2025 Annual Comprehensive Report

In FY25 the City applied the exchange and exchanged-like transactions guidance to these transactions. Accordingly, the cash received during the year of $568,465 was recognized in the Opioid Settlement Fund. Additional revenue was also recognized for Governmental Activities. This amount was calculated as follows:

Accrual Basis of Accounting

Governmental Activities

City's Share of Unpaid Aggregate Settlements through FY2025

$

4,022,575

$

Opioid Settlement receivable at June 30, 2025

4,473,875

City's Share of Unpaid Aggregate Settlements through FY2024

4,591,040

Opioid Settlement receivable at June 30, 2024

4,995,151

Additional accrual basis revenue recognized in FY2025

$

(568,465)

$

(521,276)

Revenue recognized Actual Cash received

Opioid Settlement Fund-Non MOA Class action lawsuit settlement payment from manufacturer McKinsey & Company, related to their role in advising opioid companies how to promote their drugs and profit from the opioid epidemic. The lawsuit is known as In re McKinsey & Co., National Prescription Opiate Consultant Litigation, Case No. 3:21-md-02996-CRB (N.D. California). McKinsey denies plaintiffs’ allegations. The settlement used the same intrastate methodologies as applied in the national opioids settlement with Janssen Pharmaceuticals. The City received $31,167 in Fiscal Year 2025. The Court has ordered Class members shall be required to use the settlement funds exclusively for approved uses designed to abate the opioid epidemic. As of June 30, 2025 the City has not spent these funds. H. Interfund Receivables, Payables and Transfers The following is a schedule of interfund receivables and payables due to/from primary government and component units at June 30, 2025: 1. Internal Receivables/Payables:

Receivable by:

Non-Major Governmental Funds

$

20,000

Current Payable From:

Non-Major Governmental Funds

$

20,000

2. Due To/From Primary Government and Component Unit:

Receivable By: General Fund

Payable From: Component Unit - ABC Board

$

865,776

39x