
passed by roll call vote.

Status

On Going

Weekly Activities Report
June 14, 2025

On Going
Phase 1

Weekly Activities Report
10/11/2025
Reported by Admin
In Progress

Shipping Containers
Ordinance Update

Oleander Terrace

8/2024

Project is under construction, Builder has constructed approximately
20 units, has approximately 8 units to be constructed.

Ongoing
Pendnig
Final
Inspection

Notes

Page 52 of 187

Mobile Food Vendor Trucks &
Sign Ordinance

Downtown Guidelines

1/2025

Adoption of Ordinance Update- Mobile Food Vending. 2nd readingupdated for ice cream trucks.
Adoption of
Ordinance Update- Signs and Outdoor Advertising. 2nd readingupdated for height and sq footage of face requirements along the
highway 99 corridor

12/2024

Motion by Commissioner Hale, Seconded by
Commissioner Vander Dussen to Approve Planning
Consideration and Adoption of a City Council Resolution
Commission Resolution #24-07, Recommending the
Approving the Updates to the Downtown Design Guidelines Along City Council Approve the Updates to the Downtown
with the Notice of Exemption as Set Forth in the Resolution (Perea) Design Guidelines Along With the Notice of
Exemption as Set Forth in the Resolution. Motion
passed by roll call vote.

The Industrial Specific Plan was considered by Council in 2018 but
the environmental review was never completed. Council budgeted
in FY 23/24 to have staff draft an RFP for the solicitation of an
environmental consultant to assist with completing the document
which then allow the City to adopt the ISP.

Industrial Specific Plan

7/2024

CV2 & CV3

5/2024
8/2024

Century Communities: Lone
Oak Subdivision/Orchard View

5/2025

6/2025

Industrial Specific Plan EIR: Staff has routed the document for
signatures. Once all parties have signed the agreement, staff will
have the agreement executed.

Consent

Motion by Council Member Chavez, Seconded by
Council Member Troost to Approve City Council
Resolution #59-24, Initiating a Text Amendment to
Amend the Sign Ordinance and the Mobile Food
Vendor Ordinance. Motion passed with Council
Member Barragan absent.
Weekly Report

Staff processed one additional EDLP and is now beginning the
closeout process for this program with HCD.
Staff is in the process of working with our vendor to begin the close
out process.
They are requesting an extension of the reduced DIF fees that are a
result of the City-Wide 50% DIF reduction Incentive Program
•
Have an Ad Hoc scheduled to discuss
- PGE has undergrounded the powerlines
They need to address the lack of permanent lighting
• There are delays in getting power and the light poles
• We told them to have security in order to get their Certificate of
occupancy. This was direction from the Economic Development Ad
Hoc
Continue to pull permits. Their Development Agreement for DIF
fees expires 6/30 and a request was made to extend that to take
advantage of the 50% reduction of DIF Incentive Program that
expires 6/30/25. They are supposed to submit something for review
but they also could pull a substantial amount of permits before 6/30
Have not received a formal request from them on the extension of
the DIF fees in the DA. My assumption is they will pull permits for
the remainder of Phase I (100 total units) which would be roughly
50 permits
More permits have been pulled with even more anticipated before
the 6/30 expiration of the DIF Reduction Program.
meeting to come back with a 25% reduction program.

In Progress

Weekly Activities Report
May 3, 2025

Weekly Activities Report
May 17, 2025

Weekly Activities Report
May 31, 2025

Weekly Activities Report
June 7, 2025

Weekly Activities Report
June 21, 2025

Page 53 of 187

Rancho Calera

10/2025

Inspected 6 new homes this week

Weekly Activities Report
In Progress
10/11/2025

5/2025

Caltrans and our staff regarding the commercial entrance off the
roundabout
-Caltrans, as usual, dropped the ball on reviewing something they
had for over 6 months and multiple follow up emails were sent so

Wkly Report 5/3/2025

10/2025

Maps 3 and 4 completed. Meeting with Pembrook
Development • Introduction to GJ Gardner Homes. Interested
in BLK 3,4,12, and 13, Discuss rezoning BLK 12 to mixed
use, Discuss DA trigger road/intersection improvements

Wkly Report 10/11/2025

Rancho Calera

12/2025

Weekly Activities Report
In Progress
12/13/2025

landscape, and improvement plans to city council
• Pembrook civil engineers and QK engineers to coordinate
meeting to discuss DA trigger road/intersection improvements

Mid Valley Pipe & Steel

5/2024

The property transferred ownership to Mid-Valley Pipe and Steel in
April. The applicant is in the process of completing the
environmental review for the project.
30,000 sqft Building - expansion on 8 acres

Weekly Activities Report
In Progress
12/13/2025

12/2025

Legacy Ranch

1/2024

Housing Element

5/2025

Staff received a lot line adjustment application. Once the lot line
adjustment is processed, the developer plans to sell the easterly
parcel to a builder.

On Hold

Weekly Activities Report
May 17, 2025

First reading of Municipal Code amendment for Section 18 Zoning
and a General Plan amendment to implement changes required as
a result of updating our Housing Element

2nd reading and adoption of the Housing Element Updates
• This item will have to be pulled from Consent and tabled to the
next meeting
• Based off input at the last meeting there are changes that need
tobe made and reviewed by HCD
• Needs to stay on this agenda because it was publicly noticed to
be on this agenda
- Quarterly Investment Report
- FY 25-26 SB 1 eligible projects
• Streets and Roads projects

CONSENT

Weekly Activities Report
May 31, 2025

Page 54 of 187

CUHS Project

Salters Distributing

MADERA Co-EDC

Golden Valley Pistachio

CED

12/2024

Consideration and Adoption of a City Council Resolution
Approving a Deferred Improvement Agreement with the Chowchilla
Union High School District Regarding the Chowchilla High School
Transportation Center and Authorizing the City Administrator to
Execute all Related Documents (Pruett)

3/2025

Exposure to significant litigation- update on information from FAA
regarding the white buildings on Salter’s property -Labor
negotiations

4/2025

5/2025

4/2025

7/2025

4/2025

Brent Rose

RITE AID

Alpha Pharmacy

5/2025

6/2025

5/2025

Met with Kristina Gallagher of the Madera Co-EDC on April 3, 2025.
The meeting was a touch-base regarding the support provided by
EDC and what the City of Chowchilla’s Community & Economic
Development could do to further attract business to the City. The
meeting collaborative approach was to further build bridges and
support for the community’s growth.
received its second Notice of Exemption for the facilities processed
wastewater discharge project for recording at the Madera County
Recorder’s Office. Final plans are still pending approval with permit
insurances.
CED Director has reached out to other car dealerships out of the
county to see about any interest in the purchase of the vacant
Pacific Auto Sales location.
CED Director has been in communications with other possible
contacts or sources to assist in both either commercial
development or residential growth;
oPAQ, Inc. – Food 4 Less or Rancho San Miguel
oThe River Islands Development, a subsidiary of the Cambay
Group.
oLa Quinta and Sterling Properties (both representatives)
The CED has contacted both Prologis the Phelan Development
groups, regarding the City of Chowchilla’s-Industrial Specific Plan.
There have been no comments to date, and a follow up is planned.
(NO CHANGE)
Followed up w/ Brent Rose, to discuss an update or status of multiuse planned project, which includes a pharmacy; the current
partner Taj Singh is still in process with the California State Board of
Pharmacy.
The Mayor, City Administrator & CED Director have received official
notice of the Rite Aid closure set to be 08/17/25, in a continued
effort to bring services to the community; planning staff have been
working with the following developers; Chowchilla Pharmacy,
Alpha CAre of Kerman and Tower Pharmacy of Turlock
CED Director contacted Alpha Pharmacy, to further assist in the
stores permitting process. To date the planning department has not
yet received an application.

In Progress

Weekly Activities Report Reported by Admin

Weekly Activities Report
April 8, 2025

Weekly Activities Report
May 10, 2025

Weekly Activities Report
April 8, 2025

Weekly Activities Report
7/19/2025

Weekly Activities Report
April 8, 2025

Weekly Activities Report
May 24, 2025

RITE AID
Weekly Activities Report
June 28, 2025
HAS CLOSED

Weekly Activities Report
May 17, 2025

Page 55 of 187

7/2025

Submitted planning application and pending CSBP approval, Taj
Singh-President of Madera Medical Pharmacy has now received
information to submit to the CSBP for letter approval.

Weekly Activities Report
7/19/2025

10/2025

Sending follow-up email. Still waiting for final approval from the
State. Moving forward with the location next to Las Alves

Weekly Activities Report
10/11/2025

Weekly Activities Report
In Progress
12/13/2025

12/2025

Chowchilla Pharmacy AKA
Downtown

10/2025

Moving forward, pulled tenant improvement permit

Weekly Activities Report
10/11/2025
Weekly Activities Report
In Progress
12/13/2025

12/2025

Tower Pharmacy of Turlock

A Z Travel Center

5/2025

308 & 312 Alameda Ave

10/2025

12/2025

Boba Establishment

Rural Health Network (clinic)

10/2025

12/2025

On May 14, 2025, planning staff hosted the required scoping
meeting for the following planning project; A-Z Travel Center - City
of Chowchilla #23-003. The meeting is required to solicit input from
the public, regarding the project scope and content of the
Environmental Impact Report (EIR)
Two warehouse buildings, 5 units

site plan review process

1165 E Robertson next to Little Caesars, Building Permit: Paid
10.02.25, Tenant improvement began 10.02.25, Projected soft
opening week ending 10.31.25, Projected grand opening week
ending 11.07.25, Business license: Has not applied
1020 Ventura. Business License: Awaiting CUP application, Possible
Conditions, Re-zone. General Plan Amendment. Business License:
Denied
• Building Permits:
o Pulled HVAC
o Passed Electric
• Including in rezone & general plan amendment
• Business License: Denied
• Building Permits:
o Pulled HVAC
o Passed Electric

Weekly Activities Report
May 17, 2025

Weekly Activities Report
10/11/2025
Weekly Activities Report
In Progress
12/13/2025

Weekly Activities Report
In Progress
10/11/2025

Weekly Activities Report
10/11/2025

Weekly Activities Report
In Progress
12/13/2025

Page 56 of 187

Carlyle Gas Station

10/2025

212 and 308 Carlyle. Includes: Fuel Canopy, Convenience store, and
quick service restaurant. Will create 10-20 new jobs

Weekly Activities Report
10/11/2025

plans.
Weekly Activities Report
In Progress
12/13/2025

12/2025
restaurant

LaQuinta - Hawthorn Hotel by
Wyndham

10/2025

11/2025

Montgomery Lake Way & S Genoa Lake
Franchise Agreement.

Weekly Activities Report
10/11/2025
Weekly Activities Report
11/1/2025

Application
12/2025

Franchise Agreement.

Weekly Activities Report
In Progress
12/13/2025

Tagged multiple units for electrical services
Montgomery Farms SHE Houses

10/2025

used for a new sub panel

Weekly Activities Report
In Progress
10/11/2025

to be in a holding pattern until that gets done
Used cars and a service department

Madera Auto Center

11/2025

Inspection

Weekly Activities Report
11/1/2025

Ceremony
Revised Grand Opening / Ribbon Cutting Friday, 01.09.25
cutting ceremony
12/2025

Weekly Activities Report
In Progress
12/13/2025

The sandwich “branch” of the Orchard Bar & Grill
The Branch Deli

11/2025

“bar” atmosphere

Weekly Activities Report
In Progress
11/1/2025

Page 57 of 187

Bottomline Housing Project
(Residential)

11/2025

Projected to submit development application/site plan Friday,
10.31.25

Weekly Activities Report
In Progress
11/1/2025

401 Trinity Ave

Madera Community Hospital (DBA
Chowchilla Medical Center)

12/2025

• Provide same day access to the following
o MRI
o CTI
o Mammography
o Schedule Surgery

Weekly Activities Report
In Progress
12/13/2025

4 Kings Ave
Mark IV Metal Products

12/2025

ductile iron products.

Weekly Activities Report
In Progress
12/13/2025

413 W. Robertson Blvd
Weekly Activities Report
In Progress
12/13/2025

Chowchilla Healthcare Inc. (DBA
Main Pharmacy)

12/2025

Alameda Townhomes

12/2025

Weekly Activities Report
In Progress
12/13/2025

Woodcrest

12/2025

Weekly Activities Report
In Progress
12/13/2025

Eastman Ranch

12/2025

Weekly Activities Report
In Progress
12/13/2025

4th/Kings Sports Field

12/2025

Weekly Activities Report
In Progress
12/13/2025

JF Finish Carpentry – CUP

12/2025

Weekly Activities Report
In Progress
12/13/2025

9:00AM-2:00PM

Page 58 of 187

Smart Sheets

Quarterly: January to March 2026

Department: Police Department
Project / Description

Measure N

Date

Update

3/2025

Resolution approving an amendment to our current agreement with
MuniServices LLC for transactions tax audit and information • Needs
to be updated for the renewal of Measure N

8/2025

Meeting held 8/20/2025 @ 5PM

New PD Computers

6/2025

Computer for Review Phone dumps
for PD

6/2025

PD Dispatch PC Update

7/2025

1/2025
Disposal of Surplus
3/2025
Master Fee Schedule - CCW

Motion/Approvals

Info Source

Status

Reported by City
Administrator

Installed all necessary software on the first new computer. A system
image will be created from this setup and used to deploy the same
configuration to the rest of the new PD computers.

Wkly Report
6/14/2025

ONGOING

Set up a computer for PD to use when reviewing information from
phone dumps. The computer is outside the domain and network,
with all necessary software installed.

Wkly Report
6/14/2025

Complete

Wkly Report
7/19/2025

ONGOING

IT staff is working on a sysprep config for cloning these 4 wkstations.

6.3 Consideration and Adoption of a City Council Resolution
Authorizing the Disposal of Surplus City Property in the Form of
Donating a 2020 Ford Explorer Police Interceptor to the Chowchilla
Union High School Public Safety Department (Palmer)
Adjusting the Master Fee Schedule
• Adding a fee for the Police Department now doing the Concealed
Cary Permit (CCW)

Reported by City
Administrator

Notes

Page 59 of 187

Smart Sheets

Quarterly: January to March 2026

Department: Fire Department
Project / Description

Madera County Fire
Station

Fire Expansion

Date

Update

2020

2/2025

Chief Gaumnitz and I met with CalFire and Jay at the
County to try and get a resolution to an agreement we had
a long time ago with the County to provide a new
operating space and have them move out of the PD
building. There was square footage mentioned as well as
dollar amounts
• Obviously the cost per square foot has gone up
significantly since the agreement
o We cant afford to build at today’s costs and they don’t
really want to be located here
o Mentioned giving them the 4 acres we own next to
Autozone plus some money ear marked in PD DIF for this
very item
back to us

Weed Abatement

Motion/Approvals

Info Source

Status

Staff meet with County regarding prior agreement
to provide a fire station to the County. We were
supposed to provide a roughly 2,200 sq. ft
building for them. They are to leave the PD
building where they currently occupy 2 bays. PD
Wkly Activities Report
impact fess are to be used. Issue is the agreed
November 8 - November
upon costs to build that add-on/building has
14, 2020 (Administration)
significantly increased since 2009. In agreement it
is $243,800 which is $102 sq. ft. Now the County
says the cost is roughly $700 sq. ft = $1.5M. We
are continuing to work with the County to find a
resolution.

Ongoing

Wkly Report - Reported by
City Administrator
2/22-25/2025

Ongoing

Notes

Page 60 of 187

Smart Sheets

Quarterly: January to March 2026

Department: Recreation & Community Outreach
Project / Description

Date

Outreach

Heritage Preservation
Commission

Update

Motion/Approvals

Info Source

Website Updates, E-News Bulletings, Social Media Postings
Parks Reservations, Website, Social Media Postings, Newsletter

5/2025

6/2025

2nd reading repealing Ordinance for Heritage Preservation Commission
• It was pulled from the last meeting to look into claims that the commission was
needed to keep our Certified Local Government (CLG) status which is needed for
grants
• While there is a CLG certification that can assist with historical grants, staff
verified with the State that we have never held that
certification
Finalized updates to the staff report on the Heritage Preservation Commission.
After receiving community inquiry about CLG status, it was confirmed that
Chowchilla has never been certified, and this update will be included in the
second reading.

Status
On Going

On Going

Wkly Report 5/31/2025

Wkly Report 6/7/2025

Events
10/11/2025 Candleight Vigil
10/25/2025 City Halloween Treat Trail @ Veterans Park
11/11/2025 Veteran’s Day- NO COUNIL MEETING
11/13/2025 State of the County @ Madera Municipal Golf Course
11/15/2025 Lioness Autumn Fest Dinner/Auction- City is getting a table
12/6/2025 City Christmas Parade and Event
12/18/2025 City Employee Service Awards/Christmas Luncheon
1/9/2026 Madera Auto Center ribbon cutting
1/13/2026 AutoZone ribbon cutting

Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed

7/19/2025 Working with Soccer and Adult Rec on their field needs and issues.
7/25/2025 Chowchilla Little Leauge is now over

Ongoing

7/25/2025 Interior paneling installed and painting to begin

Completed

Chamber of Commerce

Sports Organizations

Concession Stand Project

Completed

Notes

Page 61 of 187

Veterans Boulevard

9/2024

Chamber of Commerce

12/24

Senior Center

12/24
12/24

6.1 Consideration and Adoption of a City Council Resolution Approving the
Installation of Commemorative Veterans Boulevard Signs atop the Existing
Wayfaring Signs Along the North and South Side of 5th Street (Wisener)

Consideration and Adoption of a City Council Resolution to Approve a Budget
Amendment and Distribute a Financial Contribution to the Chowchilla District
Chamber of Commerce for the 2025 Calendar Year (Wisener)
Reached out to Director to request they submit a letter requesting the funds we
are contracted to pay for auditing purposes.
Visited the Senior Center to check in, delivered city swag to senior citizens

Motion by Mayor Pro Tem Ahmed, Seconded
by Council Member Barragan, to Approve City
Council Resolution # 54-24 to Approve the
Installation of Commemorative Veterans
Boulevard Signs atop the Existing Wayfaring
Signs Along the North and South Side of 5th
Street. Motion passed by roll call vote.

Consensus to bring back to council after a
meeting with the Chamber Director

Page 62 of 187

Smart Sheets

Quarterly: January to March 2026

Department: City Clerk
Project / Description Date
Commissions/Comm
ittees
Recordings
Compliance

Update
Vacancies fillled for Airport Advisory Committee,
Measure N Citizens Oversight Committee, and the
Planning Commission. All boards have filled
vacancies.
Successfully recorded Notice of Special Tax Lien
re: CFD 2025-2 Rancho Calera

Motion/Approvals

Info Source

Status

weekly reports, council
meeting minutes

Completed!

City Clerk

Completed!

Notes

FPPC filing deadline closed April 1; a few trickled
in after the deadline but all are now submitted.
ADA Title II web accesibility achieved with
DocAccess ad-on to the City's website. In addition,
translation/translating closed captions is now
included for live Brown Act meetings through
Zoom.

Legal Ads

Claims
PRA
Elections

Master Fee Update; various municipal code
updates; various CDBG application notices; Road
15 1/2 NIB; GPA ZOA Amendments.
MOwnes claim is now in the hands of legal
assigned through our RMA since it is elevated to a
discrimination claim. Several other open claims are
ongoing including one related to Officer Roger's
pursuit crash with non-involved motorist, street
sweeper accident with a parked vehicle, unsafe
intersection crash involving 2 residents at 6th and
Monterey, IPhone lost during search of person, and
a few that are being rejected due to wrong
jurisdiction.
public recods request portal is live.
The 2026 Primary Election will be held in the
Council Chamber May 30-31, June1-2.

City Clerk

Continuous

City Clerk
City Clerk

Ongoing
Completed

City Clerk

In Progress

This FY is one in
which we had to
adjust the budget of
the account used to
pay for legal ads;
over $10k.

prop 50

Page 63 of 187

Smart Sheets

Quarterly: January to March 2026

Department: Transit
Project / Description

Personnel

5311 Operating Grant

Unmet Tansit Needs

Date

Update

Motion/Approvals

Need for an additional full-time Driver/Dispatcher to help with coverage.
Attended CalACT Spring Conference with Robin Roman. The department
needs one full-time employee for operations coverage and one full-time
employee for administration to support succession planning. There is a lot of $
to do projects with (other than bus purchases) but requires additional staff to
manage the grants after award which includes reporting.

Transit Supervisor Roman uploaded the bi-annual Certifications and
Assurances for this upcoming 5311 operating grant cycle. Staff report to apply
for Section 5311 will be on May agenda RFR In September
MCTC held unmet transit needs public hearings for Chowchilla, City and
County of Madera transit agencies, to obtain public input on local transit needs.
MCTC will compile information and hold another hearing at the board offices to
review unment needs and evaluate them based on many factors. SSTAC met
over MAdera City/County and Chowchilla's unmet needs submitted by the
public in respective areas and recommended that Chowchilla's unmet transit
needs are not reasonable to meet. the governing board, MCTC, still needs to
approve the recommendation by resolution at their Policy Board meeting on
May 29.

Info Source

Status

On Going

Annual CHP Inspections

CHP successfully completed the "terminal and fleet" portion of its annual
inspections. They will soon return to complete the desk audit and driver record
inspection. In July 26

On Going

Annual DBE Reporting for
5311

There is a DBE report that Transit completes annually; Robin completed this on
4/26/25

On Going

Notes

Page 64 of 187

Triennial Audit

Is an independent and objective evaluation of the City as a public transit
operator, providing operator management with information on the economy,
efficiency, and effectiveness of its program across the prior three fiscal years.

In progress

Annual TDA Application

Robin Roman completes the application to receive TDA funds, Thr City can
only request funds from the prior yr once application is submitted

On Going

5339 Grant

5339 grant funds were used to purchase a Gas bus, which was delivered in the
24/25 fiscal year.

Completed

Electrification of Bus Fleet

Received a letter from CalSTA that they approved three out of the four projects
that were submitted in the allocation package; $810,725 of TIRCIP funds and
$895,350 ZETCP funds for planning electrification of transit fleet (includes
installing chargers/infrastructure) and purchase of one e-bus.

In Progress

7/2024

Procurement of 2 New Gas Vehicles for FY 26/27 quotes have been submitted
to FTA for approval and project have been add to FTIP

FTA Grant

In Progress

Title VI Plan

The purpose of this Title VI Program is to establish guidelines to effectively
monitor and ensure that the City of Chowchilla transit services are in
compliance with FTA Title VI requirements.

In Progress

Drug & Alcohol Program
Audit

In its role of providing financial assistance to develop new transit systems and
improve, maintain, and operate existing systems nationwide, FTA oversees
thousands of grants provided to states, tribes, and local public agencies to
support public transportation. Grantees have a responsibility to comply with
statutory and regulatory requirements associated with the management of
federally assisted grants.

On Going

LCTOP Grant

7/1/26

SGR Grant

4/1/26

This project consists of free bus rides for all for a few years if approved.

Purchase of 1 Hybrid mini van, will be delivered 4/28/26. City will pay for the
vehicle, and Robin will submit for reimbursement.

In Progress

Page 65 of 187

BlackCATs Grant
Management Program

FTA Grant applications and project management software, for submitting grant
applications and requests for reimbursement.

In Progress

Page 66 of 187

Smart Sheets

Quarterly: January to March 2026

Department: Finance Department
Project / Description

Date

Update

Compensation Study

7/2024 Met with a few vendors to obtain quotes for a compensation study.

In Progress

CFD: Greenhill's

5/2024 Sent out new delinquencies for Pheasant Run

On Going

CFD: Infill

2024

Motion/Approvals

Info Source

Status

CFD Refunding failed special election; City Administrator working through
next steps.
On Going

Quarterly Financial Review
Audit

1/2025

Reporting

1/2025

Auditors were out last week for an internal control walkthrough. They are out
this week doing their fieldwork.
Completed 2 out of the 3 State Controller Reports, finishing the 3rd one this
week; Working on the CDIAC Reporting.
Annual report on Development Impact Fees- AB 1600. It is a state
requirement to report on the balance of DIF, new DIF received and what we
spent DIF on

On Going
On Going
Public Hearing: Reported By
Admin

Budget

1/2025 Will be sending out Budget Worksheets to Department Heads this week to
get ready for Mid-Year

Salary Changes

6/2025

Completing PAFs for all city employees (July 1, 2025 salary changes)

Weekly Report 6/28/2025

COMPLETED

Projects

Staff documented 22 ER Park project devices including model, serial, & MAC
addresses.
10/2025 Staff designed and created a PTZ camera mount for the ER Building.

Weekly Report 10/11/2025

On Going

Notes

Page 67 of 187

Smart Sheets

Quarterly: January to March 2026

Department: Info Technology
Project / Description

Date Update
Preparation and Health Check, Upgraded Domain Functionality, Transferred Key
Roles, functions and responsibilities from the old primary domain controller (DC1)
to the new server (SV-DC1).
DNS Settings Updated, Transferred essential software Duo and Passportal to the
new servers, Addressed specific technical issues encountered during the migration
process. Moved the DHCP service to new dedicated, servers (SV-IP1 and SV-IP2).
Migrated the NPS service from the old server (DC2) to the new server (SV-DC2).
Ensured smooth integration of LDAP services with the new primary server (SVDC1). Established a new certificate authority on the new server (SV-DC1) to
ensure secure communications. Modified Firewall RADIUS and Active directory
integration configurations.

DC Migration Major Project

Duo AD MFA Project

1/1/2025 Distributed Duo fobs to fire department staff for enhanced security.

Tyler

1/1/2025

Uptime Tracking Project

Motion/
Info Source
Approvals

Completed

Wkly Report

Provided Tyler Technologies technician Nick Peyton with access to the Tyler
Incode app server to resolve the issue concerning email bill reminders.
Sophos Exclusions for Tyler Technologies. Added 43 requested exclusions to
Sophos as per Tyler Technologies’ requirements.
Project is progressing as expected.
continued to add devices and refine status pages
Continued adding devices and refining status pages, as well as standardizing DNS
names.
Working on deployment, finalizing shortcuts and custom icons.

Status

Completed
On Going

Wkly Report 4/8/2025
Wkly Report 4/26/2025
Wkly Report 5/3/2025
Wkly Report 5/24/2025

On Going

Wkly Report 5/24/2025

Completed

Wkly Report 7/19/2025

On Going

Rims Migration

Now that Vmware has been finalized we can migrate the last 2 remaining servers
which are the 2 Rims Servers. We plan to do this 1 at a time to minimize any
potential issues that may arise.

Wkly Report 4/8/2025

ON HOLD Waiting to
schedule

New Backup System VEEAM
Deployment

The Veeam backup system deployment is progressing as expected. IT is currently
backing up most of our systems to ensure full data protection. We're just waiting to
finalize the contract with Veeam, and once that's done, we’ll complete the
deployment and ensure everything is fully integrated. finally received licensing
from vendor project will continue.

Wkly Report 4/8/2025

New Phone System Project
PROXMAX Project

Continuing to solve issues with phone system and working with Danny DeGrote
7/2025 Continued prepping for the new system

Notes

Page 68 of 187

continued setting up backups plans and configurations.

Wkly Report 5/3/2025

On Going

Continued deployment of Windows 11

Wkly Report 6/21/2025

On Going

Wkly Report 6/14/2025

7/25

Continued demolition at PD for the duct work for the new AC unit for the IT room.
Purls onsite to begin duct work for the new AC unit.
IT staff is gathering latest preferred PTP network & PTZ camera item product info
for tower project. To be submitted to Jason, & IT will begin purchasing hardware
soon.
IT staff has begun purchasing hardware for this project.

7/25

IT staff has begun purchasing hardware for this project.

Wkly Report 7/19/2025

7/25

IT staff is working on a sysprep config for cloning these 4 wkstations.

Windows 11 Upgrade project

UPDATES

7/25
ED Park Communications Tower
ER Park ER Building concession
ER Park new concessions stand blue
building
PD Dispatch wk station PC upgrade

Wkly Report 7/19/2025

On Going

Wkly Report 7/19/2025

On Going

On Going
Wkly Report 7/19/2025 On Going

Page 69 of 187

Item 3.8

REPORT TO THE CITY COUNCIL

CLICK HERE
TO RETURN TO
THE AGENDA

Meeting of: Tuesday, April 28, 2026
AGENDA SECTION:

Consent

SUBJECT:

Consideration of Quarterly Waiver Report

PREPARED BY:

Rod Pruett, City Administrator

ATTACHMENTS:

Detail of Waivers Issued

REVIEWED BY
ADMINISTRATOR

☒

REVIEWED BY
ATTORNEY

☒

REVIEWED BY
FINANCE

☒

RECOMMENDATION:
Approve the Quarterly Waivers Report for January 2026 through March 2026.
BACKGROUND:
Council approved the City Administrator to have the authority to waive penalties, interest, fees, liens, and
other items up to $10,000. It was requested that a quarterly report be presented that summarized the
transactions the City Administrator approved under this authority.
REASON FOR RECOMMENDATION:
This report is a summary of the waivers that were issued and is an element of transparency for the Council
and the public. These waivers are issued on a case by case basis and will fluctuate from quarter to quarter.
This is a tool for the Council to evaluate the use and effectiveness of the program.
FISCAL IMPACT:
There were four waivers issued this quarter for a total of $7,021.53 Please see the attached spreadsheet
for the detail.
ALTERNATIVES:
Pull the item for further discussion.
ACTIONS FOLLOWING APPROVAL:
None.

Page 70 of 187

CITY COUNCIL REPORT ON WAIVERS PER RESOLUTION 83-19
QUARTER 1/1/2026 - 3/31/2026

Address

Account or
Lien #

2/23/2026 Ian H Jackson

650 S. Seventh

01-13852-003 Utility Account

3/9/2026

2019 Taft

Date

Entity/Person

Jancita Bento

Type

Administrative Citation 6987

3/12/2026 Santiago Delmaro

1404 Lake

02-11859-008 Utility Account

3/27/2026 Parminder Sandhu

901 Lake

02-14253-010 Utility Account

Amount

Justification
Customer thought acct was closed and there was no
usage for over a year. We should be closing accts after
6 months of no payment. this is a reduction to get to
that 6 month amount if we would have closed it. It is
$ 4,215.60 mostly penalties and interest.
Dog was accidentally let out by the gardner. No prior
$
50.00 history at this address. One time waiver.
Customer thought acct was closed and there was no
usage for over a year. We should be closing accts after
6 months of no payment. this is a reduction to get to
that 6 month amount if we would have closed it. It is
$ 487.56 mostly penalties and interest.
Customer thought acct was closed and there was no
usage for over a year. We should be closing accts after
6 months of no payment. this is a reduction to get to
that 6 month amount if we would have closed it. It is
$ 2,268.37 mostly penalties and interest.

TOTAL FEES WAIVED $ 7,021.53

Page 71 of 187

Item 3.9
CLICK HERE
TO RETURN TO
THE AGENDA

REPORT TO THE CITY COUNCIL
Meeting of: Tuesday, April 28, 2026
AGENDA SECTION:

Consent

SUBJECT:

Consideration of Quarterly Contracts Executed Report

PREPARED BY:

Rod Pruett, City Administrator

ATTACHMENTS:

Detail of Waivers Issued

REVIEWED BY
ADMINISTRATOR

☒

REVIEWED BY
ATTORNEY

☒

REVIEWED BY
FINANCE

☒

RECOMMENDATION:
Approve the Quarterly Contracts Executed Report for January 2026 through March 2026.
BACKGROUND:
Council approved the City Administrator to have the authority to execute contracts without City Council
prior approval up to $100,000 per Ordinance #536-26. Per the Resolution, a quarterly report is to be
presented that summarizes the contracts executed by the City Administrator under this authority.
REASON FOR RECOMMENDATION:
This report is a summary of the contracts that were executed and is an element of transparency for the
Council and the public. These contracts are executed prior to City Council approval in an effort to be more
efficient and was required by the Department of Housing and Community Development (HCD) to process
any documents related to grants and programs they oversee.
The authority was not limited to just HCD related programs for efficiency purposes and will fluctuate from
quarter to quarter. While the Resolution grants authority for all related documents for HCD, including
reimbursement requests or quarterly reports required by grants, this report is to summarize contracts
specifically and their costs. For example, a software contract or a copier lease…et cetera.
FISCAL IMPACT:
There were three contracts executed this quarter for a total of $18,565.60 Please see the attached
spreadsheet for the detail.
ALTERNATIVES:
Pull the item for further discussion.
ACTIONS FOLLOWING APPROVAL:
None.

Page 72 of 187

CITY COUNCIL REPORT ON CONTRACTS EXECUTED PER ORDINANCE 536-26
QUARTER 1/1/2026 - 3/31/2026
Date

Entity/Person

Type

3/23/2026 DocAccess

Software

2/26/2026 Monday.com

Software

3/17/2026 Axanexa

Implementation of Software

Amount

Description
Document accessibility platform that scans, converts,
& monitors PDF documents on websites to support
ADA and Section 508 compliance efforts for users
$6,865.60 with disabilities
Annual Cost for project tracking software for all of the
$5,700.00 city.
Importing data, creating a project workflow,
dashboards, and training for Monday.com Project
$6,000.00 Tracking Software.

TOTAL CONTRACTS $ 18,565.60

Page 73 of 187

Item 3.10

REPORT TO THE CITY COUNCIL

CLICK HERE
TO RETURN TO
THE AGENDA

Meeting of: Tuesday, April 28, 2026
AGENDA SECTION:

Consent

SUBJECT:

Presentation of Quarterly Financial Investment Report

PREPARED BY:

Daniel Seeto, Finance Director

ATTACHMENTS:

LAIF Quarterly Remittance Advice, Wulff Hansen Quarterly Report

REVIEWED BY
ADMINISTRATOR

☒

REVIEWED BY
ATTORNEY

☒

REVIEWED BY
FINANCE

☒

RECOMMENDATION:
Review the Quarterly Financial Investment Report.
BACKGROUND:
In accordance with Section 53601 of the California Government Code and the City’s Investment policy, the
City is authorized to invest in Certificates of Deposit, the California Local Agency Investment Fund (LAIF).
In addition to LAIF, the City began investing in Treasury Securities in December 2022 after City Council
approval as they typically yield higher interest than LAIF and allows the City to have some diversity in its
portfolio. The Treasury securities purchased by the City amounted to $15M. Each time a Treasury security
in the portfolio matures, the City will be paid the ‘maturity value’ or ‘face value’ of that security. If such
security was purchased at a discount and then held to maturity, then the difference between the discounted
principal cost of the security and the face value of the security represents ‘income’ to the City, similar to
interest earnings. The City is using Wulff, Hansen & Co. as our Municipal Advisor to oversee the portfolio.
The City also began investing in a Money Market account with Tri Counties Bank, as they are offering a
rate competitive with LAIF. This allows the City to have more flexibility and limits transfers between
institutions.
REASON FOR RECOMMENDATION:
N/A
FISCAL IMPACT:
The US Treasury Securities Custodial Account has a fair market value of $9,189,592 and for the last
quarter recognized $83,832 in investment earnings, which includes accrued interest and amortized
discount. Accrued interest is interest that has been earned but not yet paid. During the period from January
1, 2026 through March 31, 2026, the City earned accrued interest of $86,724. Amortized discount
represents that portion of any discount that has been earned, but not yet paid. As of March 31, 2026, the
portfolio’s amortized discount was ($2,892).

Page 74 of 187

Interest is allocated to all funds that have a positive cash balance. As March 31, 2026, the City has
$19,687,740 in LAIF and for the last quarter received $192,932 in interest.
As of March 31, 2026, the City has $16,415,799 in Tri Counties Money Market and for the last quarter
received $128,484 in interest.
ALTERNATIVES:
N/A
ACTIONS FOLLOWING APPROVAL:
N/A

Page 75 of 187

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)$'0$+)57)

Page 76 of 187

Rod Pruett and Daniel Seeto, City of Chowchilla

From

Bud Levine and Rob Pankratz, Wulff, Hansen & Co.

Date

April 13, 2026

Subject

Quarterly Portfolio Earnings: January 1, 2026 through March 31, 2026

During the period from January 1, 2026 through March 31, 2026, the City held the following
U.S. Treasury securities in its portfolio during all or a portion of the period:

CUSIP
Number

Purchase
Date

Face
Value

91282CLP4
91282CMV0
91282CFM8

Sep. 30, 2025
Sep. 30, 2025
Sep. 30, 2025

3,076,000
3,061,000
3,041,000

Coupon
Rate

Price

Discount (+)
Premium (-)

Principal
Cost

Accrued
Interest*

3.500% 99.7891
3.875% 100.289
4.125% 100.941

8,488
-8,846
-28,628

3,067,512
3,069,846
3,069,628

0
0
0

Total
Cost

Final
Maturity

Yield to
Maturity

3,067,512
3,069,846
3,069,628

Sep. 30, 2026
Mar. 31, 2027
Sep. 30, 2027

3.72%
3.68%
3.63%

All dollar amounts are rounded to the nearest dollar.

* Accrued interest paid by City to Winning Bidder.
Quarterly Book Earnings
During the period from January 1, 2026 through March 31, 2026, the City’s portfolio of U.S.
Treasury securities had book earnings of $83,832 which is equivalent to an annualized book
yield of 3.69%. By comparison, during the same period the average daily yield paid on
deposits in the Local Agency Investment Fund (LAIF) was 3.88%.
Quarterly book earnings of $83,832 included the following:
•
•

$86,724of interest earnings, plus
-$2,892 of accreted discount less any amortized premium.

Page 77 of 187

Fees
The book earnings shown above do not take into account any fees that were incurred by the
City for services provided by the Municipal Advisor, Bidding Agent / Registered Investment
Advisor or Custodian Bank. The total of such fees incurred by the City during the period
equaled approximately $3,125.

Next Steps
The City does not need to take any further action at this time. This report is informational
only.
The next scheduled maturity of Treasury securities in the City’s portfolio will occur on
September 30, 2026. Prior to the maturity of each Treasury security in the City’s portfolio,
the Wulff Hansen team will assist the City in evaluating its expected cash flow requirements
and liquidity needs, and its potential reinvestment options.
Meanwhile, all of the Treasury securities in the City’s portfolio are held in trust for the City by
its Custodian Bank. The scheduled payment of interest and principal on each security will be
automatically credited to the City’s custody account upon receipt, and the City will continue
to receive monthly account statements from the Custodian Bank.

Invest Additional Funds
Depending on the City’s cash balances and its expected future cash flow requirements and
liquidity needs, the City may wish to consider investing additional funds in one or more U.S.
Treasury securities, in order to earn additional interest income. If so, the Wulff Hansen team
can help arrange for any such additional investment. Please note however that such
additional investment would incur additional compensation to Municipal Advisor, based on
its current fee schedule, and therefore Municipal Advisor would have an incentive to
recommend such an additional investment. For your reference, the current U.S. Treasury
yield curve is as follows:

Page 78 of 187

Estimated U.S. Treasury Yield Curve as of April 10, 2026
(Data Sources: Tullett Prebon via Wall Street Journal, Treasury.gov, and California State Treasurer's Office)

5.00%

4.00%

3.81%

3.67%

3.69%

3-Month

6-Month

9-Month

3.67%

3.76%

3.79%

3.80%

3.78%

3.00%

2.00%

1.00%

0.00%
LAIF*

12-Month 15-Month 18-Month 21-Month 24-Month

* LAIF rate as of April 8, 2026

Liquidate Securities
If the City ever needs immediate access to some or all of its invested funds due to a large
unanticipated financial obligation or emergency situation, then the Wulff Hansen team can
help arrange for the prompt liquidation of one or more Treasury securities in the City’s
portfolio.
The market value of the City’s portfolio – as opposed to its face value – typically fluctuates
over time as interest rates change. According to the most recent monthly custody account
statement, the estimated market value of the Treasury securities in the City’s portfolio on
March 31, 2026 was $9,189,592.47 excluding any funds held in the City’s designated cash
sweep account.

Page 79 of 187

Item 4.1
CLICK HERE
TO RETURN TO
THE AGENDA

REPORT TO THE CITY COUNCIL
Meeting of: Tuesday, April 28, 2026
AGENDA SECTION:

Public Hearing

SUBJECT:

Consideration of a Resolution and Measure T Annual Expenditure Plan
(AEP) for Fiscal Year (FY) 2026-27 and Authorizing the Public Works Director
or Designee to submit the Plan to the Madera County Transportation
Authority (MCTA) for adoption

PREPARED BY:

Christina Soares, Administrative Analyst

PRESENTED BY:

Joe Roman, Deputy Director of Public Works

ATTACHMENTS:

Resolution, Measure T AEP Plan for FY 2026-27

REVIEWED BY
ADMINISTRATOR

☒

REVIEWED BY
ATTORNEY

☒

REVIEWED BY
FINANCE

☒

RECOMMENDATION:
Staff recommends that the City Council adopt a resolution approving the Measure T AEP for FY 2026/27
and authorizing submission of the AEP to the Madera County Transportation Authority (MCTA) for
adoption.
BACKGROUND:
The Annual Expenditure Plan (AEP) is required by the MCTA to claim Measure T funds that will be
allocated to the City as specified in the Transportation Sales Tax Measure Investment Plan (Plan)
approved by the voters in the November 2006 election. The AEP is completed annually. The proposed
funding for the projects and programs in the AEP is consistent with the requirements specified in the
Measure T 2007 Strategic Plan (Strategic Plan) adopted by the MCTA and with the Capital Improvement
Program (CIP) proposed in the City’s FY 2026/27 Budget.
Measure T is a ½ cent sales tax measure approved by Madera County voters in the November 2006
election. The measure took effect on April 1, 2007, with a sunset provision of 20 years. As part of the
measure’s implementation, local agencies submit an AEP. The AEP is a multi-modal funding program that
commits funding for the following program categories:





Regional Rehabilitation
Street Maintenance
Supplemental Street Maintenance
Flexible (Miscellaneous Street programs)






ADA Compliance
Transit Enhancement
ADA/Seniors/Paratransit
Environmental Enhancement

The Regional Rehabilitation program consists of two elements:

Page 80 of 187

1. One is the responsibility of MCTA to manage and deliver projects of regional significance. MCTA
may elect to agree with the local agency to perform the engineering and construction activities of
this element.
2. The second element is the responsibility of the local agencies to manage the construction,
rehabilitation, and maintenance of the agency’s arterial and collector streets.
All other programs are the responsibility of the local agency to deliver. The MCTA and Citizens Advisory
Committee monitor the local agencies' progress in the delivery of these programs.
REASON FOR RECOMMENDATION:
The implementation guidelines in the Strategic Plan adopted by the MCTA require the City to prepare and
adopt an AEP that must be approved during a noticed public hearing. This agenda item will satisfy this
requirement. The proposed expenditures in each program category must meet the objectives and
guidelines specified in the Strategic Plan. The Strategic Plan is a 5-year plan that is updated every 2 years
to adjust the project based on sales tax receipts, ensuring that the projects are consistent with future
investments.
DISCUSSION:
MCTA has provided the City with the funding allocation for each of the program categories. The total
allocation for FY 2026/27 is $892,581, of which $626,641 is available for programming due to $265,940 of
Flex funds impounded by MCTC. There was no allocated disbursement of excess tax revenues received
in FY 2025/26 above the final allocation. A summary of allocations and distributions of prior year excess
funds to the City for the past five years is shown below in Table 1.
Fiscal Year
2026/27
2025/26
2024/25
2023/24
2022/23

Table 1. Allocations & Excess Funds for Past 5 Years
Allocation
Prior Year Excess
$892,581
$0
$978,008
$0
$1,009,450
$0
$1,003,835
$56,512
$955,551
$144,125

FY Total
$892,581
$978,008
$1,009,450
$1,060,347
$1,099,676

AEP for FY 2026/27 includes carryover funds and new allocations. Table 2 provides the total of funds for
FY 2026/27. Table 3 breaks down fund categories and a description of each.
Table 2. Total funds in the FY 2026/27 Annual Expenditure Plan (AEP)
Carryover funds from prior years
Excess funds from the previous fiscal year
New fund allocation for FY 2026/27
Total:

1.
2.
a.
b.
c.
d.

3.
a.
b.

$1,748,067
$0
$892,581
$2,640,648

Table 3: FY 2026/27 Annual Expenditure Plan (AEP)
Program
Carryover
New funds for FY
from prior FY
2026/27
Regional Transportation and
$1,016,082
$305,678
Highway Program
Local Transportation Program
Street Maintenance
$140,820
$158,953
Supplemental Street Maintenance
$200,394
$106,987
Flexible
$162,922
$265,940
Funds held by MCTC
ADA Compliance
$22,206
$6,114
Transit Enhancement Program
Citywide
$41,022
$22,376
ADA/Seniors/Paratransit
$12,896
$2,079

Total for
Programming
$1,321,760
$299,773
$307,381
$428,862
$28,620
$63,398
$14,975

Page 81 of 187

1. Environmental Enhancement
Program
Total Available Funds

$151,725

$24,454

$176,179

$1,748,067

$892,581

$2,640,648

1. Regional Rehabilitation Program
The FY 2026/27 allocation is $305,678. This Fiscal Year, Public Works is expecting to utilize $71,000 for
the Humboldt Ave Rehabilitation Phase 2 Project.
• R-7 Humboldt Ave Rehab. Phase 2 Project - $71,000
2. Local Transportation Program
Street Maintenance:
The FY 2026/27 allocation is $158,953 for the application of Surface Seal treatment and General Street
Maintenance work on various City streets.
• $185,000 to Public Works for Street Maintenance activities
Supplemental Street Maintenance:
The FY 2026/27 allocation is $106,987 for General Street Maintenance on various City streets.
• $125,000 reserved to Public Works for Street Maintenance activities
Flexible:
The FY 2026/27 allocation is $265,940. These funds will be impounded by the MCTA to fund the delivery
of projects in the Regional Streets and Highway Program. Funds will be impounded until each agency can
adopt an Impact Fee program for the construction of Regional Facilities. 20 percent match for projects
listed in the Regional Streets program is a requirement of the Transportation Sales Tax Measure
Investment Plan approved by the voters. Flexible funds will be released back to each agency upon payment
of the matching funds by each local agency. Public Works is expecting to utilize $162,922 of carryover
funds that were available before flexible funding was impounded for completion of projects in the following
years.
• Reserved for future projects - $162,922
ADA Compliance:
The FY 2026/27 allocation is $6,114 for sidewalk repairs and safety improvements to make walkways
ADA-compliant. Public Works is expecting to utilize $28,320 of carryover funds that were available before
flexible funding was impounded for completion of projects in the following years.
• Reserved for future projects - $28,320
3. Transit Enhancement Program
Transit Enhancement-Citywide:
The FY 2026/27 allocation is $22,376 for security and passenger enhancements to make facilities ADAcompliant. No specific projects are scheduled for the current Fiscal Year for these funds.
• Reserved for future projects - $63,398
Transit Enhancements-ADA/Seniors/Paratransit:
The FY 2026/27 allocation is $2,079 for security and passenger enhancements to make facilities ADAcompliant. No specific projects are scheduled for the current Fiscal Year for these funds.
• Reserved for future projects - $14,975

Page 82 of 187

4. Environmental Enhancement Program
The FY 2026/27 allocation is $24,454 for the construction of bicycle and pedestrian facilities and other
transportation-related projects that have environmental benefits. No specific projects are scheduled for the
current Fiscal Year for these funds.
• Reserved for future projects - $176,179
The MCTA Technical Advisory Committee (TAC) will also review and comment on this expenditure plan
before it submits to the MCTA. The MCTA will consider adopting this expenditure plan into the Measure T
FY 2026/27 Annual Work Plan at their June meeting.
FISCAL IMPACT:
An approved AEP by the City Council is required to receive the City’s allocation of Measure T funds.
Allocation of funds in the AEP is consistent with project funding in the proposed CIP for FY 2026/27. There
is no adverse impact on the General Fund for the implementation of these projects and programs.
ALTERNATIVES:
The City Council does not adopt a resolution approving the Measure T AEP for FY 2026/27 and does not
authorize submission of the AEP to the Madera County Transportation Authority (MCTA) for adoption and
will have to use alternative funds for Street projects.
ACTIONS FOLLOWING APPROVAL:
The Public Works Director or Designee will be authorized and directed to submit a certified copy of this
resolution to the MCTA for consideration to include the City of Chowchilla’s AEP in the FY 2026/27
Measure T Annual Work Program.

Page 83 of 187

COUNCIL RESOLUTION # XX-26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA
APPROVING THE MEASURE T ANNUAL EXPENDITURE PLAN (AEP) FOR FISCAL YEAR (FY)
2026/27 AND AUTHORIZING THE PUBLIC WORKS DIRECTOR OR DESIGNEE TO SUBMIT THE
PLAN TO THE MADERA COUNTY TRANSPORTATION AUTHORITY (MCTA) FOR ADOPTION
WHEREAS, the projects and programs proposed for approval in the FY 2026/27 Annual
Expenditure Plan (AEP) are consistent with the Measure 'T' 2007 Strategic Plan; and
WHEREAS, the City is a designated agency for selecting projects and programs for approval and
adoption by the MCTA into the Measure T Annual Work Plan; and
WHEREAS, under Public Utility Code 180108(a)(b) and section 6061 of the Government Code, a
public notice with the time and place of the public hearing, April 28, 2026, at 130 S. 2nd Street, was
published on the City website; and
WHEREAS, the public was invited to comment on the proposed projects and programs during a
public hearing that was held on April 28, 2026.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds,
determines and declares the following:

1. The above recitals are true and correct.
2. The projects programs, and expenditures shown on Measure T Annual Expenditure Plan
Fiscal Year (FY) 2026/27 are attached hereto and are approved.

3. The Public Works Director or Designee is hereby authorized and directed to submit a certified
copy of this resolution to the MCTA for consideration to include the City of Chowchilla’s AEP
in the FY 2026/27 Measure T Annual Work Program.

4. This resolution is effective immediately upon adoption.
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 28th day of April 2026 by the
following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:

ATTEST:

Joann McClendon, CMC
City Clerk

APPROVED:

Mayor Kelly Smith

Page 84 of 187

Measure T Annual Expenditure Plan
Fiscal Year 2026 / 2027

Commute Corridors/Farm to Market (Regional)
Rehab, Reconstruct, Maintenance Program

Carryover
$ 1,016,082

Excess

Allocation

Available

$ 305,678

$ 1,321,760

Excess

Allocation

Available

$ 158,953

299,773

$ 106,987

307,381

$ 265,940

428,862

28,320

Budget

Project
Humboldt Ave Rehabilitation Phase 2

Reserved for projects in following years

$1,250,760
$

Total Projects

Unprogrammed Balance

Safe Routes to School & Jobs (Local)

71,000.00

1,321,760
-

Carryover

Street Maintenance Program

$140,820.00
Budget

Project
Overlays

Chip Seal

Other Seals

Patching

185,000

Reserve for Next Fiscal Year

114,773

Total Projects

299,773

Unprogrammed Balance

(0)

200,394

Suppl. Street Maint./County Maint. Districts

Budget

Project
Overlays

Chip Seal

Dust Mitigation

Patching

125,000

Reserve for Next Fiscal Year

182,381

Total Projects

307,381

Unprogrammed Balance

162,922

Flexible Program

Budget

Project
Impounded for Regional Projects

265,940

$
Total Projects $

162,922
428,862

Unprogrammed Balance $

162,922

Reserve for projects in following years

ADA Compliance

Project

22,206
Budget
-

Reserve for Next Fiscal Year

28,320

Total Projects

28,320

Unprogrammed Balance

(0)

Page 1 of 2

6,114

4/6/2026 3:13 PM

Page 85 of 187

Measure T Annual Expenditure Plan
Fiscal Year 2026 / 2027

Transit Enhancement Program (Public)

Carryover
$

41,022

Reserve for Next Fiscal Year

63,398

Total Projects

63,398

Unprogrammed Balance

(0)

12,896

Reserve for Next Fiscal Year

14,975

Total Projects

14,975

Unprogrammed Balance

(0)

Total for all Sub-programs

Available

22,376

63,398

2,079

14,975

Budget

Project

Environmental Enhancement Program

Excess

Budget

Project

ADA / Seniors / Paratransit

Allocation

Carryover
$

151,725

Excess
$

Allocation

Available

24,454

176,179

Budget

Project
$

Reserve for projects in following years

176,179

Total Projects

176,179

Unprogrammed Balance

Page 2 of 2

4/6/2026 3:13 PM

Page 86 of 187

Item 6.1

REPORT TO THE CITY COUNCIL

CLICK HERE
TO RETURN TO
THE AGENDA

Meeting of: Tuesday, April 28, 2026
AGENDA SECTION:

New Business

SUBJECT:

Presentation of the City’s Fiscal Year 2024-2025 Financial Statement Audit

PREPARED BY:

Daniel Seeto, Finance Director

ATTACHMENTS:

Audited Financial Statements
Communication to Those Charged with Governance Letter
Management Comment Letter
Government Auditing Standards Report

REVIEWED BY
ADMINISTRATOR

☒

REVIEWED BY
ATTORNEY

☒

REVIEWED BY
FINANCE

☒

RECOMMENDATION:
Accept the audit for the year ended June 30, 2025 as presented.
BACKGROUND:
Annually, the City has a financial statement audit performed by an independent audit firm which is
presented to Council for acceptance.
The final version of the audit is attached with all signatures on reports. The Audit Communication and
Management Communication letters are also attached which has communication from the audit firm to
management and Council. The Government Auditing Standards Report describes the scope of testing
performed on internal controls and compliance and the results of that testing.
The audit for the year ended June 30, 2025 was performed by Price Paige & Company, Inc. Anthony
Gonzales, the Audit Manager, will be presenting the audit to Council.
REASON FOR RECOMMENDATION:
The audit for the year ended June 30, 2025 resulted in an unmodified (“clean”) opinion, which is the best
opinion you can receive. There were no findings and minimal journal entries. Accepting the results means
that Council understands the results of the audit.
FISCAL IMPACT:
None
ALTERNATIVES:
Don’t accept the audit.
ACTIONS FOLLOWING APPROVAL:
Any journal entries proposed by the auditors will be uploaded to our system. The books for Fiscal Year
2025 will be formally closed.

Page 87 of 187

City of Chowchilla | CA
Financial Statements
For the Year Ended June 30, 2025

Page 88 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Financial Statements

TABLE OF CONTENTS
PAGE
Independent Auditor’s Report ............................................................................................................................................ 1
Management’s Discussion and Analysis ............................................................................................................................. 5
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position .......................................................................................................................................... 15
Statement of Activities ............................................................................................................................................... 16
Fund Financial Statements:
Governmental Funds:
Balance Sheet ....................................................................................................................................................... 18
Reconciliation of the Governmental Funds Balance Sheet to the
Government-Wide Statement of Net Position ................................................................................................... 19
Statement of Revenues, Expenditures and Changes in Fund Balances ............................................................... 20
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures
and Changes in Fund Balances to the Government-Wide Statement of Activities ............................................ 21
Proprietary Funds:
Statement of Net Position.................................................................................................................................... 22
Statement of Revenues, Expenses and Changes in Net Position ......................................................................... 23
Statement of Cash Flows...................................................................................................................................... 24
Fiduciary Funds:
Statement of Fiduciary Net Position .................................................................................................................... 26
Statement of Changes in Fiduciary Net Position .................................................................................................. 27
Notes to the Basic Financial Statements ............................................................................................................................ 29

Page 89 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Financial Statements

TABLE OF CONTENTS (Continued)
PAGE
Required Supplementary Information:
Budgetary Comparison Schedules:
General Fund ............................................................................................................................................................... 66
CDBG Grants Special Revenue Fund............................................................................................................................ 67
Impact Fees Special Revenue Fund ............................................................................................................................. 68
Measure N Special Revenue Fund ............................................................................................................................... 69
Streets and Roads (Local Transportation) Fund .......................................................................................................... 70
Notes to the Budgetary Comparison Schedules.......................................................................................................... 71
Cost-Sharing Multiple-Employer Defined Benefit Pension Plan:
Schedule of the City’s Proportionate Share of Net Pension Liability (Asset) .............................................................. 72
Schedule of Contributions ........................................................................................................................................... 73
Supplementary Information:
Nonmajor Special Revenue Funds:
Combining Balance Sheet............................................................................................................................................ 75
Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................................... 77
Nonmajor Enterprise Fund:
Statement of Net Position .......................................................................................................................................... 79
Statement of Revenues, Expenses and Changes in Net Position ................................................................................ 80
Statement of Cash Flows ............................................................................................................................................. 81
Internal Service Funds:
Combining Statement of Net Position......................................................................................................................... 83
Combining Statement of Revenues, Expenses and Changes in Net Position .............................................................. 84
Combining Statement of Cash Flows .......................................................................................................................... 85
Custodial Funds:
Combining Statement of Fiduciary Net Position ......................................................................................................... 86
Combining Statement of Changes in Fiduciary Net Position ....................................................................................... 87

Page 90 of 187

INDEPENDENT AUDITOR’S REPORT

To the Honorable Mayor and the City Council
City of Chowchilla, California

Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each
major fund and the aggregate remaining fund information of the City of Chowchilla, California (the City), as of and for the
year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic
financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund
information of the City, as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash
flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of
America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of
the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our
other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve
months beyond the financial statement date, including any currently known information that may raise substantial doubt
shortly thereafter.

Page 91 of 187

Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an
audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will
always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:


Exercise professional judgment and maintain professional skepticism throughout the audit.



Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements.



Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
City’s internal control. Accordingly, no such opinion is expressed.



Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.



Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified
during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and
analysis, budgetary comparison schedules, schedule of the City’s proportionate share of the net pension liability, and
schedule of contributions, as noted on the table of contents be presented to supplement the basic financial statements.
Such information is the responsibility of management and, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods of preparing
the information and comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
City’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements are
presented for purposes of additional analysis and are not a required part of the basic financial statements. Such
information is the responsibility of management and was derived from and relates directly to the underlying accounting
and other records used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing
and reconciling such information directly to the underlying accounting and other records used to prepare the basic

Page 92 of 187

financial statements or to the basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the combining and individual
nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements
as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 26, 2026, on our
consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to
describe the scope of our testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering City’s internal control over financial reporting and compliance.

Clovis, California
March 26, 2026

Page 93 of 187

MANAGEMENT’S DISCUSSION AND ANALYSIS

Page 94 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Management’s Discussion and Analysis

As management of the City of Chowchilla (the City), we offer readers of the City’s financial statements this narrative
overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2025. We encourage readers
to consider the information presented here in conjunction with information that is included within the financial
statements.
FINANCIAL HIGHLIGHTS
The assets of the City exceeded its liabilities as of June 30, 2025 by $87,379,489. Of this amount, unrestricted deficit net
position of $(2,745,828) may be used to meet the City’s ongoing obligations to citizens and creditors. As of June 30, 2024,
the assets and deferred outflows of the City exceeded its liabilities and deferred inflows by $78,232,608 with unrestricted
deficit net position totaling $(2,904,235).
Total net position increased by $9,146,881 during the year ended June 30, 2025. Net position associated with
governmental activities increased by $3,750,763 while net position associated with business-type activities increased by
$5,396,118. For the year ended June 30, 2024, total net position increased by $9,099,222 with net position associated
with governmental activities increasing by $4,739,302 and net position associated with business-type activities increasing
by $4,359,920.
As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of
$33,484,169, an increase of $2,048,177 compared with the prior year. Of this amount, $10,848,107 is available for
spending and $22,636,062 is restricted or otherwise designated for specific future uses. For the year ended June 30, 2024,
the City’s governmental funds had combined ending fund balances of $31,435,992, with $11,666,447 being available for
spending and $19,769,545 restricted for specific future uses. The combined ending fund balances as of June 30, 2024
represented an increase of $2,825,146 over the June 30, 2023 combined ending fund balances.
At the end of the current fiscal year, the fund balance for the general fund was $13,707,798 or 140 percent of general
fund operating expenditures for the year ended June 30, 2025. The general fund’s fund balance decreased by $599,783
for the year ended June 30, 2025. At the end of the prior fiscal year, the fund balance of the general fund was
$14,307,581 or 148 percent of that year’s general fund operating expenditures. The general fund’s fund balance increased
by $380,996 during the prior year.
The City’s total debt obligations (excluding post-retirement benefits) decreased by $871,778. This was attributable to not
issuing any new debt in the year ended June 30, 2025 and making our scheduled principal payments on pre-existing debt.
During the prior year, total debt obligations decreased by $565,253.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s
basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial
statements and 3) notes to the basic financial statements. This report also contains other supplementary information in
addition to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are designed to provide readers with
a broad overview of the City’s finances, in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the City’s assets and liabilities, with the difference between
the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.

Page 95 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Management’s Discussion and Analysis

The Statement of Activities presents information showing how the City’s net position changed during the most recent
fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenue and expense are reported in this statement for some items
that will result in cash flows in future fiscal periods.
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes
and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees and charges (business-type activities). The governmental activities of
the City include general government, public safety, highways and streets, culture and recreation, community
development and other charges. The business-type activities of the City include water, sewer, storm drain and solid waste
disposal systems, as well as airport activities.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that
have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City
can be divided into three categories: governmental funds, proprietary funds and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near term inflows and outflows of spendable resources, as
well as spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a
government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful
to compare the information presented for governmental funds with 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 City’s near-term financing decisions. Both the Governmental Funds Balance Sheet and the Governmental Funds
Statement of Revenue, Expenditures and Changes in Fund Balance provide reconciliations to facilitate this comparison
between the two.
The City maintains 57 individual governmental funds. Many funds are grouped together by purpose or type for financial
reporting purposes. There are 17 governmental funds presented for financial statement purposes. Information is
presented separately in the Governmental Funds Balance Sheet and in the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balance for the general fund, which is considered a major fund, three special revenue
funds, one debt service fund and one capital projects fund which are presented separately for the purpose of consistency.
Data from the other eleven special revenue funds are combined into a single, aggregated presentation. Individual fund
data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this
report.
The City adopts an annual budget for its general fund and all special revenue funds. Budgetary comparison statements
have been provided for the general fund and the major special revenue funds to demonstrate compliance with the
2024/2025 budget.

Page 96 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Management’s Discussion and Analysis

Proprietary funds. The City maintains two different types of proprietary funds: enterprise funds and internal service
funds. Enterprise funds are used to report the same functions presented as business-type activities in the governmentwide financial statements. The City maintains five individual enterprise funds. Information is presented separately in the
proprietary Statement of Net Position and the proprietary Statement of Revenues, Expenses and Changes in Net Position
for all five enterprise funds.
An internal service fund is used to accumulate and allocate costs internally among the City’s various functions. The City
uses three internal service funds to account for its fleet maintenance, information technology activities, and employee
benefits. These funds costs are allocated amongst all funds that use those services, both governmental and business-type,
so the funds themselves are excluded in the government-wide financial statements but are presented separately in the
proprietary funds’ financial statements.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City.
Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are
not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds.
Notes to the basic financial statements. The notes provide additional information that is essential to a full understanding
of the data provided in the government-wide and fund financial statements.
Supplementary information. In addition to the basic financial statements and accompanying notes, this report also
presents certain other supplementary information. The combining statements referred to earlier in connection with the
nonmajor funds are presented after the basic financial statements.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. As of June 30,
2025, the City’s assets exceeded liabilities by $87,379,489. A significant portion of the City’s net position (51 percent)
reflects its investment in capital assets, less any related debt used to acquire those assets that is still outstanding. Capital
assets are used to provide services to citizens and they are not available for future spending. Although the investment in
capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be
provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
The following schedules represent a summary of the City’s net position and activities for the year ended
June 30, 2025, with a comparison to the total net position and activities for the year ended June 30, 2024:

Page 97 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Management’s Discussion and Analysis

Statements of Net Position
June 30, 2025 and 2024
Governmental
Activities
06/30/2025
06/30/2024

Business-Type
Activities
06/30/2025
06/30/2024

06/30/2025

06/30/2024

$ 60,960,775
30,095,763
91,056,538

$ 59,434,463
28,375,252
87,809,715

$ 13,121,612
32,183,974
45,305,586

$ 13,856,206
27,846,826
41,703,032

$ 74,082,387
62,279,737
136,362,124

$ 73,290,669
56,222,078
129,512,747

Deferred Outflows of Resources

2,721,305

4,112,196

380,234

606,374

3,101,539

4,718,570

Liabilities
Long-term liabilities
Other liabilities
Total liabilities

29,778,468
5,106,340
34,884,808

30,328,418
6,258,027
36,586,445

14,012,996
1,505,477
15,518,473

14,256,044
3,256,083
17,512,127

43,791,464
6,611,817
50,403,281

44,584,462
9,514,110
54,098,572

Deferred Inflows of Resources

1,491,670

1,684,864

189,223

215,273

1,680,893

1,900,137

23,434,008
45,566,632
(11,599,275)
$ 57,401,365

21,449,118
42,956,342
(10,754,858)
$ 53,650,602

20,695,024
429,653
8,853,447
$ 29,978,124

16,329,830
401,553
7,850,623
$ 24,582,006

44,129,032
45,996,285
(2,745,828)
$ 87,379,489

37,778,948
43,357,895
(2,904,235)
$ 78,232,608

Assets
Current and other assets
Capital assets
Total assets

Net Position
Net investment in capital assets
Restricted
Unrestricted (deficit)
Total net position

Totals

Page 98 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Management’s Discussion and Analysis

Statements of Activities
For the Years Ended June 30, 2025 and 2024
Governmental
Activities
06/30/2025
06/30/2024
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Property taxes
Sales taxes
Transient lodging taxes
Franchises fees
Documentary stamp
Motor vehicle-in-lieu - unrestricted
Investment earnings
Rental income
Miscellaneous
Gain/loss on sale of capital assets
Total revenues
Expenses:
General government
Public safety
Highways and streets
Culture and recreation
Community development
Interest and fiscal charges
Water
Solid waste
Sewer
Airport
Storm drain
Total expenses
Transfers
Changes in net position
Net position - beginning, as presented
Restatement
Net position - ending

3,217,906
2,983,662
1,154,611

1,730,098
4,359,869
811,429

Business-Type
Activities
06/30/2025
06/30/2024

8,273,905
10,000
2,505,012

Totals
06/30/2025

7,747,101
15,075
1,515,816

$ 11,491,811
2,993,662
3,659,623

06/30/2024

9,477,199
4,374,944
2,327,245

1,412,635
5,474,884
346,903
356,052
36,428
3,595,953
1,716,427
115,798
270,942
20,682,201

1,434,297
5,782,318
354,175
332,692
30,165
3,316,652
1,644,794
111,156
248,290
20,155,935

15,168
617,336
96,227
5,190
11,522,838

14,237
480,858
255,728
10,028,815

1,427,803
5,474,884
346,903
356,052
36,428
3,595,953
2,333,763
115,798
367,169
5,190
32,205,039

1,448,534
5,782,318
354,175
332,692
30,165
3,316,652
2,125,652
111,156
504,018
30,184,750

2,238,504
6,495,144
2,619,851
1,085,884
1,189,086
960,993
14,589,462
(2,057,662)
4,035,077
53,650,602
(284,314)
$ 57,401,365

1,857,380
6,959,231
2,050,844
976,355
1,839,003
976,980
14,659,793
(2,137,473)
3,358,669
48,911,300
1,380,633
$ 53,650,602

3,636,581
2,345,252
1,933,079
63,373
206,097
8,184,382
2,057,662
5,396,118
24,582,006
$ 29,978,124

3,432,063
2,257,551
1,834,549
65,570
216,635
7,806,368
2,137,473
4,359,920
20,222,086
$ 24,582,006

2,238,504
6,495,144
2,619,851
1,085,884
1,189,086
960,993
3,636,581
2,345,252
1,933,079
63,373
206,097
22,773,844
9,431,195
78,232,608
(284,314)
$ 87,379,489

1,857,380
6,959,231
2,050,844
976,355
1,839,003
976,980
3,432,063
2,257,551
1,834,549
65,570
216,635
22,466,161
7,718,589
69,133,386
1,380,633
$ 78,232,608

Governmental activities. Governmental activities increased the City’s net position by $4,035,077 (an increase of
$676,408 compared to the prior year). This was due primarily to the increase in program revenues and investment
earnings, and a small decrease in overall expenses.
Business-type activities. Business-type activities increased the City’s net position by $5,396,118 (an increase of
$1,036,198 compared to the prior year). This is primarily due increased capital grants. Expenses increased overall due to
ongoing Water fund projects.

Page 99 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Management’s Discussion and Analysis

FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance related legal
requirements.
Governmental funds. The purpose of the City’s governmental fund financial statements is to provide information on nearterm inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing
requirements. In particular, an unreserved fund balance may serve as a useful measure of a government’s net resources
available for spending at the end of the fiscal year.
As of June 30, 2025, the City’s governmental funds reported combined ending fund balances of $33,484,169, an increase
of $2,048,177 in comparison to the prior year. Of this amount, $10,848,107 (32 percent) was unassigned, which is
available for spending at the City’s discretion. The remainder of the fund balance is assigned to indicate that it is not
available for new spending because it has already been designated to liquidate contracts and purchase orders of the prior
period or cover the next year budget deficit ($49,785), committed by the Council ($910,223), restricted by external
entities ($20,559,807) or nonspendable because the assets that will not be converted to cash within the next twelve
months ($366,017).
The general fund is the City’s chief operating fund. At the end of the current fiscal year, the spendable portion of the fund
balance of the general fund was $11,643,695 while the total fund balance was $13,707,798. As a measure of the general
fund’s liquidity, it may be useful to compare both the spendable portion of the fund balance and total fund balance to
total fund expenditures. Spendable portion of the fund balance represents 119 percent of total general fund operating
expenditures, while total fund balance represents 140 percent of the same amount.
The fund balance of the City’s general fund decreased by $599,783 during the year ended June 30, 2025. Expenditures
increased by 1.2% and revenue increased by .18% resulting in an excess of revenue over expenditures of $900,897. There
was $1,349,958 transferred from other funds to the general fund, $3,360,056 transferred from the general fund to other
funds, $15,254 of proceeds from sale of capital assets, $98,470 of insurance recoveries, and $395,694 of proceeds from
long-term debt.
Major special revenue funds have a combined fund balance of $11,515,538, all of which is restricted by external entities
for various activities.
Proprietary funds. The City’s proprietary funds provide the same type of information found in the government-wide
financial statements, but in more detail.
Unrestricted net position of the proprietary funds was $8,913,157 as of June 30, 2025. The total increase in the net
position of the proprietary funds was $5,423,353 for the year. Other factors concerning the finances of these funds have
already been addressed in the discussion of the City’s business-type activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
The general fund final budgeted expenditures were greater than the original budgeted expenditures by $476,276. Actual
expenditures were $1,046,949 less than final budgeted expenditures. Final anticipated revenue was $779,287 more than
original anticipated revenue. Actual total revenue was $110,790 less than the final anticipated revenue. These numbers
represent original City budget information and are not necessarily reflective of the activity reported in the budgetary
comparison schedules. Management believes this information is the most accurate and useful for the users of the
financial statements.
The decrease in actual revenues versus final budgeted revenues is due to not receiving the anticipating funding that was
included in the budget. The decrease in actual expenditures versus final budgeted expenditures is due to the timing of
projects being completed.

Page 100 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Management’s Discussion and Analysis

CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. The City’s total capital assets for its governmental and business-type activities as of June 30, 2025
amounted to $62,279,737 (net of accumulated depreciation). This investment in capital assets includes land, buildings,
improvements, service lines, automobiles, equipment and streetlights. In addition, all sidewalks, bridges and roads within
the city limits belong to the City.
City of Chowchilla's Capital Assets
(net of depreciation)

Land
Construction in progress
Land improvements
Building improvements
Right-to-use leased asset
SBITA Right to use asset
Machinery, equipment and vehicles
Infrastructure

Total

Governmental Activities
2025
2024
766,397
$
766,397
3,581,601
4,178,174
1,376,912
259,017
6,781,624
5,817,017
561,537
313,166
29,884
58,861
4,053,893
3,371,421
12,943,915
13,611,199
30,095,763
$
28,375,252

Business-Type Activities
2025
2024
2,030,152
$
2,030,152
5,017,735
4,012,819
4,415,732
305,604
3,377,396
3,465,381
63,499
40,999
677,460
788,555
16,602,000
17,203,316
32,183,974
$
27,846,826

Total
2025
2,796,549
$
8,599,336
5,792,644
10,159,020
625,036
29,884
4,731,353
29,545,915
62,279,737
$

2024
2,796,549
8,190,993
564,621
9,282,398
354,165
58,861
4,159,976
30,814,515
56,222,078

Major capital asset events during the year ended June 30, 2025 included the following:




The Sonoma Storm Drain and Alley Paving projects were completed.
The Fairmead Wastewater Consolidation project started.
The Generator projects for the Civic Center and Well 16 started.

Additional information on the City’s capital assets can be found in Note 6.
Long-term liabilities. As of June 30, 2025, the City had $39,656,805 in outstanding long-term debt consisting of four
revenue bond issues ($17,655,000), two loans from the State of California ($11,997,109), one Pension Obligation Bond
($8,130,000), net unamortized bond premiums/discounts ($464,665), leases ($561,918) and compensated absences
($848,113). The revenue bonds are obligations of the water, sewer and general fund. Principal payments on the revenue
bonds during the year reduced the amount owed by $315,000. There was a $160,300 principal decrease in the loans
payable to the State of California for the completion of the City-wide water meter upgrade project which is an obligation
of the water fund.
The City’s total debt obligations (excluding post-retirement benefits) decreased by $871,778. Compensated absences
payable increased by $283,738 during the year.
City of Chowchilla's Outstanding Bonds, Leases and Loans

Bonds
Leases
SBITA liability
Loans
Total

Governmental Activities
2025
2024
14,790,000
$ 15,610,000
495,711
322,337
19,845
9,913,215
9,913,215
25,198,926
$ 25,865,397

Business-Type Activities
2025
2024
$ 10,995,000
$ 11,065,000
66,207
41,214
2,083,894
2,244,194
$ 13,145,101
$ 13,350,408

Additional information on the City’s long-term liabilities can be found in Note 8.

Total
2025
2024
$ 25,785,000
$ 26,675,000
561,918
363,551
19,845
11,997,109
12,157,409
$ 38,344,027
$ 39,215,805

Page 101 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Management’s Discussion and Analysis

ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The City continues to focus on maintaining a balanced budget and forecasting the needed resources to provide efficient
and effective levels of service to the public. The City Council and staff continue to follow a conservative approach to the
public’s finances. The increase in charges for services for the year ended June 30, 2025 was driven by increased collection
of developer impact fees. Various economic outlook indicators in California require Chowchilla and most public agencies
in California to look at multi-year budget projections and prepare for possible outcomes of the future. Due to the City
Council approving a conservative budget and dedication to building reserve levels the past few years, Chowchilla
positioned itself well for any negative economic fluctuations.
This conservative fiscal position does not mean that future goals and objectives are put aside, but rather, that each dollar
spent is leveraged to its maximum so that we can continue to aggressively pursue the goals that our community so
desperately needs. These needs can be captured in the City’s five Cornerstone Goals:






Provide a safe and secure community.
Strengthen infrastructure and proactively plan for services, finances and processes.
Achieve and maintain fiscal reinforcement and growth.
Enhance the quality of life and sense of place.
Foster economic development and revenue production.

Specific goals, outcomes, and strategies to reach the outcomes under each of the Cornerstones can be found in the City’s
Annual Adopted Budget document under individual department sections.
The City’s budget process, financial policies, and financial metrics are very transparent. This reflects the strategic priorities
of the Council and demonstrates accountability to the tax and ratepayers. The City’s budget document meets
Government Finance Officers’ Association standards and the City has been awarded the GFOA Distinguished Budget
Presentation Award for the last 5 consecutive years.
The biggest economic factor in both the immediate and long-term range has been inflation. The City is currently working
with Century Communities on a residential project that will have roughly 200 homes built. Construction began in the year
ended June 30, 2025 and projects to be completed by the year ended June 30, 2027.
Chowchilla is seeing some renewed interest in all the community and economic development sectors. The City has seen
an increase in business license and building permits as a result. Commercial, Industrial and Residential sectors are seeing
increased activity. There are multiple residential projects in the works with already approved maps and development
agreements in place. AutoZone’s distribution center was completed in the year ended June 30, 2025. The center currently
employs close to 350 full-time workers and projects to hire more once they reach full capacity.
Increased costs continue to be a significant issue to address. Construction costs, raw materials, and contractors have risen
in costs over the last few months and are causing budget and timing issues. The City will be monitoring these issues and
forecasting accordingly.
Even though the City issued Pension Obligation Bonds in 2019 to address the significant issue of CalPERS Unfunded
Liabilities, there have been new Unfunded Liabilities since then that the City has to keep an eye on. Even when the PERS
Investment Portfolio performs at or above expectations, we still see an increase in Unfunded Liabilities because of
changes in actuarial assumptions.
Measure N, a 1% district sales tax add-on approved in 2018, is a Public Safety Measure which the funds are used to
upgrade and purchase equipment as well as help with recruitment and retention of public safety employees. It was voted
on again in 2024 and passed, reaffirming the community's support for public safety funding. The budget for the year
ended June 30, 2025 had Measure N monies to help pay for communication upgrades, and LPR cameras.

Page 102 of 187

BASIC FINANCIAL STATEMENTS

Page 103 of 187

GOVERNMENT-WIDE FINANCIAL STATEMENTS

Page 104 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Statement of Net Position

Governmental
Activities
ASSETS
Cash and investments
Restricted cash and investments with fiscal agents
Accounts receivable, net
Intergovernmental receivables
Leases receivable
Notes receivable, net
Prepaid items
Prepaid bond insurance
Internal balances
Capital assets:
Nondepreciable
Depreciable, net of accumulated
depreciation/amortization

Business-Type
Activities

Total

30,546,813 $
738,790
497,160
4,077,206
48,840
24,818,953
159,973
13,330
59,710

11,107,040 $
429,653
847,750
756,793
586
39,500
(59,710)

41,653,853
1,168,443
1,344,910
4,833,999
48,840
24,818,953
160,559
52,830
-

4,347,998

7,047,887

11,395,885

25,747,765

25,136,087

50,883,852

91,056,538

45,305,586

136,362,124

DEFERRED OUTFLOWS OF RESOURCES
Contributions to pension plan in current fiscal year
Deferred outflows of resources from pensions

718,430
2,002,875

87,520
292,714

805,950
2,295,589

Total deferred outflows of resources

2,721,305

380,234

3,101,539

518,300
239,526
121,573
4,226,941

1,004,226
198,353
263,468
39,430

1,522,526
239,526
319,926
263,468
4,266,371

108,820
1,259,840
386,891
24,328,410
3,694,507

16,149
250,300
50,058
13,256,337
440,152

124,969
1,510,140
436,949
37,584,747
4,134,659

34,884,808

15,518,473

50,403,281

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources from leases
Deferred inflows of resources from pensions

25,412
1,466,258

189,223

25,412
1,655,481

Total deferred inflows of resources

1,491,670

189,223

1,680,893

23,434,008

20,695,024

44,129,032

6,954,080
26,814,467
5,590,668
5,490,464
716,953
(11,599,275)

429,653
8,853,447

6,954,080
26,814,467
5,590,668
5,490,464
1,146,606
(2,745,828)

57,401,365 $

29,978,124 $

87,379,489

Total assets

LIABILITIES
Accounts payable
Accrued salaries, wages, and benefits
Retainage payable
Deposits
Accrued interest
Long-term liabilities:
Lease liability due within one year
Long-term debt due within one year
Lease liability due in more than one year
Long-term debt due in more than one year
Net pension liability
Total liabilities

NET POSITION
Net investment in capital assets
Restricted for:
Highway and streets
Community development
Public safety
Construction projects
Debt service
Unrestricted
Total net position

The notes to the basic financial statements are an integral part of this statement.
15

Page 105 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Statement of Activities

Expenses
FUNCTIONS/PROGRAMS
Governmental activities:
General government
Public safety
Highways and streets
Culture and recreation
Community development
Interest and fiscal charges

Total governmental activities
Business-type activities:
Water
Solid waste
Sewer
Airport
Storm drain
Total business-type activities
Total

Charges for
Services

Program Revenues
Operating
Grants and
Contributions

Net (Expenses) Revenues and
Changes in Net Position
Capital
Grants and
Contributions

Governmental
Activities

Business-Type
Activities

Total

2,238,504 $
6,495,144
2,619,851
1,085,884
1,189,086
960,993

396,238 $
331,780
826,276
394,096
1,269,516
-

- $
271,799
2,553,898
36,000
121,965
-

- $
1,142,451
12,160
-

(1,842,266) $
(5,891,565)
1,902,774
(655,788)
214,555
(960,993)

- $
-

(1,842,266)
(5,891,565)
1,902,774
(655,788)
214,555
(960,993)

14,589,462

3,217,906

2,983,662

1,154,611

(7,233,283)

3,636,581
2,345,252
1,933,079
63,373
206,097

3,324,359
2,496,156
2,179,254
46,720
227,416

10,000
-

2,225,286
279,726
-

1,913,064
150,904
525,901
(6,653)
21,319

8,184,382

8,273,905

10,000

2,505,012

2,604,535

22,773,844 $

11,491,811 $

2,993,662 $

3,659,623

(7,233,283)

2,604,535

(4,628,748)

1,412,635
5,474,884
346,903
356,052
36,428
3,595,953
1,716,427
115,798
270,942
(2,057,662)

15,168
617,336
96,227
5,190
2,057,662

1,427,803
5,474,884
346,903
356,052
36,428
3,595,953
2,333,763
115,798
367,169
5,190
-

11,268,360

2,791,583

14,059,943

Change in net position

4,035,077

5,396,118

9,431,195

Net position - beginning

53,650,602

24,582,006

78,232,608

(284,314)

53,366,288

24,582,006

77,948,294

57,401,365 $

29,978,124 $

87,379,489

General revenues:
Taxes:
Property
Sales
Transient lodging
Franchise
Other
Motor vehicle-in-lieu - unrestricted
Investment income
Rental income
Miscellaneous
Gain on sale of capital assets
Transfers
Total general revenues and transfers

Restatement - change in accounting principle
Net position - beginning, restated
Net position - ending

The notes to the basic financial statements are an integral part of this statement.
16

Page 106 of 187

FUND FINANCIAL STATEMENTS

Page 107 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Governmental Funds
Balance Sheet

Special Revenue
CDBG
Grants

General
ASSETS
Cash and investments
Restricted cash and investments with fiscal agents
Accounts receivable, net
Intergovernmental receivables
Leases receivable
Notes receivable, net
Due from other funds
Prepaid expenses
Prepaid bond insurance
Advances to other funds
Total assets
LIABILITIES
Accounts payable
Retainage payable
Deposits
Due to other funds
Advances from other funds

Impact
Fees

Streets &
Roads (LTF)

Measure N

Debt
Service

Other
Governmental
Funds

Capital
Projects

Total
Governmental
Funds

11,750,836
474,396
872,696
48,840
1,057,645
59,729
294,136

401,559
40,489
22,890,786
-

5,761,122
23,478
-

3,535,681 $
495,775
-

751,780 $
9,599
1,742,037
-

738,790
13,330
-

1,474
11,376
-

8,139,297
13,165
891,355
1,928,167
12,152
-

30,341,749
738,790
497,160
4,077,206
48,840
24,818,953
1,057,645
71,881
13,330
294,136

14,558,278

23,332,834

5,784,600

4,031,456 $

2,503,416 $

752,120

12,850

10,984,136

61,959,690

352,646
11,107
-

7,642
-

294,136

2,175 $
-

78,701 $
110,466
-

200
13,479
-

12,850
-

24,940
788,893
-

479,154
121,573
802,372
294,136

363,753

7,642

294,136

2,175

189,167

13,679

12,850

813,833

1,697,235

DEFERRED INFLOWS OF RESOURCES
Deferred inflows from lease proceeds
Unavailable revenues

25,412
461,315

22,890,786

752,862

2,647,911

25,412
26,752,874

Total deferred inflows of resources

486,727

22,890,786

752,862

2,647,911

26,778,286

59,729
294,136

12,152
-

71,881
294,136

434,406
-

5,490,464
-

4,029,281
-

1,561,387
-

35,167
716,953

6,731,041
1,561,108
-

6,731,041
1,995,514
5,590,668
5,525,631
716,953

910,223

322,470
203,760
34,776
189,224
49,785
11,643,695

(13,679)

(781,909)

322,470
203,760
34,776
189,224
49,785
10,848,107

13,707,798

434,406

5,490,464

4,029,281

1,561,387

738,441

7,522,392

33,484,169

4,031,456 $

2,503,416 $

752,120

Total liabilities

FUND BALANCES
Nonspendable:
Prepaid expenses
Advances to other funds
Restricted for:
Highway and streets
Community development
Public safety
Construction projects
Debt service
Committed to:
Emergency contingency
Assigned to:
General government
Public safety
Culture and recreation
Community development
Subsequent fiscal year budget deficit
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances

14,558,278

23,332,834

5,784,600

The notes to the basic financial statements are an integral part of this statement.
18

12,850

10,984,136

61,959,690

Page 108 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position

Amounts reported for governmental activities in the statement of net position are different because:
Total fund balances - governmental funds

33,484,169

Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the governmental funds.

29,560,746

Pension related deferrals are reported as deferred outflows and inflows of resources
on the statement of net position:
Contributions to the pension plan subsequent to the measurement date
Deferred outflows of resources from pensions
Deferred inflows of resources from pensions

668,557
1,864,062
(1,370,498)

Long-term liabilities are not due and payable in the current period and, therefore, are
not reported in the governmental funds. Those liabilities consist of:
Bonds, loans payable, compensated absences, lease related liabilities
Net pension liability
Leases payable

(24,836,254)
(3,443,686)
(348,395)

Interest payable on long-term debt does not require the use of current financial
resources. Therefore, interest payable is not reported as a liability in the
governmental funds balance sheet.

(4,226,941)

Other long-term assets are not available to pay for current period expenditures and,
therefore, are deferred in the funds.

26,752,874

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

(703,269)

Net position of governmental activities

The notes to the basic financial statements are an integral part of this statement.
19

57,401,365

Page 109 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances

Special Revenue
CDBG
Grants

General
REVENUES
Taxes
Licenses and permits
Fines and penalties
Intergovernmental revenues
Use of money and property
Charges for services
Loan repayments
Legal settlement
Miscellaneous

Total revenues

4,652,244
805,069
97,864
3,886,387
603,432
437,823
198,793

Impact
Fees

244,712
16,906
11,235
-

Streets &
Roads (LTF)

Measure N

218,108
1,241,282
-

2,967,948
158,110
328

Debt
Service

Other
Governmental
Funds

Capital
Projects

- $
948,961
(4,106)
2,615

71,448
-

6,350
-

Total
Governmental
Funds

2,714,152
327,797
321,247
11,974

7,620,192
805,069
97,864
7,800,562
1,391,695
2,011,587
213,710

10,681,612

272,853

1,459,390

3,126,386

947,470

71,448

6,350

3,375,170

19,940,679

1,815,334
4,564,539
852,733
823,400
1,554,723

72,134
11

30
220
21,923
116,108

2,073
1,064,859
-

2,787
596,196
1,625,206

38,481

2,834
956,429
419,943
155,250

1,823,028
5,629,428
1,552,845
874,656
1,315,477
3,489,779

145,491
24,495

7,535
3,053

820,000
659,318

973,026
686,866

Total expenditures

9,780,715

72,145

138,281

1,066,932

2,234,777

1,479,318

38,481

1,534,456

16,345,105

Excess (deficiency) of revenues over
(under) expenditures

900,897

200,708

1,321,109

2,059,454

(1,287,307)

(1,407,870)

(32,131)

1,840,714

3,595,574

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Gain (loss) on sale of assets
Insurance recoveries
Proceeds from long-term debt

1,349,958
(3,360,056)
15,254
98,470
395,694

22,058
(103,559)
-

(89,796)
-

(1,332,174)
-

1,107,489
(2,074)
848
-

1,407,908
(48,955)
-

32,131
-

68,704
(1,109,297)
-

3,988,248
(6,045,911)
16,102
98,470
395,694

(1,500,680)

(81,501)

(89,796)

(1,332,174)

1,106,263

1,358,953

32,131

(1,040,593)

(1,547,397)

Net change in fund balances

(599,783)

119,207

1,231,313

727,280

(181,044)

(48,917)

800,121

2,048,177

Fund balances - beginning

14,307,581

315,199

4,259,151

3,302,001

787,358

8,464,702

31,435,992

1,742,431

(1,742,431)

14,307,581

315,199

4,259,151

3,302,001

1,742,431

787,358

6,722,271

31,435,992

EXPENDITURES
Current:
General government
Public safety
Highways and streets
Culture and recreation
Community development
Capital outlay
Debt service:
Principal
Interest

Total other financing sources (uses)

Change within financial reporting entity
(nonmajor to major)
Fund balances - beginning, restated
Fund balances - ending

13,707,798

434,406

5,490,464

4,029,281

1,561,387

738,441

The notes to the basic financial statements are an integral part of this statement.
20

7,522,392

33,484,169

Page 110 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and
Changes in Fund Balances to the Government-Wide Statement of Activities

Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds

2,048,177

Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the costs of these assets are allocated over their estimated
useful lives and reported as depreciation expense. In the current period, these
amounts are:
Capital outlay
Depreciation expense

3,064,505
(1,579,631)

The net effect of various miscellaneous transactions involving capital assets (i.e., sales
and donations) is to increase (decrease) net position.

(70,509)

The issuance of long-term debt provides current financial resources to governmental
funds, while the repayment of the principal of long-term debt consumes the current
financial resources of governmental funds. Neither transaction, however, has any
effect on net position. Also, governmental funds report the effect of issuance costs,
discounts, and similar items when debt is first issued, whereas these amounts are
deferred and ammortized in the statement of activities. This amount is the net effect
of these differences in the treatment of long-term debt and related items:
Repayment of the principal of long-term debt
Amortization on bond discounts and premiums

820,000
(466)

Accrued interest payable on long-term debt is reported in the government-wide
statement of activities, but does not require the use of current financial resources.
This amount represents the change in accrued interest payable not reported in
governmental funds.

(281,196)

Changes to net pension liability and pension related deferred outflows and inflows of
resources do not require the use of current financial resources and, therefore, are not
reported as expenditures in governmental funds

(954,437)

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

242,013

Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds.

843,103

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

(96,482)

Change in net position of governmental activities

The notes to the basic financial statements are an integral part of this statement.
21

4,035,077

Page 111 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Proprietary Funds
Statement of Net Position

Business-Type Activities - Enterprise Funds

ASSETS
Current assets:
Cash and investments
Restricted cash and investments with fiscal agents
Accounts receivable, net
Intergovernmental receivables
Lease Receivable
Prepaid items
Prepaid bond insurance
Total current assets

Noncurrent assets:
Capital assets:
Nondepreciable
Depreciable, net of accumulated depreciation
Total noncurrent assets

Other
Enterprise
Funds

Governmental
Activities
Internal
Service
Funds

Water

Solid
Waste

Sewer

2,914,513 $
324,243
329,733
7,814
196
39,500
3,615,999

1,142,818 $
259,813
5,930
194
1,408,755

5,054,148 $
105,410
234,903
332,697
196
5,727,354

1,720,992 $
23,301
387,506
2,131,799

274,569 $
22,846
297,415

11,107,040 $
429,653
847,750
756,793
586
39,500
13,181,322

205,064
88,092
293,156

Storm Drain

Total

4,492,801
13,710,598
18,203,399

1,660,680
5,416,527
7,077,207

436,855
5,731,014
6,167,869

457,551
277,948
735,499

7,047,887
25,136,087
32,183,974

173,794
361,223
535,017

21,819,398

1,408,755

12,804,561

8,299,668

1,032,914

45,365,296

828,173

DEFERRED OUTFLOWS OF RESOURCES
Contributions to pension plan in current fiscal year
Deferred outflows of resources from pensions

56,860
178,696

24,040
94,337

4,689
13,885

1,931
5,796

87,520
292,714

49,873
138,813

Total deferred outflows of resources

235,556

118,377

18,574

7,727

380,234

188,686

LIABILITIES
Current liabilities:
Accounts payable
Accrued salaries, wages, and benefits
Retainage payable
Deposits
Due to other funds
Accrued interest
Compensated absences
Lease liabilities
Long-term debt
Total current liabilities

581,009
195,803
263,468
28,818
7,781
200,300
1,277,179

295,493
295,493

109,316
10,612
8,368
50,000
178,296

18,404
2,550
20,954

4
4

1,004,226
198,353
263,468
39,430
16,149
250,300
1,771,926

39,146
239,526
255,273
409,840
12,703
956,488

Noncurrent liabilities:
Compensated absences
Net pension liability
Lease liabilities
Long-term debt
Total noncurrent liabilities

285,960
25,754
10,343,531
10,655,245

120,903
24,304
2,912,806
3,058,013

23,580
23,580

9,709
9,709

440,152
50,058
13,256,337
13,746,547

438,273
250,821
38,496
727,590

11,932,424

295,493

3,236,309

44,534

9,713

15,518,473

1,684,078

118,184

57,639

9,433

3,967

189,223

95,760

118,184

57,639

9,433

3,967

189,223

95,760

9,709,927

4,081,729

6,167,869

735,499

20,695,024

522,314

324,243
(29,824)

1,113,262

105,410
5,441,851

2,096,406

291,462

429,653
8,913,157

(1,285,293)

1,113,262 $

9,628,990 $

8,264,275 $

1,026,961

30,037,834 $

(762,979)

Total assets

Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources from pensions
Total deferred inflows of resources
NET POSITION (DEFICIT)
Net investment in capital assets
Restricted:
Debt service
Unrestricted
Total net position (deficit)

10,004,346 $

Adjustment to report the cumulative internal balance
for the net effect of the activity between the internal
service funds and the enterprise funds over time
Net position of business-type activities

(59,710)
$

The notes to the basic financial statements are an integral part of this statement.
22

29,978,124

Page 112 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Proprietary Funds
Statement of Revenues, Expenses and Changes in Net Position

Business-Type Activities - Enterprise Funds
Solid
Waste

Water
Operating revenues:
Charges for services
Miscellaneous

3,324,359
6,400

Storm Drain

Sewer

2,496,156
45,479

Other
Enterprise
Funds

2,179,254
39,702

227,416
4,597

Total

46,720
49

8,273,905
96,227

Governmental
Activities
Internal
Service
Funds
$

1,015,862
6,947

Total operating revenues

3,330,759

2,541,635

2,218,956

232,013

46,769

8,370,132

1,022,809

Operating expenses:
Personnel services
Materials, supplies and services
Depreciation and amortization

769,500
1,997,682
500,042

2,345,252
-

345,330
1,144,367
305,417

49,489
108,018
48,590

21,298
15,362
26,713

1,185,617
5,610,681
880,762

570,633
477,127
94,753

Total operating expenses

3,267,224

2,345,252

1,795,114

206,097

63,373

7,677,060

1,142,513

63,535

196,383

423,842

25,916

(16,604)

693,072

(119,704)

177,550
77
(345,855)

56,003
-

334,812
279,726
5,113
(134,232)

38,171
2,225,286
-

10,800
15,167
10,000
-

617,336
15,167
2,515,012
5,190
(480,087)

1,625
(5,638)

(168,228)

56,003

485,419

2,263,457

35,967

2,672,618

(4,013)

(104,693)

252,386

909,261

2,289,373

19,363

3,365,690

(123,717)

Transfers in
Transfers out

1,986,834
(1,891)

(1,891)

76,502
(1,891)

2,063,336
(5,673)

Change in net position

1,880,250

252,386

907,370

2,363,984

19,363

5,423,353

(123,717)

Net position - beginning

8,124,096

860,876

8,721,620

5,900,291

1,007,598

(354,948)

(284,314)

8,124,096

860,876

8,721,620

5,900,291

1,007,598

(639,262)

Operating income (loss)
Nonoperating revenues (expenses):
Use of money and property
Taxes
Grants - capital
Grants - operating
Gain (loss) on sale of assets
Interest expense
Total nonoperating revenues (expenses)
Income (loss) before transfers

Restatement - change in accounting principle
Net position (deficit) - beginning, restated
Net position - ending

10,004,346

1,113,262

9,628,990

8,264,275

1,026,961

Adjustment for the net effect of the current year activity
between the internal service funds and the enterprise funds
Changes in net position of business-type activities

(27,235)
$

The notes to the basic financial statements are an integral part of this statement.
23

5,396,118

(762,979)

Page 113 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Proprietary Funds
Statement of Cash Flows

Business-Type Activities - Enterprise Funds
Other
Enterprise
Funds

Governmental
Activities
Internal
Service
Funds

Water

Solid
Waste

Sewer

Storm
Drain

3,381,430 $
(2,607,146)
(650,405)
6,400

2,480,433 $
(2,198,635)
45,479

1,855,484
(1,079,916)
(290,524)
39,702

227,321 $
(1,379,749)
(40,280)
4,597

46,720 $
(15,907)
(17,806)
49

7,991,388 $
(7,281,353)
(999,015)
96,227

1,016,407
(467,587)
(472,329)
6,947

130,279

327,277

524,746

(1,188,111)

13,056

(192,753)

83,438

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfer from other funds
Transfer to other funds
Loans from other funds
Taxes received

1,986,834
(1,891)
-

(1,891)
-

76,502
(1,891)
-

15,167

2,063,336
(5,673)
15,167

134,443
-

Net cash provided by (used for) noncapital financing
activities

1,984,943

(1,891)

74,611

15,167

2,072,830

134,443

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal paid
Interest paid
Capital grants received
Leases paid
Acquisition of capital assets
Proceeds from the sale of assets

(214,229)
(340,701)
(2,348,569)
77

(55,551)
(133,670)
279,726
(279,726)
5,113

(63,169)
3,335,691
(2,544,795)
-

(953)
(4,600)
-

(269,780)
(537,540)
3,614,464
(5,177,690)
5,190

(34,573)
(150,542)
1,625

Net cash provided by (used for) capital and
related financing activities

(2,903,422)

(184,108)

727,727

(5,553)

(2,365,356)

(183,490)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received

177,550

56,003

334,812

38,171

10,800

617,336

Net cash provided by (used for) investing activities

177,550

56,003

334,812

38,171

10,800

617,336

Net increase (decrease) in cash and cash equivalents

(610,650)

383,280

673,559

(347,602)

33,470

132,057

34,391

Cash and cash equivalents - beginning

3,849,406

759,538

4,485,999

2,068,594

241,099

11,404,636

170,673

5,159,558 $

1,720,992 $

274,569 $

11,536,693 $

205,064

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users
Payments to suppliers
Payments to employees
Other operating revenues

Net cash provided by (used for) operating activities

Cash and cash equivalents - ending

3,238,756 $

1,142,818 $

The notes to the basic financial statements are an integral part of this statement.
24

Total

Page 114 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Proprietary Funds
Statement of Cash Flows
(Continued)
Governmental
Activities
Internal
Service
Funds

Business-Type Activities - Enterprise Funds
Solid
Waste

Water

Other
Enterprise
Funds

Storm
Drain

Sewer

Total

Reconciliation of operating income (loss) to net
cash provided by (used for) operating activities:
Operating income (loss)
Adjustments to reconcile operating income
(loss) to net cash provided by (used for)
operating activities:
Depreciation
(Increase) decrease in:
Accounts receivable
Prepaid expenses
Net pension liability
Deferred outflows of resources from pensions
Increase (decrease) in:
Accounts payable and other liabilities
Deposits
Compensated absences
Deferred inflows of resources from pensions

Net cash provided by (used for) operating activities

63,535

196,383

423,842

25,916

(16,604) $

693,072

(119,704)

500,042

305,417

48,590

26,713

880,762

94,753

73,609
7,054
121,940

(15,723)
2
-

(323,770)
(21,649)
92,584

(95)
1,172
8,028

(65)
3,588

(265,979)
2
(13,488)
226,140

146
(71,008)
31,987
62,025

(609,464)
(16,538)
(9,899)

146,615
-

64,451
(16,129)

(1,271,731)
9

(545)
(31)

(1,670,674)
(16,538)
(26,050)

78,839
(576)
6,976

(1,188,111) $

13,056

130,279

327,277

524,746

The notes to the basic financial statements are an integral part of this statement.
25

(192,753) $

83,438

Page 115 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Fiduciary Funds
Statement of Fiduciary Net Position

Custodial
Funds
ASSETS
Cash and investments (in City investment pool)
Restricted cash with fiscal agents
Accounts receivable (net)
Prepaid bond insurance
Long term receivables

Total assets
LIABILITIES
Accounts payable
Agency obligations
Accrued interest
Long-term debt due within one year
Long-term debt due in more than one year
Total liabilities
NET POSITION
Restricted for:
Individuals, organizations, and other governments
Redevelopment agency dissolution
Total net position

2,112,579
657,244
57,539
-

Successor
Agency Private
Purpose
Trust Fund
$

1,081,300
4,839
32,774
43,750

2,827,362

1,162,663

5,468
17,776
-

9
47,745
295,000
3,962,003

23,244

4,304,757

2,804,118
-

(3,142,094)

2,804,118

The notes to the basic financial statements are an integral part of this statement.
26

(3,142,094)

Page 116 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Fiduciary Funds
Statement of Changes in Fiduciary Net Position

Custodial
Funds
ADDITIONS
Taxes
Property tax collections
Investment earnings
Proceeds from sale of property

- $
1,160,746
136,516
-

530,760
43,532
-

Total additions

1,297,262

574,292

DEDUCTIONS
Payments to bondholders
Administrative expenses
Interest

924,855
67,777
-

147,973
106,578

Total deductions

992,632

254,551

Change in fiduciary net position

304,630

319,741

Net position (deficit) - beginning

2,499,488

(3,461,835)

2,804,118 $

(3,142,094)

Net position (deficit) - ending

Successor
Agency Private
Purpose
Trust Fund

The notes to the basic financial statements are an integral part of this statement.
27

Page 117 of 187

NOTES TO THE BASIC FINANCIAL STATEMENTS

Page 118 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Chowchilla (the City) was incorporated on February 7, 1923, as a municipal corporation under the General
Laws of the State of California. The City operates as a self-governing local government unit within the State of California.
A five-member City Council appoints a City Administrator who administers the daily affairs under the policy guidance of
the City Council. The City has limited authority to levy taxes and has the authority to determine user fees for the services
that it provides. Voters elect a City Council that passes laws and determines broad policies. The City Council also
oversees the operations of the City and approves all budgets, fund transfers, and fund balance reserves. Services
provided by the City include public safety, streets and roads, water, sanitation, public improvements, culture and
recreation, parks, building inspections, planning and zoning, redevelopment, and general administration.
B. Blended Component Units
A primary government is financially accountable for a component unit if it appoints a voting majority of an organization’s
governing body and it is able to impose its will on the organization, or if there is a potential for the organization to provide
specific financial benefits to, or impose specific financial burdens on, the primary government. A primary government
may also be financially accountable if an organization is fiscally dependent on the primary government regardless of
whether the organization has a separately-elected governing board, a governing board appointed by a higher level of
government, or a jointly-appointed board, and there is a potential for the organization to provide specific financial
benefits to, or impose specific financial burdens on the primary government. Based upon the application of these criteria,
the following is a brief description of each component unit included within the City’s reporting entity. All such component
units have been “blended” as though they are part of the primary government as the component unit’s governing body is
substantially the same as the City’s primary government and there is a financial benefit or burden relationship between
the City and the component unit. In addition, management of the City has operational responsibilities for the component
unit, and/or the component units provide services almost entirely to the City or for the exclusive benefit of the City, even
though it does not provide services directly to it, or the City is entirely or almost entirely responsible for the repayment of
the debt of the component unit. Financial information for these component units can be obtained from the City’s
Administrative Services Department and from the City’s website at www.cityofchowchilla.org.
The Public Financing Authority (the Authority) of the City of Chowchilla was formed on August 14, 1989, for the purpose
of assisting the City in the financing of the acquisition, construction and installation of public capital improvements for the
use, benefit and enjoyment of the citizens served by the City. The City Council serves as the governing board of the
Authority and, therefore, is financially accountable for the operations of the Authority.
The Chowchilla Housing Authority (the Housing Authority) was established on January 24, 2012. The Housing Authority
was activated pursuant to State Law Section 34240 of the California Health and Safety Code, which allows for every City to
establish a housing authority. The Housing Authority is designed to protect local housing funds and programs, provide
new revenue opportunities for affordable housing programs, serve the public interest, promote public safety and welfare,
and ensure decent, safe, sanitary and affordable housing accommodations to persons of low income.
Since the City Council serves as the governing body of these entities, they are considered blended component units. As a
result, the financial activities of these entities are integrally related to those of the City and are “blended” with those of
the City.

Page 119 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C.

Basis of Presentation

The accounts of the City are organized on the basis of funds. A fund is an independent fiscal and accounting entity with a
self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid
management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number
of funds is maintained consistent with legal and managerial requirements.
Government-Wide Financial Statements – The Statement of Net Position and the Statement of Activities display
information about the primary government (the City) and its component units. These statements include the financial
activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the doublecounting of internal activities. 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.
The Statement of Activities presents a comparison between direct expense and program revenues for each different
identifiable activity of the City’s business-type activities 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 included in the program
expense reported for individual function. Certain indirect costs, which cannot be identified and broken down, are
included in the program expenses reported for individual functions and activities. Program revenues include: 1) fines,
fees, and charges paid by the recipients of goods and services offered by the programs; and 2) grants and contributions
that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not
classified as program revenues, including all taxes, are presented instead as general revenues.
Certain eliminations have been made as prescribed by GASB Statement No. 34 with regard to interfund activities,
payables, and receivables. All internal balances in the Statement of Net Position have 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, those
transactions between governmental and business-type activities have not been eliminated. The following interfund
activities have been eliminated: due to/due from other funds, interfund advances to/advances from, and transfers
in/transfers out.
Fund Financial Statements – The fund financial statements provide information about the City’s funds. Separate
statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund
financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining
governmental and enterprise funds are aggregated and reported as nonmajor funds. An accompanying schedule is
presented to reconcile and explain the differences in funds and changes in fund balances as presented in these
Statements to the Net Position and Changes in Net Position presented in the government-wide financial statements.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the
principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal
values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or
ancillary activities. Operating expenses are those expenses that are essential to the primary operations of the fund. All
other expenses are reported as nonoperating expenses.

Page 120 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C.

Basis of Presentation (Continued)

The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It accounts for all financial resources of the City except for
those required to be accounted for in another fund.
The Community Development Block Grant (CDBG) Special Revenue Fund accounts for the revenues received by the
various CDBG grants, the uses of those funds (i.e., grants and loans for housing rehabilitation projects), as well as the
receipt and re-use of program income generated by the repayment of CDBG loans.
The Impact Fees Special Revenue Fund accounts for the accumulation of resources from developers for the expected
future capital cost of the City as a result of development. Impact fees collected are restricted for the use of general,
police, fire and parks facilities; and streets and roads, signalization, water, sewer and storm drain capital projects.
The Measure N Special Revenue Fund accounts for 1% Public Safety Sales Tax add-on that was voter approved in
2018 and became effective April 1, 2019. Monies are allocated between Police and Fire Departments and are used for
growth and efficiency of the departments.
The Streets and Roads Fund accounts for the construction and maintenance of the street network system of the City.
Financing is provided by allocations from the County Local Transportation Fund (LTF) created by the Transportation
Development Act (TDA).
The Debt Service Fund accounts for the accumulation of resources that are restricted, committed or assigned for the
payment of principal and interest on long-term obligations of governmental funds.
The Capital Projects Fund accounts for the acquisition and construction of the City’s major capital projects, other
than those financed by proprietary funds.
Enterprise fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses and
Changes in Net Position, and a Statement of Cash Flows for each major enterprise fund and nonmajor fund.
The City has five enterprise funds – water, solid waste, sewer, storm drain and airport. These funds are used to account
for operations that are financed and operated in a manner similar to private business enterprise. In an enterprise fund,
the intent of the City Council is that the costs (expenses, including depreciation) of providing services to the general
public, on a continuing basis, be financed or recovered primarily through user charges.
The City reports the following major enterprise funds:
The Water Enterprise Fund accounts for the provision of water to the residents of the City. All activities necessary to
provide such services are accounted for in this fund, including, but not limited to, administration, operations,
distribution, maintenance, and debt service.
The Solid Waste Enterprise Fund accounts for the revenues and expenses for operation and maintenance of the solid
waste system.
The Sewer Enterprise Fund accounts for the provision of wastewater collection and treatment services to the
residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not
limited to, administration, operations, maintenance, and debt service.
The Storm Drain Fund accounts for the revenues and expenses for operation and maintenance of the storm drain
system.
31

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CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C.

Basis of Presentation (Continued)

Additionally, the government reports the following fund types:
Internal Service Funds:
The Fleet Maintenance Internal Service Fund accounts for the cost associated with maintaining the citywide fleet of
vehicles and rolling stock heavy equipment. Charges are assessed to each department on the basis of time/materials
necessary to maintain their equipment.
The Information Technology Internal Service Fund accounts for the costs of providing computer and information
services. User charges are recovered from other City departments that utilized the services provided.
The Employee Benefits Internal Service Fund accounts for compensated absences and other employee benefits that
are provided by the City.
Fiduciary Funds:
The Custodial Funds accounts for assets held by the City as an agent for special districts.
The Successor Agency Private Purpose Trust Fund accounts for assets and liabilities of the former redevelopment
agency until they are distributed to other units of state and local government as a result of the dissolution of the
redevelopment agency.
Measurement Focus, Basis of Accounting
Government-Wide, Proprietary and Fiduciary Fund Financial Statements – The government-wide, proprietary, and
fiduciary fund financial statements are reported using the economic resources measurement focus. The governmentwide and proprietary fund financial statements are reported using the accrual basis of accounting. Revenues are
recorded when earned, and expenses are recorded at the time liabilities are incurred, regardless of when the related cash
flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or
giving) equal value in exchange, include property and sales taxes, grants entitlements and donations. On an accrual basis,
revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales taxes are
recognized when the fiscal year in which all eligibility requirements have been satisfied.
Governmental Fund Financial Statements – Governmental funds are reported using current financial resources
measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting,
revenues are recognized when measurable and available. Property and sales taxes, interest, and charges for services are
accrued when their receipt occurs within sixty days after the end of the accounting period to be both measurable and
available. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expenditures related to claims and judgments and compensated absences, are recorded
only when payment is due. General capital assets acquisitions are reported as expenditures in governmental funds.
Proceeds of general long-term debt and capital leases are reported as other financing sources.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues, such as
charges for services, result from exchange transactions associated with the principal activity of each fund. Nonoperating
revenues, such as interest income, state and federal grants and subsidies, result from nonexchange transactions or
ancillary activities. Operating expenses include costs for providing services and delivering goods such as administrative
expenses and depreciation on capital assets. All other expenses not meeting this definition are reported as nonoperating
expenses.

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CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances
Cash and Cash Equivalents
For purposes of reporting cash flow, the City considers all highly-liquid investments with maturity of three months or less
when purchased to be cash and cash equivalents.
Cash and Investments
The City maintains a cash and investment pool that is available for all funds. Each fund-type balance in the pool is
reflected on the combined balance sheet as cash and investments. The City apportions interest earnings to all funds
based on their quarterly cash balances.
The City pools cash and investments with the City Treasurer except for investments managed by fiscal agents under
bonded debt agreements. Interest from bank accounts and investments are allocated quarterly to the various funds
based on the fund’s contribution to the pool. The City has stated investments at fair value in the Statement of Net
Position and Balance Sheet. The fair value of investments is based on published market prices and quotations from major
investment brokers.
Cash and investments with fiscal agent represent funds held by various trustees from proceeds of the issuance of bonds in
order to establish required reserve funds and to pay bond issuance costs per the respective trust agreements.
Credit Risk – The City’s investment policy limits certain types of investments to various ratings.
Custodial Credit Risk—Deposits – Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits
may not be returned to it. The City has a deposit policy for custodial risk that requires collateralization on certificates
of deposit and repurchase (and reverse) agreements. In addition, the City maintains custodial agreements with
certain independent third parties.
Concentration of Credit Risk – The City places no limit on the amount the City may invest in any one issuer.
Interest Rate Risk – Reserve funds may be invested in securities exceeding 10 years if the maturity of such
investments is made to coincide as nearly as practicable with the expected use of the funds.
Restricted Assets
Certain proceeds of the general obligation debt and enterprise debt are classified as restricted assets on the balance
sheet because their use is limited by applicable debt covenants. “Restricted cash and investments with fiscal agents” is
used to report resources set aside for potential deficiencies in the repayment ability of the debt service fund and for
payment of construction projects undertaken by the City.

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CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances (Continued)
Internal Balances
Interfund transactions are reflected as loans, services provided or used, or reimbursements or transfers. Loans reported
as receivables and payables, as appropriate, are subject to elimination upon consolidation and are referred to as either
“due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the
noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the
business-type activities are reported in the fund financial statements and are offset by a fund balance reserve account in
applicable governmental funds to indicate that they are not available for appropriation and are not available financial
resources.
Services provided or used, deemed to be at market or near market rates, are treated as revenues and expenditures or
expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its
related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between
governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.
Notes Receivable
The City engages in programs designed to encourage construction or improvement of housing for persons with low to
moderate income and to encourage business development. Under these programs, grants or loans are provided under
favorable terms to homeowners or developers who agree to spend these funds in accordance with the City’s terms. For
financial statement purposes, the City has established an estimated allowance for potentially uncollectible loans. The
balance of notes receivable includes loans that may be forgiven if certain terms and conditions of the loans are met.
Leases
Lessee: The City is a lessee for a noncancellable lease of a building. The lessee recognizes a lease liability and an intangible
right-to-use lease asset (lease asset) in the government-wide financial statements. The City recognizes lease liabilities with
an initial, individual value of $5,000 or more. At the commencement of a lease, the City initially measures the lease
liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is
reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the
lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct
costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount
the expected lease payments to present value, (2) lease term, and (3) lease payments.


The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the
lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for
leases, which it has determined is the prime rate at the inception of the lease.



The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of
the lease liability are composed of fixed payments.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease
asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Lease
assets are reported with other capital assets and lease liabilities are reported with long-term debt on the Statement of
Net Position.

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CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances (Continued)
Leases (Continued)
Lessor: The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and
governmental and enterprise fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments
expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of
lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease
receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred
inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease
receipts to present value, (2) lease term, and (3) lease receipts.


The City uses the interest rate charged to the lessees as the discount rate. When the interest rate charged to the
lessees is not provided, the City generally uses the implied rate of return as the discount rate for leases. When
the implied rate of return has not been determined, the City uses its estimated incremental borrowing rate
which it has determined is the prime rate at the inception of the lease.



The lease term includes the non-cancellable period of the lease. Lease receipts included in the measurement of
the lease receivable are composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the
lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the
amount of the lease receivable.
Capital Assets
Capital assets, which include public domain (infrastructure) capital assets consisting of certain improvements, including
streets (pavements, medians, curbs/gutters, sidewalks, traffic signals, monument signs and bridges), storm drains and
water/sewer systems and improvements, are reported in the applicable governmental or business-type activities column
in the government-wide financial statements.
Generally, capital asset acquisitions in excess of $5,000 (general capital assets) and $30,000 (infrastructure) are
capitalized if they have an expected useful life of one year or more. Acquisitions of capital assets (including
infrastructure) are recorded at historical cost at the time of purchase. Donated capital assets are recorded at their fair
value at the date of donation.
Land and construction in progress are not depreciated. The other property, plant, equipment, and infrastructure of the
City are depreciated using the straight-line method over the following estimated useful lives:
Land improvements
Buildings and improvements
Machinery, equipment and vehicles
Infrastructure

20-50 years
20-50 years
6-10 years
20-100 years

Page 125 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances (Continued)
Subscription-Based Information Technology Arrangements (SBITAs)
Lessee: The City enters into noncancellable subscription-based information technology arrangements (SBITAs) for the
acquisition of various information technology services. SBITAs are accounted for in accordance with GASB Statement No.
96.
Upon commencement of a subscription, the City recognizes a subscription liability and an intangible right-to-use
subscription asset (subscription asset) in the government-wide financial statements. Subscription liabilities are recognized
when their initial individual values are $5,000 or more. The subscription liability is initially measured at the present value
of payments expected to be made during the subscription term and is subsequently reduced by the principal portion of
subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability,
adjusted for subscription payments made at or before the subscription commencement date, and any directly
attributable initial costs. The subscription asset is amortized on a straight-line basis over its useful life.
Key estimates and judgments related to SBITAs include determining the discount rate used to discount expected
subscription payments to present value, the subscription term, and the composition of subscription payments.
The City generally uses the interest rate charged by the subscription provider as the discount rate. When the interest rate
charged by the provider is not provided, the City generally uses its estimated incremental borrowing rate as the discount
rate for SBITAs, which is the prime rate at the inception of the subscription.
Compensated Absences
It is the City’s policy to permit employees to accumulate a limited amount of earned but unused leave time. Permanent
employees earn from 12 to 30 vacation days per year depending upon their length of employment. Accumulated vacation
days can be carried forward up to 2 years. Each year, by September 30, certain employees may request to receive a cash
payment for the value of all or a portion of their accumulated vacation leave. Upon termination or retirement, employees
are compensated for the value of accrued vacation leave.
For full-time employees, sick leave is accumulated at the rate of 12 days per year. Upon retirement, employees may also
convert a portion of their unused sick leave into service credit through the California Public Employees Retirement
System.
The vacation and sick leave balances, along with compensatory leave and holiday hours are reflected in the Employee
Benefits Fund, which is part of the Internal Service Funds in the Statement of Net Position.
Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt
and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type
activities, or proprietary fund type Statement of Net Position. Bond premiums and discounts are deferred and amortized
over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium
or discounts. Bond issuance costs are expensed immediately.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond
issuance costs, during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses. Issuance costs, whether withheld from the actual debt proceeds received, are reported
as debt service expenditures.
36

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CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances (Continued)
Pensions
In government-wide financial statements, pensions are recognized and disclosed using the accrual basis of accounting
(see Note 11 and the RSI section immediately following the Notes to the Basic Financial Statements), regardless of the
amount recognized as pension expenditures on the modified accrual basis of accounting. The City recognizes a net
pension liability for the qualified pension plan in which it participates, which represents the excess of the total pension
liability over the fiduciary net position of the qualified pension plan, measured as the City’s proportionate share thereof in
the case of a cost-sharing multiple-employer plan. Changes in the net pension liability during the period are recorded as
pension expense, or as deferred inflows of resources or deferred outflows of resources depending on the nature of the
change, in the period incurred. Those changes in net pension liability that are recorded as deferred inflows of resources
or deferred outflows of resources that arise from changes in actuarial assumptions or other inputs and differences
between expected or actual experience are amortized over the weighted average remaining service life of all participants
including retirees, in the respective qualified pension plan and recorded as a component of pension expense beginning
with the period in which they arose. Projected earnings on qualified pension plan investments are recognized as a
component of pension expense. Differences between projected and actual investment earnings are reported as deferred
inflows of resources or deferred outflows of resources and amortized as a component of pension expense on a closed
basis over a five-year period beginning with the period in which the difference occurred.
Interest Payable
In the government-wide financial statements, interest payable on long-term debt is recognized as a liability when incurred
and is not recognized in the governmental funds’ financial statements.
Unearned Revenue
Unearned revenue is that for which asset recognition criteria have been met, but for which revenue recognition criteria
have not been met. The City typically records intergovernmental revenues (primary grants and subventions) received but
not earned (qualifying expenditures not yet incurred).
Unavailable Revenue
In the governmental fund financial statements, unavailable revenue is recorded when transactions have not yet met the
revenue recognition criteria based on the modified accrual basis of accounting. The City records unavailable revenue for
transactions for which revenues have been earned, but for which funds are not available to meet current financial
obligations.
Transfers
In the fund financial statements interfund transfers are recorded as transfers in (out) except for transactions that are
described below:
Charges for services are recorded as revenues of the performing fund and expenditures of the requesting fund.
Unbilled costs are recognized as an asset of the performing fund at the end of the fiscal year.
Reimbursements for expenditures, initially made by one fund that is properly applicable to another fund, are
recorded as expenditures in the fund that is reimbursed.

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CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances (Continued)
Net Position
The government-wide and enterprise fund financial statements utilize a net position presentation. Net position is
reported as net investment in capital assets, restricted or unrestricted.
Net investment in capital assets – groups all capital assets, including infrastructure, into one component of net
position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition,
construction, or improvement of these assets reduce the net position balance.
Restricted – represents external restrictions imposed by creditors, grantors, contributors, or laws of regulations of
other governments and restrictions imposed by law through constitutional provisions or enable legislation.
Unrestricted – represents net position of the City, not restricted for any project or other purpose.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources as
they are needed.
Fund Balances
The governmental fund financial statements present fund balances based on classifications the comprise a hierarchy that
is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which
amounts in the respective governmental funds can be spent. The classification used in governmental fund financial
statements are as follows.
Nonspendable Fund Balance – Amounts cannot be spent either because they are in nonspendable form (such as
inventory or prepaid expenses, and long-term loans and notes receivable) or because they are legally or contractually
required to be maintained intact (such as principal of a permanent fund).
Restricted Fund Balance – Amounts with external constraints placed on the use of these resources (such as debt
covenants, grantors, contributors, or laws or regulations of other governments, etc.) or imposed by law through
constitutional provisions or enabling legislation.
Committed Fund Balance – Amounts that can only be used for specific purposes pursuant to constraints imposed by
City Council, the City’s highest level of decision-making authority, through an ordinance or resolution. These
committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified
uses through the same type of formal action taken to establish the commitment.
Assigned Fund Balance – Amounts that do not meet the criteria to be classified as restricted or committed but that
are intended to be used for specific purposes. Intent is expressed by the City Council or its designee and may be
changed at the discretion of the City Council or its designee. For all governmental funds other than the General Fund,
any remaining positive amounts not classified as nonspendable, restricted or committed must be designated as
assigned fund balance.
Unassigned Fund Balance – These are either residual positive net resources of the General Fund in excess of what can
properly be classified in one of the other four categories, or negative balances in all other funds.
In circumstances when expenditures are made for a purpose for which amounts are available in multiple fund balance
classifications, fund balance is generally depleted in the order of restricted, committed, assigned, and unassigned.

Page 128 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances (Continued)
Minimum Fund Balance Policy
The City’s minimum fund balance policy requires the City to maintain reserves equal to 2 months (17%) and 3 months
(25%) of costs based on the annual adopted budget for Enterprise Funds and the General Fund, respectively. The use of
these funds shall be allowed in situations resulting from the loss of revenues and must be replenished before the end of
the following fiscal year.
Risk Management
The City participates with other public entities in a joint venture under a joint powers agreement which established the
Central San Joaquin Valley Risk Management Authority (CSJVRMA). The relationship between the City and CSJVRMA is
such that CSJVRMA is not a component unit of the City for financial reporting purposes.
Use of Estimates
The preparation of financial statements in conformity with United States generally accepted accounting principles (U.S.
GAAP) requires management to make estimates and assumptions that affect certain reported amounts and disclosures.
Actual results could differ from those estimates.
Property Tax Calendar
Madera County is responsible for assessing, collecting and distributing property taxes in accordance with enabling
legislation. Revenue received is based on an allocations factor calculated by the County under the provisions of
Proposition 13 plus a percentage of the increase in market value in specific areas. The City’s property tax is liened based
on the assessed value listed as of the prior January 1 for all real and personal property located in the City. Property sold
and the assessment date (January 1) is reassessed and the amount of property tax assessed is prorated.
Secured property taxes are levied on October 1 and are due in two installments on November 1 and February 1. The tax
becomes delinquent after December 10 and April 10, respectively. Unsecured property tax is levied on July 1, due on July
31, and becomes delinquent after August 31.

NOTE 2 – CASH AND INVESTMENTS
Cash and investments as of June 30, 2025 are classified in the accompanying financial statements as follows:

Statement of Net Position:
Cash and investments
Restricted cash and investments with fiscal agents
Statement of Fiduciary Net Position:
Cash and investments
Restricted cash with fiscal agents

41,653,853
1,168,443
3,193,879
657,244

Total cash and investments

46,673,419

Page 129 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 2 – CASH AND INVESTMENTS (Continued)
Cash and investments as of June 30, 2025 consisted of the following:

Cash on hand
Deposits with financial institutions
Investments

2,200
5,345,761
41,325,458

Total cash and investments

46,673,419

A. Deposits
The carrying amount of the City’s cash deposits was $5,345,760 at June 30, 2025. Bank balances were $5,535,405, the
total amount of which was insured and/or collateralized with securities held by the pledging financial institutions in the
City’s name as described below.
The California Government Code requires California banks and savings and loan associations to secure the City’s cash
deposits by pledging securities as collateral. This code states that collateral pledged in this manner shall have the effect
of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits
is considered to be held in the City’s name.
The market value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows
institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total
cash deposits.
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal
agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on
an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income
from cash and investments of fiscal agents is credited directly to the related fund.
Investments Authorized by the California Government Code and the City’s Investment Policy
In accordance with Section 53601 of the California Government Code and the City’s investment policy, the City is
authorized to invest in Certificates of Deposit, the California Local Agency Investment Fund (LAIF), U.S. Treasury
Obligations, U.S. Government Agencies, Medium-Term Notes, Bankers’ Acceptances, and Commercial Paper of “prime”
quality of the highest ranking or of the highest letter and numerical rating as provided by Moody’s Investor Services, Inc.
or Standards and Poor’s Corporation. In accordance with the City’s investment policy, the City will not invest in
repurchase agreements, reverse repurchase agreements, or any other type of investments prohibited by California
Government Code Section 53601.

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CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 2 – CASH AND INVESTMENTS (Continued)
A. Deposits (Continued)
Disclosure 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.
Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is
provided by the following table that shows the maturity date of each investment:

12 Months
Investment Type
State Investment Pool
Federal Agency Securities:
U.S. Treasury Notes
Held by fiscal agent:
Treasury Obligation Funds
Tri County Savings
Money Market Funds

Total

Total
19,271,200 $

or Less
19,271,200

12,283,593

1,333,684
7,944,978
492,003

41,325,458 $

41,325,458

Disclosure 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 actual rating as of year-end for each investment type:

Ratings as of Year-End
Investment Type
State Investment Pool
Federal Agency Securities:
U.S. Treasury Notes
Held by fiscal agent:
Treasury Obligation Funds
Tri County Savings
Money Market Funds
Total

Total
$

19,271,200

AAAm
$

Not Rated
-

19,271,200

12,283,593

1,333,684
7,944,978
492,003

1,333,684
-

7,944,978
492,003

41,325,458

1,333,684

39,991,774

Concentration of Credit Risk
The investment policy of the City contains no limitation on the amount that can be invested in any one issuer beyond that
stipulated by the California Government Code. The City did not have investments in any one issuer (other than U.S.
Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City’s investments
for the year ended June 30, 2025.
41

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CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 2 – CASH AND INVESTMENTS (Continued)
A. Deposits (Continued)
Investment Valuation
Investments, including derivative instruments that are not hedging derivatives, are measured at fair value on a recurring
basis. Recurring fair value measurements are those that Governmental Accounting Standards Board (GASB) Statements
require or permit in the Statement of Net Position at the end of each reporting period. Fair value measurements are
categorized based on the valuation inputs used to measure an asset’s fair value: Level 1 investments reflect prices quoted
in active markets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
Investments’ fair value measurements are as follows at June 30, 2025:

Investments
Debt securities:
U.S. Treasury Notes
Treasury Obligation Funds

Fair Value
$

Total
Investments not subject to fair value
heirarchy:
Money Market Funds
Tri County Savings
State Investment Pool
Total Investments

Fair Value Measurements
Level 1 Inputs
Level 2 Inputs
Level 3 inputs

12,283,593
1,333,684

13,617,277

492,003
7,944,978
19,271,200
$

41,325,458

Treasury obligations are valued at marked to market based on quoted market closing prices.
Investment in State Investment Pool
The City 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’s investment
in this pool is reported in the accompanying financial statements at amount based upon the City’s pro-rata share of the
amortized cost provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of the portfolio). The
balance available for withdrawal is based in the accounting records maintained by LAIF, which are recorded on an
amortized cost basis. Although the City did not participate in any securities lending transactions or enter into any reverse
repurchase agreements during the year, the City does have an investment in LAIF in the amount of $19,271,200. The
Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members
designated by State statute. The value of the pool shares in LAIF, which may be withdrawn, is determined on an
amortized cost basis, which is different from the fair value of the City’s position in the pool.
Investment in Money Market Funds
Investment in the money market funds is valued at $492,003 and have a maturity of less than one year and are presented
at amortized costs, which approximates fair value. As they are presented at amortized costs, they are not an investment
type that can be categorized at any level in the fair value hierarchy.

Page 132 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 3 – RECEIVABLES
Receivables as of the June 30, 2025 year-end for the City’s individual major funds and nonmajor funds, including
applicable allowances for uncollectible accounts, were as follows:
Governmental Activities
CDBG
Grants
Special
Revenue

General
Receivables:
Accounts receivable
Intergovernmental receivables
Notes receivable
Less: allowance for
for uncollectibles
Net receivables

474,396
872,696
-

Measure N
Special
Revenue

Impact
Fees

40,489
22,890,786

1,347,092

$ 22,931,275

23,478
-

495,775
-

23,478

Streets &
Roads (LTF)
$

9,599
1,742,037
-

495,775

11,376
-

Other
Governmental
Funds

Capital
Projects

1,751,636

11,376

Solid
Waste

Receivables:
Accounts receivable
Intergovernmental receivables
Long-term receivables
Less: allowance for
for uncollectibles
Net receivables

356,028
7,814
-

337,547

250,677
332,697
-

(17,135)

(26,295)
$

276,948
5,930
-

265,743

(15,774)
$

Nonmajor
Airport

Storm
Drain

Sewer

567,600

25,448
387,506
-

(2,147)
$

410,807

22,846

497,160
4,077,206
24,818,953
-

2,832,687

29,393,319

909,101
756,793
-

57,539
-

4,839
43,750

(61,351)

Fiduciary Funds
Successor Agency
Private Purpose
Custodial
Trust Fund

Total

22,846
-

13,165
891,355
1,928,167
-

Business-Type Activities - Enterprise Funds

Water

Total
Governmental
Funds

1,604,543

57,539

22,890,786
1,859,317
68,850

24,818,953

Receivables are presented on the Statement of Net Position as follows:

Accounts receivable, net
Intergovernmental receivables
Notes receivable, net
Total

Governmental
Activities
$
497,160
4,077,206
24,818,953

Business-Type
Activities
$
847,750
756,793
-

Total
$ 1,344,910
4,833,999
24,818,953

$ 29,393,319

$ 30,997,862

1,604,543

Receivables in governmental funds which are not expected to be collected in one year are as follows:

Notes receivable in CDBG Grants Special Revenue Fund
Notes receivable in Home Investment Program Grants Special Revenue Fund
Notes receivable in Low and Moderate Income Housing Asset Special Revenue Fund
Total

48,589

Page 133 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 4 – INTERNAL BALANCES
Due from and due to balances at June 30, 2025 were as follows:

Due From
Governmental Funds:
Major Funds:
General Fund
Debt Service Fund
Nonmajor Funds:
SAFER Fire Grant Fund
Transit System Special Revenue Fund
Information Technology Internal Service Fund
Low and Moderate Low Income Housing Asset Fund

1,057,645 $
-

Total

Due To

13,479
30,529
721,389
255,273
36,975

1,057,645 $

1,057,645

The “due from” balance of $1,057,645 in the General Fund listed above represents loans made to other funds to cover
operating cash deficit balances.
Advances to and from balances at June 30, 2025 were as follows:

Advances To
Governmental Funds:
Major Funds:
General Fund
Impact Fees Special Revenue Fund
Total

Advances From

294,136 $
-

294,136

294,136 $

294,136

The balance of $294,136 for advances from other funds in the Impact Fees Special Revenue Fund consists of cash
advances from the General Fund and will be paid back with future impact fees. The City has indicated that there are no
plans to collect on the advance within the next year.

Page 134 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 5 – TRANSFERS
Transfers for the year ended June 30, 2025, are summarized as follows:

Transfers In
Governmental Funds:
Major Funds:
General Fund
CDBG Grants Special Revenue Fund
Impact Fees Special Revenue Fund
Measure N Special Revenue Fund
Streets and Roads Fund (LTF) Special Revenue Fund
Debt Service Fund
Capital Projects Fund
Nonmajor Funds:
State Gas Tax Special Revenue Fund
SB1 Special Revenue Fund
Measure T Special Revenue Fund
Transit System Special Revenue Fund
HOME Investment Partnership Program
Special Revenue Fund
EDBG Grant Special Revenue Fund
Enterprise Funds:
Major Funds:
Storm Drain Enterprise Fund
Water Enterprise Fund
Sewer Enterprise Fund

1,107,489
1,407,908
32,131

Total

1,349,958 $
22,058
-

Transfers Out

3,360,056 (1), (13)
(2)
103,559
(11)
89,796
(5)
1,332,174
(7)
2,074
(14)
48,955
-

(3)
(4)
(9)

14,502
52,425

205,673
272,765
607,024
-

1,777
-

23,835

(8)

76,502
1,986,834
-

1,891
1,891
1,891

(6)
(12)
(10)

6,051,584 $

6,051,584

The significant transfers out noted above were for the following purposes:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)

Transfer Out $14,502 to SB1 Special Revenue Fund for projects required by State; $2,828 to Streets and Roads for CFD Services fund that
belong to Streets, $1,355,892 for Debt Service.
Transfer out $76,502 to Storm Drain for Kings Ave Storm Drain Project and $27,057 to Streets and Roads for ADA Sidewalk Project.
Transfer out to Capital Projects $5,300 for Bridge Preventive Maintenance Project, $5,360 for Berenda Slough Bridge, $1,270 for Riverside
pedestrian improv project and $193,743 to Streets and Roads for Street Projects.
Transfer out to Streets and Roads $272,765 for Street Projects.
Transfer out to General Fund $1,271,012 to cover Measure N Projects and Equipment and $61,162 to Debt Service for Pension Bond
Transfer out $1,891 to Storm Drain for equipment expenses that belong to storm drain.
Transfer out to General Fund $2,074 for Street Projects.
Transfer $22,058 to CDBG Grants Special Revenue Fund funds and $1,777 to Home Investment Partnership Program to cover costs
associated with Grant management to cover contracted costs when no Admin Program Income is available.
Transfer out $534,399 to Streets and Roads; $52,425 to Transit System Special Revenue Fund; $20,200 to Capital Projects for General Street
Maintenance, Projects, and new bus for Transit.
Transfer out $1,891 to General Fund to cover debt service and equipment expenses.
Transfer out $13,099 to General Fund for Edward Ray Park and $76,697 to Streets and Roads for street projects.
Transfer out $1,891 to General Fund to cover debt service and equipment expenses.
Transfer out $1,986,834 to Water Fund for Well Projects and Water Main Stubouts.
Transfers out of clean renewal energy subsidy to General Fund for related debt.

Page 135 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 6 – CAPITAL ASSETS
Capital assets activity of the governmental activities for the year ended June 30, 2025, was as follows:
Balance
July 1, 2024
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated

Balance
Additions

Reductions

Transfers

June 30, 2025

766,397 $
4,178,174
4,944,571

- $
1,975,247
1,975,247

- $
(2,571,820)
(2,571,820)

Capital assets, being depreciated/amortized:
Land improvements
Buildings and improvements
Right-to-use leased asset
SBITA - Right-to-use asset
Machinery, equipment and vehicles
Infrastructure
Total capital assets, being depreciated/amortized

1,569,968
9,583,560
507,101
86,931
7,550,876
24,598,161
43,896,597

19,069
395,694
1,401,619
1,816,382

1,157,934
1,213,153
(376,376)
1,994,711

(44,278)
(44,278)

2,746,971
10,796,713
858,517
86,931
8,576,119
24,598,161
47,663,412

Less accumulated depreciation/amortization for:
Land improvements
Buildings and improvements
Right-to-use leased asset
SBITA - Right-to-use asset
Machinery, equipment and vehicles
Infrastructure
Total accumulated depreciation/amortization

(1,310,951)
(3,766,543)
(193,935)
(28,070)
(4,179,455)
(10,986,962)
(20,465,916)

(59,108)
(248,546)
(107,103)
(28,977)
(648,639)
(667,284)
(1,759,657)

305,868
305,868

4,058
4,058

(1,370,059)
(4,015,089)
(296,980)
(57,047)
(4,522,226)
(11,654,246)
(21,915,647)

23,430,681

56,725

2,300,579

(40,220)

25,747,765

(271,241) $

(40,220) $

30,095,763

Total capital assets being depreciated/amortized, net
Governmental activities capital assets, net

28,375,252 $

2,031,972 $

- $
-

766,397
3,581,601
4,347,998

Depreciation expense was charged to the following functions/programs of the governmental activities of the primary
government as follows:
Governmental activities:
General government
Public safety
Highways and streets
Culture and recreation
Capital assets held by government's internal service funds are charged to the
various functions based on their usage of the assets
Total depreciation/amortization expense - governmental activities

281,510
578,371
668,162
136,861
94,753

1,759,657

Page 136 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 6 – CAPITAL ASSETS (Continued)
Capital assets activity of the business-type activities ended June 30, 2025 was as follows:
Balance

Balance
Additions

July 1, 2024
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated

2,030,152
4,012,819
6,042,971

5,149,940
5,149,940

Reductions
$

Transfers

- $
(4,145,024)
(4,145,024)

June 30, 2025
-

2,030,152
5,017,735
7,047,887

Capital assets, being depreciated:
Land improvements
Buildings and improvements
Right-to-use leased asset
Machinery, equipment, and vehicles
Infrastructure
Total capital assets, being depreciated

1,253,762
5,464,579
45,135
1,684,225
27,054,638
35,502,339

4,145,024
12,750
15,000
4,172,774

(25,900)
(47,400)
(73,300)

44,278
44,278

5,398,786
5,451,429
89,413
1,651,825
27,054,638
39,646,091

Less accumulated depreciation for:
Land improvements
Buildings and improvements
Right-to-use leased asset
Machinery, equipment, and vehicles
Infrastructure
Total accumulated depreciation

(948,158)
(1,999,198)
(4,136)
(895,666)
(9,851,326)
(13,698,484)

(34,896)
(100,735)
(17,720)
(126,099)
(601,312)
(880,762)

25,900
47,400
73,300

(4,058)
(4,058)

(983,054)
(2,074,033)
(25,914)
(974,365)
(10,452,638)
(14,510,004)

21,803,855

3,292,012

40,220

25,136,087

Total capital assets being depreciated, net
Business-type activities capital assets, net

27,846,826

8,441,952

(4,145,024) $

40,220

32,183,974

Depreciation expense was charged to the following functions/programs of the governmental activities and business-type
activities of the primary government as follows:

Business-type activities:
Water
Sewer
Storm drain

500,042
305,417
48,590
26,713

880,762

Airport
Total depreciation expense - business-type activities

Page 137 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 7 – SUBSCRIPTION BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITAS) AS A LESSEE
In fiscal year 2023, the City entered a three-year SBITA as a lessee for OpenGov software, which has been recorded in the
Information Technology Internal Service Fund. An initial SBITA liability was recorded in the amount of $56,745 during
fiscal year 2023. There is no associated liability as of June 30, 2025. The value of the right-to-use software as of the end of
the current fiscal year was $56,745 and had accumulated amortization of $42,966. In accordance with GASB 96, certain
variable and other payments are not included in the measurement of the subscription liability. There were no outflows of
resources recognized in the reporting period for variable and other payments.
In fiscal year 2024, the City entered into a SBITA in accordance with GASB Statement No. 96, related to firewall IT assets
and components used for networking and security which has been recorded in the Information Technology Internal
Service Fund. The arrangement is with CDW-G and commenced in February 2024 with a three-year term. There are no
extension options included in the agreement.
Upon commencement of the arrangement, the government recognized a subscription liability of $30,186, representing
the present value of the subscription payments. The liability was fully paid up front, and therefore no additional payments
are due over the term of the agreement. The corresponding right-to-use subscription asset was recorded in the same
amount and is being amortized over its useful life of three years.
The discount rate applied to measure the present value of the liability was 8.5%. The value of the right-to-use software as
of the end of the current fiscal year was $30,186 and had accumulated amortization of $14,081. There are no variable
payments, termination penalties, or additional commitments related to this SBITA.

NOTE 8 – LONG-TERM DEBT
The following is a summary of debt transactions of the City for the year ended June 30, 2025:
Balance
June 30, 2024
Governmental Activities:
2005 Civic Center Bond
2017 Series Lease Revenue Bonds
State of California NSP Loan
2019 Taxable Pension Obligation Bonds
Add: Premiums
Less: Discounts
Leases
Subscription Based Information Technology
Arrangements (SBITA)
Compensated absences*

3,355,000 $
3,550,000
9,913,215
8,705,000
131,785
(95,329)
322,337
19,845
564,375

Additions

Reductions

Balance
June 30, 2025

Transfers

Amounts
Due Within
One Year

- $
395,694

(220,000) $
(25,000)
(575,000)
(5,990)
6,456
(181,961)

- $
(40,359)

3,135,000 $
3,525,000
9,913,215
8,130,000
125,795
(88,873)
495,711

230,000
620,000
108,820

283,738

(19,845)
-

848,113

409,840

Total Governmental Activities Long-Term Debt

26,466,228 $

679,432 $

(1,021,340) $

(40,359) $

26,083,961 $

1,368,660

Business-Type Activities:
Direct Placements and Direct Borrowings:
State Water Revolving Loan
Total Direct Placements and Borrowings

2,244,194 $
2,244,194

- $
-

(160,300) $
(160,300)

- $
-

2,083,894 $
2,083,894

160,300
160,300

8,060,000
3,005,000
41,214
451,996

(25,000)
(45,000)
(15,366)
(24,253)

40,359
-

8,035,000
2,960,000
66,207
427,743

40,000
50,000
16,149
-

13,802,404 $

- $

(269,919) $

40,359 $

13,572,844 $

266,449

2017 Series Water Revenue Bonds
2017 Series Wastewater Revenue Bonds
Leases
Add: Premiums
Total Business-Type Activities Long-Term Debt

Page 138 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 8 – LONG-TERM DEBT (Continued)
Long-term debt payable at June 30, 2025 is comprised of the following individual issues:
A. 2005 Civic Center Bond
In 2005, the City issued Revenue Bonds in the aggregate principal amount of $5,890,000 to refund the 2002 $1,900,000
Civic Center Project Private Placement Financing and to finance certain public improvements. The original amount of the
note ($5,890,000) was secured by revenues of the Public Financing Authority (the Authority) consisting primarily of lease
payments to be received by the Authority from the City under a lease agreement dated July 1, 2005, by and between the
Authority and the City which are payable from the City’s General Fund for lease by the City of certain real property and
public facilities located in the City, and then constituting the Civic Center Project. There is a provision whereby if the City
is unable to make payment or does not comply with bond covenants, the Trustee may, and shall at the written direction
of the Owners of not less than a majority in aggregate principal amount of Bonds at that time outstanding, declare the
principal of all bonds outstanding and the accrued interest thereon to be due and payable immediately. Semiannual
payments range from $7,875 to $357,875 and are payable each January 1 and July 1 through 2036. During the year ended
June 30, 2017 the 2005 Civic Center Bond was partially refunded by the 2016 Civic Center Bond for the purposes of
savings on future debt service payments.
Annual debt service requirements to maturity of the 2005 Civic Center Bond are as follows:

Fiscal Year
Ending June 30
2026
2027
2028
2029
2030
2031-2035
2036-2040

Total

Principal
230,000 $
235,000
250,000
260,000
270,000
1,540,000
350,000

Interest
129,456
119,175
108,238
96,863
85,050
223,425
-

3,135,000 $

762,207

B. 2017 Series Lease Revenue Bonds
In 2018, the Chowchilla Public Financing Authority issued Revenue Bonds in the aggregate principal amount of $3,630,000
to finance the costs of clean renewable energy projects and other capital improvements. The original amount of the
bonds ($3,630,000) were secured by a pledge of and lien on revenues consisting primarily of lease payments from the
City. There is a provision whereby if the City is unable to make payment or does not comply with bond covenants, the
Trustee may, and shall at the written direction of the Owners of not less than a majority in aggregate principal amount of
Bonds at that time outstanding, declare the principal of all bonds outstanding and the accrued interest thereon to be due
and payable immediately. Principal is payable annually on June 1 in amounts ranging from $10,000 to $375,000, with
interest due semi-annually at variable rates between 2.6% - 5.0%, maturing on June 1, 2047.

Page 139 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 8 – LONG-TERM DEBT (Continued)
B. 2017 Series Lease Revenue Bonds
Annual debt service requirements to maturity of the 2017 Series Lease Revenue Bonds are as follows:

Fiscal Year
Ending June 30
2026
2027
2028
2029
2030
2031-2035
2036-2040
2041-2045
2046-2050
Total
C.

Principal
- $
30,000
40,000
40,000
45,000
420,000
850,000
1,495,000
605,000

Interest
155,117
155,117
153,961
152,418
150,874
720,104
609,130
356,679
37,362

3,525,000 $

2,490,762

2019 Pension Obligation Bonds

In 2019, the Chowchilla Public Financing Authority issued Pension Obligation Bonds in the aggregate principal amount of
$10,500,000 to finance a portion of the City’s unfunded accrued actuarial liability to the California Public Employees’
Retirement System (CalPERS) for the benefit of the City’s employees and pay the costs of issuance of the bonds. The
bonds are unsecured obligations payable from any source of legally available funds of the City, including, but not limited
to, amounts held by the City on deposit in its General Fund. Principal is payable annually on July 15 in amounts ranging
from $10,000 to $640,000, with interest due semi-annually at variable rates between 2.94% - 4.75%, maturing on July 15,
2046. There is a provision whereby if the City is unable to make payment, does not comply with bond covenants, or files
for reorganization or arrangement, the Trustee may declare the entire unpaid principal and interest immediately due and
payable.
Annual debt service requirements to maturity of the 2019 Pension Obligation Bonds are as follows:
Fiscal Year
Ending June 30

Principal

Interest

2026
2027
2028
2029
2030
2031-2035
2036-2040
2041-2045
2046-2050

620,000
470,000
510,000
545,000
590,000
3,005,000
1,525,000
825,000
40,000

327,556
308,572
290,971
271,498
249,831
881,272
347,581
92,744
1,425

Total

8,130,000

2,771,450

Page 140 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 8 – LONG-TERM DEBT (Continued)
D. State of California Neighborhood Stabilization Program (NSP) Loan
In fiscal year 2011, the City entered into a loan agreement with the Department of Housing and Community Development
(the DHCD). The City could borrow up to $10,000,000 to assist Olivero Ranch, LLC, in financing construction of 31 multifamily units, of which 30 units will be restricted to households at or below 50% of all AMI households in the City. The
entire outstanding principal balance plus all accrued but unpaid interest is due in full on the 55th anniversary of the date
of the project’s receipt of certificates of occupancy. There is no interest due on the loan; however, any program income
resulting from the financing provided to Olivero Ranch, LLC will be returned to the DHCD. The loan will be secured on the
property on which the project is located. All loan payments will be generated by the operation of the housing
development by the private developer which will pass through the City and back to the State.
E.

2017 Series Water Revenue Bonds

In 2017, the Chowchilla Public Financing Authority issued Revenue Bonds in the aggregate principal amount of $8,160,000
to finance capital projects in the Water Fund. The original amount of the bonds ($8,160,000) were secured by installment
payments to be made by the City under an installment sale agreement. There is a provision whereby if the City is unable
to make payment or does not comply with bond covenants, the Trustee may, and shall at the written direction of the
Owners of not less than a majority in aggregate principal amount of Bonds at that time outstanding, declare the principal
of all bonds outstanding and the accrued interest thereon to be due and payable immediately. These installment
payments are secured by a pledge of and lien on the net revenues of the Water Fund. Principal is payable annually on
June 1 in amounts from $10,000 to $775,000, with interest due semi-annually at variable rates between 2.6% - 5.0%,
maturing on June 1, 2047.
Annual debt service requirements to maturity of the 2017 Series Water Revenue Bonds are as follows:

Fiscal Year
Ending June 30
2026
2027
2028
2029
2030
2031-2035
2036-2040
2041-2045
2046-2050
Total

Principal
40,000 $
65,000
90,000
115,000
140,000
1,170,000
2,205,000
3,655,000
555,000

Interest
357,737
356,137
353,574
350,028
345,470
1,623,208
1,330,198
672,826
45,177

8,035,000 $

5,434,355

Page 141 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 8 – LONG-TERM DEBT (Continued)
F.

2017 Series Wastewater Revenue Bonds

In 2017, the Chowchilla Public Financing Authority issued Revenue Bonds in the aggregate principal amount of $3,310,000
to finance capital projects in the Sewer fund. The original amount of the bonds ($3,310,000) was secured by installment
payments to be made by the City under an installment sale agreement. There is a provision whereby if the City is unable
to make payment or does not comply with bond covenants, the Trustee may, and shall at the written direction of the
Owners of not less than a majority in aggregate principal amount of Bonds at that time outstanding, declare the principal
of all bonds outstanding and the accrued interest thereon to be due and payable immediately. These installment
payments are secured by a pledge of and lien on the net revenues of the Sewer Fund. Principal is payable annually on
June 1 in amounts from $75,000 to $275,000, with interest due semi-annually at variable rates between 2.33% - 4.58%,
maturing on June 1, 2047.
Annual debt service requirements to maturity of the 2017 Series Wastewater Revenue Bonds are as follows:

Fiscal Year
Ending June 30
2026
2027
2028
2029
2030
2031-2035
2036-2040
2041-2045
2046-2050

Principal

Total

Interest

50,000 $
45,000
50,000
60,000
65,000
450,000
690,000
1,025,000
525,000

131,731
129,731
128,026
126,081
123,687
569,670
451,154
264,358
36,640

2,960,000 $

1,961,078

G. State Water Revolving Loan
The City entered into a loan agreement in July 2014 with the State Water Resources Control Board for the purpose of
undertaking a project which will enable the City to meet safe drinking water standards established pursuant Chapter 4 of
Part 12 of Division 104 of the health and safety Code and the California Code of Regulations, Title 22, or to address other
health concerns. The City was awarded a loan in the amount of $3,205,991 for the purpose of installing water meters
citywide. The loan is to be repaid over a 20-year period at an interest rate of 0%, which does not begin until the project is
completed. In the event of a default, the State shall charge interest in the amount of one tenth of one percent (0.1%) of
the delinquent amount each day it remains unpaid past the tenth (10th) day after the date payment was due. The City
completed the project during 2018 and the first payment was due on January 1, 2019.
Annual debt service requirements to maturity of the State Water Revolving Loan are as follows:
Fiscal Year
Ending June 30

Principal

2026
2027
2028
2029
2030
2031-2035
2036-2040

160,300
160,300
160,300
160,300
160,300
801,498
480,896

Total

2,083,894

Page 142 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 8 – LONG-TERM DEBT (Continued)
H. Special Assessment District Debt
On April 30, 2014, the City issued $3,962,800 of 2013-1 Limited Obligation Refunding Bonds (the 2013 Local Obligations)
pursuant to the provisions of the Improvement Bond Act of 1915 to refund the outstanding 2002-1 Local Obligations
Improvement Bonds (the 2002-1 Local Obligations), for the purpose of creating annual debt savings. The direct
placement 2013 Local Obligations are fully secured by the unpaid special assessments levied on commitment. The 2013
Local Obligations are not secured by the general taxing power of the City, the State of California, or any political
subdivision of the State. The City acts as agent for the property owners in collecting assessment installments of principal
and interest and forwarding collections to the bond trustee. The City’s liability in the event of delinquent assessments,
shall not exceed the balance of the established Reserve Fund. The amount outstanding as of June 30, 2025 is $1,056,200.
In 2007, the City issued Community Facilities District No. 2006-1 Improvement Area 1 Special Tax Bonds in the aggregate
principal amount of $8,615,000 to finance certain capital expenses of the District, to pay costs of issuance of the Bonds,
and to fund two years’ capitalized interest on the Bonds. The Bonds are authorized to be issued pursuant to the MelloRoos Community Facilities Act of 1982, as amended. The Bonds ($8,615,000) are secured under the Trust indenture by a
pledge and lien upon Net Taxes levied on parcels within the District and all moneys in the Special Tax Fund. The Bonds
were issued for the purpose of financing the acquisition, construction, expansion, improvement, or rehabilitation of
facilities to serve the area within the District and its neighboring areas. Semiannual payments range from $13,375 to
$560,486 and are payable each March 1 and September 1 through 2037. The amount outstanding as of June 30, 2025 is
$5,290,000.
Since the City is not obligated in any manner for special assessment debt, the debt is not recorded in these financial
statements.

NOTE 9 – LEASES
A. Lease as Lessor
In 2006, the City began leasing one of its office buildings to a third party. The initial lease was for ten years and was
subsequently extended with two additional five-year extensions through 2026. The City will receive monthly payments of
$7,227, which is adjusted on July 1 by the United States Department of Labor, Bureau of Labor Statistics, Southern
California Consumer Price Index, or 5%, whichever is less. The City recognized in lease revenue of $44,988 and $6,065 in
interest revenue during the current fiscal year related to this lease. As of June 30, 2025, the City’s receivable for lease
payments was $48,840. Also, the City has a deferred inflow of resources associated with this lease that will be recognized
as revenue over the lease term. As of June 30, 2025, the balance of the deferred inflow of resources was $25,412.

Page 143 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 9 – LEASES (Continued)
B. Lease as Lessee
In fiscal year 2008, the City’s Fleet Maintenance Internal Service Fund entered into a lease agreement as lessee for the
acquisition and use of a building for operations. Subsequent extensions of the lease agreement have been noted through
fiscal year 2025. An initial lease liability was recorded in the amount of $173,689 during fiscal year 2008. As of June 30,
2025, the value of the lease liability was $322,337. The City is required to make monthly principal and interest payments
of $1,500. The lease has an effective interest rate of 7.75%. The leased building has an estimated useful life of 17 years.
The value of the right-to-use asset at the end of the current fiscal year was $858,517 and had accumulated amortization
of $296,980.
The City has entered into various lease agreements for vehicles, which have been recognized in accordance with GASB
Statement No. 87. These leases generally have fixed payment terms over five years and do not include renewal or
termination options that are reasonably certain to be exercised. Upon lease commencement, the government recorded
right-to-use lease assets and corresponding lease liabilities across the applicable funds. The total initial lease liability
recognized across all funds is $342,599. The right-to-use assets and accumulated amortization by fund type are as follows:




Governmental Activities (General Fund)
o Right-to-Use Asset: $617,508
o Accumulated Amortization: $105,556
Enterprise Funds
o Right-to-Use Asset: $89,413
o Accumulated Amortization: $25,914
Internal Service Fund
o Right-to-Use Asset: $67,770
o Accumulated Amortization: $16,718

Lease assets are amortized over the lease term on a straight-line basis. The annual amortization expense for fiscal year
2025 totaled $103,045.
The discount rate applied to measure lease liabilities was 8.5%. No variable lease payments, termination penalties, or
other contingencies are associated with these leases.
The future principal and interest lease payments as of June 30, 2025, are as follows:
Governmental:
Fiscal Year
Ending June 30

Principal

Enterprise

Interest

Principal

Internal Service Fund
Interest

Principal

Interest

2026
2027
2028
2029
2030

96,272 $
104,347
113,063
96,038
34,792

32,169
24,094
15,378
6,234
741

16,148 $
17,578
19,131
13,350
-

4,750
3,320
1,767
1,611
-

12,703 $
13,827
15,048
9,621
-

6,397
4,630
3,506
2,286
672

Total

444,512 $

78,616

66,207 $

11,448

51,199 $

17,491

Page 144 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 10 – DEFERRED OUTFLOWS/INFLOWS OF RESOURCES
In addition to assets, the Statement of Net Position (and when applicable, the Balance Sheet) will sometimes report a
separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position or fund balance that applies to future period(s) and thus, will not be
recognized as an outflow of resources (expense/expenditures) until then. The City has pension related items that qualify
to be reported in deferred outflows of resources. The pension-related deferred outflows of resources are described in
detail in Note 11.
In addition to liabilities, the Statement of Net Position (and when applicable, the Balance Sheet) will sometimes report a
separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position or fund balance that applies to future period(s) and so, will not be
recognized as an inflow of resources (revenue) until that time. The City has two types of items that qualify for reporting in
this category, which are unavailable revenues and pension deferrals.
Unavailable revenues arise only under a modified accrual basis of accounting and is reported only in the governmental
funds Balance Sheet. Deferred inflows of resources reported in the governmental funds for unavailable revenues are as
follows:
CDBG Grants
Special Revenue

Streets & Roads

Governmental

Fund

(LTF)

General Fund
Intergovernmental
Notes
Total

Other
Funds

Total

461,315 $
-

- $
22,890,786

752,862 $
-

719,744 $
1,928,167

1,933,921
24,818,953

461,315 $

22,890,786 $

752,862 $

2,647,911 $

26,752,874

The City has pension-related items that qualify to be reported in deferred inflows of resources. The pension-related
deferred inflows of resources are described in detail in Note 11.

Page 145 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 11 – DEFINED BENEFIT PENSION PLAN
A. General Information About the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost Sharing MultipleEmployer Plan (the Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan
consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all
other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools.
Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68.
Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City of
Chowchilla (City) sponsors seven rate plans (three miscellaneous and four safety). Benefit provisions under the Plan are
established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of
the pension plan regarding benefit provisions, assumptions and membership information that can be found on the
CalPERS website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan
members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one
year of full-time employment. Members with five years to 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 the Plan are applied as specified by the Public Employees’ Retirement law.
The rate plan provisions and benefits in effect at June 30, 2025 are summarized as follows:

Hire date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of annual salary
Required employee contribution rates
Required employer contribution rates

Hire Date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of annual salary
Required employee contribution rates
Required employer contribution rates

Miscellaneous

1st Tier
Prior to
January 1, 2013
2.5% @ 55
5 years service
monthly for life
50 - 55
2.0% to 2.5%
8%
14.130%

2nd Tier
January 1, 2011 thru
December 31, 2012
2% @ 60
5 years service
monthly for life
50 - 63
1.092% to 2.418%
7%
10.150%

PEPRA
On or after
January 1, 2013
2% @ 62
5 years service
monthly for life
52 - 67
1.0% to 2.5%
7.75%
7.870%

Safety

Safety (Police)

1st Tier

2nd Tier

PEPRA

Prior to
January 1, 2013
3% @ 55
5 years service
monthly for life
50 - 55
2.4% to 3.0%
9%
24.330%

January 1, 2011 thru
December 31, 2012
2% @ 55
5 years service
monthly for life
50 - 55
1.426% to 2.0%
7%
16.560%

On or after
January 1, 2013
2% @ 57
5 years service
monthly for life
50 - 57
1.426% to 2.0%
11.0%
11.050%

Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the
normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability
and side fund, if applicable. The dollar amounts are billed on a monthly basis. The City’s contribution for the unfunded
liability was $184,924 for the fiscal year ended June 30, 2025.
56

Page 146 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 11 – DEFINED BENEFIT PENSION PLAN (Continued)
A. General Information About the Pension Plans (Continued)
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer rates for all public
employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a
change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The
actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees
during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute
the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution
rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements
that are identified by the pension plan terms as plan member contribution requirements are classified as plan member
contributions.
The City’s contributions to the Plan recognized as a part of pension expense for the year ended June 30, 2025 were
$627,177.
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2025, the City reported a net pension liability for its proportionate share of the net pension liability of the
Plan of $4,134,659.
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net
pension liability of the Plan is measured as of June 30, 2024, and the total pension liability for the Plan used to calculate
the net pension liability was determined by an actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024,
using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the
City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating
employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30,
2023 and 2024 was as follows:

Proportion - June 30, 2023
Proportion - June 30, 2024
Change - Increase (Decrease)

0.0346%
0.0341%
(0.0005%)

For the year ended June 30, 2025, the City recognized pension expense of $2,047,977. At June 30, 2025, the City reported
deferred outflows of resources and inflows of resources related to pensions from the following sources:

Pension contributions subsequent to the measurement date
Changes of assumptions
Differences between actual and expected experience
Net differences between projected and actual earnings on plan
investments
Change in employer's proportion
Differences between the employer's actual contributions and the
employer's proportionate share of contributions

Deferred
Outflows of
Resources
$
805,950
104,329
348,638
221,195

Total

Deferred
Inflows of
Resources
$

12,636
-

1,621,427

1,642,845

3,101,539

1,655,481

Page 147 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 11 – DEFINED BENEFIT PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
$805,950 reported as deferred outflows of resources related to contributions subsequent to the measurement date will
be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as
deferred outflow of resources and deferred inflows of resources related to pensions will be recognized as pension
revenue as follows:

Year Ended
June 30
2026
2027
2028
2029
2030
Thereafter

563,687
247,154
(94,976)
(75,757)
-

The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial
assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Payroll Growth

June 30, 2023
June 30, 2024
Entry- Age Normal Cost Method

Projected Salary Increase

6.90%
2.30%
2.80%
Varies by Entry Age and Service

Investment Rate of Return
Mortality

6.90%
Derived using CalPERS' Membership Data

(1)

(2)

for all Funds
(1)

Net of pension plan investment expenses, including inflation
The mortality table was developed based on CalPERS-specific data. The rates
incorporate Generational Mortality to capture ongoing mortality improvement using
80% of Scale MP 2020 published by the Society of Actuaries.

(2)

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2023 valuation were based
on the results of 2021 actuarial experience study. Further details of the Experiences Study can be found on the CalPERS
website.
C.

Discount Rate

The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine
the discount rate assumed that contributions from plan members will be made at the current member contribution rates
and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those
assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments
of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods
of projected benefit payments to determine the total pension liability.

Page 148 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 11 – DEFINED BENEFIT PENSION PLAN (Continued)
D. Actuarial Assumptions
The long-term expected rate of return on pension plan investments was determined using a building-block method in
which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are
developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market
return expectations as well as the expected PERF cash flows. Using historical returns of all the funds’ asset classes,
expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+
years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the
present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single
equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using
both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate
calculated above and adjusted to account for assumed administrative expenses.
The expected real rates of return by asset class are as follows:
Assumed Asset
Asset Class
Global equity - cap-weighted
Global equity non-cap-weighted
Private Equity
Treasury
Mortgage-backed Securities
Investment Grade Corporates
High Yield
Emerging Market Debt
Private Debt
Real Assets
Leverage

Allocation
30.00%
12.00%
13.00%
5.00%
5.00%
10.00%
5.00%
5.00%
5.00%
15.00%
(5.00)%

Total
(1)
(2)

Real Return Years
(1,2)

1-10

4.45%
3.84%
7.28%
27.00%
50.00%
1.56%
2.27%
2.48%
3.57%
3.21%
(0.59)%

100.00%

An expected inflation of 2.30% used for this period.
Figures are based on the 2021-22 Asset Liability Management study.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following
presents the City’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the
Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a
discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Discount Rate -1%

Current Discount Rate

Discount Rate +1%

5.90%

6.90%

7.90%

11,007,204 $

4,134,659 $

(1,507,100)

Pension Plan Fiduciary Net Position

Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
F.

Payable to the Pension Plan

The City did not have any outstanding amounts payable to the pension plan as of June 30, 2025.
59

Page 149 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 12 – POST-RETIREMENT HEALTH CARE BENEFITS
The City provides no post-employment benefits for its employees. However, former employees may be maintained on
the City’s health insurance programs through the City’s Consolidated Omnibus Budget Reconciliation Act (COBRA)
insurance continuation plan.

NOTE 13 – RISK MANAGEMENT
The City is a member, along with fifty-eight other public entities, of Central San Joaquin Valley Risk Management
Authority (the Authority) organized under a joint powers agreement pursuant to the California Government Code for the
purpose of operating and maintaining a cooperative program of self-insurance and risk management which benefits its
member cities through cost reductions, insurance coverage stability, and loss control techniques. The Authority is
governed by a Board of Directors, consisting of one member appointed by each member city. The Authority maintains
pooled coverage programs for its member cities for workers’ compensation, liability, auto-physical damage, property,
employment practices liability, and errors and omissions coverage. For workers’ compensation and liability programs,
each program and program year is accounted for and administered as a separate operation.
Under the pooled liability program, expected claims are actuarially determined as are required deposits to cover those
claims along with all estimated operating costs. Each year is retrospectively adjusted five years following its conclusion
and any funds remaining are returned to the member city. Likewise, funds paid out in excess of their original deposits are
collected from the member city.
The City is covered for the first $1,000,000 of each general liability claim and $500,000 of each workers’ compensation
claim through the Authority. The City has the right to receive refunds of the obligation to pay assessments based on a
formula which, among other expenses, charges the City’s account for liability losses under $1,000,000 and workers’
compensation losses under $500,000. The Authority is a member of the Local Agency Workers’ Compensation Excess
Joint Powers Authority (LAWCX) for the purpose of providing excess coverage. Any claims of $500,000 up to
$150,000,000 are covered under a purchased policy through the membership with the LAWCX. The Authority is a
member of the California Affiliated Risk Management Authorities (CARMA) for the purpose of providing excess coverage
in a risk sharing pool. The CARMA program provided coverage in excess for the Authority’s retained limit up to
$19,000,000.
The financial position results of operations of the Authority are as follows for June 30, 2025:

Total assets
Total liabilities
Total net position
Revenues
Expenses
Change in net position

$ 206,777,744
157,063,998
$

49,713,746

94,036,144
86,877,199

7,158,945

At the termination of the joint powers agreement and after all claims have been settled, any excess or deficit will be
divided among the cities in accordance with its governing documents.
The City has established the following retained limits for the coverages shown: $25,000 for liability; $100,000 for worker’s
compensation; $1,000 for property damage; $500 deductible on vehicles.

Page 150 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 14 – DEFICIT IN FUND EQUITY
A. Nonmajor Governmental Funds
SAFER Fire Grant Fund
A deficit in fund balance at June 30, 2025, in the amount of $30,529, is due to multiple years of expenditures in excess of
revenues. This deficit is expected to be alleviated through future revenues or transfers from other funds.
Transit System Fund
A deficit in fund balance at June 30, 2025, in the amount of $702,253 is due to multiple years of expenditures in excess of
revenues. This deficit is expected to be alleviated through future revenues or transfers from other funds.
Low and Moderate Income Housing Asset Fund
A deficit in fund balance at June 30, 2025, in the amount of $36,975, is due to current year expenditures in excess of
revenues. This deficit is expected to be alleviated through future revenues or transfers from other funds.
B. Internal Service Funds
Fleet Maintenance Internal Service Fund
A deficit in net position at June 30, 2025, in the amount of $5,770, exists due to unexpected changes to the net pension
liability.
Employee Benefits Internal Service Fund
A deficit in net position at June 30, 2025, in the amount of $860,824, exists because the fund was established on a pay-asyou go basis for the purpose of funding the annual accrued leave liability. As employees are paid for their accumulated
leave in the future, the fund in which their normal salary is charged makes a transfer to the Employee Benefit Fund to
offset the expense.
C.

Fiduciary Funds

Successor Agency Private Purpose Trust Fund
A deficit in net position at June 30, 2025, in the amount of $3,137,376, exists as a result of long-term debt in excess of
assets that is in the process of being paid back in accordance with the Redevelopment dissolution. See Note 16 for more
information on the Successor Agency Trust Fund.

NOTE 15 – COMMITMENTS AND CONTINGENCIES
A. General Liability
There are various claims and legal actions pending against the City for which no provision has been made in the financial
statements. In the opinion of the City Attorney and City Management, liabilities arising from these claims and legal
actions, if any, will not be material to these financial statements.

Page 151 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 15 – COMMITMENTS AND CONTINGENCIES (Continued)
B. Federal Awards and Grants
The City participates in various federal grant programs, the principal of which are subject to program compliance audits
pursuant to the Single Audit Act as amended. Accordingly, the government’s compliance with applicable grant
requirements will be established at a future date. The amount of expenditures which may be disallowed by the granting
agencies cannot be determined at this time, although the government anticipates such amounts, if any, will be
immaterial.
C.

Encumbrances

Encumbrance accounting is employed as an extension of formal budgetary integration for the General Fund, special
revenue funds, and capital projects funds. At June 30, 2025, certain amounts which were previously restricted,
committed, or assigned for specific purposes have been encumbered in the governmental funds. Significant
encumbrances included in governmental fund balances are as follows:

Encumbrances Included in:
Restricted
Committed
Assigned
Fund Balance
General Fund
Capital Projects Fund
Nonmajor Governmental

- $
238,546
73,157

Fund Balance

Fund Balance
- $
-

750,230
-

NOTE 16 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X26 (the Bill) that dissolved all
redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Chowchilla that
previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.
The Bill provides that upon dissolution of a redevelopment agency, the city of another unit of local government will agree
to serve as the “Successor Agency” to hold the assets until they are distributed to other units of state and local
government. On January 10, 2012, the City Council elected to become the Successor Agency for the former
redevelopment agency in accordance with the Bill as part of City Resolution Number 5-12.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot
enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board,
remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the
completion of any unfinished projects that were subject to legally enforceable contractual commitments).
In future years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated
annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable
obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.
The Bill directs the State Controller of the State of California to renew the propriety of any transfers of assets between
redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received
such transfers is not contractually committed to a third party for the expenditure of encumbrance of those assets, the
State Controller is required to order the available assets to be transferred to the public body designated as the Successor
Agency by the Bill.

Page 152 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 16 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued)
Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to
the City are valid enforceable obligations payable by the Successor Agency trust under the requirements of the Bill. The
City’s position on this issue is not a position of settled law, and there is considerable uncertainty regarding this issue. It is
reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that
would resolve this issue favorably to the City.
In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011)
all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February
1, 2012.
After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary
fund (private-purpose trust fund) in the financial statements of the City.
A. Cash and Investments
As of June 30, 2025, the Successor Agency has a cash and investment balance of $1,081,300.
B. Long-Term Debt
Long-term debt reported in the Successor Agency Trust Fund at June 30, 2025 was comprised of the following:
June 30,
2024
2016 Successor Agency Tax
Refunding Bond

Reductions

Amounts Due
More Than
One Year

4,400,000
154,691

(285,000) $
(12,688)

4,115,000
142,003

295,000
-

3,820,000
142,003

4,554,691

(297,688) $

4,257,003

295,000

3,962,003

Add: Premiums
Total

Additions

Amounts
Due Within
One Year

June 30,
2025

2016 Successor Agency Tax Allocation Refunding Bonds

In 2016, the Successor Agency of the City of Chowchilla issued Tax Allocation Refunding Bonds in the aggregate principal
amount of $6,190,000 to refund the 2005 RDA Tax Allocation Bonds. This was done to take advantage of lower interest
rates and to save on future debt service payments. As a result, the 2005 RDA Tax Allocation Bonds are considered
defeased and the liability for that bond is not included in the Fiduciary Fund (Private-Purpose Trust Fund) Statement of
Net Position. The total debt service payments were reduced by $365,124. The original amount of the note, $6,190,000,
was secured by a pledge of tax revenues consisting of tax increment payments to be received by the Successor Agency.
Semiannual payments range from $5,294 to $390,294 and are payable each February 1 and August 1 through 2036.
There is a provision whereby if the Successor Agency is unable to make payment, does not comply with bond covenants,
or files for reorganization or arrangement, the Trustee may declare the principal of all bonds outstanding and the accrued
interest thereon to be due and payable immediately.

Page 153 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements

NOTE 16 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued)
C.

2016 Successor Agency Tax Allocation Refunding Bonds (Continued)

Annual debt service requirements to maturity of the 2016 Successor Agency Tax Allocation Refunding Bonds are as
follows:
Fiscal Year
Ending June 30

Principal

2026
2027
2028
2029
2030
2031-2035
2036-2039
Total

Interest

295,000
310,000
325,000
330,000
335,000
1,760,000
760,000
$

4,115,000

107,981
92,856
81,856
75,100
67,825
216,591
21,038
$

663,247

D. Insurance
The Successor Agency is covered under the City of Chowchilla’s insurance policies. Therefore, the limitation and selfinsured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage can be
found in Note 13.

NOTE 17 – RESTATEMENT OF BEGINNING NET POSTION
During the year ended June 30, 2025, the City implemented Governmental Accounting Standards Board (GASB) Statement
No. 101, Compensated Absences. GASB Statement No. 101 updates the recognition and measurement guidance for
compensated absences and certain salary-related payments. The standard was implemented as a change in accounting
principle, and beginning net position was restated to reflect the cumulative effect of applying the new guidance.

Fund balance/net position, June 30, 2024, as
previously reported

Government-

Proprietary

Wide

Funds

Governmental

Internal Service

Activities

Funds

53,650,602 $

(354,948)

(284,314)

53,366,288 $

(639,262)

Change in accounting principle:
Implementation of GASB 101 Compensated Absences

Net position, July 1, 2024, as restated

Page 154 of 187

REQUIRED SUPPLEMENTARY INFORMATION

Page 155 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Budgetary Comparison Schedules
General Fund

Original
Budget
REVENUES
Taxes
Licenses and permits
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Miscellaneous

Total revenues

Final
Budget

4,914,460
515,475
113,800
3,670,801
368,055
357,407
73,117

Variance with
Final Budget

Actual

4,926,134
833,887
119,666
3,875,843
372,920
461,783
202,169

4,652,244
805,069
97,864
3,886,387
603,432
437,823
198,793

(273,890)
(28,818)
(21,802)
10,544
230,512
(23,960)
(3,376)

10,013,115

10,792,402

10,681,612

(110,790)

1,791,858
5,158,649
795,772
1,068,505
1,536,604

2,116,323
4,790,665
890,024
965,220
2,065,432

1,815,334
4,564,539
852,733
823,400
1,554,723

300,989
226,126
37,291
141,820
510,709

145,491
24,495

(145,491)
(24,495)

Total expenditures

10,351,388

10,827,664

9,780,715

1,046,949

Excess (deficiency) of revenues
over (under) expenditures

(338,273)

(35,262)

900,897

936,159

1,416,940
(4,332,725)
-

1,823,028
(4,531,331)
8,883
98,740

1,349,958
(3,360,056)
15,254
395,694
98,470

(473,070)
1,171,275
6,371
395,694
(270)

(2,915,785)

(2,600,680)

(1,500,680)

1,100,000

(3,254,058) $

(2,635,942)

EXPENDITURES
Current:
General government
Public safety
Culture and recreation
Community development
Capital outlay
Debt service:
Principal
Interest

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Gain (loss) on sale of assets
Proceeds from long-term debt
Insurance recoveries
Total other financing sources (uses)
Net change in fund balance

(599,783) $
14,307,581

Fund balances - beginning
Fund balances - ending

13,707,798

The notes to the budgetary comparison schedules are an integral part of this statement.
66

2,036,159

Page 156 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Budgetary Comparison Schedules
CDBG Grants Special Revenue Fund

Original
Budget
REVENUES
Intergovernmental
Use of money and property
Charges for services

1,199,414
7,654
17,346

Final
Budget
$

1,327,569
11,146
17,346

Variance with
Final Budget

Actual
$

244,712
16,906
11,235

(1,082,857)
5,760
(6,111)

1,224,414

1,356,061

272,853

(1,083,208)

EXPENDITURES
Current:
Community development
Capital outlay

575,417
500,000

582,775
500,000

72,134
11

510,641
499,989

Total expenditures

1,075,417

1,082,775

72,145

1,010,630

Excess (deficiency) of revenues
over (under) expenditures

148,997

273,286

200,708

(72,578)

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out

(176,414)

(1)
(176,413)

22,058
(103,559)

22,059
72,854

(176,414)

(81,501)

94,913

96,872

119,207

Total revenues

Total other financing sources (uses)
Net change in fund balance

(27,417) $

315,199

Fund balances - beginning
Fund balances - ending

434,406

The notes to the budgetary comparison schedules are an integral part of this statement.
67

22,335

Page 157 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Budgetary Comparison Schedules
Impact Fees Special Revenue Fund

Original
Budget
REVENUES
Use of money and property
Charges for services

96,289
2,101,629

Final
Budget
$

118,390
1,339,512

Variance with
Final Budget

Actual
$

218,108
1,241,282

99,718
(98,230)

Total revenues

2,197,918

1,457,902

1,459,390

1,488

EXPENDITURES
Current:
Public safety
Highways and streets
Culture and recreation
Capital outlay

169,303
40,472
277,142

102,124
23,402
183,062

30
220
21,923
116,108

(30)
101,904
1,479
66,954

486,917

308,588

138,281

170,307

Excess (deficiency) of revenues
over (under) expenditures

1,711,001

1,149,314

1,321,109

171,795

OTHER FINANCING SOURCES (USES)
Transfers out

(498,491)

(378,491)

(89,796)

288,695

(498,491)

(378,491)

(89,796)

288,695

770,823

1,231,313

Total expenditures

Total other financing sources (uses)
Net change in fund balance

1,212,510

4,259,151

Fund balances - beginning
Fund balances - ending

5,490,464

The notes to the budgetary comparison schedules are an integral part of this statement.
68

460,490

Page 158 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Budgetary Comparison Schedules
Measure N Special Revenue Fund

Original
Budget
REVENUES
Taxes
Use of money and property
Miscellaneous

2,693,725
63,812
-

Final
Budget
$

2,822,992
106,428
327

Variance with
Final Budget

Actual
$

2,967,948
158,110
328

144,956
51,682
1

2,757,537

2,929,747

3,126,386

196,639

EXPENDITURES
Current:
General government
Public safety
Capital outlay

4,175
1,286,456
100,000

2,300
1,148,422
100,000

2,073
1,064,859
-

227
83,563
100,000

Total expenditures

1,390,631

1,250,722

1,066,932

183,790

Excess (deficiency) of revenues
over (under) expenditures

1,366,906

1,679,025

2,059,454

380,429

OTHER FINANCING SOURCES (USES)
Transfers out

(1,347,756)

(1,759,140)

(1,332,174)

426,966

(1,347,756)

(1,759,140)

(1,332,174)

426,966

(80,115)

727,280

Total revenues

Total other financing sources (uses)
Net change in fund balance

19,150

3,302,001

Fund balances - beginning
Fund balances - ending

4,029,281

The notes to the budgetary comparison schedules are an integral part of this statement.
69

807,395

Page 159 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Budgetary Comparison Schedules
Streets and Roads (Local Transportation) Fund

Original
Budget
REVENUES
Intergovernmental
Use of money and property
Miscellaneous

Final
Budget

Actual
948,961 $
(4,106)
2,615

(1,220,395)
(16,686)
1,164

2,183,387

947,470

(1,235,917)

4,674
556,081
2,562,991

2,612
711,252
2,886,221

2,787
596,196
1,625,206

(175)
115,056
1,261,015

7,535
3,053

(7,535)
(3,053)

Total expenditures

3,123,746

3,600,085

2,234,777

1,365,308

Excess (deficiency) of revenues
over (under) expenditures

(1,170,690)

(1,416,698)

(1,287,307)

129,391

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Gain (loss) on sale of assets

1,982,608
(566,560)
-

2,282,400
(568,463)
305

1,107,489
(2,074)
848

(1,174,911)
566,389
543

1,416,048

1,714,242

1,106,263

(607,979)

(181,044) $

(478,588)

Total revenues
EXPENDITURES
Current:
General government
Highways and streets
Capital outlay
Debt service:
Principal
Interest

Total other financing sources (uses)
Net change in fund balance

1,940,476 $
12,580
-

2,169,356
12,580
1,451

1,953,056

245,358

Variance with
Final Budget

297,544

1,742,431

Fund balances - beginning
Fund balances - ending

1,561,387

The notes to the budgetary comparison schedules are an integral part of this statement.
70

Page 160 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Notes to the Budgetary Comparison Schedules

NOTE 1 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Budgetary Information
The City establishes annual budgets for the General, Special Revenue Funds, and Capital Projects Funds. Except for
encumbrances and long-term projects in progress, which are carried forward to the following year, all appropriations
remaining will lapse at year end. The following procedures are followed in establishing the budgetary data reflected in
the budgetary comparison schedules:
1) The department heads prepare a budget request based upon the previous year’s expenditures.
2) A meeting is held between the department heads, Finance Director and the City Administrator for the purpose of
reviewing and prioritizing the budget requests.
3) The City Administrator submits the proposed City Budget to the City Council, who makes decisions regarding
department budgets.
4) The approved budget is placed in the City accounting system and monitored by the Finance Department as well
as by the department heads.
5) Budgets are adopted on the modified accrual basis. Revenues are budgeted in the year receipt is expected, and
expenditures are budgeted in the year that the applicable purchase orders are expected to be issued. The Debt
Service Fund budget is prepared to provide funding for general obligation debt service when liabilities are due for
payment. The level of control (level at which expenditures may not exceed budget) is at fund level for the
General Fund, fund level for the Special Revenue Funds, and project level for the Capital Projects Funds.
B. Excess Expenditure over Appropriations
The City incurred expenditures in excess of appropriations in the following amounts for the year ended June 30, 2025:

General Fund
Debt service:
Principal
Interest

Impact Fees Special Revenue Fund
Current:
Public safety

145,491
24,495

Streets and Roads (Local Transportation) Fund
Current:
General government
Debt service:
Principal
Interest

175
7,535
3,053

Page 161 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Cost-Sharing Multiple-Employer Defined Benefit Pension Plan
Schedule of the City’s Proportionate Share of the Net Pension Liability (Asset)
Last 10 Years
2016

Proportion of the net pension liability (asset)

2017

0.1170%

2018

0.1107%

2019

0.1088%

2020

0.1102%

2021

0.0057%

2022

0.0119%

2023

-0.0792%

0.0278%

2024

2025

0.0346%

0.0341%

Proportionate share of the net pension liability (asset)

8,032,145

9,583,127

10,793,945

10,615,478

579,267

1,290,678

(4,281,392) $

3,215,744

4,315,830

4,134,659

Covered payroll

3,617,983

3,411,501

3,728,201

3,960,212

3,991,276

4,313,602

4,489,333

4,742,624

5,092,237

5,312,564

Proportionate share of the net pension liability (asset)
as a percentage of covered payroll

222.01%

280.91%

289.52%

268.05%

14.51%

29.92%

-95.37%

67.81%

84.75%

77.83%

Plan fiduciary net position as a percentage of the
total pension liability (asset)

74.09%

70.07%

69.45%

70.84%

99.14%

97.37%

110.81%

93.14%

91.38%

92.14%

Notes to Schedule:
Change in Benefit Terms - None

Change in Assumptions - None

Page 162 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Cost-Sharing Multiple-Employer Defined Benefit Pension Plan
Schedule of Contributions
Last 10 Years
2016

2017

2018

2019

2021

2022

2023

2024

2025

Actuarially required contribution (actuarially determined)
Contributions in relation to the actuarially determined
contributions
Contribution deficiency (excess)

848,864

942,347

1,034,227

523,962

648,797

678,921

738,194

627,177

805,950

848,864
-

942,347
-

1,034,227
-

11,304,271
$ (10,609,793) $

523,962
-

648,797
-

678,921
-

738,194
-

627,177
-

805,950
-

Covered payroll

3,411,501

3,728,201

3,960,212

4,313,602

4,489,333

4,742,624

5,092,237

5,312,564

5,408,374

Contributions as a percentage of covered payroll

24.88%

25.28%

26.12%

694,478

2020

3,991,276
283.22%

12.15%

14.45%

14.32%

14.50%

11.81%

14.90%

Page 163 of 187

SUPPLEMENTARY INFORMATION

Page 164 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Balance Sheet

State
Gas Tax
ASSETS
Cash and investments
Accounts receivable
Intergovernmental receivables
Notes receivable, net
Prepaid expenses

SB1

SAFER Fire
Grant Fund

RSTP

Measure T
Fund

2,127,299
53,239
-

1,152,763
98,189
-

98,292
-

2,530,654
3,900
233,785
-

Total assets

2,180,538

1,250,952

98,292

2,768,339

LIABILITIES
Accounts payable
Due to other funds

9,721
-

30,529

Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICIT)
Nonspendable
Prepaid expenses
Restricted for:
Highway and streets
Community development
Unassigned
Total fund balances (deficit)
Total liabilities, deferred inflows
of resources, and fund balances

9,721

30,529

223,039

2,170,817
-

1,250,952
-

98,292
-

(30,529)

2,545,300
-

2,170,817

1,250,952

98,292

(30,529)

2,545,300

2,180,538

1,250,952

98,292

2,768,339

Page 165 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Balance Sheet
(Continued)

Maintenance
Assessment
District
ASSETS
Cash and investments
Accounts receivable
Intergovernmental receivables
Notes receivable, net
Prepaid expenses

Home
Investment
Partnership
Program

Transit
System

Low and
Moderate
Income
Housing
Asset Fund

EDBG
Grants

Total

670,971
14,089
-

9,265
485,799
12,152

1,552,641
6,131
1,859,317
-

6,677
123
-

68,850
-

8,139,297
13,165
891,355
1,928,167
12,152

Total assets

685,060

507,216

3,418,089

6,800

68,850

10,984,136

LIABILITIES
Accounts payable
Due to other funds

8,474
-

2,281
721,389

4,464
-

36,975

24,940
788,893

8,474

723,670

4,464

36,975

813,833

10,906

485,799

1,859,317

68,850

2,647,911

10,906

485,799

1,859,317

68,850

2,647,911

12,152

665,680
-

(714,405)

1,554,308
-

6,800
-

(36,975)

6,731,041
1,561,108
(781,909)

665,680

(702,253)

1,554,308

6,800

(36,975)

7,522,392

685,060

507,216

3,418,089

6,800

68,850

10,984,136

Page 166 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances

State
Gas Tax
REVENUES
Intergovernmental
Use of money and property
Charges for services
Loan repayments
Miscellaneous

SB1

(Formerly
nonmajor)
Streets &
Roads (LTF)

RSTP

SAFER Fire
Grant Fund

Measure T
Fund

517,362 $
87,230
-

525,861 $
50,449
-

208,315 $
-

- $
-

867,511
98,427
-

604,592

576,310

208,315

965,938

40,639
-

62
-

7,270
-

Total expenditures

40,639

7,270

Excess (deficiency) of revenues
over (under) expenditures

563,953

576,248

208,315

958,668

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Gain (loss) on sale of capital assets

(205,673)
-

14,502
(272,765)
-

(607,024)
-

(205,673)

(258,263)

(607,024)

358,280

317,985

208,315

351,644

1,812,537

932,967

(110,023)

1,742,431

(30,529)

2,193,656

(1,742,431)

1,812,537

932,967

(110,023)

(30,529)

2,193,656

- $

(30,529) $

2,545,300

Total revenues
EXPENDITURES
Current:
General government
Highway and streets
Community development
Capital outlay
Debt service:
Principal
Interest

Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit) - beginning
Change within financial reporting entity
(nonmajor to major)
Fund balances (deficit), beginning of year,
restated
Fund balances (deficit) - ending

2,170,817 $

1,250,952 $

98,292 $

Page 167 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
(Continued)

Maintenance
Assessment
District
REVENUES
Intergovernmental
Use of money and property
Charges for services
Loan repayments
Miscellaneous

Home
Investment
Partnership
Program

Transit
System

Low and
Moderate
Income
Housing
Asset Fund

EDBG
Grants

Total

6,433 $
28,331
300,370
2,491

512,901 $
104
20,877
9,483

75,769 $
57,873
-

- $
5,383
-

- $
-

2,714,152
327,797
321,247
11,974

337,625

543,365

133,642

5,383

3,375,170

359,337
-

2,834
549,121
154,663

419,943
587

2,834
956,429
419,943
155,250

Total expenditures

359,337

706,618

420,530

1,534,456

Excess (deficiency) of revenues
over (under) expenditures

(21,712)

(163,253)

(286,888)

5,383

1,840,714

52,425
-

1,777
-

(23,835)
-

68,704
(1,109,297)
-

52,425

1,777

(23,835)

(1,040,593)

Net change in fund balances

(21,712)

(110,828)

(285,111)

(18,452)

800,121

Fund balances (deficit) - beginning

687,392

(591,425)

1,839,419

25,252

(36,975)

8,464,702

(1,742,431)

687,392

(591,425)

1,839,419

25,252

(36,975)

6,722,271

665,680 $

(702,253) $

1,554,308 $

6,800 $

(36,975) $

7,522,392

Total revenues
EXPENDITURES
Current:
General government
Highway and streets
Community development
Capital outlay
Debt service:
Principal
Interest

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Gain (loss) on sale of capital assets
Total other financing sources (uses)

Change within financial reporting entity (major
to nonmajor)
Fund balances (deficit), beginning of year,
restated
Fund balances (deficit) - ending

Page 168 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Nonmajor Enterprise Fund
Statement of Net Position

Airport
ASSETS
Current assets:
Cash and investments
Intergovernmental receivables
Total current assets

Noncurrent assets:
Capital assets:
Nondepreciable
Depreciable, net of accumulated depreciation
Total noncurrent assets

274,569
22,846
297,415

457,551
277,948
735,499
1,032,914

Total assets
DEFERRED OUTFLOWS OF RESOURCES
Contributions to pension plan in current fiscal year
Deferred outflows of resources from pensions

1,931
5,796
7,727

Total deferred outflows of resources
LIABILITIES
Current liabilities:
Accounts payable
Total current liabilities

4
4

Noncurrent liabilities:
Net pension liability
Total noncurrent liabilities

9,709
9,709
9,713

Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources from pensions

3,967

Total deferred outflows of resources

3,967

NET POSITION
Net investment in capital assets
Unrestricted

735,499
291,462
$

Total net position

1,026,961

Page 169 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Enterprise Fund
Statement of Revenues, Expenses and Changes in Net Position

Airport
Operating revenues:
Charges for services
Miscellaneous

Total operating revenues

46,720
49
46,769

Operating expenses:
Personnel services
Materials, supplies and services
Depreciation and amortization

21,298
15,362
26,713

Total operating expenses

63,373

Operating income (loss)

(16,604)

Nonoperating revenues (expenses):
Use of money and property
Taxes
Grants - capital

10,800
15,167
10,000

Total nonoperating revenues (expenses)

35,967
19,363

Change in net position

1,007,598

Fund balances - beginning, as previously presented
Net position - ending

1,026,961

Page 170 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Enterprise Fund
Statement of Cash Flows

Airport
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users
Payments to suppliers
Payments to employees
Other operating revenues

46,720
(15,907)
(17,806)
49

Net cash provided by (used for) operating activities

13,056

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Taxes received

15,167

Net cash provided by (used for) noncapital financing activities

15,167

CASH FLOWS FROM CAPITAL AND RELATED FINANCING
Grants received
Acquisition of capital assets

(953)
(4,600)

Net cash provided by (used for) capital and related financing
activities

(5,553)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received

10,800

Net cash provided by investing activities

10,800

Net increase (decrease) in cash and cash equivalents

33,470

Cash and cash equivalents - beginning

241,099
$

Cash and cash equivalents - ending

274,569

Page 171 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Enterprise Fund
Statement of Cash Flows
(Continued)
Airport
Reconciliation of operating income (loss) to net
cash provided by (used for) operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net cash
provided by (used in) operating activities:
Depreciation
(Increase) decrease in:
Deferred outflows of resources from pensions
Increase (decrease) in:
Accounts payable and other liabilities
Net pension liability
Deferred inflows of resources from pension

Net cash provided by (used for) operating activities

(16,604)

26,713
3,588
(545)
(65)
(31)
13,056

Page 172 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Internal Service Funds
Combining Statement of Net Position

Fleet
Maintenance
ASSETS
Current assets:
Cash and investments
Prepaid expenses
Total current assets

Information
Technology

55,904
55,904

4,115
4,115

Employee
Benefits

Total

149,160
83,977
233,137

205,064
88,092
293,156

Noncurrent assets:
Capital assets:
Nondepreciable
Depreciable, net of accumulated
depreciation/amortization
Total noncurrent assets

173,794

39,455
39,455

321,768
495,562

361,223
535,017

Total assets

95,359

499,677

233,137

828,173

DEFERRED OUTFLOWS OF RESOURCES
Contributions to pension plan in current fiscal year
Deferred outflows of resources from pensions

22,018
59,666

27,855
79,147

49,873
138,813

Total deferred outflows of resources

81,684

107,002

188,686

LIABILITIES
Current liabilities:
Accounts payable
Accrued payroll
Due to other funds
Compensated absences
Subscription liability - current
Current portion of lease liabilities
Total current liabilities

268
7,781
8,049

32,556
255,273
4,922
292,751

6,322
239,526
409,840
655,688

39,146
239,526
255,273
409,840
12,703
956,488

Noncurrent liabilities:
Compensated absences
Net pension liability
Lease liabilities
Total noncurrent liabilities

110,731
22,599
133,330

140,090
15,897
155,987

438,273
438,273

438,273
250,821
38,496
727,590

141,379

448,738

1,093,961

1,684,078

41,434

54,326

95,760

41,434

54,326

95,760

31,674
(37,444)

490,640
(387,025)

(860,824)

522,314
(1,285,293)

(5,770) $

103,615

(860,824) $

(762,979)

Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources from pensions
Total deferred inflows of resources
NET POSITION (DEFICIT)
Net investment in capital assets
Unrestricted (deficit)
Total net position (deficit)

Page 173 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Net Position

Fleet
Maintenance
Operating revenues:
Charges for services
Miscellaneous

Information
Technology

340,139
60

Employee
Benefits

675,723
6,887

Total
-

1,015,862
6,947

340,199

682,610

1,022,809

232,527
79,543
19,490

338,682
397,584
75,263

(576)
-

570,633
477,127
94,753

331,560

811,529

(576)

1,142,513

Operating income (loss)

8,639

(128,919)

576

(119,704)

Nonoperating revenues (expenses):
Gain (loss) sale of assets
Interest expense

1,400
(3,656)

225
(1,982)

1,625
(5,638)

(2,256)

(1,757)

(4,013)

6,383

(130,676)

576

(123,717)

(12,153)

234,291

(577,086)

(354,948)

(284,314)

(12,153)

234,291

(861,400)

(639,262)

(5,770) $

103,615

(860,824) $

(762,979)

Total operating revenues
Operating expenses:
Personnel services
Materials, supplies and services
Depreciation and amortization
Total operating expenses

Total nonoperating revenues (expenses)
Change in net position
Net position (deficit) - beginning
Restatement - change in accounting principle
Net position - beginning, restated
Net position (deficit) - ending

Page 174 of 187

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Internal Service Funds
Combining Statement of Cash Flows

Fleet
Maintenance
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users
Payments to suppliers
Payments to or received from employees
Other operating revenues

Information
Technology

Employee
Benefits

Total

340,684 $
(90,365)
(187,211)
60

675,723 $
(377,222)
(283,010)
6,887

- $
(2,108)
-

1,016,407
(467,587)
(472,329)
6,947

63,168

22,378

(2,108)

83,438

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Loan from other funds

134,443

Net cash provided by (used for) noncapital financing
activities

134,443

CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Leases paid
Acquisition of capital assets
Proceeds from the sale of assets

(28,069)
1,400

(6,504)
(150,542)
225

(34,573)
(150,542)
1,625

Net cash provided by (used for) related financing activities

(26,669)

(156,821)

(183,490)

Net increase (decrease) in cash and cash equivalents

36,499

(2,108)

34,391

Cash and cash equivalents - beginning

19,405

151,268

170,673

Net cash provided by (used for) operating activities

Cash and cash equivalents - ending

55,904

Fleet
Maintenance

Information
Technology

149,160

Employee
Benefits

205,064

Total

Reconciliation of operating income (loss) to net cash provided
by (used for) operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net cash
provided by (used for) operating activities:
Depreciation
(Increase) decrease in:
Accounts receivable
Prepaid expenses
Net pension asset
Deferred outflows of resources from pensions
Increase (decrease) in:
Accounts payable and other liabilities
Compensated absences
Deferred inflows of resources from pensions

Net cash provided by (used for) operating activities

8,639 $

(128,919) $

576 $

(119,704)

19,490

75,263

94,753

545
17,762
23,565

(940)
14,225
38,460

(399)
(70,068)
-

146
(71,008)
31,987
62,025

(10,822)
3,989

21,302
2,987

68,359
(576)
-

78,839
(576)
6,976

63,168 $

22,378 $

(2,108) $

83,438

Page 175 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Custodial Funds
Combining Statement of Fiduciary Net Position

ASSETS
Cash and investments (in City investment pool)
Restricted cash with fiscal agents
Accounts receivable (net)

Community

Greenhills

Pheasant Run

Facilities

Assessment

Total Custodial

District

Funds

883,826
586,367
33,613

313,761
3,826

914,992
70,877
20,100

2,112,579
657,244
57,539

Total assets

1,503,806

317,587

1,005,969

2,827,362

LIABILITIES
Accounts payable
Agency obligations

5,468
17,776

Total liabilities

23,244

1,480,562

317,587

1,005,969

2,804,118

NET POSITION
Restricted for:
Individuals, organizations, and other governments
Total net position

1,480,562

317,587

1,005,969

2,804,118

Page 176 of 187

CITY OF CHOWCHILLA | JUNE 30, 2025
Custodial Funds
Combining Statement of Changes in Fiduciary Net Position

ADDITIONS
Property tax collections
Investment earnings

Community

Greenhills

Pheasant Run

Facilities

Assessment

Total Custodial

District

Funds

583,287
90,950

35,168
11,954

542,291
33,612

1,160,746
136,516

Total additions

674,237

47,122

575,903

1,297,262

DEDUCTIONS
Payments to bondholders
Administrative expenses

556,625
52,339

1,064

368,230
14,374

924,855
67,777

Total deductions

608,964

1,064

382,604

992,632

Change in fiduciary net position

65,273

46,058

193,299

304,630

1,415,289

271,529

812,670

2,499,488

Net position - beginning
Net position - ending

1,480,562

317,587

1,005,969

2,804,118

Page 177 of 187

March 26, 2026

To the Honorable Mayor and City Council
City of Chowchilla, California

We have audited the financial statements of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City of Chowchilla, California (the City) for the year ended
June 30, 2025. Professional standards require that we provide you with information about our responsibilities under
generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain
information related to the planned scope and timing of our audit. We have communicated such information in our letter
previously provided to you. Professional standards also require that we communicate to you the following information
related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting
policies used by City are described in Note 1 to the financial statements. As described in Note 17 to the financial
statements, the City changed accounting policies related to accounting and financial reporting for compensated absences
by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 101, Compensated Absences, in
2025. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance
or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on
management’s knowledge and experience about past and current events and assumptions about future events. Certain
accounting estimates are particularly sensitive because of their significance to the financial statements and because of the
possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates
affecting the City’s financial statements were:
Management’s estimate of the allowance for doubtful accounts is based on historical revenues and
analysis of the collectability of individual accounts. We evaluated the methods, assumptions, and data
used to develop the allowance for doubtful accounts estimate in determining that it is reasonable in
relation to the financial statements taken as a whole.
Management’s estimate of the City-Wide Cost Allocation Plan, as approved in the annual budget, is
based on past history, planned future activity, and other factors significant to the City’s operations that
are required to support each operating department. We evaluated the methodology used by
management to create this estimate and believe that it is reasonable in relation to the financial
statements taken as a whole.
Management’s estimate of the net pension liability and related deferrals is based on actuarial valuations
which include significant assumptions regarding discount rate, inflation, payroll growth, projected salary
increases and investment rate of return. We evaluated the key factors and assumptions used to develop
the liability and related deferrals in determining that it is reasonable in relation to the financial
statements taken as a whole.

Page 178 of 187

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users.
The most sensitive disclosure affecting the financial statements was:
The disclosure of the City’s defined benefit pension plan in Note 11 to the financial statements provides
detailed information on the pension plan including a description of the plan, benefits provided,
contributions, calculation of the net pension liability/asset and related deferrals, actuarial assumptions,
and discount rate used to measure the net pension liability/asset.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other
than those that are clearly trivial, and communicate them to the appropriate level of management. Management has
corrected all such misstatements. In addition, the adjustments noted in the “Corrected Material Audit Adjustments”
attachment represent the material misstatements detected as a result of audit procedures that were corrected by
management.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter,
whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report.
We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar
to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to
the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those
statements, our professional standards require the consulting accountant to check with us to determine that the
consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with
management each year prior to retention as City’s auditors. However, these discussions occurred in the normal course of
our professional relationship and our responses were not a condition to our retention.
In our audit engagement letter previously provided to you, we communicated the following significant risks of material
misstatement (significant risks) as part of our audit planning:


Management override of controls



Improper revenue recognition due to fraud

During the course of the audit, we identified an additional significant risk:


Transfers from restricted funds are not ultimately used for the purpose of the original restriction.

This risk was addressed within our audit procedures and we have no findings to report related to this risk.

Page 179 of 187

Other Matters
We applied certain limited procedures to management’s discussion and analysis, budgetary comparison schedules,
proportionate share of net pension liability, and schedule of contribution, which are required supplementary information
(RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the
methods of preparing the information and comparing the information for consistency with management’s responses to
our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the combining and individual nonmajor fund financial statements and the budgetary
comparison schedules, which accompany the financial statements but are not RSI. With respect to this supplementary
information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the
information to determine that the information complies with accounting principles generally accepted in the United
States of America, the method of preparing it has not changed from the prior period, and the information is appropriate
and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary
information to the underlying accounting records used to prepare the financial statements or to the financial statements
themselves.
Restriction on Use
This information is intended solely for the information and use of the City Council and management of the City and is not
intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,

Page 180 of 187

Client:
Engagement:
Current Period:
Workpaper:

CHOWCHILLA, CITY OF
6-30-25 Audit
06/30/2025
Attachment: Corrected Material Audit Adjustments

Account
AJE02
To post CIP transfer to Machinery and equipment
602-0100-0297
602-0100-0295

Description

Fixed Assets - Construction in Progress
Fixed Assets-Vehicles & Equip

Total
AJE03
Reverse classification of revenue to unavailable revenue
840-0200-0425
840-4830-8005
842-0200-0425
842-4832-8001
800-8850-8008
800-0200-0425

Deferred Revenue
County - Delinq Principal
Deferred Revenue
Property Taxes
Property Taxes
Deferred Revenue

Total
AJE04
To post commencement of various governmental leases.
100-2610-6401
100-9999-9911
Total
AJE05
To reclassify lease payments to debt service accounts
100-6620-6401
100-2610-6401
305-3620-6401
305-9999-3973
305-3620-4074
100-9999-3973
100-6620-4074
100-2610-4074

Fleet Program
Other financing sources - proceeds from debt issuance
(PPC CREATED)

Fleet Program
Fleet Program
Fleet Program
Debt Service - Principal (PPC Created)
Interest Expense
Debt Service - Princpal (PPC CREATED)
Interest Expense
Interest Expense (PPC CREATED)

Total
AJE06
To implement GASB 101 retroactively to FY2024.
702-0300-0608
702-0200-0431
702-0200-0431
702-1720-1096

Prior Period Adjustment (PPC Created)
Long Term Leave Payable
Long Term Leave Payable
Leave Accrual Adjustments

Total
AJE07
To tie Comp Abs to client provided schedule.
702-0200-0432
702-1720-1096
Total

Accrued Leave Payable
Leave Accrual Adjustments

Debit

Credit

Net Income Effect

0.00
17,411.00
17,411.00

17,411.00
0.00
17,411.00

0.00

2,565.19
0.00
16,511.00
0.00
0.00
12,404.00
31,480.19

0.00
2,565.19
0.00
16,511.00
12,404.00
0.00
31,480.19

31,480.19

395,693.91

0.00

0.00
395,693.91

395,693.91
395,693.91

0.00

0.00
0.00
0.00
7,534.64
3,053.30
145,491.40
12,533.01
11,961.79
180,574.14

43,272.67
126,713.53
10,587.94
0.00
0.00
0.00
0.00
0.00
180,574.14

0.00

284,313.53
0.00
6,095.99
0.00

0.00
284,313.53
0.00
6,095.99

290,409.52

6,095.99

278,217.54
0.00
278,217.54

0.00
278,217.54
278,217.54

278,217.54

Page 181 of 187

To the City Council and Management of the
City of Chowchilla, California
In planning and performing our audit of the financial statements of the governmental activities, business-type activities,
each major fund, and the aggregate remaining fund information of the City of Chowchilla, California (the City) as of and for
the year ended June 30, 2025, in accordance with auditing standards generally accepted in the United States of America,
we considered the City’s system of internal control over financial reporting (internal control) as a basis for designing audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not
express an opinion on the effectiveness of the City’s internal control.
However, during our audit we became aware of deficiencies in internal control other than significant deficiencies or material
weaknesses and other matters that are opportunities for strengthening internal controls and operating efficiency. The
following points summarize our comments and suggestions regarding those matters.
Lease Accounting and Fund-Level Presentation
During the audit, we noted the City did not record the required fund-level activity at lease commencement for new leases
under GASB 87. Specifically, the City did not recognize the related capital outlay and the corresponding other financing
source (proceeds from debt issuance), resulting in an understatement of approximately $395,000 in the affected fund
financial statements. In addition, the City did not perform the required fund-level classifications between interest and
principal/debt service for subsequent lease payments, resulting in improper presentation of these payments in the fund
financial statements.
We recommend the City implement and document procedures to ensure GASB 87 lease activity is appropriately recorded
at both the government-wide and fund levels. This should include a standardized lease commencement entry package that
identifies the required fund-level capital outlay and related other financing source, along with a recurring process to record
and review lease payment activity to ensure amounts are properly classified between principal and interest/debt service.
The City should also consider maintaining a centralized lease schedule (commencement dates, lease liability, right-to-use
asset, amortization, and payment allocation) and incorporating these steps into the year-end close process with
documented supervisory review to support accurate and consistent financial statement presentation.
We will review the status of this comment during our next audit engagement. We have already discussed the comment
with City personnel, and we will be pleased to discuss it in further detail at your convenience, to perform any additional
study of these matters, or to assist you in implementing the recommendations.
The communication is intended solely for the information and use of City management, City Council, and others within the
City, and is not intended to be, and should not be used by anyone other than those specified parties.
Sincerely,

Clovis, California
March 26, 2026

Page 182 of 187

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ONAN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Honorable Mayor and City Council
City of Chowchilla, California

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of
the United States, the financial statements of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of City of Chowchilla, California (the City), as of and for the year ended
June 30, 2025, and the related notes to the financial statements, which collectively comprise City’s basic financial
statements, and have issued our report thereon dated March 26, 2026.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial
reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the
purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees,
in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely
basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a
reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected
and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal
control that is less severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was
not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies.
Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be
material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Page 183 of 187

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the financial statements. However,
providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results
of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This
report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the
entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Clovis, California
March 26, 2026

Page 184 of 187

Item 6.2

REPORT TO THE CITY COUNCIL

CLICK HERE
TO RETURN TO
THE AGENDA

Meeting of: Tuesday, April 28, 2026
AGENDA SECTION:

New Business

SUBJECT:

Approval of a Resolution Awarding Contract for the Road 15 ½
Rehabilitation Project to Hensley’s Paving and General Engineering and
Authorizing the City Administrator or Designee to Execute Related
Documents

PREPARED BY:

Christina Soares, Administrative Analyst

PRESENTED BY:

Joe Roman, Deputy Director of Public Works

ATTACHMENTS:

Resolution

REVIEWED BY
ADMINISTRATOR

☒

REVIEWED BY
ATTORNEY

☒

REVIEWED BY
FINANCE

☒

RECOMMENDATION:
Staff recommends that the City Council Adopt a resolution awarding contract for the Road 15 ½
Rehabilitation Project in the amount of $369,824.53 to Hensley’s Paving and General Engineering and
authorizing the City Administrator or designee to execute related documents on behalf of the City.
BACKGROUND:
The Road 15 ½ Rehabilitation Project, will consist of a rehabilitation overlay of Road 15 ½ starting at
Avenue 24 ½ and continuing north for approximately 0.5 miles to 15th Street. The City began advertising
the Project for bids on March 2, 2026. The Notice Inviting Bids was published in the Madera Tribune,
posted on OpenGov, and submitted to the appropriate construction trade journals and builder’s exchanges.
REASON FOR RECOMMENDATION:
Bids were received from thirteen (13) contactors on April 9, 2026, as follows:
Contractor
Hensley’s Paving and General
Engineering
Don Berry Construction
Juarez Bro’s General Engineering
Terra West Construction
United Pavement
Avison Design
Asphalt Design
AJ Excavation
Dave Christian Construction
Cal Valley Construction

Bid Amount
$369,824.53

Add Alternate
$126,463.93

$380,702
$387,108
$399,368
$414,784
$433,820
$441,590
$445,048
$445,349
$456,424

$120,000
$99,768
$100,500
$129,370
$150,000
$122,700
$115,000
$118,828
$160,000

Page 185 of 187

American Paving Company
Rolfe Construction
Zara Construction

$523,984
$561,210
$932,304

$140,000
$135,564
$135,000

The Engineer’s Estimate was $616,416. Staff has reviewed the bid submitted by Hensley’s Paving and
General Engineering, along with information regarding their previous work experience. Based on review,
Staff has determined the bid submitted is responsive and Hensley’s Paving and General Engineering to
be a responsible contractor. Staff recommends City Council award the contract for the Road 15 ½
Rehabilitation Project to Hensley’s Paving and General Engineering.
FISCAL IMPACT:
The construction costs and available funding for the Project were included in the Fiscal Year 2025/26
Budget and Capital Improvement Plan (CIP) and is funded by Regional Maintenance and Rehabilitation
Account (RMRA), Gas Tax, and Measure T – RTP funds. Contingency is 20% of base bid ($73964.91)
plus the Alternate Bid item ($129,463.93). Total is $200,428.84.
Amount

Construction Costs
Contingency
CM/Inspection/Testing
Construction/Maintenance
Total Construction

$200,428.84
$58,600.00
$369,824.53
$628,853.37

Construction Funding
RMRA
Gas Tax
Measure T – RTP
Total Construction Funding
Surplus / (Deficit)

$359,000
$300,000
$230,000
$889,000
$260,146.63

ALTERNATIVES:
1. City Council may reject all bids.
ACTIONS FOLLOWING APPROVAL:
1. Execution of Contract
2. Pre-Construction Meeting
3. Issue Notice to Proceed

Page 186 of 187

COUNCIL RESOLUTION # XX-26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA
AWARDING CONTRACT FOR THE ROAD 15 ½ REHABILITATION PROJECT TO HENSLEY’S
PAVING AND GENERAL ENGINEERING AND AUTHORIZING THE CITY ADMINISTRATOR OR
DESIGNEE TO EXECUTE RELATED DOCUMENTS
WHEREAS, the Invitation to Bid for the Road 15 ½ Rehabilitation Project (the “project”) was
published in the Madera Tribune, posted on OpenGov, and submitted to the appropriate construction trade
journals and builder’s exchanges; and
WHEREAS, the following bids for the Project were received and publicly opened and read aloud at
the Chowchilla City Hall on April 9, 2026 at 3:00 p.m.:
Contractor
Hensley’s Paving and General
Engineering
Don Berry Construction
Juarez Bro’s General Engineering
Terra West Construction
United Pavement
Avison Design
Asphalt Design
AJ Excavation
Dave Christian Construction
Cal Valley Construction
American Paving Company
Rolfe Construction
Zara Construction

Bid Amount
$369,824.53

Add Alternate
$126,463.93

$380,702
$387,108
$399,368
$414,784
$433,820
$441,590
$445,048
$445,349
$456,424
$523,984
$561,210
$932,304

$120,000
$99,768
$100,500
$129,370
$150,000
$122,700
$115,000
$118,828
$160,000
$140,000
$135,564
$135,000

WHEREAS, the City Engineer’s Opinion of Probable Construction Costs for the project was
$616,416; and
WHEREAS, the City Engineer has determined the bid submitted by Hensley’s Paving and General
Engineering to be responsive and Hensley’s Paving and General Engineering to be a responsible
contractor; and
WHEREAS, the City Engineer recommends the Project be awarded to Hensley’s Paving and
General Engineering; and
WHEREAS, funding is currently available in the FY 2025-2026 budget.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds,
determines and declares the following:
1. The above recitals are true and correct.
2. The low bid submitted by Hensley’s Paving and General Engineering is responsive.
3. The construction contract for the Project is awarded to Hensley’s Paving and General Engineering
in the amount of $369,824.53 with a contingency of $200,428.84.
4. The City Administrator is authorized to execute the contract on behalf of the City of Chowchilla.
5. This resolution is effective immediately upon adoption.

Page 187 of 187

PASSED AND ADOPTED by the City Council of the City of Chowchilla this 28th day of April, 2026 by
the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:

APPROVED:

Kelly Smith, Mayor
ATTEST:

Joann McClendon, CMC
City Clerk

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