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Home My WebLink About2025-12-15 Study Session Council Study Session Meeting Agenda ASHLAND CITY COUNCIL STUDY SESSION AGENDA Monday, December 15, 2025 Council Chambers, 1175 E Main Street Live stream via RVTV Prime at rvtv.sou.edu or broadcast on Spectrum 180. Public comment is welcome on agenda items. To speak electronically during the meeting or to submit written comments in advance, please complete the online Public Comment Form by 10 a.m. the day of the meeting. 5:00 p.m. Study Session 5:30 p.m. Committee Presentations I. CALL TO ORDER II. REPORTS AND PRESENTATIONS a. Audit Presentation b. Commission &Committee Workplans & Updates 2025/2026 III. ADJOURNMENT If you need special assistance to participate in this meeting, please contact Alissa Kolodzinski at recorder(aashlandoregon.gov or 541.488.5307 (TTY phone number 1.800.735.2900). Notification at least three business days before the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting in compliance with the Americans with Disabilities Act. ***Agendas and minutes for City of Ashland Council, Commission and Committee meetings may be found at the City website,ashlandoregon.gov, Page lofl 6WF1 Pagel of 194 VI Council Study Session Dat, December 15, 2025 Audit Presentation Finance Bryn Morrison, Deputy Finance Director TIME ESTIMATE 30 CATEGORY Informational -this is to inform the body on a particular topic. No motion or direction needed. SUMMARY The annual financial audit is complete for fiscal year ending June 30, 2025 The City's external auditors, Baker Tilly LLP shall present the findings of the audit and the Annual Comprehensive Financial Report (ACFR)to the City Council. POLICIES, PLANS & GOALS SUPPORTED Administrative/Governance Goal: "To ensure ongoing fiscal ability to provide desired and required services at an acceptable level." BACKGROUND AND ADDITIONAL INFORMATION Oregon Municipalities are required to file an annual financial report and audit with the Oregon Secretary of State Audits Division, which must be conducted be an independent CPA or public accountant. The City has contracted with Baker Tilly LLP, formally Moss Adams, to perform the annual audit. Preparation for the audit by the accounting staff began at the end of June and carried into the beginning of September. The fieldwork of fulfilling the engagement requests began in September and continued through November. Due to staffing shortages, Baker Tilly was contracted to complete the financial statements in addition to the current contracted work this year with City staff providing the information necessary to complete the fieldwork, engagement requests, sampling, transmittal letter, management discussion and analysis, notes to basic financial statements, and statistical section. The audit was completed and presented to the Municipal Audit Committee on December 3, 2025. The City received an unmodified clean opinion which means the financial statements are considered fairly presented and conform to Generally Accepted Accounting Principles. The Audit Committee has accepted the report as presented and forwarded it to the City Council with the letter included in the attachments. FISCAL IMPACTS SUGGESTED ACTIONS, AND/OR OPTIONS While it does not require a vote of Council, a presentation of the report and its findings is used to finalize the ACFR and submit it to the State Audit Division and various agencies. No motion is necessary. REFERENCES &ATTACHMENTS 1. City of Ashland 2025 ACFR 2. City of Ashland 2025 Audit Management Letter 3. Signed Audit Committee Acceptance Letter 12.3.25 Page 1 of 2 Page 2 of 194 r% Council Study Session Page 2of2 kv Page 3 of 194 CITY OF ASHLAND ANNUAL COMPREHENSIVE FINANCIAL REPORT • • 1 • - • • 0 co LY co a 0 m try L o ` g*~ m - CITY OF ASHLAND STATE OF OREGON ■ Annual Comprehensive Financial Report For the fiscal year ended June 30, 2025 Prepared by the Finance Department Page 5 of 194 Table of Contents INTRODUCTORY SECTION Page# Letter of Transmittal 2 Certificate of Achievement for Excellence in Financial Reporting 7 City Officials 8 Organization Chart 9 Map of City of Ashland 10 FINANCIAL SECTION Report of Independent Auditors 12 Management's Discussion and Analysis (required supplementary information) 16 BASIC FINANCIAL STATEMENTS Government—Wide Financial Statements: Statement of Net Position 32 Statement of Activities 34 Fund Financial Statements: Balance Sheet—Governmental Funds 35 Reconciliation of Balance Sheet of Governmental Funds to the Statement of Net Position 36 Statement of Revenues, Expenditures and Changes in Fund Balances—Governmental Funds 37 Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to Statement of Activities 38 Statement of Net Position— Proprietary Funds 39 Statement of Revenues, Expenses and Changes in Net Position—Proprietary Funds 40 Statement of Cash Flows—Proprietary Funds 41 Notes to the Basic Financial Statements 43 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Changes in Other Post-Employment Benefits, Liability and Related Ratios—Medical Benefits 77 Schedule of the Proportionate Share of Net OPEB (Asset) and Schedule of Contributions 78 Schedule of the Proportionate Share of Net Pension Liability and Schedule of 79 Contributions Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual— 80 General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual— 81 Street Fund Notes to Required Supplementary Information 82 SUPPLEMENTARY INFORMATION Combining Balance Sheet—All Non-Major Funds 84 Combining Statement of Revenues, Expenditures and Changes in Fund Balances—All Non- 85 Major Funds Page 6 of 194 Table of Contents SUPPLEMENTARY INFORMATION —Continued Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual Page# SDC Street Fund 86 Housing Fund 87 Tourism Fund 88 CDBG Fund 89 Airport Fund 90 Capital Improvements Fund 91 SDC Parks Fund 92 Parks Capital Improvement Fund 93 Debt Service Fund 94 Cemetery Trust Fund 95 Parks and Recreation Fund 96 Reserve Fund 97 Parks Equipment Fund 98 Schedule of Revenues, Expenditures and Changes in Net Position —Budget and Actual Water Fund 99 SDC Water Fund 100 Wastewater Fund 101 SDC Wastewater Fund 102 Stormwater Fund 103 SDC Stormwater Fund 104 Electric Fund 105 Telecommunications Fund 106 Combining Balance Sheet—Internal Service Funds 107 Combining Statement of Revenues, Expenses and Changes in Net Position —Internal 108 Service Funds Combining Statement of Cash Flows—Internal Service Funds 109 Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual Insurance Services Fund 110 Health Benefits Fund 111 Equipment Fund 112 Capital Assets Used in the Operation of Governmental Funds by Source 113 Schedule of Assets Used in the Operation of Governmental Funds by Function and Activity 114 Schedule of Bond Principal and Bond Interest Transactions 115 STATISTICAL SECTION—TOTAL REPORTING ENTITY(UNAUDITED) Table of Contents 118 Financial Trends Statement of Net Position-Total Primary Government 119 Statement of Net Position-Governmental Activities 121 Statement of Net Position-Business-Type Activities 123 Changes in Net Position-Total Primary Government 125 Changes in Net Position-Governmental Activities 127 Changes in Net Position-Business-Type Activities 129 Page 7 of 194 Table of Contents STATISTICAL SECTION—TOTAL REPORTING ENTITY(UNAUDITED)—Continued Changes in Fund Balance -Governmental Funds 130 Fund Balances, Governmental Funds 131 Fund Balance Comparison 132 Revenue Capacity Assessed and Estimated Actual Value of Taxable Property 134 Property Tax Rates-Direct and Overlapping Governments 135 Property Value and New Construction History 136 Food and Beverage Tax Revenues by Fund 137 Principal Property Taxpayers 138 Property Tax Levies and Collections 140 General Governmental Tax Revenues by Source 141 Electric Utility Usage 142 Debt Capacity Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt per Capita 143 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 144 Pledged Revenue Coverage-Water and SDC Water Funds 145 Ratios of Outstanding Debt by Type 146 Legal Debt Margin 147 Computation of Legal Debt Margin 148 Computation of Direct and Overlapping Bonded Debt-General Obligation Bonds 149 Economic and Demographic Information Principal Employers 150 Demographic Statistics 151 Operating Information Schedule of Major Insurance in Force 152 City Employee by Function/Program 153 Operating Indicators by Function/Program 154 Capital Assets and Infrastructure Statistics by Function/Program 155 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Minimum Standards for Audits of Oregon Municipal Corporations 158 Report of Independent Auditors Required by Oregon State Regulations 159 GOVERNMENT AUDITING STANDARD COMPLIANCE REPORT Report of Independent Auditors on Compliance and on Internal Control Over Financial 162 Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Page 8 of 194 INTRODUCTORY SECTION 1 —City of Ashland Annual Comprehensive Financial Report Page 9 of 194 Introductory Section CITY OF HLAND aelLaTogeovA November 26, 2025 Honorable Mayor Tonya Graham, Ashland City Council, and Citizens of the City of Ashland I am pleased to provide the Annual Comprehensive Financial Report of the City of Ashland for the fiscal year ended June 30, 2025. This report is published annually as the official annual comprehensive financial report and complies with State statutes requiring the City of Ashland to issue an annual report on its financial position and activity, and that this report be audited by an independent firm of certified public accountants licensed by the State of Oregon to conduct municipal audits. As management for the City, we are responsible for both the accuracy of the data, and the completeness and fairness of the presentation, including all related disclosures. The City operates under a system of accounting internal controls that are concerned with the safeguarding of assets and the reliability of financial records. The definition of accounting control assumes reasonable, but not absolute, assurance that the objectives expressed in it will be accomplished by the system. The concept of reasonable assurance recognizes that the cost of internal control should not exceed the benefits expected to be derived. This report includes the independent auditor's opinion with respect to the City's financial statements. Generally Accepted Accounting Principles (GAAP) require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of a Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Ashland's MD&A can be found immediately following the independent auditor's report. PROFILE OF THE GOVERNMENT The City, incorporated in 1874, is located in the southwest part of the state and currently has a land area of 6.65 square miles with a population of 21,579. It is a home-rule city and has all powers necessary or convenient for the conduct of its municipal affairs, including the power to levy a property tax on both real and personal property located within its boundaries. The City also has the power, by state statute, to extend its corporate limits by annexation within the state designated urban growth boundary, which is done periodically when deemed appropriate by the City Council. Ashland operates under the Council-Manager form of government. Policymaking and legislative authority are vested in the Mayor and City Council. The governing Mayor and Council are responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring the City Manager and the City Attorney. The City Council consists of a mayor and six-member Council. The Mayor, who presides at the Council meetings, is elected at-large for a four-year term. Six Council members are elected at-large 2—City of Ashland Annual Comprehensive Financial Report Page 10 of 194 Introductory Section CITY OF HLAND aelLaTogeOVA for four-year staggered terms with three Council members elected every two years. Other elected officials are the Municipal Judge and the five-member Parks Commission, which also serves as the Recreation Commission. The City Manager is charged with general oversight of all operational and management functions, except for those under the Ashland Parks and Recreation Commission. The City Manager is responsible for the appointment or dismissal of department heads (Fire Chief, Police Chief, Public Works Director, Community Development Director, Finance Director, Electric Director, and Human Resources Director). The Mayor, with confirmation of the City Council, appoints the City Manager, the City Attorney and the City boards and commissions except for the Budget Committee, which, by state law, is appointed by the full Council. The City Manager is responsible for carrying out the policies and ordinances of the City Council and overseeing the day-to-day operations of the City. Assisting City Council are seven standing advisory boards and committees and various ad hoc committees, which include relevant City staff. Together, citizens and staff make a valuable contribution to the City of Ashland by working together on shared goals and vision. The City provides a full range of services including police protection, fire protection, building inspection, planning services, economic development, social services, senior program, emergency medical services, electric, internet access, water, streets, storm drain, wastewater treatment, airport, cemetery, city band, and parks and recreation activities. The City prepares a biennial budget on the modified accrual basis in accordance with the State law and statutes. LOCALECONOMY Originally named Ashland Mills, Ashland has evolved from its logging roots to a city of vibrant tourism. Arts & culture play a significant role in the City with the many restaurants, galleries and retail stores that serve thousands of visitors who attend plays each year at the Oregon Shakespeare Festival and other key events throughout the year. Ashland has also become a destination for outdoor adventurers with the diverse mountain bike trails, back country roads for cycling, plenty of hiking trails and the Mt. Ashland Ski Resort a short drive away. The area has also grown popular among wine enthusiasts with many local wineries and tasting rooms for travelers and locals to enjoy. Ashland is also the home of Southern Oregon University, a public university with over 5,000 students and is the largest employer in the City. The combination of a robust cultural center and college town has made Ashland a destination for tourists but also those who choose to settle here for its great schools and community core. The City's current economic base depends primarily on higher education and tourism, with a consistently high level of small home-occupation businesses and several niche manufacturing businesses. In addition, the U.S. Fish and Wildlife National Forensics Laboratory is in Ashland. It is the only crime lab in the world dedicated entirely to wildlife and serves both the national and international communities. In fiscal year ending June 30, 2025, Ashland saw a 1.3% increase from the previous year 3 —City of Ashland Annual Comprehensive Financial Report Page 11 of 194 Introductory Section CITY OF HLAND aelte&TogeovA in combined Transient Lodging and Food & Beverage Taxes. The City continues to work on economic diversification while also bolstering Tourism through strategic investments in its Visitor and Convention Bureau. Ashland continues to review and evaluate ways that ensures its long-term fiscal health and continuity through its economic development initiatives, facilities optimization planning, efficiencies in service delivery, and effective, consistent security through police and fire. LONG-TERM FINANCIAL PLANNING The City of Ashland actively engages in financial planning through its biennial budgetary process, and the creation of master plans for infrastructure improvements and expansions to roadways, water, sewer, stormwater, and parks. Major financial decisions are made in the context of the six-year forecast. The financial planning process includes reviewing the needs for each operating fund as well as the City's capital project needs. The goal of the operating fund forecast is to assess the City's ability over the next six years to continue to effectively provide current service levels based on projected growth, meet goals set by Council, preserve the City's long term fiscal health, and to ensure financial reserve levels specified in the financial policies are maintained. The City saw an increase in Enterprise Zones that received an exemption on their property taxes from $43,072 to $52,758. This typically happens due to specific circumstances such as new or remodeled property and equipment to encourage economic development. This has reduced the property tax the City will receive however will promote economic development in the future. Capital project needs are based upon master plans, development agreements, input from applicable Commissions and Committees, and Council-directed improvements. The forecast serves as a tool to identify financial trends, potential shortfalls, and emerging issues so that the City can proactively address them. MAJOR INITIATIVES In addition to infrastructure, the City continues to make significant investments in the quality of Ashland livability through affordable housing, conservation initiatives, efforts to address houseless issues, and economic development and diversification. During the fiscal year, major initiatives included the following: Manage for Excellence • Conducted a City-wide Comp and Class Assessment of all City positions • Conducted a City-wide DEI assessment • Received a clean audit 4—City of Ashland Annual Comprehensive Financial Report Page 12 of 194 Introductory Section CITY OF HLAND aelLaTogeOVA • Appointed a new Judge to the municipal court • Appointed a new City Manager • Appointed a new City Attorney • Appointed a new Parks Director Livable Community • Electric Utility has achieved exceptional electric reliability • Rehabilitation work done on the Community Center and Pioneer Hall • Completed the Wastewater Treatment Plant Outfall Relocation project • Completed Ashland Street rehabilitation and installation of protected bike lanes and pedestrian safety improvements • Made significant progress addressing State Climate Friendly and Equitable Communities objectives by eliminating parking requirements for developments allowing for more infill and supporting walkable and bikeable infrastructure Risk Reduction • Installed new evacuation zone signs throughout the City • Brought back the School Resource Officer in partnership with Ashland School District • Established a new police satellite office on Ashland Street and increased the Centralized Area Patrol program • Continued collaboration with the Ashland School District and Southern Oregon University around emergency management led by the City's Emergency Management Coordinator • Grew the single role emergency medical service program to continue to address the high call volume in the ambulance service are for which the City is responsible • Responded to mass tree die off through an extensive tree thinning project involving 450 acres of helicopter work to remove dead and dying trees surrounding the community Economic Development • Awarded local businesses over$97,906 in beautification grants. • Supported 22 local events with over$99,050 in grant funding. • Supported Travel Ashland with $517,000 for destination marketing • Support Oregon Shakespeare Festival with $100,000 for marketing. Affordability • Awarded $140,000 in Childcare grants • Implemented an Accessory Dwelling Unit program for pre-approved plans free of charge to Ashland property owners • Completed the Electric Utility Master Plan Invest in the Future 5—City of Ashland Annual Comprehensive Financial Report Page 13 of 194 Introductory Section CITY OF HLAND aelLaTogeOVA • Rolled out a new website • Rolled out new agenda management software • Rolled out new records request software • Rolled out a new parks and recreation registration software • Transitioned court prosecution to an electronic system • Transitioned to a paperless system for police reporting and records • Conducted software upgrades for all major systems • Rolled out a new online map repository for all public facing maps, digital apps and GIS data • Updated evaluation maps to include codes for all county zones near the City • Conducted five ballot initiatives involving numerous charter changes and bond funding for the water treatment plant AWARDS AND ACKNOLWEDGMENTS The City of Ashland has been a long-time recipient of The Government Finance Officers Association of the United States and Canada (GFOA) award for Achievement for Excellence in Financial Reporting and received the award for the thirty-seventh time for the fiscal year ended June 30, 2024. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City believes that the current annual comprehensive financial report continues to meet the Certificate of Achievement Program's requirements. In addition, the City received the GFOA Award for Distinguished Budget Presentation for its biennial 2023-2025 budget. To qualify for the award, the City's budget document was judged to be proficient in several categories, including policy documentation, as an operational guide, as a financial plan, and as a communication device. Finally, it is a year-long, day-to-day, effort to ensure proper accounting and internal controls meet the standards set forth in the compilation of this report. The preparation of the Annual Comprehensive Financial Report could not have been accomplished without the dedicated efforts of the Finance Department's staff, and the cooperation of all City departments. I would also like to thank the Mayor and the City Council for their continued support in planning and conducting the financial operations of the City in a prudent, committed, and responsible manner. Respectfully submitted, Sabrina Cotta City Manager 6—City of Ashland Annual Comprehensive Financial Report Page 14 of 194 Introductory Section DO Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Ashland Oregon For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2024 ��.. IP- 2,sf� Executive Director/CEO 7—City of Ashland Annual Comprehensive Financial Report Page 15 of 194 Introductory Section City of Ashland City Officials as of June 30, 2025 Elected Officials Term Expires December 31, Tonya Graham Mayor 2028 Dylan Bloom Council Member 2028 Jeff Dahle Council Member 2026 Gina DuQuenne Council Member 2028 Eric Hansen Council Member 2026 Derek Sherrell Council Member 2026 Bob Kaplan Council Member 2026 Ryan Mulkins Municipal Judge 2026 Appointed Officials Sabrina Cotta City Manager Johan Pietila City Attorney Leadership Team Jordan Rooklyn Deputy City Manager Bryn Morrison Interim Finance Director Rocky Houston Parks & Recreation Director Scott Fleury Public Works Director Brandon Goldman Community Development Director Tom McBartlett Electric Utilities Director Tighe O'Meara Police Chief Ralph Sartain Fire Chief Molly Taylor Human Resources Director Alissa Kolodzinski City Recorder City Address City of Ashland 20 East Main Street Ashland, Oregon 97520 8—City of Ashland Annual Comprehensive Financial Report Page 16 of 194 0 a 5 n E x W ti €t1 O u \ ' a N Ea c� m °'g t V u u o F � � Ic E9 u e E a x x H o f `o m t a o L ig s �a du m . to U Q _ LL s c m 3 = x o a r E do V m t r V a" Q w i6 C � C LL W yu° LL Ln C N w I� w N a E41 � � 3 U a m o 0 0 � U Ws W c a) L N 41 ° a a o 00 r I a rol a, Or� a Introductory Section Map of City of Ashland CITY OF ASH LAN D OREGON ASHLAND 21 o ~ I a ASH D ST �4 10 —City of Ashland Annual Comprehensive Financial Report Page 18 of 194 FINANCIAL SECTION 11 —City of Ashland Annual Comprehensive Financial Report Page 19 of 194 Financial Section CC bakertitty Report of Independent Auditors The Mayor and City Council City of Ashland, Oregon Report on the Audit of the Financial Statements Opinions 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 Ashland, Oregon (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 accompanying 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 of Ashland, Oregon 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 (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards). 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. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP,trading as Baker Tilly,are members of the global network of Baker Tilly International Ltd.,the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. 12 —City of Ashland Annual Comprehensive Financial Report Page 20 of 194 Financial Section 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 GAAS 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 GAAS 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, schedule of change in other post-employment benefits (OPEB), liability and related ratios—medical benefits, schedule of proportionate share of net OPEB (asset) liability and schedule of contributions, schedule of proportionate share of net pension liability and schedule of contributions, and budgetary comparisons 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. 13 —City of Ashland Annual Comprehensive Financial Report Page 21 of 194 Financial Section We have applied certain limited procedures to the management's discussion and analysis, schedule of change in other post-employment benefits (OPEB), liability and related ratios—medical benefits, schedule of proportionate share of net OPEB (asset) liability and schedule of contributions, and schedule of proportionate share of net pension liability and schedule of contributions in accordance with GAAS, 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. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The budgetary comparison information described above is the responsibility of management and is derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The budgetary comparison information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary comparison information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. 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 combining and individual nonmajor fund financial statements and schedules, capital assets used in the operation of governmental funds by source, schedule of assets used in the operation of governmental funds by function and activity, and schedule of bond principal and bond interest transactions (collectively, supplementary information) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 14—City of Ashland Annual Comprehensive Financial Report Page 22 of 194 Financial Section Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 26, 2025, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Other Reporting Required by Minimum Standards for Audits of Oregon Municipal Corporations In accordance with the Minimum Standards for Audits of Oregon Municipal Corporations, we have also issued our report dated November 26, 2025, on our consideration of the City's compliance with certain provisions of laws, regulations, contracts, and grant agreements, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules 162-010-0000 through 162- 010-0330 of the Minimum Standards for Audits of Oregon Municipal Corporations. The purpose of that report is to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. 0. Amanda Moore, Principal, for Baker Tilly US, LLP Medford, Oregon November 26, 2025 15 —City of Ashland Annual Comprehensive Financial Report Page 23 of 194 Financial Section CITY OF ASHLAND, OREGON Management Discussion and Analysis For the year ended June 30, 2025 The Management Discussion and Analysis section of the City of Ashland's Annual Comprehensive Financial Report(ACFR) provides an overview of the City's financial activities for the year ending June 30, 2025. The purpose is to highlight significant financial issues, major financial activities and resulting changes in the financial position and economic factors affecting the City. Readers are encouraged to consider the information presented here in conjunction with the information furnished in the letter of transmittal, the City's financial statements and the accompanying notes following the financial information. Financial Highlights • Assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $180.9 million (net position). Of this amount, $127.6 million is invested in capital assets, such as streets, land, and buildings. The remainder is primarily cash and investments, consisting of$12.1 million that is non-expendable or restricted by legislation, capital projects, debt service, or donor intent. • The City of Ashland's total net position increased by $1.4 million over the prior year. The net position from Governmental Activities decreased by $1.8 million while net position from Business-Type Activities increased by $3.1 million. • At the close of fiscal year 2025, the ending fund balances of the City's governmental funds totaled $32.2 million, a decrease over fiscal year 2024. • Government-wide outstanding debt was $25.5 million at year end. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City's Basic Financial Statements, which are comprised of three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements and 3) Notes to the Financial Statements. Other Supplementary Information, intended to furnish additional detail to support the Basic Financial Statements, is also provided in the ACFR at the end of the report. Government-wide Financial Statements The government-wide financial statements are designed to give the reader a picture of the financial condition and activities of the City as a whole. This broad overview is similar to the financial reporting of private-sector businesses. The government-wide financial statements have separate columns for governmental activities and business-type activities. Governmental activities of the City include general government, public safety, highway and streets and parks and recreation. The City's business-type activities are limited to water, wastewater, storm water, electric, and telecommunications. Governmental activities are primarily supported by taxes, charges for services, and grants, while business-type activities are self-supporting through user fees and charges. 16 —City of Ashland Annual Comprehensive Financial Report Page 24 of 194 Financial Section The Statement of Net Position presents financial information on the City's assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information designed to show how the City's net position changed during the year. The statement distinguishes revenue generated by specific functions from revenue provided by taxes and other sources not related to a specific function. The revenue generated by the specific functions (charges for services, grants, and contributions) is compared to the expenses for those functions to show the degree to which each function supports itself or relies on taxes and other general funding sources for support. All activity in this statement is reported on the accrual basis of accounting, requiring that revenues are reported when they are earned and expenses are reported when they are incurred, regardless of when cash is received or disbursed. Items such as (but not limited to) uncollected taxes, unpaid vendor invoices for goods or services received during the year and earned but unused vacation leave are included in the Statement of Activities as revenue and expenses even though no cash has changed hands. The Government-wide Financial Statements can be found immediately following this section (the Management's Discussion and Analysis) of the ACFR. Fund Financial Statements A fund is a fiscal and accounting entity with a self-balancing set of accounts used to account for specific activities or meet certain objectives. Funds are often set up in accordance with special regulations, restrictions, or limitations. The City of Ashland, like other state and local governments, uses fund accounting to ensure and show compliance with finance-related legal requirements. The ACFR includes Fund Financial Statements in addition to the Government-wide Financial Statements. While the Government-wide Statements present the City's finances based on the type of activity, general government versus business-type, the Fund Financial Statements are presented by fund type such as the General Fund, special revenue funds, and proprietary funds. The City's funds are divided into two categories: governmental funds and proprietary funds. Governmental funds are used to account for essentially the same functions as are reported as governmental activities in the Government-wide Financial Statements. These reports use a different "basis of accounting" than that used in Government-wide Financial Statements. The Governmental Fund Statements focus on near-term revenues/financial resources and expenditures while the Government-wide Financial Statements include both near-term and long- term revenues/financial resources and expenses. The information in the Governmental Fund Statements can be used to evaluate the City's near-term financing requirements and immediate fiscal health. Comparing the Governmental Fund Statements with the Government-wide Statements can help the reader better understand the long-term impact of the City's current year financing decisions. To assist in this comparison, reconciliations between the governmental fund statements and the Government-wide Financial Statements are included with the Governmental Fund Balance Sheet and the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances. The City of Ashland maintains fifteen individual governmental funds. The City has two major 17 —City of Ashland Annual Comprehensive Financial Report Page 25 of 194 Financial Section governmental funds — the General Fund and the Street Fund — presented separately in the Governmental Fund Balance Sheet and the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances. The budgetary Parks General Fund, Reserve Fund, and Parks Equipment Fund are rolled into the General Fund for reporting purposes. The remaining ten governmental funds are combined in this statement into a single column labeled Other Governmental Funds. Individual fund data for each of the other governmental funds can be found in combining statements later in this report. The City maintains budgetary control over its operating funds through the adoption of a biennial budget. Budgets are adopted at the fund level for all funds in accordance with state law. All budgetary comparison schedules are included following the other governmental funds' combining statements in this report. Proprietary funds are used by governments to account for their business-type activities. Business-type activities provide specific goods or services to a group of customers that are paid for by fees charged to those customers. There is a direct relationship between the fees paid and the services received. The City of Ashland has two types of proprietary funds, enterprise funds and internal service funds. Enterprise funds are used to account for goods and services provided to the community. Internal service funds are used to account for goods and services provided internally to various City departments. The same basis of accounting is used for proprietary funds in both the Government-wide Statements and the individual fund statements. Enterprise funds of the City are used to report the same functions presented as business-type activities in the Government-wide Statements with the fund statements providing more detail than is reported in the Government-wide Statements. The enterprise fund statements provide separate information for the City's water, wastewater, stormwater, electric and telecommunications utilities. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for its fleet of vehicles and insurance program. Internal service fund activities are predominantly governmental and have been included in the Governmental Activities' columns of the Government-wide Statement of Net Position and Statement of Activities. Notes to the Financial Statements The Notes to the Financial Statements provide additional information that is important for a full understanding of the data in the government-wide and fund financial statements. The Notes are located immediately following the Basic Financial Statements. Other Information In addition to the Basic Financial Statements and accompanying notes, this report also presents certain Required Supplementary Information concerning the City's progress in funding its obligation to provide pension benefits and other post-employment benefits. Required Supplementary Information may be found immediately following the Notes to the Financial Statements. 18 —City of Ashland Annual Comprehensive Financial Report Page 26 of 194 Financial Section Combining Statements for other governmental funds and internal service funds are presented immediately following the Required Supplementary Information. Government-wide Financial Analysis Statement of Net Position The Statement of Net Position can serve as a useful indicator of the City's financial position. The City of Ashland's total net position as of June 30, 2025, was $180.9 million, which represents a $1.4 million, or less than 1%, increase over fiscal year 2024. Following is a condensed version of the Government-wide Statement of Net Position (expressed in thousands of dollars): City of Ashland's Net Position (in thousands of dollars) Total Governmental Business-type Percentage Activities Activities Total Change 2025 2024 2025 2024 2025 2024 2025-2024 Current and other assets $ 38,792 $ 45,637 $ 54,410 $ 52,762 $ 93,201 $ 98,399 -5.3% OPEB asset 559 417 0 88 559 505 10.7% Capital assets,net of accumulated depreciation 80,894 78,157 72,343 71,553 153,237 149,709 2.4% Total assets 120,244 124,211 126,753 124,402 246,997 248,613 -0.6% Total deferred outflows of resources 12,954 9,759 3,225 2,612 16,179 12,371 30.8% Current liabilities 4,352 6,600 3,724 3,518 8,076 10,118 -20.2% Long-term liabilities 42,279 40,576 24,611 25,307 66,890 65,883 1.5% Total liabilities 46,632 47,176 28,335 28,825 74,967 76,001 -1.4% Total deferred inflows of resources 5,858 4,322 1,413 1,095 7,271 5,418 Net Position: Net investment in capital assets 72,327 68,235 55,246 54,138 127,573 122,373 4.2% Restricted 8,844 7,910 3,748 3,456 12,592 11,366 10.8% Unrestricted surplus(deficit) -463 6,326 41,236 39,499 40,773 45,825 -11.0% Total net position $ 80,709 $ 82,472 $ 100,229 $ 97,093 $ 180,938 $ 179,565 0.8% The largest component of the City's total net position ($127.6 million, or 70.6%) is net investment in capital assets (i.e., land, buildings, machinery, lease equipment, vehicles, and infrastructure less any related outstanding debt that was used to acquire those assets). The City uses these capital assets to provide a variety of services to the community. Accordingly, these assets are not available for future spending. Although investment in capital assets is reported net of related debt, it should be noted that the resources used to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The non-expendable and restricted component of the City's total net position ($12.6 million, or 7.0%) represents resources that are subject to external restrictions on how they may be used. It includes resources that are restricted for capital projects ($7.2 million), projects funded by grants ($825,852), or debt ($1.1 million). The remaining total net position balance of $40.8 million, or 22.5%, is unrestricted and may be used to meet the City's ongoing obligations to the community and creditors. Changes in Net Position The Changes in Net Position table below illustrates the increase or decrease in the City's net position resulting from operating activities. Overall, the City's net position increased by $1.4 19 -City of Ashland Annual Comprehensive Financial Report Page 27 of 194 Financial Section million, or less than 1%, over the prior year. A breakdown of increase in net position by governmental and business-type activities along with charts and graphs that illustrate revenues by source and compare program expenses to program revenues are shown on the next several pages. Changes in City of Ashland's Net Position (in thousands of dollars) Total Governmental Business-type Percentage Activities Activities Total Change 2025 2024 2025 2024 2025 2024 2025-2024 Program revenues: Charges for services $ 20,695 $ 22,141 $ 35,024 $ 35,995 $ 55,719 $ 58,136 -4.2% Operating grants and contributions 2,587 6,639 978 1,237 3,565 7,876 -54.7% Capital grants and contributions 371 317 0 975 371 1,292 -71.3% General revenues: Property taxes 13,907 13,776 0 0 13,907 13,776 1.0% Other taxes 10,345 10,717 0 0 10,345 10,717 -3.5% Interest 1,607 1,862 1,839 1,723 3,447 3,585 -3.9% Other 162 0 48 572 209 572 -63.4% Total revenues 49,673 55,452 37,889 40,501 87,563 95,953 -8.7% Program expenses: General government 14,437 15,069 0 0 14,437 15,069 -4.2% Public safety 21,217 20,594 0 0 21,217 20,594 3.0% Highways and streets 7,370 5,649 0 0 7,370 5,649 30.5% Parks and Recreation 8,260 6,720 0 0 8,260 6,720 22.9% Interest on long-term debt 203 131 0 0 203 131 55.6% Water 0 0 7,176 6,924 7,176 6,924 3.7% Wastewater 0 0 6,420 6,252 6,420 6,252 2.7% Stormwater 0 0 781 984 781 984 -20.6% Electric 0 0 17,557 16,292 17,557 16,292 7.8% Telecommunications 0 0 2,769 2,812 2,769 2,812 -1.5% Total expenses 51,486 48,162 34,703 33,263 86,190 81,425 5.9% Increase(decrease)in net position before transfers and disposals -1,813 7,289 3,186 7,238 1,373 14,528 -90.5% Interfund transfer 50 50 -50 -50 0 0 N/A Increase(decrease)in net position -1,763 7,339 3,136 7,188 1,373 14,528 -90.5% Transfer Net position-Beginning 82,472 75,132 97,093 89,905 179,565 165,038 8.8% Net position-Ending $ 80,709 $ 82,472 $ 100,229 $ 97,093 $ 180,938 $ 179,565 0.8% Governmental Activities The net position for governmental activities decreased by $1.8 million, or 2.2%, in fiscal year 2025. Key changes from the prior year are as follows: • Total assets and deferred outflows from governmental activities decreased by $772,000 million, or .5%. o The internal services allocation, which is subtracted from assets, was $1.3 million more than it was in fiscal year 2024. This is due to increasing costs for Personnel Services due to increased staffing and cost of living adjustments and Materials and Services. 20 -City of Ashland Annual Comprehensive Financial Report Page 28 of 194 Financial Section o Total receivables decreased by $2.7 million, or 27%, primarily from grant receivables, which decreased by $2.5 million, or 87.5%. o Capital assets, net of depreciation and amortization, increased by $2.7 million, or 7.5%. This is due to a new lease for a facility for the Finance Department and increases to our machinery and infrastructure. • Total liabilities and deferred inflows from governmental activities increased by $1 million, or 2%. o The City's pension liability increased by $827,884, or 3% See Note IV C in the Notes to the Financial Statements for additional information. o Long-term debt from loans decreased by $1.2 million, or 12.7%. See Note III E in the Notes to the Financial Statements for additional information. o Deferred inflows from pensions increased by $1.8 million, or 50.1%. See Note IV C in the Notes to the Financial Statements for additional information. • Total revenues decreased by $5.8 million, or 10.4%. o Total tax revenue decreased by $241,000, or 1%. Property tax revenue increased by $131,000, or 1%, and tax revenue from other taxes decreased by $255,000, or 3.5%. The Utility Users Tax is based on 25% of the Electric sales therefore the decrease in sales reflects in the tax received. o Interest revenue decreased by $255,000, or 13.7%. Interest earnings were much higher than normal due to the market in the previous year and this year was less, but still historically higher than normal. o Program revenues decreased by $5.4 million, or 18.6%, due to a $1.4 million, or 6.5%, decrease in charges for services and a $405,000, or 39% decrease in operating grants and contributions. The largest decrease, compared to the prior year, was in the Airport Fund for grants for Taxiway Rehabilitation. • Total expenses increased by $3.3 million, or 6.9% primarily due to a $623,000, or 3%, increase in expenses for public safety, a $1.7 million, or 69.5%, increase in highways and streets expenses, and a $1.2 million, or 17.5%, increase in expenses for parks and recreation. The larger increases in expense for highways and streets and parks are attributable to capital projects. Charts showing revenues by source and comparing program revenues and expenditures for governmental activities are shown on the following page. 21 —City of Ashland Annual Comprehensive Financial Report Page 29 of 194 Financial Section Revenues by Source—Governmental Activities Revenue by Source - Governmental Activities Capital grants 0% Operating grants 5% Property taxes 28°% Charges for services 42% \ Utility users tax 7°% Interest earnings& transfers �., Users taxes 3°% 15% Program Expense vs Program Revenue—Governmental Activities $25,000,000 $20,000,000 - $15,000,000 $10,000,000 $5,000,000 - General Government Public Safety Highways&Streets Parks and Recreation Interest on Long Term Debt ■Expense ■Revenue Business-type Activities Business-type activities which are associated with the City's utilities, had an increase in net position of $3.1 million, or 3.2%, over the prior year, primarily due to a decrease in utility receivables, which had increased since the COVID pandemic. $2.7 in receivables were reduced with the allowance for doubtful accounts. The allowance for doubtful accounts is an accounting estimate that reflects the portion of accounts receivable that a company expects will not be collected. This accounting practice helps provide a more accurate picture of the financial health by anticipating potential losses from uncollectible accounts before they occur. In fiscal year 2025, the City recognized a $424,447 allowance for doubtful accounts across governmental funds and a $2,288,626 across the business-type funds. The net position of the Water Fund increased by $3.3 million, or 8.4% over the prior fiscal year, due to net operating income of $1.9 million, and interest earnings of $878,000. This is primarily 22 —City of Ashland Annual Comprehensive Financial Report Page 30 of 194 Financial Section due to an increase in the Capital assets within the fund due to increased infrastructure and a decrease in revenue debt payable due to debt service payments. Water rates did not change during the year. The increase in the net position of the Wastewater Fund was a nominal $284,000, or less than 1%, in fiscal year 2025. This is primarily due to the reconciliation of the SDC Wastewater Fund balance. Wastewater rates did not change during the year. The net position of the Stormwater Fund increased by a nominal $88,000, or 4.2%, during fiscal year 2025 primarily due to net operating income. Stormwater rates did not change during the year. The net position of the Electric Fund decreased by $1.7 million, or 13%, primarily due to a decrease in net operating income for the allowance of doubtful accounts. Electric rates did not change during the year. The net position of the Telecommunication Fund decreased nominally during fiscal year 2025, by just$60,000, or 2.2%. Telecommunication rates did not change during the year. The net position of the Electric Fund decreased by $1.7 million, or 13%, primarily due to a decrease in net operating income for the allowance of doubtful accounts. Electric rates did not change during the year. Revenues by Source— Business-Type Activities Operating grants Interest,Misc,Taxes 3% and Transfers 5% Capital grants 0% Charges for services 92% 23 —City of Ashland Annual Comprehensive Financial Report Page 31 of 194 Financial Section Program Expense vs Program Revenue— Business-Type Activities $20,000,000 $15,000,000 $10,000,000 $5,000,000 — $- �0 �a Expense Revenue Financial Analysis of the Government's Funds As noted earlier, the City uses fund accounting to ensure it can demonstrate compliance with finance-related legal requirements. Governmental Funds The purpose of the City's governmental funds is to report on near-term inflows, outflows, and balances of spendable resources. This information helps determine the City's future financial requirements. Fund balance is a good indicator of the City's resources available at year end. At the end of the current year, the City's combined ending governmental fund balance was $32.2 million, which represents a decrease of $3 million or 8.5%, from the prior year. The decrease is due to the following: • Less Intergovernmental Revenue for grants for the Airport Fund • Less proceeds from Debt Issuance for the Street Fund for the Ashland Street Overlay project • Less Capital Outlay due to the completion of the Taxiway Rehabilitation project. • Less Capital Outlay due to the completion of the Ashland Street Overlay project. • Less Capital Outlay due to a one-time expense for the purchase of property for a winter shelter. • Less Transfers Out due to the dissolution of the Parks General Fund, Parks Equipment Fund, and the Health Benefits Fund. Of the total ending fund balance, over $8.5 million is nonexpendable or restricted and subject to an external legal constraint as follows: • $995,000 is held for the City's Cemetery Trust Fund • $826,000 is grant revenue that is restricted in use. • $41,000 is from asset seizures and is restricted for drug use intervention. 24—City of Ashland Annual Comprehensive Financial Report Page 32 of 194 Financial Section • $923,000 is from lodging tax and is restricted to promote tourism. • $540,000 is from Opioid Remediation • $430,000 is restricted for airport activities. • $1.1 million is restricted for payment of debt. • $3.4 million is from system development charges and is restricted in use for capital improvements. • $22,000 is from donations restricted by donor intent. The committed fund balance contains amounts that can be used for specific purposes determined by formal action of the City Council. Of the total ending fund balance, $8.4 million is committed to street, park, housing, capital projects, public art and parking. The unassigned balance of$15.4 million in the General Fund consists of amounts not otherwise classified such as revenue stabilization, cost of living adjustment, and working capital. Technically, these funds are unrestricted, which means they are available for spending at the City's discretion. A significant portion of the unassigned balance is budgeted to fund one-time costs, carryovers, and contingencies. Major Governmental Funds The General Fund is the primary operating fund of the City, through with all receipts and payments of ordinary City operations are processed unless they are required to be accounted for in another fund. At the end of fiscal year 2025, the fund balance of the General Fund (including Reserve funds)was $17.4 million, which represents a decrease over the prior year of$2.7 million, or 13.5%. General Fund revenues decreased by $1.3 million, or 3.1%, over the prior year primarily due to the net effect of the following: • Tax revenue increased by $317,000, or 1.3%, mainly from property tax which is based on assessed value, which increased by $131,000, or 1.0%. Franchise fees increased by $300,000, or 7.6% due to a new fee assessed to the Ashland Fiber Network. These were offset by a decrease in electric users tax due to the allowance for doubtful utility accounts, which decreased by$203,000, or 5.7%. The electric users tax is calculated as 25% of the electric sales. • Permitting revenue is cyclical and varies from year to year. In fiscal year 2025 the City received $438,000, or 26.6%, less in permitting related revenue than it did the prior year due to a decrease in building permit activity and the timing of housing starts and commercial development. • The General Fund received $201,000, or 26.8%, less in state shared revenues primarily due to a reduction in Liquor sales, $373,000, or 37.6%, less in grant revenues for our Fire Department, and $34,000 in Opioid Settlement Revenue in new revenue. • High short-term interest rates and prudent investing remain higher than historical levels, however, have decreased $309,000 or 26.7% over the prior year. General Fund expenditures, excluding funds transfers to funds rolled up within the General Fund, increased by $1.4 million, or 3.3%, over the prior year primarily due to the net effect of the following: 25 —City of Ashland Annual Comprehensive Financial Report Page 33 of 194 Financial Section • An increase in the cost of salaries and benefits of $2.8 million, or 10.6%, due to filling vacant positions, new positions, and cost of living increases in accordance with collective bargaining agreements. • A $1.9 million, or 13% decrease in the cost of materials and services primarily due to the Wildfire Division of the Fire Department reduction in contractual services for Wildfire Mitigation. The Street Fund accounts for financial resources to be used for street-related operations and capital projects. At the end of fiscal year 2025, the fund balance of the Street Fund was $4.2 million, a decrease of $284,000, or 6.4%, over the prior year primarily due to the Proceeds from Debt Issuance in fiscal year 2024. Street Fund operating revenues were $78,000, or 1.3%, lower than the prior year primarily due to the net effect of the following: • The City of Ashland collects a 5% tax from the sale of prepared food and nonalcoholic beverages. In fiscal year 2025, collection on the food and beverage tax was reported lower than expected levels and the City is in the process of auditing provider accounts. Revenue was $127,000 or 5.4% lower than the prior year. Street Fund expenditures were $1.2 million, or 16.7 %, less than the prior year primarily due to a $1.9 million, or 61.3%, decrease in street capital improvement projects with the completion of the Ashland Street Overlay. Proprietary Funds The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Factors concerning the finances of the City's proprietary funds have already been addressed in the discussion of the City's business-type activities. General Fund Budgetary Highlights The City of Ashland budgets on a biennial basis. The final adopted budget for the 2023-2025 biennium includes the following significant amendments to the originally adopted budget for the General Fund: • $1.2 million in grant revenues was added for an emergency shelter as well as the corresponding expenditure. • $295,000 in grant revenue was added for fire education as well as the corresponding expenditures. • $141,000 in charges for services revenue for wildfire mitigation was added as well as the corresponding expenditures. • $500,000 in interest revenue was added as well as $500,0000 in fire mediation expenditures. • $174,000 in grant revenue for fire education and air quality monitoring was added as well as the corresponding expenditures. • $159,000 in revenue from timber sales was added as well as a corresponding expenditure in fire mediation expenditures. 26 —City of Ashland Annual Comprehensive Financial Report Page 34 of 194 Financial Section • $315,000 in revenue from timber sales and parks grants were added as well as corresponding expenditures for mediation and capital improvement. • $3.3 million in revenue as operating transfers in from closing of the Parks General Fund, Parks Equipment Fund, and the Health Benefits Fund and operation of these moved into the General Fund. • $396,000 in revenue from the State of Oregon for opioid prevention, treatment and recovery strategies. • $76,000 in revenue for reimbursement for Fire Conflagration Assistance. • $38,000 in revenue for Parks grants for corresponding expenditures in capital improvement. • $1 million in transfers out to the Capital Improvement Fund for expenditures related to debt service and purchase of 2200 Ashland Street and for construction of Pioneer Hall and the Community Center. • $700,000 transfer from Contingency and increased expenditure appropriations for the Fire and Rescue Department due to an increase in personnel costs due to overtime and a need to replace the Fire Station Alerting System. Capital Assets The City of Ashland's investment in capital assets for its governmental and business-type activities at the end of fiscal year 2025 amounted to $153.2 million (net of accumulated depreciation and amortization), which represents an increase of $3.6 million, or 2.4%, over the prior year. Investment in capital assets includes land, art and construction in progress, which are not subject to depreciation. The other capital assets: leases, subscription-based information technology agreements, buildings and building improvements, improvements other than buildings, machinery and equipment, and infrastructure, are subject to depreciation and amortization. Governmental capital assets (net of accumulated depreciation and amortization) totaled $81 million at the end of fiscal year 2025, which represents an increase of$2.9 million, or 3.7%, over the prior year. Business-type capital assets (net of accumulated depreciation and amortization) totaled $72.3 million at the end of fiscal year 2025, which represents an increase of$734,000, or 1%, over the prior year. In addition to the effects of depreciation, these increases are the result of improvements to buildings, contributed capital, and construction in progress. More information on the City's Capital Assets can be found in Note III C. Capital Assets in the Notes to the Financial Statements. 27 —City of Ashland Annual Comprehensive Financial Report Page 35 of 194 Financial Section City of Ashland's Capital Assets (net of depreciation and amortization) (in thousands dollars) Total Governmental Business-type Percentage Activities Activities Total Change 2025 2024 2025 2024 2025 2024 2025-2024 Land $ 15,994 $ 15,994 $ 3,107 $ 3,107 $ 19,101 $ 19,101 0.0% Construction in progress 8,819 9,886 21,237 18,288 30,057 28,175 6.7% Right to use lease assets 996 626 - - 996 626 59.2% Right to use SBITA assets 718 718 - - 718 717,698 N/A Buildings and improvements 48,931 48,560 22,100 22,100 71,031 70,660 0.5% Machinery and equipment 31,181 28,311 2,864 2,835 34,045 31,146 9.3% Infrastructure 70,029 65,259 99,448 99,448 169,476 164,706 2.9% Totals at historical cost 176,668 169,353 148,755 145,777 325,423 315,130 3.3% Total accumulated depreciation and amortization 95,774 91,315 76,466 74,224 172,240 165,539 4.0% Net capital assets $ 80,894 $ 78,039 $ 72,290 $ 71,553 $ 153,183 $ 149,591 2.4% Long-term Debt At the end of fiscal year 2025, the City of Ashland had total outstanding debt of $25.5 million, which consists of$2.2 million in general obligation bonds, $20.8 million in pledged revenue debt, $1.4 million in notes payable, and $1.1 million in lease and SBITA liabilities, which constitute direct borrowings. City of Ashland's Long Term Debt (in thousands) Total Governmental Business-type Percentage Activities Activities Total Change 2025 2024 2025 2024 2025 2024 2025-2024 GO bonds payable $ 1,425 $ 2,940 $ 740 $ 970 $ 2,165 $ 3,910 -44.63% Pledge revenue debt 4,565 4,029 16,250 16,359 20,815 20,388 2.09% Notes payable 1,373 1,649 - - 1,373 1,649 -16.74% Lease liability 630 485 630 485 29.80% SBITA liability 486 610 - - 486 610 N/A Total long-term debt $ 8,480 $ 9,713 $ 16,990 $ 17,329 $ 25,469 $ 27,043 -5.82% No new General Obligation Debt was incurred in fiscal year 2025. The 2013 AFN Debt was paid off in fiscal year 2025 reducing the GO bonds payable. The City incurred $1 million in new debt during the year, drawing down loan proceeds in the Street Fund for the Ashland Street Overlay Project and the Wastewater Fund for the Riparian Restoration project and Outfall Relocation project. Lease liability increased primarily due to the Finance Department entering a five year lease for a building located at 2245 Ashland Street. See Note III E. Long-term Debt in the Notes to the Financial Statement for additional information on the City's debt. 28 -City of Ashland Annual Comprehensive Financial Report Page 36 of 194 Financial Section Debt limitation. Oregon Revised Statutes provide a limit on non-self-supporting general obligation debt of 3% of the real market value of all taxable property within the City's boundaries. Based on the real market value of property in the City for fiscal year, the maximum general obligation debt authorized is $158,532,778. The amount of outstanding City debt subject to this limitation is $2,165,000 (under 3% of the maximum debt limitation). Economic Factors and Next Biennium's Budget and Rates The balanced 2025-2027 biennial budget of$372.5 million reflects City staff's hard work to ensure the continuation of essential services at the service level the Community desires. This also moves forward essential projects of$89.7 million to ensure Ashland continues to be a desirable place to live, work and play. This has been done with careful consideration of needs and priorities within our community to ensure the City maintains sound financial footing into the future. The rising cost of personnel and materials and the uncertain economic outlook both locally and federally are an added challenge in the development of the biennium budget. Preparation of the biennium budget was inherently more complex as the U.S. economy contended with various factors such as inflation, high interest rates, potential tariff impacts, supply chain issues, and fears of recession. Traditionally the City had been successful in receiving both federal and state funding dollars. With uncertainty around the continuation of funding programs at both levels the City had to budget with the assumption that traditional grant programs the City may have been able to receive will no longer be available. The City has seven, potentially eight, labor groups including unrepresented staff members. This level of complexity for a City this size adds a level of challenge when it comes to maintaining our workforce and sustaining the high quality of services the community has come to expect. Over the last biennium the City has worked diligently to fill vacant positions, reduce turnover and ensure we are a preferred employer in the Rogue Valley and Southern Oregon. The pressure of inflation and rising personnel costs are front of mind during on-going labor negotiations this year and the goal is to offer cost appropriate pay and benefits to current employees recognizing the constraints the City faces around resources. We must continue to carefully manage City resources to ensure we can retain our talented and skilled employees as well as provide essential services. Deferred maintenance continues to be a pressing issue for the City. The City is facing significant and pressing needs to address deferred maintenance and make investments in its facilities. The development of the budget ensures we are maintaining sufficient fund balances in all funds moving forward and are on strong financial footing to place the City in a solid position to successfully explore funding strategies to address this in the future. Staff will be working diligently to provide City Council with a detailed assessment of all City facilities and space needs as well as a plan to move forward with addressing this need. As we move forward into the future there are opportunities for innovation and collaboration for the City of Ashland. Through the next biennium the City will continue to evaluate how it provides service to the community, the level of service that can be provided in alignment with expected revenues and through a Strategic Planning process determine the priorities of both City Council and the community long-term. The Strategic Plan will assist with the development of a long-term financial roadmap for where to prioritize the City's resources. The community will continue to be 29 —City of Ashland Annual Comprehensive Financial Report Page 37 of 194 Financial Section well served by its City organization though that service may look different over time as service levels are adjusted to meet revenue availability. The success of all that the City has accomplished and will accomplish is a direct reflection of the dedicated work of City employees, community volunteers and the City Council. The City remains committed to providing the resources necessary to foster resiliency, stimulate growth, and invest in the potential of our community. By making thoughtful decisions today, we can navigate successfully through uncertain times and look forward with optimism to the future. Financial Contact This financial report is designed to provide a general overview of the City of Ashland's finances for readers with an interest in the City's finances. Questions concerning any of the information provided in this report, or requests for additional information, may be addressed to the City's Finance Department 20 East Main, Ashland, Oregon, 97520 or finance(a)-ashlandoregon.gov (541) 488-5300. 30 —City of Ashland Annual Comprehensive Financial Report Page 38 of 194 BASIC FINANCIAL STATEMENTS 31 —City of Ashland Annual Comprehensive Financial Report Page 39 of 194 Basic Financial Statements CITY OF ASHLAND, OREGON Statement of Net Position June 30, 2025 Primary Government Governmental Business-type Activities Activities Total Assets: Current assets: Cash and cash equivalents and investments $ 39,472,502 $ 38,867,976 $ 78,340,479 Receivables(net of allowance for uncollectible) 7,261,974 3,855,258 11,117,233 Prepaid items 137,792 - 137,792 Inventories 46,205 2,294,542 2,340,747 Internal balances (9,391,852) 9,391,852 - Restricted assets: Cash and cash equivalents 991,239 - 991,239 Total current assets 38,517,860 54,409,629 92,927,488 Noncurrent assets: RHIA assets 558,792 - 558,792 Receivables(net of allowance for uncollectible) 101,424 53,587 155,011 Lease receivables 172,530 - 172,530 Capital assets, not being depreciated or amortized Land 15,993,654 3,106,925 19,100,579 Construction in progress 8,819,273 21,237,253 30,056,526 Capital assets net of depreciation or amortization Right to use lease assets 678,014 - 678,014 Right to use SBITA assets 488,433 - 488,433 Buildings 23,499,531 11,319,539 34,819,070 Machinery and equipment 9,247,756 1,230,812 10,478,568 Infrastructure 22,166,848 35,395,105 57,561,953 Total noncurrent assets 81,726,256 72,343,221 154,069,477 Total assets 120,244,115 126,752,850 246,996,965 Deferred Outflows of Resources: Deferred outflows-Pension 12,295,598 2,897,658 15,193,256 Deferred outflows-OPEB 657,955 327,423 985,378 Total deferred outflows 12,953,553 3,225,081 16,178,634 The Notes to the Financial statements are an integral part of this statement 32 —City of Ashland Annual Comprehensive Financial Report Page 40 of 194 Basic Financial Statements CITY OF ASHLAND, OREGON Statement of Net Position June 30, 2025 Primary Government Governmental Business-type Activities Activities Total Liabilities: Current liabilities: Accounts payable and other 2,583,189 2,233,874 4,817,063 Retainage payable 86,517 54,021 140,538 Lease liability 185,136 - 185,136 SBITA liability 110,517 - 110,517 OPEB Liability 66,248 14,749 80,997 Bonds and notes 504,861 1,050,082 1,554,943 Accrued interest payable 140,537 222,936 363,473 Compensated absences 675,385 148,253 823,638 Total current liabilities 4,352,390 3,723,915 8,076,305 Noncurrent liabilities: Compensated absences 2,026,156 444,759 2,470,915 Proportional share of net pension liability 29,644,819 6,986,284 36,631,103 Transitional liability 247,130 - 247,130 Lease liability 444,750 444,750 SBITA liability 375,549 - 375,549 Total OPEB liability 2,682,141 1,240,384 3,922,525 Bonds and notes 6,858,691 15,939,718 22,798,409 Total noncurrent liabilities 42,279,235 24,611,145 66,890,380 Total liabilities 46,631,625 28,335,060 74,966,685 Deferred Inflows of Resources: Deferred inflows-leases 172,529 - 172,529 Deferred inflows-pension 5,394,121 1,271,213 6,665,334 Deferred inflows-OPEB 290,856 142,192 433,048 Total deferred inflows 5,857,506 1,413,405 7,270,911 Net Position: Net investment in capital assets 72,327,489 55,245,813 127,573,302 Restricted for: Perpetual care 995,101 - 995,101 RHIA asset 558,792 558,792 Grant restrictions-General Government 825,852 825,852 Asset forfeiture 40,537 40,537 Transient occupancy tax-tourism 922,621 922,621 Airport 429,898 429,898 Opioid Remediation 540,448 - 540,448 System development 3,410,707 3,748,119 7,158,826 Debt service 1,097,851 - 1,097,851 Donor restrictions 22,235 - 22,235 Unrestricted(deficit) (462,996) 41,235,535 40,772,539 Total net position $ 80,708,534 $ 100,229,467 $ 180,938, 001 The Notes to the Financial statements are an integral part of this statement 33 -City of Ashland Annual Comprehensive Financial Report Page 41 of 194 rn 4- 0 N V M O (O (O aF O W O N V V - O � N M O LO (O 0) O CD LO (O M I� :I- LO CD W LO N CDO CD I-- O LO V O Co O V W CV V O 0 0 r- ' O O) V � OO lf) V O) O) O O O LO (O W M V M O (O OO O V O Cl) (O O [-- N LO W I� O) (V M O M O N V ao O M O (O W V O O I-- (O M 6 � W O) 21 W V Cl lf) Cr) M Cr) V N O) M lf) O N (O �2 M (O M I-- — O O N N (V ao 69 69 cc O N a ' ' ' ' O w CDN V V ' W 0-) O I— (O I-- O 0 Q � V LO CD w 0') (O O (O %2 (O N � 0 0 I� V O O V 0 0 lf) M V > d L w U) M O (O w O O O) I-- O [-- (O Cl) O) N N O N V ao O) O) M V l!') M �2 O N N Cl) O N Q �Q m c a E N V V M O (O (O a ' ' ' ' aF O V V O (V (O O V Z O O IX) (O M M (V O O CD CD CD V O Co Co O V W Cl V O O V � ao O O) O W r- LQ O U') Co Co Co V V E O M I-- O O M w I� O (V M O M M O Co w O (O U') I-- Co O w �I� W 0') N W W 0') Co0') (O CD I-- V � E > (O M (O r_ N CDI� � M (O (O N N (V Co Co O Q C:) O Co N i i i N N i i i i N 0 C -a oc oc oc U) O C -a L() O W W W Z 0 cc cc O O O (6 U) 0) 0)7 I-- I-- I-- U) O a)O N � Cl) M Cl) O_ a Q E CU o 0 W d M C7 0 a) U) c o d U)) � o n O 'Z Q ao ao ' I U = 2 > (6 N Z 0 � fn Cl) Cl) Cl) (V M Lo LO M (O � N N Q N 0 (O— � (O M W L W V N X N O Z > N (V O V W O) O) ao O > �) N N N Q O d 0 rn N (O I� LO (o rn N x L (n d L U m O .O c�P c�S `m o:_ a) c 0 Co O Q CL E L O U EA d (6 Q� d ~ O ca OO M u) O W CO (V M O yr M I� W O w V M CD I-- V U') (Q N 2 N lf) M O lf) O) M W (V O) O O O W [-- U') M M V O M O .� N V - W 0') (O W V ao O) Co O I� L U O V M O O O N M LO a) U a) LL 69 y �_ O I-- (O LO V N I— V w M N N I� O (O O) (O O) M w O I-- O O U) O (O (O (O V V M (O (V (O O lf) I� O O) O) Cl) (0 (O O 1— W Cl) O O ._ N M (O lf) O W ao LO (O CD LO — V N M Cl N V V lf) I� � (a AN, Q V N I� Cl) (0N M I O- Q W lJ.l EA .� O Cu A` Cu N N N Q Cu .0 U +N O E Cc cc cc 'U N N N N f0 O Q C Cu N L Q 12 E '� N -6 c) c N N .E U) 0 li Co > � c N O y a) O L E 0) :IF •� g � ccc S 0) Cu m o n o m E > C� � 2d5 o N � � cnw � 0 Basic Financial Statements CITY OF ASHLAND, OREGON Balance Sheet Governmental Funds June 30, 2025 Other Total Governmental Governmental General Street Funds Funds Assets Cash and cash equivalents and investments $ 16,066,556 $ 3,364,509 $ 9,863,977 $ 29,295,042 Receivables(net of allowance for uncollectible) 5,967,290 907,584 447,005 7,321,879 Lease receivables - - 172,529 172,529 Prepaid items 133,032 4,760 137,792 Cash-restricted - - 991,239 991,239 Total assets $ 22,166,878 $ 4,272,093 $ 11,479,510 $ 37,918,481 Liabilities Accounts payable $ 2,017,572 $ 107,257 $ 393,550 $ 2,518,380 Retainage payable - 12,974 73,543 86,517 Total liabilities 2,017,572 120,231 467,093 2,604,897 Deferred Inflows of Resources Unavailable revenue-property taxes 494,098 - 7,515 501,613 Unavailable revenue-special assessments&other 2,302,647 95,281 2,397,928 Lease related - 172,529 172,529 Total deferred inflows of resources 2,796,745 275,325 3,072,070 Fund Balances Nonexpendable Perpetual care - 995,101 995,101 Prepaid items 133,032 4,760 137,792 Restricted Grant restrictions-general government 789,233 36,619 825,852 Asset forfeiture 40,537 - 40,537 Transient occupancy tax-tourism - 922,621 922,621 Opioid Remediation 540,448 - 540,448 Airport - 429,898 429,898 System development charges 3,410,707 3,410,707 Debt commitment - 1,097,851 1,097,851 Donor restrictions 22,235 22,235 Committed General activities 406,724 - 406,724 Housing activities - - 127,476 127,476 Street activities 4,151,861 - 4,151,861 Parks activities - 3,339,322 3,339,322 Capital projects funds - 372,737 372,737 Unassigned 15,420,353 - - 15,420,353 Total fund balances 17,352,562 4,151,861 10,737,091 32,241,514 Total liabilities,deferred inflows and fund balances $ 22,166,878 $ 4,272,093 $ 11,479,510 $ 37,918,481 The Notes to the Financial statements are an integral part of this statement 35 -City of Ashland Annual Comprehensive Financial Report Page 43 of 194 Basic Financial Statements CITY OF ASHLAND, OREGON Reconciliation of the Balance Sheet of Governmental Funds To the Statement of Net Position June 30, 2025 Amounts reported for governmental activities in the Statement of Net Position are different because: Total fund balances-governmental funds $ 32,241,514 The cost of capital assets (land, buildings, improvements, machinery and equipment, infrastructure, and construction in progress) is reported as an expenditure in governmental funds. The Statement of Net Position includes those capital assets among the assets of the City as a whole. Net capital assets 73,893,593 Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and,accordingly,are not reported as fund liabilities.All liabilities, both current and long-term,are reported in the Statement of Net Position. Long-term liabilities (7,363,552) Lease and SBITA liability (1,115,952) Accrued interest on liabilities (140,537) The net pension assets(liability),and deferred inflows and outflows related to the Net Pension Liability is the difference between the total pension liability and the assets set aside to pay benefits earned to the past and current employees and beneficiaries. (22,679,091) The OPEB assets(liability),and deferred inflows and outflows related to the OPEB Asset is the difference between the total OPEB liability and the assets set aside to pay benefits earned to the past and current employees and beneficiaries. (1,794,998) Accrued compensated absences are not due and payable in the current period and,therefore,are not reported in the funds. Accrued vacation and sick leave (2,660,235) Other long-term assets are not available to pay for current-period expenditures and,therefore,are deferred in the funds. Unavailable revenue: Unavailable-property taxes 501,613 Unavailable-special assessments and all others 2,397,928 Internal Service Funds are used by the City to charge costs of insurance,risk management,and fleet management services to individual funds.Their assets and liabilities are included in the Statement of Net Position. Internal Service Fund net position 7,428,250 Total net position $ 80,708,534 The Notes to the Financial statements are an integral part of this statement 36 —City of Ashland Annual Comprehensive Financial Report Page 44 of 194 Basic Financial Statements CITY OF ASHLAND, OREGON Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2025 Other General Street Governmental Total Fund Fund Funds Government Revenues Taxes $ 24,424,056 $ 2,216,306 $ 1,884,681 $ 28,525,043 Fees, licenses and permits 1,101,053 - - 1,101,053 Intergovernmental 1,204,430 1,744,738 191,762 3,140,930 Charges for services 11,121,520 1,584,730 1,476,710 14,182,959 System development charges - - 257,506 257,506 Assessments - 4,915 - 4,915 Fines and forfeitures 182,961 - - 182,961 Interest on investments 943,255 165,230 498,519 1,607,004 Miscellaneous 169,950 2,801 2,000 174,751 Total revenues 39,147,224 5,718,721 4,311,178 49,177,123 Expenditures Current: General government 13,527,859 - 1,454,108 14,981,967 Public safety 21,011,105 - - 21,011,105 Highways and streets - 4,705,871 77,607 4,783,478 Parks and recreation 7,028,526 - - 7,028,526 Debt service: Principal 216,918 75,000 1,716,052 2,007,970 Interest - 6,266 90,310 96,576 Capital outlay 1,836,192 1,215,359 2,415,354 5,466,905 Total expenditures 43,620,601 6,002,496 5,753,431 55,376,527 Excess(deficiency)of revenues over expenditures (4,473,376) (283,775) (1,442,253) (6,199,405) Other financing sources(uses) Issuance of debt - 536,427 536,427 Issuance of lease and SBITA 376,131 - 376,131 Transfers In 2,745,202 1,531,886 4,277,088 Transfers Out (1,346,243) (655,299) (2,001,542) Total other financing sources(uses) 1,775,090 11413,014 3,188,104 Net change in fund balances (2,698,286) (283,775) (29,239) (3,011,300) Fund balances-beginning 20,050,848 4,435,636 10,766,331 35,252,814 Fund balances-ending $ 17,352,562 $ 4,151,861 $ 10,737,091 $ 32,241,514 The Notes to the Financial statements are an integral part of this statement 37 —City of Ashland Annual Comprehensive Financial Report Page 45 of 194 Basic Financial Statements CITY OF ASHLAND, OREGON Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2025 Explanation of certain differences between the Net Changes in Fund Balance and the Government-wide Statement of Activities. Changes in net fund balance $ (3,011,300) Governmental funds report capital outlays as expenditures. However,in the Statement of Activities,the cost of those assets is allocated over their estimated useful lives and reported as depreciation and amortization expense. Capital contribution 370,822 Capital outlay expenditures capitalized 4,347,424 Lease and SBITA outlay capitalized 376,131 Depreciation and amortization expense (3,546,811) The Pension Expense and the changes in the deferred inflows and outflows related to the changes in the Net Pension Assets(Liability)from year to year due to changes in total pension liability and the fair value of 590,484 pension plan net position available to pay pension benefits. The OPEB Expense and the changes in the deferred inflows and outflows related to the changes in the total OPEB Assets(Liability)from year to year due to changes in total OPEB liability and the fair value of OPEB plan net position available to pay benefits. (64,950) Under the modified accrual basis of accounting used in the governmental funds,expenditures are not recognized for transitions that are not normally paid with expendable available financial resources. However, in the Statement of Activities(which is presented on the accrual basis of accounting)expenses and liabilities are reported,regardless of when financial resources are available. This adjustment combines the net changes in liability balances. General obligation bonds and notes payable 1,609,933 Lease and SBITA (376,131) Compensated absences (943,629) Accrued interest (105,666) Revenues in the Statement of Activities that do not provide current financial recourses are not reported as revenues in the governmental funds. Property taxes 44,957 Special assessments and other 241,599 Internal Service Funds are used by the City to charge costs of insurance,risk management and fleet management services to individual funds. Their net activity is included in the statement of activities. Internal Service Fund change in net position (1,296,059) Change in net position $ (1,763,196) The Notes to the Financial statements are an integral part of this statement 38 —City of Ashland Annual Comprehensive Financial Report Page 46 of 194 Basic Financial Statements CITY OF ASHLAND,OREGON Statement of Net Position Proprietary Funds June 30,2025 Governmental Business-type Activities Activities Tele- Total Internal Water Wastewater Stormwater Electric communications Enterprise Service Fund Fund Fund Fund Fund Funds Funds ASSETS Current Assets Cash and cash equivalents and investments $ 18,402,027 $ 8,894,113 $ 2,059,707 $ 7,000,237 $ 2,511,892 $ 38,867,976 $ 10,177,461 Interest and accounts receivable,net 1,537,962 1,691,254 148,127 71,302 406,614 3,855,258 35,377 Notes and contracts receivable - - - 53,587 - 53,587 6,142 Inventories 689,024 4,236 - 1,598,777 2,505 2,294,542 46,205 Total current assets 20,629,013 10,589,603 2,207,834 8,723,903 2,921,011 45,071,364 10,265,185 Noncurrent Assets Capital assets Land 956,587 2,150,338 - - 3,106,925 98,770 Construction in process 10,440,606 10,483,798 21,711 - 291,138 21,237,253 - Capital assets 42,462,752 52,911,556 1,521,867 17,703,197 9,811,796 124,411,168 21,320,963 Less accumulated depreciation (24,570,926) (30,088,491) (1,139,900) (11,074,699) (9,591,696) (76,465,712) (14,419,817) Total noncurrent assets 29,289,018 35,457,201 403,678 6,628,498 511,239 72,289,635 6,999,916 Total assets 49,918,031 46,046,804 2,611,512 15,352,401 3,432,250 117,360,999 17,265,101 DEFERRED OUTFLOWS OF RESOURCES Pension related 721,376 533,587 134,764 1,221,386 286,545 2,897,658 168,341 OPEB related 91,428 117,340 37,612 68,215 12,828 327,423 9,907 Total deferred outflows of resources 812,804 650,927 172,376 1,289,601 299,373 3,225,081 178,248 LIABILITIES Current liabilities Accounts payable 684,074 264,037 10,477 710,018 60,488 1,729,094 56,546 Retainage payable 54,021 - - - - 54,021 - Accrued salaries and payroll taxes 122,664 25,956 5,514 54,914 12,153 221,201 8,263 Accrued interest payable 42,112 180,617 207 - - 222,936 - Other liabilities - - - 283,579 - 283,579 - Compensated absences 40,408 28,588 1,135 66,394 11,728 148,253 10,326 Pledged revenue debt payable-current 585,378 224,704 - - - 810,082 - General obligation bonds payable,current 185,000 45,000 10,000 240,000 Total current liabilities 1,713,657 768,902 27,333 1,114,905 84,369 3,709,166 75,135 Noncurrent liabilities Compensated absences 121,223 85,765 3,406 199,182 35,183 444,759 30,979 Net OPEB Liabilities 355,756 467,237 156,137 231,713 44,290 1,255,133 33,028 Proportionate Share of Net Pension Liability 1,739,245 1,286,484 324,918 2,944,774 690,863 6,986,284 405,873 Pledged revenue debt payable,net 7,119,471 8,320,247 - - - 15,439,718 - General obligation bonds payable,net 385,000 90,000 25,000 - - 500,000 Total noncurrent liabilities 9,720,695 10,249,733 509,461 3,375,669 770,335 24,625,894 469,880 Total liabilities 11,434,351 11,018,636 536,794 4,490,574 854,704 28,335,060 545,016 DEFFEERED INFLOWS OF RESOURCES Pension related 316,470 234,087 59,122 535,826 125,708 1,271,213 73,852 OPEB related 39,624 50,689 16,150 30,083 5,646 142,192 4,379 Total deferred inflows of resources 356,094 284,777 75,272 565,909 131,353 1,413,405 78,231 NET POSITION Net Investment in capital assets 20,960,148 26,777,250 368,678 6,628,498 511,239 55,245,814 6,999,916 Restricted for system development 966,355 2,726,658 55,106 - - 3,748,119 - Unrestricted 17,013,887 5,890,410 1,748,038 4,957,021 2,234,328 31,843,682 9,820,186 Total net position $ 38,940,390 $ 35,394,318 $ 2,171,822 $ 11,585,519 $ 2,745,567 $ 90,837,615 $ 16,820,102 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 9,391,852 Net position of business-type activities $ 100,229,467 The Notes to the Financial statements are an integral part of this statement 39 -City of Ashland Annual Comprehensive Financial Report Page 47 of 194 Basic Financial Statements CITY OF ASHLAND, OREGON Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended June 30, 2025 Governmental Business-type Activities Activities Tele- Total Internal Water Wastewater Stormwater Electric communications Enterprise Service Fund Fund Fund Fund Fund Funds Funds Operating revenues Charges for services $ 9,183,580 $ 6,433,948 $ 801,337 $ 15,924,806 $ 2,680,273 $ 35,023,944 $ 6,756,599 Miscellaneous 2,938 43 - 42,713 1,875 47,569 146,255 Total operating revenues 9,186,518 6,433,991 801,337 15,967,519 2,682,148 35,071,513 6,902,854 Operating expenses Cost of services 6,614,630 5,421,739 757,509 17,872,399 2,816,832 33,483,110 3,665,593 Depreciation 696,226 1,132,250 51,933 337,982 54,860 2,273,251 1,465,813 Total operating expenses 7,310,856 6,553,989 809,442 18,210,381 2,871,692 35,756,361 5,131,406 Operating income(loss) 1,875,662 (119,998) (8,105) (2,242,862) (189,544) (684,848) 1,771,448 Non-operating revenue(expenses): Intergovernmental 693,933 98,752 - 185,554 - 978,239 - Investmentearnings 877,577 405,650 97,449 329,899 128,923 1,839,498 440,744 Interest expense (127,744) (100,807) (892) - - (229,443) - Totalnon-operating revenue(expenses) 1,443,766 403,595 96,557 515,453 128,923 2,588,294 440,744 Transfers Transfer Out (50,000) - - - - (50,000) (2,225,546) Total transfers (50,000) - - (50,000) (2,225,546) Change in net position 3,269,428 283,597 88,452 (1,727,409) (60,621) 1,853,446 (13,354) Total net position-beginning 35,670,962 35,110,721 2,083,370 13,312,928 2,806,188 88,984,169 16,833,456 Total net position-ending $ 38,940,390 $ 35,394,318 $ 2,171,822 $ 11,585,519 $ 2,745,567 $ 90,837,615 $ 16,820,102 Change in position $ 1,853,446 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 1,282,705 Change in net position of business-type activities $ 3,136,151 The Notes to the Financial statements are an integral part of this statement 40 -City of Ashland Annual Comprehensive Financial Report Page 48 of 194 Basic Financial Statements CITY OF ASHLAND,OREGON Statement of Cash Flows Proprietary Funds For the year ended June 30,2025 Business-type Activities-Enterprise Funds Governmental Tele- Activities Water Wastewater Stormwater Electric communications Internal Service Fund Fund Fund Fund Fund Total Funds Cash flows from operating activities: Receipts from customers and users $ 9,232,878 $ 6,073,663 $ 814,008 $ 18,389,664 $ 2,765,927 $ 37,276,140 $ 7,710 Receipts from internal users - - - - - - 6,976,548 Payments to suppliers (3,741,919) (3,627,239) (431,689) (15,184,420) (1,925,319) (24,910,586) (3,559,173) Payments to employees (2,289,741) (1,745,507) (389,795) (3,613,283) (871,086) (8,909,412) (51,755) Net cash from operating activities 3,201,218 700,917 (7,476) (408,039) (30,478) 3,456,142 3,373,330 Cash flows from noncapital financing activities: Transfers In(Out) (50,000) - - (50,000) (2,225,546) Intergovernmental 693,933 98,752 185,554 978,239 Net cash from noncapital financing activities 643,933 98,752 185,554 928,239 (2,225,546) Cash flows from capital and related financing activities: Acquisition and construction of capital assets (2,025,511) (600,459) (60,941) (291,138) (2,978,049) (2,773,219) Proceeds from operating grants 128,493 432,523 - Proceeds from issuance of debt - 505,802 505,802 Principal paid on bonds,contracts and notes (683,430) (151,965) (10,000) (845,395) Interest paid on debt (127,744) (100,807) (892) (229,443) Net cash from capital and related financing activities (2,708,192) 85,094 (10,892) (60,941) (291,138) (3,547,085) (2,773,219) Cash flows from investing activities: Interest from investments and other income 877,577 405,650 97,449 329,899 128,923 1,839,500 440,744 Net increase(decrease)in cash and investments 2,014,536 1,290,413 79,081 46,473 (192,693) 3,237,810 (1,184,691) Cash and investments,beginning of year 16,387,491 7,603,700 1,980,626 6,953,764 2,704,585 35,630,166 11,362,152 Cash and investments,end of year $ 18,402,027 $ 8,894,113 $ 2,059,707 $ 7,000,237 $ 2,511,892 $ 38,867,976 $ 10,177,461 Reconciliation of operating income to net cash provided by operating activities: Operating income $ 1,875,662 $ (119,998) $ (8,105) $ (2,242,862) $ (189,544) $ (684,848) $ 1,771,448 Depreciation 696,226 1,132,250 51,933 337,982 54,860 2,273,251 1,465,813 Change in assets and liabilities: (Increase)decrease in: Receivables 46,360 (360,328) 12,671 2,422,145 83,780 2,204,628 81,402 Net pension liability and related deferreds (71,778) (19,469) (48,284) (380,902) (3,831) (524,264) (59,108) Total OPEB liability and related deferreds 52,961 72,831 (15,711) (47,836) (22,302) 39,943 (19,259) Inventories 79,890 - - (24,148) (2,505) 53,237 241,358 Increase(decrease)in: Accounts payable and accrued liabilities 430,854 (25,398) (670) (525,355) 29,356 (91,213) (126,036) Other liabilities 91,043 21,029 690 52,937 19,708 185,407 17,712 Net cash from operating activities $ 3,201,218 $ 700,917 $ (7,476) $ (408,039) $ (30,478) $ 3,456,142 $ 3,373,330 Schedule of non-cash capital and related financing activities: Unrealized gain(loss)on investments $ 14,469 $ 6,868 $ 1,583 $ 5,472 $ 1,935 $ 30,327 $ 7,832 Acquisition of capital assets through retainage payable 27,216 - - - - - - Net noncash investing,capital and financing activities $ 41,685 $ 6,868 $ 1,583 $ 5,472 $ 1,935 $ 30,327 $ 7,832 The accompanying notes are an integral part of the basic financial statements. 41 -City of Ashland Annual Comprehensive Financial Report Page 49 of 194 NOTES TO THE BASIC FINANCIAL STATEMENTS 42 —City of Ashland Annual Comprehensive Financial Report Page 50 of 194 Notes to the Basic Financial Statements CITY OF ASHLAND, OREGON Notes to the Basic Financial Statements For the year ended June 30, 2025 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Ashland, Oregon (City) is a municipal corporation operating under an amended charter adopted by the voters in 2020. The City Council (Council), composed of the Mayor and six council members, comprises the legislative branch of the government. Individual departments are under the direction of the City Manager, who is appointed by the Council. The accompanying financial statements present the City, an entity for which the City is considered to be financially accountable. B. Government-wide and Fund Financial Statements The presentation of financial information required by GASBS 34 for Basic Financial Statements and Supplementary Information are described below and in the Management's Discussion and Analysis located earlier in this document. The government-wide financial statements (i.e. the Statement of Net Position and the Statement of Changes in Activities) report information on the activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely, to a significant extent, on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Basis of Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary funds financial statements. Revenues are recorded when earned and expenses are reported when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The budgetary basis of accounting is the same as Generally Accepted Accounting Principles (GAAP). Revenues are recognized as soon as they are both 43 —City of Ashland Annual Comprehensive Financial Report Page 51 of 194 Notes to the Basic Financial Statements measurable and available. Revenues are considered to be available when they are collected within the period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when the payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are accruable so have been recognized as revenues of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. 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 general government, except those required to be accounted for in another fund. • The Street Fund accounts for the resources and operating expenditures related to the maintenance, operation and construction of the City's streets and storm water collection infrastructure. While a substantial portion of revenues come from user fees, the primary source is state-shared highway funds. The City reports the following major proprietary funds: • The Water Fund accounts for the resources and expenses related to supply, treatment and distribution of water throughout the City. The primary source of revenue is user fees. • The Wastewater Fund accounts for the resources and expenses related to collection and treatment of wastewater throughout the City. The primary source of revenue is user fees. • The Stormwater Fund accounts for the resources and expenses related to collection and treatment of stormwater throughout the City. The primary source of revenue is user fees. • The Electric Fund accounts for the resources and expenses related to distribution of electricity throughout the City. The primary source of revenue is user fees. • The Telecommunications Fund accounts for the resources and expenses related to broadband and high-speed data transmission services throughout the City. The primary source of revenue is user fees. Additionally, the City reports the following fund types: • Special revenue funds account for proceeds of specific revenue sources that are restricted, committed or assigned to expenditure for specific purposes other than debt service or capital expenditure. • Debt service funds account for financial resources that are restricted, committed, or assigned to expenditures for principal and interest related costs as well as the financial resources being accumulated for future debt service. • Capital projects funds account for financial resources that are restricted, committed, or assigned to expenditures for capital outlays, except for those financed by proprietary funds. 44—City of Ashland Annual Comprehensive Financial Report Page 52 of 194 Notes to the Basic Financial Statements Revenues are derived primarily from property taxes and state gas tax apportionments which are designated for the construction of specific projects. • Internal Service Funds account for insurance and fleet management services primarily provided to other departments or agencies of the City. The costs of the services provided are recovered by the charges to the department and/or outside agency receiving the service. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this rule are payment-in-lieu of taxes and other charges between the City's various utility funds and the other functions of the City. The enterprise funds which operate water, wastewater, and electric services are charged franchise fees by the General Fund. Franchise fees would be charged to any such operation under local ordinance, so these fees are recognized as direct operating expenses in those funds and as revenue to the General Fund rather than transfers. Payments for fiscal year 2025 include $810,233 from the Water Fund, $545,793 from the Wastewater Fund, $1,804,185 from the Electric Fund and $244,000 from the Telecommunications Fund. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses result from providing, producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The enterprise and internal service funds are charges to customers for sales and services. Where applicable, enterprise funds also recognize the portion of System Development Charges intended to recover the cost of connecting new customers to the system as operating revenue. Operating expenses for enterprise and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources to the limits of the policies and statutes governing them first, then unrestricted resources as they are needed. D. Assets, Liabilities and Net Position 1. Cash and Cash Equivalents and Investments The City's cash and cash equivalents are comprised of cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. State statutes authorize the City to invest in obligations of the U.S. Treasury, commercial paper, corporate bonds and the State Treasurer's Investment Pool. City investments are reported at fair value. The State Treasurer's Investment Pool operates in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of pool shares. 45 —City of Ashland Annual Comprehensive Financial Report Page 53 of 194 Notes to the Basic Financial Statements 2. Restricted Cash The balance of restricted assets reported in the Statement of Net Position is as follows: Governmental Activities Restricted Cash: Cemetery Trust Fund $ 991,239 3. Receivables and Payables Activity between funds that are representative of lending and borrowing arrangements outstanding at the end of the fiscal year are referred to as "due to\from other funds." Any residual balances outstanding between the governmental and business-type activities are reported in the government-wide financial statements as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not expendable available financial resources. All trade and property taxes receivable are shown net of an allowance for uncollectible accounts. Trade accounts receivable in excess of 120 days comprise the trade accounts receivable allowance for uncollectibles. Property taxes are levied as of July 1 on property assessed as of the same date. The tax levy is due November 15, with an optional payment method of 1/3 due November 15, 1/3 due January 15, and 1/3 due March 15. Taxes paid in full November 15 receive a three percent (3%) discount. Property taxes are considered delinquent after the appropriate due date, at which time the applicable property is subject to lien, and penalties and interest are assessed. Notes and contracts receivable are recorded at par. Interest assessed is recorded as revenue when the payment becomes due. 4. Inventories Inventories are reported at moving average cost. Inventories are recorded as expenditures when consumed rather than when purchased. 5. Prepaid items and Advances Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements using the consumption method. 6. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure (e.g., streets, roads, bridges, sidewalks and similar public domain items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined in the City's capitalization policy as having a historic cost or market value in excess of $5,000. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated assets, donated works of art and similar items, and capital assets received in a service concession arrangement will be reported at acquisition value at the date of the donation. 46 —City of Ashland Annual Comprehensive Financial Report Page 54 of 194 Notes to the Basic Financial Statements The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. The City's policy states that any asset that is internal development will be capitalized if the actual or estimated cost is $25,000 or more. The useful life of the assets will be determined by the developing department, the Finance Department and the City Manager. Property, plant and equipment of the primary government is depreciated using the straight-line method over the following estimated useful lives of the related assets: Buildings and improvements 33 to 50 years Electric power generation and distribution systems 40 to 70 years Water, wastewater and storm water systems 15 to 50 years Public domain infrastructure 15 to 25 years Equipment 2 to 20 years 7. Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick leave benefits. In 2025, GASB Statement 101, Compensated Absences, was implemented. GASB Statement 101 requires that a liability is recognized for vacation leave, sick leave and other types of paid time off. The measurement of this liability is determined by both historical usage patterns and is more likely than not to be used as time off or settled during or upon termination from employment, and employment policies. The City looks at leave usage from the previous 3 years to determine the liability. 8. Long-Term Liabilities 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 bond using the effective interest method. Bonds payable are reported net of the applicable bonding premium or discount. 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 issuance are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 9. Net Position/Fund Balance For government-wide reporting as well as in proprietary funds, the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources is called net position. Net position is comprised of three components: net investment in capital assets, restricted, and unrestricted. • Net investment in capital assets consists of capital assets, net of accumulated depreciation/amortization and reduced by outstanding balances of bonds, notes, and other debt that are attributable to the acquisition, construction, or improvement of those assets. 47 —City of Ashland Annual Comprehensive Financial Report Page 55 of 194 Notes to the Basic Financial Statements Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are included in this component of net position. • Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Assets are reported as restricted when constraints are placed on asset use either by external parties or by law through constitutional provision or enabling legislation. • Unrestricted net position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that does not meet the definition of the two preceding categories. Sometimes the City of Ashland will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. To calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City of Ashland's policy to consider restricted net position to have been depleted before unrestricted net position is applied. In governmental fund types, the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources is called fund balance. The City's governmental funds report the following categories of fund balance, based on the nature of any limitations requiring the use of resources for specific purposes. Non-spendable fund balance represents amounts that are not in a spendable form. The non-spendable fund balance represents perpetual care and prepaid items. Restricted fund balance represents amounts that are legally restricted by outside parties for a specific purpose (such as debt covenants, grant requirements, donor requirements, or other governments) or are restricted by law (constitutionally or by enabling legislation). Committed fund balance represents funds formally set aside by the governing body for a particular purpose. The use of committed funds would be approved by City Council resolution. Assigned fund balance represents amounts that are constrained by the expressed intent to use resources for specific purposes that do not meet the criteria to be classified as restricted or committed. Intent can be stipulated by the governing body or by an official to whom that authority has been given by the governing body. Currently, management does not have authority to assign fund balance. Unassigned fund balance is the residual classification of the General Fund. Only the General Fund may report a positive unassigned fund balance. Other governmental funds would report any negative residual fund balance as unassigned. As previously mentioned, the City of Ashland has approved the following order of spending regarding fund balance categories: restricted resources are spent first when both restricted and unrestricted (committed, assigned or unassigned) resources are available for expenditures. When unrestricted resources are spent, the order of spending is committed (if applicable), assigned (if applicable) and unassigned. To preserve a sound financial system and to provide a stable financial base, the governing body has 48 —City of Ashland Annual Comprehensive Financial Report Page 56 of 194 Notes to the Basic Financial Statements adopted a minimum fund balance policy. Financial Management Policies were updated and approved in May 2023. The targets for fund balances are generally a function of estimated average annual expenditures of the prior three years and are intended to help maintain financial viability of each fund. They vary based on how susceptible a fund is to revenue fluctuations and based on the riskiness of the activities in each different fund. 10. Deferred Outflows/Inflow of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflow of resources. This separate financial statement element represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. 11. Leases and Software Based Information Technology Arrangements As a lessor, the City recognizes lease contracts or equivalents that have a term exceeding one year and the cumulative future receipts on the contract exceed $25,000. The City uses the same interest rate it charges to lessee as the discount rate or that is implicit in the contract to the lessee. Short-term lease receipts and variable lease receipts not included in the measurement of the lease receivable are recognized as income when earned. As a lessee, the City recognizes lease contracts or equivalents (including Subscription Based Information Technology Arrangements) that have a term exceeding one year and the cumulative future payments on the contract exceed $25,000. The City uses a discount rate that is explicitly stated or implicit in the contract. When a readily determinable discount rate is not available, the discount rate is determined using the City's incremental borrowing rate at start of the lease for a similar asset type and term length to the contract. Short-term lease payments are expensed when incurred. 12. Accounting and Reporting Changes New Pronouncements During the fiscal year ended June 30, 2025, the following Governmental Accounting Standards (GASB) pronouncements were effective and implemented by the City: GASB Statement No. 101, "Compensated Absences" This statement establishes new standards for accounting and financial reporting for compensated absences, which include vacation leave, sick leave and other types of paid time off. The City evaluated the impact of this implementation on beginning net position. No adjustment to beginning net position was required. GASB Statement No. 102, "Certain Risk Disclosures" This statement establishes new standards for disclosing essential information about risks related to a governments vulnerabilities due to certain concentrations or constraints. No viable threats to assets or obligations were identified. 49 —City of Ashland Annual Comprehensive Financial Report Page 57 of 194 Notes to the Basic Financial Statements II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information The City has adopted a biennial budget for all funds on a basis consistent with generally accepted accounting principles for governmental funds. The City Council resolution adopting the budget and authorizing appropriations for each fund sets the level by which expenditures cannot legally exceed appropriations. Appropriations are at the department (organizational unit) level for funds with more than one department and by total personal services, materials and services, capital outlay, debt service, transfers, and contingency for those funds with only one department or function. The detail budget document, however, is required to contain more specific, detailed information for the above-mentioned expenditure categories. The City budgets debt service principal and interest on a cash basis, it is reported on the statement of changes in revenues, expenses and changes in position. Unexpected additional resources may be added to the budget through the use of a supplemental budget. The supplemental budget process requires hearings before the public, publications in newspapers, and approval by the City Council. Original and supplemental budgets may be modified only by the City Council through the use of appropriation transfers between the levels of control. In addition, Oregon Local Budget Law provides certain specific exceptions to the supplemental budget process to increase appropriations. Such transfers and increases require approval by the City Council by adoption of a resolution. Budget appropriation amounts shown in the financial statements include the original and revised budget appropriations as approved by the City Council. Appropriations are limited to a biennium budget period of 2023-2025; therefore, all spending authority of the City lapses at the end of the biennial period. • In fiscal year 2024, Council approved eight resolutions that amended the budget: Resolutions 2023-21, 2023-22, 2023-23, 2023-26, 2024-01, 2024-08, 2024-10, and 2024-16. • In fiscal year 2025, Council approved eight resolutions that amended the budget: Resolutions 2024-21, 2024-25, 2024-28, 2025-05, 2025-06, 2025-10, 2025-11 and 2025-16. Expenditures of the various funds were within authorized appropriations for the year ended June 30, 2025. Deficit Fund Equity Generally accepted accounting principles and Oregon state law requires fund disclosure of deficit fund balance/total net position. On June 30, 2025, no funds reported a deficit net position in the GAAP basis financial statements. 50 —City of Ashland Annual Comprehensive Financial Report Page 58 of 194 Notes to the Basic Financial Statements III. DETAILED NOTES ON ALL FUNDS A. Deposits and Investments Total Primary Government Petty cash $ 3,526 Deposits with financial institutions 1,008,415 Imprest Cash 120,000 Investments 78,199,775 $ 79,331,716 Governmental-unrestricted $ 78,340,477 Governmental-restricted: Cemetery Trust Fund 991,239 $ 79,331,716 1. Deposits Deposits with financial institutions include bank demand deposits. Oregon Revised Statutes require deposits to be adequately covered by federal depository insurance or deposited at an approved depository as identified by the Treasury. 2. Credit Risk Deposits There is a risk that, in the event of a bank failure, the City's deposits may not be returned. The City's deposit policy is in accordance with ORS 295. All deposits are collateralized with eligible securities in amounts determined by the Oregon State Treasury (OST). The OST's custodian, Federal Home Loan Bank of Des Moines, is the agent of the depository bank. The securities pledged are designated as subject to the Pledge Agreement between the Depository Bank, Custodian Bank and OST and are held for the benefit of the OST on behalf of the public depositors. The City's deposit policy requires that all deposits are covered by the Federal Deposit Insurance Corporation (FDIC), and/or are collateralized as required by and in compliance with ORS 295. The FDIC's standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. 3. Investments Policies officially adopted by City Council allow the City to invest in: U.S. Treasury Obligations (bills, notes and bonds), U.S. Government Agency Securities and Instrumentalities of Government Sponsored Corporations, Banker's Acceptances, Certificates of Deposit(at commercial banks that have a branch in Oregon and Savings & Loan Associations that have a branch in Oregon), State and Local Government Securities, Commercial Paper (Al, AA, P1), State of Oregon Investment Pool, and Repurchase Transactions. 51 —City of Ashland Annual Comprehensive Financial Report Page 59 of 194 Notes to the Basic Financial Statements Cash and Investments Note As of June 30, 2025, the fair value measurement at the measurement date, the City had the following investments and maturities: Investment Maturities(in months) Investment Type Fair Value Less than 3 3-17 U.S.Treasury Note $ 19,343,671 $ 6,988,080 $ 12,355,591 U.S.Treasury Bill 9,809,524 - 9,809,524 State Treasurer's Investment Pool 49,046,581 49,046,581 - $ 78,199,775 $ 56,034,661 $ 22,165,114 The Oregon Local Government Investment Pool (LGIP) is an open-ended, no-load diversified portfolio offered to any municipality, political subdivision or public corporation of the State that by law is made the custodian of, or has control of, any public funds. The Office of the State Treasurer (OST) manages the LGI P. The LGIP is commingled with other State funds in the Oregon Short-Term Fund (OSTF). The OSTF is not managed as a stable net asset value fund; therefore, the preservation of principal is not assured. The LGIP is not rated by a national rating service. Additional information about the OSTF can be obtained at www.oregon.gov/treasury. The weighted-average maturity of LGI P is less than one year. The fair value of the City's position in the pool is the same as the value of the pool shares. Interest Rate Risk As a means of limiting its exposure to fair value losses resulting from rising interest rates, the City's investment policy allows only the purchase of investments that can be held to maturity. Investments cannot be made predicated upon selling the security prior to maturity. The City limits investment maturities as follows: Under 30 days 10%minimum Under 90 days 25%minimum Under 270 days 50%minimum Under 1 year 75%minimum Under 18 months 80%minimum Under 3 years 100%minimum Oregon Revised Statutes require that investments do not exceed a maturity of 18 months, except when the local government has adopted a written investment policy that was submitted to and reviewed by the OSTFB. Credit Risk Neither the Oregon Revised Statutes nor the City's investment policy limits investments as to credit rating for securities purchased from U.S. Government Agencies. As noted above, the LGIP is unrated. Oregon Revised Statutes require Banker's Acceptances to be guaranteed by and carried on the books of, a qualified financial institution, eligible for discount by the Federal Reserve System, and issued by a qualified financial institution whose short-term letter of credit rating is rated in the highest category by one or more nationally recognized statistical rating organizations. 52 —City of Ashland Annual Comprehensive Financial Report Page 60 of 194 Notes to the Basic Financial Statements Concentration of Credit Risk To avoid incurring unreasonable risks inherent to over-investing in specific instruments or in individual financial institutions, the City's investment policy sets maximum limits on the percentage of the portfolio that can be invested in any one type of security. As of June 30, 2025, the City was in compliance with all percentage restrictions. Oregon Revised Statutes require that no more than 25 percent of the monies of local government to be invested in Bankers Acceptances of any singular qualified financial institution. Amounts in the State Treasurer's LGIP are not required by law to be collateralized. Per City policy, no more than the stated percentage of the overall portfolio will be invested in each of the following categories of securities: U.S. Treasury Obligations 100% U.S. Government Agency Securities&Instrumentalities of Government Sponsored Corp. 100% Bankers'Acceptances 50% Certificates of Deposit 35% State and Local Government Securities 35% Repurchase Transactions 25% Commercial Paper(AA,Al, P1) 10% State of Oregon Investment Pool Securities 100% Fair Value of Investments The City of Ashland measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles (GAAP). These guidelines recognize a three- tiered fair value hierarchy as follows: • Level 1: Quoted prices for identical investments in active markets; • Level 2: Observable inputs other than those in Level 1; and • Level 3: Unobservable inputs Debt and equity securities classified as Level 1 are valued using prices quoted in active markets for those securities. Debt and equity securities classified in Level 2 are valued using the following approaches: debt securities are normally valued based on price data obtained from observed transactions and market price quotations from broker dealers and/or pricing vendors; equity securities are valued using fair value per share for each fund. Certificates of deposit classified in Level 2 are valued using broker quotes that utilize observable market inputs. Securities classified as Level 3 have limited trade information, these securities are priced or using the last trade price or estimated using recent trade prices. At June 30, 2025, the City of Ashland had the following recurring fair value measurements: Fair Value Measurement Cost Investments by Fair Value Level June 30,2025 Level 1 Level 2 Level 3 Measurement U.S. Treasury obligations $ 29,153,195 $ 29,153,195 $ $ $ - State Treasurer's Investment Pool 49,046,581 49,046,581 49,046,581 $ 78,199,775 $ 78,199,775 $ $ $ 49,046,581 53 —City of Ashland Annual Comprehensive Financial Report Page 61 of 194 Notes to the Basic Financial Statements B. Receivables As of year-end, receivables for the City's individual major funds and non-major, internal service in aggregate, including the applicable allowances for uncollectable accounts, are as follows: Total Total Governmental Business-Type Current Receivable Activities Activities Accounts, Net Property Tax $ 551,895 $ $ 551,895 Business Licenses 1,306 1,306 Ambulance Billing 1,972,411 1,972,411 Utility Receivables, net 1,238,583 3,069,149 4,307,732 Grant Receivables 365,716 13,264 378,979 Misc. Receivables 2,094,768 772,845 2,867,613 Transient Lodging Receivables 1,037,294 - 1,037,294 Total current 7,261,974 3,855,258 11,117,231 Long-Term Receivable Rehabilitation Loans 54,452 - 54,452 Special Assessments - - - Conservation Loans - 53,587 53,587 Notes Receivable 6,142 - 6,142 SDC receivable 40,829 - 40,829 Total long-term 101,424 53,587 155,011 Total $ 7,363,398 $ 3,908,845 $ 11,272,242 In fiscal year 2025, the City recognized a$424,447 allowance for doubtful accounts across governmental funds and a $2,288,626 across the business-type funds. Governmental funds report unearned and unavailable revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of unavailable revenue and unearned revenue reported in all funds were as shown on the table below as follows: Other Total Governmental Governmental Governmental Activities: General Fund Funds Funds Property Taxes $ 494,098 $ 7,515 $ 501,613 Leases - 172,529 172,529 Deferred Rehab and SDC's - 95,281 95,281 Business Licenses 180,527 - 180,527 Transient Lodging Tax 1,037,294 1,037,294 Ambulance Services 1,084,826 - 1,084,826 Total Unearned Revenue $ 2,796,745 $ 275,3 55 $ 3,072,070 54—City of Ashland Annual Comprehensive Financial Report Page 62 of 194 Notes to the Basic Financial Statements C. Capital Assets Capital asset activity for the year ended June 30, 2025, was as follows: Balance Additions Retirements Transfers Balance June 30,2024 and Reclasses and Reclasses June 30,2025 Governmental Activities: Capital assets,not being depreciated Land $ 15,993,654 $ - $ $ - $ 15,993,654 Construction in progress 9,886,396 3,702,450 (4,769,573) 8,819,273 Total capital assets,not being depreciated or amortized 25,880,051 3,702,450 (4,769,573) 24,812,928 Lease assets Equipment 515,630 16,054 5,569 526,115 Buildings 109,918 360,077 - 469,995 Subscription based asset 717,698 - - 717,698 Buildings 48,560,051 370,822 - 48,930,873 Infrastructure 65,258,959 - - 4,769,573 70,028,532 Machinery and equipment 28,310,883 3,418,193 547,593 - 31,181,483 Total capital assets,being depreciated and amortized 143,473,139 4,165,146 553,162 4,769,573 151,854,696 Less accumulated amortization and depreciation for: Lease assets Equipment (102,669) (105,218) (5,569) - (202,318) Buildings (26,757) (89,020) (115,777) Subscription assets (109,648) (119,616) (229,264) Buildings (24,193,040) (1,238,302) (25,431,342) Infrastructure (46,371,225) (1,490,461) (47,861,686) Machinery and equipment (20,511,312) (1,970,008) (547,593) (21,933,727) Total accumulated depreciation and amortization (91,314,651) (5,012,624) (553,162) (95,774,113) Total capital assets being depreciated and amortized,net 52,158,488 (847,478) 4,769,573 56,080,583 Governmental activities capital assets,net $ 78,038,539 $ 2,854,972 $ $ - $ 80,893,510 55 —City of Ashland Annual Comprehensive Financial Report Page 63 of 194 Notes to the Basic Financial Statements Balance Additions Retirements Balance June 30,2024 and Reclasses and Reclasses June 30,2025 Business-type activities: Capital assets, not being depreciated Land $ 3,106,925 $ - $ $ 3,106,925 Construction in progress 18,292,923 2,944,329 21,237,253 Total capital assets, not being depreciated 21,399,848 2,944,329 24,344,178 Buildings 22,099,664 - 22,099,664 Infrastructure 99,447,535 - 99,447,535 Machinery and equipment 2,835,059 60,939 32,030 2,863,968 Total capital assets, being depreciated 124,382,258 60,939 32,030 124,411,167 Less accumulated depreciation: Buildings (10,350,025) (430,100) - (10,780,124) Infrastructure (62,333,713) (1,718,717) (64,052,430) Machinery and equipment (1,540,752) (124,434) (32,030) (1,633,156) Total accumulated depreciation (74,224,489) (2,273,251) (32,030) (76,465,710) Total capital assets being depreciated, net 50,157,769 (2,212,312) 47,945,457 Business-type activities capital assets, net $ 71,557,617 $ 732,017 $ $ 72,289,634 Depreciation and amortization expense for the governmental activities as charged to functions/programs of the primary government is as follows: General government $ 2,366,100 Public safety 398,961 Highways and streets 1,022,895 Parks and Rec 1,224,668 Total $ 5,012,624 Depreciation expense for the business type activities as charged to functions/programs of the primary government is as follows: Water Fund $ 696,226 Wastewater Fund 1,132,250 Stormwater Fund 51,933 Electric Fund 337,982 Telecommunication Fund 54,860 Total $ 2,273,251 56 —City of Ashland Annual Comprehensive Financial Report Page 64 of 194 Notes to the Basic Financial Statements Construction Commitments The City has active construction projects as of June 30, 2025. The projects include construction of various infrastructure improvements and additions to the City's parks, transportation, storm water, water, wastewater, and telecommunications systems. The City had approximately $5.9 million remaining in construction contract commitments under construction contracts as of June 30, 2025. D. Interfund Receivable, Payable and Transfers Internal transfers are budgeted and recorded to show legal and operational commitments between funds such as cost sharing or debt service. Interfund loans are used to assure adequate fund balances in funds where operations do not currently (on a short-term basis) generate enough support through revenues. Interfund transfer activity in fiscal year 2025 was as follows: Transfer to Governmental Funds Nonmajor Transfer From General Fund Governmental Total Governmental Funds: General Fund $ - $ 1,346,243 $ 1,346,243 Nonmajor Funds 469,656 185,643 655,299 Health Benefits Fund 2,225,546 - 2,225,546 Business-type Activities: Water Fund 50,000 - 50,000 Total $ 2,745,202 $ 1,531,886 $ 4,277,088 E. Long-term Debt 1. Unbonded Long-term Debt (Notes and Contracts) The City has five loan agreements for financing: • Garfield Park — In 2016 the City borrowed $870,000 for upgrade for the water park within Garfield Park. The debt is funded with food and beverage tax. • Biscoe School — In 2018 the City agreed to purchase Biscoe School from the Ashland School District for $1,540,000 at zero percent interest. The debt is funded by building lease payments. • Briscoe Park — In 2018 the City agreed to purchase Biscoe Park from the Ashland School District for $500,000 at zero percent interest. The debt is funded with food and beverage tax. • Emergency Shelter—The City purchased a shelter as part of a state plan to assist unhoused individuals and facilitate their transition to permanent housing. The state provided $1 million in funding to purchase the shelter, and the City entered a $600,000 loan at 3.75% interest to finance the remaining cost. 57 —City of Ashland Annual Comprehensive Financial Report Page 65 of 194 Notes to the Basic Financial Statements • The B24001 Street loan was issued for the Ashland Street Overlay project. The estimated loan amount was $4,839,751. Of that, $4,028,789 was drawn down in fiscal year 2024, the first year of the project. In fiscal year 2025, another $536,427 was drawn down for a total drawdown of$4,565,216. This debt is backed by food and beverage tax, transportation utility fees, and state shared revenue from gasoline tax. No loan payments will be made until the project is complete. Loan agreements outstanding at year end are as follows: Original Interest Amount Purpose Activity Amount Rates Outstanding Upgrade to Garfield Water Park Government $ 870,000 2.12% $ 48,000 Purchase of Briscoe School Buidling Government 1,540,000 0.00% 660,000 Purchase of Briscoe School Yard Government 500,000 0.00% 100,000 Purchase of Homeless Shelter Government 600,000 3.75% 565,336 OBDD B24001 -Streets Government 4,565,216 3.05% 4,565,216 $ 5,938,552 Estimated loan requirement to maturity are as follows: Year ending Governmental Activities June 30, Principal Interest 2026 $ 229,861 $ 21,426 2027 182,695 20,083 2028 133,561 19,217 2029 134,460 18,318 2030 135,393 17,385 2031-2035 252,257 71,632 2036-2040 171,545 42,345 2041-2045 133,563 9,030 Undetermined 4,565,216 - $ 5,938,552 $ 219,436 2. General Obligation Bonds The City issues general obligation bonds (GO) to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business- type activities over the previous fiscal years. No new general obligation debt was issued in fiscal year 2025. 58 —City of Ashland Annual Comprehensive Financial Report Page 66 of 194 Notes to the Basic Financial Statements The following schedule shows the debt service requirements for GO bonds as of June 30, 2025: Original Interest Amount Purpose Activity Amount Rates Outstanding 2011 Fire station Government activities $ 2,960,000 2.0-4.00% $ 1,080,000 2013 GO Bonds New Construction Government activities $ 1,520,000 2-2.5% 345,000 2013 GO Bonds New Construction Business-type activities $ 3,245,000 2-2.5% 740,000 $ 2,165,000 Government Activities: • The residents of Ashland authorized by vote in May 2011 $2,960,000 in debt for the construction of Fire Station #2. This debt is being paid by property tax. • In 2013 a new debt of$ 4,765,000 as full faith and credit bonds was issued for 15 years; this debt was split between Governmental and Business-type activities. The Street Fund & Parks operations received $1,520,000 of the total. This debt is paid by user fees and food and beverage tax. Business-Type Activities: • In 2013, a new debt of $ 4,765,000 as Full Faith and credit bonds was issued for 15 years, this debt was split between Governmental and Business-type activities. The Water, Wastewater and Stormwater funds received $3,245,000 for construction projects. This debt is paid by user fees. Future maturities of GO bond principal and interest as of June 30, 2025, are as follows: Year Ending 2011 GO Bonds Fire Station#2 2013 GO Bonds New Construction Total June 30, Principal Interest Principal Interest Principal Interest 2026 $ 165,000 $ 40,338 $ 350,000 $ 21,863 $ 515,000 $ 62,201 2027 160,000 34,975 360,000 13,650 520,000 48,625 2028 165,000 29,375 375,000 4,688 540,000 34,063 2029 190,000 23,600 - - 190,000 23,600 2030 195,000 16,000 195,000 16,000 2031 205,000 8,200 - - 205,000 8,200 $ 1,080,000 $ 152,488 $ 1,085,000 $ 40,201 $ 2,165,000 $ 192,689 59 -City of Ashland Annual Comprehensive Financial Report Page 67 of 194 Notes to the Basic Financial Statements 3. Pledged Revenue Debt The City also issues debt on which it pledges income derived from the acquired or constructed assets to pay debt service. Original Interest Amount Loan Agreement Activity Amount Rates Outstanding IFA S14005-Water Business-type activities 3,515,200 1.00% $ 2,942,491 DEQ R11751 -Wastewater Business-type activities 1,645,280 1.00% 937,080 Medford Water Commission Business-type activities 2,358,076 3.42% 1,318,725 IFA S16021 -Water Business-type activities 4,700,759 1.00% 3,443,633 DEQ R11754-Wastewater Business-type activities 1.00% 2,814,646 DEQ R11755-Wastewater Business-type activities 1.00% 4,793,225 $ 16,249,800 • The IFA#S14005 loan was for three projects: Talent/Ashland/Phoenix Water Intertie System (TAP), the Terrace St Pump Station and the Park Estates Pump Station. This loan received $950,000 in principal forgiveness, which was recognized in 2019. Water revenue is pledged for debt payments. • The DEQ #R11751 loan was for the Wastewater Treatment Membrane System upgrade in the amount of$1,645,280. Wastewater revenue is pledged for debt payments. • The Medford Water Commission loan was for the City's portion of receiving services for TAP. This debt is being paid by revenue from system development charges. • The IFA #S16021 loan was for the design phase of the City's new Water Treatment Plant. This loan received $975,101 in principal forgiveness, which was recognized in fiscal year 2024. Water revenue is pledge for debt payments and the first payment was made is fiscal year 2025. • Loan DEQ #R11754 is for the Wastewater Riparian Restoration project. This loan was increased in fiscal year 2024 to $3,616,900. To date, the City has received $2,814,646 as a drawdown. No loan payments will be made until the project is complete. • Loan DEQ #R11755 is for the Wastewater Outfall Relocation project in the amount of $4,800,000. To date, $4,793,225 has been received as a drawdown. No loan payments will be made until the project is complete. For the three loans that are not currently being paid, the City of Ashland has signed agreements in the amount of$13,256,651 as of June 30, 2025. Of that amount, the City drew down a total of$1,042,229 in fiscal year 2025. Signed Balance Balance Loan Agreement Activity Agreement 30-Jun-24 Drawdowns Reclass 30-Jun-25 B24001-Street Governmental activities $ 4,839,751 $ 4,028,789 $ 536,427 $ $ 4,565,216 DEQ R11754-Wastewater Business-type activities 3,616,900 2,316,789 497,857 2,814,646 DEQ R11755-Wastewater Business-type activities 4,800,000 4,785,280 7,945 4,793,225 $ 13,256,651 $ 11,130,858 $ 1,042,229 $ $ 12,173,087 60 —City of Ashland Annual Comprehensive Financial Report Page 68 of 194 Notes to the Basic Financial Statements Estimated pledged revenue debt service requirements to maturity are as follows: Year Ending June 30, Principal Interest 2026 $ 810,082 $ 288,548 2027 933,293 176,219 2028 945,666 162,717 2029 958,268 148,974 2030 971,105 137,080 2031-2035 4,417,095 459,781 2036-2040 1,856,768 228,892 2041-2045 1,951,628 101,838 2046-2050 591,247 15,780 Undetermined 2,814,646 - $ 16,249,799 $ 1,719,827 Moody's Investors Services assigned an "Aa3" rating to both the Tax-Exempt Bonds and the Taxable Bonds. 4. Lease and SBITA Liabilities As of June 30, 2025, the principal and interest requirements for lease and SBITA liabilities to maturity are as follows: Year Ending Lease Liability SBITA Liability June 30, Principal Interest Principal Interest 2026 $ 185,136 $ 10,474 $ 110,517 $ 15,573 2027 173,690 7,011 121,231 10,982 2028 167,635 3,299 132,679 5,957 2029 74,810 1,811 121,639 469 2030 16,746 1,039 - - 2031-2033 11,869 224 $ 629,886 $ 23,858 $ 486,066 $ 32,981 61 -City of Ashland Annual Comprehensive Financial Report Page 69 of 194 Notes to the Basic Financial Statements 5. Changes in Long-term Liabilities Long-term liability activity for the year ended June 30, 2025, was as follows: Beginning Additions and Ending Due within Balance Adjustments Reductions Balance One Year Governmental Activities General obligation bonds $ 2,940,000 $ - $ 1,515,000 $ 1,425,000 $ 275,000 Contract Payable 4,028,789 536,427 - 4,565,216 - Notes and Contracts 1,649,393 - 276,058 1,373,336 229,861 Lease liability 485,290 376,131 231,534 629,886 185,136 SBITA liability 609,827 - 123,761 486,066 110,517 Total Government Activities $ 9,713,299 $ 912,558 $ 2,146,353 $ 8,479,503 $ 800,515 Business-type Activities General obligation $ 970,000 $ - $ 230,000 $ 740,000 $ 240,000 Pledged revenue debt 16,359,393 505,802 615,395 16,249,800 810,082 Total Business-type Activities $ 17,329,393 $ 505,802 $ 845,395 $ 16,989,800 $ 1,050,082 The "Due within One Year" balance is net of premiums and discounts. F. Compensated Absences Compensated Absences increased approximately$1.1 million in fiscal year 2025. This net increase was due to GASB Statement 101 and the new methodology which includes an approximation of sick leave earned and expected to be taken in future years, whereas in the past, it has been mainly vacation leave and comp leave earned. The balances of the compensated absences payable in the governmental and business-type are as follows: Beginning Ending Due within Balance Net Changes Balance a Year Governmental Activities: $ 1,745,339 $ 956,203 $ 2,701,541 $ 675,385 Business-type Activities: 450,296 142,716 593,012 148,253 Total compensated absences payable $ 2,195,634 1,098,919 3,294,553 823,638 62 -City of Ashland Annual Comprehensive Financial Report Page 70 of 194 Notes to the Basic Financial Statements IV. OTHER INFORMATION A. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City purchases insurance policies from commercial carriers and pays annual premiums for the following coverages: General Liability in the amount of $5,000,000 per occurrence and $15,000,000 in the aggregate; Auto Liability in the amount of $5,000,000 per occurrence; Commercial Property, including buildings and contents of up to $600,000,000 (subject to all loss or damages covered by the Trust in any one year) which includes real, personal, and inland marine property coverage as per current schedule; Cyber Liability coverage up to $100,000; Airport liability in the amount of $4,000,000; Flood Insurance coverage up to $10,000,000; Earthquake Insurance coverage up to $10,000,000; and Pollution Liability in the amount of $1,000,000 per occurrence and $2,000,000 in the aggregate. The City carries Crime and Employee Dishonesty coverage for claims up to $1,000,000 and public official bonds in the amount of$50,000 covering the Finance Director and City Manager. Additionally, the City carries a $1,000,000 policy for workers' compensation. Employee health, life and disability coverages are also maintained. There has been no significant reduction in insurance coverage from the prior year. Settled claims from these risks have not exceeded commercial insurance limits in any of the past three fiscal years. An Insurance Division in the City's Internal Service Fund accounts for the City's risk management activities. All funds of the City participate in the Insurance Division. Amounts payable to the Insurance Division are based on cost estimates necessary to pay premiums, and if applicable, prior and current year claims and to establish a reserve for catastrophic losses. Workers' compensation is insured under a premium plan where premiums are accrued based on payroll and an experience mod rating. 63 —City of Ashland Annual Comprehensive Financial Report Page 71 of 194 Notes to the Basic Financial Statements B. Other Post Employment Benefits The City's aggregate Other Post Employment Benefit (OPEB) related assets, deferred outflows of resources, liabilities, deferred inflows of resources, and expenses for the year ended June 30, 2025, for all OPEB plans are as follows: PERS City Plan RHIA Total Net OPEB asset $ - 558,792 $ 558,792 Subtotal of deferred outflows of Resources $ 964,423 20,955 $ 985,378 Total OPEB liability $ 4,003,522 - $ 4,003,522 Subtotal of deferred inflows $ 414,103 18,945 $ 433,048 OPEB expense(income) $ 400,668 (25,362) $ 375,306 City Health Insurance Subsidy The post-employment Health Insurance Subsidy is administrated by the City of Ashland. The City has elected to use the project Unit Credit cost method. Plan Description - The City operates a single-employer retiree benefit plan that provides post- employment health, dental, vision and life insurance benefits to eligible employees and their spouses. There are active and retired members in the plan. Benefits and eligibility for members are established through collective bargaining agreements. The City's post-retirement healthcare plan was established in accordance with Oregon Revised Statutes (ORS) 243.303. ORS stipulated that for the purpose of establishing healthcare premiums, the rate must be based on all plan members, including both active employees and retirees. The difference between retiree claims cost (which is generally higher in comparison to all plan members because of the effect of age) and the amount of retiree healthcare premiums represents the City's implicit employer contribution. The City did not establish an irrevocable trust (or equivalent arrangement) to account for the plan. Funding Policy — The benefits from this program are paid by the retired employees on a self-pay basis and the required contribution is based on projected pay-as-you go financing requirements. There is no obligation on the part of the City to fund these benefits in advance. Annual OPEB Cost and Total OPEB Liability- The City's annual Other Post Employment Benefit(OPEB) cost is calculated based on the annual required contribution (ARC) of the employer and an amount actuarially determined in accordance with the parameters of GASB 75. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. Actuarial Methods and Assumptions — Under GASB 75, unfunded plans must use a discount rate that reflects a 20-year tax-exempt municipal bond yield or index rate. The assumptions used reflect the Bond Buyer 20-Year General Obligation Bond Index. The discount rate in effect for June 30, 2025, reporting date is 3.93%. In future years, the medical and vision cost trend assumes increases ranging from 5% 64—City of Ashland Annual Comprehensive Financial Report Page 72 of 194 Notes to the Basic Financial Statements to 7%. The demographic assumptions, such as mortality rates, disability incidence rates, retirement rates and withdrawal rates, are the same as those used by Oregon PIERS for cities. Changes in total Net OPEB Liability/(Asset): Total OPEB Liability/(Assets)June 30, 2024 $ 3,685,572 Chances: Service Cost 138,111 Interest on total OPEB liability 135,183 Changes to benefit term - Differences between expected and actual experience - Changes of economic/demographic gains 27,675 Changes of assumptions or other input 259,221 Benefit Payments (242,240) Net change for the year 317,950 Total OPEB Liability/(Assets), June 30, 2025 $ 4,003,522 As of June 30, 2025, the City reported deferred inflows and outflows of resources related to OPEB from the following sources: Deferred Outflow Deferred Inflow of Resources of Resources Difference between expected and actual experience $ 358,618 $ Changes in assumptions 316,436 (414,103) Subtotal-Amortized Deferrals(below) 675,054 (414,103) City Contributions subsequent to measurement date 289,369 Net Deferred outflow(inflow)of resources $ 964,423 $ (414,102) Contributions subsequent to the measurement date will be used to reduce the total OPEB liability on June 30, 2026. Other amounts reported as deferred inflows of resources related to OPEB will be recognized in OPEB expenses as follows: Year ending June 30, Amount 2026 $ 128,656 2027 54,954 2028 16,154 2029 (1,352) 2030 (3,351) Thereafter 65,890 Total $ 260,951 65 —City of Ashland Annual Comprehensive Financial Report Page 73 of 194 Notes to the Basic Financial Statements The following presents the total OPEB Liability/(Assets) of the City, as well as what the City's total OPEB Liability/(Assets) would be if it were calculated using a discount rate that is one-percentage-point lower or one-percentage-point higher. 1% Decrease Discounted Rate 1% Increase 2.93% 3.93% 4.93% City's Total OPEB Liability $ 4,358,279 $ 4,003,522 $ 3,687,431 The following presents the total OPEB Liability/(Asset) of the City, as well as what the City's total OPEB Liability/(Assets)would be if it were calculated using health care cost trend rates that are one-percentage- point lower or one percent-point higher than the current health care trend rates. Healthcare Healthcare Healthcare Cost Trend Cost Trend Cost Trend Rates(5%) Rates(6%) Rates(7%) City's proportionate share of the Total OPEB Liability $ 3,744,925 $ 4,003,522 $ 4,305,005 Retirement Health Insurance Account Plan Description: As a member of Oregon Public Employees Retirement System (OPERS) the City contributes to the Retirement Health Insurance Account (RHIA) for each of its eligible employees. RHIA is a cost-sharing multiple-employer defined benefit other postemployment benefit plan administered by OPERS. RHIA pays a monthly contribution toward the cost of Medicare companion health insurance premiums of eligible retirees. Oregon Revised Statute (ORS) 238.420 established this trust fund. Authority to establish and amend the benefit provisions of RHIA reside with the Oregon Legislature. The plan is closed to new entrants after January 1, 2004. OPERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to Oregon Public Employees Retirement System, PO Box 23700, Tigard, OR 97281-3700. Funding Policy: Because RHIA was created by enabling legislation (ORS 238.420), contribution requirements of the plan members and the participating employers were established and may be amended only by the Oregon Legislature. ORS require that an amount equal to $60 dollars or the total monthly cost of Medicare companion health insurance premiums coverage, whichever is less, shall be paid from the Retirement Health Insurance Account established by the employer, and any monthly cost in excess of $60 dollars shall be paid by the eligible retired member in the manner provided in ORS 238.410. To be eligible to receive this monthly payment toward the premium cost the member must: (1) have eight years or more of qualifying service in OPERS at the time of retirement or receive a disability allowance as if the member had eight years or more of creditable service in OPERS, (2) receive both Medicare Parts A and B coverage, and (3) enroll in an OPERS-sponsored health plan. A surviving spouse or dependent of a 66 —City of Ashland Annual Comprehensive Financial Report Page 74 of 194 Notes to the Basic Financial Statements deceased OPERS retiree who was eligible to receive the subsidy is eligible to receive the subsidy if he or she (1) is receiving a retirement benefit or allowance from OPERS or (2) was insured at the time the member died and the member retired before May 1, 1991. Participating cities are contractually required to contribute to RHIA at a rate assessed each year by OPERS, and the City currently contributes 0.05 of annual covered OPERS payroll and nothing for OPSRP payroll under a contractual requirement. The OPERS Board of Trustees sets the employer contribution rates based on the annual required contribution of the employers (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 74. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding excess) of the plan over a period not to exceed thirty years. The City was not required to contribute to RHIA during year ended June 30, 2025. As of the measurement date of June 30, 2024, the City's proportion was 0.14 percent. As of June 30, 2025, the City reported deferred inflows and outflows of resources related to RHIA from the following sources: Deferred Outflow Deferred Inflow of Resources of Resources Difference between expected and actual experience $ $ (10,929) Changes in assumptions (7,068) Net difference between projected and actual earnings on OPEB plan investments 15,778 - Net changes in proportionate share 5,177 (948) Net Deferred outflow(inflow)of resources $ 20,955 $ (18,945) Amounts reported as deferred outflows or inflow of resources related to pension will be recognized in pension expense as follows: Year ending June 30, Amount 2026 (27,360) 2027 19,012 2028 8,536 2029 1,822 Total $ 2,010 The following presents the City's proportionate share of the net pension liability calculated using the discount rate of 6.90 percent, 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 one-percentage-point lower (5.90 percent) or one-percentage-point higher (7.90 percent) than the current rate. Decrease Rate Increase (5.9%) (6.9%) (7.9%) City's proportionate share of the net RHIA liability(asset) $ (517,272) $ (558,792) $ (594,542) 67 —City of Ashland Annual Comprehensive Financial Report Page 75 of 194 Notes to the Basic Financial Statements C. Employee Retirement System and Pension Plan Plan Description —The Oregon Public Employees Retirement System (PERS) consists of a single cost- sharing multiple-employer defined benefit plan. All benefits of the system are established by the legislature pursuant to Oregon Revised Statute(ORS) Chapters 238 and 238A. Oregon PERS produces an independently audited Annual Comprehensive Financial Report which can be found at https://www.oregon.gov/pers/Pages/Financials/Actuarial-Financial-information.aspx a. PERS Pension (Chapter 238). The ORS Chapter 238 Defined Benefit Plan is closed to new members hired on or after August 29, 2003. i. Pension Benefits. The PERS retirement allowance is payable monthly for life. It may be selected from 13 retirement benefit options. These options include survivorship benefits and lump-sum refunds. The basic benefit is based on years of service and final average salary. A percentage (2.0 percent for police and fire employees, and 1.67 percent for general service employees) is multiplied by the number of years of service and the final average salary. Benefits may also be calculated under either a formula plus annuity (for members who were contributing before August 21, 1981) or a money match computation if a greater benefits results. A member is considered vested and will be eligible at minimum retirement age for a service retirement allowance if he or she has had a contribution in each of five calendar years or has reached at least 50 years of age before ceasing employment with a participating employer (age 45 for police and fire members). General service employees may retire after reaching age 55. Police and fire members are eligible after reaching age 50. Tier 1 general service employee benefits are reduced if retirement occurs prior to age 58 with fewer than 30 years of service. Police and fire member benefits are reduced if retirement occurs prior to age 55 with fewer than 25 years of service. Tier 2 members are eligible for full benefits at age 60. The ORS Chapter 238 Defined Benefit Pension Plan is closed to new members hired on or after August 29, 2003. ii. Death Benefits. Upon the death of a non-retired member, the beneficiary receives a lump- sum refund of the member's account balance (accumulated contributions and interest). In addition, the beneficiary will receive a lump-sum payment from employer funds equal to the account balance, provided on or more of the following contributions are met: ■ member was employed by PERS employer at the time of death, ■ member died within 120 days after termination of PERS covered employment, ■ member died as a result of injury sustained while employed in a PERS-covered job, or ■ member was on an official leave of absence from a PERS-covered job at the time of death. iii. Disability Benefits. A member with 10 or more years of creditable service who becomes disabled from other than duty-connected causes may receive a non-duty disability benefit. A disability resulting from a job-incurred injury or illness qualifies a member (including PERS judge members) for disability benefits regardless of the length of PERS-covered service. Upon qualifying for either a non-duty or duty disability, service time is computed to age 58 (55 for police and fire members) when determining the monthly benefit. iv. Benefit Changes After Retirement. Members may choose to continue participation in a variable equities investment account after retiring and may experience annual benefit 68 —City of Ashland Annual Comprehensive Financial Report Page 76 of 194 Notes to the Basic Financial Statements fluctuations due to changes in the market value equity investments. Under ORS 238.360 monthly benefits are adjusted annually through cost-of-living changes. The cap on the COLA will vary based on the amount of the annual benefit. b. OPSRP Pension Program (OPSRP DB). The ORS Chapter 238A Defined Benefit Pension Program provides benefits to members hired on or after August 29, 2003. i. Pension Benefits. This portion of OPSRP provides a life pension funded by employer contributions. Benefits are calculated with the following formula for members who attain normal retirement age: Police and Fire: 1.8 percent is multiplied by the number of years of service and the final average salary. Normal retirement age for police and fire members is age 60 or age 53 with 25 years of retirement credit. To be classified as a police and fire member, the individual must have been employed continuously as a police and fire member for at least five years immediately preceding retirement. General Service: 1.5 percent is multiplied by the number of years of service and the final average salary. Normal retirement age for general service members is age 65, or age 58 with 30 years of retirement credit. A member of the pension program becomes vested on the earliest of the following dates: the date the member completes 600 hours of service in each of five calendar years, the date the member reaches normal retirement age, and, if the pension program is terminated, the date on which termination becomes effective. ii. Death Benefits. Upon the death of a non-retired member, the spouse or other person who is constitutionally required to be treated in the same manner as the spouse, receives for life 50 percent of the pension that would otherwise have been paid to the deceased member. iii. Disability Benefits. A member who has accrued 10 or more years of retirement credits before the member becomes disabled or a member who becomes disabled due to job-related injury shall receive a disability benefit of 45 percent of the member's salary determined as of the last full month of employment before the disability occurred. iv. Benefit Changes After Retirement. Under ORS 238A.210 monthly benefits are adjusted annually through cost-of-living changes. The capon the COLA will vary based on the amount of the annual benefit. Contributions — PERS funding policy provides for monthly employer contributions at actuarially determined rates. These contributions, expressed as a percentage of covered payroll, are intended to accumulate sufficient assets to pay benefits when due. The funding policy applies to the PERS Defined Benefit Plan and the Other Postemployment Benefit Plans. Employer contribution rates during the period were based on the December 31, 2021, actuarial valuation, which became effective July 1, 2023. The State of Oregon and certain schools, community colleges, and political subdivisions have made unfunded actuarial liability payments, and their rates have been reduced. Employer contributions for the year ended June 30, 2025, were $5,904,880 excluding amounts to fund employer specific liabilities. In addition, approximately $1,407,266 in employee contributions were paid or picked up by the City in fiscal 2025. As of June 30, 2025, the City reported a net pension liability of$36,631,103 for its proportionate share of the net pension liability. The pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation dated 69 —City of Ashland Annual Comprehensive Financial Report Page 77 of 194 Notes to the Basic Financial Statements December 31, 2022. 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. As of the measurement date of June 30, 2024, the City's proportion was 0.16 percent. The rates in effect for the year ended June 30, 2025, were: 1) Tier 1/Tier 2 —25.87% 2) OPSRP general services—22.66% 3) Tier 1/Tier 2 Police and Fire— 32.57% 4) OPSRP Police and Fire—27.45% Deferred Outflow Deferred Inflow of Resources of Resources Difference between expected and actual experience $ 2,170,054 $ 87,426 Changes in assumptions 3,682,903 4,718 Net difference between projected and actual earnings on pension plan investments 2,327,099 - Net changes in proportionate share 145,432 4,992,030 Difference between the City contributions and proportionate share of contributions 967,116 1,581,160 Subtotal-Amortized Deferrals(below) 9,292,604 6,665,334 City Contributions subsequent to measurement date 5,900,652 - Net Deferred outflow(inflow)of resources $ 15,193,256 $ 6,665,334 The amount of contributions subsequent to the measurement date will be included as a reduction of the net pension liability in the fiscal year ended June 30, 2025. Amounts reported as deferred outflows or inflow of resources related to pension will be recognized in pension expense as follows: Year ending June 30, Amount 2026 $ (1,537,361) 2027 2,595,571 2028 1,059,914 2029 467,705 2030 41,441 Total $ 2,627,270 Actuarial Valuations — The employer contribution rates effective July 1, 2023 through June 30, 2025, were set using the entry age normal actuarial cost method. For the Tier One/Tier Two component of the PIERS Defined Benefit Plan, this method produced an employer contribution rate consisting of (1) an amount for normal cost (estimated amount necessary to finance benefits earned by employees during the current service year), (2) an amount for the amortization unfunded actuarial accrued liabilities, which 70 —City of Ashland Annual Comprehensive Financial Report Page 78 of 194 Notes to the Basic Financial Statements are being amortized over a fixed period with new unfunded actuarial liabilities being amortized over 20 years. Valuation date December 31, 2022 Measurement date June 30, 2024 Experience Study 2022, published July 24, 2023 Actuarial cost method Entry age normal Actuarial assumptions: Inflation rate 2.40% Investment rate of return 6.90% Discount rate 6.90% Projected salary increases 3.40% Cost of living adjustments(COLA) Blend of 2.00%COLA and graded COLA(1.25%/0.15%) in accordance with Moro decision; blend based on service Morality Healthy retirees and beneficiaries: Pub-2010 Healthy Retiree, sex-distinct, generational with Unisex, Social Security Data Scale,with job category adjustmen and set-backs as described in the valuation. Active Member: Pub-2010 Employees, sex-distinct, generational with Unisex, Social Security Data Scale,with job category adjustmen and set-backs as described in the valuation. Disable retirees: Pub-2010 Disabled Retirees,sex-distinct, generation with Unisex, Social Security Data Scale,with job category adjustments and set-backs as described in the valuation. 71 —City of Ashland Annual Comprehensive Financial Report Page 79 of 194 Notes to the Basic Financial Statements For the OPSRP Pension Program component of the PERS Defined Benefit Plan, this method produced an employer rate consisting of(a) an amount for normal cost(the estimated amount necessary to finance benefits earned by the employees during the current service year), (b) an actuarially determined amount for funding a disability benefit component, and (c) an amount for the amortization of unfunded actuarial accrued liabilities, which are being amortized over a fixed period with new unfunded actuarial accrued liabilities being amortized over 16 years. Actuarial Methods and Assumptions: Actuarial valuations of an ongoing plan involve estimates of value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. Experience studies are performed as of December 31 of even numbered years. The method and assumptions shown are based on a 2022 Experience Study. Asset Class Target Allocation Cash 0.0% Debt Securities 25.0% Public Equity 27.5% Private Equity 20.0% Real Estate 12.5% Real Assets 7.5% Diversifying Strategies 7.5% Opportunity' 0.0% Total 100.0% 'Opportmty has no strategic target as investments are only pursued on an opportunistic or episodic basis. Long-Term Expected Rate of Return: To develop an analytical basis for the selection of the long-term expected rate of return assumption, the PERS Board reviewed long-term assumptions developed by both Milliman's capital market assumptions team and the Oregon Investment Council's (OIC) investment advisors. The table on the following page shows Milliman's assumptions for each of the asset classes in which the plan was invested at that time based on the OIC long-term target asset allocation. The OIC's description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions and includes adjustment for the inflation assumption. These assumptions are not based on historical returns, but instead are based on a forward-looking capital market economic model. 72 —City of Ashland Annual Comprehensive Financial Report Page 80 of 194 Notes to the Basic Financial Statements Long-Term Expected Rate of Return 20-Year Amual Amuallized Annual Target Arithmetic Geometric Standard Asset Class Allocation Return 2 Mean Deviation Global Equity 27.50% 8.57 °% 7.07 % 17.99 % Private Equity 2550 12.89 8.83 30.00 Core Fixed Income 2500 4.59 4.50 4.22 Real Estate 1225 6.90 5.83 15.13 Master Limited Partnerships 075 9.41 6.02 27.04 Infrastructure 1 50 7.88 6.51 17.11 Hedge Fund of Funds-Multistrategy 1 25 6.81 6.27 9.04 Hedge Fund Equity- Hedge 063 7.39 6.48 12.04 Hedge Furl-Macro 562 5.44 4.83 7.49 Assumed Inflation-Mean 2.35 % 1.41 % ' Based on the OIC Statement of Investment Objectives and Policy Framework for the Oregon Public Employees Retirement Fund, including revisions adopted at the OIC meeting on January 25, 2023. The arithmetic mean is a component that goes into calculating the geometric mean. Expected rates of return are presented using the geometric mean, which the Board uses in setting the discount rate Discount Rate - The discount rate used to measure the total pension liability was 6.9 percent for the Defined Benefit Pension Plan. The projection of cash flows used to determine the discount rate assumed that contributions from the plan members and those of the contributing employers are made at the contractually required rates, as actuarially determined. Based on those assumptions, the pension 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 pension plan investments for the Defined Benefit Pension Plan was applied to all periods of projected benefit payments to determine the total pension liability. The following presents the City's proportionate share of the net pension liability calculated using the discount rate of 6.9 percent, 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 (5.9 percent) or 1- percentage-point higher (7.9 percent) than the current rate. Decrease Rate Increase (5.9%) (6.9%) (7.9%) City's proportionate share of the net pension liability $ 57,784,077 $ 36,631,103 $ 18,914,453 Deferred Compensation Plan A deferred compensation plan is available to employees wherein they may execute an individual agreement with the City for amounts earned by them to not be paid until a future date when certain circumstances are met. These circumstances are; termination by reason of death, disability, resignation, or retirement. Payment to the employee will be made over a period not to exceed 15 years. The deferred compensation plan is one which is authorized under IRC Section 457 and has been approved in its specifics by a private ruling from the Internal Revenue Service. The assets of the plan are held by the administrator for the sole benefit of the plan participants and are not considered assets or liabilities of the City. 73 -City of Ashland Annual Comprehensive Financial Report Page 81 of 194 Notes to the Basic Financial Statements OPSRP Individual Account Program (OPSRP IAP) Plan Description: Employees of the City are provided with pensions through OPERS. All the benefits of OPERS are established by the Oregon legislature pursuant to Oregon Revised Statute (ORS) Chapters 238 and 238A. Chapter 238 Defined Benefit Pension Plan is closed to new members hired on or after August 29, 2003. Chapter 238A created the Oregon Public Service Retirement Plan (OPSRP), which consists of the Defined Benefit Pension Program and the Individual Account Program (IAP). Membership includes public employees hired on or after August 29, 2003. PERS members retain their existing defined benefit plan accounts, but member contributions are deposited into the member's IAP account. OPSRP is part of OPERS and is administered by the OPERS Board. Pension Benefits: Participants in OPERS defined benefit pension plans also participate in their defined contribution plan. An IAP member becomes vested on the date the employee account is established or on the date the rollover account was established. If the employer makes optional employer contributions for a member, the member becomes vested on the earliest of the following dates: the date the member completes 600 hours of service in each of five calendar years, the date the member reaches normal retirement age, the date the IAP is terminated, the date the active member becomes disabled, or the date the active member dies. Upon retirement, a member of the OPSRP IAP may receive the amounts in his or her employee account, rollover account, and vested employer account as a lump-sum payment or in equal installments over a 5-, 10-, 15-, 20-year period or an anticipated life span option. Each distribution option has a $200 minimum distribution limit. Death Benefits: Upon the death of a non-retired member, the beneficiary receives in a lump sum the member's account balance, rollover account balance, and vested employer optional contribution account balance. If a retired member dies before the installment payments are completed, the beneficiary may receive the remaining installment payments or choose a lump-sum payment. Contributions: PERS has a mandatory retirement contribution from employees. However, the City pays six(6) percent of their covered payroll as a money-saving concession that was negotiated in collective bargaining agreements. The City did not make any optional contributions to member IAP accounts for the year ended June 30, 2025. E. Service Concession Agreement The City of Ashland contracts with Skinner Aviation to operate the City owned airport. Skinner Aviation has been the airport's Fixed Base Operator since 1993 and is responsible for all oversight of the airport facilities including radio control, fuel facility, aircraft maintenance, hangar rental collection, flight training and facility maintenance. They collect the income for the City and remit the City's revenue on a monthly basis. They keep 25% of the monthly revenue and receive credit for Water and Garbage services. No upfront monies were exchanged by either party when the contract was executed, so thus there is not an asset or liability to recognize in the financial statements. 74—City of Ashland Annual Comprehensive Financial Report Page 82 of 194 Notes to the Basic Financial Statements F. Tax Abatements As of June 30, 2025, City of Ashland provides tax abatements through one significant program: Enterprise Zone. Enterprise Zone (ORS 285C.175): The Oregon Enterprise Zone program is a State of Oregon economic development program, that allows for property tax exemptions for up to five years. In exchange for receiving property tax exemption, participating firms are required to meet the program requirements set by state statute and the local sponsor. The Enterprise Zone program allows industrial firms that will make a substantial new capital investment, a waiver of 100% of the amount of real property taxes attributable to the new investment for a five-year period after completion. Land, existing machinery, or equipment is not tax exempt; therefore, there is no loss of current property tax levies to local taxing jurisdiction. For the fiscal year ended June 30, 2025, City of Ashland abated property taxes under this program were $52,758. G. Contingency The City is involved in various claims and legal matters relating to its operations which have all been tended to and are either being adjusted by the City's liability carrier or are being defended by attorneys retained by the City's liability carrier. The status of these matters is uncertain at this time. Any potential loss is also uncertain. H. Leases The City is a lessor for the noncancellable lease of office and building space with lease terms through 2026. For the year ending June 30, 2025, the City recognized $173,564 in lease revenue in released from Deferred Inflows of Resources related to the office lease on the Statement of Changes in Net Position. The City recognized interest revenue of $0 for the year ending June 30, 2025. No inflows of resources were recognized in the year related to termination penalties or residual value guarantees during the fiscal year. The balance of the governmental activities lease receivable was $172,530 as of June 30, 2025. 75 —City of Ashland Annual Comprehensive Financial Report Page 83 of 194 REQUIRED SUPPLEMENTARY INFORMATION 76 —City of Ashland Annual Comprehensive Financial Report Page 84 of 194 rn 4- 0 LO co Clt 0 0 -D -c �I'Do O o 0) MM m n co <C (D c0 (D N M N (D ^ O (6 EA fA EH � O M M �fJ N c0 O o N o O 1 Cl! m-1 N � fJ O [O N � � M � - O O V �fJ N O OD (D 0 p N EA fA EH N U O O W M M m E N M N Q D_ EA fA EH N c0 O M O O m N f0 � N ' ' N LfJ V O �fJ j N M N(D f0 M N �fJ M N c0 M Y) p M f U O EA fA EH � (6 LL Y) LC - (D V O O N a O � V O O � .L-- 0 N O N O V N y N EA fA EH D_ N 0 lz = m m N Lc a M M cc N O M m '� . Z co d V W M V N N W E co N M O V N f� V 0 m V L E O V LU LU O p 'a M o — Q 0 Q o E N LU o �+ Q N C = N a M M m o L Co Q L O M M N �, �� Co 0 A LL y 0 °) a) _ 0 T 3 N Q (D N N E Y) O lfN'J N ` A Re U LT tm O Y) - - m N CM 0 Q NN r yTi LL M � � �y t O M V N - O •V U o _ N Q0 J Fsa ua n o LL a f+ to o E U N t Q L y - O O ^n O N O w O` E OU PL 6 > O m ` N EQ - LU m 0 o ID O a_ 0E o U M o 0 �a d E E U N O 9O O n Q O E Q R X o N N _ O N 6 p E Yi d 0 0 N LC E O O N C N E O M U .L-- N Q O v E N O m o E y 2� O O d Q U O G 0, to .-- �` N N N O nmn�� •} « N - - N (6 E t « O N p V R 0 O O U O O Q O N .Q O N N N N O m O .U Cn N Cn Cn'= N m E Q N d N N N O C LU O E N N Ii O N (/�j - 0 0 0 U L O t6 N ~ N O R U m N s -O H U Z H ii Cg in z Required Supplementary Information Required Supplementary Information For the year ended June 30, 2025 Schedule Of The Proportionate Share Of The Net OPEB Asset - PERS (a) (b) (b/c) Plan fiduciary Employer's Employer's (c) NPL as a net position as Year proportion of proportionate share percentage a percentage of Ended the net pension of the net pension Covered of covered the total pension June 30, liability(NPL) liability(NPL) payroll payroll liability 2025 0.1648% $ (558,792) $ 21,077,554 (2.7) % 31.0 % 2024 0.1927% (504,705) 19,418,399 (2.6) 62.6 2023 0.1914% (535,342) 18,453,012 (2.9) 60.9 2022 0.2048% (684,250) 17,013,505 (4.0) 66.3 2021 0.2105% (231,380) 17,460,741 (1.3) 68.8 2020 0.2046% (280,916) 17,561,324 (1.6) 80.2 Schedule of Contributions Contributions in Contributions Year Statutorily relation to the Contribution as a percent Ended required statutorily required deficiency Covered of covered June 30, contribution contribution (excess) payroll payroll 2025 $ $ $ $ 23,288,522 % 2024 - 21,077,554 2023 2,778 2,778 19,418,399 0.014 2022 3,554 3,554 18,453,012 0.019 2021 4,100 4,100 17,013,505 0.024 2020 4,400 4,400 17,460,741 0.025 The amounts presented for each fiscal year were actuarial determined at 12/31 and rolled forward to the measurement date. These schedules are presented to illustrate the requirements to show information for 10 years.However until a full 10 year trend has been compiled,information is presented only for the years for which the required supplementary information is available. 78 —City of Ashland Annual Comprehensive Financial Report Page 86 of 194 Required Supplementary Information Required Supplementary Information For the year ended June 30, 2025 Schedule of The Proportionate Share of Net Pension Liability (a) (b) (b/c) Plan fiduciary Employer's Employer's (c) NPL as a net position as Year proportion of proportionate share percentage a percentage of Ended the net pension of the net pension Covered of covered the total pension June 30, liability(NPL) liability(NPL) payroll payroll liability 2025 0.1648% $ (36,631,103) $ 21,077,554 (173.8) % 31.0 % 2024 0.1927% (36,097,877) 19,418,399 (185.9) 62.6 2023 0.1914% (29,308,607) 18,453,012 (158.8) 60.9 2022 0.2048% (24,510,198) 17,013,505 (144.1) 66.3 2021 0.2105% (46,512,316) 17,460,741 (266.4) 68.8 2020 0.2046% (36,414,527) 17,561,324 (207.4) 80.2 2019 0.2046% (30,987,200) 16,232,406 (190.9) 80.6 2018 0.2157% (29,084,032) 15,950,222 (182.3) 83.1 2017 0.2157% (34,849,280) 15,571,834 (223.8) 80.5 2016 0.2590% (14,910,215) 14,948,474 (99.7) 91.9 The amounts presented for each fiscal year were actuarial determined at 12/31 and rolled forward to the measurement date. Schedule of Contributions Contributions in Contributions Year Statutorily relation to the Contribution Covered as a percent Ended required statutorily required deficiency Payroll of covered 2025 $ 5,904,880 $ 5,904,880 $ $ 23,288,522 25.4 % 2024 5,597,182 5,597,182 21,077,554 26.6 2023 4,522,246 4,522,246 19,418,399 23.3 2022 4,468,191 4,468,191 18,453,012 24.2 2021 4,472,240 4,472,240 17,013,505 26.3 2020 4,157,228 4,157,228 17,460,741 23.8 2019 3,396,359 3,396,359 17,561,324 19.3 2018 3,162,190 3,162,190 16,232,406 19.5 2017 2,774,267 2,774,267 15,950,222 17.4 2016 2,805,936 2,805,936 15,571,834 18.0 The amounts presented for each fiscal year were actuarial determined at 12/31 and rolled forward to the measurement date. 79 -City of Ashland Annual Comprehensive Financial Report Page 87 of 194 Required Supplementary Information CITY OF ASHLAND, OREGON General Fund Schedule of Revenues and Expenditures - Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Biennium Budget Amounts Actual Actual Variance with REVENUES Original Final FY 2023-24 FY 2024-25 Total Actual Final Budget Taxes $ 49,940,423 $ 49,940,423 $ 24,106,609 $ 24,424,056 $ 48,530,665 $ (1,409,758) Fees,licenses and permits 2,525,713 2,525,713 1,591,398 1,101,053 2,692,451 166,738 Intergovernmental 4,496,099 5,154,343 1,744,883 1,204,430 2,949,313 (2,205,030) Charges for services 26,131,340 26,272,714 10,586,886 11,121,520 21,708,406 (4,564,308) Fines and forfeitures 349,000 349,000 301,364 182,961 484,325 135,325 Interest on investments 600,000 1,100,000 1,159,506 850,261 2,009,767 909,767 Miscellaneous 181,325 611,625 831,217 169,950 1,001,167 389,542 Total revenues 84,223,900 85,953,818 40,321,863 39,054,230 79,376,093 (6,577,725) EXPENDITURES General government Administration Department 9,175,482 8,859,739 4,216,230 4,036,984 8,253,214 (606,525) Innovation and Technology Departmen 4,286,114 4,508,114 1,870,595 1,612,123 3,482,718 (1,025,396) Finance Department 6,570,211 6,570,211 2,947,691 3,263,434 6,211,124 (359,087) City Recorder's Office 574,140 574,140 195,982 268,303 464,285 (109,855) Public Works Department 8,944,655 8,299,655 3,256,545 3,108,117 6,364,663 (1,934,992) Community Development Department 4,891,264 4,891,264 2,055,921 2,131,635 4,187,556 (703,708) Contingency 2,279,998 2,057,998 - - - (2,057,998) Total general government 36,721,864 35,761,121 14,542,964 14,420,596 28,963,560 (6,797,561) Pubic safety Police Department 18,569,062 18,569,062 8,152,677 8,844,074 16,996,751 (1,572,311) Fire and Rescue Department 28,552,434 30,094,699 13,091,298 12,167,031 25,258,329 (4,836,370) Total public safety 47,121,496 48,663,761 21,243,975 21,011,105 42,255,080 (6,408,681) Parks and recreation 14,435,317 14,547,970 6,066,835 7,812,768 13,879,603 (668,367) Total expenditures 98,278,677 98,972,852 41,853,774 43,244,470 85,098,243 (13,874,609) Excess(deficiency)of revenues over expenditures (14,054,777) (13,019,034) (1,531,911) (4,190,239) (5,722,151) 7,296,883 OTHER FINANCING SOURCES(USES) Transfers in 1,243,184 4,574,302 521,096 3,850,775 4,371,871 (202,431) Transfers out (621,000) (1,656,743) (310,500) (1,346,243) (1,656,743) Total other financing sources(uses) 622,184 2,917,559 210,596 2,504,532 2,715,128 (202,431) Net change in fund balance (13,432,593) (10,101,475) (1,321,315) (1,685,707) (3,007,022) 7,094,453 Fund balance,beginning 19,559,426 19,559,426 18,379,038 17,057,723 18,379,038 (1,180,388) Fund balance,ending $ 6,126,833 $ 9,457,951 $ 17,057,723 15,372,016 $ 15,372,016 $ 5,914,065 Reconciliation to GAAP fund balance Reserve fund balance: 1,980,546 $ 17,352,562 80 —City of Ashland Annual Comprehensive Financial Report Page 88 of 194 Required Supplementary Information CITY OF ASHLAND, OREGON Street Fund Schedule of Revenues and Expenditures - Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Biennium Budget Amounts Actual Actual Variance with Original Final FY 2023-24 FY 2024-25 Total Actual Final Budget REVENUES Taxes $ 4,809,510 $ 4,809,510 $ 2,343,614 $ 2,216,306 $ 4,559,920 $ (249,590) Intergovernmental 3,306,000 3,306,000 1,692,621 1,744,738 3,437,359 131,359 Charges for services 3,402,500 3,402,500 1,694,331 1,584,730 3,279,061 (123,439) Assessments 6,000 6,000 943 4,915 5,858 (142) Interest on investments 160,000 160,000 65,073 165,230 230,302 70,302 Miscellaneous - - 187 2,801 2,989 2,989 Total revenues 11,684,010 11,684,010 5,796,769 5,718,721 11,515,489 (168,521) EXPENDITURES Public Works-Street Operations 20,623,413 20,623,413 7,130,513 5,921,230 13,051,744 (7,571,669) Public Works-Street Debt 4,968,539 4,968,539 77,762 81,266 159,027 (4,809,512) Contingency 276,982 276,982 - - - (276,982) Total expenditures 25,868,934 25,868,934 7,208,275 6,002,496 13,210,771 (12,658,163) Excess(deficiency)of revenues over expenditures (14,184,924) (14,184,924) (1,411,507) (283,775) (1,695,282) 12,489,642 OTHER FINANCING SOURCES(USES) Proceeds from debt issuance 14,542,685 14,542,685 4,028,789 4,028,789 (10,513,896) Transfers out* - - (2,978,031) (2,978,031) (2,978,031) Total other financing sources(uses) 14,542,685 14,542,685 1,050,758 1,050,758 (13,491,927) Net change in fund balance 357,761 357,761 (360,749) (283,775) (644,524) (1,002,285) Fund balance,beginning 1,701,979 1,701,979 4,796,385 4,435,636 4,796,385 3,094,406 Fund balance,ending $ 2,059,740 $ 2,059,740 $ 4,435,636 $ 4,151,861 $ 4,151,861 $ 2,092,121 *The variance with budget is due to an accounting correction for moving budgeted beginning fund balance to a new fund,and is not a budgetary violation per ORS. 81 —City of Ashland Annual Comprehensive Financial Report Page 89 of 194 Required Supplementary Information Notes To Required Supplementary Information Changes to Actuarial Assumptions — OPEB (Single Employer Plan). The fiscal year 2025 OPEB liability was determined by an actuarial valuation as of the July 1, 2024, valuation date, calculated based on the following discount rate and actuarial assumptions, and was then projected forward to the measurement date: Inflation - 2.40%, salary increases-3.40%, discount rate-3.93%. Withdrawal, retirement, and mortality rates were based on the December 31, 2023, Oregon PERS valuation. Election rates assumed that 100% of active members that are eligible for explicit benefits were assumed to receive those benefits and 45%of all other eligible employees. 60% of male members and 35%of female members will elect spouse coverage. The lapse rate was 5%. The actuarial cost method assumes the entry age is normal. Changes to actuarial assumptions — OPEB (PERS). The Retirement Health Insurance Account (RHIA) asset was determined by an actuarial valuation as of the December 31, 2022, date projected forward to the measurement date of June 30, 2024. The discount rate used was 6.90%, the inflation rate was 2.40%, and projected salary increases were 3.40%. All assumptions, methods and plan provisions used in the calculations are described in the Oregon PERS system wide GASB 75 reporting summary dated January 20, 2023, which can be found at OPEB Plan Schedules of Employer Allocations and OPEB Amounts by Employer. Additional information on the actuarial assumptions is included in the 2022 Experience Study report, which reviewed experience for the four-year period ended on December 31, 2022. Actuarial assumptions — Pension Liability (PERS). The total pension liability was determined by an actuarial valuation as of the December 31, 2022, date projected forward to the measurement date of June 30, 2024. The discount rate used was 6.90%, the inflation rate was 2.40%, and projected salary increases were 3.40%. All assumptions, methods and plan provisions used in the calculation are described in the Oregon PERS system wide GASB 68 reporting summary dated January 30, 2024, which can be found at Cost-Sharing Multiple-Employer Defined Benefit Pension Plan Schedules of Employer Allocations and Pension Amounts by Employer. Additional information on the actuarial assumptions is included in the 2022 Experience Study report, which reviewed experience for the four-year period ended on December 31, 2022. There are no assets accumulated in a trust that meets the criteria of GASB codification P22.101 or P52.101 to pay related benefits for the pension/OPEB plan. See the Notes to the Financial Statements for other key assumptions and changes. 82 —City of Ashland Annual Comprehensive Financial Report Page 90 of 194 SUPPLEMENTARY INFORMATION Combining Individual Fund Statements and Other Financial Schedules 83 —City of Ashland Annual Comprehensive Financial Report Page 91 of 194 rn 4- 0 N R r-- LO O) O O)O O co co LO M LO O O) r-- CC) CO N O N O I� CD N CO Cl) Lo 't m N N CO O CDO) N Lf) I� N Cl) m a) C 6) CDLo I� N LP LOLO CDLf) N LO M I� CO � Cb CO co -t M � O LO N co A N m co co � Lo N Lo LC) CO CD6) N � � 0-) N m co 0 E CO -t � o) m m � 6) Cl) N N 0-) N M � CO E co t 6) co N C) C) O co co 't O > 0 �_ Cl) M O ~ 0 Eg EA EA EA N 6) C 0 CO M O O O O y T a) Cb N E v E 2 7 Cl) 0-)a LO LO LO LO m rn m rn tLL V ~ LL A L A A � 0-)CO L�f) m LO LO LO co 't m V C CO 6) Cl) � � Cl) �.0 co Lo o a) LL O O 0-) O O U) EA EA EA EA y i i i a) N coE � fOJ LO M CN co CO 1 13 E "O rn °�' Cl) co 0-) c Q a) r � co co co co a. 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CO 0 CD M o r co o o co m d a) N M O co m LO CO Co -t O Z co m m co C L a1 N a LL U) W 0 w a) Ef L EA 0 CL 01 0 r— r— CO CO O 3 } C7 v co co } rn rn Cl) Cl) U � Z L U LL .V 0 LL Gl3M CD A CN N � � LL a1 N N 't 't m m N N E N = m m O O �' m CN m ' LL V V co co O O O O Co O C -O N co co co co N O O N LL J N N N N N N E 7 7 m U xLL U E 7i L co co co LO r- r-- N co co 0CD CD co co C\j C\j CD o) °�) U N v CO CO N co co co c CD CD C LO CD Q w l N co � N LO LO I� O) y y L N N LU y > O Q I, > PL N (V O mO O W a N O U C 01 m a) cLi 42 42o > =O o 0o c _ E o o y O 0 0 v V 0 0 iU) C > o oU E> y Z o tR LO E E Lu > m> o � Q � ow a m nR aR) 00 U) a LL Q)w > ) NO E 6s Q ZmmN N 0Z a WCC wXo ( U LL, d = EL w U O L6 L6 U "O "O � 0co c x (D U c x Q � w �F c _ _ a w w Q) 0 z LL LL Supplementary Information CITY OF ASHLAND, OREGON SDC Street Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Biennium Budget Amounts Actual Actual Variance with Original Final FY 2023-24 FY 2024-25 Total Actual Final Budget REVENUES System development charges $ 300,000 $ 300,000 $ 324,118 $ 214,998 $ 539,116 $ 239,116 Interest on investments - - 146,587 125,608 272,195 272,195 Total revenues 300,000 300,000 470,705 340,606 811,311 511,311 EXPENDITURES General government Materials and services 50,000 50,000 1,165 - 1,165 48,835 Capital outlay 3,104,875 3,104,875 1,277,375 116,431 1,393,806 1,711,069 Contingency 94,647 94,647 - - - 94,647 Total expenditures 3,249,522 3,249,522 1,278,540 116,431 1,394,971 1,854,551 Excess of revenues over expenditures (2,949,522) (2,949,522) (807,835) 224,175 (583,660) 2,365,862 OTHER FINANCING SOURCES(USES) Proceeds from debt issuance 3,104,875 3,104,875 - 536,427 536,427 (2,568,448) Transfer in - - 2,978,031 - 2,978,031 2,978,031 Total other financing sources(uses) 3,104,875 3,104,875 2,978,031 536,427 3,514,458 409,583 Net change in fund balance 155,353 155,353 2,170,196 760,602 2,930,798 2,775,445 Fund balance,beginning 3,002,755 3,002,755 - 2,170,196 - (3,002,755) Fund balance,ending $ 3,158,108 $ 3,158,108 $ 2,170,196 $ 2,930,798 $ 2,930,798 $ (227,310) 86 -City of Ashland Annual Comprehensive Financial Report Page 94 of 194 Supplementary Information CITY OF ASHLAND, OREGON Housing Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Biennium Budget Amounts Actual Actual Variance with Original Final FY 2023-24 FY 2024-25 Total Actual Final Budget REVENUES Interest on investments $ 2,000 $ 2,000 $ 12,519 $ 12,894 $ 25,413 $ 23,413 Total revenues 2,000 2,000 12,519 12,894 25,413 23,413 EXPENDITURES General government Materials and services 423,798 423,798 100,000 238,060 338,060 85,738 Total expenditures 423,798 423,798 100,000 238,060 338,060 85,738 Excess of revenues over expenditures (421,798) (421,798) (87,481) (225,166) (312,647) 109,151 OTHER FINANCING SOURCES(USES) Transfers in 200,000 200,000 100,000 100,000 200,000 - Total other financing sources(uses) 200,000 200,000 100,000 100,000 200,000 - Net change in fund balance (221,798) (221,798) 12,519 (125,166) (112,647) 109,151 Fund balance,beginning 221,798 221,798 240,123 252,642 240,123 18,325 Fund balance,ending $ - $ - $ 252,642 $ 127,476 $ 127,476 $ 127,476 87 -City of Ashland Annual Comprehensive Financial Report Page 95 of 194 Supplementary Information CITY OF ASHLAND, OREGON Tourism Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Biennium Budget Amounts Actual Actual Variance with Original Final FY 2023-24 FY 2024-25 Total Actual Final Budget REVENUES Taxes $ 1,961,197 $ 1,961,197 $ 853,267 $ 922,661 $ 1,775,928 $ (185,269) Interest on investments 24,000 24,000 48,827 42,129 90,956 66,956 Total revenues 1,985,197 1,985,197 902,094 964,790 1,866,884 (118,313) EXPENDITURES General government Personnel services 145,677 170,677 78,730 86,120 164,850 5,827 Materials and services 2,322,676 2,297,676 833,329 938,166 1,771,495 526,181 Contingency 74,050 74,050 - - - 74,050 Total expenditures 2,542,403 2,542,403 912,059 1,024,286 1,936,345 606,058 Net change in fund balance (557,206) (557,206) (9,965) (59,496) (69,461) 487,745 Fund balance,beginning 1,015,037 1,015,037 992,082 982,117 992,082 (22,955) Fund balance,ending $ 457,831 $ 457,831 $ 982,117 $ 922,621 $ 922,621 $ 464,790 88 -City of Ashland Annual Comprehensive Financial Report Page 96 of 194 Supplementary Information CITY OF ASHLAND, OREGON Community Development Block Grant Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Biennium Budget Amounts Actual Actual Variance with Original Final FY 2023-24 FY 2024-25 Total Actual Final Budget REVENUES Intergovernmental $ 378,962 $ 378,962 $ 65,563 $ 191,762 $ 257,325 $ (121,637) Total revenues 378,962 378,962 65,563 191,762 257,325 (121,637) EXPENDITURES General government Personal services 69,654 69,654 35,915 32,527 68,442 1,212 Material and services 345,927 345,927 29,648 159,235 188,883 157,044 Total general government 415,581 415,581 65,563 191,762 257,325 158,256 Total expenditures 415,581 415,581 65,563 191,762 257,325 158,256 Net change in fund balance (36,619) (36,619) - - - 36,619 Fund balance,beginning 36,619 36,619 36,619 36,619 36,619 - Fund balance,ending $ - $ - $ 36,619 $ 36,619 $ 36,619 $ 36,619 89 -City of Ashland Annual Comprehensive Financial Report Page 97 of 194 Supplementary Information CITY OF ASHLAND, OREGON Airport Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Biennium Budget Amounts Actual Actual Variance with Original Final FY 2023-24 FY 2024-25 Total Actual Final Budget REVENUES Intergovernmental $ 4,697,500 $ 4,697,500 $ 2,627,951 $ - $ 2,627,951 $ (2,069,549) Charges for services 345,000 345,000 186,238 191,287 377,525 32,525 Interest on investments 6,000 6,000 4,810 17,903 22,712 16,712 Miscellaneous - - 2,000 2,000 4,000 4,000 Total revenues 5,048,500 5,048,500 2,820,999 211,190 3,032,188 (2,016,312) EXPENDITURES General government: Materials and services 190,849 190,849 79,867 77,607 157,474 33,375 Capital outlay 4,915,000 4,915,000 2,802,643 39,975 2,842,618 2,072,382 Contingency 5,726 5,726 - - - 5,726 Total expenditures 5,111,575 5,111,575 2,882,510 117,582 3,000,092 2,111,483 Net change in fund balance (63,075) (63,075) (61,511) 93,608 32,097 95,172 Fund balance,beginning 86,831 86,831 398,996 337,485 398,996 312,165 Fund balance,ending $ 23,756 $ 23,756 $ 337,485 $ 431,093 $ 431,093 $ 407,337 90 -City of Ashland Annual Comprehensive Financial Report Page 98 of 194 Supplementary Information CITY OF ASHLAND, OREGON Capital Improvements Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Biennium Budget Amounts Actual Actual Variance with Original Final FY 2023-24 FY 2024-25 Total Actual Final Budget REVENUES Intergovernmental $ 900,000 $ 2,058,100 $ 1,158,200 $ - $ 1,158,200 $ (899,900) Charges for services - - 159,264 - 159,264 159,264 Interest on investments 20,000 20,000 57,194 37,072 94,266 74,266 Total revenues 920,000 2,078,100 1,374,658 37,072 1,411,730 (666,370) EXPENDITURES General government Public Works Department 1,953,074 4,075,620 2,095,540 1,706,323 3,801,863 273,757 Total expenditures 1,953,074 4,075,620 2,095,540 1,706,323 3,801,863 273,757 Excess(deficiency)of revenues over expenditures (1,033,074) (1,997,520) (720,882) (1,669,251) (2,390,133) (392,613) OTHER FINANCING SOURCES (USES) Proceeds from debt issuance - - 600,000 - 600,000 600,000 Transfers in 200,000 1,164,446 100,000 1,064,446 1,164,446 - Transfers out* - - (320,568) (320,568) (320,568) Total other financing sources(uses): 200,000 1,164,446 379,432 1,064,446 1,443,878 279,432 Net change in fund balance (833,074) (833,074) (341,450) (604,805) (946,255) (113,181) Fund balance,beginning 1,035,362 1,035,362 1,318,992 977,542 1,318,992 283,630 Fund balance,ending $ 202,288 $ 202,288 $ 977,542 $ 372,737 $ 372,737 $ 170,449 *The variance with budget is due to an accounting correction for moving budgeted beginning fund balance to a new fund,and is not a budgetary violation per ORS 91 —City of Ashland Annual Comprehensive Financial Report Page 99 of 194 Supplementary Information CITY OF ASHLAND, OREGON SDC Parks Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Biennium Budget Amounts Actual Actual Variance with Original Final FY 2023-24 FY 2024-25 Total Actual Final Budget Revenues: System development charges $ 100,000 $ 100,000 $ 79,140 $ 42,508 $ 121,648 $ 21,648 Interest on investments - - 17,694 19,999 37,693 37,693 Total revenues 100,000 100,000 96,834 62,507 159,341 59,341 Expenditures: General government: Capital outlay 373,532 373,532 - - - 373,532 Contingency 11,206 11,206 11,206 Total expenditures 384,738 384,738 - - - 384,738 Excess(deficiency)of revenues over expenditures (284,738) (284,738) 96,834 62,507 159,341 444,079 Other financing sources(uses): Transfer in 320,568 - 320,568 320,568 Total other financing sources(uses) 320,568 - 320,568 320,568 Net change in fund balance (284,738) (284,738) 417,402 62,507 479,909 764,647 Fund balance,beginning 284,878 284,878 - 417,402 - (284,878) Fund balance,ending $ 140 $ 140 $ 417,402 $ 479,909 $ 479,909 $ 479,769 92 -City of Ashland Annual Comprehensive Financial Report Page 100 of 194 Supplementary Information CITY OF ASHLAND, OREGON Parks Capital Improvements Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Biennium Budget Amounts Actual Actual Variance with Original Final FY 2023-24 FY 2024-25 Total Actual Final Budget REVENUES Taxes $ 1,647,093 $ 1,647,093 $ 808,875 $ 759,009 $ 1,567,884 $ (79,209) Intergovernmental 7,500,000 7,531,000 101,000 - 101,000 (7,430,000) Interest on investments 60,000 60,000 176,970 169,874 346,844 286,844 Miscellaneous 50,000 50,000 - - - (50,000) Total revenues 9,257,093 9,288,093 1,086,845 928,883 2,015,728 (7,272,365) EXPENDITURES General government: Capital outlay 15,341,100 15,372,100 880,674 552,625 1,433,299 13,938,801 Total expenditures 15,341,100 15,372,100 880,674 552,625 1,433,299 13,938,801 Excess(deficiency)of revenues over expenditures (6,084,007) (6,084,007) 206,171 376,258 582,429 6,666,436 OTHER FINANCING SOURCES(USES) Proceeds from debt issuance 8,200,000 8,200,000 - - - (8,200,000) Transfers out (1,217,080) (1,217,080) (608,892) (608,188) (1,217,080) Total other financing sources(uses): 6,982,920 6,982,920 (608,892) (608,188) (1,217,080) (8,200,000) Net change in fund balance 898,913 898,913 (402,721) (231,930) (634,651) (1,533,564) Fund balance,beginning 5,590,786 5,590,786 3,973,973 3,571,252 3,973,973 (1,616,813) Fund balance,ending $ 6,489,699 $ 6,489,699 $ 3,571,252 $ 3,339,322 $ 3,339,322 $ (3,150,377) 93 —City of Ashland Annual Comprehensive Financial Report Page 101 of 194 Supplementary Information CITY OF ASHLAND, OREGON Debt Services Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Biennium Budget Amounts Actual Actual Variance with Original Final FY 2023-24 FY 2024-25 Total Actual Final Budget REVENUES Taxes $ 417,276 $ 417,276 $ 205,116 $ 203,011 $ 408,127 $ (9,149) Charges for services 2,523,190 2,523,190 1,261,595 1,261,595 2,523,190 - Interest on investments 18,000 18,000 30,993 25,929 56,922 38,922 Total revenues 2,958,466 2,958,466 1,497,704 1,490,536 2,988,240 29,774 EXPENDITURES Debt service Principal 3,343,000 3,377,686 1,661,607 1,716,052 3,377,659 27 Interest 177,736 214,347 124,037 90,310 214,347 - Total expenditures 3,520,736 3,592,033 1,785,644 1,806,362 3,592,006 27 Excess(deficiency)of revenues over expenditures (562,270) (633,567) (287,940) (315,826) (603,766) 29,801 OTHER FINANCING SOURCES (USES) Transfers in 591,990 591,990 296,347 366,940 663,287 71,297 Total other financing sources(uses): 591,990 591,990 296,347 366,940 663,287 71,297 Net change in fund balance 29,720 (41,577) 8,407 51,114 59,521 29,801 Fund balance,beginning 815,165 815,165 1,041,895 1,050,302 1,041,895 226,730 Fund balance,ending $ 844,885 $ 773,588 $ 1,050,302 $ 1,101,416 $ 1,101,416 $ 327,828 94-City of Ashland Annual Comprehensive Financial Report Page 102 of 194 Supplementary Information CITY OF ASHLAND, OREGON Cemetery Trust Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Biennium Budget Amounts Actual Actual Variance with Original Final FY 2023-24 FY 2024-25 Total Actual Final Budget REVENUES Charges for services $ 26,000 $ 26,000 $ 23,512 $ 23,828 $ 47,340 $ 21,340 Interest on investments 24,000 24,000 48,551 47,111 95,662 71,662 Total revenues 50,000 50,000 72,063 70,939 143,002 93,002 OTHER FINANCING SOURCES(USES) Transfers In 1,000 1,000 500 500 1,000 - Transfers Out (298,094) (298,094) (48,551) (47,111) (95,662) 202,432 Total other financing sources(uses): (297,094) (297,094) (48,051) (46,611) (94,662) 202,432 Net change in fund balance (247,094) (247,094) 24,012 24,328 48,340 295,434 Fund balance,beginning 946,395 946,395 946,761 970,773 946,761 366 Fund balance,ending $ 699,301 $ 699,301 $ 970,773 $ 995,101 $ 995,101 $ 295,800 95 -City of Ashland Annual Comprehensive Financial Report Page 103 of 194 Supplementary Information CITY OF ASHLAND, OREGON Parks and Recreation Fund (General Fund Sub-Fund) Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Biennium Budget Amounts Actual Actual Variance with Original Final FY 2023-24 FY 2024-25 Total Actual Final Budget Other financing sources(uses): Transfers out $ $ (631,966) $ - $ (631,966) $ (631,966) $ Total other financing sources(uses) (631,966) (631,966) (631,966) Net change in fund balance (631,966) - (631,966) (631,966) Fund balance,beginning 631,966 631,966 631,966 631,966 Fund balance,ending $ $ - $ 631,966 $ - $ - $ 96 —City of Ashland Annual Comprehensive Financial Report Page 104 of 194 Supplementary Information CITY OF ASHLAND, OREGON Reserve Fund (General Fund Sub-Fund) Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Biennium Budget Amounts Actual Actual Variance with Original Final FY 2023-24 FY 2024-25 Total Actual Final Budget REVENUES Interest on investments $ 50,000 $ 50,000 $ 93,340 $ 92,994 $ 186,334 $ 136,334 Total revenues 50,000 50,000 93,340 92,994 186,334 136,334 Net change in fund balance 50,000 50,000 93,340 92,994 186,334 136,334 Fund balance,beginning 1,784,761 1,784,761 1,794,212 1,887,552 1,794,212 9,451 Fund balance,ending $ 1,834,761 $ 1,834,761 $ 1,887,552 $ 1,980,546 $ 1,980,546 $ 145,785 Reconciliation to GAAP fund balance $ (1,980,546) Reserve fund to the General Fund $ 97 —City of Ashland Annual Comprehensive Financial Report Page 105 of 194 Supplementary Information CITY OF ASHLAND, OREGON Parks Equipment Fund (General Fund Sub-Fund) Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Biennium Budget Amounts Actual Actual Variance with Original Final FY 2023-24 FY 2024-25 Total Actual Final Budget Other financing sources(uses): Transfer out $ $ (473,607) $ $ (473,607) $ (473,607) $ Total other financing sources(uses) (473,607) (473,607) (473,607) Net Change in Fund Balance (473,607) (473,607) (473,607) - Fund balance,Beginning 473,607 473,607 473,607 473,607 473,607 Fund balance,Ending $ 473,607 $ - $ 473,607 $ - $ - $ 98 —City of Ashland Annual Comprehensive Financial Report Page 106 of 194 Supplementary Information CITY OF ASHLAND, OREGON Water Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Total Actual Variance with Biennium Budget Amounts Actual Actual for Budget Final Budget Original Final FY 2023-24 FY 2024-25 Period Over/Under Revenues: Intergovernmental $ - $ - $ 253,350 $ 693,933 $ 947,283 $ 947,283 Charges for services 17,604,000 17,604,000 8,580,508 8,991,029 17,571,537 (32,463) Interest on investments 400,000 400,000 748,049 832,320 1,580,369 1,180,369 Miscellaneous 51,000 51,000 10,926 2,938 13,864 (37,136) Total revenues 18,055,000 18,055,000 9,592,833 10,520,220 20,113,053 2,058,053 Expenditures: Cost of services: Public Works-Water Conservation 581,198 581,198 87,694 87,300 174,994 406,204 Public Works-Water Operations 71,567,892 71,567,892 6,868,448 8,521,377 15,389,825 56,178,067 Public Works-Water Debt 1,472,514 1,472,514 330,331 685,696 1,016,027 456,487 Contingency 436,793 436,793 - - - 436,793 Total expenditures 74,058,397 74,058,397 7,286,473 9,294,373 16,580,845 57,477,552 Excess(deficiency)of revenues over(under)expenditures (56,003,397) (56,003,397) 2,306,360 1,225,847 3,532,208 59,535,605 Other financing sources(uses): Loan proceeds 46,570,810 46,570,810 - - - (46,570,810) Transfer out* (100,000) (100,000) (911,082) (50,000) (961,082) (861,082) Total other financing sources(uses) 46,470,810 46,470,810 (911,082) (50,000) (961,082) (47,431,892) Net change in fund balance (9,532,587) (9,532,587) 1,395,278 1,175,847 2,571,125 12,103,712 Fund balance,beginning 12,341,551 12,341,551 16,220,569 17,615,847 16,220,569 3,879,018 Fund balance,ending $ 2,808,964 $ 2,808,964 $ 17,615,847 $ 18,791,694 $ 18,791,694 $ 15,982,730 *The variance with budget is due to an accounting correction for moving budgeted beginning fund balance to a new fund,and is not a budgetary violation per ORS Reconciliation to net position: SDC Water fund balance $ 976,559 Deferred outflow-pension 721,376 Deferred outflow-OPEB 91,428 Capital assets,net 29,289,019 Compensated absences (161,630) OPEB implicit rate liability (355,756) Net pension liability (1,739,245) Deferred inflow-pension (316,470) Deferred inflow-OPEB (39,624) Accrued interest (42,112) GO bonds payable (570,000) Revenue debt payable (7,704,849) Total net position $ 38,940,390 99 —City of Ashland Annual Comprehensive Financial Report Page 107 of 194 Supplementary Information CITY OF ASHLAND, OREGON SDC Water Fund (Water Fund Sub-Fund) Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Total Actual Variance with Biennium Budget Amounts Actual Actual for Budget Final Budget Original Final FY 2023-24 FY 2024-25 Period Over/Under Revenues: System development charges $ 350,000 $ 350,000 $ 230,531 $ 192,551 $ 423,082 $ 73,082 Interest on investments - - 43,829 45,257 89,086 89,086 Total revenues 350,000 350,000 274,360 237,808 512,168 162,168 Expenditures: Cost of Services Materials and services 150,000 150,000 - - - 150,000 Capital outlay 8,659,843 8,659,843 5,331 24,513 29,844 8,629,999 Debt 410,512 410,512 163,756 203,092 366,847 43,665 Contingency 274,121 274,121 - - 274,121 Total expenditures 9,494,476 9,494,476 169,087 227,605 396,691 9,097,785 Other financing sources(uses): Proceeds from debt issuance 15,139,204 15,139,204 - - - (15,139,204) Transfer in - - 861,082 861,082 861,082 Total other financing sources(uses) 15,139,204 15,139,204 861,082 - 861,082 (14,278,122) Net change in fund balance 5,994,728 5,994,728 966,355 10,203 976,559 (5,018,169) Fund balance,beginning 1,183,793 1,183,793 - 966,355 - (1,183,793) Fund balance,ending $ 7,178,521 $ 7,178,521 $ 966,355 $ 976,559 $ 976,559 $ (6,201,962) 100-City of Ashland Annual Comprehensive Financial Report Page 108 of 194 Supplementary Information CITY OF ASHLAND, OREGON Wastewater Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Total Actual Variance with Biennium Budget Amounts Actual Actual for Budget Final Budget Original Final FY 2023-24 FY 2024-25 Period Over/Under Revenues: Intergovernmental $ - $ - $ - $ 98,752 $ 98,752 $ 98,752 Charges for services 12,710,000 12,710,000 6,368,033 6,185,122 12,553,155 (156,845) Interest on investments 160,000 160,000 250,103 293,537 543,640 383,640 Miscellaneous - - 3,939 43 3,982 3,982 Total revenues 12,870,000 12,870,000 6,622,075 6,577,454 13,199,529 329,529 Expenditures: Cost of services: Public Works-Wastewater Operations 20,381,099 20,381,099 7,557,731 5,946,006 13,503,738 6,877,361 Public Works-Wastewater Debt 342,928 342,928 172,155 170,773 342,928 (0) Contingency 356,466 356,466 - - - 356,466 Total expenditures 21,080,493 21,080,493 7,729,886 6,116,779 13,846,666 7,233,827 Excess(deficiency)of revenues over(under)expenditures (8,210,493) (8,210,493) (1,107,811) 460,675 (647,137) 7,563,356 Other financing sources(uses): Loan proceeds 8,647,571 8,647,571 1,242,621 505,802 1,748,423 (6,899,148) Transfer out* - - (2,235,338) - (2,235,338) (2,235,338) Total other financing sources(uses) 8,647,571 8,647,571 (992,717) 505,802 (486,915) (9,134,486) Net change in fund balance 437,078 437,078 (2,100,528) 966,477 (1,134,051) (1,571,129) Fund balance,beginning 4,407,490 4,407,490 8,707,001 6,606,473 8,707,001 4,299,511 Fund balance,ending $ 4,844,568 $ 4,844,568 $ 6,606,473 $ 7,572,950 $ 7,572,950 $ 2,728,382 *The variance with budget is due to an accounting correction for moving budgeted beginning fund balance to a new fund,and is not a budgetary violation per ORS Reconciliation to net position: SDC Wastewater fund balance $ 2,726,658 Deferred outflow-pension 533,587 Deferred outflow-OPEB 117,340 Capital assets,net 35,457,202 Compensated absences (114,354) OPEB implicit rate liability (467,237) Net pension liability (1,286,484) Deferred inflow-pension (234,087) Deferred inflow-OPEB (50,689) Accrued interest (180,617) GO bonds payable (135,000) Revenue bonds payable (8,544,951) Total net position $ 35,394,318 101 —City of Ashland Annual Comprehensive Financial Report Page 109 of 194 Supplementary Information CITY OF ASHLAND, OREGON SDC Wastewater Fund (Wastewater Fund Sub-Fund) Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Total Actual Variance with Biennium Budget Amounts Actual Actual for Budget Final Budget Original Final FY 2023-24 FY 2024-25 Period Over/Under Revenues: System development charges $ 300,000 $ 300,000 $ 286,207 $ 248,826 $ 535,033 $ 235,033 Interest on investments - - 105,866 112,113 217,979 217,979 Total revenues 300,000 300,000 392,073 360,939 753,012 453,012 Expenditures: Cost of Services Capital outlay 1,650,525 1,650,525 255,321 6,371 261,692 1,388,833 Contingency 49,516 49,516 - - - 49,516 Total expenditures 1,700,041 1,700,041 255,321 6,371 261,692 1,438,349 Other financing sources(uses): Proceeds from debt issuance 1,381,369 1,381,369 - - - (1,381,369) Transfer in - - 2,235,338 - 2,235,338 2,235,338 Total other financing sources(uses) 1,381,369 1,381,369 2,235,338 - 2,235,338 853,969 Net change in fund balance (18,672) (18,672) 2,372,090 354,568 2,726,658 2,745,330 Fund balance,beginning 1,585,034 1,585,034 - 2,372,090 - (1,585,034) Fund balance,ending $ 1,566,362 $ 1,566,362 $ 2,372,090 $ 2,726,658 $ 2,726,658 $ 1,160,296 102—City of Ashland Annual Comprehensive Financial Report Page 110 of 194 Supplementary Information CITY OF ASHLAND, OREGON Stormwater Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Total Actual Variance with Biennium Budget Amounts Actual Actual for Budget Final Budget Original Final FY 2023-24 FY 2024-25 Period Over/Under Revenues: Charges for services $ 1,575,000 $ 1,575,000 $ 803,492 $ 778,512 $ 1,582,004 $ 7,004 Interest on investments 32,000 32,000 97,996 95,489 193,485 161,485 Total revenues 1,607,000 1,607,000 901,488 874,003 1,775,491 168,491 Expenditures: Cost of services: Public Works- Stormwater Operations 3,408,275 3,408,275 837,566 821,213 1,658,779 1,749,496 Debt service 22,094 22,094 11,150 10,944 22,094 - Contingency 64,479 64,479 - - - 64,479 Total expenditures 3,494,848 3,494,848 848,716 832,157 1,680,873 1,813,975 Excess(deficiency)of revenues over(under)expenditures (1,887,848) (1,887,848) 52,772 41,846 94,618 1,982,466 Other financing sources(uses): Proceeds from debt issuance 390,220 390,220 - - - (390,220) Total other financing sources(uses) 390,220 390,220 - - (390,220) Net change in fund balance (1,497,628) (1,497,628) 52,772 41,846 94,618 1,592,246 Fund balance,beginning 2,036,637 2,036,637 2,042,119 2,094,891 2,042,119 5,482 Fund balance,ending $ 539,009 $ 539,009 $ 2,094,891 $ 2,136,737 $ 2,136,737 $ 1,597,728 Reconciliation to net position: SDC Stormwater $ 55,106 Deferred outflow-pension 134,764 Deferred outflow-OPEB 37,612 Capital assets,net 403,678 Compensated absences (4,541) OPEB implicit rate liability (156,137) Net pension liability (324,918) Deferred inflow-pension (59,122) Deferred inflow-OPEB (16,150) Accrued interest (207) GO bonds payable (35,000) Total net position $ 2,171,822 103-City of Ashland Annual Comprehensive Financial Report Page 111 of 194 Supplementary Information CITY OF ASHLAND, OREGON SCD Stormwater Fund (Stormwater Fund Sub-Fund) Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Total Actual Variance with Biennium Budget Amounts Actual Actual for Budget Final Budget Original Final FY 2023-24 FY 2024-25 Period Over/Under Revenues: System development charges $ 60,000 $ 60,000 $ 29,643 $ 22,825 $ 52,468 $ (7,532) Interest on investments - - 678 1,960 2,638 2,638 Total revenues 60,000 60,000 30,321 24,785 55,106 (4,894) Expenditures: Cost of services Capital outlay 64,908 64,908 - - - 64,908 Contingency 1,947 1,947 1,947 Total expenditures 66,855 66,855 - - - 66,855 Net change in fund balance (6,855) (6,855) 30,321 24,785 55,106 61,961 Fund balance,beginning 14,954 14,954 - 30,321 - (14,954) Fund balance,ending $ 8,099 $ 8,099 $ 30,321 $ 55,106 $ 55,106 $ 47,007 104-City of Ashland Annual Comprehensive Financial Report Page 112 of 194 Supplementary Information CITY OF ASHLAND, OREGON Electric Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Total Actual Variance with Biennium Budget Amounts Actual Actual for Budget Final Budget Original Final FY 2023-24 FY 2024-25 Period Over/Under Revenues: Intergovernmental $ 410,000 $ 1,350,000 $ 983,771 $ 185,554 $ 1,169,325 $ (180,675) Charges for services 36,554,204 36,554,204 16,906,546 15,924,806 32,831,352 (3,722,852) Interest on investments 130,000 130,000 333,559 329,899 663,458 533,458 Miscellaneous 576,000 576,000 554,756 56,106 610,862 34,862 Total revenues 37,670,204 38,610,204 18,778,632 16,496,365 35,274,997 (3,335,207) Expenditures: Cost of Services: Administration- Conservation 3,230,022 3,230,022 827,318 889,242 1,716,560 1,513,462 Electric-Operations 36,908,160 37,848,160 15,681,925 17,422,837 33,104,762 4,743,398 Electric-Debt 443,624 443,624 - - - 443,624 Contingency 1,136,604 1,136,604 - - - 1,136,604 Total expenditures 41,718,410 42,658,410 16,509,243 18,312,079 34,821,322 7,837,088 Excess(deficiency)of revenues over(under)expenditures (4,048,206) (4,048,206) 2,269,389 (1,815,714) 453,675 4,501,881 Other financing sources(uses): Loan proceeds 3,000,000 3,000,000 - - (3,000,000) Total other financing sources(uses) 3,000,000 3,000,000 - - (3,000,000) Net change in fund balance (1,048,206) (1,048,206) 2,269,389 (1,815,714) 453,675 1,501,881 Fund balance,beginning 6,080,192 6,080,192 7,168,134 9,437,523 7,168,134 1,087,942 Fund balance,ending $ 5,031,986 $ 5,031,986 $ 9,437,523 $ 7,621,809 $ 7,621,809 $ 2,589,823 Reconciliation to net position: Deferred outflow-pension $ 1,221,386 Deferred outflow-OPEB 68,215 Capital assets,net 6,628,497 Compensated absences (265,576) OPEB implicit rate liability (231,713) Net pension liability (2,944,774) Deferred inflow-pension (535,826) Deferred inflow-OPEB (30,083) Deferred revenue 53,587 Total net position $ 11,585,519 105—City of Ashland Annual Comprehensive Financial Report Page 113 of 194 Supplementary Information CITY OF ASHLAND, OREGON Telecommunications Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Total Actual Variance with Biennium Budget Amounts Actual Actual for Budget Final Budget Original Final FY 2023-24 FY 2024-25 Period Over/Under Revenues: Charges for services $ 5,428,847 $ 5,428,847 $ 2,789,598 $ 2,680,273 $ 5,469,871 $ 41,024 Interest on investments 90,000 90,000 142,511 128,923 271,434 181,434 Miscellaneous - - - 1,875 1,875 1,875 Total revenues 5,518,847 5,518,847 2,932,109 2,811,071 5,743,180 224,333 Expenditures: Cost of services: Personal services 2,133,731 2,133,731 847,016 890,794 1,737,811 395,920 Materials and services 3,713,090 3,713,090 1,769,777 1,936,667 3,706,444 6,646 Capital outlay 1,205,681 1,205,681 337,802 288,467 626,269 579,412 Contingency 175,405 175,405 - - - 175,405 Total expenditures 7,227,907 7,227,907 2,954,595 3,115,929 6,070,524 1,157,383 Net change in fund balance (1,709,060) (1,709,060) (22,486) (304,858) (327,344) 1,381,716 Fund balance,beginning 3,021,118 3,021,118 3,175,717 3,153,231 3,175,717 154,599 Fund balance,ending $ 1,312,058 $ 1,312,058 $ 3,153,231 $ 2,848,373 $ 2,848,373 $ 1,536,315 Reconciliation to net position: Deferred outflow-pension $ 286,545 Deferred outflow-OPEB 12,828 Capital assets,net 511,239 Compensated absences (46,911) OPEB implicit rate liability (44,290) Net pension liability (690,863) Deferred inflow-pension (125,708) Deferred inflow-OPEB (5,646) Total net position $ 2,745,567 106—City of Ashland Annual Comprehensive Financial Report Page 114 of 194 Supplementary Information CITY OF ASHLAND, OREGON Combining Balance Sheet Internal Service Funds For the Year Ended June 30, 2025 Insurance Health Services Benefits Equipment Fund Fund Fund Totals ASSETS Current assets: Cash and investments $ 2,579,324 $ $ 7,598,137 $ 10,177,461 Interest and accounts receivable,net 27,864 7,513 35,377 Notes receivable 6,142 - 6,142 Inventories - 46,205 46,205 Total current assets 2,613,330 7,651,855 10,265,185 Non-Current assets: Capital assets,not being depreciated or amortized: - 98,770 98,770 Capital assets,being depreciated or amortized: Non-Current capital assets 21,320,963 21,320,963 Accumulated depreciation (14,419,817) (14,419,817) Capital assets,net - 6,999,916 6,999,916 Total Assets 2,613,330 14,651,771 17,265,101 Deferred Outflows of Resources: Deferred Outflows-Pension - 168,341 168,341 Deferred Outflows-OPEB 9,907 9,907 Total Deferred Outflows - 178,248 178,248 LIABILITIES,DEFERRED INFLOWS AND NET POSITION Current liabilities: Accounts payable 2,708 53,838 56,546 Accrued salaries,vacation and payroll taxes - 8,263 8,263 Compensated absences - 10,326 10,326 Total current liabilities 2,708 72,428 75,135 Long-term liabilities: Compensated absences 30,979 30,979 Total OPEB Liabilities - 33,028 33,028 Proportionate Share of Net Pension Liability 405,873 405,873 Total long-term liabilities - 469,880 469,880 Total liabilities 2,708 542,308 545,015 Deferred Inflows of Resources Deferred Inflows-Pensions - 73,852 73,852 Deferred Inflows-OPEB 4,379 4,379 Total Deferred Inflows 78,231 78,231 Net Position Net Investment in Capital Assets - 6,999,916 6,999,916 Unrestricted 2,610,622 7,209,564 9,820,186 Total net position $ 2,610,622 $ $ 14,209,480 $ 16,820,102 107-City of Ashland Annual Comprehensive Financial Report Page 115 of 194 Supplementary Information CITY OF ASHLAND, OREGON Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds For the Year Ended June 30, 2025 Insurance Health Service Benefits Equipment Fund Fund Fund Totals Operating revenues: Service charges and fees $ 1,772,394 $ $ 4,984,205 $ 6,756,599 Miscellaneous 7,703 138,552 146,255 Total revenues 1,780,097 5,122,757 6,902,854 Operating expenses: Cost of service 1,354,216 2,311,377 3,665,593 Depreciation - 1,465,813 1,465,813 Total operating expenses 1,354,216 3,777,190 5,131,406 Operating income(loss) 425,881 1,345,567 1,771,448 Nonoperating income(expense): Interest income 81,682 359,062 440,744 Total nonoperating income(expense) 81,682 359,062 440,744 Other financing sources(uses): Transfer Out - (2,225,546) - (2,225,546) Total other financing sources(uses) - (2,225,546) - (2,225,546) Change in Net Position 507,563 (2,225,546) 1,704,629 (13,354) Total Net Position-beginning 2,103,059 2,225,546 12,504,851 16,833,456 Total Net Position-ending $ 2,610,622 $ - $ 14,209,480 $ 16,820,102 108—City of Ashland Annual Comprehensive Financial Report Page 116 of 194 Supplementary Information CITY OF ASHLAND, OREGON Combining Internal Service Fund Statement of Cash Flows For the Year Ended June 30, 2025 Insurance Health Service Benefits Equipment Fund Fund Fund Total Cash flows from operating activities: Receipts from customers and users $ 7,709 $ $ - $ 7,709 Receipts from interfund services 1,772,394 5,204,154 6,976,548 Payments to suppliers (1,106,260) (2,452,913) (3,559,173) Payments to employees (4,490) (47,264) (51,754) Net cash from operating activities 669,353 2,703,977 3,373,330 Cash flows from noncapital financing activities: Transfers In (Out) - (2,225,546) - (2,225,546) Net cash from noncapital financing activities (2,225,546) - (2,225,546) Cash flows from capital and related financing activities: Acquisition and construction of capital assets (2,773,219) (2,773,219) Net cash from capital and related financing activities (2,773,219) (2,773,219) Cash flows from investing activities: Interest from investments and other income 81,682 359,062 440,744 Net increase(decrease)in cash and investments 751,035 (2,225,546) 289,820 (1,184,691) Cash and investments,beginning of year 1,828,289 2,225,546 7,308,317 11,362,152 Cash and investments,end of year $ 2,579,324 $ - $ 7,598,137 $ 10,177,461 Reconciliation of operating income to net cash provided by operating activities: Operating income $ 425,881 $ $ 1,345,567 $ 1,771,448 Depreciation and amortization - 1,465,813 1,465,813 Change in assets and liabilities: (Increase)decrease in: Receivables 5 81,397 81,402 Net Pension Assets, Outflows/Inflows - (59,108) (59,108) OPEB, Outflows/Inflows - (19,259) (19,259) Inventories 253,433 (12,075) 241,358 Increase(decrease)in: Accounts payable and accrued liabilities (9,966) (116,070) (126,036) Other liabilities - 17,712 17,712 Net cash from operating activities $ 669,353 $ $ 2,703,977 $ 3,373,330 Schedule of non-cash capital and related financing activities: Unrealized gain (loss)on investments 1,786 6,046 7,832 Net noncash investing,capital and financing activities $ 1,786 $ $ 6,046 $ 7,832 109—City of Ashland Annual Comprehensive Financial Report Page 117 of 194 Supplementary Information CITY OF ASHLAND, OREGON Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Insurance Services Fund For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Total Actual Variance with Biennium Budget Amounts Actual Actual for Budget Final Budget Original Final FY 2023-24 FY 2024-25 Period Over/Under Revenues: Charges for services $ 3,393,052 $ 3,393,052 $ 1,875,033 $ 1,772,394 $ 3,647,427 $ 254,375 Interest on investments 16,000 16,000 64,802 81,682 146,484 130,484 Miscellaneous 40,000 40,000 133,547 7,703 141,250 101,250 Total revenues 3,449,052 3,449,052 2,073,382 1,861,779 3,935,161 486,109 Expenditures: Cost of services: Materials and services 3,056,418 3,056,418 1,342,267 1,354,216 2,696,483 359,935 Contingency 97,632 97,632 - - - 97,632 Total expenditures 3,154,050 3,154,050 1,342,267 1,354,216 2,696,483 457,567 Net change in fund balance 295,002 295,002 731,115 507,563 1,238,678 943,676 Fund balance,beginning 1,167,481 1,167,481 1,371,944 2,103,059 1,371,944 204,463 Fund balance,ending $ 1,462,483 $ 1,462,483 $ 2,103,059 $ 2,610,622 $ 2,610,622 $ 1,148,139 110—City of Ashland Annual Comprehensive Financial Report Page 118 of 194 Supplementary Information CITY OF ASHLAND, OREGON Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Health Benefits Fund For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Total Actual Variance with Biennium Budget Amounts Actual Actual for Budget Final Budget Original Final FY 2023-24 FY 2024-25 Period Over/Under Other financing sources(uses): Transfer Out $ $ (2,225,546) $ - $ (2,225,546) $ (2,225,546) $ Total other financing sources(uses) (2,225,546) (2,225,546) (2,225,546) Net change in fund balance (2,225,546) (2,225,546) (2,225,546) Fund balance,beginning 2,225,546 2,225,546 2,225,546 2,225,546 Fund balance,ending $ $ (2,225,546) $ 2,225,546 $ - $ - $ 2,225,546 111 —City of Ashland Annual Comprehensive Financial Report Page 119 of 194 Supplementary Information CITY OF ASHLAND, OREGON Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Equipment Fund For the Year Ended June 30, 2025 BN 2023-2025 First Year Second Year Total Actual Variance with Biennium Budget Amounts Actual Actual for Budget Final Budget Original Final FY 2023-24 FY 2024-25 Period Over/Under Revenues: Charges for services $ 9,663,862 $ 9,663,862 $ 4,821,126 $ 4,984,205 $ 9,805,331 $ 141,469 Interest on investments 200,000 200,000 384,736 359,062 743,798 543,798 Miscellaneous 154,000 154,000 66,200 138,552 204,752 50,752 Total revenues 10,017,862 10,017,862 5,272,062 5,481,819 10,753,881 736,019 Expenditures: Cost of services: Public Works-Maintenance 4,917,140 4,917,140 2,321,148 2,487,239 4,808,387 108,753 Public Works-Purchasing and Acquisition 7,963,000 7,963,000 2,607,214 2,663,150 5,270,364 2,692,636 Contingency 146,191 146,191 - - - 146,191 Total expenditures 13,026,331 13,026,331 4,928,362 5,150,389 10,078,751 2,947,580 Net change in fund balance (3,008,469) (3,008,469) 343,700 331,430 675,130 3,683,599 Fund balance,beginning 7,197,226 7,197,226 6,914,623 7,258,323 6,914,623 (282,603) Fund balance,ending $ 4,188,757 $ 4,188,757 $ 7,258,323 $ 7,589,753 $ 7,589,753 $ 3,400,996 Reconciliation to Net Position: Deferred Outflow -Pension $ 168,341 Deferred Outflow -OPEB 9,907 Capital assets,net 6,999,916 Accrued compensated absences (41,305) OPEB implicit rate liability (33,028) Net Pension liability (405,873) Deferred Inflow-Pension (73,852) Deferred Inflow-OPEB (4,379) Total Net Position $ 14,209,480 112—City of Ashland Annual Comprehensive Financial Report Page 120 of 194 Supplementary Information CITY OF ASHLAND, OREGON Capital Assets Used In the Operation of Governmental Funds By Source June 30, 2025 Governmental funds capital assets: Right to use lease assets $ 996,110 Right to use SBITA assets 717,698 Land 15,894,884 Buildings and improvements 48,612,363 Machinery and equipment 10,623,436 Improvements other than buildings 69,584,127 Construction in progress 8,819,273 Total capital assets $ 155,247,891 Investments in governmental funds capital assets by source: General and capital projects funds 77,193,855 Special revenue funds 62,804,004 Leased to other agencies 15,250,032 Total investments in governmental funds capital assets $ 155,247,891 This schedule represents only the capital asset balances related to governmental funds before accumulated depreciation and amortization. Accordingly,the capital assets reported in Internal Service Funds are excluded from the above amounts. Generally,the capital assets of internal service funds are included as the appropriate business activity or governmental activity in the Statement of Net Position. 113—City of Ashland Annual Comprehensive Financial Report Page 121 of 194 rn 4- 0 N N N O N N LO O) LO V O) 00 00 LO O_ N O co M ti O C~O � V 000 N CS) CS) O 00 OHO V O I— M N V CD O co I- 00 LO N r— CS) I— CO 00 00 N O V OL O O V N 00 CO N r- O N N LC) r- N — a N O) co00 N V V 00 N LO -0 co LO LO NT LO z 0 co co 00 00 NT c C u) CDCD 00 r— N CN 4) N CS) CS) co co � N N y+ O i cm CO CO V V � CO 00 � N N N CO 00 U U <19 Z C N 00 O) CO co N O N I— ti CO CO U ++ CO V N V LO O LO V V V V C _ cu C C y CO CS) M CS) CO O CO CS) CS) N co i V I— ti O) LO CZ) LO CO CO V E yt„� C V LO 00 00 O V V r- CO 00 = (U L I— O) V L co 00 LO LO 00 LO d - CO CO O O V CO CS) o s_ LO LO Cc) -0 E 0 m E 0 0 a> L o 00 co O 00 a) O co co ti ti O ti Cfl M M 00 O L(� O co co N N V I— coy LC) r- 00 N O) O O) C' 'a � V O 00 � C CZ) C O O O) O) ~ N cu cu U R ,� CO CO CO V CO co O) O O V CO - to Z 0 7 � V M O to 0 A-A CD = A � w CU W N eR O y E I-- N co CD N CO 00 00 CD CD N (U V CO CD0 CD (D I CO I-- co 00 00 00 CO CO >+ L(� N CS) CD co 00 N L(') co CS) CS) CS) I-- V co ++ a N ovCr -:, Co vrSti tiff Cr o NG� P N E C14 CO N 00N m O V V C14 V C O _ Vv as c� ai ti co co N ' a N c O �OO = o o .o (1) �' - o N �7 cLO o CU CD 000 � � coo o NT coo � � � a C N CO O N O O V V N N LC) CO 00 '(7 LL LO CO O O O 00 00 O) O) CO O V 0 00 ti LO CO ti 00 m ti 00 00 ti 00 a) o U c3 i LL J rn rn Cfl ao m LO LO — CO E .c Q � N O CV LO 00 L(� L O rV N 0 m cu 0 _0 t o v LO LO m > cu N 00 00 LO LO c o � � � pa N co co co coI� U Fu _ cu � �' �' u G o cu0 U N6 c6 (Q L N cu .CL R (U C Cam.) U N 0 C � � N C (U .0 d O >+ E C d U i C .U- (O (U R U CD C.) O (U 0) (U y (U 0) R Q E � � LL 0 c v R a> c >+ ?' ` 5 :U O a_ LE � �a � 0 � Cl) > � o 0 rn 4- 0 c o M O N N C M r � C N ^co LL c0 O (7 O tC N U t0 � H3 H3 t0 H3 H3 01 N C O � M W ry O ' H3 H3 � O � C p � ffj H3 O O O N (O c0 N O O O O cl U t0 W C t`O ffj ffj r Q C N Z p 0 o U Q O Q !2 N Q -a Q O O O Q U) m CL Q N LL N 0 p N o n tO C O LL � � N 0 C 0 0 N N� O O O N N O (O N 0 - N 7 V 7 N 7 O H3 H3 L Q 0 E N O EN � j N N 0 IAr, N N N N W to Qy O O O O O CJ O N O CJ O CJ O /) r, Cl) , -' o m d o W. `6 W. W. o W. W. `6 p a`3 m a`� U a`2 a��'i a`� o b3 b3 a��'i a`3 a��'i d d C7 K OTHER INFORMATION 116—City of Ashland Annual Comprehensive Financial Report Page 124 of 194 STATISTICAL SECTION - TOTAL REPORTING ENTITY (UNAUDITED) 117—City of Ashland Annual Comprehensive Financial Report Page 125 of 194 CITY OF ASHLAND, OREGON STATISTICAL SECTION Unaudited This part of the City of Ashland's comprehensive annual financial report presents detailed information as a context for understanding this year's financial statements,notes, and supplementary information.This information has not been audited by the independent auditors. Financial Trends Page These tables contain trend information that may assist the reader in assessing the City's current 119- 133 financial performance by placing it in historical perspective. Revenue Capacity These tables contain information that may assist the reader is assessing the viability of the 134- 142 City's revenue sources. Debt Capacity These tables present information that may assist the reader in analyzing the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the 143- 149 future. Economic and Demographic Information These tables offer economic and demographic indicators that are commonly used for financial 150- 151 analysis that can help the reader understand the City's present and ongoing financial status. Operating Information These tables contain service and infrastructure indicators that can help the reader understand how the information in the City's financial statements relate to the services the City provides and 152-156 the activities it performs. 118—City of Ashland Annual Comprehensive Financial Report Page 126 of 194 rn 4- 0 r- M . ' ' V . 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21 � N :9 d .�' t - :9 o d ,C :9 U y m O m (n d m o o n C7 .O •-- O X N m N (6 N O X > a_ a_ H H H Z Z ~ J d'(nQS � � H wa = aU D � w o O �+ M Statistical Section CITY OF ASHLAND,OREGON Fund Balances,Governmental Funds Last ten years For the year ended June 30 General Fund: 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Nonexpendable: Prepaid Items $ 133,032 $ 15,647 $ 729 $ 40,390 $ 17,246 $ - $ - $ - $ - $ Restricted for: Asset forfeiture 40,537 38,606 36,755 35,699 35,497 35,217 34,459 23,972 32,313 25,784 Grant restrictions 789,233 1,472,010 2,300,000 - - - - - - - Opioid Remediation 540,448 Transient occupancy tax- tourism - - 87,461 262,617 501,558 487,873 425,141 338,658 129,763 Library services - - - - - - - - Donor restrictions 22,235 22,235 22,235 22,235 22,235 22,235 22,235 22,235 22,235 22,235 Committed for: Parking surcharge 370,085 370,085 370,085 391,600 397,017 397,017 370,085 370,085 370,085 370,085 Public art 36,639 61,734 78,367 43,075 69,020 43,075 21,392 19,919 99,324 109,938 Future downtown parking supply - - - 693,292 573,166 413,558 241,326 - - - Affordable housing - - - - - - - - 166,351 166,351 Unassigned,reported in: General Fund 15,420,353 18,070,531 18,470,651 17,577,388 10,339,463 3,680,245 3,824,249 3,968,680 4,527,421 3,636,527 Total General Fund 17,352,562 20,050,848 21,278,824 18,891,140 11,716,261 5,092,905 5,001,619 4,830,032 5,556,387 4,460,683 Street Fund: Restricted for: System development charges - - 2,978,031 2,882,757 2,659,497 2,522,973 2,641,068 2,511,605 2,431,470 2,619,729 Committed reported in: Special revenue funds 4,151,861 4,435,636 1,818,354 2,653,184 1,212,943 (841,788) 2,174,869 2,323,501 3,231,966 2,795,238 Total Street Fund 4,151,861 4,435,636 4,796,385 5,535,941 3,872,440 1,681,185 4,815,937 4,835,106 5,663,436 5,414,967 Parks Fund: Committed reported in: Parks Activities - - - - - 1,362,768 1,107,369 788,308 386,186 313,140 Total Parks Fund - - - - - 1,362,768 1,107,369 788,308 386,186 313,140 All Other Governmental Funds: Nonexpendable: Cemetery perpetual care 995,101 970,773 946,762 930,895 917,499 954,825 984,914 970,304 955,357 944,552 Prepaid Items 4,760 4,760 Restricted for: System development charges 3,410,708 2,587,597 320,568 284,878 245,100 164,540 104,546 29,187 314,934 606,669 Transient occupancy tax- tourism 922,621 982,117 992,082 - - - - - - - Grantrestrictions 36,619 36,619 36,619 36,619 36,620 36,620 36,620 33,804 33,801 33,804 Airport activities 429,897 336,290 398,996 298,171 264,126 376,568 235,659 202,017 - 138,905 Debt service 1,097,851 1,046,738 1,041,894 1,009,803 987,974 1,037,697 1,035,856 1,027,297 976,090 1,028,912 Committed for: Committed for parks activities 3,339,322 3,571,252 3,973,973 1,978,495 1,891,310 1,596,623 1,428,986 981,826 852,407 1,536,623 Committed for affordable housing 127,476 252,642 240,123 280,661 128,254 109,079 69,986 - - Committed for food and beverage - - - - - - - - - Committedforfacilities 372,737 977,542 998,424 923,362 825,808 754,031 756,172 1,110,763 2,000,302 2,004,725 Special revenue funds - - - - - - 263,903 173,227 - Total all other governmental funds 10,737,092 10,766,329 8,002,679 4,811,989 4,379,192 4,075,158 3,667,825 3,648,797 4,350,761 5,349,638 Total governmental funds $ 32,241,515 $ 35,252,814 $ 34,077,888 $ 29,239,070 $ 19,967,893 $ 12,212,016 $ 14,592,750 $ 14,102,243 $ 15,956,770 $ 15,538,428 Fund Balance Comparison Governmental Funds $30,000,000 Last Ten Years $25,000,000 $20,000,000 $15,000,000 $ 50s,000,000 $- 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ■General Fund: ■Street Fund: ■Parks Fund: 131 -City of Ashland Annual Comprehensive Financial Report Page 139 of 194 rn 4- v O CO Lc) V V CD 0-) Cl) CD O 0-) O CO 0 N LD co I— Cl) A N L() co I� C) (.0 LD M M LC) C) V T Q O O LC) M r--- V M) (3) V O Cl M 0-) (.0V O LC) C) p (.0 V V M V M M r-- N N W r-- N CD - 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I� N N M CO LO M M I� M I� O I� N M LO N V Co m t� Q M 0) 0) 0) V C7 C7 V I� 0) LO I� O Co (fl LO75 N LO V N M CO I� N N � N Cl 0 N - U O C C � Q pN LL�'+t N V N LL LL N Cl) o w m n to o o R p m0 -o m .� LL w E O -p LL -0 � 26 v /� E (n C N C w -p U }' O O m -(7 LL LL 0 E w LL U Ncu - 2m w w wLL � � LL 0 W QCl) N M Li Li LL C N �- .Q Y C N N N N E m E- LU -o LL cn m m a E 0 LL ° LL U `m a� i m ° o E m ° w m /6 a` N .N .N E a` m U) o m N w U) m n o m n n m 3 to s E (n m U Q Q Y U U in U U Q m m Y E v m m `m o 0 o m 0 m cm 0 a) 0 0 0 0 v 3 1-- C) Cc U) U) Q U w n 0 � n � n n n w � U = w w U c LL O F Statistical Section CITY OF ASHLAND, OREGON Assessed and Estimated Actual Value of Taxable Property Last ten years - Unaudited Taxable ratio Fiscal Year (True Cash Ended Property Value to June 30, Real Property Mobile Home Personal (1) Utilities Total Tax Rate Assessed) 2025 $ 3,251,185,039 $ 8,726,283 $ 30,330,160 $ 37,921,561 3,328,163,043 4.29 62.8% 2024 3,165,332,262 8,446,257 32,092,317 40,734,095 3,246,604,931 4.29 57.2% 2023 3,060,020,771 8,204,099 29,932,643 43,807,000 3,141,964,513 4.29 55.8% 2022 2,957,535,236 7,927,850 32,239,590 43,250,100 3,040,952,776 4.36 68.1% 2021 2,849,800,218 7,695,981 37,736,900 40,040,300 2,935,273,399 4.36 65.7% 2020 2,745,946,271 7,428,132 39,388,970 39,719,700 2,832,483,073 4.47 65.2% 2019 2,648,762,575 7,176,174 40,011,240 42,200,100 2,738,150,089 4.43 69.5% 2018 2,550,677,170 6,701,376 37,518,450 38,356,118 2,633,253,114 4.44 66.9% 2017 2,458,564,994 6,700,924 37,949,290 34,169,600 2,537,384,808 4.40 68.2% 2016 2,367,355,356 6,526,881 40,417,280 31,573,600 2,445,873,117 4.41 70.0% All property is evaluated once every six years as required by state statute (1)Includes non-profit housing Source: Jackson County Assessor tax roll property values Real Property Value and Taxable Ratio $3,000,000,000 Last Ten Years 80.0% $2,500,000,000 70.0% 60.0% $2,000,000,000 - - — 50.0% $1,500,000,000 — 40.0% $1,000,000,000 30.0% 20.0% $500,000,000 10.0% $- 0.0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ®Total Property Taxable Ratio 134—City of Ashland Annual Comprehensive Financial Report Page 142 of 194 rn 4- 0 co N 0) co d H O 00 O O 15 N �- Z � (n U � U d' y�p -- - - O . U y (n E� O 0 a 0 U M M M M M M M M M M J O O O O O O O O O O Y 0 U ` ' UL N E N - - - - - - - - - - y C cr N 0o OZ O R 'a o (7 N w U M ri ri ri ri ri ri ri ri c�i W N COD K 0 o O R to d o H C. �+ Q Q N N N M M M M M M M M M - 11 O O O O O O O O O O C.to r.+ S w i g N d R y d ~ LL o 0 o a) c o o s �Q/ O 'a CDrn o 0 o v n rn n ~ } N N - - - - - - - - - O t 0 0_ cc y N N N N N N N N N - 0 — J Q 'a U y R o 0 U Q O v v v v v v v v v v U m 0 0 0 0 0 0 0 0 0 o p « o o O o O o O o O o O o (, o _ Y C ii U O N O U > U 4) �N _ O � N V V V V V V V V V V � L R « 0 R U W U o _ o 4) H � � L m Q 16 � i3 d V 0 U Q c O m n 0 O n C V O 3 R H O N Q y O w— O L Q O U 0 J O O V EH � 16 N y N N N N N N N N N N g p Q O V V V V V V � C O A a s m E o R3 R 8 O V mLQ I� (D O O O O O O O O O N a �p d 0 O O O O O O O O O O U O V N O W tD V O W N N N N — N N N N U �+ M T- Statistical Section CITY OF ASHLAND, OREGON Property Value and New Construction History Last ten years - Unaudited Commercial Construction Residential Construction Fiscal Year Property Number Number Ended June 30, Value(1) of Units Value of Units Value 2025 $ 3,328,163,043 2 $ 561,890 56 $ 13,757,591 2024 3,246,604,931 3 5,312,835 117 18,492,169 2023 3,141,964,513 4 5,246,940 49 15,808,170 2022 3,040,952,775 6 22,972,074 52 8,852,280 2021 2,935,273,399 8 38,688,145 182 28,399,687 2020 2,832,483,073 4 4,006,566 83 12,950,709 2019 2,738,150,089 3 3,576,094 94 15,513,154 2018 2,633,253,114 6 2,525,849 80 13,441,485 2017 2,537,384,808 7 31,479,266 70 13,313,136 2016 2,445,873,117 6 6,513,734 57 12,204,836 (1) Property value is assessed valuation Source: City of Ashland, Community Development Department Jackson County Assessor Commercial and Residential Construction Last Ten Years $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ■Commercial Construction ■Residential Construction 136—City of Ashland Annual Comprehensive Financial Report Page 144 of 194 Statistical Section CITY OF ASHLAND, OREGON Food and Beverage Tax Revenue by Fund (amounts expressed in thousands) Last ten years - Unaudited Fiscal Year Ended Capital June 30, General Fund Street Fund Improvement Wastewater Central Service Total Cumulative 2025 $ 60,721 $ 2,216,306 $ 759,009 $ $ $ 3,036,036 $ 34,345,563 2024 64,710 2,361,914 808,875 3,235,499 31,309,527 2023 59,290 - 2,905,207 2,964,497 28,074,029 2022 54,971 2,006,445 687,139 2,748,555 25,109,532 2021 - 1,815,932 621,894 49,752 2,487,577 22,360,977 2020 340,565 664,577 1,600,000 53,166 2,658,308 19,873,400 2019 645,685 803,844 1,600,600 64,308 3,114,437 17,215,092 2018 708,397 758,101 1,608,600 60,648 3,135,746 14,100,655 2017 255,202 709,000 2,004,952 60,586 3,029,740 10,964,909 2016 - 565,000 2,260,000 58,000 2,883,000 7,935,169 Food and Beverage Tax Revenues by Fund Last Ten Years $3,500,000 $3,000,000 $2,500,000 $2,000,000 0 0 $1,500,000 c $1,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ■General ■Street ■ CIP ■ Wastewater ■Central service 137—City of Ashland Annual Comprehensive Financial Report Page 145 of 194 Statistical Section CITY OF ASHLAND, OREGON Principal Property Tax Payers Current and ten years ago 2025 Assessed Percentage of Total Taxpayers Type of Business Valuation Valuation Pacific Rental Properties LLC Housing $ 52,938,890 1.69% Avista Corp Utility 14,726,794 0.47% Ashland Community Hospital Hospital 12,464,970 0.40% Charter Communications Utility 11,334,618 0.36% Ashlander Ashland LLC Housing 9,693,690 0.31% BHGAH AHH LLC Hospitality 9,278,670 0.30% Ashland Shopping Center Retail 8,049,710 0.26% Mark Antony Hist Propo LLC Hospitality 8,028,220 0.26% Skylark Real Property Group Assisted Care 7,912,390 0.25% Ayala Properties LLC Housing 8,023,310 0.26% All other 3,141,091,148 95.46% Total $ 3,283,542,410 100.00% 2025 Principal Property Taxpayers Assisted Care Hospital 5% 12% n6% 6*wq-jb'-k Housing 50% UJII y 18% Hospital p 90 ■ Housing ■ Hospital " Utility ■ Retail ■ Hospitality ■Assisted Care 138—City of Ashland Annual Comprehensive Financial Report Page 146 of 194 Statistical Section CITY OF ASHLAND, OREGON Principal Property Tax Payers Current and ten years ago 2016 Assessed Percentage of Total Taxpayers Type of Business Valuation Valuation Ronald L. Deluca Housing $ 11,047,590 0.48% Avista Corp. Utility 10,740,000 0.47% Ashland Community Hospital Hospital 9,014,730 0.39% Pacific Financial, Inc. Financial 7,003,110 0.30% Charter Communication Retail 6,215,400 0.27% Skylark Assisted Living Assisted Care 6,067,120 0.26% Ashland Shopping Center, LLC Retail 5,815,390 0.25% Mark Anthony Hist Prop LLC Hospitality 5,799,800 0.25% Bard's Inn Hospitality 5,471,920 0.24% Plaza Hospitality Hospitality 5,379,140 0.23% All other 2,236,765,195 96.86% Total $2,309,319,395 100.00% Source:Jackson County Assessor 2016 Principal Property Taxpayers Housing Hospitality 15% 23% Utility 15% Retail 17% Financial 10% Hospital Assisted Care 0 12% 8/o ■ Housing ■ Utility -Financial ■Assisted Care ■ Hospital - Retail ■ Hospitality 139—City of Ashland Annual Comprehensive Financial Report Page 147 of 194 Statistical Section CITY OF ASHLAND, OREGON Property Tax Levies and Collections Last ten years - Unaudited Fiscal Delinquent Percent of Percent of Year Percent of Tax Total Tax Outstanding Delinquent Ended Total Tax Levy Current Tax Levy Collections Total Tax Collections to Delinquent Taxes to Tax June 30, (1) Collections(2) Collected (2)(3) Collections Tax Levy Taxes Levy 2025 $ 14,512,131 $ 13,632,030 93.94% $ 230,437 13,862,467 95.52% 551,895 4% 2024 14,136,855 13,494,721 95.46% 280,390 13,775,111 97.44% 527,773 4% 2023 13,688,352 12,939,489 94.53% 302,764 13,242,253 96.74% 459,800 3% 2022 13,274,448 12,798,283 96.41% 277,348 13,075,631 98.50% 432,757 3% 2021 12,812,936 12,082,698 94.30% 703,713 12,786,411 99.79% 442,276 4% 2020 12,656,862 11,970,900 94.58% 283,003 12,253,903 96.82% 717,417 6% 2019 12,133,433 11,465,438 94.49% 300,603 11,766,041 96.97% 741,442 6% 2018 11,686,504 11,077,325 94.79% 270,018 11,347,343 97.10% 744,932 6% 2017 11,165,588 10,584,077 94.79% 292,706 10,876,783 97.41% 718,956 6% 2016 10,782,252 10,204,495 94.64% 303,781 10,508,276 97.46% 698,038 6% (1)Includes levy within the tax base,levy for bonded indebtedness,miscellaneous assessment payments in lieu of tax, and tax levy shared offsets (2)Includes adjustments,rounding and discounts (3)Delinquent taxes collected represent accumulative amounts for the specific fiscal year Property Tax Levies and Collections $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 — — 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ■Total Tax Levy ■Total Tax Collection 140—City of Ashland Annual Comprehensive Financial Report Page 148 of 194 rn O O_ M M M M 4- Ln 00 I— � O Lo w 0 00 M O I� M N M M Co M w 00 to Ln M � M O m N N N N N N N M r H 0 0) co EFT M Lo r— O M Lo � M N f6 ~ N N N N N N N N N U) a) w y w C N i C N N N 7 L m o m N cy) O o0 M o0 I— F 00 (0 00 00 Co N 00 O N N f6 C f6 7 .f6 ER Q Q Z Z �+ LO V M N O o0 M N N N N N Co w N N N N N N N CO 0) N Cs L1 7 L1 Z Z Lo V O Lo Co M M M M M M i y N � f6 f6 t V ER d U) CO Z = _ Z (o Lo Lo m r— Lo m Co N Lo O . 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W C) LO V CO N O 62 C2 \V U U N O ¢ a a M N N N N N N O O O O 2 O -O -O i LL co Statistical Section CITY OF ASHLAND, OREGON Ratio Of Annual Debt Service Expenditures For General Bonded Debt To Total General Expenditures Last ten years - Unaudited Total General Ratio of Debt Service to Fiscal Year Ended Total Debt Governmental General Governmental June 30, Principal Interest Service(1) Expenditures Expenditures 2025 $ 1,515,000 $ 72,340 1,587,340 $ 50,057,131 3.2% 2024 1,465,000 112,371 1,577,371 60,143,657 2.6% 2023 1,430,000 149,454 1,579,454 44,923,232 3.5% 2022 1,405,000 188,179 1,593,179 43,431,743 3.7% 2021 1,375,000 214,241 1,589,241 37,740,415 4.2% 2020 1,590,000 267,623 1,857,623 38,623,257 4.8% 2019 1,555,000 295,651 1,850,651 40,588,484 4.6% 2018 1,455,000 318,747 1,773,747 37,564,475 4.7% 2017 1,485,000 375,091 1,860,091 36,555,232 5.1% 2016 1,445,000 418,422 1,863,422 36,033,961 5.2% (1) Includes General, Special Revenue Funds, and Debt Service Funds Ratio of Debt Service to General Governmental Expenditures Last Ten Years 2.0°% 1.0°% 0.0% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 144—City of Ashland Annual Comprehensive Financial Report Page 152 of 194 Statistical Section CITY OFASHLAND, OREGON Pledged Revenue Coverage Water and SDC Water Funds Last ten years - Unaudited Debt Service Requirements(4) Fiscal Year Net Revenues Ended June Gross Operating Available for 30, Revenues(l) Expenses(2) Fund Balance Debt Service Principal Interest Total Coverage 2025 $ 10,708,028 $ 9,521,978 $ 19,768,252 $ 20,954,302 $ 539,548 $ 146,149 685,697 3.27% 2024 8,821,965 7,206,814 18,582,202 20,197,353 279,678 50,652 330,330 1.64% 2023 9,138,264 9,318,155 16,220,569 16,040,678 571,736 112,702 684,438 4.27% 2022 8,741,494 7,188,052 12,889,481 14,442,923 557,106 124,432 681,538 4.72% 2021 9,473,981 6,568,759 10,850,466 13,755,688 786,863 138,382 925,245 6.73% 2020 8,846,790 8,554,214 10,495,072 10,787,648 781,636 209,398 991,034 9.19% 2019 8,791,274 9,657,102 9,432,722 8,566,894 479,713 137,914 617,627 7.21% 2018 8,290,162 6,520,984 - 1,769,178 464,164 150,069 614,233 34.72% 2017 7,756,012 4,706,339 3,049,673 453,835 161,855 615,690 20.19% 2016 7,289,715 4,225,107 3,064,608 443,717 173,330 617,046 20.13% (1) Total operating revenues, including System Development Charges (2) Total operating expenses, not including interfund loans,capital outlay,existing debt, and franchise taxes paid (3) Gross revenues in excess of those necessary to meet current debt service obligations by covenant available to assure coverage in future fiscal periods (4) Includes pledged revenue debt principal and interest amounts transferred to registered paying agent irrespective of actual bond maturities 145—City of Ashland Annual Comprehensive Financial Report Page 153 of 194 Statistical Section CITY OF ASHLAND, OREGON Ratios of Outstanding Debt by Type Last ten years Governmental Activities Notes and Contracts Fiscal Year Ended June General Obligation Percent of Pledged Revenue 30, Bonds Assessed Value Promissory Notes Debt Leases SBITA Per Capita(2) 2025 $ 1,425,000 0.040/c $ 1,373,336 $ 4,565,216 $ 629,886 $ 486,066 392.95 2024 2,940,000 0.090/c 1,649,393 4,028,789 - - 401.03 2023 4,405,000 0.140/c 1,316,000 - 266.28 2022 5,835,000 0.19O/C 1,567,000 343.42 2021 7,240,000 0.250/c 1,817,000 429.14 2020 8,615,000 0.300/c 2,065,000 509.54 2019 10,205,000 0.370/c 2,311,000 601.30 2018 11,760,000 0.450/c 2,591,936 693.33 2017 13,395,000 0.530/c 1,104,821 703.19 2016 14,880,000 0.610/c 1,251,707 790.58 Business-Type Activities Fiscal Year Ended June General Obligation Percent of Pledged Revenue 30, Bonds Assessed Value Debt and Notes DEQ(3)Loans Per Capita(2) 2025 $ 740,000 0.020/c $ 7,704,849 $ 8,544,951 787.33 2024 970,000 0.030/c 8,208,279 8,151,113 806.39 2023 1,195,000 0.040/c 9,399,881 7,019,358 819.84 2022 1,605,000 0.050/c 7,460,449 3,038,316 561.56 2021 2,005,000 0.070/c 7,689,268 2,474,552 576.58 2020 5,721,796 0.200/c 7,913,589 2,303,488 760.44 2019 7,607,299 0.280/c 6,983,538 2,518,974 821.99 2018 9,429,200 0.360/c 5,406,100 2,149,744 820.53 2017 11,077,669 0.440/c 4,634,074 2,062,878 932.06 2016 12,777,871 0.520/c 4,628,555 1,812,747 941.89 Total Outstanding Debt Fiscal Year Debt as a Ended June Total Outstanding Personal Income Percentage of 30, Debt (4) Personal Income 2025 $ 25,469,304 unavailable N/A 2024 25,947,574 unavailable N/A 2023 23,335,238 1,140,759,000 2.00/c 2022 19,505,765 1,106,035,000 1.8O/C 2021 21,225,820 1,305,836,000 1.60/c 2020 26,618,873 998,618,000 2.70/c 2019 29,625,811 961,355,000 3.10/c 2018 31,336,980 953,023,000 3.30/c 2017 32,274,442 908,939,000 3.60/c 2016 35,350,879 829,501,000 4.30/c (1) OECDD-Oregon Economic and Community Development Department (2) Per Capita is calculated using the total debt for the category divided by population shown on Ratio ofNet General Obligation Bonded Debt to Assessed Value Schedule (3) DEQ-Oregon Department of Environmental Quality (4) Oregon Department of Revenue Personal Income Tax Statistics-2024,2025 not yet available 146-City of Ashland Annual Comprehensive Financial Report Page 154 of 194 7 . . . / _co .0 \ CD 2 0 _ c ell � � » \ � 0 _ a e I (15 CD CD CN k \ / \ \ , , , , , , \ \ e " q CO co . . . / CD CS5 CDa 7 - 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CD \ 4.1 0 - - - - m• k 2 � _ _ - _ m ƒ mLO ® / o - kLL co cq CD . . . CN CD CD cq CD 2 a - - ^ LL ■ m / z z .> ■ c CN CD . . .LO CD CD 0 , CD LO CD coco [ LO 0 U 22 co CD . . .CD CD _ , c C�j_ _ _ c c CD -zd-co L ® . « O 2 V 2 @ cnw ,t o , _ , , 2 o Q mu 2 - / E cn } m _ c 2 j ( j A \ ] § 2 = J» = / A 2 / 0 ] \ Statistical Section CITY OF ASHLAND, OREGON COMPUTATION OF LEGAL DEBT MARGIN June 30, 2025 - Unaudited True cash value $ 5,284,425,918 3%of true cash value 0.03 $ 158,532,778 NET BONDED DEBT: Gross bonded debt 2,165,000 Less amounts exempted: Water - Water re-funding - Total debt applicable to margin 2,165,000 LEGAL DEBT MARGIN $ 156,367,778 ORS 287.004 provides a debt limit of three percent of the true cash value of all taxable property within the Municipality's boundaries. According to ORS 287.004, the three percent limitation does not apply to bonds issued for water, sanitary or storm sewers, sewage disposal plants, hospitals, power or lighting purposes, nor to bonds issued pursuant to applications to pay assessments for improvements or installments for benefited property owners. Source: Jackson County Assessor's Office Audited Financial Statements Oregon Revised Statutes (ORS)287.004 148—City of Ashland Annual Comprehensive Financial Report Page 156 of 194 Statistical Section CITY OF ASHLAND, OREGON Computation Of Direct And Overlapping Bonded Debt June 30, 2025 - Unaudited Net General Obligation Bonded Debt Percentage Applicable Amount Applicable Jurisdiction Outstanding to City(1) to City Direct: City of Ashland-Governmental Activities only $ 8,479,504 100.00% $ 8,479,504 Overlapping: Jackson County 2,326,153 11.83% 275,184 School District#5 72,928,102 78.71% 57,401,709 Rogue Community College 3,569,823 8.70% 310,575 Southern Oregon ESD 796,731 7.08% 56,409 Jackson County Housing Authority 700,474 11.83% 82,866 Rogue Valley Transit District 4,306 15.53% 669 80,325,589 58,127,411 $ 88,805,093 $ 66,606,914 (1) Percentage of overlap is calculated on real market value. Source: State of Oregon, Office of Treasurer-overlapping debt report, debt for governmental activities only Direct Bonded Debt for Governmental Activities and Applicable Overlapping Debt Direct:, $8,479,504 Overlapping:, $58,127,411 ■ Direct: ■Overlapping: 149—City of Ashland Annual Comprehensive Financial Report Page 157 of 194 Statistical Section CITY OF ASHLAND, OREGON Principal Employers Current and ten years ago 2025 Percentage of Total City Employer Employees Employment Southern Oregon University 1139 10.5% Oregon Shakespeare Festival 433 4.0% Ashland Public Schools 337 3.1% Asante Ashland Community Hospital 188 1.7% City of Ashland 270 2.5% Subtotal 2,367 22% Estimated Total City Employment 10,830 2016 Percentage of Total City Employer Employees Employment Southern Oregon University 784 7.62% Oregon Shakespeare Festival 676 5.59% Ashland Community Hospital 290 3.05% City of Ashland 305 2.54% Subtotal 2,055 26.99% Estimated Total City Employment 7,614 Source: Employer listed and Ashland Chamber of Commerce Your Chamber-Ashland's Economy 150—City of Ashland Annual Comprehensive Financial Report Page 158 of 194 Statistical Section CITY OF ASHLAND, OREGON Demographic Statistics Last ten years - Unaudited Fiscal Year Jackson County Ended Percentage Per Capita Total Personal School Enrollment Unemployment Rate June 30 Population(1) Change Income Income(2) (3) (4) 2025 21,579 0.44% N/A Unavailable 2,549 5.80k 2024 21,490 0.02% N/A Unavailable 2,576 4.90k 2023 21,485 0.37% N/A Unavailable 2,557 4.30k 2022 21,405 0.15% 51,672 1,106,035,000 2,897 4.40k 2021 21,374 1.98% 61,095 1,305,836,000 3,022 5.90k 2020 20,960 0.70% 47,644 998,618,000 2,992 10.3% 2019 20,815 0.56% 46,186 961,355,000 2,976 4.60k 2018 20,700 0.39% 46,040 953,023,000 2,940 4.70k 2017 20,620 1.05% 44,080 908,939,000 2,921 4.80k 2016 20,405 0.32% 40,652 829,501,000 2,883 6.20k Sources: (1) Center for Population and Research and Census,Portland State University (2) Adjusted Gross Income from Oregon Department of Revenue (3) Oregon Department of Education (4)US Bureau of Labor Statistics as of June Population Growth Last Ten Years 22,000 21,000 20,000 19,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 151 —City of Ashland Annual Comprehensive Financial Report Page 159 of 194 Statistical Section CITY OF ASHLAND, OREGON SCHEDULE OF MAJOR INSURANCE IN FORCE as of 71112025 Company Coverage Policy Period Annual Aggregate/Each Premium Occurrence City County Insurance Services General Liability $467,364.65 Commercial General Liability 07/01/2025-07/01/2026 $15,000,000/$5,000,000 Included above Public Officials Liability 07/01/2025-07/01/2026 $15,000,000/$5,000,000 Included above Employment Practices 07/01/2025-07/01/2026 $15,000,000/$5,000,000 Included above Automobile Liability $44,158.76 Scheduled Autos 07/01/2025-07/01/2026 None/$5,000,000 Included above Hired Autos/Non Owned 07/01/2025-07/01/2026 None/$5,000,000 Included above Uninsured Motorist 07/01/2025-07/01/2026 None/$5,000,000 Included above Auto Physical Damage $84,602.53 Scheduled Autos 07/01/2025-07/01/2026 Per Filed Value Included above Rented or Leased 07/01/2025-07/01/2026 Per Filed Value Included above Newly Acquired Autos 07/01/2025-07/01/2026 Per Filed Value Included above Property $278,153.85 Buildings 07/01/2025-07/01/2026 Per Filed Value Included above Mobile Equipment 07/01/2025-07/01/2026 Per Filed Value Included above Boiler and Machinery 07/01/2025-07/01/2026 Replacement Cost of Machinery& Included above Equipment not covered elsewhere Cyber Security 07/01/2025-07/01/2026 Per Loss/$50,000 $7,500.00 Excess Earthquake 07/01/2025-07/01/2026 Each Occur.$5,000,000 $31,500.00 Excess Flood 07/01/2025-07/01/2026 Each Occur.$5,000,000 $5,250.00 Travelers Casualty Ins Co of America Crime(3-yr policy)$14,037 07/01/2025-07/01/2028 $1,000,000 $4,679.00 ACE Property Casualty Ins Co Airport Liability (3-yr policy)$10,554 07/01/2025-07/01/2028 $4,000,000/$4,000,000 $3,518.00 Wright National Flood Ins.Co. Flood 10/23/2024-10/23/2025 $263,000 $1,068.00 SAIF Corporation Workers'Compensation 07/01/2025-07/01/2026 $1,000,000 $440,725.48 Excess Workers'Compensation 07/01/2025-07/01/2026 $400,000 $6,000.00 Safety National Casualty Corp. Bond Philadelphia Indemnity Ins Co Volunteer Accident Ins 07/01/2025-07/01/2026 $100,000 max medical expense $1,601.00 ACE Group Underground Storage Tank Pollution 07/01/2025-07/01/2026 $2,000,000/$1,000,000 $2,111.00 Liability Estimated payroll 152—City of Ashland Annual Comprehensive Financial Report Page 160 of 194 rn 4- 0 a� O O O Lo Lo Ln O Lo O O O O O O O O O O O Lo O Lo O Lo co O O O I� r--: O � (O � O Cl? O O LC? O O O O I� O N O N D- Cl) N Cl) OO O V N (O I— O I-- I-- Lf) V M Lf) V V DO N C N N N O O O Lf) Lf) Lf) O Lf) O O O O O O O O O O O Lf) O Lf) O Lf) O O O I� � O � (O [-� O Cl? O O LC? 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LL fVA/ � Statistical Section CITY OF ASHLAND, OREGON OPERATING INDICATORS BY FUNCTION 1 PROGRAM Last ten years Function/Program 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Police Physical arrests,juvenile and adult 1,049 1,326 1,027 635 1,068 1,448 2,056 2,439 2,083 2,042 Traffic violations 1,347 1,175 756 487 1,001 1,737 2,830 2,849 2,155 2,065 Fire Fire alarm responses 108 904 104 92 223 1,119 1,024 994 1,004 819 Emergency medical responses 4,801 2,034 4,171 3,669 3,337 2,779 2,776 2,873 2,900 2,718 Non-emergency public service responses 585 2658 164 581 415 364 355 316 274 248 Fire&Life Safety code enforcements 196 392 328 624 1,299 600 616 746 486 507 Total calls for service 6,123 5,611 5,470 4,966 4,310 4,262 4,155 4,183 4,178 4,063 Total ambulance patient transports 3,829 3,763 3,239 2,749 2,341 1,967 2,016 2,069 1,972 1,942 Water Service connections 9,231 9,155 9,945 9,167 9,453 9,342 9,239 8,841 9,155 7,689 Daily average consumption in millions of gallons 3.17 2.96 3.43 2.84 2.80 3.00 3.00 3.00 2.70 4.10 Maximum daily capacity of plant in million gallons 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 Sewer Service connections 9,211 8,927 8,867 8,670 8,787 8,551 8,426 8,440 8,394 8,414 Daily average treatment in million of gallons 1.89 1.89 2.17 2.10 2.10 2.10 2.10 2.15 2.20 2.20 Maximum daily capacity in millions of gallons 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 Electric Service connections 12,504 12,410 12,424 12,402 13,505 13,249 13,205 12,817 11,864** 12,706 Telecommunications Cable TV 0 0 659 808 892 973 1,000 1,125 1,200 1,350 Cable modem 4,233 4,050 4,101 4,142 4,098 4,021 4,002 3,884 3,800 3,833 Potential station capacity 140 140 140 140 140 140 140 140 140 140 **Actual service connections,previous information provided was by billed services 154-City of Ashland Annual Comprehensive Financial Report Page 162 of 194 Statistical Section CITY OF ASHLAND, OREGON CAPITAL ASSETS AND INFRASTRUCTURE STATISTICS BY FUNCTIONIPROGRAM Last ten years Function/Program 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Police Stations 1 1 1 1 1 1 1 1 1 1 Contact station 1 1 1 1 1 1 1 1 1 1 Patrol units(vehicles) 11 9 8 8 8 8 8 8 8 8 Sworn officers 27 31 29 28 29 29 30 32 28 28 Fire Stations 2 2 2 2 2 2 2 2 2 2 Firefighters 34 33 30 32 28 29 30 30 30 26 Streets' Miles of paved streets 98.03 96.41 96.19 95.94 94.64 93.84 93.84 93.84 93 93 Miles of gravel streets 6.29 7.79 7.99 8.24 9.54 9.54 9.54 9.54 10 10 Miles of storm sewers 95.63 95.42 95.39 95.39 95.27 94.54 94.54 94.54 94 94 Water Miles of water mains 135.34 135.18 134.85 134.84 134.69 133.5 132.9 133 132 132.76 Hydrants 1298 1296 1292 1,290 1,288 1,281 1,269 1266 1263 1263 Water treatment plant 1 1 1 1 1 1 1 1 1 1 Sewer Miles of sanitary sewers 113.68 113.68 113.33 113.33 113.24 113 110 111.7 110 110 Treatment plant 1 1 1 1 1 1 1 1 1 1 Identifies integration of Cartegraph System with GIS that has provided more accurate figures 155-City of Ashland Annual Comprehensive Financial Report Page 163 of 194 Statistical Section CITY OF ASHLAND,OREGON CAPITAL ASSETS AND INFRASTRUCTURE STATISTICS BY FUNCTION/PROGRAM Last ten years(continued) Function/Program 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Electric Street lights 1,973 1,965 1,957 1,956 1,948 1,927 1,888 1,884 1,865 1,865 Electrical transformers 2,262 2,245 2,241 2,230 2,119 2,099 2,087 2,071 2,052 2,049 Poles 3,619 3,618 3,609 3,607 3,605 3,603 3,603 3,601 3,600 3,600 Substations 3 3 3 3 3 3 3 3 3 3 Telecommunications Miles of fiber 82 75 65 65 60 60 60 60 25 25 Miles of coax 125 125 125 125 119 119 119 119 119 119 Parks and Recreation Community centers 3 3 3 3 3 3 3 3 3 3 Parks 20 20 18 18 18 18 18 18 19 19 Park acreage 811 811 797 797 797 797 797 772 772 831 Golf courses 1 1 1 1 1 1 1 1 1 1 Swimming pools 1 1 1 1 1 1 1 1 1 1 Ice skating rinks 1 1 1 1 1 1 1 1 1 1 Skateboard parks 1 1 1 1 1 1 1 1 1 1 Tennis courts 8 8 7 7 7 11 12 12 12 12 Trails(miles) 54 53 8 8 8 48 48 48 48 41 Health Care Hospital 1 1 1 1 1 1 1 1 1 1 Hospital beds 49 49 49 49 49 49 49 49 49 49 Education Elementary schools 4 4 4 4 4 4 4 4 4 4 Secondary schools 2 2 2 2 2 2 2 2 2 2 State universities 1 1 1 1 1 1 1 1 1 1 156—City of Ashland Annual Comprehensive Financial Report Page 164 of 194 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS 157—City of Ashland Annual Comprehensive Financial Report Page 165 of 194 Audit Comments and Disclosures Required by State Regulations Oregon Administrative Rules 162-10-0000 through 162-10-0330, the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy, enumerate the financial statements, schedules, comments, and disclosures required in audit reports. The required financial statements and schedules are set forth in preceding sections of this report. Required comments and disclosures related to the audit of such statements and schedules are set forth following. 158—City of Ashland Annual Comprehensive Financial Report Page 166 of 194 Audit Comments and Disclosures Required by State Pe ulations 04- Report of Independent Auditors Required by Oregon State Regulations The Mayor and City Council City of Ashland, Oregon We have audited, 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 the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Ashland, Oregon (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 of Ashland, Oregon's basic financial statements, and have issued our report thereon dated November 26, 2025. Compliance As part of obtaining reasonable assurance about whether the City's basic financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, including provisions of Oregon Revised Statutes (ORS) as specified in Oregon Administrative Rules (OAR) 162-010-0000 to 162-010-0330, of the Minimum Standards for Audits of Oregon Municipal Corporations, 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. We performed procedures to the extent we considered necessary to address the required comments and disclosures which included, but were not limited to, the following: • Accounting records and internal control • Public fund deposits • Indebtedness • Budget • Insurance and fidelity bonds • Programs funded from outside sources • Highway funds • Investments • Public contracts and purchasing Baker Tilly Advisory Group, LP and Baker Tilly US,LLP,trading as Baker Tilly,are members of the global network of Baker Tilly International Ltd.,the members of which are separate and independent legal entities.Baker Tilly US,LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. 159—City of Ashland Annual Comprehensive Financial Report Page 167 of 194 Audit Comments and Disclosures Required by State Regulations In connection with our testing, nothing came to our attention that caused us to believe the City was not in substantial compliance with certain provisions of laws, regulations, contracts, and grant agreements, including the provisions of ORS as specified in OAR 162-010-0000 through 162-010- 0330 of the Minimum Standards for Audits of Oregon Municipal Corporations. 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 have not been identified. 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. Accordingly, this communication is not suitable for any other purpose. This report is intended solely for the information and use of the City Council members and management of the City and the Oregon Secretary of State and is not intended to be and should not be used by anyone other than these parties. oe v�� Amanda Moore, Principal, for Baker Tilly US, LLP Medford, Oregon November 26, 2025 160—City of Ashland Annual Comprehensive Financial Report Page 168 of 194 GOVERNMENT AUDITING STANDARD COMPLIANCE REPORT 161 —City of Ashland Annual Comprehensive Financial Report Page 169 of 194 Government Auditing Standard Compliance Report CC bakertitty Report of Independent Auditors on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The Mayor and City Council City of Ashland, Oregon 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 (Government Auditing Standards), the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Ashland, Oregon (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 of Ashland, Oregon's basic financial statements, and have issued our report thereon dated November 26, 2025. 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. Baker Tilly Advisory Group, LP and Baker Tilly US,LLP,trading as Baker Tilly,are members of the global network of Baker Tilly International Ltd.,the members of which are separate and independent legal entities.Baker Tilly US,LLP is a licensed CPA firm that provides assurance services to its clients.Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. 162—City of Ashland Annual Comprehensive Financial Report Page 170 of 194 Government Auditing Standard Compliance Report 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. gW441L Medford, Oregon November 26, 2025 163—City of Ashland Annual Comprehensive Financial Report Page 171 of 194 Communications with the City Council City of Ashland, Oregon June 30,2025 C bakertitty Page 172 of 194 CO bakertitty Communications with the City Council To the City Council City of Ashland, Oregon We have audited the financial statements of City of Ashland, Oregon (the "City") as of and for the year ended June 30, 2025, and have issued our report thereon dated November 26, 2025. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under Auditing Standards Generally Accepted in the United States of America; Government Auditing Standards,issued by the Comptroller General of the United States; and Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Oregon Secretary of State As stated in our engagement letter dated August 26, 2025, we are responsible for forming and expressing an opinion about whether the financial statements that have been prepared by management, with your oversight, are prepared, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit in accordance with auditing standards generally accepted in the United States of America (U.S. GAAS), the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Oregon Secretary of State and to design the audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free from material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, we considered City's internal control solely for the purposes of determining our audit procedures and not to provide assurance concerning such internal control. We are also responsible for communicating significant matters related to the financial statement audit that, in our professional judgment, are relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. The supplementary information was subject to certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves. Baker Tilly Advisory Group, LP and Baker Tilly US,LLP,trading as Baker Tilly,are members of the global network of Baker Tilly International Ltd.,the members of which are separate and independent legal entities.Baker Tilly US,LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. 1 Page 173 of 194 Other Information Included in the Annual Report Management is responsible for the other information included in the Annual Comprehensive Financial Report. The other information comprises the introductory and statistical sections but does not include the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon. Our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the audited financial statements. We have read the information, and nothing came to our attention that caused us to believe that such information is materially inconsistent with the financial statements. Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you in the engagement letter aside from releasing the single audit, which is delayed until the U.S. Office of Management and Budget publish the current compliance supplement. Significant Audit Findings and Issues Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. The City implemented the following new accounting standards of the Governmental Accounting Standards Board (GASB): GASB 101 —Compensated Absences, which updates the recognition and measurement guidance for compensated absences. This increased the City's compensated absence liability to include sick leave. GASB 102—Certain Risk Disclosures, which improves disclosures to provide users with timely information regarding certain concentrations or restraints. The updated disclosures are reflected in the City's financial statements. Significant Accounting Estimates 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 financial statements were: Useful lives of capital assets Estimated liabilities for claims and judgments Post-employment benefit liability for retirement and health benefits Lease and Subscription-Based IT Arrangements Compensated Absences 2 Page 174 of 194 Financial Statement Disclosures The disclosures in the financial statements are consistent, clear, and understandable. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were: The disclosure of the reporting entity and significant accounting policies in Note I to the financial statements. This disclosure reports the operations under the governance of the elected City Council, as well as the more significant policies used by the City in the preparation of the financial statements. The disclosure of cash and investment details in Note III.A to the financial statements. This disclosure provides the details of the amounts of cash and investments held in the various types of depositories and securities at year-end, as well as the details of the nature of the inherent risks the City is subject to. The disclosure of the City's long-term debt in Note III.E to the financial statements. This disclosure provides the details of the amounts and types of debt outstanding at year end, along with the repayment terms, significant covenants, and future maturities of principal and interest. Disclosure of post-employment healthcare benefits in Note IV.B to the financial statements. This required disclosure includes details on the post-retirement health care benefits the City provides its employees. The recorded liabilities for benefits included in the financial statements are an estimate based on assumptions regarding future healthcare trend rates and discount rates that attempt to match anticipated returns on the cash and investment resources used to make benefit payments, and many other actuarial assumptions. Disclosure of pension liability in Note IV.0 to the financial statements. This required disclosure includes details on the pension the City provides its employees. The recorded liabilities for benefits included in the financial statements are an estimate based on assumptions regarding future personnel costs and discount rates that attempt to match anticipated returns on the cash and investment resources used to make benefit payments, and many other actuarial assumptions. Significant Unusual Transactions We encountered no significant unusual transactions during our audit of the City's financial statements. Significant Difficulties Encountered in Performing the Audit Professional standards require us to inform you of any significant difficulties encountered in performing the audit. No significant difficulties were encountered during our audit of the City's financial statements. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as 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. No such disagreements arose during the course of our audit. Circumstances that Affect the Form and Content of the Auditor's Report There may be circumstances in which we would consider it necessary to include additional information in the auditor's report in accordance with U.S. GAAP. There were no circumstances that affected the form and content of the auditor's report. 3 Page 175 of 194 Corrected and Uncorrected Misstatements Professional standards require us to accumulate all factual and judgmental misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We did not note any corrected misstatements during the course of the engagement. Uncorrected Misstatements: The attached schedule summarizes uncorrected misstatements of the financial statements. Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements as a whole. Uncorrected misstatements, or matters underlying those uncorrected misstatements, as of and for the year ended June 30, 2025, could potentially cause future-period financial statements to be materially misstated, even though we have concluded that the uncorrected misstatements are immaterial to the financial statements under audit. Proposed Electric Fund Proposed Journal Entry#1 To record reversing effect of prior year adjustment to accounts receivable balance for receivables that should have been sent to collections in 2023/2024, but were recorded in 2024/2025. Net Position 81,120.00 Bad Debt Expense 81,120.00 Total 81,120.00 81,120.00 Proposed Journal Entry#2 To record effect of implementation of GASB 101,Compensated Absences. Net Position 87,745.00 Compensenated Absenses Expense 87,745.00 87,745.00 87,745.00 Telecommunication Fund Proposed Journal Entry#3 To record reversing effect of prior year adjustment to accounts receivable balance for receivables that should have been sent to collections in 2023/2024, but were recorded in 2024/2025. Net Position 14,560.00 Bad Debt Expense 14,560.00 Total 14,560.00 14,560.00 Proposed Journal Entry#4 To record effect of implementation of GASB 101,Compensated Absences. Net Position 16,960.00 Compensenated Absenses Expense 16,960.00 16,960.00 16,960.00 Governmental Activities Proposed Journal Entry#5 To record effect of implementation of GASB 101,Compensated Absences. a, Net Position 948,446.00 Compensenated Absenses Expense 948,446.00 Total 948,446.00 948,446.00 4 Page 176 of 194 Management Representations We have requested certain representations from management that are included in the management representation letter dated November 26, 2025. Management Consultation 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 Significant Audit Findings or Issues We are required to communicate to you other findings or issues arising from the audit that are, in our professional judgment, significant and relevant to your oversight of the financial reporting process. There were no such items identified. This information is intended solely for the 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. Medford, Oregon November 26, 2025 5 Page 177 of 194 Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. Page 178 of 194 W§HLAND December 3,2025 The Municipal Audit Committee was established bythe City Council to perform certain tasks relating to the annual audit. In fulfilling its responsibilities,the Committee participates in selecting the City's auditor on a regular basis. The Committee interviews qualified, independent certified public accountants and discusses the overall scope and specific plans for the audit.The Committee also recommends which municipally-certified individual or firm is to be engaged as the City's auditor by the City Council. At the conclusion of the annual audit,the Committee meets with the CWs auditor to discuss the results of their audit and their evaluation of the City's financial reporting. The Committee also discusses the financial accounting and reporting processes with the City's auditor, including the preparation of the financial statements, safeguarding of assets and other resources against unauthorized acquisition, use or disposition, and other required accounting issues. After receiving the annual report and related documentation from the auditor and staff, evaluating the information, and considering the potential for changes, the Committee makes the recommendation to the elected body on acceptance of the annual report and changes deemed appropriate through the process. Based upon the above,we accept the 2025 Annual Comprehensive Financial Report and the related audit reports of the independent certified public accountants for the City of Ashland and recommend that the respective Annual Report and auditor's reports be accepted by the City Council. Respectfully submitted, The Municipal Audit Committee e Clarice Avis;,Large Member at Large Thor Morris,Member at Large Linda Ada s,Budget Liaison D hle Alissa KOloaz[nskl, Representing Budget Committee City Council Liaison City Recorder/ Ex-OfPicio Member Finance Department Tel:541-488-5300 Bryn Morrison,Interim Director TTY: 800-735-2900 20 East Main Street Ashland,Oregon 97520 ashlandoregon.gov Page 179 of 194 VI Council Study Session Dat December 15, 2025 Commission &Committee Workplans & Updates 2025/2026 City Manager's Office Sabrina Cotta TIME ESTIMATE 60 minutes CATEGORY Staff Direction - provide direction to staff on the body's desired next steps. SUMMARY This is a review of all the Standing Advisory Committees. Standing Advisory Committees include Social Equity and Racial Justic Advisory Committee (SERJ), Housing and Human Services Advisory Committee (HHSAC), Public Arts Advisory Committee (PAAC), Historic Preservation Advisory Committee (HPAC), Climate & Environment Policy Advisory Committee (CEPAC), Transportation Advisory Committee (TAC). The Planning Commission has also provided an update POLICIES, PLANS & GOALS SUPPORTED • Excellence in governance and City services • Respect for the citizens we serve, for each other and for the work we do BACKGROUND AND ADDITIONAL INFORMATION The following information has been provided by the Committees and Commissions on accomplishments and future goals: Social Equity and Racial Justice Advisory Committee 2025 Accomplishments The Social Equity and Racial Justice Advisory Committee (SERJAC) completed or advanced the following items from its 2025 Work Plan: Cross-Committee Collaboration • Established SERJAC liaison assignments for each committee member with other City of Ashland boards and commissions for ongoing collaboration and support. SERJAC is modeling collaboration among committees. • Reviewed liaison updates and cross-committee issues at each regular SERJAC meeting. • Worked with Public Arts Committee on unveiling of Playwrights' Walk plaque by Micah Blacklight for Lorraine Hansberry at Railroad Park. Hosted Micah Blacklight presentation of Ancestors' Call sculpture, made plans to support its installation in 2026. The intent is to establish a permanent replacement for the t-shirt memorial at Railroad Park. City Partnerships &DEI Framework • Followed up with the City Manager's Office regarding next steps outlined in the 2024 City of Ashland Diversity, Equity, and Inclusion Assessment. • Provided additional feedback on equity issues on Climate Friendly Areas. Page 1 of 13 Page 180 of 194 VI Council Studv Session • Welcomed three new members and elected a new co-chair. Community Engagement& Partnerships • Continued building and maintaining relationships with community organizations focused on equity and justice, including: 1. Ashland Rotary 2. SOU student affinity groups (e.g., Black Student Union) 3. Medford's Commission on Access, Diversity, Equity, and Inclusion 4. Black Alliance &Social Empowerment (BASE) 5. Northwest Seasonal Workers Association 6. SOU Native Nations Liaison visited with the committee to discuss collaborating on Indigenous Peoples' Day observance in 2026. Supported and/or participated in community events, including: 1. Rev. Dr. Martin Luther King, Jr. Celebration 2. SOPride 3. Indigenous People's Day/ Native American Heritage Month 4. Ashland Together&Ashland Sunrise Project speaker series 5. Housing & Human Services Resource Fair Community-Facing Initiatives • Developed and disseminated the City of Ashland Belonging Survey. • Began collaboration with the Housing and Human Services Advisory Committee (HHSAC)to produce updated Equitable Housing Plan. 2026 Work Plan SERJAC's 2026 goals and actions fall into six main categories: Outreach, Communication, Policy Guidance, Community Input, Cross-Committee Collaboration, and Regional Partnerships. 1. Outreach and Community Partnerships • Increase awareness of SERJAC by attending and engaging with local events, community meetings, and cultural programs. • Continue strengthening partnerships with values-aligned nonprofits, affinity groups, SOU/AHS/etc. departments, youth organizations, clubs/organizations, and local businesses. • Support a minimum of 3-5 community events annually that advance equity, belonging, and cultural understanding, including unveiling of Ancestors' Call, and Indigenous Peoples' Day events, memorial for Aidan Ellison. • Maintain and expand relationships with organizations such as BASE, SOU affinity groups, Native community organizations, and regional DEI councils. • Collaborate with OSF to support equity initiatives, including further Playwrights' Walk installations. Page 2 of 13 Page 181 of 194 VI Council Study Session 2. Communication & Public Awareness • Provide community resources that support social equity and access to justice (e.g., Oregon Department of Justice Bias Response Hotline). • Improve public visibility of SERJAC through regular updates to the committee webpage, including posting meeting summaries, outreach activities, and available resources. • Share findings from the Belonging Survey in a public-facing format and integrate these insights into recommendations to Council and other committees. • Prepare a simple annual impact summary highlighting accomplishments, outreach, partnerships, and policy recommendations. 3. Policy Guidance &Advisory Role • Collaborate with HHSAC on development of the Equitable Housing Plan, ensuring robust community engagement and equitable policy review. • Review ELEA through equity lens, develop suggestions as appropriate. • Review issues elevated through liaison reports and develop recommendations for City Council or relevant bodies. • Continue monitoring immigration issues, such as ICE activities, and develop responses as necessary. • Monitor and support implementation steps from the 2024 DEI Assessment, recommending actions or priorities as needed. • Identify local and regional policy models that support equitable practices and bring them forward for consideration by the City of Ashland. 4. Community Input& Engagement • Analyze findings from the 2025 Belonging Survey and explore opportunities for deeper engagement with historically underrepresented groups. 238 have been received so far. The Community plans to make further outreach efforts to get responses from now through MLK Day. • Establish a simple process for receiving, reviewing, and responding to community concerns or input related to equity and belonging. • Consider hosting 1-2 listening sessions, student roundtables, or community dialogues to inform SERJAC recommendations. 5. Cross-Committee Collaboration • Maintain active liaison assignments and ensure regular information flow from each partnered committee. • Track issues raised through liaison reports and integrate them into SERJAC agendas or recommendations where relevant. • Explore opportunities for joint initiatives with other City of Ashland committees where equity considerations intersect with climate, transportation, housing, youth, or arts initiatives. • Work with PAC on Playwrights' Walk development. 6. Regional Collaboration • Continue building relationships with equity-focused bodies in other municipalities across Oregon. • Participate in regional knowledge-sharing when opportunities arise (e.g.,joint meetings, workshops, shared best practices). Page 3 of 13 Page 182 of 194 VI Council Studv Session • Identify at least one regional collaboration opportunity annually to support alignment on equity and justice issues. 7. Flexibility for Emerging Issues • Maintain the capacity to respond to new or emerging issues related to bias, exclusion, or community harm by advising Council or coordinating with relevant partners. • Allow room in the annual work plan to address time-sensitive equity matters as they arise. Addendum: • Develop a scoring system and tracking metrics to report quantitatively on performance and meeting objectives. A public-facing dashboard and news archive of SERJAC efforts and accomplishments will develop visibility and inclusivity. • Diversity in committee membership. Housing and Human Services Advisory Committee 2025 Achievements In 2025 the Housing and Human Services Advisory Committee completed or addressed the following items in pursuit of the current workplan: • Rent Burden-Education and Outreach Event 1. The HHSAC Held two Community Resource Fairs aimed at providing education and resources on housing and related support services including homeownership opportunities. Both fairs were well attended(50-75 citizens) and received positive feedback from community partners. • Manufactured Home Park Zoning Ordinance 1. City staff has convened two meetings of the Manufactured Home Park Zone Management Advisory Committee and will be bringing a draft ordinance before the HHSAC committee for review and recommendation. • Consolidated Plan for the Use of Community Development Block Grant Funding 1. The HHSAC undertook a year-long process to engage community and providers on the best uses for CDBG funding over the next five-year period. HHSAC members reviewed data on community needs and resources and held two public hearings to elicit feedback on the draft Consolidated Plan before sending that planning document to the City Council for approval. • Development of a Request for Proposals for Beach Creek Property 1. The HHSAC worked with City Staff to develop an RFP for the Beach Creek the HHSAC reviewed the applications received, held opportunities for applicants to present on their applications and answer questions about their projects, and made an award recommendation to the City Council. • 2025-CDBG Grant Process 1. The HHSAC reviewed grant applications and presentations by applicants and made an award recommendation to the City Council. Key Long-Range Projects Actions Identified through the Housing Production Strategy Process • Develop an Equitable Housing Plan*-Initial Stages 1. The Equitable Housing project is currently underway, staff and the HHSAC is working with SERJAC on a community engagement plan. Page 4 of 13 Page 183 of 194 rnalks C 01111vil 'st»( v 'qeSVd0n • Manufactured Home Park Zoning Ordinance*—underway. 1. This project will be undertaken by the Planning Commission and planning staff and will go before the HHSAC for review and recommendation. • Construction Excise Tax* 1. The Housing Production Strategy identifies the establishment of a Construction Excise Tax as a strategic action to explore in 2025. • Disallow SFD in High Density R-3 Zone* 1. The HPS identifies that this action will be initiated in 2026 to be adopted in 2027 as this process is a yearlong process. • Increase development capacity of MFR dwellings through changes to the Land Use Ordinance* 1. The HPS identifies that this action will be initiated in 2026 to be adopted in 2027 as this process is a yearlong process. • Rent Burden-Education and Outreach Event* 1. The HHSAC began developing a plan for this year's event at their regular meeting in June. Council and other City identified Actions • Hargadine Parking Lot RFP • Non-Profit Affordable Housing Tax Exemption Program • 2026 CDBG Grant Award Process • 2025-26 Affordable Housing Trust Fund Award Process • 2026-Evaluate the strategic uses and priorities of the Affordable Housing Trust Fund Program. • Social Service Grant Strategic Plan Update and Priority Goal Review. 1. The HHSAC will update the data in the Strategic Plan for the use of Social Service Grant funds and undertake a process to identify resource gaps and needs in the Ashland Community to determine if there is a need to change or update the identified priority funding goals. The HHSAC held their Annual Goal Setting retreat on November 18, 2024. At that meeting the Committee identified several areas of interest to explore over the next year. • YIMBY(Yes in My Back Yard) Community Education Project 1. Neighborhood opposition is known to be a major barrier to the development of needed housing types including affordable housing, special needs housing, and higher density housing types. The HHSAC would like to explore ways to combat NIMBY-ism and support YIMBY through a community education campaign. This campaign may include the production of resources on housing impacts in neighborhood, and or may include a community engagement event. One component that the Committee would like to explore is the creation of a resource map for Ashland. • Homelessness Goals 1. The HHSC would like to explore recent data collected through the improved HMIS system on homelessness and review the systemic set of actions and best practices identified in the HSMS. Then use that information to lead a discussion on what the data shows about community resource gaps and community needs. The HHSAC would like to utilize the regional data resources to help guide decision making. This discussion should also explore how best to address the issues with daytime impacts of night lawn residents to Garfield Park. • Deep Dive into Fees and Incentives 1. The City of Ashland currently provides a reduction of fees to support the development of affordable housing types needed. Over the years these fee waivers have been enough of an incentive to help increase the supply of affordable housing. The HHSAC would like to explore what type of fee waiver or incentive would help incentivize the development of affordable ADU development. • Explore and find ways to support programs and services for ALICE(Asset, Limited, Income, Constrained)populations 1. There is a documentary need for low-moderate income households to have opportunities to access more resources and assets to maintain or increase self-efficacy. The HHSAC would like Page 5 of 13 Page 184 of 194 VI Council Studv Session to learn more about this topic, programs and resource best practices, and how those programs support stable housing opportunities and thriving communities. Public Art Advisory Committee 2025 Achievements Over the course of 2025, the Public Arts Advisory Committee (PAAC): • Internal Projects &Awarded Funding o Began a living "maintenance plan" for PAAC that includes an inventory of all artworks and an assessment of upcoming potential maintenance needs. o Facilitated the RFP and selection process for three additional traffic control boxes to be painted in 2025 with a focus on South Ashland. o Recommended the use of a small amount of funding to support local live arts events that drive tourism and beauty Ashland: Mural Fest and Fringe Festival. ■ Both events donated artworks to the city to be installed in South Ashland o Recommended the use of funds for two Playwright plaques ■ The installation of the Lorraine Hansberry plaque on A St was a large and celebrated community unveiling o Recommended the use of funding to receive two gifted hearts from Guanajuato ■ One heart was temporarily installed on the lawn outside the Schneider Museum for the 55th anniversary of the sister city relationship on July 3rd, with a lovely community celebration. ■ Both hearts are awaiting permanent placement and are intended to drive photo ops and drum up a sense of belonging for people of ALL backgrounds. Traffic Signal Box project • This is a multi-year public art project that will continue for another six or seven years. The first three traffic signal boxes of the project were painted in 2024. • In 2025, three additional designs were approved (with a focus on beautifying the South end of Ashland). The locations of the approved boxes are: 1. Ashland Street and Tolman Creek Road 2. Ashland Street and Walker Avenue 3. Siskiyou Blvd and Mountain Avenue • Due to unexpected ODOT box maintenance and possible box replacements, painting for these three boxes is on hold until early 2026. • The Traffic Signal Box project has a theme of"Neighborhood public artworks." In other words, we hope a number of residents will help the artist create each box artwork. The sub-committee found youth to collaborate in painting each of the designs approved this year: 1. Youth from the nearby YMCA 2. Youth from the nearby Walker Elementary School 3. Youth from Ashland High School art classes • Public Art Story Map on the city website • A sub-committee is working with City of Ashland GIS staff to update and revise the Story Map. o Adding additional public artworks, to bring the Story Map up to date. o Adding additional photos. o Adding additional descriptive text. • Playwrights Walk plaques Page 6 of 13 Page 185 of 194 rnalks Coil 11 Vil Stild VqeSVd0n *Although the Playwrights Walk project is a community-driven initiative, several of the members of PAAC are driving this project forward in partnership with OSF, SOU, The Chamber of Commerce, and philanthropists Barry and Kathryn Thalden. • This spring (in response to the news that PAAC's budget would no longer roll over), the city manager approved funding for two Playwright's plaques. • The first was the Lorraine Hansberry plaque on A Street, celebrated with a large community unveiling. • This plaque, through its artwork and quote, weaves together and permanently memorializes the "Say Their Names" T-shirt memorials with ongoing goals of the PAAC and SERJAC advisory committees. • Gifted Artworks • Ancestor's Future: Crystallizing Our Call o This artwork was wholeheartedly endorsed in 2022 and was recently fully funded by an anonymous donor. o Micah BlackLight is expected that the sculpture will be installed in early 2027. • Where the Crow Lights o John Pugh's artwork is nearly fully funded for installation on the Elk's Lodge public facing wall in downtown Ashland. • Mural Fest o Mural painted by Jarrett Davidson, hope to be installed in public facing location at OHRA on Ashland Street in the South end of Ashland • Fringe Festival o Small sculptures by two artists from the festival, PAAC is exploring installing them in a future median or somewhere visible from the road in South Ashland • Guanajuato Hearts o The artist Gilberto Negocio gifted the hearts in honor of the sister city's 55th anniversary. One heart will be located on SOU property (and is temporarily placed on the lawn near the arts buildings) and the second will be placed in a public space to invite photo cps to drive tourism. 2026 Priorities &Workplan The Public Arts Advisory Committee (PAAC) discussed priorities and a work plan for the 2026 calendar year at regular meetings in October, assigned group members to make a work group to create a draft document to bring to the scheduled November meeting to continue discussion, but had to be rescheduled to January. The list below is provided in anticipation of the December 15th conversation with Council, and is in addition to continuing the current projects and activities. • Modified Meeting Schedule— PAAC will continue to look at potential modifications to its meeting schedule in response to limited resources to address quorum counts for all future meetings. Some steps have already been taken towards this goal. • Collaboration with city committees/commissions/city council - Representatives from the following groups have been able to attend most PAAC meetings in 2025, which has been appreciated and is very helpful: • City Council • Parks Department • Social Equity Racial Justice Advisory Committee • Community Development& Public Works • Increasing public art in southeast Ashland -With City Council support and PAAC support, this is beginning to happen. However, it will take years of small steps and focused effort to see "big" results. • Traffic Control boxes • Guanajuato heart • Mural Fest • Fringe Festival Page 7 of 13 Page 186 of 194 • Strategic plan - Finalize goals and timeline for prioritizing, procuring, and maintaining artworks Hisoric Preservation Advsory Committee 2025 Achievements Over the course of 2025, the Historic Preservation Advisory Committee (HPAC): • Review of the current Preservation Plan to give members general familiarity. • On-going review of land use actions and building permits within the historic districts at the regular monthly meetings. • Conduct bi-weekly HPAC Review Board as a resource to property owners, designers, contractors and staff considering projects within the historic districts. • HPAC members served on the Community Center Management Advisory Committee to ensure that the building's historic significance received due consideration in planning the repair work. • Conducted Preservation Week Activities in partnership with WalkAshland focused on the national "Past Forward"theme. Events included: a Railroad District walking tour, a very well attended `Tombstone Tales' at Ashland Cemetery, a photo contest and the annual Historic Preservation Awards ceremony conducted in Lithia Park with the help of Mayor Graham. • Sent a letter recognizing the 100-year anniversary of the Ashland Springs Hotel. • HPAC members continue to serve on a subcommittee with the Public Arts Advisory Committee (PAAC) and Ashland Parks & Recreation Commission (APRC) to identify locations for the "hub and spokes" for the next Marking Ashland Places (MAPII) project in the Downtown Historic District. • HPAC reviewed &supported the installation of the second Playwright's Walk plaque by local artist Micah Blacklight at the Railroad Park. • HPAC members continue to work with the Parks Foundation to support restoration of the Butler Perozzi Fountain in Lithia Park. Current and former HPAC members are part of the Foundation's subcommittee for the Fountain restoration. 2026 Priorities &Workplan The Historic Preservation Advisory Committee (HPAC) discussed priorities and a work plan for the 2026 calendar year at regular meetings in October and December, noting with some concern that the adoption and implementation of state laws in support of housing seem to be devaluing preservation. The list below is provided in anticipation of the December 15thconversation with Council, and is in addition to continuing the Review Board and review of applications and proposals. • Continuing Education for HPAC Members - HPAC will continue to look at continuing education opportunities for new and existing members on the information needed to carry out their responsibilities, including roles & responsibilities; reviewing planning action procedures and development standards; reviewing the Secretary of the Interior's national standards for historic preservation; and becoming familiar with the responsibilities of being designated as a Certified Local Government in Oregon. • Raise Public Awareness of Preservation and HPAC — Promote preservation and the committee through events, activities and partnerships including expanding Preservation Week activities beyond the Preservation Awards; occasional preservation-themed Brown Bag Lunches; an annual direct mailing to new property owners in the districts; targeted outreach to professional groups; updating the Committee webpage and on-going work with the Public Arts Advisory Committee to continue the Marking Ashland Places (MAPII) project. • Explore Options to Raise Awareness of Individual Historic Properties & Historic Districts—This could include plaques or signage recognizing individual properties and district-specific street signage and street lighting, and the creation of district-specific brochures, walking tours, maps or GIS story maps. • Modified Meeting Schedule— HPAC will continue to look at potential modifications to its meeting schedule in response to limited resources and the reduction in land use actions/permits while continuing to be available as a resource for home owners, contractors and designers. Page 8 of 13 Page 187 of 194 rnalks Coil 11 vil Stild V 'qeS60n • Recruiting New Members—With one long-standing member leaving in December due to term limits, there will be three HPAC vacancies. Members will explore new ways to promote the committee and recruit new members. Planning Commission 2025 Achievements In 2025, the Planning Commission undertook a full range of responsibilities, conducting development review on numerous land use applications while also completing several major long-range legislative projects as outlined below. Long-Range /Legislative Projects • Climate Friendly Area (CFA) Code and Map Amendments Recommended adoption of new CFA overlay zones and updated mixed-use development standards in support of state climate-friendly requirements. (Council Adopted) • 2025 Economic Opportunities Analysis (EOA) Reviewed and recommended adoption of the updated EOA, replacing the 2007 version and establishing current employment-land projections for the Comprehensive Plan. (Council Adopted) • Southern Oregon University 2025 Facilities Master Plan and Zoning Amendments Recommended approval of the updated campus master plan and associated zoning and height amendments that support redevelopment while applying added neighborhood protections. (Council amended and adopted) • Hamilton Creek Modified Floodplain Map Correction (PA-T3-2024-00012) Supported a city-initiated correction to the locally adopted Ashland Modified Floodplain to align the map with original study data and prior Council approvals. (Council Adopted) • East Main Park Annexation Supported annexation of East Main Park to formalize city ownership and zoning, allowing consistent long-term park management and future improvements. (Council Adopted) Current Planning Actions (Type II & Type III) • 110 Terrace Street— PA-T1-2024-00255 Interpretation request regarding classification of a Peer Respite Home as a Group Living use permissible in residential zones. • Sutton Place /The Oaks of Ashland — PA-T1-2024-00254 Amendment to remove a previously required public pedestrian access easement through subdivision open space. • Kestrel Park Phase III — PA-T2-2024-00054 Final subdivision phase approval refining lot configuration and circulation in the Kestrel/North Mountain area. • 300 Clay Street— PA-T3-2024-00010 Annexation and zone change with Outline Plan approval for a 25-lot, 37-unit Performance Standards Option subdivision., including 8 new affordable units. (construction underway) • 231 Granite Street— PA-T2-2024-00053 Physical and Environmental Constraints Permit for steep-slope residential development, including a driveway-grade variance and tree removal. (Currently under review at the Land Use Board of Appeals) • 1511 Highway 99 North (Grand Terrace)— PA-T3-2024-00011 Annexation, subdivision, and Site Design Review for a 210-unit multifamily development including 24 affordable units. • 120 Westwood Street— PA-T2-2025-00056 Variance approval to exceed maximum lot coverage for expansion of an existing garage. Page 9 of 13 Page 188 of 194 rnalks (^omi cil 'stil v Ses-Onn • Fern Street Right-of-Way Vacation (City-initiated) Request to vacate a portion of Fern Street right-of-way north of 648 Roca Street for Council consideration. (Council amended and adopted) • North Mountain PSO Subdivision in Kestrel area— PA-T2-2025-00059 Final Plan approval for a 15-lot subdivision, including modification of a previously approved alley to a pedestrian accessway. 2026 Priorities &Workplan The Planning Commission's 2026 work plan is driven by City Council goals, Housing Production Strategy directives, and required updates stemming from recent state legislation. These higher-level mandates set much of the long-range planning workload, including several code amendments that must be completed by January 1, 2027. The Planning Commission's development review workload cannot be forecast, as current planning applications are submitted by private applicants at their discretion; however, once submitted, state law requires action within 120 days, which prioritizes timely review of these applications. Planning Commission Long Range Planning Projects for 2026 • Croman Mill District— Master Plan update and associated site review framework • Transportation System Plan (TSP) update and public engagement program • Establishment of a Manufactured Home Park zoning district (HPS action: initiated in 2025, adoption expected 2026) • Code amendment to disallow single-family dwellings in the high-density R-3 zone (HPS action: to be initiated 2026, adoption expected 2027) • Code amendments to increase development capacity for multifamily residential dwellings (HPS action: to be initiated 2026, adoption expected 2027) • Amendments to the Portable Sign Ordinance • Amendments to the Special Event permitting process and Food Truck Land Use Provisions • Amendments to Land Use Ordinance to address Routine updates to fix outdated references, clarify ambiguous language, resolve inconsistencies, and make minor technical corrections to keep the ordinance clear, consistent, and easy to use. State Mandated Legislative Changes • Adoption of Walkable Design Standards coordinated with the TSP review process • Adoption of Single Room Occupancy (SRO) land use standards as required by 2025 state legislation (ORS 197A.430) • Work with the Rogue Valley Council of Governments to complete a State-mandated Code Audit of Ashland's clear and objective housing standards under the Housing Accountability and Production Office, with potential code amendments to follow based on the audit's findings. • Senate Bill 974 1. Urban housing applications—first decision without a hearing ■ For certain residential upzones, PUDs, and variances on residentially zoned land within the UGB (defined as "urban housing applications"), the initial decision must be issued without a public hearing, with appeals handled through existing land-use appeal procedures. Local procedures and possibly code references should be updated to reflect this. Page 10 of 13 Page 189 of 194 rnalks C,omicil st»a v gecc nn 2. Design standards limits for large residential projects ■ Within UGBs, SB 974 prohibits applying discretionary design standards to residential developments with 20 or more units (other than for multifamily buildings), beyond health/safety/environmental basics; this may require revising or clarifying your design review chapter • Senate Bill 1537 1. Mandatory Adjustments to Housing Development Standards ■ SB 1537's mandatory adjustments are already in effect through 2032 under State Law, and while the City may continue relying on the state provisions, it could alternatively adopt them locally as permanent code amendments, allowing up to ten adjustments to development standards for qualifying housing projects. Ashland's existing exception and variance procedures already provide similar flexibility. • House Bill 2138 1. Middle Housing, SROs, Density and expedited land divisions ■ Amend the Land Use Ordinance to implement HB 2138's higher SRO densities and reduced parking requirements, and recognize SROs as "needed housing." ■ Update procedures for expedited middle housing land divisions to align with HB 2138, including administrative decisions and applicant-only appeals. ■ Ensure tree removal and other housing-related development standards are clear and objective and do not impede middle housing or SRO development (RCVOG grant funded code audit). • House Bill 3560 Child Care Siting 1. Update zoning and use tables so family child care homes are allowed anywhere housing is allowed, and child care centers are permitted outright in multifamily residential and commercial zones, as required by HB 3560. Climate and Environmental Policy Advisory Committee 2025 Accomplishments 1. Laying the groundwork for the Carbon Fee Ordinance which was passed by Council Unanimously in January. 2. Initiating a Home Energy Score program. 3. Updating the original 2017 CEAP document. 4. Updating the City's Energy Incentive Structure and Rebate program. These updates were presented to Council and unanimously passed in October. 5. Expanding CEPAC's role in the community. 1. We established a regular meeting with the Executive Directors of ACC, SOCAN, and Rogue Climate. 2. Similarly, CEPAC leadership meets regularly with other City Commission and Advisory Committee leadership. Looking forward to 2026 here are CEPAC Work Priorities: 1. Expand community awareness of the CEAP Plan, work of CEPAC, and existing incentive programs and the new Home Energy Score Program. 2. Be involved in the upcoming TSP process. 3. Collaborate with City Departments and staff regarding opportunities to Electrify and make more City Operations more energy efficient, and review our Building Inventory. 4. Educate ourselves about Climate adaptability and Resilience opportunities. And we have identified four work priorities that will be long-term multi-year work projects in which CEPAC Page 11 of 13 Page 190 of 194 F% Council Study Session will be involved : 5. Work to Electrify Ashland. 6. Work to make our waste stream more efficient and friendly to recycling, and to develop a viable food composting program. 7. Work to identify climate beneficial programs and conservation measures that can be used by low-and middle-income community members, and renters. 8. Work to reduce emissions in our transportation sector. Transportation Advisory Committee 2025 Accomplishments 1. B Street Corridor safety improvement (construction started) 2. Water and Van Ness Intersection Safety Improvements-recommended for improvement 3. Ashland Central Bike Path improvements recommended for improvements 4. New see click fix working group developed for faster response to transportation related items Work plan outline 2026-2028 I. Transportation System Plan Update 11. Capital Improvement Projects(Protected Bike Lanes/Multimodal Analysis) A. North Mountain Rehab Phase I and Phase II B. B Street Bike Boulevard C. Oak Street Rehabilitation 1. A Street Intersection 2. Van Ness Intersection D. Water Street& RR Trestle E. Van Ness & Helman Intersection III. Traffic Safety, Parking, Signage, Striping, etc. —Continuous A.Public Education and Outreach Programs (Collaboration with Council, Standing Advisory Committees, Parks Commission and Planning Commission) B. Encroachment Guidelines Review C. Traffic Crash and Near Miss Review (twice annually) D. Bike Parking Project E. E-Bike Safety Project F. Transit Support as needed (RVTD) IV. Council Directed Projects for Review A. Wayfinding (With Economic Development) B. ODOT Collaboration FISCAL IMPACTS N/A SUGGESTED ACTIONS, AND/OR OPTIONS Council may amend the work plans as appropriate. REFERENCES &ATTACHMENTS 1. Occupied RVs on Singlehome lots—considerations Page 12of13 Page 191 of 194 r% Council Study Session Page 13 of 13 kv Page 192 of 194 Per Mayor and Councilmember Sherrell's request for consideration to add to the workplan: From Councilmember Sherrell: Below is a link to the whole program page, to include water, sewer and power permits and inspections required. Below that is the city of Portland's one page definition of an RV. https://www.portland.gov/ppd/zoning-land-use/zoning-code-overview/occupied-rvs-and- tiny-houses-wheels 260 Occupied Recreational Vehicle It is also worth noting that Clackamas, Lane and Deschutes counties have all recently adopted RVs as living dwellings in similar fasion. Considerations from City Staff: Occupied RVs on Single-Family Lots: Key Planning,Safety, and Fiscal Considerations 1. Land Use • Temporary RV occupancy during an emergency housing crisis (e.g., COVID) can be authorized without long-term zoning implications. • Ashland already provides emergency shelter capacity through its car-camping allowance on commercial and church parking lots (with property-owner consent), offering a flexible temporary option without altering residential zoning. • A permanent allowance for RVs as dwellings effectively adds a new residential unit and would require review of setbacks, density, driveway capacity, fire access, and spacing between structures—none of which occurs without a formal land-use or building-permit process. 2. Utilities & Infrastructure • RVs are not designed for permanent water, sewer, or electrical connection; improvised hookups create safety and sanitation risks. Extension cords, hoses, and RV sewer fittings are not permitted for long-term residential use. Consideration of new (permanent) utility connections would need to be evaluated, permitted and inspected. • A permanently occupied RV is functionally an additional dwelling, which would normally trigger system development charges (SDCs) based on the impacts of an additional household on City systems (water, sewer, parks, transportation) 3. Taxation Page 193 of 194 • Unlike ADUs or duplexes, an RV does not add taxable real-property value, resulting in an untaxed dwelling on the lot. • Property taxes fund fire protection, police, schools, streets, parks, and emergency services. A household living full-time in an RV receives these services, but because the RV cannot be assessed as real property, no additional tax revenue is generated to support the increased demand. 4. Habitability&Substandard Housing • RVs are built to RV standards, not residential building code, and lack required snow-load capacity, seismic resilience, insulation, ventilation, and moisture control for permanent housing. • Heavy reliance on propane for heating and cooking creates increased fire and explosion risk when used long-term. Further the natural gas use for new dwellings in the City may have implications regarding the pollution impact fee passed by Council which goes into effect on January 1, 2026. • Long-term RV occupancy typically results in substandard living conditions that do not meet minimum habitability requirements. Page 194 of 194