Anderson City Council
February 15, 2022

CITY COUNCIL AGENDA
February 15, 2022
REGULARSESSION-6:00 P.M,

ANDERSON CITY HALL
1887 Howard Street

PARTICIPATION BY PUBLIC IN MEETING
Please review the Agenda to determine if the subject you wish to discuss is scheduled for Council consideration. If it is on the Agenda, you will have an opportunity when that matter comes up for discussion to briefly address the Council.

If the subject is not on tonight's Agenda, please complete an Acenda Request Form (on Clerk's table) and present it to the City Council Clerk. You will have the opportunity to speak on the subject under Item 5.2. However, if the item is not on the Agenda, each speaker will be limited to one three (3) minute opportunity to speak, unless the City Council makes an exception due to special circumstances.

The Brown Act prohibits the Council from taking action on any item not placed on the printed Agenda in most cases.

The Brown Act requires any non-confidential documents or writings distributed to a majority of the City Council less than 72 hours before a regular meeting will be made available to members of the public at the same time they are distributed.

City Council meetings are televised and can be seen live on Cable Public Access Channel 181 (previously Channel 11) and on tape delay the following morning at 10:00 a.m. City Council meetings may also be viewed on the City's website at 'NWW.cl.anderson.ca1us by clicking on the TV icon on the Home Page.

In compliance with the Americans with Disabilities Act, the City of Anderson will make available to members of the public any special assistance necessary to participate in this meeting. The public should contact the City Clerk's office (378-6646) to make such a request. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

This is an Equal Opportunity Program. Discrimination is prohibited by Federal Law.

Complaints of discrimination may be filed with the Secretary of Agriculture, Washington, D.C. 20250.

City Council Meeting
February 15, 2022

1.0 ROLL CALL-COUNCIL:

REGULAR SESSION - 6;00 P.M,
Councilmember Neutze
Councilmember Baugh
Councilmember Hunt
Vice-Mayor Gallagher
Mayor Browning

2.0 INVOCATION -Amarjit Singh, of the Sikh Center, will give the invocation.

3.0 PLEDGE OF ALLEGIANCE - Mayor Baron Browning.

4.0 STUDENT REPORTS
a. Anderson Union High School student ASB President Seth Forehand will give an update on school activities.
b. Daniel Stroup from teen center will give an update on current activities.

4.3 PRESENTATIONS - Police Chief Jon Poletski will introduce new Officers Tyler Knight and Beau Hamilton, conduct the swearing in and pinning ceremony.

5.2 PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA - This is the time to address public comments by any member of the public to the Council regarding an item not on the agenda. Each comment must be limited to 3 minutes or less. Direct City Clerk to read all comments received by members of the public.

CONSENT AGENDA

6.0 CONSENT AGENDA - Consent Agenda items are expected to be routine and noncontroversial. They will be acted upon by the Council at one time without discussion. Any member of the public, staff or City Council may request that an item be removed from the Consent Agenda for separate discussion. Are there any requests to remove any items from the Consent Agenda?

6.1 MINUTES -Approve the minutes of the regular meeting of February 1, 2022.

6.2 WARRANTS - Receive and file warrant 24181 to 24248 in the amount of $144,565.08; Receive and file warrant 24249 to 24314 in the amount of $98,933.39; Receive and file ACH in the amount of$235.00; Receive and file ACH in the amount of $42,138.89.

END OF CONSENT CALENDAR
City Council Meeting
February 15, 2022

6.11 ITEMS (IF ANX) REMOVED FROM THE CONSENT CALENDAR - Items removed from the Consent Agenda for discussion will be treated as Regular Agenda items and any member of the public may request to address the Council on any such item as it comes up for discussion. Please provide your name and limit your remarks to 3 minutes or less.

REGULAR AGENDA

8.0 REGULAR AGENDA - Regular Agenda Items will be discussed individually and in order.

8.5 Any member of the public may request to address the Council on an item as it comes up for discussion. The City Clerk will be directed to read any public comments received/or each agenda item following the staff report.

ASSISTANT CITY MANAGER/FINANCE DIRECTOR/TREASURER
2020-2021 ANNUAL COMPREHENSIVE FINANCIAL REPORT
RECOMMENDED ACTION:

Receive and file the annual report.

DEPUTY PUBLIC WORKS DIRECTOR

8.9 AUTHORIZATION TO BID THE ANDERSON HIGH SCHOOL TANK RECOATING PROJECT RECOMMENDED ACTION:

Approve the Specifications, Estimates and Contract Documents for the Anderson High School Tank Recoating Project and instruct staff to advertise for bids.

11.0 COUNCIL REPORTS/COMMENTS- City Councilmembers will report on attendance at conferences/meetings reimbursed at City expense (Requirement of Assembly Bill 1234.)

14.0 ADJOURN - The City Council will adjourn to March 1. 2022.

ANDERSON CITY COUNCIL MINUTES
Regular Meeting
February 1, 2022

REGULAR SESSION
The regular session was called to order at 6:00 p.m.

ROLL CALL
Councilmembers present: Councilmember Gallagher
Councilmember Hunt
Councilmember Neutze
Vice-Mayor Browning
Mayor Baugh
DRAFT
Also present: City Manager Jeff Kiser, Assistant City Manager Liz Cottrell, City Attorney Collin Bogener, Police Chief Jon Poletski.

INVOCATION
Pastor Perry Peterson, Crossroads Bible Fellowship, gave the invocation.

PLEDGE OF ALLEGIANCE
Councilmember Stan Neutze led the Pledge of Allegiance.

PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA - None

CONSENT AGENDA
By motion made, second (Hunt/Baugh) and carried by a 5-0 vote, Council took the following action.

Approved the minutes of the regular meeting of January 18, 2022.

Received and filed warrant 24060 to 24119 in the amount of $73,658.49; Received and filed warrant 24120 to 24180 in the amount of $132,163.20; Received and filed ACH in the amount of $235.00.

Received and filed the quarterly treasurer's report for the fiscal quarter ended September 30, 2021.

ITEM 6.1 2/15/2022
City Council Meeting
February 15, 2022

Vote: AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Hunt, Baugh, Gallagher, Neutze and Mayor Browning.

None.

None.

None.

REGULAR AGENDA

CITY MANAGER
CONSIDER APPROVING A RESOLUTION FOR MAVERIK. INC. LIQUOR LICENSE City Manager Jeff Kiser gave a staff report and answered questions from Council.

By motion made, seconded (Baugh/Gallagher) and carried by a 5-0 vote Council voted to adopt Resolution No 22-07 finding the issuance of a Liquor License to the Maverik Stores, Inc in Anderson located at 2590 North Street, to be a public convenience and necessity per Health and Safety Code 23958.4(b)(2) and authorizing the City Manager to issue a letter to ABC stating the Council findings and requesting approval of the requested license.

Vote: AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Baugh, Gallagher, Neutze, Hunt and Mayor Baugh.

None.

None.

None.

ATTENDANCE AT INNOVATING COMMERCE SERVING COMMUNITIES (ICSC) City Manager Jeff Kiser gave a staff report pointing out current covid restriction for the Las Vegas conference. City Manager Kiser gave Council the option of a California only ICSC conference.

By motion made, seconded (Baugh/Hunt) and carried by a 5-0 vote Council voted to attend the California ICSC in Monterey.

Vote: AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Baugh, Hunt. Neutze, Gallagher and Mayor Baugh.

None.

None.

None.

PARKS AND RECREATION

APPLICATION FOR RURAL RECREATION AND TOURISM PROGRAM GRANT FUNDS Engineering Services Manager Matthew Baker gave a staff report regarding an application for Rural Recreation and Tourism Grant Funds.

By motion made, seconded (Hunt/Baugh) and carried by a 5-0 vote Council voted to adopt Resolution No 22-08 approving the application for Rural Recreation and Tourism Grant Funds.

City Council Meeting
February 15, 2022

Public comment - Darin Hale spoke on this item with concerns with transparency on the grant funds.
~: AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Hunt, Baugh, Neutze, Gallagher and Mayor Baugh.

None.

None.

None.

PUBLIC WORKS

APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH PROVOST & PRITCHARD TO CONDUCT LEVEL 1 VALIDATION REVIEWS OF AWWA WATER AUDITS Deputy Public Works Director Peter Wickenheiser gave a staff report and answered questions from Council.

By motion made, seconded (Neutze/Gallagher) and carried by a 5-0 vote Council voted to authorize the City Manager to execute a Professional Service Agreement with Provost & Pritchard to Conduct Level 1 Validation reviews of AWWA Water Audits.

Vote: AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Neutze, Gallagher, Baugh, Hunt and Mayor Browning.

None.

None.

None.

ADOPT A RESOLUTION MAKING TEMPORARY CHANGES TO PARKING RESTRICTIONS IN

THE VICINITY OF THE SHASTA DISTRICT FAIRGROUNDS DURING THE SIERRA CASCADE LOGGING CONFERENCE. NOR-CAL BOAT. SPORT. AND RV SHOW, SHASTA DISTRICT FAIR.

AND ANDERSON EXPLODES
Deputy Public Works Director Peter Wickenheiser gave a staff report and answered questions from Council.

By motion made, seconded (Gallagher/Neutze) and carried by a 5-0 vote Council voted to adopt Resolution No 22-09 establishing a temporary "No Parking" zone along the south side of Briggs Street between West Center and Church Street, and along the south side of First Street between Church Street and Fairgrounds Drive, and along Fairgrounds Drive during the Sierra Cascade Logging Conference, February 5-13, 2022, Nor-Cal Boat, Sport, and RV Show February 27 - March 7, 2022, the Shasta District Fair June 22-25, 2022 and Anderson Explodes July 3, 2022 and a temporary "Loading Zone" along the east side of Fairgrounds Drive during the Shasta District Fair.

VQ.m: AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Gallagher, Neutze, Baugh, Hunt and Mayor Browning.

None.

None.

None.

City Council Meeting
February 15, 2022

COUNCIL REPORTS/COMMENTS
Councilmembers used this time to report on meetings and activities they participated in and to announce upcoming events.

ADJOURNMENT
6:35p.m.: The City Council adiourned to February 15. 2022.

Baron Browning, Mayor
ATTEST:

Christy White, City Clerk

AGENDA ITEM
I February 15, 2022 City Council Meeting I
Approved for Submittal By:
rell, Finance Director /Treasurer
To:

Through:

Honorable Mayor and Members of the Anderson City Council Jeff Kiser, City Manager
From: Liz Cottrell, Finance Director /Treasurer
Date: February 15, 2022
!SUBJECT
Receive and File Weekly Warrant Registers.

I RECOMMENDATION
Receive and file warrant 24181 to 24248 in the amount of $144,565.08; Receive and file warrant 24249 to 24314 in the amount of $98,933.39; Receive and file ACH in the amount of $235.00; Receive and file ACH in the amount of$42,138.89. !ATTACHMENT
Warrant Registers.

ITEM 6.2 PAGE1 02/15/2022
Check Register Report
Date: 01/27/2022
Time: 2:45 pm
ity of Anderson BANK: TRI COUNTIES BANK Page: 1
:heck Check Status Reconcile Vendor Vendor Name Check Description Amount ~umber Date Date Number
rRI COUNTIES BANK Checks
~4181 01/28/2022 Printed 0537 AIELLO, GOODRICH & PROFESSIONAL SERVICES 15,000.00

TEUSCHER
24182 01/28/2022 Printed 05645 AMERICAN FIDELITY INSURANCE PREMIUM-JAN 20223,133.82

ASSURANCE
24183 01/28/2022 Printed 0580 APOA DUES PIE 1/21/2022 960 00 24184 01/28/2022 Printed 05080 ASCAP LICENSE FEE 23.00
24185 01/28/2022 Printed 111011 AT&T CALNET PHONE CHARGES 67.58 24186 01/28/2022 Printed TOBEOO TOBI BERNADAS RECREATION REFUND 8.00 24187 01/28/2022 Printed NIBIOO NICHOLE BITILESTON SINTF-PETTY CASH 264.91

REIMBURSEMENT
24188 01/28/2022 Printed 1180 BORGES & MAHONEY INC PROFESSIONAL SERVICES & 845.00 PARTS
24189 01/28/2022 Printed 5069 BRIGHT'S ENGRAVING AND PROFESSIONAL SERVICES 187.69 TROPHY
24190 01/28/2022 Printed 1220 CALIFORNIA VISION SERVICE VISION PREMIUM-FEBRUARY 334.60 2022
24191 01/28/2022 Printed 127501 MELANIE CATANIO PER DIEM-TRAINING 264.00 24192 01/28/2022 Printed 131750 CHARTER COMMUNICATIONS INTERNET SERVICES 687.98 24193 01/28/2022 Printed 13760 CONSOLIDATED ELECTRICAL SUPPLIES 2,727.07 DIST.
24194 01/28/2022 Printed 149005 DE LAGE LANDEN FINANCIAL SINTF-MONTHL Y LEASE 240.72 SVC
24195 01/28/2022 Printed OEJUOO DEPARTMENT OF JUSTICE CASE #410000000045532 1121122 304.06 ($DU)
24196 01/28/2022 Printed DORADO DOWN RANGE SUPPLIES 541 .53 24197 01/28/2022 Printed CHDU01 CHRIS DUNNE CLASS B REIMBURSEMENT 86.96 24198 01/28/2022 Printed 154855 ENERPOWER UTILITIES 1,348.00 24199 01/28/2022 Printed 05808 FASTENERS INC. SUPPLIES 149.73 24200 01/28/2022 Printed 16311 NASH FOLDEN PER DIEM-TRAINING 264.00 24201 01/28/2022 Printed 1659590 MIKE GALLAGHER HEALTH INS. REIMBURSEMENT 450.00 24202 01/28/2022 Printed 1680 GENERAL TEAMSTERS #137 DUES FOR MONTH JAN-22 1,858.00 24203 01/28/2022 Printed KRGUOO KRYSTINA GUERRERO CLEANING DEPOSIT REFUND 350.00 24204 01/28/2022 Printed 182765 1-5 RENTALS, INC. EQUIPMENT RENTAL 1,458.08 24205 01/28/2022 Printed 18405 1.1.M.C. MEMBERSHIP DUES-WHITE 200.00 24206 01/28/2022 Printed 1840 ICMA RETIREMENT TRUST 457 PLAN # 302204 PIE 1 /21/22 2,335.00 24207 01/28/2022 Printed 184488 INDUSTRIAL ELECTRIC PROFESSIONAL SERVICES 3,078.28

MOTORS INC
24208 01/28/2022 Printed 18552 INTOXIMETERS EQUIPMENT MAINTENANCE 358.79 24209 01/28/2022 Printed 1890 JEFF'S PEST CONTROL PROFESSIONAL SERVICES 360.00 24210 01/28/2022 Printed 190800 K & S STAFFING SOLUTIONS, PROFESSIONAL SERVICES 1,884.80 INC.
24211 01/27/2022 Void Void Check 0.00
24212 01/28/2022 Printed 1929 LAUNDRY WORLD PROFESSIONAL SERVICES 2,713.85 24213 01/28/2022 Printed 1930 LEAGUE OF CALIF. CITIES MEMBERSHIP DUES-2022 6,355.00 24214 01/28/2022 Printed 1930 LEAGUE OF CALIF. CITIES MEMBERSHIP DUES-SAC DIV 100.00 24215 01/28/2022 Printed 1970 L YRO PRINTING PROFESSIONAL SERVICES 589.10 24216 01/28/2022 Printed 20614 NTU TECHNOLOGIES, INC. SUPPLIES 2,043.44 24217 01/28/2022 Printed 303894 02 STAFFING, INC. PROFESSIONAL SERVICES 411.75 24218 01/28/2022 Printed 80911 OBSIDIAN IT PROFESSIONAL SERVICES 3,767.00 24219 01/28/2022 Printed 3051 OFFICE DEPOT OFFICE SUPPLIES 74.66 24220 01/28/2022 Printed PAANOO PACE ANALYTICAL SVCS., LLC PROFESSIONAL SERVICES 634.80 24221 01/28/2022 Printed PACUOO PACE SUPPLY CORP. SUPPLIES 24.75 24222 01/28/2022 Printed 4000 PACIFIC GAS & ELECTRIC UTILITIES 35.61 24223 01/27/2022 Void Void Check 0.00
24224 01/28/2022 Printed 4000 PACIFIC GAS & ELECTRIC UTILITIES 51,095 71 24225 01/28/2022 Printed JOPOOO JON POLETSKI PER DIEM-TRAINING 264.00 24226 01/28/2022 Printed 500973 NATHAN RAMIREZ PER DIEM-TRAINING 264.00 24227 01/28/2022 Printed 50700550 REEVES COMPANY. INC. SUPPLIES 96.89 24228 01/28/2022 Printed SCDIOO SCP DISTRIBUTORS, LLC SUPPLIES 1,480.23 24229 01/28/2022 Printed 60795 SHASTA COUNTY DEPT. OF CDBG LOAN PROGRAM 7,500.00

HOUSING
ity of Anderson
:heck Check Status
lumber Date
"RI COUNTIES BANK Checks
'.4230 01/28/2022 Printed
'.4231 01/28/2022 Printed
'.4232 01/28/2022 Printed
!4233 01/28/2022 Printed
!4234 01/28/2022 Printed
!4235 01/28/2022 Printed
!4236 01/28/2022 Printed
!4237 01/28/2022 Printed
!4238 01/28/2022 Printed
!4239 01/28/2022 Printed
!4240 01/28/2022 Printed
!4241 01/28/2022 Printed
?4242 01/28/2022 Printed
!4243 01/27/2022 Void
!4244 01/28/2022 Printed
!4245 01/28/2022 Printed
!4246 01/28/2022 Printed
!4247 01/28/2022 Printed
!4248 01/28/2022 Printed
1/27/2022 ACH
Check Register Report
Date: 01/27/2022
Time:

BANK; TRI COUNTIES BANK Page:
2:45pm
2 Reconcile Vendor
Date Number Vendor Name Check Description Amount
704533 SHN CONSUL TtNG ENGINEERS PROFESSIONAL SERVICES 12,942.50 INC
70500 SIERRA CASCADE LOGGING ADVERTISING 200.00
7064054 SLAKEY BROTHERS, INC SUPPLIES 190.97
STCEOO STATE CENTER REGIONAL REGISTRA TION-CATANIO 115.00 STCEOO STATE CENTER REGIONAL REGISTRATION-FOLDEN 115.00 70800 STATE OF CALIFORNIA ASSIGN OF WAGES PIE 1/21/22 510.66 SUREOO SUNBELT RENTALS, INC. EQUIPMENT RENTAL 2,115.67
7088846 T ANDS DVBE, INC. SUPPLIES 1,020.67
TEL100 TEXAS LIFE INSURANCE INSURANCE PREMIUM • JAN 22 680.84

COMPANY
8002 TK ELEVATOR CORPORATION ANNUAL MAINTENANCE 840.86
80092105 UPS SHIPPING CHARGES 74.95
USBVOO US BANK VOYAGER FLEET FUEL CHARGES 202.80

SYSTEMS
800945 US POSTAL # 7552063 METERED POSTAGE 5,000.00

SERVICE-CMRS-POC
Void Check 0.00
81539 VERIZON WIRELESS PHONE CHARGES 2,194.10
81539 VERIZON WIRELESS SINTF-PHONE CHARGES 547.79
807261 WASTE MANAGEMENT RECYCLE FEES 61.31
888910 WATTS CONSULT & PROFESSIONAL SERVICES 400.00

INVESTIGATIONS
80907 WESTERN BUSINESS SINTF-MONTHL Y LEASE 129.57

PRODUCTS
Total Checks: 68 Checks Total (excludlng void checks): 144,565.08 Total Payments: 68 Bank Total (excluding void checks): 144,565.08 Total Payments: 68 Grand Total (excluding void checks): 144,565.08 lf"J.r/~~L
Date
Members First Credit Union $235.00
For Payroll Ending 1/21/2022
1/27/2022 ACH PERS $42,138.89
For Payroll Ending 1/21/2022
Check Register Report
Date: 02/04/2022
Time: 8:07 am
ity of Anderson BANK TRI COUNTIES BANK Page: 1
:heck Check Status Recondfe Vendor Vendor Name Check Description Amount fomber Date Date Number "RI COUNTIES BANK Checks
!4249 02/03/2022 Void Void Check 0.00
!4250 02/04/2022 Printed 1760 ACE HARDWARE SUPPLIES JOB #2 3,236.83 !4251 02/04/2022 Printed 055601 AL'S SAW SHOP EQUIPMENT 1,501 .38 !4252 02/04/2022 Printed 05644 AMERICAN FIDELITY CAFETERIA 125 PLAN P/E 1/21/22 126.92

ASSURANCE CO
!4253 02/04/2022 Printed 1012 ANDERSON FIRE PROTECTION FIRE INSPECTION & IMPACT 20,489.22 DIST. FEES
!4254 02/03/2022 Void Void Check 0.00
!4255 02/04/2022 Printed 111011 AT&T CALNET PHONE CHARGES 1,054.08 !4256 02/04/2022 Printed BAMEOO BADGER METER , INC EQUIPMENT 1,535.53 !4257 02/04/2022 Printed MABA02 MATT BAKER CELL PHONE REIMBURSEMENT 75.00 !4258 02/04/2022 Printed 1171 STEPHEN BLUNK CELL PHONE REIMBURSEMENT 75.00 !4259 02/04/2022 Printed CAEP01 CALEPA ASSET FORFEITURES 39.78 !4260 02/04/2022 Printed 120970 CALIFORNIA HIGHWAY PATROL CASE #AF-2017-101-064 FORFEIT 476.44 !4261 02/04/2022 Printed 120970 CAt lFORNIA HIGHWAY PATROL CASE #2015-101-215 FORFEITU~989.77 !4262 02/04/2022 Printed 12812 CCJWSA MEMBERSHIP DUES-APD 75.00 !4263 02/04/2022 Printed 131750 CHARTER COMMUNICATIONS INTERNET SERVICES 1,184.16 !4264 02/04/2022 Printed 132201 CITY OF REDDING UTILITIES 438.42 !4265 02/04/2022 Printed 132203 CITY OF REOOtNG TRAFFIC SIGNAL AGRMT 5,160.00 !4266 02/04/2022 Printed 13760 CONSOLIDATED ELECTRICAL SUPPLIES 22.25 DIST.
!4267 02/04/2022 Printed 1414 LIZ COTTRELL CELL PHONE REIMBURSEMENT 75.00 !4268 02/04/2022 Printed 149005 OE LAGE LANDEN FINANCIAL MONTHLY LEASE 470.19 SVC
!4269 02/04/2022 Printed 149120 DIESEL EMISSIONS SERVICE PROFESSIONAL SVCS & PARTS 2,525.28 !4270 02/04/2022 Printed 149330 DIV. OF THE STATE ARCHITECT SB1186 FEES BUSINESS LICENSE341..20 !4271 02/04/2022 Printed MAEPOO MASON EPPLEY CJSSP PROGRAM STIPEND 1,500.00 !4272 02/04/2022 Printed 100155 EWING SUPPLIES 1,086.96 !4273 02/03/2022 Void Void Check 0.00
24274 02/04/2022 Printed 05808 FASTENERS INC. SUPPLIES 779.93 24275 02/04/2022 Printed GATE02 GAYNOR TELESYSTEMS. INC. PROFESSIONAL SERVICES 546.99 24276 02/04/2022 Printed BRGIOO BRYCE GIACOMELLI CJSSP PROGRAM STIPEND 1,500.00 24277 02/04/2022 Printed 1700 GILES LOCK & SECURITY PROFESSIONAL SVCS & 295. 15

SYSTEMS, SUPPLIES
24278 02/04/2022 Printed 90235 GOODYEAR COMMERCIAL TIRE PROFESSIONAL SVCS & 4,512.78

EQUIPMENT
24279 02/04/2022 Printed 17895 HAVEN HUMANE SOCIETY ANIMAL CONTROL SERVICES 7,484.75 24280 02/04/2022 Printed 1807583 HlGHWAY SPECIALTY CO, INC PROFESSIONAL SERVICES 7,019.06 24281 02/04/2022 Printed 1840 ICMA RETIREMENT TRUST 457 PLAN # 302204 P/E 11/26/2021 2,335.00 24282 02/04/2022 Printed 1850430 INLAND BUSINESS MACHINES, MONTHLY LEASE 271.53 INC
24283 02/04/2022 Printed JTCOOO J & T CONSUL TING, INC. MONTHLY MAINTENANCE 1,750.00 24284 02/04/2022 Printed 1870 J F. SHEA COMPANY INC. MATERIALS 374.49 24285 02/04/2022 Printed 1918003 JEFF KISER CELL PHONE REIMBURSEMENT 75.00 24286 02/04/2022 Printed 1922 LC ACTION POLICE SUPPLY SUPPLIES 835.32 24287 02/04/2022 Printed CYLUOO CYNTHfA LUPERCIO CLEANING DEPOSIT REFUND 350.00 24288 02/04/2022 Printed 2040 MT. SHASTA SPRING WATER DRINKING WATER 150.42 24289 02/04/2022 Printed MUEMOO MUNICIPAL EMERGENCY SUPPLIES 2,785.45

SERVICES
24290 02/04/2022 Printed KIMUOO KITT MURRISON, PH.D. PROFESSIONAL SERVICES 425.00 24291 02/04/2022 Printed 3051 OFFICE DEPOT OFFICE SUPPLIES 890.05 24292 02/04/2022 Printed PAANOO PACE ANALYTICAL SVCS .• LLC PROFESSIONAL SERVICES 388.80 24293 02/04/2022 Printed BRPEOO BRYON PETERSON PROFESSIONAL SERVICES 42.00 24294 02/04/2022 Printed 40736 PLATT SUPPLIES 25.28
24295 02/04/2022 Printed JOPOOO JON POLETSK• CELL PHONE REIMBURSEMENT 75.00 24296 02/04/2022 Printed 4073902 ROBYN POPE-BURGESS CELL PHONE REIMBURSEMENT 75.00 24297 02/04/2022 Printed 47400 POWER DRAULICS INC. SUPPLIES 138.96 24298 02/04/2022 Printed 500973 NATHAN RAMIREZ CELL PHONE REIMBURSEMENT 75,00 24299 02/04/2022 Printed 6065 SHASTA CO. DISTRICT ASSET FORFEITURES 397.84

ATTORNEY
:ity of Anderson
::heck Check Status
'lumber Date
rRI COUNTIES BANK Checks
24300 02/04/2022 Printed
24301 02/04/2022 Printed
24302 02/04/2022 Printed
24303 02/04/2022 Printed
24304 02/04/2022 Printed
24305 02/04/2022 Printed
24306 02/04/2022 Printed
24307 02/04/2022 Printed
24308 02/04/2022 Printed
24309 02/04/2022 Printed
24310 02/04/2022 Printed
24311 02/04/2022 Printed
24312 02/04/2022 Printed
24313 02/04/2022 Printed
24314 02/04/2022 Printed
Check Register Report
Date: 02/04'2022
Time:

BANK: TRI COUNTIES BANK Page:
8:07 am
2 Reconcile Vendor
Date Number
6059
MAS102
MASl01
70643
JOST01
70878
80040
80090159
800909
80092105
8047
81597
809385
CHWHOO
PEWIOO
Total Checks: 66
Total Payments: 66
Total Payments: 66
Vendor Name Check Description Amount

SHASTA COUNTY AUDITOR
CONT.

MANUEL SIERRA

MARY SIMONSEN
SMOGMASTERS ll

JOHN STRAIN
SW MAINTENANCE CORP.

TOMASINI BlACKSMITHING &
TYLER TECHNOLOGIES, INC.

ULINE
UPS
VIC HANNAN lANDSCAPE INC.

VIRTUAL PROJECT MANAGER

WESTSIDE AGGREGATE

CHRISTY WHITE
#00941-007443 ASSET 954.82

FORFEITURE
CLEANING DEPOSIT REFUND 500.00
COMMUNITY CENTER REFUND 800.00
PROFESSIONAL SERVICES 121.75
CJSSP PROGRAM STIPEND 1,500.00
PROFESSIONAL SERVICES 1,205.00
SUPPLIES 290.93
PARTIAL SOFTWARE UPGRADB4,214 17
FEES

SUPPLIES

SHIPPING CHARGES

MATERIALS

PROFESSIONAL SERVICES
117.95

93.93 186.68
500.00
MATERIALS 220.95
CELL PHONE REIMBURSEMENT 75.00
PETER WICKENHEISER CELL PHONE REIMBURSEMENT 75.00
Checks Total (excluding void checks): 98,933.39
Bank Total (excludfng void checks): 98,933.39
Grand Total (excluding void checks): 98,933.39
To:

Through:

From:

Date:
!SUBJECT

AGENDA ITEM
I February 15, 2022 City Council Meetin~
Approved for Submittal By:

Honorable Mayor and Members of the Anderson City Council Jeff Kiser, City Manager
Liz Cottrell, Assistant City Manager /Finance Director
February 15, 2022
2020-2021 Annual Comprehensive Financial Report

I RECOMMENDATION
The Assistant City Manager /Finance Director recommends that the City Council:

Receive and file the annual report.

I FISCAL IMPACT
There is no fiscal impact of the proposed receive and file action.

I DISCUSSION and BACKGROUND
Introduction
Each year, the City Finance Director prepares an Annual Comprehensive Financial Report, or Annual Report, to serve multiple purposes, including presentation of financial data to the City Council and many other interested parties. AGT audited these financial statements.

ITEM 8.5 PAGEl 02/15/2022
Audit Committee
On April 18, 2006, the City Council adopted Ordinance No. 740, establishing an Audit Committee. In accordance with this ordinance, the Mayor and Vice Mayor are members of the Audit Committee. Also, in accordance with this ordinance, the City Manager appointed the Auditor-Controller for Shasta County, as the third member of the Audit Committee to serve as the outside member of the Audit Committee with expertise in public accounting and finance. Nolda Short, the Auditor-Controller attended the Audit Committee meeting.

Also attending the Audit Committee meeting this year were AGT Partner Robert Griffith, AGT Manager Ellyn Hilts, the City Manager, Assistant City Manager /Finance Director, and the Finance Office Manager. The audit committee met on February 8, 2022. Items discussed were the City financial statements for the year ended June 30, 2021, the accompanying management discussion and analysis, and preparations for the planned 2021-2021 audit.
2020-2021 Hi&bJi&hts
The Finance Director would like to take this opportunity to briefly review the Annual Report highlights with the City Council. A public review copy of the Annual Report is also available in the City Clerk's Office.

Highlights of the 2020-2021 Annual Report include:
• Clean Audit Opinion. Independent auditing firm AGT audited the City's financial statements for the fiscal year ending June 30, 2021. AGT provided the City with an unqualified audit opinion letter, indicating that the financial statements fairly reflect the City's financial condition on June 30, 2021. AGT will be attending the Council meeting this evening if there are any questions for Robert Griffith about the audit services provided.
• General Fund Results. For purposes of financial statement presentation, the General Fund is comprised of the following funds: General, Mosquito Serenade, Teen Center, PEG Fees. General Fund expenditures exceeded General Fund revenues by $932,974, which includes an approved transfer to the Parks Capital Improvement Fund of $2,000,000 in fiscal year 2020-2021, which resulted in a decrease to General Fund Reserves. The year-end General Fund reserve decreased to $3,125,262 of which $140,764 is non-spendable and $233,163 is assigned and $2,751,335 is unassigned.

Expressed as a percentage of annual General Fund expenditures of $9,245,798, the unassigned General Fund reserve balance stood at 29% on June 30, 2021, above the Council goal of 20% to 25% of expenditures.
• This decrease in General Fund reserves is due to a transfer from the General Fund to the Parks Capital Improvement Fund of $2,000,000 for the construction of the River Splash. • In general, Sales Tax revenues increased from the 2019-2020 fiscal year by 17%, Transient Occupancy Tax increased by 28% in 2020-2021. The TOT revenue saw recovery from the COVID-19 pandemic in 2020-2021 which was hard hit in in the previous year.

ITEM 8.5 PAGE2 02/15/2022
• Gas Tax Fund Results. Gas Tax Fund revenue exceeded Gas Tax Fund expenditures net transfers by $551,916 in fiscal year 2020-2021. The year-end Gas Tax Fund balance decreased to $1,618,971.
• Former Anderson Redevelopment Agency Funds. The Anderson Redevelopment Agency (ARA) was dissolved as of January 31, 2012 per AB lX 26. For more information and detail, please see Note 15 of the Financial Statements. • Proprietary Funds Results. Proprietary funds experienced a change in net position before contributions and transfers as follows:

Water Fund
Sewer Fund
Internal Service Funds
• GASB68
$(282,528)
$257,371
$(30,283)
Total Net Position $4,394,850
Total Net Position $6,711,693
Total Net Position $( 408,472)
The City is reporting a Net Pension Liability of $13,567,007. This is an increase of $1,045,501 from the prior year. To gain some perspective on this liability, the City of Anderson reports a Net Position of $43,133,459. The Miscellaneous Group is reporting a Net Pension Liability of $8,372,308 and the Safety Group is reporting $5,194,699. The City also reported pension expense of $2,278,840. AGT will provide additional detail regarding the reporting of Net Pension Liability or GASB 68. Please see Note 7 in the financial statement for more information regarding pension reporting. • Recommendations in Management Letters. In the fiscal year 2020-2021 audit, AGT made two recommendations for strengthening the internal controls. Management agrees with these recommendations and will provide refresher training on those controls.

Thanks and Appreciation
The Finance Director would like to take this opportunity to thank the AGT audit personnel, as well as all the employees of the Finance Department for their work in the preparation of the financial statements and in planning and performing the annual audit The Finance Director would also like to thank Mayor Browning, Vice Mayor Gallagher and Nolda Short for their valuable contributions to the Audit Committee. !ATTACHMENTS

1. Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2021.

2. Report to the Audit Committee.

ITEM 8.5 PAGE3 02/15/2022
City of Anderson
Anderson, California

COMPREHENSIVE ANNUAL FINANCIAL REPORT
June 30, 2021 CPAs © Advisors
City of Anderson

TABLE OF CONTENTS
June 30, 2021

INTRODUCTORY SECTION
Letter of Transmittal
Organizational Chart
City Council and Administrative Personnel

FINANCIAL SECTION
Independent Auditors' Report
Management's Discussion and Analysis (Required Supplementary Information) Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position
Statement of Activities
Fund Financial Statements
Balance Sheet- Governmental Funds
Reconciliation of Fund Balances to Net Position - Governmental Activities Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Reconciliation of Change in Fund Balances to Change in Net Position - Governmental Activities Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund and Major Special Revenue Funds
Statement of Net Position - Proprietary Funds
Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds Statement of Cash Flows - Proprietary funds
Page
Number
1 s
6 8

12. 24
26 28
30 31
35 36
39 41
43 City of Anderson

TABLE OF CONTENTS
June 30, 2021
Fund Financial Statements (Cont.)
Statement of Net Position - Fiduciary Funds
Statement of Changes in Net Position - Fiduciary Funds
Notes to the Financial Statements

REQUIRED SUPPLEMENTARY INFORMATION SECTION
Schedule of the City's Proportionate Share of the Net Pension Liability - CalPERS Schedule of City Contributions - CalPERS
Notes to the Required Supplementary Information

COMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL STATEMENTS Combining Balance Sheet - Non major Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Non major Governmental Funds Combining Statement of Fiduciary Net Position - Custodial Funds Combining Statement of Changes in Fiduciary Net Position - Custodial Funds

STATISTICAL SECTION
Page
Number
45 46
47 86
87 88
92 96
101
102
103
City of Anderson

TABLE OF CONTENTS
June 30, 2021

GAO SECTION
Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards
Schedule of Findings and Responses
Summary Schedule of Prior Audit Findings
Page
Number
134
137
138

INTRODUCTORY SECTION
February 4, 2022
Honorable Mayor and Members of the City Council and Citizens of the City of Anderson:

State law requires that all general purpose local governments publish a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue for the City of Anderson the Annual Comprehensive Financial Report for the fiscal year ended June 30, 2021.

This report consists of management's representations concerning the finances of the City of Anderson. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Anderson has established a comprehensive internal control framework that is designed both to protect the government's assets from Joss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Anderson's financial statements in conformity with GAAP.

Because the cost of internal controls should not outweigh their benefits, the City of Anderson's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The City of Anderson's financial statements have been audited by AGT CPAs and Advisors, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Anderson for the fiscal year ended June 30, 2021, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of Anderson's financial statements for the fiscal year ended June 30, 2021, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report.

For the fiscal year ended June 30, 2021, the City of Anderson was not required to perform a federally mandated "Single Audit." GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of 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 Anderson's MD&A can be found immediately following the report of the independent auditors.

General Information
The City of Anderson has a population of 10,702 and is located on the west bank of the Sacramento River in southern Shasta County. It is ten miles south of Redding, population 91,715, and twenty miles north of Red Bluff, population 14,250. Anderson is situated along Interstate 5 and is 150 miles north of Sacramento, the state capital. The City was incorporated January 16, 1956, as a general law city and it employs the council-manager form of government. The governing council is responsible, among other things for passing ordinances, adopting the budget and appointing committees. The Council appoints a City Attorney as legal counsel and a City Manager who is the administrative head of the government. The City Manager is responsible for carrying out the policies and ordinances of the governing council, for overseeing day-to-day operations of the government, and for appointing the heads of the various departments. The council is elected on a non-partisan basis. Council members serve four-year staggered terms, with either two or three council members elected every two years. The council, from its members, selects a Mayor and Vice-mayor.

The City of Anderson provides a full range of services, including police, the maintenance of streets and other infrastructure, recreational activities and cultural events. The City also provides water and sewer services to its citizens.

Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Anderson operates.

Local Economy
Historically, the Anderson local economy has been primarily influenced by wood and lumber related industries. Of the 13 largest manufacturers in 1990, ten were directly involved in wood products processing and accounted for 2,000 of the total 2,112 manufacturing related jobs in the greater Anderson area. Mill closures culminating in the 2001 closure of the Shasta Paper Company resulted in elimination of many of these jobs, however, numerous jobs have been created in retail and tourist related businesses. Also, a number of new jobs have been developed in non-timber related manufacturing. While the timber is still very important and the City continues to actively promote the unique characteristics of the community that make it attractive to timber product industries, the local economy is increasingly influenced by non-timber related businesses.

In 1999, the City annexed 186 acres of industrially zoned property in the Ox Yoke Road area with the intention of encouraging the diversification of manufacturing.

In 2000, the Anderson Redevelopment Agency formed the Southwest Redevelopment Project Area. Since that time, the City had actively used redevelopment funding to make substantial improvements to the downtown area, facilitate private development through land acquisition and sale, and construction of infrastructure improvements. In 2011, the California Supreme Court upheld AB1X 26 dissolving Redevelopment Agencies. Note 14 contains detailed information about Redevelopment Dissolution.

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The COVID-19 pandemic continues to influence funding in both positive and negative manners. Supply chain constraints and inflation are concerns that we will be monitoring closely in the next several fiscal years.

The City of Anderson continues to see strong growth in single family home sales, along with new construction projects for vehicle and equipment sales, fuel stations, restaurants, and a national equipment rental chain. Several projects are also being completed in our planning department, including, hotels, manufacturing, fuel stations, affordable housing and a full-service car wash.

Accounting, Budgetary and Loss Control
Fund Accounting
The City's accounting system is organized and operated on a "fund basis." A fund is defined as a fiscal accounting entity with a selfbalancing set of accounts. Individual funds are used for the purpose of carrying on specific activities or attaining certain objectives. The accounting system has been developed to make it possible to present fairly and with full disclosure the financial position and results of financial operations of each fund. Additional information about the City's use of fund accounting is in Note 1 to the financial statement.

Internal Control
The City's general policies and procedures are designed to reasonably safeguard its assets, check the reliability of its accounting data, and promote operational efficiency. We believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of all financial transactions.

Budgetary Control
In June of odd numbered years, the City Council considers and adopts a budget plan for the coming two fiscal years. In June of each fiscal year, appropriations are adopted for the upcoming fiscal year for each fund and for departmental units within each fund. Budgetary control is maintained at the fund level; the City Manager may transfer appropriations between accounts in each fund. However, any revision that alters the total expenditure level of a fund must be approved by the City Council. Additional information about the City's budget policies can be found in Note 1 to the financial statements.

Cash Management
The City of Anderson follows the practice of pooling temporarily idle cash during the year. Monies not required for immediate expenditure are invested in accordance with State law and the City's formal investment policy. These monies were invested in demand deposits, U.S. Government securities, and the Local Agency Investment fund.

Notes 1 and 2 to the financial statements contain additional information.

Fiduciary Operations
The City maintains a number of fiduciary funds, which contain assets held in trust for other agencies.

Fixed Assets
The general fixed assets of the City are those fixed assets used in the performance of general governmental functions and exclude the fixed assets of Enterprise fund. As of June 30, 2021, the City's capital assets, including both governmental and business-type, amounted to $35,148,412. Note 3 to the financial statements contain additional information about fixed assets.

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Debt Obligations
The City uses lease-purchase financing and certificates of participation, as well as traditional debt instruments, when deemed appropriate. The City has neither outstanding general obligation bonds nor authorized but unused general obligations bonds at this time. A complete description of all outstanding debts can be found in Note 4 to the financial statements.

Risk Management
The City is a member of the Northern California Cities Self-Insurance Fund, a Joint Powers Authority providing its member cities a shared risk plan for worker's compensation and liability insurance. The City's Workers' Compensation Program comprises a banking or deductible layer for claims up to $100,000 and a shared risk pool for claims from $100,000 to $500,000. Excess coverage is provided for claims over the shared risk layer up to the statutory limit. The Liability Program comprises a banking or deductible layer for claims up to $50,000, and a shared risk pool for claims from $50,000 to $500,000. Excess coverage is provided for claims over the shared risk layer up to $40,000,000. A complete discussion of the City's worker's compensation and liability insurance programs is in Note 5 to the financial statements.

Pension Benefits
The City of Anderson contributes to the California Public Employees Retirement System (PERS), an agent multiple-employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. A complete discussion of the City's retirement plan is in Note 7 to the financial statements.

Acknowledgements
The City's fiscal condition remains strong. This is not achieved without the commitment and leadership of the City Council and City Manager, as well as the cooperation of all department heads and employees. I would especially like to thank the entire staff of the Finance Department for their dedication to processing the daily fiscal transactions of the City in an efficient manner. Without their hard work and dedication, this Financial Statement would not be possible. ~~
Liz Cottrell
Assistant City Manager/Finance Director/Treasurer
Page4
City of Anderson

ORGANIZATIONAL CHART
June 30, 2021
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FINANCE POLICE
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Purchasing Operalional Services
Utility Billing Patrol
Finance Investigation
Payroll Communications
Treasury Animal Control
Information Systems
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CITIZENS OF ANDERSON

MAYOR & CITY COUNCIL
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Recreation
Senior Services
Youth Programs
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BOARDS & COMMISSIONS
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Public Information Grants Administration
City Council Support Redevelopment Agency
Personnel Housing Programs
Risk Management

PUBLIC DEVELOPMENT
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/ --..., / " Parks Building Engineering Community Development Streets Planning Water Zoning Wastewatef Vehide Maintenance
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Page5
City of Anderson

CITY COUNCIL AND ADMINISTRATIVE PERSONNEL
June 30, 2021
CllY COUNCIL
Mayor ............................................................................................................................................................................................................ Susie Baugh Vice M ayor ............................................................................................................................................................................................. Baron Browning Council member .................................................................................................................................................................................. Michael Gallagher Council member .......................................................................................................................................................................................... Melissa Hunt Council member ............................................................................................................................................................................................ Stan Neutze

ADMINISTRATIVE PERSONNEL
City Manager ...................................................................................................................................................................................................... Jeff Kiser City Clerk ............................................................................................................................................................................................................ Jeff Kiser City Attorney ............................................................................................................................................................................................. Collin Bogener Assistant City Manager/Finance Director/Treasurer ...................................................................................................................................... L.lz Cottrell Director of Public Works .................................................................................................................................................................................... Jeff Kiser Police Chief .................................................................................................................................................................................................... Jon Poletski Page6
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INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and City Council
City of Anderson, California
Report on the Financial Statements
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CPAs © Advisors
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Anderson, California (the City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements The City's management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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.

Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements 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, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

Page8
INDEPENDENT AUDITORS• REPORT
(Continued)
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions
Jn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Anderson, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund, the Gas Tax Fund, the ADAP and Home Fund, the CDBG Fund, and the Low and Mod Income Housing Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters
Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 12 through 22 and pension disclosure schedules on pages 86 and 87 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other 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 introductory section, combining and individual nonmajor fund financial statements, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

Page9

INDEPENDENT AUDITORS' REPORT
(Continued)
The combining and individual nonmajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such 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 combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 9, 2022, 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 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 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.

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AGT CPAs & Advisors
Redding, California
February 9, 2022
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MANAGEMENT'S DISCUSSION ANO ANALYSIS
City of Anderson

MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2021

INTRODUCTION
This section of the Annual Comprehensive Financial Report provides a narrative overview and analysis of the financial activities of the City of Anderson for the fiscal year ended June 30, 2021. This should be read in conjunction with the transmittal letter and the financial statements.

FINANCIAL HIGHLIGHTS
• The assets of the City of Anderson exceeded its liabilities at June 30, 2021, by $43.13 million (net position). Due to the implementation of GASB 68, net pension liabilities are reported on the financial statements. Reporting of the City's net pension liability of $13.56 million resulted in an unrestricted net position of ($4,948,948) in the Governmental Activities. • Total net position increased by $.43 million, with an increase of $.46 million in net assets of governmental activities, and a decrease of $.0251 million in business-type activities.
• Governmental funds reported combined June 30, 2021, fund balances of $18.07 million, an increase of$ .35 million in comparison to the previous fiscal year. These fund balances are largely reserved for various purposes. • As of June 30, 2021, the General Fund had a year-end unassigned fund balance of $2,751,335, a decrease of 22% over the prior year unassigned fund balance of $3,521,655. The unassigned General Fund balance at June 30, 2021, represented 29% of 2020-2021 General Fund expenditures of $9,245,798. The decrease in the General Fund Reserve is largely due to a Council approved transfer to the Parks Capital Fund for the construction of River Splash.
• As of June 30, 2021, the Gas Tax Fund had a year-end restricted fund balance of $1,618,971. The restricted Gas Tax Fund balance at June 30, 2021 represented 184% of 2020-2021 Gas Tax Fund expenditures of $880,740. The restricted Gas Tax Fund balance increased by $551,916, from June 30, 2020, to June 30, 2021.
• During the fiscal year ended June 30, 2021, the City's net long-term liabilities decreased by $477,457, with an ending long-term liability balance of $4,389,997 (See Note 4).

City of Anderson

MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2021

OVERVIEW OF THE FINANCIAL HIGHLIGHTS
The basic financial statements are comprised of three components:

1. Government-wide financial statements,

2. Fund financial statements, and

3. Notes to the financial statements.

This report also includes other supplementary information section that presents required reports on internal controls and compliance with laws and regulations.

GOVERNMENT-WIDE FINANCIAL STATEMENTS
This set of statements is designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business.

The Statement of Net Position (Statement 1) presents information on all the City's assets and liabilities, with the difference reported as net position. Over time, increases or decreases in net position may serve as an indicator of whether the financial position of the City of Anderson is improving or declining.

The Statement of Activities (Statement 2) presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods, such as for uncollected taxes and earned but not yet used vacation time.

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees or are required by grantor agencies to be accounted for in this fashion (business-type activities). The governmental activities include general government, public safety, public works, planning, community development, and recreation and cultural. The business-type activities of the City are water and sewer.

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City of Anderson

MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2021
The government-wide financial statements include not only the City of Anderson itself (known as the primary government) but also its component units, entities for which the government is considered to be financially responsible. Blended component units, although legally separate entities are in substance, part of the government's operations and so data from these units are combined with data of the primary government.

On December 29, 2011, the California Supreme Court upheld Assembly Bi111X 26 dissolving all redevelopment agencies in the State of California. (See Note 14 for detailed information on the reporting of the former Anderson Redevelopment Agency). The City of Anderson elected to become the Successor Agency to the dissolved Anderson Redevelopment Agency. Information on Successor Agency Funds are reported as a private-purpose trust fund of the City of Anderson.

FUND FINANCIAL STATEMENTS
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Anderson, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Anderson can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.

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

City of Anderson

MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2021
The City of Anderson maintains 27 individual governmental funds. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, the Gas Tax Fund, the ADAP and Home Fund, the CDBG Fund, the Low and Mod Income Housing Fund, the Riverside East Debt Service Fund, and the Parks Capital Fund, all of which are considered major funds. Data from the other governmental funds are combined into a single, aggregated presentation.

Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this rep9rt.

The City of Anderson adopts annual appropriations for its major governmental funds. As required supplementary statements, budgetary comparison statements have been provided for the General Fund and Major Special Revenue Funds to demonstrate compliance with adopted appropriations. The basic governmental fund financial statements can be found on pages 28-38 of this report.

Proprietary Funds. The City of Anderson maintains enterprise and internal service proprietary funds.

Enterprise funds are used to report the same functions as business-type activities in the government-wide financial statements. The City of Anderson uses enterprise funds to account for its water and sewer enterprises. Both of the City's enterprise funds are considered major funds.

Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Anderson's various functions.

The City of Anderson uses its Internal Service Fund to account for public works charges to other departments, maintenance of the City's vehicle fleet, maintenance of the City's buildings and equipment, maintenance of the City's computer systems, and charges for workers' compensation and general liability insurance. Because these services primarily benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The City's Enterprise and Internal Service Fund are shown in detail on pages 39-44 of this report.

Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City of Anderson's own programs. The accounting used for fiduciary funds is much like that use for proprietary funds. The basic fiduciary fund financial statements can be found on pages 45-46 of this report.

Notes to the Financial Statements. The notes provide additional important information that is essential to the reader for a full understanding of the data provided in the government-wide and fund financial statements.

City of Anderson

MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2021

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net position may serve over time as a useful indicator of a government's financial position. For the City of Anderson, assets exceeded liabilities by $43.1 million at June 30, 2021. Net position increased by $.43 million in the Fiscal Year 2020-2021.

The City of Anderson's net position increased in the governmental activities and decreased in the business-type activities during the 2020-2021 fiscal year. Net position in governmental activities increased by $.46 million, and net position in business-type activities decreased by $0.0251 million.

Changes in Net Position
Years Ended June 30
Revenues
Program Revenues:

Charges for services
Operating grants and contributions
Capital grants and contributions
General Revenues:

Taxes:

Sales taxes
Property taxes
Motel taxes
Special gas taxes
Franchise taxes
Other taxes
Impact fees
Investment earnings
Gain on sale of assets
Capital Contributions
Transfers
Total Revenues
s
Governmental Activities
2021 2020
1,486,115 $
205,563
24,682
5,700,165
2,386,054
647,746
1,140,165
353,287
62,224
1,006,884
231,272
103,216
13,347,373
1,053,020
267,338
31,466
4,756,805
2,268,220
469,789
1,049,857
336,627
56,210
693,381
421,697
105,468
11,509,878
s
Business-type Activities
2021 2020
3,362,315 $ 3,342,759
-
15,567 61,493
10,316
699,780
(103,216} (105,468}
3,974,446 3,309,100
$
Total Primary Government
2021 2020
4,848,430 $
205,563
24,682
5,700,165
2,386,054
647,746
1,140,165
353,287
62,224
1,006,884
246,839
699,780
17,321,819
4,395,779
267,338
31,466
4,756,805
2,268,220
469,789
1,049,857
336,627
56,210
693,381
483,190
10,316
14,818,978

City of Anderson

MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2021
Governmental Activities
Years Ended June 30 2021 2020
-
Expenses
General Government 789,199 895,797
Public Safety 6,331,573 6,130,653
Public Works 1,395,954 1,298,170
Planning 304,883 321,879
Community Development 1,498,679 1,333,566
Recreation and cultural 2,564,278 1,725,343
Water
Sewer
Total Expenses 12,884,566 11,705,408
Change in Net Position 462,807 (195,530)
Net Position • Beginning of Year 31,564,109 31,759,639
Net Position • End of Year $ 32,026,916 $ 31,564,109 $
Business-type Activities Total Primary Government
2021 2020 2021 2020
T 789,199 895,797
- 6,331,573 6,130,653
- 1,395,954 1,298,170
304,883 321,879
1,498,679 1,333,566
T 2,564,278 1,725,343
1,874,231 1,731,822 1,874,231 1,731,822
2,125,372 2,242,422 2,125,372 2,242,422 - 3,999,603 3,974,244 16,884,169 15,679~652 (25,157) (665,144) 437,650 (860,674)
11,131,700 11,796,844 42,695,809 43,556,483
11,106,543 $ 11,131,700 $ 43,133,459 $ 42,695,809
A large portion of the City of Anderson's net position $31,439,382, reflects the City's investment in capital assets (e.g. land, buildings, machinery and equipment), less any related debt used to acquire those assets that are still outstanding. The City of Anderson uses these assets to serve its citizens and businesses; consequently, these assets are not available for spending. Although the City of Anderson's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

Another large portion of the City of Anderson's net position, $15,790,158 represents resources that are subject to external restrictions on how they may be used. Due to the implementation of GASB 68, the City is required to report net pension liability. Reporting of net pension liability resulted in a $(4,948,948) deficit in governmental activities unrestricted net position. Business-type activities reported $852,867 in unrestricted net position at year end.

City of Anderson

MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2021
Net Position
Governmental Activities Business-Type Activities Total Primary Government June 30 2021 2020 2021 2020 2021 2020
ASSETS
Current and other assets $ 23,131,711 $ 23,222,872 $ 4,254,313 $ 4,847,391 $ 27,386,024 $ 28,070,263 Capital assets 24,723,236 24,033,271 10,425,176 10,160,064 35,148,412 34,193,335 TOTAL ASSETS 47,854,947 47,256,143 14,679,489 15,007,455 62,534,436 62,263,598 Deferred outflows from eensions 2,328,817 2,308,520 454,894 511,042 2,783,711 2,819,562

LIABILITIES
Long-term liabilities 14,575,076 13,764,533 2,771,381 2,694,223 17,346,457 16,458,756 Other liabilities 2,999,338 3,463,359 1,079,152 1,444,588 4,078,490 4,907,947 TOTAL LIABILITIES 17,574,414 17,227,892 3,850,533 4,138,811 21,424,947 21,366,703 Deferred inflows from pensions 582,434 772,662 177,307 247,986 759,741 1,020,648

NET POSITION
Net investment in capital assets 21,185,706 20,626,615 10,253,676 9,984,064 31,439,382 30,610,679 Restricted 15,790,158 15,101,783 15,790,158 15,101,783
Unrestricted (4,948,948) (4,164,289) 852,867 1,147,636 (4,096,081) (3,016,653) TOTAL NET POSITION $ 32,026,916 $ 31,564,109 s 11,106,543 $ 11,131,700 $ 43,133,459 $ 42,695,809 Governmental Activities. Primary Governmental activity expenses totaled $12.8 million in Fiscal Year 2020-2021. Program revenues totaled $1. 71 million. General revenues and transfers totaled $11.63 million. Sales tax revenue of $5. 7 million (49 percent) represented the largest share of general revenues and transfers.

Public safety activity expenses of $6.33 million represented the largest portion of governmental activity expenses (49 percent). Community development activity expenses of $1.49 million accounted for another 12 percent. Public works activity expenses of $1.39 million represented 11 percent. General government activity expenses of $.78 million represented 6 percent, recreation and cultural activity expenses of $2.5 million represented 20 percent, and planning activity expenses of $0.30 million represented 2 percent.

City of Anderson

MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2021
Business-type Activities. Business-type activity expenses totaled $3.99 million in Fiscal Year 2020-2021. Charges for services totaled $3.36 million. Water enterprise expenses totaled $1.87 million, with charges for water services totaling $1.56 million. Sewer enterprise expenses totaled $2.12 million, with charges for sewer services totaling $1.79 million.

FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted earlier in this discussion and analysis, the City of Anderson uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements. These funds have been classified as governmental or proprietary.

Governmental funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.

As of June 30, 2021, the City of Anderson's governmental funds reported combined ending fund balances of $18.07 million.

General Fund. The General Fund is the chief operating fund of the City of Anderson. In 2020-2021, the City experienced a deficit of General Fund revenues and other financing sources over General Fund expenses and other financing uses in the amount of ($932,794). This decreased the year-end General Fund balance to $3,125,262 of which $140,764 is nonspendable, $233,163 is assigned, and $2,751,335 is unassigned.

Expressed as a percentage of annual expenditures, the unassigned General Fund balance stood at 29% of expenditures on June 30, 2021. The City's unassigned General Fund balance is above the Council's target of 20 - 25%.

General Fund revenues. The Bradley-Burns Sales and Use Tax revenues increased by 18% in the 2020-2021 fiscal year from 2019-2020. The Transaction and Use Tax (Measure A) increased by 16% in 2020-2021. Property tax revenues increased by 5%. Assessed property values increased by 8. 74% in 2020-2021. Transient occupancy (motet) taxes showed a 38% increase in 2020-2021.

Licenses and permits increased 7%, the category of fines, forfeitures, and penalties decreased by 67%. Intergovernmental revenues decreased by 16%. Charges for services increased by 37%.

Overall, general fund revenues increased, from $9,045,607 in Fiscal Year 2019-2020 to $10,313,004 in Fiscal Year 2020-2021 largely due to increases in sales tax revenues, Transient Occupancy Tax, and charges for services.

City of Anderson

MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2021
--
General Fund Revenues
2020/2021 Change From
2019/2020 2020/2021 % of Total 2019/2020
Sales and use taxes $ 4,756,805 $ 5,700,165 55.3% $ 943,360 Property taxes 2,146,023 2,262,288 21.9% 116,265
Motel taxes 469,789 647,746 6.3% 177,957
Franchise taxes 336,627 353,287 3.4% 16,660
licenses and permits 471,290 504,309 4.9% 33,019
Fines, forfeitures, and penalties 116,724 37,949 0.4% (78,775) Use of money and property 60,188 39,014 0.4% (21,174)
Intergovernmental 136,047 113,865 1.1% (22,182)
Charges for services 359,681 495,178 4.8% 135,497
Other 192,433 159,203 1.5% (33,230)
Total Revenues $ 9,045,607 $ 10,313,004 100.0% $ 1,267,397 General Fund expenditures. General Fund expenditures totaled $9,245,798 in 2020-2021. This was an increase of 4% compared to 2019-2020 General Fund expenditures of $8,928,286. This increase is due in general to increased costs for liability and worker's compensation costs and the as well as salary and benefit costs. Additionally, costs for improvements to City Parks contributed to the increase.

Governmental Funds. Governmental funds posted the following results for 2020-2021:

Gas Tax Fund
ADAP and HOME Fund
CDBG Fund
Low and Moderate Income Housing Fund
Riverside East Debt Service Fund
Parks Capital Fund
Other Governmental Funds
Excess
(Deficiency) of
Revenues Over
Expenditures
$ 566,216 $
$ 61,339 $
$ (61,594) $
$ (56,127) $
$ 1,167 $
$ (1,419,596) $
$ 84,301 $
Year End
Fund Balance
1,618,971
5,905,156
2,366,441
(346,580)
370,857
(67,904)
5,100,342

City of Anderson

MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2021
Proprietary funds. The City's two enterprise funds provide the same type of information found in the government-wide financial statements but with more detail. Highlights of the annual activity for these funds have already been provided in the discussion of the business-type activities.

GENERAL FUND BUDGETARY HIGHLIGHTS
A detailed budgetary comparison schedule for the year ended June 30, 2021, is presented as a basic financial statement. This can be found on pages 36-38.

General Fund
Revenues
Expenses
Excess (Deficiency)
Other Financing Uses and Sources
Beginning Fund Balance
Ending Fund Balance
lncrease/(Decrease)

CAPITAL ASSET AND DEBT ADMINISTRATION
$
$
$
Original
Budget
7,857,224 $
8,087,635
(230,411)
(10,000)
4,058,056
3,817,645 $
(240,411) $
Final
Budget Actual
10,403,480 $ 10,313,004
9,617,383 9,245,798
786,097 1,067,206
{2,017,955) (2,000,000)
4,058,056 4,058,056
2,826,198 $ 3,125,262
{1,231,858) $ (932,794)
Capital assets. The City of Anderson's investment in capital assets for its governmental and business-type activities as of June 30, 2021, amounted to $35 million (net of accumulated depreciation). This investment in capital assets includes land, park improvements, buildings and improvements, vehicles and equipment, streets, bikeways, water, sewer, storm drain systems, and construction in progress.

Additional information on the City's capital assets may be found in Note 3 to the basic financial statements.

Page21
City of Anderson

MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2021
Long-term debt. At June 30, 2021, the City had $ 3.76 million in governmental activity debt outstanding which includes CalPERS Side Fund refinance to Umpqua Bank. In addition, the City had $0.21 million in business-type activity debt outstanding. Net long-term debt decreased by $.53 million during Fiscal Year 2020-2021.

Additional information about the nature and type of long-term debt can be found in Note 4 to the basic financial statements and Note 14 for former RDA Bonds transferred to the Successor Agency.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES
Annually each May, the State Department of Finance releases their January 1 population estimates for all California cities and counties. The State Department of Finance estimated that Anderson's population was 10,702 as of January 1, 2021, a 0.05 percent increase from the prior year.

The COVID pandemic will continue to influence funding in both positive and negative manners. Federal funding will be realized in the 2021-2022 Fiscal Year by way of the America Rescue Plan Act. The City of Anderson will receive 1.2 million dollars in 2021-2022 and 1.2 million dollars in the 2022-2023 Fiscal Year. Additionally in the 2021-2022 water rates in the Water Fund will increase by 5% per Council resolution.

Supply chain constraints and inflation are concerns that we will be monitoring closely in next several fiscal quarters.

The City of Anderson continues to see strong growth in single family home sales, along with new construction projects for vehicle and equipment sales, fuel stations, restaurants, and a national equipment rental chain. Several projects are also being completed in our planning department, including, hotels, manufacturing, fuel stations, affordable housing and a full-service car wash. The City continues to enhance community events with this summer featuring the 40th anniversary of the Mosquito Serenade, summer fun at the splash park. Winter will bring Christmas in Anderson and ice skating at the Rink downtown. Anderson continues to grow the slogan that we are the place to ''live, Work, and Play".

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Anderson's financial condition for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director/Treasurer, City of Anderson, 1887 Howard Street, Anderson, California 96007.

Page22

BASIC FINANCIAL STATEMENTS
City of Anderson

STATEMENT OF NET POSITION
June 30, 2021

ASSETS AND DEFERRED OUTFLOWS
Assets
Cash and cash equivalents
Receivables:

Taxes
Accounts
Interest
Due from other governments
Inventories and prepaid expenses
Prepaid pension expense
Internal balances
Restricted assets:

Cash and cash equivalents
Loans receivable
Nondepreciable capital assets
Depreciable capital assets - net
Total Assets
Deferred Outflows of Resources
Deferred outflows from pensions

TOTAL ASSETS AND DEFERRED OUTFLOWS
The accompanying notes are an integral part of these financial statements. $
$
Governmental Business-Type
Activities Activities Total
9,263,377 $ 2,419,032 $ 11,682,409
3,116,116 T 3,116,116
931,111 212,451 1,143,562
2,420,629 2,420,629
377,648 54,066 431,714
190,260 49,426 239,686
216,664 27,968 244,632
(1,364,565) 1,458,231 93,666
2 21,184 21,186
7,980,469 11,955 7,992,424
3,093,409 3,093,409
21,629,827 10,425,176 32,055,003
47,854,947 14,679,489 62,534,436
2,328,817 454,894 2,783,711
50,183,764 $ 15,134,383 $ 65,318,147
Page24
City of Anderson

STATEMENT OF NET POSITION
{Continued)
Governmental Business-Type
June 30, 2021 Activities Activities Total

LIABILITIES, DEFERRED INFLOWS, AND NET POSITION
Liabilities
Accounts payable $ 372,510 $ 105,417 $ 477,927
Accrued payroll and benefits 323,082 46,264 369,346
Accrued interest 42,779 2,656 45,435
Customer/employee deposits 107,547 71,960 179,507
Other liabilities 60,536 60,536
Unearned revenue 1,534,767 800,425 2,335,192
Long-term liabilities:

Due within one year 558,117 52,430 610,547
Due in more than one year 3,574,181 205,269 3,779,450
Net pension liability 11,000,895 2,566,112 13,567,007
Total Liabilities 17,574,414 3,850,533 21,424,947
Deferred Inflows of Resources
Deferred inflows from pension 582,434 177,307 759,741
Net Position
Net investment in capital assets 21,185,706 10,253,676 31,439,382 Restricted for:

Capital improvements 4,906,179 4,906,179
Debt service 370,857 370,857
Transportation 1,618,971 1,618,971
Grants 8,791,539 8,791,539
Other 102,612 102,612
Unrestricted (4,948,948) 852,867 (4,096,081)
Total Net Position 32,026,916 11,106,543 43,133,459
TOTAL LIABILITIES, DEFERRED INFLOWS, AND NET POSITION $ 50,183,764 $ 15,134,383 $ 65,318,147 The accompanying notes ore an integral part of these financial statements.

Page25
City of Anderson

STATEMENT OF ACTIVITIES
YearEndedJune3~2021
Primary Government
Governmental activities:

General government
Public safety
Public works
Planning
Community development
Recreation and cultural
Total Governmental Activities
Business-type activities:

Water
Sewer
Total Business-Type Activities
Total Primary Government
$
$
The occompanyir19 notes ore on integral pon of these ftnonciol statements.

Charges for
Expenses Services
789,199 $ 108,417 $
6,331,573 265,144
1,395,954 355,895
304,883 37,872
1,498,679 557,269
2,564,278 161,518
12,884,566 1,486,115
1,874,231 1,565,871
2,125,372 1,796,444
3,999,603 3,362,315
16,884,169 $ 4,848,430 $
Program Revenues
Operating Capital Net
Grants and Grants and (Expense)
Contributions Contributions Revenue
T $ - $ (680,782)
171,702 24,682 (5,870,045)
- (1,040,059)
- - (267,011)
33,861 - (907,549)
- (2,402,760)
205,563 24,682 (11,168,206) -- -
- 21,844 (286,516)
- 677,936 349,008
¥ 699,780 62,492
205,563 $ 724,462 $ (11,105,714)

City of Anderson

STATEMENT OF ACTIVITIES
(Continued)
Year Ended June 30, 2021
Change in Net Position
(Expense) revenue - net
General Revenues and Transfers
General revenues:

Taxes:

Sales taxes
Property taxes
Motel taxes
Special gas taxes
Franchise taxes
Other taxes
Impact fees
Investment earnings
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning of Year
Net Position - End of Year
The accompanying notes are an integral part of these financial statements. $
$
Governmental Business-Type
Activities Activities Total
(11,168,206) $ 62,492 $ (11,105,714)
5,700,165 - 5,700,165
2,386,054 2,386,054
647,746 - 647,746
1,140,165 - 1,140,165
353,287 - 353,287
62,224 - 62,224
1,006,884 1,006,884
231,272. 15,567 246,839
103,216 (103,216)
11,631,013 (87,649) 11,543,364
462,807 (25,157) 437,650
31,564,109 11,131,700 42,695,809
32,026,916 $ 11,106,543 $ 43,133,459
Page27
City of Anderson

BALANCE SHEET-GOVERNMENTAL FUNDS
low and
General Gas Tax AOAPand CDBG Mod Income Balance
~2021 Fund Fund Home Fund Fund Housing Fund Forward
ASSETS
Cash and cash equivalents $ 250,914 s 1,426,110 s 805,016 $ 966,179 s . $ 3,448,219 Receivables:

Taxes 1,500,071 109,900 1,609,971
Accounts 109,049 49,262 158,311
Interest 1,460,206 685,548 274,263 2,420,017
Loans 4,694,300 1,798,316 1,402,510 7,895,126
Due from other governments 123,182 26,342 33,861 183,385 Due from other funds 1,646,723 85,080 386,157 2,117,960 Inventories 11,337 11,337
Prepaid expenses and deferred charges 129,427 129,427
Advances to other funds
Restricted cash --- TOTAL ASSETS $ 3,770,703 s 1,647,432 s 7,394,941 $ 3,483,904 $ 1,676,773 $ 17,973,753 LIABILmES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities
Accounts payable $ 197,286 $ 27,547 $ . $ 13,750 $ 2,414 $ 240,997 Accrued payroll and benefits 269,586 1,374 550 271,510
Accrued interest
Other liabilities 178,569 914 179,483
Unearned revenue
Due t o other funds 12,464 416,791 930,677 1,359,932
Advances from other funds 815,449 815,449
Advances from grantor governmenH - - 17,115 17,115
Total Llabilitfes 645,441 28,461 29,579 431,915 _1,749,090 2,884,486 Deferred Inflows of Resources
Interest on note$ receivable 1,460,206 685,548 274,263 2,420,017 Fund Balances (Deficit)
Nonspendable 140,764 140,764
Restricted 1,618,971 5,905,156 2,366,441 1,402,510 11,293,078 Committed
Assigned 233,163 233,163
Unassigned 2,751,335 (1,749,090) 1,002,245
Total Fund Balances 3,125,262 1,618,971 5,905,156 2,366,441 (346,580) 12,669,250 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 3,770,703 $ 1,647.432 $ 7,394,941 $ 3,483,904 $ 1,676,773 $ 17,973,753 TM-aaompany;ng nore1 a~ on ;nte9ral pOrt oft~ fmancial statr~nts.

Page28
City of Anderson

BALANCE SHEET-GOVERNMENTAL FUNDS
(Continued)
Balance Riverside East Nonmajor Total
Brought Debt Service Parks Governmental Governmental
June 30, 2021 Forward Fund capital Fund Funds Funds
ASSETS
Cash and cash equivalents s 3,448,219 $ 392,050 s 1 s 5,317,004 $ 9,157,274 Receivables:

Taxes 1,609,971 1,503,315 2,830 3,116,116
Accounts 158,311 158,311
Interest 2,420,017 612 2,420,629
Loans 7,895,126 85,343 7,980,469
Due from other governments 183,385 10,738 194,123
Due from other funds 2,117,960 80,252 2,198,212
Inventories 11,337 ~ 11,337
Prepaid expenses and deferred charges 129,427 129,427
Advances to other funds - 120,485 120,485
Restricted cash - 2 2
TOTAL ASSETS s 17,973,753 s 1,895,365 $ l $ 5,617,266 $ 2S,486,385

LIABILITIES, DEFERRED INFLOWS OF RESOURCES, ANO FUND BALANCES Liabilities
Accounts payable $ 240,997 $ 1,080 s 6,223 $ 72,131 $ 320,431 Accrued payroll and benefits 271,510 271,510
Accrued interest 21,428 21,428
Other liabilities 179,483 179,483
Unearned revenue 1,502,000 1,502,000
Due to other funds 1,359,932 61,682 429,141 1,850,755
Advances from other funds 815,449 - 815,449
Advances from grantor governments 17,115 15,652 32,767
Total Liabilities 2,884,486 1,524,508 67,905 516,924 4,993,823 Deferred Inflows of Resources
Interest on notes receivable 2,420,017 2,420,017
Fund Balances (Deficit)
Nonspendable 140,764 - 120,485 261,249
Restricted 11,293,078 370,857 5,408,248 17,072,183
Committed
Assigned 233,163 233,163
Unassigned 1,002,245 (67,904) (428,3911 505,950
Total Fund Balances 12,669,250 370,857 ~ 7.~04) 5,100,342 18,072,545 TOTAL LIABILmES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 17,973,753 $ 1,895,365 $ 1 $ 5,617,266 s 25,486,385 T~ o«omr,,,ttyittg nortr ort on ;,,~ port of th•~ fino,,.;,,t srort~or,, Page29
City of Anderson

RECONCILIATION OF FUND BALANCES TO NET POSITION-GOVERNMENTAL ACTIVITIES June 30, 2021
Total Fund Balances Included in the Balance Sheet· Governmental Funds Assets recorded within the Statement of Net Position not reported in the funds:

Prepaid pension expense
Non depreciable capital assets
Depreciable capital assets
Accumulated depreciation
Other long-term assets are not available to pay for current-period expenditures and therefore are not reported in the governmental funds.

An internal service fund is used by management to charge the costs of data processing, customer service, maintenance, insurance, and fleet management services to individual funds. The assets and liabilities of internal service funds are Included in governmental activftles ,n the statement of net position.

Deferred inflows of resources recorded within the funds not reported in the Statement of Net Position:

Interest on notes receivable
Liabilitfes recorded within the Statement of Net Pos,tion not reported in the funds:

Accrued interest
Customer deposits
Net pension liabilities
Compensated absences
Long-term obligations
Deferred inflows and outflows recorded within the statement of net position not reported in the funds:

Deferred outflows of resources relating to pensions
Deferred inflows of resources relatinJ to pensions
Net Position Reported Within the Statement of Net Position - Governmental Activities The accompanying notes are an integral part of these financial statements. $ 34,933,933
(14,222,680)
(20,504)
11,400
(11,000,895)
(324,025)
(3,373,322)
$ 18,072,545
193,085
3,073,409
20,711,253
956,325
(438,755)
2,420,017
(14,707,346)
2,328,817
(582,434)
$ 32,026,916
Page30
City of Anderson

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES-GOVERNMENTAL FUNDS Low and
General Gas Tax ADAPand CDBG Mod Income Balance
Year Ended June 30, 2021 Fund Fund Home Fund Fund Housing Fund Forward Revenues
Sales taxes $ 5,700,165 $ . $ . s . $ - $ 5,700,165
Property taxes 2,262,288 - - 2,262,288
Motel taxes 647,746 - - 647,746
Franchise taxes 353,287 - 353,287
Ucenses and permits 504,309 . - 504,309
Fines, forfeitures, and penalties 37,949 - 37,949
Use of money and property 39,014 17,037 70,070 9,720 135,841 Intergovernmental revenue 113,865 1,140,165 - 33,861 - 1,287.891 Charges for current services 495,178 ~ 495,178
Other revenues 159,203 289,754 82 80 449,119 - Total Revenues 10,313,004 1,446,956 70,152 43,661 - 11,873,773 Expenditures
Current:

General government 1,096,181 - - 1,096,181
Public safety 5,635,130 - 5,635,130
Public works 426,326 426,326
Planning 296,316 296,316
Community development 616,165 - 8,8 13 105,255 21,156 751,389 Recreation and cultural 1,096,184 1,096,184
Capital outlay 454,414 - - 454,414
Debt service:

Principal 480,121 - ~
- 28,296 508,417
Interest and fiscal charges 25,701 - 6,675 32,376
Total Expenditures $ 9,245,798 $ 880,740 $ 8,813 $ 105,255 $ 56,127 $ 10,296,733 The accompanying natrs are an integral part of these financial statements.

Page31
City of Anderson

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES-GOVERNMENTAL FUNDS (Continued)
Low and
General Gas Tax ADAPand CDBG Mod Income Balance
Year Ended June 30, 2021 Fund Fund Home Fund Fund Housing Fund Forward Excess (Deficiency) of Revenues
Over {Under) Expenditures $ 1,067,206 $ 566,216 $ 61,339 $ (61,594) $ (56,127) $ 1,577,040 Other Financing Sources {Uses)
Operating transfers in
Operating transfers out (2,000,000) (14,300) (2,014,300) - Total Other Financing Sources (Uses) (2,000,000) (14,300) (2,014,300) - - Net Change in Fund Balances (932,794) 551,916 61,339 (61,594) (56,127) (437,260) Fund Balances (Deficit) - Beginning of Year 4,058,056 1,067,055 5,843,817 2,428,035 (290,453) 13,106,510 Fund Balances (Deficit) - End of Year $ 3,125,262 $ 1,618,971 $ 5,905,156 $ 2,366,441 $ (346,580) $ 12,669,250 The accompanying notes are an integral port of these financial statements.

City of Anderson

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES-GOVERNMENTAL FUNDS (Continued)
Riverside
Balance East Debt Nonmajor Total
Brought Service Parks Governmental Governmental
Vear Ended June 30, 2021 Forward Fund Capital Fund Funds F'unds Revenues
Sales taxes $ 5,700,165 $ . $ - $ - $ 5,700,165
Property taxes 2,262,288 113,070 2,375,358
Motel taxes 647,746 647,746
Franchise taxes 353,287 353,287
Licenses and permits 504,309 60,704 815,898 1,380,911
Fines, forfeitures, and penalties 37,949 112,638 150,587 Use of money and property 135,841 1,780 25,607 163,228
Intergovernmental revenue 1,287,891 124,682 1,412,573
Charges for current services 495,178 495,178
Other revenues 449,119 97,195 546,314 - - - Total Revenues 11,873,773 114,850 60,704 1,176,020 13,225,347 Expenditures
Current:

General government 1,096,181 4,643 20,182 1,121,006
Public safety 5,635,130 104,213 5,739,343
Public works 426,326 138,048 564,374
Planning 296,316 296,316
Community development 751,389 751,389
Recreation and cultural 1,096,184 11,495 1,107,679
Capital outlay 454,414 1,415,642 726,468 2,596,524
Debt service:

Principal 508,417 43,000 30,767 55,000 637,184
Interest and fiscal charges 32,376 66,040 22,396 47,808 168,620 Total ~penditu!es $ 10,296,733 s 113,683 $ ~ 80,300 $ 1,091,7192 12,982,435 The accompanying notes are an integral part of these financial statements.

Page33
City of Anderson

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES-GOVERNMENTAL FUNDS (Continued)
Riverside
Balance East Debt Nonmajor Total
Brought Service Parks Governmental Governmental
Year Ended June 30, 2021 Forward Fund Capital Fund Funds Funds Excess (Deficiency) of Revenues
Over (Under) Expenditures $ 1,577,040 $ 1,167 $ (1,419,596) $ 84,301 $ 242,912 Other Financing Sources (Uses)
Operating transfers in 409 2,000,000 117,107 2,117,516
Operating transfers out {2,014,300) (2,014,300)
Total Other Financing Sources (Uses) (2,014,300) 409 2,000,000 117,107 103,216 Net Change in Fund Balances (437,260) 1,576 580,404 201,408 346,128 Fund Balances (Deficit) - Beginning of Year 13,106,510 369,281 (648,308) 4,898,934 17,726,417 Fund Balances (Deficit) - End of Year $ 12,669,250 $ 370,857 $ (67,904} $ 5,100,342 $ 18,072,545 The o,;,;ompanylng notes or,: on lntegrol port of these finonciol stotements.

Page34
City of Anderson

RECONCILIATION OF CHANGE IN FUND BALANCES TO CHANGE IN NET POSITION- GOVERNMENTAL ACTIVITIES Vear Ended June 30, 2021
Total Net Change in Fund Balances Included in the Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds
Governmental funds report capital outlay and capitalized interest as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense:

Capital outlay
Depreciation expense
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. In addition, some revenues are reported in the funds in the year of collection and not reported in the statement of activities as they had been previously accrued and reported.

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

Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.

Some transactions reported in the governmental funds require the use of current financial resources and, therefore, are reported as expenditures but are reported as prepaid expenses and expensed over their useful life in the Statement of Activities.

An internal service fund is used by management to charge the cost of data processing, customer service, maintenance, insurance, and fleet management services to individual funds. The net revenue of certain activities of the internal service fund is reported within governmental activities.

Net Change in Net Position Reported Within the Statement of Activities - Governmental Activities The accompanying notes ore on integral part of these financial statements. $ 1,560,719
(1,072,733)
$ 346,128
487,986
18,811
637,264
(523,099)
(474,000)
(30,283)
$ 462,807
Page35
City of Anderson

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL-GENERAL FUND AND

MAJOR SPECIAL REVENUE FUNDS
General Fund Gas Tax Fund
Variance Variance
Budgeted Amounts with Final Budgeted Amounts with Final Year Ended June 30, 2021 Original Final Actual Budget Original Final Actual Budget Revenues
Sales taxes $ 4,137,978 $ 5,700,165 $ 5,700,165 $ s . $ $ - s Property taxes 1,870,818 2,210,302 2,262,288 51,986
Motel taxes 420,000 647,746 647,746
Franchise taxes 306,365 353,285 353,287 2
licenses and permits 411,176 507,068 504,309 (2,759}
Fines, forfeitures, and penalties 27,864 27,864 37,949 10,085 Use of money and property 27,564 27,564 39,014 11,450 1,500 1,500 17,037 15,537 Intergovernmental revenue 78,408 210,164 113,865 (96,299) 613,500 1,182,884 1,140,165 (42,719) Charges for current services 502,351 590,236 495,178 (95,058) Other revenues 74,700 129,086 159,203 30,117 289,754 289,754 Total Revenues 7,857,224 10,403,480 10,313,004 (90,476) 615,000 1,474,138 1,446,956 (27,182) - Expenditures Current:

General government 901,836 1,063,536 1,096,181 (32,645) Public safety 5,409,589 5,857,786 5,635,130 222,656
Public works 664,920 879,500 426,326 453,174
Planning 193,174 443,984 296,316 147,668
Community development 439,559 674,758 616,165 58,593
Recreation and cultural 637,655 1,071,497 1,096,184 (24,687} Capital outlay 35,000 37,697 454,414 (416,717)
Debt service:

Principal 505,822 505,822 480,121 2S,701
Interest and fiscal charges - 25,701 ___ !25,701)
Total Elcpenditures 8,087,635 9,617,383 9,245,798 371,585 699,920 917,197 880,740 36,457 Excess (Deficiency) of Revenues
OVer (Under) Expenditures (230,411) 786,097 1,067,206 281,109 (84,920) 556,941 566,216 9,275 Other Financing sources (Uses)
Operating transfers in 12,500 12,500 (12,500)
Operating transfers out (22,500) (2,030,455) (2,000,000) 30,455 (14,210) (14,210) (14,300) (90) Total Other Financing Sources (Uses) (10,000) (2,017,955) (2,000,000) 17,955 [14,210) (14,210) (14,300) (90) Net O,ange in Fund Balances (240,411) (1,231,858) {932,794) 299,064 (99,130) 542,731 551,916 9,185 Fund Balances (Deficit)· Beginning of Year 4,058,056 4,058,056 4,058,056 1,067,055 1,067,055 1,067,055 Fund Balances (Deficit)· End of Year s 3,817,645 $ 2,826,198 $ 3,125,262 s 299,064 $ 967,925 s 1,609,786 $ 1,618,971 s 9,185 Tht otcOlflPOr,)'mg rt0ki orr 011 lntrgrolpartof tMsefinancial .statetMnU.

Page36
City of Anderson

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL- GENERAL FUND AND

MAJOR SPECIAL REVENUE FUNDS
(Continued)
AOAP and Home Fund CDBGFund
Variance Variance
Budgeted Amounts with Final Budgeted Amounts with Final Year Ended June 30, 2021 Original Final Actual Budget Original Final Actual Budget Revenues
Sales taxes s - s s s $ $ s s
Property taxes
Motel taxes
Franchise taxes
Licenses and permits
Fines, forfeitures, and penalties
Use of money and property soo 68,767 70,070 1,303 10,2S2 10,252 9,720 (532) Intergovernmental revenue 33,861 33,861
Charges for current services
Other revenues 82 82 80 80 -- Total Revenues 500 68,767 70,152 1,385 10,252 10,252 43,661 33,409 Expenditures
Current:

General government
Public safety
Public works
Planning
Community development 107,800 107,800 uu 98:.987 89,516 89:,S.16 1os.m {15,739} Recreation and cultural
capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 107,800 107,800 -- 8,813 - 98,987 89,516 Sj ,516 105,255 j15,739l Excess (Deficiency) of Revenues
Over (Under) Expenditures (107,3001 139,033) 61,339 100,372 (79,264) (79,2641 --- _(61,594) 17,670 Other Financing Sources (Uses)
Operating transfers in
Operating transfers out
Total Other Financing Sources (Uses)
Net Change in fund Balances (107,3001 (39,033) 61,339 100,372 (79,264) (79,264) (61,594) 17,670 Fund Balances (Deficitl - Beginning of Year 5,843,817 5,843,817 5,843,817 2,428,035 2,428,035 2,428,035 fund Balances IOeflcitl - End of Year s 5,736,517 s S,804,784 s S,905,156 s 100,372 s 2,348,771 s 2,348,771 s 2,366,441 $ 17,670 tM accompany/no notrJ ~ an intr;raJ pan of thnr jinanclot state-nwnts.

Page37
City of Anderson

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL-GENERAL FUND AND

MAJOR SPECIAL REVENUE FUNDS
(Continued)
Year Ended June 30, 2021
Revenues
Sa!es taxes
Property taxes
Motel taxes
Franchise taxes
Licenses and permits
Fines, forfeitures, and penalties
Use of money and property
Intergovernmental revenue
Charges for current services
Other revenues
Total Revenues
Expenditures
Current:

General government
Public safety
Public works
Planning
Community development
Recreation and cultural
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
over (Under) Expenditures
Other Financing sources (Uses)
Operating transfers in
Operating transfers out
Total Other Financing sources (Uses)
Net Change in Fund B.ilances
fund Balances (Deficit) • Bepnning of Vear
fund B.llances (Defldt) · End of Vear
Th~ accom,,,mylrtQ note's arr an lntrQrol part of rhesr /1rtanclaf st~,,ts. s
s
Budgeted Amounts
Original Final
- s
20,000 20,000
Low and Mod Income Housing fullCI
Actual
s $
Variance
with final
Budget
(20,000)
1,000
21,000
1,000 (1,000)
27,939
85,602
46,568
160,109
139,109)
(139,109)
(290,453)
(429,562) $
21,000

27.939 21,156
85,602 28,296
46,568 6,675
160,109 56,127
(139,109) __ 1i~l27)
(139,109)
(290,453)
(429,562) $
(56,127)
(290,453)
(346,580) $
(21,000)
6,783
57,306
39,893
103,982
82,982
82,982
82,982
Page38
City of Anderson

STATEMENT OF NET POSITION - PROPRIETARY FUNDS
Governmental
Business-Type Activities - Activities -
Enterprise Funds Internal
June 30, 2021 Water Fund Sewer Fund Total Service Fund

ASSETS AND DEFERRED OUTFLOWS
Current Assets
Cash and cash equivalents $ 268,772 $ 2,150,260 $ 2,419,032 $ 106,103 Receivables:

Accounts 212,266 185 212,451
Loans 11,955 11,955
Due from other governments 1,227 52,839 54,066
Inventories 44,742 4,684 49,426 50,562
Due from other funds 299,413 463,854 763,267
Prepaid expenses and deferred charges 1,809 26,159 27,968 22,s13 Total Current Assets 828,229 2,709,936 3,538,165 179,178 Noncurrent Assets
Restricted assets:

Cash and cash equivalents 18,939 2,245 21,184
Advances to other funds 694,964 694,964
Nondepreciable capital assets T - 20,000
Depreciable capital assets - net 4,406,345 6,018,831 10,425,176 918,574 Total Noncurrent Assets 4,425,284 6,716,040 11,141,324 938,574 Tota I Assets 5,253,513 9,425,976 14,679,489 1,117,752
Deferred Outflows of Resources
Deferred outflows from pensions 137,581 317,313 454,894 TOTAL ASSETS AND DEFERRED OUTFLOWS $ 5,391,094 $ 9,743,289 $ 15,134,383 $ 1,117,752 The accompanying notes are an integral part of these financial statements.

Page39
City of Anderson

STATEMENT OF NET POSITION - PROPRIETARY FUNDS
(Continued)
Governmental
Business-Type Activities - Activities -
Enterprise Funds Internal
June 30, 2021 Water Fund Sewer Fund Total Service Fund

LIABILITIES, DEFERRED INFLOWS, AND NET POSITION
Current Liabilities
Accounts payable $ 57,780 $ 47,637 $ 105,417 $ 52,079
Accrued payroll and benefits 13,289 32,975 46,264 51,572 Accrued interest 2,656 2,656 847
Customer/employee deposits 71,960 71,960
Due to other funds 1,017,058
Compensated absences payable - current 4,955 7,968 12,923 12,386 Unearned revenue 800,425 800,425
Bonds and loans payabte • current 3,657 35,850 39,507 126,143 Total Current Liabilities 151,641 927,511 1,079,152 1,260,085 Noncurrent Liabilities
Compensated absences - net 14,864 23,905 38,769 37,159
Bonds and loans payable • net 166,500 166,500 259,263
Net pension liability 776,113 1,789,999 2,566,112
Total Noncurrent Liabilities 790,977 1,980,404 2,771,381 296,422 Total Liabilities 942,618 2,907,915 3,850,533 1,556,507 - Deferred Inflows of Resources
Deferred inflows from pension 53,626 123,681 177,307
Net Position
Net investment in capital assets 4,406,345 5,847,331 10,253,676 581,876 Unrestricted (11,495} 864,362 852,867 (1,020,631) - Total Net Position 4,394,850 6,711,693 11,106,543 (438,755) TOTAL LIABILITIES, DEFERRED INFLOWS, AND NET POSITION $ 5,391,094 $ 9,743,289 $ 15,134,383 $ 1,117,752 The accompanying notes are an integral part of these financial statements.

City of Anderson

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - PROPRIETARY FUNDS Governmental
Business-Type Activities - Activities -
Enterprise Funds Internal
Year Ended June 30, 2021 Water Fund Sewer Fund Total Service Fund Operating Revenues
Charges for current services:

Waste water and water charges $ 1,527,317 $ 1,796,444 $ 3,323,761 $ Internal service fund charges - - 3,154,887
Permits and fees 4,819 - 4,819
Rental revenue 10,350 - 10,350
Other revenue 23,385 - 23,385 563
Total Operating Revenues 1,565,871 1,796,444 3,362,315 3,155,450 Operating Expenses
Cost of sales and service 972,459 1,460,982 2,433,441 3,031,277 Administrative services 674,638 368,092 1,042,730
Depreciation expense 225,871 280,642 506,513 196,284
Total Operating Expenses 1,872,968 2,109,716 3,982,684 3,227,561 Operating Income (Loss) (307,097) (313,272} (620,369) (72,111) Nonoperating Revenues (Expenses)
Investment income 3,988 11,579 15,567
Interest expense (1,263) (15,656) (16,919) (5,833)
Gain (loss) on sale of assets - 26,900
Total Nonoperating Revenues (Expenses) $ 2,725 $ (4,077) $ (1,352) s 21,067 The occompaflyin~ notes ore an integral port of these finoncia/ statements.

Page41
City of Anderson

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - PROPRIETARY FUNDS (Continued)
Business-Type Activities -
Enterprise Funds
Year Ended June 30, 2021 Water Fund Sewer Fund Total
Income (Loss) Before Capital Contributions and Transfers $ (304,372) $ (317,349) $ (621,721) Capital contributions 21,844 677,936 699,780
Transfers in
Transfers out (103,216) (103,216)
Change in Net Position (282,528) 257,371 (25,157)
Total Net Position - Beginning of Year 4,677,378 6,454,322 11,131,700 Total Net Position - End of Year $ 4,394,850 $ 6,711,693 $ 11,106,543 The accompanying notes are an integral part of these financial statements.

Governmental
Activities -
Internal
Service Fund
$ (51,044)
20,761
(30,283)
(408,472)
$ (438,755)
Page42
City of Anderson

STATEMENT OF CASH FLOWS-PROPRIETARY FUNDS
Governmental
Business-Type Activities - Activities -
Enterprise Funds Internal - - Year Ended June 30, 2021 Water Fund Sewer Fund Total Service Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users $ 1,564,613 $ 1,798,698 s 3,363,311 $ Cash received from interfund services provided - 3,168,926 Cash paid to employees (ind udtng employee benefits) (339,895) (913,105) (1,253,000) (1,304,958) Cash paid to suppliers (663,447) (944,653) (1,608,100) (1,294,756) Cash paid for interfund services used (618,872) (138,896) (757,768) (359,522) Net Cash Provided (Used) by Operating Activities (57,601) (197,956) (255,557) 209,690

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Cash received from (paid to) other funds (206,413) (249,823) (456,236) (136,811) Operating transfers (103,216) (103,216)
Net Cash Provided (Used) by Noncapital Financing Activities (206,413) (353,039) {559,452) (136,811)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Payments for the purchase of property (45,189) (26,656) (71,845) (360,633) Debt princfpal paid (25,338) (65,593) (90,931) (110;020) Debt interest paid {1,263) (15,726) (16,989) (6,517)
Debt proceeds received - 304,156
Sale of capital assets - 26,900
Net Cash Provided (Used) by Capital and Related Financing Activities {71,790) (107,975) (179,765) {146,114)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 3,988 11,579 15,567
Net Cash Provided (Used) by Investing Activities 3,988 11,579 15,567 Net Increase (Decrease) in Cash and Cash Equivalents (331,816) {647,391) (979,207) {73,235) Cash and Cash Equivalents - Beginning of Vear 619,527 2,799,896 3,419,423 179,338 Cash and Cash Equivalents - End of Year $ 287,711 $ 2,152,505 $ 2,440,216 $ 106,103 The accompanying notes are an integral part of these financial statements,

City of Anderson

STATEMENT OF CASH FLOWS- PROPRIETARY FUNDS
{Continued)
Governmental
Business-Type Activities - Activities -
Enterprise Funds Internal
Year Ended June 30, 2021 Water Fund Sewer Fund Total Service Fund

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) $ (307,097) $ (313,272) $ (620,369) $ (72,111) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation expense 225,871 280,642 506,513 196,284
Changes in:

Accounts receivable (2,799) 1,346 (1,453) 13,476
Due from other governments (99) (11,263) (11,362)
Inventories (2,407) (1,044) (3,451) (8,786)
Prepaid expenses and deferred charges 25,280 61,093 86,373 72p47 Deferred outflows from pensions 5,720 50,428 56,148
Accounts payable (82,179} (247,133) (329,312} (3,232)
Accrued payroll and benefits 1,567 3,773 5,340 11,105
Customer/employee deposits 1,640 1,640
Compensated absences payable 304 (15,660) (15,356) 907
Unearned revenue 12,171 12,171
Net pension liability 92,510 35,730 128,240
Deferred inflows from pensions (15,912) (54,767) (70,679) Total Adjustments 249,496 115,316 364,812 281,801
Net Cash Provided (Used) by Operating Activities $ (57,601) $ (197,956) $ (255,557) $ 209,690

RECONCILIATION OF TOTAL CASH AND CASH EQUIVALENTS
Cash and cash equivalents $ 268,772 $ 2,150,260 $ 2,419,032 $ 106,103 Restricted assets:

Cash and cash equivalents 18,939 2,245 21,184
Net Cash and Cash Equivalents $ 287,711 $ 2,152,505 s 2,440,216 $ 106,103 The accomponymg notes are an integral part of these financial statements.

Page44
City of Anderson

STATEMENT OF NET POSITION- FIDUCIARY FUNDS
Private·Purpose Custodial
June 30, 2021 Trust Fund Funds
ASSETS
Cash and cash equivalents $ 1,008,580 $ 3,207,451
Due from other governments . 1,151
Land held for resale 48,774
Restricted assets
Cash and cash equivalents 489,387
TOTAL ASSETS $ 1,546,741 $ 3,208,602

LIABILITIES
Accounts payable s 2,409 $ 72,108
Accrued interest 95,980
Accrued liabilities 5,977
Due to other groups 93,666
Long-term liabilities
Due within one year 251,510
Due in more than one year 5,790,597
TOTAL LIABILITIES 6,240,139 72,108

NET POSITION (DEFICIT)
Restricted for:

Held in trust for dissolution of RDA (4,693,398)
Held in trust for other governments . 3,136,494
TOTAL NET POSITION (DEFICIT) $ (4,693,398) $ 3,136,494
The accompanr,ng notes are an integral pan of these ftnanclal statements.

Page45
City of Anderson

STATEMENT OF CHANGES IN NET POSITION - FIDUCIARY FUNDS
Private-Purpose Custodial
Year Ended June 30, 2021 Trust Fund Funds
Additions
Property taxes $ 601,200 $
Seized funds and forfeited revenues - 1,846,870
Use of money and property 4,374 13,182
Total Additions 605,574 1,860,052
Deductions
Community development 485,553
Administrative costs - 59,378
Operating supplies - 43,539
Distributions - 687,464
Total Deductions 485,553 790,381
Change in Net Position 120,021 1,069,671 - Net Position (Deficit) Beginning of Vear - Restated (4,813,419) 2,066,823 Net Position (Deficit) End of Vear $ (4,693,398) $ 3,136,494 The accompanying notes are an integral part a{ these financial statements.

Page46
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Anderson, California (the City) have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below.

Reporting Entity The City is a municipal corporation governed by an elected five-member council. As required by accounting principles generally accepted in the United States of America, these financial statements include all of the funds of the City, as well as all of its component units. Component units are legally separate entities for which the City is financially accountable.

Due to financial and operational relationships, the City has one component unit - the Anderson Public Financing Authority. Based on the criteria of GASB Statement No. 61, this component unit is blended into the City's basic financial statements.

Anderson Public Financing Authority: In order to facilitate the financing of public improvements, as well as other facilities and improvements which can be funded through the issuance of tax exempt bonds, the City Council and the governing board of the Anderson Redevelopment Agency established a joint powers agency known as the Anderson Public Financing Authority (Authority). The Authority is authorized, among other things, to issue bonds pursuant to the provisions of the Marks-Roos locijl Bond Pooling Act of 1985 for the purpose of financing facilities and improvements.

Basis of Presentation The financial statement presentation required by GASB Statement Nos. 34, 37, 38, and 39, provides a comprehensive, entity-wide perspective of the City's overall financial position and results of operations while maintaining the presentation of the financial position, results of operations and cash flows, as applicable, of the City's major funds.

Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for services.

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 provided 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 included among program revenues are reported instead as general revenues.

City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
The accounts of the City are organized on the basis of funds. A fund is a separate accounting entity with a self-balancing set of accounts.

Each fund was established for the purpose of accounting for specific activities in accordance with applicable regulations, restrictions, or limitations. 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 statements.

Measurement Focus and Basis of Accounting The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues, other than grant revenue, to be available if they are collected within 90 days of the end of the current fiscal period. A one-year availability period is used for grant revenue recognition. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, principal debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Property taxes, franchise taxes, licenses, intergovernmental revenue, charges for services, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government.

The City reports the following major governmental funds:

General Fund: The General Fund is the City's primary operating fund and accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Gas Tax Fund: The Gas Tax Fund accounts for State funds received for use in providing construction and maintenance of the street system of the City.

ADAP and Home Fund: The ADAP and Home Fund accounts for the operating and financing of funds provided by Federal Housing and Urban Development for the rehabilitation and financing of homes through ADAP and Home funding.

Page48
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
CDBG Fund: The CDBG Fund accounts for funds provided by Federal Housing and Urban Development for the rehabilitation of homes and government structures through CDBG funding in addition to accounting for program income from closed grants/loans.

Low and Mod Income Housing Fund: The low and Moderate Income Housing Fund accounts for all activities resulting from the elimination of the Redevelopment Agency's low and moderate housing function. Primarily, this Fund utilizes program income from loan payments to provide for the development and assistance for low-income households.

Riverside East Debt Service Fund: The Riverside East Debt Service Fund accounts for debt service reserves as required by USDA for the Riverside East Sewer/Storm Drain project.

Porks Capitol Fund: The Parks Capital Fund accounts for impact fees that are restricted for improvements to the City's parks and grounds.

The City reports the following major proprietary funds:

Water Fund: The Water Fund accounts for the operation and maintenance of the City's water utility.

Sewer Fund: The Sewer Fund accounts for the operation and maintenance of the City's waste water utility.

Additionally, the City reports the following fund types:

Internal Service Fund: Internal Service Fund accounts for data processing, customer service, maintenance, insurance, fleet management, and services provided to other departments on a cost reimbursement basis.

Private-purpose Trust Fund: The Private Purpose Trust Fund is a fiduciary fund type used by the City to report trust arrangements under which principal and income benefit other governments. This fund reports the assets, liabilities, and activities of the City of Anderson Redevelopment Agency Successor Agency (Successor Agency).

Custodial Funds: Custodial Funds account for assets held by the City in a purely custodial capacity for individuals, private organizations, and/or other governments. These funds include the Shasta lnteragency Narcotics Task Force (SINTF) Fund and the County Seizure Fund.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

Page49
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
{Continued}
Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services, or privileges provided, including fees, fines and forfeitures, 2) operating grants and contributions; and, 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenue. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations.

The principal operating revenues of the City's enterprise funds are charges to customers for sales and services. Operating expenses for enterprise 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 nonoperating revenues and expenses.

Budgets Budgets for the General Fund and special revenue funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Formal budgetary integration is employed as a management control device during the year for these funds. Proprietary fund budgeting parallels that of private business enterprises. Expenditures may not legally exceed budgeted appropriations at the fund level. The City Manager is authorized to make budget transfers within any fund (the legal level). All revisions must be reported to the City Council before the end of the fiscal year. All unencumbered and unexpended appropriations lapse at the end of the fiscal year.

Encumbrances are reappropriated in the ensuing year's budget.

Cash and Cash Equivalents The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and highly liquid investments that are both readily convertible to known amounts of cash and (if applicable), so near (three months) their original maturity that there is insignificant risk of value changes because of interest rate changes. Funds in the State Treasurer's Investment Pool Local Agency Investment Fund are considered cash equivalents.

All of the City's investments at June 30, 2021, meet the above definition of cash equivalents.

The City follows the practice of pooling cash and investments of all funds, except for restricted funds required to be held separately.

Interest income earned on pooled cash and investments is allocated semi-annually to the various funds based on monthly cash balances.

The California Government Code and the investment policy of the City authorize the City to invest in obligations, participations, or other instruments of the U.S. Government or its agencies, state and municipal bonds, commercial paper of "prime" quality of the highest ranking or of the highest letter and numerical rating as provided by Standard & Poor's Corporation or Moody's Investor Service, Inc., bankers' acceptances, repurchase agreements, the State Treasurer's Investment Pool Local Agency Investment Fund, certificates of deposit or time deposits, and passbook savings account demand deposits. Reverse repurchase agreements may be made only when prior approval of the City Council has been given.

City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
Investments are reported at fair value based on quoted market prices with realized and unrealized gains or losses reported in the statements of activities and the statements of revenues, expenditures, and changes in fund balances. The State Treasurer's Investment Pool Local Agency Investment Fund operates in accordance with appropriate state laws and regulations. The reported value of the pool is materially equivalent to the fair value of the pool shares.

Receivables Accounts receivable consist of water and sewer billings and other miscellaneous billings. The water and sewer departments record service fees when earned with a corresponding receivable. The City also records receivables for other miscellaneous user fees and charges. Management records an allowance for doubtful accounts for all receivables which they deem uncollectible. Management determined there were no material uncollectible receivables at June 30, 2021.

Loans receivable consist of loans to individuals for housing rehabilitation and to businesses for construction and business loans.

Management considers all loans receivable to be collectible.

Taxes receivable consist of various sales and use taxes, property taxes, and special assessments. Management considers all taxes receivable to be collectible.

Inventories Proprietary fund inventories are adjusted to annual physical counts and are valued at cost, which approximates market, utilizing the weighted average method of valuation. The costs of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased.

Prepaid Expenses Payments made to vendors for services that will benefit the City for periods beyond the current fiscal year are recorded as prepaid expenses.

Prepaid Pension Expense During the year ended June 30, 2013, the City refinanced an existing $4.12 million pension side fund oblig.ation for its participation in the California Public Employees Retirement System (CalPERS). This obligation had not previously been reported in the financial statements as it was computed by CalPERS as a component of annual retirement expense. The payoff of this obligation has been reported as a prepaid pension expense in the government-wide statements as it constitutes future period pension costs and as an expenditure of the General Fund. See Note 4 for a description of the liability. lnterfund Transactions and Balances During the course of operations, numerous transactions that constitute reimbursements to a fund for expenditures/expenses initially made from one fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. In addition, on a less occasional basis, the City incurs transactions that constitute quasi-external transactions between funds. These transactions are accounted for as revenues, expenditures, or expenses in the funds involved in these transactions.

City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
All other interfund transactions are reported as transfers.

Fund transfers are necessary to properly account for cash increases/decreases in the appropriate funds. Transfers include, but are not limited to, the following:

1. To allocate funds for operations;

2. To allocate funds for equipment replacement;

3. To allocate funds for capital projects.

These transactions result in shorMerm interfund receivables and payables that are classified as "due from other funds" or "due to other funds" and in long-term interfund receivables and payables that are classified as "advances to other funds" or "advances from other funds" on the balance sheet - governmental funds and statement of net position - proprietary funds. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances."
Restricted Assets Certain proceeds of debt issues, as well as certain reserves set aside for their repayment, are classified as restricted assets on the statement of net position and balance sheets because their use is limited by applicable bond covenants.

Noncurrent Receivables Noncurrent portions of loans and interest receivable are reported on the governmental funds balance sheet in spite of the spending measurement focus of the governmental funds. As they are not "available spendable resources," noncurrent portions of loans receivable are offset by a reservation of fund balance, and noncurrent portions of interest receivable are offset by a corresponding deferred inflow of resources amount.

Capital Assets Capital assets are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are recorded at actual historical cost or estimated historical cost if actual cost is unavailable. Donated capital assets are recorded at estimated fair value at the date of donation.

Page52
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
Capital assets are depreciated using the straight-line method over the following estimated useful lives:

Buildings
Improvements
Equipment
Vehicles
Furniture and fixtures
Primarily 25 to 30 years
Primarily 10 to 30 years
Primarily 5 to 10 years
Primarily 5 to 10 years
Primarily 7 years
It is the policy of the City to capitalize all land, buildings, improvements, equipment, vehicles, furniture, and fixtures, except assets costing less than $5,000. The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized. Costs of assets sold or retired (and related amounts of accumulated depreciation} are eliminated from the accounts in the year of sale or retirement and the resulting gain or loss is included in the operating statement of the related fund. Major outlays for capital assets and improvements are capitalized as projects are constructed.

The City's capital assets include infrastructure acquired on or after July 1, 2002. GASB Statement No. 34 does not require retrospective reporting of infrastructure for the City.

Compensated Absences Vested or accumulated vacation leave, sick leave, and compensatory time are accrued in the proprietary funds and in the government-wide statements as the benefits accrue to employees. However, a liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations or retirements. In accordance with accounting principles generally accepted in the United States of America, no liability is recorded for nonvesting accumulated rights to receive sick pay benefits.

Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position includes a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) which will only be recognized as an outflow of resources (expense/expenditures) in the future. In addition to liabilities, the statement of net position includes a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and would only be recognized as an inflow of resources (revenue} at that time.

Pa_ge 53
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
For the City's pension plan, City contributions subsequent to the measurement date, differences between expected and actual experience, differences due to changes in assumptions, differences due to differences in proportions, differences between projected and actual earnings on plan investments and differences between projected and actual contributions are reported as deferred outflows/inflows of resources in the government-wide statement of net position. City contributions subsequent to the measurement date will be amortized during the next fiscal year. Differences between expected and actual experience, changes in assumptions, differences in proportions, and differences between projected and actual contributions are amortized over the estimated service lives of the pension plan participants.

Difference between projected and actual earnings on pension plan investments will be amortized over a five-year period.

Deferred inflows of resources occur in governmental funds when a potential revenue does not meet the availability criteria for revenue recognition, such as in the case of interest receivable on deferred loans. In subsequent periods, when the availability criteria is met, the deferred inflows of resources amount is removed from the balance sheet and the revenue is recognized.

Unearned Revenues Unearned revenues arise when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues also arise when resources are received by the City before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. ln subsequent periods, when both revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability for unearned revenue is removed from the balance sheet and revenue is recognized.

Long-Term Liabilities ln the government-wide financial statements, and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the statements of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed in the period the debt is issued. ln the governmental funds financial statements, bond premiums and discounts, as well as bond issuance costs, are recognized during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Net Pension Liability For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions and pension expense, information about the fiduciary net position of the City's California Public Employees' Retirement System (CalPERS) plan (the Plan) and additions to/deductions from the Plan's fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Page54
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
Net Position/Fund Equity Net position represent the difference between assets and liabilities. The City's net position are classified as follows:

Net Investment in Capital Assets: This represents the City's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component invested in capital assets, net of related debt.

Restricted Net Position - Expendable: Restricted expendable net position represent resources which are legally or contractually obligated to be spent in accordance with restrictions imposed by external third parties.

Unrestricted Net Position: Unrestricted net position represent resources derived from taxes; licenses and permits; fines; forfeitures and penalties; and charges for services. These resources are used for transactions relating to the general operations of the City, and may be used at the discretion of the City Council to meet current expenses for any purpose.

Fund balance of governmental funds is reported in various categories based upon the nature of the spending constraints of the revenue sources of these funds. The following classifications describe the relative strength of the spending constraints:

Nonspendable Fund Balance: Amounts that are in nonspendable form (such as inventory) or are required to be maintained intact.

Restricted Fund Balance: Amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions, or by enabling legislation.

Committed Fund Balance: Amounts constrained to specific purposes by the City itself, using its highest level of decision-making authority (i.e., City Council). To be reported as committed, amounts cannot be used for any other purpose unless the City takes the same highest level action to remove or change the constraint.

Assigned Fund Balance: Amounts the City intends to use for a specific purpose. Intent can be expressed by the City Council or by an official or body to which the City Council delegates the authority.

Unassigned Fund Balance: Amounts that are available for any purpose. Positive amounts are reported only in the general fund.

The City Council establishes (and modifies or rescinds) fund balance commitments by passage of an ordinance or resolution. This is typically done through adoption and amendment of the budget. A fund balance commitment is further indicated in the budget document as a designation or commitment of the fund (such as for special incentives). Assigned fund balance is established by the City Council through adoption or amendment of the budget as intended for specific purpose (such as the purchase of fixed assets, construction, debt service, or for other purposes).

Page55
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
When an expenditure is incurred for purposes for which both restricted and unrestricted resources are available, the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City Council has provided otherwise in its commitment or assignment actions.

The details of the fund balances are included in Note 13.

Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the basic financial statements and accompanying notes. Actual results may differ from those estimates.

Property Taxes Property taxes are assessed and collected by Shasta County. The County remits the property taxes to the City when the taxes are collected and the allocation has been determined. Property taxes attach as an enforceable lien on property as of January 1.

Taxes are levied on July 1, and are payable in two installments and become delinquent if not paid by December 10 and April 10.

The City participates in an alternative method of distribution of property tax levies and assessments known as the "Teeter Plan." The State Revenue and Taxation Code allows counties to distribute secured real property, assessment and supplemental property taxes on an accrual basis resulting in full payment to cities each fiscal year. Any subsequent delinquent payments and related penalties and interest during a fiscal year will revert to Shasta County. The Teeter Plan payment is included in property tax revenue.

Adoption of GASB Pronouncements GASB Statement No. 84, Fiduciary Activities was issued January 2017 to establish criteria for identifying fiduciary activities of all state and local governments. GASB 84 was implemented by the City during the fiscal year ended June 30, 2021. The City's Agency Funds were not impacted by this statement as all funds are classified as fiduciary activities per this statement.

Any references to the term "Agency Fund" has been updated to "Custodial Fund." The format of the fiduciary financial statements have also been updated to comply with the new requirements given by this statement. In addition, amounts previously presented as "Due to Other Groups" and "Accrued liabilities" in the custodial funds have been reclassified to "Held in trust for Other Governments" in Net Position of the Statement of Net Position - Fiduciary Funds in accordance with this statement.

Page56
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)

2. CASH AND CASH EQUIVALENTS
The City's cash and cash equivalents consisted of the following:

June 30, 2021
Cash on hand and in banks
State of California - Local Agency Investment Fund (LAIF) Union Bank of California money market funds:

Fidelity Institutional Government share CL-1
U.S. Bank money market funds:

Fidelity Government Portfolio Class I Money Market Fund Subtotal
Less: Fiduciary funds cash and cash equivalents -----------------------·---- Total City-Wide Cash and Cash Equivalents Cash and cash equivalents are displayed on the government-wide statement of net position as follows:

June 30, 2021
Cash and cash equivalents
Restricted cash and cas_h equivalents
Total
$ 3,316,065
12,603,559
2 489,387
16,409,013
4,705,418
$ 11,703,595
$ 11,682,409
21,186
$ 11,703,595
Page57
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code has provisions for financial institutions that limit custodial credit risk for deposits. Financial institutions are required to secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law. The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. The City's financial institutions also have insurance through the Federal Depository Insurance Corporation (FDIC). The City's investment policy has no additional provisions for limiting custodial credit risk for deposits.

Interest Rate Risk
While the City's investment policy does not address interest rate risk, the City manages its exposure to interest rate risks through reliance on the managers of Local Agency Investment Fund (LAIF).

Equity in Pooled Cash and Investments
The City invests funds in the State Treasurer's Pooled Money Investment Account (PMIA) through LAIF, a voluntary program created by statute in 1977. The PMIA has regulatory oversight from the Pooled Money Investment Board and an in-house Investment Committee. The Local Agency Investment Advisory Board has oversight of LAIF. The fair value of the City's position in the pool is materially equivalent to the value of pool shares. LAIF is an unrated external investment pool.

In accordance with authorized investment laws, the State Treasurer's Investment Pool (LAIF) invests in various structured notes and mortgage-backed securities, such as collateralized mortgage obligations. As of June 30, 2021, 2.31% of LAIF's investment portfolio was invested in structured notes and other asset-backed securities. In addition, PMIA's weighted average maturities was 0.95 years at June 30, 2021. (Copies of a report of LAlF's investments may be obtained from the State Treasurer's Office; Local Agency Investment Fund; P. 0. Box 942809; Sacramento, CA 94209-0001).

Page58
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)

3. CAPITAL ASSETS
Capital asset activity is summarized as follows:

Governmental Activities
Year Ended June 30, 2021
Nondepreciable capital Assets
Land
Construction in progress
Total Nondepreciable capital Assets
Depreciable Capital Assets
Buildings
Improvements
Equipment
Total Depreciable Capital Assets
Less: Accumulated Depreciation
Buildings
Improvements
Equipment
Total Less: Accumulated Depreciation
Depreciable Capital Assets • Net
Governmental Capital Assets - Net
Depreciation expense was charged to functions as follows:

Year Ended June 30, 2021
Governmental Activities
General government
Public safety
Public works
Community development
Recreation and cultural
Total Governmental Activities Depreciation Expense
Beginning
Balance
$ 2,902,940 $
1,215,161
4,118,101
5,074,604
27,438,311
3,473,615
35,986,530
2,984,280
10,125,447
2,961,633
16,071,360
19,915,170
$ 24,033,271 $
Additions Deletions
- $ . $
1,523,344
1,523,344
81,506
354,133 226,494
435,639 226,494
91,204
995,556
182,258 226,494
1,269,018 226,494 - (833,379)
689,965 $ . $
Transfers
. $
(2,548,036)
(2,548,036)
20,761
2,527,275
2,548,036
2,548,036
. $
s
$
Ending
Balance
2,902,940
190,469
3,093,409
5,095,365
30,047,092
3,601,254
38,743,711
3,075,484
11,121,003
2,917,397
17,113,884
21,629,827
24,723,236
13,933
22,873
513,488
540,204
178,520
1,269,018
Page59
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
Business-Type Activities
Year Ended June 30, 2021
Nondepreciable Capital Assets
Construction in progress
Total Nondepreciable Capital Assets
Depreciable Capital Assets
Buildings
Improvements
Equipment
Total Depreciable _fapital Assets
Less: Accumulated Depreciation
Buildings
Improvements
Equipment
Total Less: Accumulated Dep_reciation
Depreciable Capital Assets - Net
Business-Type Capital Assets - Net
Depreciation expense was charged to functions as follows:

Year Ended June 30, 2021
Business-Type Activities
Water
Sewer
Total Business-Type Activities Depreciation Expense
$
$
Beginning
Balance
- $
914,788
21,407,012
893,545
23,215,345
733,956
11,862,755
458,570
13,055,281
10,160,064
10,160,064 $
Additions Deletions
- $ - $
727,070
44,555
771,625 -
15,876
446,008
44,629
506,513
265,112
265,112 $ - $
Transfers
- $
-
- $
$
$
Ending
Balance
914,788
22,134,082
938,100
23,986,970
749,832
12,308,763
503,199
13,561,794
10,425,176
10,425,176
225,871
280,642
506,513

City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)

4. LONG-TERM LIABILITIES
The City has outstanding revenue bonds and notes from direct borrowings related to governmental activities totaling $2,517,000 and $1,241,728, respectively, and certificates of participation and notes from direct borrowings related to business-type activities totaling $171,500 and $34,507 respectively.

Following is a summary of changes in long-term liabilities:

Amount of
Original Beginning Ending Due Within
Year Ended June 30, 2021 Issuance Balance Additions Reductions Balance One Year Governmental Activities
Revenue bonds:
limited Obligation Improvement Bonds, Series 2001 $ 2,076,000 $ 1,545,000 s . $ 43,000 $ 1,502,000 s 45,000 CSOA Wastewater Revenue Bonds, Series 2007A $ 1,600,000 1,070,000 55,000 1,015,000 60,000 Total Revenue Bonds 2,615,000 98,000 2,517,000 105,000
Governmental Activities - Direct Borrowings
Loans payable:

CalPERS Refunding loan s 3,569,908 764,410 545,627_ 218,783 218,783 Financing teases:

Financing lease - California Infrastructure and
Economic Development Bank s 1,000,000 674,665 30,767 643,898 31,718 Financing lease - Redding Joint Powers Authority s 101,881 26,056 6,121 19,935 6,484 Financing tease· Municipal Finance Corporation (Backhoe) $ 106,701 44,518 21,941 22,577 22,577 Financing lease· Tri-Counties Bank s 66,295 46,417 16,452 29,965 16,993 Financing lease - Municipal Finance Corporation (Sweeper) $ 304,156 304,156 304,156 57,865 - Total Financing Leases 791,656 304,156 75,281 1,020,531 135,637 Notes payable:

Tri Counties Bank - The Oaks Loan $ 1,050,000 30,461 28,047 2,414 2,414 Total Notes Payable 30,461 28,047 2,414 2,414
Total Governmental Activities - Direct Borrowings 1,586,527 304,156 648,955 1,241,728 356,834 Other liabilities:

Compensated absences 301,941 417,745 346,116 373,570 96,283 Total Governmental Activities $ 4,503,468 $ . 72_1,901 s 1,093,071 s 4,132,298 s 558,117

City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
Year Ended June 30, 2021
Business-Type Activities
Certificates of participation:
2001 Wastewater System Improvements
Certificates of participation
Business Activities • Direct Borrowings
loans payable:

CalPERS Refunding loan
Total Business Activities - Direct Borrowin_g_s
Other liabilities:

Compensated absences
Total Business-Ty11_e Activities
Total Long-Term Liabilities
Revenue Bonds
Amount of
Original
Issuance
.s_. - 232,570
$ 546,758
2,076,000 Limited Obligation Improvement Bonds, Series 2001 s
$
Beginning
Balance
176,000 $
120,938
120,938
67,048
363,986
4,867,454 $
-
Additions Reductions
- s 4,500 $ ---
86,431
86,431
54,873 70,229 - 54,873 161,160
776,774 $ 1,254,231 $
-
Ending
Balance
171,500 $
34,507
34,507
51,692
257,699
4,389,997 $
-
Due Within
One Year
5,000
34,507
34,507
12,923
52,430
61(),547
Issued November 14, 2001, for the purpose of installation and construction of certain sewer and storm drain improvements in the Riverside Avenue Assessment District, payable from pledged property tax assessments and secured by sewer revenues. The balance is due in annual installments of $39,358 to $106,000 through September 2, 2041, bearing an interest rate of 4.375% payable semi-annually on March 2 and September 2. Principal and interest paid for the current year was $109,653, while total pledged revenues were $1,796,444. Total principal and interest remaining on the bonds is $2,293,788 which is the amount of the remaining property tax assessments pledged.

City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
1,600,000 California Statewide Communities Development Authority Wastewater Revenue Bonds, Series 2007A Issued December 1, 2007, to finance the construction of additional emergency storage capacity of an additional 3 million gallons, payable from sewer usage charges levied with property tax assessments. The balance is due in annual installments of $35,000 to $100,000 through October 1, 2033, bearing interest rates of 4.000% to 4.700% payable semi-annually on April 1 and October 1. Principal and interest paid for the current year was $102,833 while pledged revenues were $1,796,444. Total principal and interest remaining on the bonds is $1,349,067, which is the amount of the remaining sewer usage charges pledged.

Certificates of Participation
232,570 2001 Wastewater System Improvements Certificates of Participation Issued November 1, 2001, for the purpose of financing capital improvements to the wastewater system, payable from pledged sewer usage charges. The balance is payable in annual installments of $2,070 to $12,500 through September 2, 2041, bearing an interest rate of 4.750% payable semi-annually on March 2 and September 2. Principal and interest paid for the current year was $12,753 while total pledged revenues were $1,796,444. Total principal and interest remaining on the certificates is $270,953 which is the amount of the remaining sewer usage charges pledged.

Loans Payable - Direct Borrowings
4,116,666 Umpqua Bank - CalPERS Refunding Loan
Issued December 7, 2012, the City refinanced an existing $4.12 million pension side fund obligation for its participation in the California Public Employees Retirement System (CalPERS). This obligation had not previously been reported in the financial statements as it was computed by CalPERS as a component of annual retirement expense. The pension side fund liability is being amortized through 2022. The loan is collateralized by a pledge of gross revenues of the City. The balance is payable in annual installments of $137,000 to $293,000 through June 30, 2022, bearing an interest rate of 4.50% payable semi-annually on December 30 and June 30. Principal and interest paid in the current year was $659,598, while total pledged revenues were $10,313,004. Total principal and interest remaining on the loan is $274,146, which is the amount of the remaining dedicated source of revenues pledged.

Page63
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
Financing Leases - Direct Borrowings
1,000,000 Financing Lease - California Infrastructure and Economic Development Bank 101,881
106,701
66,295
304,156
Issued September 1, 2006, for the purpose of the construction, acquisition, and installation of the Anderson Teen Center/Shasta County Public Health Building. The balance is due in annual installments of $20,715 to $50,068 thr.ough August 1, 2036, bearing an interest rate of 3.09% payable semi-annually on February 1 and August 1.

Financing Lease- Redding Joint Powers Financing Authority Issued June 1, 1993, for the purpose of the purchase of an undivided five percent interest in a regional dispatch center. The balance is due in annual installments of $3,639 to $7,435 through March 1, 2023, bearing interest rates of 2.00% to 5.00%, payable semi-annually on September 1 and March 1.

Financing Lease - Municipal Finance Corporation (Backhoe) Issued April 1, 2016, for the purpose of the purchase of a CASE loader backhoe. The balance is due in annual installments of $23,232 through April 1, 2021, bearing an interest rate of 2.90%, payable annually on April 1. The financing lease is collateralized by a pledge of grant funds received from the State of California under the California Clean Energy Jobs Act by the City.

Financing Lease - Tri-Counties Bank
Issued March 20, 2019, for the purpose of the purchase of two Ford F-250 trucks. The balance is due in monthly installments of $738 through March 20, 2023 , bearing an interest rate of 3.24%, payable monthly on the 20th day of the month. The financing lease is collateralized by the vehicles.

Financing Lease - Municipal Finance Corporation (Sweeper) Issued October 16, 2020, for the purpose of the purchase of a sweeper truck. The balance is due in annual installments of $65,469 through January 22, 2026, bearing an interest rate of 2.50%, payable annually on January 22. The financing lease is collateralized by the sweeper truck.

Page64
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
Notes Payable - Direct Borrowings
1,050,000 Tri Counties Bank - The Oaks Loan
Original loan was for $1,050,000, the loan was modified on October 15, 2004, to $338,846 (as a significant portion of the underlying property was sold for $700,000 and the proceeds were used to pay down the loan), unsecured, payable in monthly installments of $2,713 bearing an interest rate of 6.100%. The balance of the note and all remaining accrued interest were paid off on July 17, 2021.

Interest Expense
The total interest incurred for the year ended June 30, 2021, was $171,512. Interest charged to expense has been included as a component of the direct expenses of individual functions on the government-wide statement of activities as the underlying debt has objectives that can be connected to specific programs.

Bonds and Direct Borrowings Summary
Annual debt service requirements to maturity for the bonds and direct borrowings are as follows:

Governmental Activities
Year Ending June 30
2022
2023
2024
2025
2026
2027-2031
2032-2036
2037-2041
2042
Total
Principal
$ 105,000
107,000
114,000
121,000
124,000
710,000
662,000
468,000
106,000
$ 2,517,000
Interest
$ 109,973
105,261
100,348
95,123
89,676
358,271
188,803
76,081
2,319
$ 1,125,855
Bonds
Total Principal
$ 214,973 $ 356,834
212,261 116,289
214,348 94,503
216,123 97,064
213,676 99,696
1,068,271 196,424
850,803 228,706
544,081 52,212
108,319
$ 3,642,855 $ 1,241,728
Direct Borrowings
Interest Total
$ 36,573 $ 393;407
25,116 141,405
22,060 116,563
19,482 116,546
16,834 116,530
58,613 255,037
25,834 254,540
774 52,986
$ 205,286 $ 1,447,014

City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
Business Activities
Bonds Direct Borrowings
Year Ending June 30 Principal Interest Total Principal Interest Total 2022 $ 5,000 s 8,028 s 13,028 s 34,507 $ 1,141 $ 35,648 2023 5,000 7,790 12,790
2024 5,500 7,541 13,041
2025 5,500 7,279 12,779
2026 6,000 13,728 19,728
2027-2031 34,000 28,785 62,785
2032-2036 43,000 19,238 62,238
2037-2041 55,000 7,066 62,066
2042 12,500 12,500
Total $ 171,500 $ 99,455 s 270,955 $ 34,507 s 1,141 s 35,648

5. SELF-INSURANCE
The City is a member of the Northern California Cities Workers' Compensation Fund, a Joint Powers Authority (JPA), for the purpose of providing a banking plan for member cities to provide their own workers' compensation insurance. In July 1981, the JPA instituted a program for the provision of liability insurance. In 1987, the JPA was rewritten and renamed the Northern California Cities Self Insurance Fund to combine and update the coverages of the plans. There has been no significant reduction in any of the insurance coverages from the prior year. Settled claims resulting from these programs have not exceeded insurance coverage in each of the past three fiscal years.

The current agreement is as follows:

The Workers' Compensation Program comprises a banking or deductible layer for claims up to $100,000 and a shared risk pool for claims from $100,000 to $500,000. Excess coverage is provided for claims over the shared risk layer up to the statutory limit for workers' compensation and $5,000,000 for employers' liability. The liability program comprises a banking or deductible layer for claims up to $50,000 and a shared risk pool for claims from $50,000 to $500,000. Excess coverage is provided for claims over the shared risk layer up to $40,000,000.

Page66
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
Each member city is assessed a contribution which is intended to cover its share of the Authority's claims, operating costs and claim settlement expenses. Contributions are based on an actuarially determined rate for each coverage layer (pool), based on an estimate of the probable losses and expenses to be borne by that pool for the claim year. Additional cash contributions may be assessed on the basis of adverse loss experience. Refunds to members may be made if funds are determined to be surplus as a result of an actuarial study.

The banking or deductible layer is the member's deductible portion of each claim. As part of its services to members, a portion of the members' contributions is used to pay their deductibles. If a member's balance is insufficient, the Authority advances th~ necessary amounts and bills the member in the following year. Excess balances may likewise be used to offset subsequent year contributions.

The City uses internal service funds to account for the costs of self-insurance. While the ultimate amount of the costs of self-insurance through June 30, 2021, is dependent on future developments, City management believes that the aggregate premiums paid to the JPA are adequate to cover the City's losses through June 30, 2021, including incurred but not reported claims (1BNRs). Claims paid for the workers' compensation and general liability programs for the fiscal year ended June 30, 2021, were $25,237 and $21,282, respectively.

As of June 30, 2021, the JPA reported that the City has a surplus in its workers' compensation program in the amount of $230,285 and a deficit in its general liability program in the amount of $112,946. Both of these amounts have been combined and presented as a prepaid expense in the City's financial statements.

Page67
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)

6. INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The following is a summary of interfund balances:

Due From Due to Internal
June 30, 2021 Other Funds Other Funds Balances
Governmental Activities
General Fund $ 1,646,723 $ - $ 1,646,723
Gas Tax Fund 85,080 85,080
ADAP and Home Fund 386,157 12,464 373,693
CDBG Fund - 416,791 {416,791)
Low and Mod Income Housing Fund 930,677 (930,677)
Parks Capital Fund 61,682 (61,682)
Nonmajor Governmental Funds 80,252 429,141 (348,889)
Internal Service Fund 1,017,058 (1,017,058)
Special Purpose Private Activity Trust 93,666 {93,666)
Total Governmental Activities 2,198,212 2,961,479 (763,267) Business-Type Activities
Water Fund 299,413 299,413
Sewer Fund 463,854 463,854
Total Business-Type Activities 763,267 - 763,267
Total Government-Wide Statement $ 2,961,479 $ 2,961,479 $

City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
Advances
Advances to From Other Internal
June 30, 2021 Other Funds Funds Balances
Governmental Activities
Low and Mod Income Housing Fund $ - $ 815,449 $ (815,449) Nonmajor Governmental Funds 120,485 120,485
Total Governmental Activities 120,485 815,449 (694,964} Business-Type Activities
Sewer Fund 694,964 694,964
Total Business-Type Activities 694,964 694,964
Total Government-Wide Statement $ 815,449 $ 815,449 $
Transfers
The following is a summary of transfers:

Operating Operating
June 30, 2021 Transfers In Transfers Out Transfers
Governmental Activities
General Fund $ - $ 2,000,000 $ (2,000,000)
Gas Tax Fund 14,300 (14,300)
Riverside East Debt Service Fund 409 409
Parks Capital Fund 2,000,000 2,000,000
Nonmajor Governmental Funds 117,107 - 117,107
Total Governmental Activities 2,117,516 2,014,300 103,216 Business-Type Activities
Sewer Fund - 103,216 (103,216)
Total Business-Type Activities - 103,216 (103,216)
Total Government-Wide Statement $ 2,117,516 $ 2,117,516 $ Page69
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
The City's routine transfers include transfers made to move: (a) unrestricted revenues or balances that have been collected or accumulated in the General Fund to other funds based on budgetary authorization; and, (b) revenues from a fund that by statute or budgetary authority must collect them to funds that are required by statute or budgetary authority to expend them. All transfers during the year were routine and all balances are expected to be collected in the subsequent year.

7. PENSION OBLIGATION
Qualified employees are covered under a cost-sharing, multiple-employer defined benefit pension plan maintained by the California Public Employees' Retirement System (CalPERS).

Plan Descriptions
All full-time employees are eligible to participate in CalPERS, a cost-sharing, multiple-employer contributory public employee retirement system that acts as a common investment and administrative agent for participating public entities within the State of California. The City is part of "cost-sharing" pools within CalPERS. The Public Employees' Retirement Law (Part 3 of the California Government Code, Section 20000 et seq.) establishes benefit provisions for CalPERS. CalPERS issues a publicly available financial report that can be obtained at www.calpers.ca.gov. ·
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members.

Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible for retirement as early as age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The provisions and benefits of the various plans of the city in effect at June 30, 2021, is as follows:

\
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
Hire Date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits (as a% of eligible compensation)
Required employee contribution rate
Required employer contribution rate
Hire Date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits (as a% of eligible compensation)
Required employee contribution rate
Required employer contribution rate
Prior to
January 1, 2013
(Tier 1)
2% at 55
5 years
monthly for life
50-63

1.4% to 2.4%

8.00%

14.19%
Prior to
March 31, 2012
3% at 50
S years
monthly for life
so

3.0%

9.00%

22.44%
Miscellaneous
Prior to
January 1, 2013 On or After
(Tier 2) January 1, 2013

2.7% at 55 2% at 62
5 years 5 years
monthly for life monthly for life
50-70 52-67

2.0%to 2.7% l.0%to 2.5%

7.00% 6.75%

10.48% 7.73%
Safety - Police
April, 1, 2012 to On or After
December 31, 2012 January 1, 2013
3% at 55 2.7% at 57
S years 5 years
monthly for life monthly for life
50-55 50-57

2.4%to 3.0% 2.0% to 2.7%

9.00% 13.00%

20.59% 13.04%

City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
Contributions
Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employees be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions for the year ended June 30, 2021, were $803,993 and $642,053, for the Miscellaneous and Safety plans, respectively.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2021, the City reported a net pension liability of $13,567,007 for its proportionate share of the net pension liability. This breakdown of the net pension liability between the Miscellaneous and Safety plans is $8,372,308, and $5,194,699, respectively. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019, rolled forward to June 30, 2020, using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating cities and the State, actuarially determined. At June 30, 2020, the City's proportion was

0.00198486 for the miscellaneous plans and 0.00077971 for the safety-police plans.

City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2021, the City recognized pension expense of $2,278,840. The City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous Deferred Deferred
Outflows Inflows
June 30, 2021 Resources Resources
Deferred contributions $ 803,993 $
Differences between expected and actual experience 431,449 Differences due to changes in actuarial assumptions - 59,716 Differences due to differences in proportions - 205,113 Differences between projected and actual earnings
on pension plan investments 248,715
Differences between projected and actual contributions - 313,661 Total $ 1,484,157 $ 578,490
Safety Deferred Deferred
Outflows Inflows
June 30, 2021 Resources Resources
Deferred contributions $ 642,053 $
Differences between expected and actual experience 402,824 Differences due to changes in actuarial assumptions - 17,305 Differences due to differences in proportions 141,771
Differences between projected and actual earnings
on pension plan investments 112,906
Differences between projected and actual contributions - 163,946 Total $ 1,299,554 $ 181,251

City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued}
Amounts of $803,933 and $642,053 reported as deferred outflows of resources related to contributions subsequent to the measure.ment date for the miscellaneous and safety plans, respectively, will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized as pension expense as follows:

Miscellaneous
2022
2023
2024
2025
2026
Thereafter
Total
Safety
2021
2022
2023
2024
2025
Thereafter
Total
Year Ending June 30
$
$
(170,012)
54,122
98,276
119,288
101,674
Year Ending June 30
$ 119,852
177,531
122,298
56,569
$ 476,250

City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued}
Actuarial Assumptions
The total pension liability in the June 30, 2019, actuarial valuation for each plan for Cal PERS was determined using the following actuarial assumptions, applied to all periods included in the measurement:

June 30, 2021
Valuation date
Measurement date
Actuarial cost method
Actuarial assumptions:

Discount rate
Inflation
Payroll growth
Salary increases
Investment rate of return
June 30, 2019
June 30, 2020
Entry Age Normal

7.15%

2.50%

2.75%
Varies by entry age and service

7.00%, net of pension plan investment and administrative expenses; includes inflation CalPERS uses custom mortality tables to best fit the patterns of mortality among its members. The mortality table used was devel_oped based on CalPERS specific data. The table includes 15 years of projected mortality improvement using 90% of Scale MP 2016 published by the Society of Actuaries.

The actuarial assumptions used in the June 30, 2019, valuation were based on the results of an actuarial experience study from the June 30, 2018, funding valuation report.

City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.15% for each plan. The amortization and smoothing periods recently adopted by the Board were utilized to determine whether the municipal bond rate should be used in the calculation of a discount rate. A projection of expected benefit payments and contributions was performed to determine if the assets would run out. The test revealed the assets would not run out. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The stress test results are presented in a detailed report entitled, "GASB Crossover Testing Report" that can be obtained on the CalPERS' website. · According to Paragraph 30 of GASB Statement No. 68, the long-term discount rate should be determined with reduction for pension plan administrative expense. The 7.00% investment return assumption used in the accounting valuation is net of administrative expenses.

Administrative expenses are assumed to be 15 basis points. An investment return, excluding administrative expenses, would have been

7.15%. Using this lower discount rate has resulted in a slightly higher total pension liability and net pension liability. CalPERS checked the materiality threshold for the difference in the calculation and did not find it to be a material difference.

CalPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability Management (ALM) review cycle. Any changes to the discount rate will require Board action and proper stake holder outreach. For these reasons, CalPERS expects to continue using a discount rate net of administrative expenses for GASB Statement No. 67 and GASB Statement No. 68 calculations. Cal PERS will continue to check the materiality of the difference in the calculation until the methodology is changed.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, staff took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds' asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11 to 60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.

City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
Asset Class
Public Equity
Global fixed income
Real assets
Private equity
Liquidity
Inflation sensitive
Total
*An expected inflation of 2.0% used for this period.
**An expected inflation of 2.92% used for this period.

Sensitivity of the Net Pension Liability to the Changes in the Discount Rate Target Rate of Return
Allocation Years 1-10* Years 11+**
50% 4.80% 5.98%
28% 1.00% 2.62%
13% 3.75% 4.93%
8% 6.30% 7.23%
1% 0.00% -0.92%
0% 0.77% 1.81% - 100%
The following presents the net pension liability of the Plan, calculated using the discount rate of 7.15%, as well as what the net pension liability would be if it were calculated using a discount rate that is one percentage point lower (6.15%) or one percentage point higher (8.15%) than the current rate:

Plan's Net Pension Liability - Miscellaneous
Plan's Net Pension Liability - Safety-Police
Total
Pension Plan Fiduciary Net Position
s
$
1% Decrease
(6.15%)
12,284,289
7,708,095
19,992,384
Current
Discount
Rate (7 .15%)
$ 8,372,308 $
5,194,699
$ 13,567,007 $
Detailed information about the Plan's fiduciary net position is available in the separately issued CalPERS financial report. 1% Increase
(8.15%)
5,139,961
3,132,220
8,272,181

City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)

8. DEFICIT FUND BALANCE/RETAINED EARNINGS
The nonmajor funds listed below reported deficit fund balances or retained earnings:

June 30, 2021
Governmental Funds
Street Lighting Fund
State and Federal Transportation Fund
South Ridge Assessment District Fund
Vineyards Lighting and landscape District Fund
Silvergate Sanitary Assessment District Fund
Water Capital Fund
$
$
$
$
$
$
94,005
264,907
14,109
2,832
1,991
50,547
The deficits noted above will be eliminated as resources are obtained (e.g., from revenues, long~term debt issuances, and transfers in) to make necessary expenditure payments and as the actual fund activity improves.

9. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
The excess of expenditures over appropriations, describes a budgetary violation that occurred for the year under audit. Expendftures exceeded appropriations in the CDBG Fund by $15,739. The expenditures were funded by additional unbudgeted revenue received during the year.

City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)

10. CONTINGENT LIABILITIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal and state governments. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.

The City is involved in various litigation; however, in the City Attorney's opinion, the potential claims against the City resulting from such litigation would not materially affect the accompanying financial statements.

11. CONSTRUCTION COMMITMENTS
At June 30, 2021, the City had no construction commitments outstanding.

12. RESTRICTED NET POSITION
The government-wide statement of net position reports $15,790,158 of restricted net position, of which $4,862,595 is restricted by enabling legislation.

City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)

13. FUND BALANCE
Fund balances are composed of the following:

June 30, 2021 Nonspendable Restricted Committed Assigned General Fund
Prepaid items $ 129,427 $ - $ - $
Inventory 11,337
Anderson teen center maintena nee 212,101
Charter - PEG fees 21,062
Gas Tax Fund
Gas tax 1,618,971
ADAP and Home Fund
Long-term notes receivable 4,694,300
Grants - 1,210,856
CDBG Fund
Long-term notes receivable 1,798,316
Grants 568,125
Low and Mod Income Housing Fund
Long-term notes receivable 1,402,510
Riverside East Debt Service Fund
Debt service 370,857
Nonmajor Governmental Funds
Long-term notes receivable 85,343
Advances to other funds 120,485
Traffic capital impact fees 1,729,158
Drain.1ge capital impact fees 970,865
Sewer ca pita I impact fees 684,694
Shastec project area fees 541,206
Police facility and corp yard expansion 490,365
EDBG revenues 283,029
Line extension 173,581
Interstate 5 and Deschutes redevelopment 152,241
Grants 151,345
Asset forfeiture revenues 102,612
Redevelopment revenues 16,602
Curbs, gutters, and sidewalks impact fees 12,068
Parking district revenues 10,843
Anderson River Park amphitheater fees 4,071
EEC grant - lighting retrofit revenues 225
Total $ 261,249 s 17,072,183 s - s 233,163
Page8D
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)

14. SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill lX 26 ("the Bill") that provided for the dissolution of all redevelopment agencies in the State of California. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. The assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.

The Bill provided that upon dissolution of a redevelopment agency, either the city or another unit of local government would agree to serve as the "successor agency" to hold the assets until they are distributed to other units of state and local government. On January 17, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 12-03.

The Department of Finance of the State of California granted a "Finding of Completion" on November 8, 2013, to the City of Anderson Successor Agency. The Successor Agency is now allowed to place loan agreements between the former redevelopment agency and sponsoring entity on the Recognized Obligation Payment Schedule and utilize remaining bond proceeds. Successor agencies are only allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill.

Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City's position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City.

Page81
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)

LONG-TERM LIABILITIES
In July of 2015 the City issued 2015 Tax Allocation Refunding Bonds to refinance the Anderson Redevelopment Agency Tax Allocation Bonds, Series 2005 and 2008. The issuance resulted in an estimated economic gain of $1,142,256. The bonds were issued at a discount of $203,833 which will be amortized over the life of the bonds of $8,490 per year. · The balances of the Successor Agency long-term debts are presented below:

June 30, 2021
Tax allocation bonds:

ARA Tax Allocation Bonds, 2015 Series Bonds
Discount on 2015 Series Bonds
Total
Tax Allocation Bonds
$
$
Amount of
Original Beginning
Issuance Balance
7,365,000 $ 6,445,000
(203,833) (161,383)
$ 6,283,617
Ending
Additions Reductions Balance
$ - $ 250,000 $ 6,195,000
(8,490) (152,893)
$ - $ 241,510 $ 6,042,107
7,365,000 Successor Agency to the Anderson Redevelopment Agency Tax Allocation Refunding Bonds, Series 2015 Due Within
One Year
$ 260,000
(8,490)
$ 251,510
Issued July 1, 2015, for the purpose of refinancing prior redevelopment agency debt. Payable from future property tax increment in redevelopment project areas in annual installments of $210,000 to $470,000 through August 1, 2038, and bearing interest rates of 2.000% to 4.125% payable semi-annually on February 1 and August 1. Principal and interest paid for the current year was $480,688 while total Agency property tax increment revenue was $601,200. Total principal and interest remaining on the bonds is $8,628,520, which is the amount of the remaining property tax increment revenue pledged. · Page82
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)
The following is a schedule of total debt service requirements to maturity for the tax allocation bonds:

Bonds Bond
Year Ending June 30 Principal Interest Total Discount Total 2022 $ 260,000 $ 225,263 $ 485,263 $ (8,490) $ 476,773
2023 260,000 219,088 479,088 (8,490) 470,598
2024 270,000 212,125 482,125 (8,490) 473,635
2025 275,000 204,288 479,288 (8,490) 470,798
2026 285,000 195,709 480,709 (8,490) 472,219
2027-2031 1,580,000 816,328 2,396,328 (42,450) 2,353,878 2032-2036 1,915,000 475,538 2,390,538 (42,450) 2,348,088 2037-2040 1,350,000 85,181 1,435,181 (25,543) 1,409,638 Total $ 6,195,000 $ 2,433,520 $ 8,628,520 $ (152,893) $ 8,475,627 Interest expense incurred for the year ended June 30, 2021 was $225,884.

15. ASSET RETIREMENT OBLIGATION
The City has incurred certain asset retirement obligations related to the operation of its waste water utility system. The estimated liability of the legally required closure costs for the waste water utility system cannot be reasonably estimated as of June 30, 2021, since the specific legally required costs of retirement have not been identified. The City anticipates identifying those specific legally required costs and obtaining an estimate of those costs in a subsequent fiscal year.

Page83
City of Anderson

NOTES TO THE FINANCIAL STATEMENTS
(Continued)

16. FUTURE ACCOUNTING PRONOUNCEMENTS
The following Governmental Accounting Standards Board (GASB) Statement will be implemented in future financial statements (as amended by Statement No. 95):

Statement No. 87 "Leases" - The requirements of this Statement are effective for the reporting periods beginning after December 15, 2020 (FY21/22).

Statement No. 92 "Omnibus 2020" - The requirements of this Statement are effective for the reporting periods beginning after December 15, 2020
Management is currently evaluating the impact of this standard on the City's financial statements.

Page84

REQUIRED SUPPLEMENTARY INFORMATION SECTION
City of Anderson

SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY-CALPERS Miscellaneous June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 City's proportion of the net pension liability (asset) 0.1984860% 0.1948730% 0.191S2Sf* 0.1859970% 0.1833610% 0.17935 70% 0.0600500% City's proportionate share of the net pension liabi'ity (asset) s 8,372,308 s 7,803,688 s 7,218,039 s 7,332,084 $ 6,369,732 s 4,979,414 $ 3,73.6,772 City's covered payroll s 2,344,535 s 2,198,530 s 2,014,295 s 2,011,939 $ 2,014,220 s 1,883,404 s 1,832,170 City's proportionate share of the net pension liabi'ity (asset) as a percentage of its covered•employee payroll 357.10% 354.95% 358.34% 364.43% 316.24'- 264.38% 203.95~ Plan fiduciary net position as a percentage of the total pension liability 71.52% 7H O% 73.2S% 71.97% 73.16% 78.07% 83.03% Safety June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 City's proportion of the net pension liability (asset) 0.0779710% 0 0755750% 0.0739890% 0.0716340% 0.0715840% 0.0740296% 0,0388100~ City's proportionate share of the net pension liability (asset) $ 5,194,699 $ 4,717,818 s 4,341,322 s 4,280,292 s 3,707,485 $ 2,847,939 $ 2,414,760 City's covered-employee payroll s 1,583,986 $ 1,614,882 s 1,445,381 s 1,337,391 $ 1,346,753 s 1,235,687 $ 1,224,195 City's proportionate share of the net pension liability (asset) as a percentage of its covered·employee payroll 327.95% 292.15%, 300.36% 320.05% 275 291' 230.47% 197.2S"~ Plan fiduciary net position as a percentage of the total pension liability 71.93% 73.31% 73.55% 73.00% 73 93"' 79.05% 81.42% Stt the occo,npon~ notes .ro the ~ wpp/r~11to,y infonngrlon.

Page86
City of Anderson

SCHEDULE OF CITY'S CONTRIBUTIONS - CALPERS
Miscellaneous June 30, 2021 June 30, 2020 June 30, 2019 June 30, 201s June 30, 2017 June 30, 2016 June 30, 2015 Contractually required contribution $ 803,993 $ 721,746 $ 624,031 s 529,589 $ 480,390 $ 429,631 s 264,086 Contributions in relation to the contractually required contribution (803,993) (721,746! (624,031) (529,5891 (480,3901 (429,6311 (264,086) Contribution deficiency (excess) s - $ - s $ $ $ s
City's covered-employee payroll s 2,412,690 $ 2,344,535 s 2,198,530 $ 2,014,295 s 2,014,220 $ 1,883,404 $ 1,832,170 Contributions as a percentage of covered-employee payroll 33.32% 30.78% 28.38% 26.29% 23.85% 22.81% 14.41% Safety June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Contractually required contribution $ 642,053 $ 549,851 $ 483,835 s 408,103 s 360,756 $ 305,203 s 257,787 Contributions in relation to the contractuall~ re9ui red contribution (642,053) (549,851) (483,835) (408,1031 (360,756) (30S,2031 (257,787) Contribution deficiency (excess) s $ s - $ $ s $
City's covered-employee payroll $ 1,874,269 $ 1,583,986 $ 1,614,882 $ 1,445,381 $ 1,346,753 s 1,235,687 $ 1,224,195 Contributions as a percentage of covered-employee payroll 34.26% 34.71% 29.96% 28.23% 26.79% 24.70% 21.06% Stt t~ accompanying notn: ro the rec,uired suppkmrntory irt{ormqtion.

Page87
City of Anderson

NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2021
Required supplementary information schedules are intended to report information for ten years. Additional years' information will be displayed as it becomes available.

Changes of Benefit Terms
Public agencies who participate in CalPERS can make changes to their plan provisions, and such changes occur on an ongoing basis. A summary of the plan provisions that were used for a specific plan can be found in the plan's annual valuation report.

Page BB

COMBINING AND INDIVIDUAL NON MAJOR FUND FINANCIAL STATEMENTS City of Anderson

NON MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes.

Street lighting Fund: This fund accounts for revenue and expenses of City-owned street lights.

State and Federal Transportation Fund: This fund accounts for intergovernmental funds received which are specified for street projects.

COPS and LLEBG Grants Fund: This fund accounts for law enforcement grant revenues and related expenses.

Asset Forfeiture Fund: This fund accounts for expenditures and revenues of funds received from seizures and forfeitures.

Parking District Fund: This fund accounts for the expenditure and receipts of parking related funds.

EDBG Fund: This fund accounts for EDBG program income and grants provided for acquisition of real property, business assistance loans, and business assistance infrastructure.

Redevelopment Fund: This fund accounts for housing funds related to the Shastec Project Area.

South Ridge Assessment District Fund: This fund accounts for the expenses and revenues of South Ridge landscape Assessment District.

Vineyards Lighting and Landscape District Fund: This fund accounts for assessment district revenue and expenses related to maintenance of lighting and landscaping in the Vineyards housing subdivision.

Silvergate Sanitary Assessment District Fund: This fund accounts for the expenses and revenues of Silvergate Sanitary Assessment District.

EEC Grant Lighting Retrofit Fund: This fund accounts for the EEC lighting retrofit revenues and related expenses.

Page90
City of Anderson

NONMAJOR GOVERNMENTAL FUNDS
{Continued)

CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds.

Curbs, Gutters, and Sidewalks Fund: This fund accounts for the revenues received for the construction of curbs, gutters, and sidewalks by the City.

Police Facility and Corp Yard Expansion Fund: This fund accounts for impact fees that are restricted for improvements to the City's public facilities.

Drainage Capital Fund: This fund accounts for impact fees that are restricted for improvements to the City's drainage system.

Sewer Capital Fund: This fund accounts for impact fees that are restricted for improvements to the City's sewer system.

Water Capital Fund: This fund accounts for impact fees that are restricted for improvements to the City's water system.

Traffic Capital Fund: This fund accounts for impact fees that are restricted to add or improve City streets and roads. /-5/Deschutes Offramp Fund: The 1-5/Deschutes Offramp Fund accounts for impact fees that are restricted to the development of the 1-5/Deschutes interchange.

Anderson River Park Amphitheater Fund: This fund accounts for expenses and revenues related to the grant-funded construction of amphitheater improvements at Anderson River Park.

Shastec Project Area Fund: This fund accounts for projects related to the redevelopment activities in the Shastec Project Area.

City of Anderson

COMBINING BALANCE SHEET-NONMAJOR GOVERNMENTAL FUNDS
Special Revenue
State and
Street Federal COPS and Asset Parking
lighting Transportation LLEBG Forfeiture District EDBG Balance June 30, 2021 Fund Fund Granu Fund Fund Fund Fund Forward ASSETS
Cash and cash equivalents $ $ $ 156,259 $ 102,612 $ 10,843 $ 271,917 $ 541,631 Receivables:

Taxt$ 1,999 1,999
Interest 612 612
loans 85,343 85,343
Due from other governments 10,738 10,738
Due from other funds 10,500 10,500
Advances to other funds
Restricted cash
TOTAL ASSETS $ 1,999 s - $ 166,997 s 102,612 $ 10,843 $ 368,372 s 650,823

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable s 10,924 $ $ $ s . $ . $ 10,924
Due to other funds 85,080 264,907 349,987
Advances from grantor governmenu --- 15,652 15,652
Total Uabllltles 96,004 264,907 15,652 376,563
Fund Balances (Deficit)
Nonspendable
Restricted 151,345 102,612 10,843 368,372 633,172
Committed
Assigned
Unassigned (94,005) (264,907) (358,912)
Total Fund Balances (Deficit! (94,005) !.264,907) 151,345 102,612 10,843 368,372 274,260

TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, ANO FUND BALANCES $ 1,999 $ s 166,997 $ 102,612 $ 10,843 $ 368,372 $ 650,823 Page92
City of Anderson

COMBINING BALANCE SHEET-NONMAJOR GOVERNMENTAL FUNDS
(Continued)
Special Revenue
South Ridge Vineyards Silvergate EEC Grant
Balance Assessment Lighting and Sanitary Lighting
Brought Redevelopment District landscape Assessment Retrofit ~ 2021 Forward Fund Fund District Fund District Fund Fund Total ASSETS
Cash and cash equivalents $ 541,631 $ 16,602 $ . $ 1 $ 1 s 225 $ SSS.460 Receivables:

Taxes 1,999 311 471 49 2,830
Interest 612 612
loans 85,343 85,343
Due from other governments 10,738 10,738
Due from other funds 10,500 10,500
Advances to ot her funds
Rottricted cash
TOTAL ASSETS $ 650,823 s 16,602 $ 311 $ 472 $ so $ 225 $ 6~i8l_

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities
Aecounts payable s 10,924 s s 494 $ 1,040 $ 124 $ - $ 12,582 Due to other funds 349,987 13,926 2,264 1,917 368,094
AdvancllS from grantor governm,mt~ 15,652 - 15,652
Total Liabilities 376,563 14,420 3,304 2,041 396,328
Fund Balances (Deficit)
Nonspendable
Restricted 633,172 16,602 225 649,999
Committed
Assigned
Unassigned (358,912) (14,109) (2,832) (1,991) (377,844) Total Fund Balances (Deficit) 274,260 16,602 (14,109) (2,832) (1,991) Z2S. - ~ .155

TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES s 650,823 $ 16,602 s 311 s 472 s 50 $ 225, $ 66!~fl"_! Page93
City of Anderson

COMBINING BALANCE SHEET- NONMAJOR GOVERNMENTAL FUNDS
(Continued)
capital Projects
Curbs, Police Facility
Gutters, and and Corp Yard
Sidewalks Expansion Drainage Sewer Water Traffic 8alance ~2021 Fund Fund Capital Fund Capital Fund Capital Fund capital Fund Forward ASSETS
Cash and cash equivalents $ 12,068 $ 490,365 $ 970,865 $ 857,268 $ $ 1,719,960 $ 4,050,526 Receiva hies:

Taxes
Interest
loans
Due from other governments
Due from other funds 60,554 9,198 69,752
Advances to other funds 69,593 50,892 120,485
Restricted cash 2 2
TOTAL ASSETS $ 12,068 $ 490,365 $ 970,865 $ 987,417 $ $ 1,780,050 $ 4,240,765

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, ANO FUND BALANCES
Liabilities
Accounts payable $ - $ - $ - $ 59,549 $ $ $ 59,549
Due to other funds 50,547 50,547
Advances from granter governments -
Total Liabilities 59,549 50,547 110,096
Fund Balances (Deficit)
Nonspendable 69,593 50,892 120,485
Restricted 12,068 490,365 970,865 858,275 1,729,158 4,060,731 Committed
Assigned
Unassigned (50,547) (50,547)
Total Fund 8alances (Deficit) 12 0611 490,365 970,865 927,868 (50,547) 1,780,050 4,130,669

TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES $ 12,068 $ 490,365 $ 970,865 $ 987,417 s $ 1,780,050 $ 4,240,765 Page94
City of Anderson

COMBINING BALANCE SHEET- NONMAJOR GOVERNMENTAL FUNDS
(Continued}
Capital Projects
Anderson Total
Balance River Park Shastec Nonmajor
Brought 1-5/Deschutes Amphitheater Project Governmental June 30, 2021 Forward Offramp Fund Fund Area Fund Total Funds ASSm
Cash and cash equivalents $ 4,050,526 $ 152,241 $ 4,071 $ 551,706 $ 4,758,544 $ 5,317,004 Receivables:

Taxes 2,830
Interest 612
Loans - SS,343
Due from other governments 10,738
Due from other funds 69,752 69,752 80,252
Advances to other funds 120.485 120,485 120,485
Restricted cash 2 2 2
TOTAL ASSETS $ 4,240,765 $ 152,241 $ 4,071 $ 551,706 $ 4,948,783 $ 5,617,266 LIABILmES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
liabilities
Accounts payable $ 59,549 $ $ $ 59,549 $ 72,131
Due to other funds 50,547 10,500 61,047 429,141
Advances from gra ntor governments - 15,652
Total Uabllltles 110,096 10,500 120,596 516,924
Fund Balances (Deficit)
Nonspendable 120,485 120,485 120,485
Restricted 4,060,731 152,241 4,071 541,206 4,758,249 5,408,248 Committed
Assigned
Unassigned (50,547) (50,5471 (428,3911
Total Fund Balances (Deficit) 4,130,669 152,241 4,071 541,206 4,828,187 5,100,342

TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES $ 4,240,765 $ 152,241 $ 4,071 $ 551,706 $ 4,948,783 $ 5,617,266

City of Anderson

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCES-NONMAJOR GOVERNMENTAL FUNDS
State and
Street Federal
Lighting Transportation
COPS and
LLEBG
Year Ended June 30, 2021 Fund Fund Grants Fund
Revenues
Licenses and permits $ $ $
Fines, forfeits, and penalties
Use of money and property -
Intergovernmental revenue 124,682
Other revenues 60,727
Total Revenues 60,727 124,682
Expenditures
Current:

General government
Public safety 103,740
Public works 71,278
Recreation and cultural
Capital outlay 20,299 2,149
Debt service:

Principal
Interest and fi,cal charges
Total Expenditures -- 91,S77 105,889
Excess (Deficiency) of Revenues Over
(Under) Ellpendit\lres (30,850) 18,793 - -- -
Other Financing Sources (Uses)
Transfers in 14,300
Transfers out
Total Other Financing Sources (Uses) 14,300
Net Change In Fund Balances (16,SSO) 18,793
Fund Balances (Deficit) • Beginning of Year (77,455) [264,907) 132,552 Fund Balances (Deficit) - End of Year $ (94,005) $ (264,907) $ 151,345 Special Revenue
Asset Parking
Forfeiture District EDBG Balance
Fund Fund Fund Forward
$ $ - $ . s
112,638 112,638
89 ss 2,798 2,942
124,682
60,727 --- - 112,727 55 2,798 300,989
473 104,213
71,278
3,944 26,392
4,417 201,883
108,310 55 2,798 99,106
14,300
14,300 -- 108,310 55 2,798 113,406
(5,698) 10,788 365,574 160,854
$ 102,612 $ 10,843 $ 368,372 s 274,260
Page96
City of Anderson

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCES- NONMAJOR GOVERNMENTAL FUNDS
(Continued)
Special Revenue
South Ridge Vineyards Silvergate EEC Grant
Balance Assessment Ughtingand Sanitary Lighting
Brought Redevelopment Distrir:t Landscape Assessment Retrofit Year Ended June 30, 2021 Forward Fund Fund District Fund Distrir:t Fund Fund Total Revenues
Licenses and perm its $ $ $ . $ $ - $ - $
Fines, forfeits, and penalties 112,638 112,638
Use of money and property 2,942 7 2,949
Intergovernmental revenue 124,682 124,682
Other revenues 60,727 9,736 21,611 5,121 97,195 - Total Revenues 300,989 9,736 21,611 5,128 337,464 - Expenditures Current:

General government
Public safety 104,213 104,213
Public works 71,278 9,982 20,564 8,791 110,615
Recreation and cultura I
Capital outlay 26,392 26,392
Debt service:

Principal
Interest and fiscal charges -
Total Expenditures 201,883 9,982 20,564 8,791 241,220
Excess (Deficiency) of Revenues Over
j Under) Expenditures 99,106 (246) 1,047 (3,663} 96,244 Other Financing Sources (Uses)
Transfers in 14,300 14,300
Transfen out
! otal Other Financing Sources (Uses) 14,300 14,300
Net Chance in Fund Balances 113,406 (246) 1,047 (3,6631 110,544 Fund Balances (Deficit) • Be1innlng of Year 160,854 - 16,602 (13,863} {3,879) ___ 1,2' ~- - 22S 161,611 Fund Balances ~~fi~tl • End of Year $ 274,260 $ 16,602 $ (1411c,g1 $ (2,832) $ (1,9911 $ 22.S $ 27U~5 Pa_ge 97
City of Anderson

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCES - NON MAJOR GOVERNMENTAL FUNDS
(Continued)
Capital Projects
Curbs, Police facility
Gutters, and and Corp Yard
Sidewalks Expansion Drainage Sewer Water Traffic Balance Year Ended June 30, 2021 Fund Fund Capital Fund Capital Fund Capital Fund Capital Fund Forward Revenues
Licenses and permits $ - $ 91,412 $ 146,394 $ 152,533 $ 108,755 $ 248,368 $ 747,462 Fines, forfeits, and penalties
Use of money and property 61 2,254 4,598 6,941 8,163 22,017 Intergovernmental revenue
Other revenues - Total Revenues 61 93,666 150,992 159,474 108,755 256,531 769,479 Expenditures
Current:

General government 11,879 8,303 20,182
Public safety
Public works 4,528 7,125 10,850 22,503
Recreation and cultural
Capital outlay 677,937 22,139 700,076
Debt service:

Principal 55,000 55,000
Interest and fiscal charges 47,807 1 47,808
Total Expenditures 4,528 7,125 792,623 30,443 10,850 845,569 ~--· - - - - - Excess (Deficiency) of Revenues Over (UnderlExpenditUres 61 89,138 143,867 (633,1491 78,312 245,681 (76,090) Other Financing Sources (Uses)
Transfers in 102,807 102,807
Transfers out
Total Other Financing Sources (Uses) 102,807 102,807
Net Change In Fund Balances 61 89,138 143,867 (530,3421 78,312 245,681 26,717 Fund Balances (Deficit) - Beginning of Year 12,007 401,227 826,998 1,458,210 (128,8591 1,534,369 4,103,952 Fund Balances (Defidtl - End of Year $ 12,068 $ 490,365 $ 970,865 $ 927,868 $ (50,5471 $ 1,780,050 $ 4,130,669 Poge98
City of Anderson

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCES- NONMAJOR GOVERNMENTAL FUNDS
{Continued)
Capital Projects
Anderson Total
Balance River Park Shastec Nonmajor
Brought 1-5/Deschutes Amphitheater Project Governmental Year Ended June 30, 2021 Forward Offramp Fund Fund Area Fund Total Funds Revenues
licenses and permits $ 747,462 s 68,436 s - $ - $ 815,898 $ 815,898 Fines, forfeits, and penalties 112,638
Use of money and property 22,017 641 22,658 25,607
Intergovernmental revenue 124,682
Other revenues 97,195 - Total Revenues 769,479 69,077 838,556 1,176,020 Expenditures
Current:

General government 20,182 20,182 20,182
Public safety 104,213
Public works 22,503 4,930 27,433 138,048
Recreation and cultural
Capital outlay 700,076 700,076 726,468
Oebt service:

Principal 55,000 55,000 55,000
Interest and fiscal charges 47,808 47,808 47,808
_! otal Expenditures 845,569 4,930 850,499 1,091,719
Excess (Deficiency) of Revenues Over
(Under) Expenditures (7§,090] 64,147 111,943) 84,301
Other Financing Sources (Uses)
Transfers in 102,807 102,807 117,107
Transfers out
Total Other Financln1 Sources (Uses) 102,807 - 102,807 117,107 Net Change in Fund Balances 26,717 64,147 90,864 201,408 Fund Balances (Deflcltl • Beginning of Year 4,103,952 88,094 4,071 541,206 4,737,323 4,898,934 Fund Balances (Deficit) • End of Year $ 4,130,669 $ 152,241 $ 4,071 $ 541,206 $ 4,828,187 $ 5,10~34~ Page99
City of Anderson

CUSTODIAL FUNDS
Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, other governments, and/or other funds.

SINTF Fund: This fund accounts for funds held for the Shasta lnteragency Narcotics Task Force (SINTF) program.

County Seizure Fund: This fund accounts for the seized assets held on behalf of the County of Shasta.

City of Anderson

COMBINING STATEMENT OF FIDUCIARY NET POSITION - CUSTODIAL FUNDS County
SINTF Seizure
June 30, 2021 Fund Fund Total
ASSETS
Cash In bank $ 2,811,212 $ 396,239 $ 3,207,451
Due from other governments 1,151 - 1,151
TOTAL ASSETS $ 2,812,363 $ 39~ 239 $ 3,208,602

LIABILITIES
Accounts payable 44,364 27,744 72,108 -- - TOTAL LIABILITIES $ 44,364 $ 27,744 $ 72,108

NET POSITION
Restricted for:

Held in trust for other governments 2,767,999 368,495 3,136,494 TOTAL NET POSITION $ 2,767,999 $ 368,495 $ 3,136,494

City of Anderson

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION-CUSTODIAL FUNDS County
SINTF Seizure
Year Ended June 30, 2021 Fund Fund Total
Additions
Seized funds and forfeited revenues $ 1,741,606 $ 105,264 $ 1,846,870 Use of money and property 12,221 961 13,182
Total Additions $ 1,753,827 $ 106,225 $ 1,860,052
Deductions
Administrative costs 59,378 ~ 59,378
Operating supplies 43,539 43,539
Distributions 562,210 125,254 687,464
Total Deductions $ 665,127 $ 125,254 $ 790,381
Net Position - Beginning of Year - Restated 1,679,299 387,524 $ 2,066,823 Net Position - End of Year $ 2,767,999 $ 368,495 $ 3,136,494 Pagel02

City of Anderson

STATISTICAL SECTION (UNAUDITED)
This portion of the City's financial statements presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health.

FINANCIAL TRENDS
Net Position -Accrual Basis of Accounting
Changes in Net Position -Accrual Basis of Accounting
Fund Balances of Governmental Funds - Modified Accrual Basis of Accounting Changes in Fund Balances of Governmental Funds - Modified Accrual Basis of Accounting General Fund Balance Compared to Annual Appropriations
General Fund Revenues by Source
General Fund Tax Revenues by Source
Governmental Funds Expenditures by Function
Special Assessment Billings and Collections

REVENUE CAPACITY
Property Tax - Rates (Direct and Overlapping Governments) and City Levies and Collections Assessed Value and Estimated Actual Value of Taxable Property Principal Secured Property Taxpayers
Property Value and Construction

DEBT CAPACITY
Ratio of Outstanding Debt by Type
Ratio of General Bonded Debt Outstanding
Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt per Capita Ratio of Annual Debt Service for Bonded Debt to Total General Expenditures Direct and Overlapping Governmental Activities Debt
Computation of Legal Debt Margin
Pledged Revenue Coverage
Page
Number
106
107
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
City of Anderson

STATISTICAL SECTION (UNAUDITED)

DEMOGRAPHIC AND ECONOMIC INFORMATION
General Information
Principal Employers
Economic Information

OPERATING INFORMATION
Operating and Capital Indicators
Authorized Full Time Equivalent Employees by Department Water and Sewer Rates
Page
Number
127
128
129
130
131
132
The Governmental Accounting Standards Board Statement No. 34 required governments with less than $10 million in annual revenues to comply with increased reporting standards starting in fiscal years beginning after June 15, 2003. Statistical schedules reflect information from FY 2006- 2007 to present where ten years of data is required.

City of Anderson

NET POSITION - ACCRUAL BASIS OF ACCOUNTING
2012 2013 2014 201s 2016 2017 2018 2019 2020 2021
Governmental activities:

Investment in capital assatst nit of related debt $ 16,631,122 $ lS.949,096 $ 21,530,232 $ 20,845,429 s 21,566,442 s 20,157,484 s 20,289,058 $ 20,734,804 $ 20,626,615 $ 21,185,706 Restricted 12,053,575 11,180,265 12,128,923 12,~21,328 13,891,292 13,992,482 14,181,409 14,643,213 15,101,783 15,790,158 Unrestricted 2,218,230 6,874,76t 2,450,504 12,624,390) (3,028,302) (1,006,264) (2,188.418) (3,615,378) (4.164,289) (4,948,948) Tot.II Sovemment.111 activities net assets $ 30,902,927 $ 34,004,127 s 36,109,659 $ 31,142,367 s 32,429,432 $ 33,143,702 $ 32,282,049 $ 31,762,639 $ 31,564,109 $ 32,9~,91! Business-type activities:

Investment in capital assets, net of related debt $ 12,543,740 $ 11,601,122 $ 11,749,341 $ 11,332,197 $ 10,876,569 $ 10,654,855 $ 10,247,557 $ 9,829,717 s 9.984.064 s 10,253,676 Restricted 13,891,292
Unrestricted 1,070,101 2,146,441 2,066,325 761,682 984,100 l12,SS7,186) 1,687,814 1.967,127 1,147,636 852,867 Total busines,-1ype activities net assets $ 13,613,841 $ 13,747,563 $ 13,815,666 s 12,093,879 $ .. 1_10

8.~,669 $ 11,988,961 $ 11,935,371 s 11,796,844 $ 11,131,700 $ 11,106,543 Primary Government:

Investment in capital assets, net of related debt $ 29,174,862 $ 27,550,218 $ 33,279,573 s 32.177,626 $ 32,443,011 $ 30,81U39 $ 30,536,615 s 30,561,521 s 30,610,679 $ 31,439,382 Restricted l2,0S3,S7S 11,180,26$ 12,128,923 12,921,328 13,891,292 27,913,774 14,181,409 $ 14,643,213 $ 15,101,783 $ 15,790,158 Unrestricted 3,288,331 9,021,207 4,516,829 (1,862,708) (2,044,202) i 13,563,450) (500,604) $ (1,648,251) $ (3,016,653) $ (4,096,081) Total primary covemment net assets $ 44,516,768 $ 47,751,690 $ 49,925,325 s 43,236,246 $ 44,290,101 $ 45,162,663 s 44,217,420 s 43,556,483 s 42,695,809 s 43.133,459

City of Anderson

CHANGES IN NET POSITION -ACCRUAL BASIS OF ACCOUNTING
2012 2013 2014 201S 2016 2017 2018 2019 2020 2021
Expenses:

Governmental activities:

General govemment s 994,627 s 944,641 s 946,983 s 1,125,987 s 1,271,913 $ 1,020,615 $ 1,294,519 s 686,594 s 895,797 s 789,199 Public safety 3,540,835 3,508,803 3,784,936 4,006,100 4,833,530 4,402,297 5,098,330 5,624,597 6,130,653 6,331,573 Public works 1,202,962 1,319,242 934,901 822,903 1,814,825 1,430,663 1,294,411 1,670,015 1,298,170 1,395,954 Planning 172,731 233,434 217,924 186,616 142,533 159,883 243,745 224,552 321,879 304,883 Community development 1,141,022 1,198,644 1,055,762 1,191,956 1,315,390 1,553,231 1,502,302 1,963,182 1,333,566 1,498,679 Recreation and cultural 782,488 817,480 829,424 788,597 891,470 958,595 1,509,288 2,154,909 1,725,343 2,564,278 Total a:ovemmental activities expenses 7,834,665 8,022,244 7,769,930 8,122,159 10,269,661 9,52},284 10,942,595 12,323,849 11,70J,408 12,884,566 Business-type activities:

Water 1,259,071 1,268,479 1,302,362 1,346,506 1,314,69! 1,292,758 1,363,931 1,408,063 1,731,822 1,874,231 Sewer 1,404,891 1,368,073 1,472,662 1,511,181 1,698,260 1,520,512 1,728,242 1,821.554 2,242,422 2,125,372 Total business-type activities expenses 2,663,962 2,636,552 2,775,024 2,857,687 3,012,955 2,813,270 3,092,173 3,229,617 3,974.244 3,999,603 Total primaty government expenses 10,498,627 10,658,796 10,544,954 10,979,846 13,282,616 12,338,554 14,034,768 15,553,466 15,679,652 16,884,169 Program Revenues:

Governmental activities:

Charges for services:

General government 84,876 161,415 164,069 157,257 158,226 131,821 310,007 SS4,S04 61,767 108,417 Public safety 93,403 77,918 113,085 120,143 156,305 122,058 149,100 126,067 266,210 265,144 Public works 107,227 86,793 82,010 73,810 81,771 110.290 73,369 196,628 142,637 355,895 Planning 8,483 9,336 39,898 24,085 26,445 202,125 17,106 23,832 26.411 37,872 Community development 192,425 185,550 158,118 187,487 346,695 176,907 189,900 328,235 433,687 557,269 Recreation and cultural 149,779 196,065 158,662 183,871 148,028 200,433 216,850 192,152 122,308 161,518 Operating grants and contributions 454,753 544,142 268,799 623,533 858,463 269,659 234,529 232.497 267,338 205,563 Capital grants and contributions 1,152,533 3,608,120 2,670,915 321,851 965,697 10,096 20,266 4,850 31,466 24,682 Total a:overnmental activities program revenues 2,243,479 4,869,339 3,655,556 1,692,037 2,741,630 1,223,389 _ . 1,211,127 1,658,765 1,351.824 1,716,360 Business-type activities:

Charges for services:

Water 1,188,555 1,331,294 1,359,971 1,215,720 1,194,625 1,319,081 1,406,386 1,398,403 1,533,396 1,565,871 Sewer 1,514,245 1,554,294 1,583,394 1,685,647 1,682,722 1,717,921 1,723,331 1,736,749 1,809,363 1,796,444 Operating grants and contributions 4,016
Capital grants and contributions 699,780
Total business-type activities program revenues 2,702,800 2,885,588 2,947,381 2,901,367 2,877,347 3,037,002 3,129,717 3,135,152 3,342,759 4,062,095 Total primary government prog,"am revenues 4,946,279 7,754,927 6,602.937 4,593.404 5,618,977 4,260,391 4,340,844 4,793,917 4,694,583 5,778,455 Net (eKpense)/revenue:

Governmental activities (5,591,1861 (3,152,905) (4,114,374) [6,430,122) (7,528,031) (8,301,895) (9,731,468) (10,665,084) (10,353,584) (11,168,206) Business-type activities 38,838 249,036 172,357 43,680 (135,608) 223,732 37,544 (94,465) (631,485) 62,492 Total primary government net expense (S,552,3481 (2,903,869) (3,942,017) 16,386,442) (7,663,639) (8,078,163) (9,693,924) (10,759,549) (10,985,069) (11,105,714)

City of Anderson

CHANGES IN NET POSITION-ACCRUAL BASIS OF ACCOUNTING
(Continued}
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Revenues and Other Changes In Net Assets:

Governmental activities:

Taxes:

Sales taxes 2,213,673 2,308,741 2,326,785 3,313,801 3,980,194 3,922,831 4,120,223 4,863,981 4,756,805 5,700,165 Property taxes 1,321,939 1,718,767 1,610,476 1,680,210 1,770,933 1,863,102 1,983,148 2,128,355 2,268,220 2,386,054 Motel taxes 349,284 430,433 435,540 491,752 518,685 540,262 538,098 661,406 469,789 647,746 Special gas taxes 760,349 657,436 850,164 854,911 788,112 665,531 730,184 962,747 1,049,857 1,140,165 Franchise taxes 295,284 251,896 261,656 273,796 285,836 297,547 316,718 323,879 336,627 353,287 Other taxes 54,383 46,132 44,950 52,904 40,900 49,348 51,668 53,026 56,210 62,224 Motor vehicle license fees 851,313 5,550 4,593 4,437 4,143 Impact fees 226,103 427,302 277,659 331,863 1,059,516 939,240 741,721 825,982 693,381 1,006,884 Gain/loss on sale of asset 7,435 16,000 25
Insurance proceeds
Investment earnings 105,214 348,237 165,650 203,066 263,199 225,203 240,312 220,747 421,697 231,272 Extraordinary items 5,331,961
Transfers 19,005 151,491 107,178 105,379 103,578 106,667 117,718 102,551 105,468 103,216 Total governmental activities 11,528,508 6,345,985 6,092,086 7,312,119 8,815,096 8,625,731 8,839,815 10,142,674 10,158,054 11,631,013 Business-type activities:

Investment earnings 4,066 3,621 2,924 21 5,976 11,227 26,584 58,489 61,493 15,567 Gain/Loss on sale of asset 10,316
Transfers (105,886) (118,935) (107,178) (105,379) (103,578) (106,667) (117,718) (102,551) (105,468] (103,216) Total business-type activities (101,820) [115,314) (104,2541 (105,358) (97,602) (95,440] (91,134) (44,062) (33,659) [87,649) Total primary government 11,426,688 6,230,671 5,987,832 7,206,761 8,717,494 8,530,291 8,74~,681 10,098,612 10,124,395 11,543,364 Change In Net Position:

Governmental activities 5,937,322 3,193,080 1,977,712 881,997 1,287,065 323,836 (891,653) (522,410) (195,5301 462,807 Susir,ess·type activities (62,982) 133,722 68,103 (61,678) (233,210) 128,292 [53,590) (138,527) (665,144) (25,157) Total primary government $ 5,874,340 $ 3,326,802 $ 2,045,815 $ 820,319 $ 1,053,855 $ 452,128 $ (945,243) $ (660,937) $ (860,674) $ 437,650

City of Anderson

FUND BALANCES OF GOVERNMENTAL FUNDS- MODIFIED ACCRUAL BASIS OF ACCOUNTING 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund:

Reserved $ • $ $ • $ s • $ $ $ $ s
Unreserved
Nonspenda ble 170,340 1,270 42,144 1,900 4,309 109,068 141,119 340,254 324,612 140,764 Assigned 90,700 87,208 72,231 83,108 90,001 137,010 160,108 180,978 211,789 233,163 Restricted
Committed
Unassigned 494,272 787,886 579,027 1,199,416 2,402,284 3,288,678 2,796,985 3,419,503 3,521,655 2,751,335 Total general fund $ 755,312 $ 876,364 $ 693,402 $ 1,284,424 $ 2,496,594 $ 3,534,756 $ 3,098,212 $ 3,940,735 $ 4,058,056 $ 3,12~~6_2_ All Other Governmental Funds:

Reserved $ . s . $ • $ $ • $ $ • $ $ • $
Unreserved, reported in:

Special revenue funds
Debt service funds
capital projects funds
Nonspenda ble 10,172,588 9,980,256 9,820,118 9,711,377 9,775,359 9,686,821 191,505 156,522 120,485 120,485 Restricted 3,732,829 4,122,904 3,668,832 4,477,854 5,528,618 5,806,266 15,539,777 15,769,563 16,122,019 17,072,183 Committed 322,680 322,680 211,789
Assigned
Unassigned (2,599,589) (2,562,444) (2,040,230) (2,290,097) (2,016,995) (2,171,7291 (2,052,071) (2,417,7561 (2,785,932) (2,245,3851 Total all other governmental funds $ 11,305,828 $ 11,540,716 $ 11,448,720 $ 11,899,134 $ 13,286,982 $ 13,321,358 $ 14,001,891 $ 13,831,009 $ 13,668,361 $ 14,947,283

City of Anderson

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS- MODIFIED ACCRUAL BASIS OF ACCOUNTING 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues:

Sales tax $ 2,154,019 $ 2,343,863 s 2,343,332 $ 3,313,527 s 3,988,454 $ 3,922,831 $ 4,120,223 $ 4,863,981 $ 4,756,805 s 5,700,165 Property tax 1,310,502 1,707,845 1,599,841 1,669,411 1,760,138 1,852,514 1,972,450 2,117,585 2,257,302 2,375,358 Motel tax 349,284 430,433 435,540 491,752 518,685 540,262 538,098 661,406 469,789 647,746 franchise tax 295,284 251,896 261,656 273,796 285,836 297,547 316,718 323,879 336,627 353,287 licenses and permits 383,762 631.404 450,033 560,296 1,384,687 870,843 1,143,308 1,522,891 1,165,378 1,380,911 Fines, forfeitures and penarties 36,712 30,095 47,843 89,166 90,737 50,589 50,905 60,643 123,345 150,587 Use of money and property 117,465 77,189 38,042 87,082 91,SSO 113,471 206,139 275,671 303,718 163,228 lntergovemmental revenue 3,083,929 4,858,939 3,958,024 1,813,303 2,365,158 962,649 991,158 1,211,117 1,329,097 1,412,573 Charges for current services 458,867 502,604 481,205 465,288 481,639 448,907 470,675 432,913 359,681 495,178 Other revenues 303,134 238,021 209,855 217,902 484,537 294,306 243,019 837,408 372,019 546,314 Total revenues 8,492,958 11,072,289 9,825,371 8,981,523 11,451,421 9,353,919 10,052,693 12,307,494 11,473,761 13,225,347 Expenditures:

Current:

General government 971,287 1,663,773 832,086 965,457 761,925 843,383 841,031 786,310 995,621 1,121,006 Public safety 3,578,133 S,610,373 3,562,020 3,735,194 3,990,220 4,101,522 4,624,618 5,072,072 5,490,433 S,739,343 Public works 985,822 787,292 658,022 715,908 739,067 685,557 442,817 474,655 662,133 564,374 Planning 175,836 185,229 177,008 186,381 128,632 157,129 213.048 171,055 27~,044 296,316 Commun,ty development 764,767 600,113 672,104 445,934 658,100 726,289 781,417 1,645,972 842,289 751,389 Recreation and cultural 627,558 652,361 657,859 586,096 690,389 779,373 903,991 1,480,625 928,622 1,107,679 Capital outlay 1,668,735 4,050,093 3,019,239 631,715 1,180,820 278,970 1,302,281 1,279,305 1,558,154 2,596,524 Debt Service:

Bond Issuance Costs 64,229
Principal 205,931 172.473 354,821 462,611 ~16.247 536,965 574,579 607,531 680,826 637,184 Interest and fiscal charges 588,338 219,276 409,603 316,263 289,581 278,860 242,640 220,879 191,434 168,620 Total ex~ndltures 9.566.407 14,005,212 10,342,762 8,045,559 8,954,981 8,388,048 9,926,422 11,738.404 11,624,556 12,982,435 Excess (deficiency) of revenues
over tunder) eicpenditul't!s (1,073.4491 [2,932,923) 1517,391) 935,964 2,496,440 965,871 126,271 569,090 [150,795) 242,912 Other financln1 sources lusesl:

Oebt proceeds 3,085,092
Bond Discount
Financing Lease
Sale of capital assets
Insurance Proceeds
Gain on sale of assets 7,435 148,333 103,578 123,459 931,718 Operating transfers in 460,894 312,707 138,178 ,42,8611 [16,792) [814,0001 116,691 119,820 2,117,516 Operating transfers out [336,0031 (108,9361 [31,000) (14,1401 114,3521 [2,014,3001 Extraordinary gain due to dissolution of RDA 665,174
Extraordinary gain due to dissolution of ROA [2,476,045 Total other financing sources (usesl (1,685,9801 3,288,863 114,613 105,472 103..S73 1D6,6U 117,718 10~~1 105,468 103,216 Special Item:

Principal payment of Oaks loan
Net chan1e in fund balance $ [2,759.4291 $ 355,940 $ (402,778) $ 1,041,436 s 2,600,018 s 1,072.538 s 243,989 s 671,641 $ (45,3271 $ 346,128 Debt service as a percentage of non capital expenditures 10.06% 3.94% 10.0W" l0.S1% 10.37" 10.06% 9.48% 7.92% Uf1!11 7.76%

City of Anderson

GENERAL FUND BALANCE COMPARED TO ANNUAL APPROPRIATIONS
Un designated/
Unassigned Annual Balance as% of
Fiscal Year Fund Balance Appropriations Appropriations
2011-2012 $ 494,272 $ 5,462,265 9.0%
2012-2013 $ 787,886 $ 8,461,777 9.3%
2013-2014 $ 579,027 $ 5,489,575 10.5%
2014-2015 $ 1,199,416 $ 6,078,065 19.7%
2015-2016 $ 2,402,284 $ 6,359,308 37.8%
2016-2017 $ 3,288,678 $ 6,760,668 48.6%
2017-2018 $ 2,796,985 $ 7,638,488 36.6%
2018-2019 $ 3,419,503 $ 8,664,567 39.5%
2019-2020 $ 3,521,655 $ 8,928,286 39.4%
2020-2021 $ 2,751,335 $ 9,245,798 29.8%
Source: City of Anderson Financial Report

City of Anderson

GENERAL FUND REVENUES BY SOURCE
Fines,
Ucenses lntergovern- Charges for Forfeitures, Interest and Fiscal Year Taxes and Permits mental Services and Penalties Dividends Miscellaneous Total 2011-2012 $ 3,454,531 $ 156,834 $ 923,359 $ 458,867 $ 36,712 $ $ 60,478 $ 5,090,781 2012-2013 $ 4,542,853 $ 204,102 $ 92,229 $ 502,604 $ 30,095 $ $ 118,440 $ 5,490,323 2013-2014 $ 4,531,048 $ 172,374 $ 53,596 $ 481,205 $ 26,904 $ $ 110,981 $ 5,376,108 2014-2015 $ 5,637,145 $ 228,433 $ 137,966 $ 465,288 $ 70,110 $ $ 134,983 $ 6,673,925 2015·2016 $ 6,444,845 $ 325,171 $ 160,931 $ 481,639 $ 25,980 $ ~ $ 132,912 $ 7,571,478 2016-2017 $ 6,501,252 $ 471,513 $ 119,524 $ 448,907 $ 33,251 $ $ 224,383 $ 7,798,830 2017-2018 $ 6,834,106 $ 319,514 $ 150,279 $ 470,675 $ 39,779 $ $ 187,591 $ 8,00f,944 2018-2019 $ 7,855,393 $ 361,237 $ 131,946 $ 432,913 $ 58,414 $ $ 667,277 $ 9,507,180 2019-2020 $ 7,709,244 $ 471,290 $ 136,047 $ 359,681 $ 116,724 $ $ 252,621 $ 9,045,607 2020-2021 $ 8,963,486 $ 504,309 $ 113,865 $ 495,178 $ 37,949 $ $ 198,217 $ 10,313,004 Note: The schedule above includes only those revenues recorded in the General Fund.

Source: City of Anderson Financial Report

City of Anderson

GENERAL FUND TAX REVENUES BY SOURCE
Transient
General Sales and Occupancy Property
Fiscal Year Property Tax Use Tax Tax Transfer Tax Franchise Tax - 2011-2012 $ 640,995 $ 2,154,019 $ 349,284 $ 14,949 $ 295,284 2012-2013 $ 1,488,553 $ 2,343,863 $ 430,433 $ 28,108 $ 251,896 2013-2014 $ 1,466,739 $ 2,343,332 $ 435,540 $ 23,781 $ 261,656 2014-2015 $ 1,536,466 $ 3,313,527 $ 491,752 $ 21,604 $ 273,796 2015-2016 $ 1,642,105 $ 3,988,454 $ 518,685 $ 9,765 $ 285,836 2016-2017 $ 1,708,040 $ 3,922,831 $ 540,262 $ 32,572 $ 297,547 2017-2018 $ 1,822,763 $ 4,120,223 $ 538,098 $ 36,304 $ 316,718 2018-2019 $ 1,968,856 $ 4,863,981 $ 661,406 $ 37,271 $ 323,879 2019-2020 $ 2,102,068 $ 4,756,805 $ 469,789 $ 43,955 $ 336,627 2020-2021 $ 2,210,712 $ 5,700,165 $ 647,746 $ 51,576 $ 353,287 Note: The schedule above includes only those revenues recorded in the General Fund.

Note: This revenue includes Property Tax in Lieu VLF which in prior years has been reclassified separately.

Source: City of Anderson Financial Report

City of Anderson

GOVERNMENTAL FUNDS EXPENDITURES BY FUNCTION
Recreation
General Community Public Public Parks and Capital Debt
Fiscal Year Government Planning Development Safety Works Cultural Outlay Service Total 2011-2012 $ 971,287 $ 175,836 $ 764,767 $ 3,S78,133 $ 985,822 $ 627,558 $ 1,668,735 $ 794,269 $ 9,566,407 2012-2013 $ 1,663,773 $ 185,229 $ 600,113 $ 5,610,373 $ 787,292 $ 652,361 $ 4,050,093 $ 455,978 $ 14,005,212 2013-2014 $ 832,086 $ 177,008 $ 672,104 s 3,562,020 $ 658,022 $ 657,859 $ 3,019,239 $ 764,424 $ 10,342,762 2014-2015 s 965,457 $ 186,381 $ 445,934 s 3,735,194 $ 715,908 $ 586,096 $ 631,715 s 778,874 s 8,045,559 2015-2016 $ 761,925 $ 128,632 $ 658,100 $ 3,990,220 $ 739,067 $ 690,389 $ 1,180,820 $ 805,828 $ 8,954,981 2016·2017 $ 843,383 $ 157,129 $ 726,289 $ 4,101,522 $ 685,557 $ 779,373 $ 278,970 $ 815,825 s 8,388,048 2017-2018 $ 841,031 $ 213,048 $ 781,417 $ 4,624,618 s 442,817 $ 903,991 $ 1,302,281 $ 817,219 $ 9,926,422 2018-2019 $ 786,310 $ 171,055 $ 1,645,972 s 5,072,072 s 474,655 s 1,480,625 s 1,279,305 $ 828,410 s 11,738,404 2019-2020 $ 995,621 $ 275,044 $ 842,289 s 5,490,433 s 662,133 s 928,622 s 1,558,154 s 872,260 s 11,624,556 2020-2021 $ 1,121,006 $ 296,316 s 751,389 $ 5,739,343 $ 564,374 $ 1,107,679 $ 2,596,524 $ 805,804 $ 12,982,435 The schedule above includes only those expenditures recorded in the general fund, special revenue, debt service and capital projects funds.

Source: City of Anderson financial Report

City of Anderson

SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS
Special Special
Assessment Assessment
Fiscal Year Billings Collected - 2011-2012 $ 146,855 $ 170,051 2012-2013 $ 147,969 $ 154,034
2013-2014 $ 149,431 $ 149,855
2014T2015 $ 150,137 $ 149,651
2015-2016 $ 144,618 $ 148,660
2016-2017 $ 134,584 $ 136,115
2017-2018 $ 144,567 $ 149,931
2018-2019 $ 146,494 $ 145,761
2019-2020 $ 149,966 $ 147,373
2020-2021 $ 150,018 $ 149,538

City of Anderson

PROPERTY TAX- RATES (DIRECT AND OVERLAPPING GOVERNMENTS) AND CITY LEVIES AND COLLECTIONS City of Anderson
City of Anderson Rates Overlapping Rates Levies and Collections Shasta
Anderson Tehama Total
Basic Total Union High Trinity Direct and
Countywide Direct School Community Overlapping Total Tax Current Tax Fiscal Year Levy• City• Tax Rate• District College Rates Levy Collections0 2011-2012 1.0000% 0.0000% 1.0000% 0.0000% 0.0162% 1.0162% $ 552,381 $ 536,161 2012-2013 1.0000% 0.0000% 1.0000% 0.0000% 0.0054% 1.0054% $ 524,890 $ 511,655 2013-2014 1.0000% 0.0000% 1.0000% 0.0185% 0.0088% 1.0273% $ 541,892 $ 525,263 2014-2015 1.0000% 0.0000% 1.0000% 0.0000% 0.0000% 1.0000% $ 574,983 $ 562,940 2015-2016 1.0000% 0.0000% 1.0000% 0.0000% 0.0000% 1.0000% $ 601,822 $ 589,872 2016-2017 1.0000% 0.0000% 1.0000% 0.0089% 0.0057% 1.0146% $ 622,695 $ 611,615 2017-2018 1.0000% 0.0000% 1.0000% 0.0198% 0.0082% 1.0280% $ 745,892 $ 735,272 2018-2019 1.0000% 0.0000% 1.0000% 0.0191% 0.0037% 1.0228% $ 829,873 $ 742,504 2019-2020 1.0000% 0.0000% 1.0000% 0.0157% 0.0033% 1.0190% $ 871,098 $ 778,729 2020-2021 1.0000% 0.0000% 1.0000% 0.0000% 0.0000% 1.0000% $ 940,210 $ 838,257 • On June 6, 1978, California voters approved an amendment to Article XIIIA of the State Constitution. The amendment, commonly known as Proposition 13, limits the taxing power of California public agencies. The California Legislature enacted legislation to implement Article XIIIA (Statues of 1978, Chapter 292, as emended) providing that local agencies may not levy any property tax except to pay debt service on indebtedness approved by voters prior to July 1, 1978, and that each county will levy the maximum tax permitted of $1.00 per $100 of full assessed value . .. Amounts effected by alternate method of apportioning. Participating agencies are paid 100% of the current levy adjusted by file maintenance.

Source: Shasta County Auditor/Controller's Office
Percent of
of Current
Taxes
Collected••

97.06%

97.48%

96.93%

97.91%

98.01%

98.22%

98.58%

89.47%

89.40%

89.16%

City of Anderson

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years
Total
Secured Roll Unsecured Roll Gross Net
Assessed Assessed Assessed Less Assessed
Fiscal Year Value Value Value Exemptions Value - 2011-2012 $ 557,462,105 $ 41,656,399 $ 599,118,504 $ 65,458,206 $ 533,660,-298 2012-2013 $ 572,132,291 $ 38,502,066 $ 610,634,357 $ 72,164,485 $ 538,469,872 2013-2014 $ 617,152,132 $ 37,634,368 $ 654,786,500 $ 75,198,645 $ 579,587,855 2014-2015 $ 648,662,132 $ 37,649,568 $ 686,311,700 $ 77,543,292 $ 608,768,408 2015-2016 $ 682,636,291 $ 36,765,633 $ 719,401,924 $ 79,221,746 $ 640,180,178 2016-2017 $ 722,596,581 $ 36,894,132 $ 759,490,713 $ 76,031,062 $ 683,459,651 2017-2018 $ 662,834,214 $ 31,862,331 $ 694,696,545 $ 80,416,865 $ 614,279,680 2018-2019 $ 743,583,732 $ 36,309,419 $ 779,893,151 $ 94,799,699 $ 685,093,452 2019-2020 $ 878,800,142 $ 44,044,388 $ 922,844,530 $ 97,350,106 $ 825,494,424 2020-2021 $ 938,268,416 $ 58,430,840 $ 996,699,256 $ 99,020,421 $ 897,678,835 Source: Shasta County Assessor's Annual Report
Note:

In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed valuation may be increased by an "inflation factor" (limited to a maximum increase of 2%). With some exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently · available with respect to the actual market value of taxable property and is subject to the limitations described above.

These are Gross Taxable Values

City of Anderson

PRINCIPAL SECURED PROPERTY TAXPAYERS
June 30, 2021 and 2011
2021 2011
Percentage Percentage
2021 ofTotal 2011 ofTotal
Type of 2021 Assessed Assessed 2011 Assessed Assessed
Taxpayer Business Rank Valuation Valuation Rank Valuation Valuation --- --- Walmart Real Estate Trust Retail Store 1 $ 19,300,000 2.45% 1 $ 17,500,000 3.10% Branagh Kimberly Lyn Etal Retail Outlets 2 11,095,319 1.41% 2 9,606,237 1.70% Anderson Property Corporation Medical/Dental/labs 3 8,636,083 1.10% n/a 0.00% Anderson Senior Apartments Apartments 4 8,076,110 1.03% 4 7,064,635 1.25% Safeway Holdings, Inc Grocery 5 8,027,247 1.02% 5 6,650,165 1.18% Legerity Group, LLC Apartments 6 7,700,000 0.98% 8 5,800,000 1.03% Anderson Pacific Associates Apartments 7 7,043,687 0.90% 7 5,955,000 1.06% lzabella Investment, LLC Commercial 8 6,033,882 0.77% n/a 0.00% GE Hansen Retail Sales 9 5,880,295 0.74% n/a 0.00%
Anderson Regency II Associates Apartments 10 5,684,500 0.72% n/a 0.00% Kismat Fuels, Inc Retai I Stores n/a 0.00% n/a 6,554,680 1.16% MJ Properties Investment Property n/a 0.00% 6 5,466,871 0.97% Danny Gamel Commercial n/a 0.00% 9 3,191,367 0.57%
Anderson Shasta Comm. Partners, LP Apartments n/a 0.00% 10 0.00% EI Rio Estates, LLC Mobile Home Park n/a 0.00% n/a 0.00% Top Ten Secured Valuation 87,477,123 11.12% 67,788,9SS 12.02% Other Secured 699,213,806 88.88% 496,118,138 87.98%
Total Secured - Net of Exemptions $ 786,690,929 100.00% $ 563,907,093 100.00% Sources: Shasta County Assessor's Annual Report; City of Anderson Development Services Department Assessor's Annual Report for 1-1 Secured Less Exemptions

City of Anderson

PROPERTY VALUE AND CONSTRUCTION
Commercial Construction Residential Construction
Number of Number of
Fiscal Vear Permits Value Permits Value - 2011-2012 2 $ 764,000 12 $ 2,258,598 2012-2013 64 $ 1,000,424 249 $ 7,916,332
2013-2014 69 $ 940,459 248 $ 5,180,953
2014-2015 68 $ 1,898,388 245 $ 5,512,229
2015-2016 5 $ 3,846,141 39 $ 7,630,526
2016-2017 82 $ 14,822,496 344 $ 12,707,058
2017-2018 48 $ 2,602,443 379 $ 12,655,783
2018-2019 90 $ 5,904,829 844 $ 11,807,209
2019-2020 105 $ 6,238,291 502 $ 18,179,065
2020-2021 202 $ 28,015,930 497 $ 3,167,455
Source: City of Anderson Development Services Department Residential and commercial construction reflect new and additions to building activity only New construction residential includes both single family and multifamily dwellings

City of Anderson

RATIO OF OUTSTANDING DEBT BY TYPE
Govemmental Actlvltles Business-Tl!!! Activities
General Special Tax Total Percentqe Oebt
Obllsation Assessment Allocation Flnandns Rev.nu• Flnanclns Primary ofPenonal Per FIKalYear Bonds Bonds Bonds loans Leases Bonds Loans Leases Government Poeulation lncome(l! tapita 2011-2012 $ $ 3,281,000 $ $ 545,166 $ 1,131,287 $ 207,500 s s 123,122 $ 5,288,075 9,964 531 2012-2013 s $ 3,210,000 s $ 4,060,198 $ 1,016,983 $ 204,000 s 541,972 s 53,096 $ 9,086,249 10,267 885 2013-2014 s $ 3,133,000 $ $ 3,803,129 $ 900,637 $ 200,500 $ 506,482 s $ 8,543,748 10,361 825 2014-2015 s $ 3,055,000 s $ 3,401,658 s 869,682 s 197,000 s 455,782 s $ 7,979,122 10,269 777 2015-2016 s s 2,975,000 s s 2,943,935 s 944,581 s 193,000 s 398,062 s s 7,454,578 10,485 711 2016-2017 $ s 2,889,000 $ s 2.470,785 $ 911,806 $ 189,000 s 338,521 s $ 6,799,112 10,450 6S1 2017-2018 s $ 2,801,000 s s 1,959,111 s 857,837 s 185,000 s 272,949 $ $ 6,075,897 10,370 586 2018-2019 s $ 2,711,000 $ $ 1,413,286 $ 864,811 $ 180,500 s 200,889 s $ 5,370,486 10,476 513 2019-2020 $ $ 2,615,000 $ $ 794,871 s 791,656 s 176,000 s 120,938 s s 4,498.465 10,671 422 20W-2021 s s 2,517,000 s s 221,197 s 1,020,531 s 171,500 s 34,507 s s 3,964,735 10,702 370 Source: City of Anderson Financial Repon
U.S. Census Bureau
State of California~ Department of Finance, Demographic Reseilrch Unit (1) Thi5 informiltion i5 not ~Viillilabre for the City of Anderson (21 No further cla'5ification information was published in the Comprehensive Annual Financial Report in Fiscal Year 2003·2004

City of Anderson

RATIO OF GENERAL BONDED DEBT OUTSTANDING
Last Ten Fiscal Years
Less: Amount
General Available in
Obligation Debt Service
Fiscal Year Debt Fund
2011-2012 $ $
2012-2013 $ $
2013-2014 $ $
2014-2015 $ $
2015-2016 $ $
2016·2017 $ $
2017-2018 $ $
2018-2019 $ $
2019·2020 $ s
2020-2021 $ $
Source: Shasta County Assessor's Annual Report
City of Anderson Finance Department
-
-
-
Total
$
$
$
$
$
$
$
$
$
$
Percentage Net
of Assessed Per City Assessed
Value Capita Population Value
$ 10,165 $ 533,660,298
$ A 10,267 $ 538,469,872
$ 10,361 $ 579,587,855
$ - 10,269 $ 608,768,408
$ - 10,485 $ 640,180,178
$ . 10,450 $ 683,459,651
$ . 10,370 $ 739,308,930
$ - 10,431 $ 779,893,151
$ - 10,671 $ 825,494,424
$ - 10,702 $ 897,678,835

City of Anderson

RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Percentage of
Debt Net Bonded Net
Gross Payable from Net Total Debtto Bonded
Estimated Bonded Enterprise Bonded Assessed Assessed Debt per Fiscal Year Population Debt Revenue Debt Valuation Value Capita 2011-2012 9,964 $ 5,288,915 $ 330,626 $ 4,958,289 $ 533,660,298 0.93% $ 497.62 2012-2013 10,267 $ 9,086,249 $ 799,068 $ 8,287,181 s 538,469,872 1.54% $ 80.7.17 2013-2014 10,361 $ 8,543,748 $ 706,982 $ 7,836,766 s 579,587,855 1.35% $ 756.37 2014-2015 10,269 $ 7,979,122 $ 652,782 $ 7,326,340 $ 608,768,408 1.20% s 713.44 2015-2016 10,485 $ 7,454,578 $ 591,062 s 6,863,516 s 640,180,178 1.07% $ 654.60 2016-2017 10,450 $ 6,799,112 $ 527,521 $ 6,271,591 s 683,459,651 0.92% $ 600.15 2017-2018 10,370 $ 6,075,897 $ 457,949 $ 5,617,948 $ 739,308,930 0.76% $ 541.75 2018-2019 10,431 $ 5,370,486 $ 381,389 s 4,989,097 $ 779,893,151 0.64% $ 478.30 2019-2020 10,671 $ 4,498,465 $ 296,938 $ 4,201,527 $ 825,494,424 0.51% s 393.73 2020-2021 10,702 $ 3,964,735 $ 206,007 $ 3,758,728 $ 897,678,835 0.42% $ 351.22 Source: City of Anderson Financial Report

City of Anderson

RATIO OF ANNUAL DEBT SERVICE FOR BONDED DEBT TO TOTAL GENERAL EXPENDITURES Ratio of Debt
Total Total Service to
Bonded Debt General General.

Fiscal Year Debt Service Expenditures Expenditures
2011.2012 $ 4,958,289 $ 794,269 $ 9,566,407 8.30%
2012~2013 $ 8,287,181 $ 455,978 $ 14,005,212 3.26%
2013-2014 $ 7,836,766 $ 414,749 $ 10,087,667 4.11%
2014-2015 $ 7,326,340 $ 778,874 $ 8,045,559 9.68%
2015-2016 $ 6,863,516 $ 805,828 $ 8,954,981 9.00%
2016-2017 $ 6,271,591 $ 815,825 s 8,388,048 9.73%
2017-2018 $ 5,617,948 $ 817,219 $ 9,926,422 8.23%
2018-2019 $ 4,989,097 $ 828,410 $ 11,738,404 7.06%
2019-2020 $ 4,201,527 $ 872,260 $ 11,624,556 7.50%
2020-2021 $ 3,758,728 $ 805,804 $ 12,982,435 6.21%
Source: City of Anderson Financial Report

City of Anderson

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
June 30, 2021
Jurisdiction
Overlapping Debt Repaid with Property Tax:

Anderson High School
Cottonwood School District
Cascade
Shasta College
Shasta Joint Powers Financing Authority
Total overlapping debt
City of Anderson direct debt:

Anderson Redevelopment Agency 2015
Discount on 2015 Series Bond
Total direct debt
Total direct and overlapping debt
Source: Shasta County Auditor/Controller's Office
City of Anderson Financial Report
Net General
Obligation
Bonded Debt
Outstanding
$ 15,516,225
482,051
27,037,287
207,610,350
22,675,000
273,320,913
6,195,000
(152,893)
6,042,107
$ 279,363,020
Percentage
Applicable City Share
to City of Debt -

21.28% $ 3,301,853

92.30% 444,933

62.39% 16,868,563

4.10% 8,512,024

4.09% 927,408
30,054,781
100.00% 6,195,000
100.00% (152,893)
6,042,107
$ 36,096,,888
Page124
City of Anderson

COMPUTATION OF LEGAL DEBT MARGIN
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Net Assessed Value $ 897,678,835 $ 825,494,424 $ 779,893,151 $ 739,308,930 $ 683,459,65 l $ 640,180,178 $ 608,768,408 $ 579,587,855 $ 538,469,872 $ 533,660,298 Plus Exempt Property (99,020,421) (97,350,106) (94,799,699) (80,416,865) 76,031,062 79,221,746 77,543,292 75,198,645 72,164,485 65,458,206 Total Assessed Value $ 798,658,414 $ 728,144,318 $ 685,093,452 $ 658,892,065 $ 759,490,713 $ 719,401,924 $ 686,311,700 $ 654,786,500 $ 610,634,357 $ 599,118,504 Debt Limit
15% of Total Assessed Value $ 119,798,762 $ 109,221,648 $ 102,764,018 $ 98,833,810 $ 113,923,607 $ 107,910,289 $ 102,946,755 $ 98,217,975 $ 91,595,154 $ 89,867,776 Less Outstanding General
Obligation Debt 24,810,000 24,810,000 26,890,000 28,910,000 6,271,591 6,863,516 7,326,340 7,836,766 8,287,181 4,958,289 Legal Debt Margin $ 94,988,762 $ 84,411,648 . $ _ JS,874,018 $ 69,923,810 $ 107,652,016 $ 101,046,773 $ 95,620,415 $ 90,381,209 $ 83,307,973 $ 84,909,487 Source: Shasta County Auditor's Office and City of Anderson Financial Report

City of Anderson

PLEDGED REVENUE COVERAGE
Tax Allocation Bonds Special Assessment Bonds
Tax Debt Service Tax Debt Service
Fiscal Year Increment Principal Interest Coverage Increment Principal Interest Coverage 2011-2012 $ 426,520 $ 10,490 $ 8,501 22.46 $ 103,038 $ 29,000 $ 80,327 0.94 2012-2013 $ 657,259 $ 90,000 $ 378,106 1.40 $ 109,986 $ 31,000 $ 78,986 ·1.00 2013-2014 $ 547,781 $ 120,000 $ 373,887 1.11 s 109,321 $ 32,000 $ 77,594 1.00 2014-2015 $ 603,578 $ 155,000 $ 368,268 1.15 $ 111,341 $ 33,000 $ 75,157 1.03 2015-2016 $ 668,168 $ 160,000 $ 366,597 1.27 s 108,268 $ 35,000 $ 74,641 0.99 2016-2017 $ 752,585 $ 210,000 $ 257,638 1.61 s 111,902 $ 36,000 s 86,147 0.92 2017-2018 $ 702,868 $ 230,000 $ 251,038 1.46 s 113,383 $ 38,000 $ 71,427 1.04 2018-2019 s 734,768 $ 235,000 s 244,063 1.53 s 111,458 $ 40,000 $ 69,692 1.02 2019-2020 $ 493,237 $ 245,000 $ 236,863 1.02 $ 111,279 $ 41,000 $ 67,904 1.02 2020-2021 s 601,200 $ 250,000 $ 225,884 1.26 s 113,070 $ 43,000 $ 66,040 1.04

City of Anderson

GENERAL INFORMATION
June 30, 2021
Miscellaneous Information
Date of Incorporation
Population
Number of Registered Voter
Area in Acres
Form of Government
Employees
Full-time
Part-time
Miles of Streets
Number of Street Lights
January 16, 1956
10,671
5,227
4,323
Council/Manager
58 s

55.38 478
Recreational SeNices
Community Center
Parks
Parks acreage (improved)
Parks acreage (unimproved)
Baseba II fields
Tennis Courts
Soccer Fields
Skate Park
Basketball Courts
Meeting Hall
1 4
136
318
6 6
2 l
1 l
Public Safety SeNices
Fire Protection
Number of stations
Number of firefighters
Number of volunteers
Police Protection
Number of stations
Number of police officers
Number of records clerks
Reserve officer
Water and Sewer Facilities
Water System
Number of connections
Average daily consumptior
Length of water mains
Wastewater System
Number of connections
Length of sewer lines
1 15
0 1
21 8
1 3,354

1.91 MGO

48.45 4,843

41.8 Educational Facilities
Public Elementary Schools
Classrooms
Teachers
Students
High Schools
Classrooms
Teachers
Students
Other Community Facilities
Care Center {Nursing Home)
Number of patient beds
Number of staff members
Fairgrounds
Number of full-time staff
Number of paruime staff
Number of acres
4 77
57 1,115
6 86
87 1,779
1 143
205
1 4
4 65

City of Anderson

PRINCIPAL EMPLOYERS
Employer
Walmart Supercenter
Oak River (Rehab Specialties) Inn
Anderson Union High School District
Cascade Union Elementary School District
Safeway
lzabella Investment, LLC
Harbert Roofing
Nor-Cal Kenworth - Anderson
Voorwood Company
Stier's RV
Taco Bell
Systems Plus Lumber company
Apex Technology
B& BRV
Big Time Pest Control
Dutch Bros. Coffee
RV Retailer Idaho, LLC
Starbucks Coffee
Total Employment, City of Anderson
2021
Employees Rank
331 1
182 2
205 3
121 4
123 s
78 6
66 7
55 7
so 8
46 9
40 10
39 38
38 38
35 34
32 3,186
Source: City Business License records and California Employment Development Department 2011
Percentage of Percentage of
Total City Total City
Employment Employees Rank Employment

10.4% 328 1 8.6%

5.7% 184 2 4.8%

6.4% 286 3 7.5%

3.8% 129 4 3.4%

3.9% 101 s 2.7%

2.4% - 0.0%

2.1% 0.0%

1.7% 0.0%

1.6% 0.0%

1.4% 0.0%

1.3% 0.0%

1.2% 0.0%

1.2% 0.0%

1.2% 0.0%

1.2% 0.0%

1.1% 0.0%

1.1% 0.0%

1.0% 0.0%
3,800

City of Anderson

ECONOMIC INFORMATION
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Population
9,964
10,267
10,361
10,269
10,485
10,450
10,370
10,431
10,671
10,702
Unemployment Personal
Rate (1) Income (2)

9.8% $

9.8% $

10.1% $

9.5% $

8.0% $

6.9% $

7.2% $

5.8% $

7.3% $

4.2% $
Notes: (1)
(2)
The California Employment Development Department does not publish unemployment rates for the City of Anderson prior to 2006.

This data is not availabte for the City of Anderson. Data shown is taken as a percentage of per capita income for Shasta County, consistent with US Census ratios in the 2010 census. Data is only available through 2019.

Source: California Department of Finance, California Employment Development Department, 2017 US Census, US Department of Commerce, Bureau of Economic Analysis
Per Capital
Personal
Income (2) -
$
$
$
$
$
$
$
$
$
$

City of Anderson

OPERATING AND CAPITAL INDICATORS
Park Acreage Water Sewer Police Calls for
Year Area in Acres Street Miles (improved) Connections Connections Service 2012 4,323 55.4 136 3,266 2,999 25,450
2013 4,323 55.4 136 3,298 3,017 23,423
2014 4,323 55.4 136 3,328 3,084 19,700
2015 4,323 55.4 136 3,328 4,430 17,320
2016 4,323 55.4 136 3,410 4,714 29,333
2017 4,323 55.4 136 3,443 4,739 29,546
2018 4,323 55.4 136 3,443 4,739 22,883
2019 4,323 55.4 136 3,550 4,805 . 23,605
2020 4,323 55.4 136 3,566 4,843 13,310
2021 4,323 55.4 136 3,615 4,843 13,382
Source: California Department of Finance and City of Anderson records

City of Anderson
AUTHORIZED FULL·TIME EQUIVALENT EMPLOYEES BY DEPARTMENT June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 June 30, 2012 Department FTE FTE FTE FTE FTE FTE FTE FTE FTE FTE
City Attorney
Planning 4.00 2.50 5.00 4.50 2.50 0.50 2.50 2.50 2 so 3.50 City Manager, City Clerk, and Personnel 2.00 3.00 4.00 3.00 3.00 3.00 3.00 4.00 4.00 3.00 Finance 5.41 4.41 4.41 4.41 4.41 4.82 4.00 4.00 4.00 4.40 Parks and Recreation 1.00 1.00 2.00 1.00 1.00 1.14 1.14 1.14 3.32 5.33 Public Works 20.00 22.00 21.41 19.64 19.64 21.64 16.91 17.64 17.41 17.00 Police 27.82 28.23 30.05 29.78 27.00 23.55 25.14 22.64 21.14 21.64 Total City 60.23 61.14 66.87 62.33 57.55 54.65 52.69 51.92 52.37 54.87 Source: City of Anderson Personnel Department

City of Anderson

WATER AND SEWER RATES
Last Ten Fiscal Years
Water Sewer
Monthly Rate per Monthly Rate per.

Base cu.ft over the Base 100 cu. Ft. of
Fiscal Year Rate 1000 cu. ft base Rate water consumed
2011-2012 10.83 1.05 19.76 1.30
2012-2013 11.15 1.08 20.35 1.38
2013-2014 11.15 1.08 20.35 1.38
2014-2015 11.71 1.14 21.36 1.45
2015-2016 12.30 1.19 22.44 1.52
2016-2017 12.30 1.19 22.44 1.52
2017-2018 12.30 1.19 22.44 1.52
2018-2019 12.30 1.19 22.44 1.52
2019-2020 12.30 1.19 22.44 1.52
2020-2021 13.02 1.27 22.44 1.52
Notes: Rates are based on a 3/4" or 5/8" meter, which is a standard household meter size.

Source: City of Anderson Public Works Department

l'.AGr
CPAs '© Advisors

INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and City Council
City of Anderson, California
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 Anderson (the City) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated February 9, 2022.

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 City'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.

INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
(Continued)
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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. We did identify a certain deficiency in internal control, described in the accompanying Schedule of Findings and Responses as item 2021·001, that we consider to be a significant deficiency.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of 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.

In connection with our audit referred to above, we also performed an audit for compliance with the Transportation Development Act, the California Code of Regulations, and the rules and regulations and allocation instructions of the Shasta County Regional Transportation Planning Agency, for the year ended June 30, 2021. In connection with our audit, we performed, to the extent applicable, the compliance audit tasks set forth in Sections 6666 of the California Code of Regulations. The results of performing the tasks specified in Section 6666 disclosed no instances of noncompliance with the applicable statutes, rules, and regulations of the Act and the allocation instructions and resolutions of the Shasta County Regional Transportation Planning Agency. In our opinion, the funds allocated to and received by the City for the year ended June 30, 2021, pursuant to the Transportation Development Act, were accounted for and expended in conformance with the Transportation Development Act, the California Code of Regulations, and the rules and regulations and allocation instructions of the Shasta Regional Transportation Agency.

Page135

INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
(Continued)
City's Response to Findings
The City's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Responses. The City's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.

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 to express an opinion on the compliance of the City with the Transportation Development Act, the California Code of Regulations, and the rules and regulations and allocation instructions of the Shasta County Regional Transportation Planning Agency, and not to provide an opinion on the effectiveness of the City's internal control or on other compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
-AJy1 CP/k ~ /{_cl~
AGT CPAs & Advisors
Redding, California
February 9, 2022

City of Anderson

SCHEDULE OF FINDINGS AND RESPONSES
June 30, 2021

FINANCIAL STATEMENTS AUDIT
2021-001

SIGNIFICANT DEFICIENCY
Condition
During our audit of the current year, we identified several audit adjustments that were material to the financial statements and which were required in order for the financial statements to be prepared in accordance and/or conformity with generally accepted accounting principles.

While other year-end adjustments were identified by the City's internal control, these adjustments were not identified through internal controls.

Criteria
All adjustments necessary for financial statements to be prepared in accordance and/or conformity with generally accepted accounting principles should be identified and posted by the City.

Effect
Financial statements which are not in conformity with generally accepted accounting principles could have been prepared and distributed.

Recommendation
We recommend that management take steps to ensure that all adjustments necessary to prepare financial statements in conformity with generally accepted accounting principles be identified and posted prior to the start of the audit.

Response
The City is continuing to look for training opportunities for finance staff in an effort to continue to improve its financial reporting.

City of Anderson

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
June 30, 2021

FINANCIAL STATEMENTS AUDIT
2020-001

SIGNIFICANT DEFICIENCY
Condition
During our audit of the prior year, we identified several audit adjustments that were material to the financial statements and which were required in order for the financial statements to be prepared in accordance and/or conformity with generally accepted accounting principles.

While other year-end adjustments were identified by the City's internal control, these adjustments were not identified through internal controls.

Criteria
All adjustments necessary for financial statements to be prepared in accordance and/or conformity with generally accepted accounting principles should be identified and posted by the City.

Effect
Financial statements which are not in conformity with generally accepted accounting principles could have been prepared and distributed.

Recommendation
We recommended that management take steps to ensure that all adjustments necessary to prepare financial statements in conformity with generally accepted accounting principles be identified and posted prior to the start of the audit.

Current Status
The City is continuing to look for training opportunities for finance staff in an effort to continue to improve its financial reporting.

CITY OF ANDERSON
Anderson, California

REPORT TO THE AUDIT COMMITTEE
June 30, 2021
w~ ~
CPAs 'it) Advisors
To the Audit Committee
City of Anderson
Anderson, California
CPAs © Advisors
We have audited the financial statements of City of Anderson (the City) as of and for the year ended June 30, 2021, and have issued our report thereon dated February 9, 2022. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated November 8, 2021, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, 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 respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of 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, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, 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.

We have provided our findings regarding significant control deficiencies over financial reporting and material noncompliance, and other matters noted during out audit in a separate letter to you dated February 9, 2022.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and our network firms have complied with all relevant ethical requirements regarding independence.

Pagel
P.O. Box 158 • 205 N. Mt. Shasta Blvd., Suite 300 • Mt. Shasta, California 96067 • (530) 926-3881 • E-mail [email protected] 1726 Court Street • Redding, California 96001 • (530) 241-3881 Safeguards have been implemented to reduce the threats on our independence. These safeguards include: continuing education related to independence and ethics requirements; external review of our firm's quality control system; our firm's internal policies and procedures which are designed to monitor compliance with the independence requirements; and the involvement of another firm partner who is responsible for completing an independent quality control review of the financial statements as well as the significant conclusions within with the audit analysis.

Qualitative Aspects of the City's Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during the fiscal year. No matters have come to our attention that would require us, under professional standards, to inform you about: (1) the methods used to account for significant unusual transactions, and {2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's current judgments. Those judgments are normally based on 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 markedly from management's current judgments.

The most sensitive accounting estimates affecting the financial statements are the receivables, the accrued liabilities for pensions, and the liability/asset for the workers' compensation and general liability self-insurance plans.

Management's estimates of receivables are based on historical experience. Management's estimates of the net pension liability and related balances for the deferred inflows/outflows of resources for the defined benefit pension plan administrated by CalPERS are based on an actuarial determination using various actuarial assumptions, which are described in the notes to the financial statements.

Management's estimate of the liability/asset for self-insurance is based on actuarial reports and information received from the JPA monitoring these programs. We evaluated the key factors and assumptions used to develop the estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.

Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The financial statement disclosures are neutral, consistent, and clear.

Significant Difficulties Encountered During the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements Identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all identified misstatements.

In addition, professional standards require us to communicate to you alt material, corrected misstatements that were brought to the attention of management as a result of our audit procedures.

The material misstatements that we identified as a result of our audit procedures were brought to the attention of, and corrected by, management. The attached schedule summarizes corrected financial statement misstatements.

Disagreements With Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City's financial statements or the auditors' report. No such disagreements arose during the course of the audit.

Representations Requested From Management
We have requested certain written representations from management, which are included in the management representation letter dated February 9, 2022.

Management's Consultatlons With Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the City, and operating plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City's auditors.

Other Information In Documents Containing Audited Financial Statements Pursuant to professional standards, our responsibility as auditors for other information in documents containing the City's audited financial statements does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards, we have read the information and considered whether such information, or the manner of its presentation, was materially inconsistent with its presentation in the financial statements.

Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

This report is intended solely for the information and use of the Audit Committee, City Council, and management of the City of Anderson and is not intended to be and should not be used by anyone other than these specified parties.

AGT CPAs & Advisors
Redding, California
February 9, 2022
City of Anderson

ADJUSTING JOURNAL ENTRIES
June 30, 2021
Account Description
Adjusting Journal Entries JE # 7
To reclassify loan disbursements to balance sheet, audit identified. 132-0000-1113109 Loan-Seasons at Anderson
132·5155-5650000 Loans
Total
Adjusting Journal Entries JE # 10
To reclassify 2021 Sweeper Lease principal to current potion of debt, audit identified. 771-0000-2256452 2021 Sweeper
111-0000-2201452 2021 Sweeper
Total
Adjusting Journal Entries JE # 11
To reclassify comp:ete 16117 CIP to improvements and record depreciation. audit identified. 990-0000-1153000 Improvements Olher than Bldgs
990-4017-5550000 Depreciation
990-0000-1156000 Accumulated Oepr-Equipment
990-0000-1151000 Construction ,in Progress
Total
Adjusting Journal Entries JE # 14
To recognize additional TDA revenue, audit tdentified.
105-0000-1101000 Taxes Receivable-Current
1 OS-0000-4630000 County Gas Tax 99400{A)
Total
Adjusting Journal Entries JE # 16
To reclassify operating transfer to capital contributions for enterprise fund assets purchased by governmental fund, audit Identified.
660-0000-3355000 Transfers In
665-0000-3355000 Transfers In
660-0000-4900100 Contributed Capital
665-0ooo-4900100 Contributed Capital
Total
Adjusting Journal Entries JE # 18
To reclassify transfer of capital assets from the full accrual fund to Internal service fund capital contributions.

Total
772-0000-3355000
990-4017-5570051
772-0000-4900100
990-0000-3365000
Transfers In
Report Writing Room Remodel
Contributed Capital
Transfers Out
Debit
50,000.00
50,000.00
57,865.00
57,865.00
45,092.00
4,509.00
49,601.00
10,844.00
10,844.00
21,844.00
677,936.00
699,780.00
21,844.00
677,936.00
699,780.00
Credit
50,000.00
60,000.00
57,865.00
57,865.00
4,509.00
45,092.00
49,601.00
10,844.00
10,844.00
21,844.00
677,936.00
699,780.00
21,844.00
677,936.00
699,780.00
To:

Through:

From:

Date:
!SUBJECT

AGENDA ITEM
!February 15, 2022, City Council Meeting!
Approved for Submittal By:
,';~77.city~ - To Be Presented By:
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Peter Wickenheiser, Deputy Public Works Director
Honorable Mayor and Members of the Anderson City Council Jeff Kiser, City Manager
Peter Wickenheiser, Deputy Public Works Director
February 15, 2022
Authorization to bid the Anderson High School Tank Recoating Project

I RECOMMENDATION
The Deputy Public Works Director recommends that the City Council:

Approve the Specifications, Estimates and Contract Documents for the Anderson High School Tank Recoating Project and instruct staff to advertise for bids.

I FISCAL IMPACT
This project is being funded by Water Capital Improvement Fund. The estimate for the project is $250,000.

ITEM 8.9 PAGE1 2/15/2022
I DISCUSSION and BACKGROUND
The shell and roof were painted in 1991 with a zinc primer; one coat of epoxy; and two coats of urethane. Approximately 23 years ago a white paint was applied to the roof. The problem is the zinc primer has no cohesive strength, the overlying epoxy /urethane has numerous blisters that are peeling off the zinc primer. Part of the zinc primer is being removed with the blistering. Most of the exposed zinc primer is rusting, creating an unsightly appearance.

In 2009 this project was quoted for the 2009-2010 budget; the proposed cost was estimated at $145,000.
!ATTACHMENT

1. 01/14/2022 Roof Photo.

ITEM 8.9 PAGE2 2/15/2022
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