Anderson City Council
February 18, 2025

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were:
 Note 1 – Summary of Significant Accounting Policies
 Note 8 – Defined Benefit Pension Plan
 Note 13 – Commitments and Contingencies
 Note 14 – Changes to or within the Financial Reporting Entity and Error Corrections The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report.

We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated February 13, 2025.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

To the Honorable Mayor and Members of the City Council
of the City of Anderson
Anderson, California

Other Matters
We applied certain limited procedures to the Management’s Discussion and Analysis (“MD&A”), the Budgetary Comparison Schedules, the Schedule of the City’s Proportionate Share of the Net Pension Liability and Related Ratios, the Schedule of the Contributions – Pensions, which are required supplementary information (“RSI”) that supplement the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the Combining and Individual Fund Financial Statements, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the Introductory and the Statistical Sections, which accompany the financial statements but are not RSI. Such information has 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 it.

Restriction on Use
This information is intended solely for the information and use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
Santa Ana, California
City of Anderson
Anderson, California
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
For the Year Ended June 30, 2024

City of Anderson
Table of Contents
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 .................................................................................... 1 Schedule of Findings and Responses:

Material Weakness:

Finding 2024-001 – Deficit Fund Balances and Net Position ............................................................................ 3 This page intentionally left blank.
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707

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
Independent Auditors’ Report
To the Honorable Mayor and the Members of City Council
of the City of Anderson
Anderson, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (“Government Auditing Standards”), the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Anderson, California (the “City”), as of and for the year ended June 30, 2024, 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 13, 2025.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (“internal control”) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and responses as items 2024-001 that we consider to be material weaknesses.

To the Honorable Mayor and the Members of City Council
of the City of Anderson
Anderson, California

2 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

The City's Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City's response to the findings identified in our audit and described in the accompanying schedule of findings and responses. The City's response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Santa Ana, California
February 13, 2025
City of Anderson
Schedule of Findings and Responses
For the Year Ended June 30, 2024
3 Finding 2024-001 Deficit Fund Balances and Net Position Criteria:

A sound government should adopt rigorous policies, for all operating funds, aimed at achieving and maintaining a structurally balanced budget and avoid operating deficit for each fund. The policy should include parameters for achieving and maintaining structural balance where recurring revenues are equal to recurring expenditures.

Internal Service Funds are permitted to be used “to report any activities that provide goods or services to other funds, departments on a cost-reimbursement basis.”
Condition:

As of June 30, 2024, the City continue to report deficits for the following:
 Governmental activities with $(10,688,451) unrestricted deficit  Internal Service Funds with $(2,161,709) deficit net position  Low and Moderate Income Housing Special Revenue Fund with $(77,366) deficit fund balance  Nonmajor governmental funds:
o $(152,331) net deficit in the Street Lighting Special Revenue Fund o $(436) net deficit in the South Ridge Assessment District Special Revenue Fund o $(49,934) net deficit in the Vineyards Lighting and Landscape District Special Revenue Fund o $(15,581) net deficit in the Silvergate Sanitary Assessment District Special Revenue Fund 10 governmental funds, including the General Fund, had expenditures exceeding the appropriation as described in the Note 12 to the basic financial statements. In addition, we also noted many governmental funds, including the General Fund had final budgeted appropriation exceeding budgeted revenues.

Cause:

The governmental activities unrestricted net deficit was primarily due to the reporting of net pension liability.

The City historically did not frequently evaluate the inter-departmental charges for user departments to address the need of Internal Service Fund. The City started to evaluate the cost recovery calculation for internal Service Funds after the finding was first reported for the June 30, 2023 year-end audit. As the deficit has been accumulated over the years and Finance Department experienced turnover during the past years, the project was still on-going as of June 30, 2024.

Monitoring control was inadequate over the Low and Moderate Income Housing Special Revenue Fund’s cash position. The fund has had deficit cash balance over the years and the full evaluation of the cash position and the ability to repay short-term borrowing from General Fund has not been performed.

The deficit governmental fund balances and expenditures over appropriations was result of inadequate budgeting process and the lack of monitoring process to ensure adherence to budgetary limit and monitoring spending.

City of Anderson
Schedule of Findings and Responses (Continued)
For the Year Ended June 30, 2024
4 Finding 2024-001 Deficit Fund Balances and Net Position (Continued) Effect or Potential Effect:

The General Fund’s fund balance may be lower after needed transfers to support deficits in other funds and may not be able to provide essential government services when the unassigned fund balance is depleted. Ongoing structural deficits may reduce the City’s financial flexibility and create long-term fiscal sustainability concerns.

Recommendation:

We recommend the City conduct an evaluation to the current rate structure of the Internal Service Fund to ensure that it accurately reflects the costs and prevents future deficits. Additionally, we recommend that the City implement stronger budgetary controls to ensure all operating funds are balanced, with revenues meeting or exceeding expenditures. This includes analyzing each fund to assess whether future special revenue sources will be sufficient to address fund balance deficits. We also recommend the City evaluate the cash position of all funds and evaluate the funds ability to repay the short-term borrowing. Furthermore, the City should establish clear guidelines and monitoring mechanisms to prevent and address budget overruns. Assess the long-term impact of recurring deficits and establish an action plan to achieve structural balance in all funds.

View of Responsible Officials:

The City recognizes this deficiency and have learned that prior practices were not to be carried over multiple years.

As the new Finance Director was made aware during the 2022-2023 audit, the City began working to resolve these balances in FY 23/24 and is committed to fixing them over the next several years.

City of Anderson
Anderson, California
Independent Accountants’ Report on
Applying Agreed-Upon Procedures to
Appropriations Limit Schedule
For the Year Ending June 30, 2024
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
2 INDEPENDENT ACCOUNTANTS’ REPORT ON

APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor, City Council and Citizens
of the City of Anderson
Anderson, California
We have performed the procedures enumerated below on the appropriation limit of the City of Anderson, California (the “City”) for the year ending June 30, 2024. The City’s management is responsible for the Appropriations Limit Schedule.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution, which was agreed to by the City and the League of California Cities (as presented int eh publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution). This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the year ending June 30, 2024, and verified that the limit and annual calculation factors were adopted by resolution of the City Council. We also verified that the population and inflation options were selected by a recorded vote of the City Council.

Finding: No exceptions were noted as a result of our procedures.

2. For the accompanying Appropriations Limit Schedule, we added the prior year’s limit to the total adjustments, and agreed the resulting amount to the current year’s limit.

Finding: No exceptions were noted as a result of our procedures.

3. We verified the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City.

Finding: No exceptions were noted as a result of our procedures.

4. We verified the appropriations limit presented in the accompanying Appropriations Limit Schedule matched the appropriation limit adopted by the City Council.

Finding: No exceptions were noted as a result of our procedures. (Yllll
www.pungroup.cpa g
ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor, City Council and Citizens
of the City of Anderson
Anderson, California

2 We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit Schedule.

Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

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

Santa Ana, California
August 29, 2024
City of Anderson
Appropriations Limit Schedule
For the Year Ending June 30, 2024
See Accompanying Notes to the Appropriations Limit Schedule. 3 Amount Source
A. Appropriations Limit FY 2022-2023 $ 20,186,305 Prior year appropriations limit adopted by the City
B. Calculation Factors:
1) Population increase % 0.9905 California Department of Finance 2) Inflation increase % 1.0444 California Department of Finance 3) Total adjustment % 1.0345 (B1 x B2)
C. Annual Adjustment Increase 695,987 {(B3-1) x A}
D. Other Adjustments:
1) Loss responsibility (-) - N/A
2) Transfer to private (-) - N/A
3) Transfer to fees (-) - N/A
4) Assumed responsibility (+) 10,000 Fees
E. Total Adjustments 705,987 (C + D)
F. Appropriations Limit FY 2023-2024 $ 20,892,292 (A + E) City of Anderson
Notes to the Appropriations Limit Schedule
For the Year Ending June 30, 2024
4 Note 1 – Purpose of Limited Procedures Review
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to an agreed upon procedures review in connection with the annual audit.

Note 2 – Method of Calculation
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed in Notes 3 and 4 below.

Note 3 – Population Factors
A California governmental agency may use as its population factor either the annual percentage change of the jurisdiction’s own population or the annual percentage change in population of the county where the jurisdiction is located. The factor adopted by the City for the year ending June 30, 2024, represents the annual percentage change in population of the County; and calculated the change in population based off the population conversion ratio.

Note 4 – Inflation Factors
A California governmental agency may use as its inflation factor either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the California Department of Finance) or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year ending June 30, 2024, represents the correct annual percentage change for per capita personal income.

Note 5 – Other Adjustments
A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City had one adjustment in the amount of $ 10,000 fees, for the year ending June 30, 2024.

AGENDA ITEM
Webruary 18, 2025 City Council Meetingj
or Submittal By:
-- -Deshais, City Manager
To:

Through:

Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
From:

Date:

I SUBJECT
Tyler Finch, Lieutenant, via Oliver Collins, Chief of Police February 18, 2025
California Highway Patrol- Cannabis Tax Fund Grant Program (CTFGP) submission resolution

I RECOMMENDATION
City staff recommends that the Anderson City Council approve the requested resolution in support of the grant application and if funded in part or in whole, to accept the funding.

I FISCAL IMPACT
This is a reimbursement structured grant and there will be no fiscal impact to the city. The city will be responsible for the initial cost of equipment, overtime, and educational materials, which will be reimbursed quarterly.

Police department staff time will be required to manage the grant, purchase equipment, and complete quarterly grant reporting. The amount applied for was $276,500, which primarily is for equipment to deter and investigate impaired driving instances.

I DISCUSSION and BACKGROUND
With the passage of Proposition 64, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA), California voters mandated that a portion of cannabis tax revenue be allocated to the ITEM 8.8 PAGE1 2/18/2025
California Highway Patrol (CHP) for distribution as grants to local governments and qualified nonprofit organizations. This directive is outlined in Revenue and Taxation Code Section 34019(t)(3)(B).

The Cannabis Tax Fund Grant Program represents a significant step in enhancing roadway safety by reducing impaired driving incidents, increasing public awareness of the dangers of impaired driving. and providing essential resources for law enforcement agencies.

The submission and potential awarding of this grant does not require the City of Anderson to engage in, endorse, or license cannabis-related activities or businesses. Funding from this grant program is available to all eligible agencies in California, irrespective of a jurisdiction's stance on cannabis legalization.

Grant Application Submission:

In February 2025, the Anderson Police Department submitted an application for funding through the California Highway Patrol - Cannabis Tax Fund Grant Program. This grant is specifically designed to assist law enforcement agencies by providing financial support for equipment, training, and other resources to combat and deter impaired driving caused by alcohol and/or drugs.

As part of the application process, the grant program requires a formal resolution from the Anderson City Council. Specifically, the grant guidelines state, "The resolution MUST explicitly state the Organization/Agency has delegated authority to enter into a Grant Agreement for the requested amount." (see attached resolution).

The requested resolution will affirm the City's authorization to enter into a grant agreement, should the Anderson Police Department be awarded in full or partial funding. Grant award announcements are anticipated in or around June 2025. The grant period is July 1, 2025 through June 30, 2026.

Proposed Use of Grant Funds:

If awarded, the grant will provide funding for essential equipment and resources aimed at enhancing community and officer safety, improving public education on impaired driving, and strengthening proactive enforcement efforts. Specifically, the Anderson Police Department intends to utilize the grant funding for:
• Safety Equipment - Personal protective gear for officers assigned to DUI checkpoints, traffic collision investigations, and related incidents. • Data Analysis Equipment - Technology for processing and documenting collision and crime scenes.
• Pursuit Prevention and Intervention Devices - Tools to mitigate risks associated with vehicle pursuits.
• Incident Command and Enforcement Vehicles - Vehicles designated for command operations and enforcement in restricted access areas.

ITEM 8.8 PAGE2 2/18/2025
All requested equipment and resources align with the following core focus areas:
• Community Safety
• Community Engagement
• Community Education
• Proactive Enforcement
• Officer Safety
• Victim Advocacy through Enhanced Investigations
• Deterrence of Impaired Driving
Conclusion:

Pre•approval of this grant will enable the Anderson Police Department to secure critical resources that will enhance public safety and improve the department's ability to deter and investigate impaired driving. Additionally, it will strengthen partnerships between law enforcement, community stakeholders, businesses, schools, and allied agencies through educational initiatives and enforcement efforts.

City staff recommends that the Anderson City Council approve the requested resolution in support of the grant application.
jATTACHMENT

1. Grant Application

2. Resolution
ITEM 8.8 PAGE3 2/18/2025
•
.
.

Anderson Police Department 2025
Prepared by ANDERSON POLICE DEPARTMENT
for California Highway Patrol (CHP) Law Enforcement: Small and Mid-Size Organizations/Agencies FY 2025/2026 Primary Contact: Tyler Finch
Opportunity Details
Opportunity Information
nue
Law Enforcement: Small and Mid-Size Organizations/Agencies FY 2025/2026 Description
Anderson Police Department 2025

ANDERSON POLICE DEPARTMENT
Law Enforcement grants provide financial assistance to allied agencies for the education, prevention, and the enforcement of laws related to driving under the influence of alcohol and other drugs, including cannabis and cannabis products.

The intent of the program is to educate the public regarding the dangers oHmpaired driving, enforce impaired driving laws on the roadway, and improve the Organization/Agency's effectiveness through training and development of new strategies.

Awarding Agency Name
California Highway Patrol
Agency Contact Name
Cannabis Grants Unit (CGU)
Agency Contact Phone
916-843-4360
Agency Contact Email
[email protected]
Fund Activity Categories
Education, Law, Justice and Legal Services
Manager
Cannabis Grants Unit (CGU)
Opportunity Posted Date
1/8/2025
Public Link
https://www.gotomygrants.com/Public/Opportunities/Details/cd30d005-b1e2-4785-86ba-ea5c151bd666 Is Published
Yes
Funding Information
Opportunity Funding
$13,000,000.00
Funding Sources
State
Funding Source Description
With the passage of Proposition 64 in 2016, The Control, Regulate, and Tax Adult Use Marijuana Act {AUMA), California voters mandated the state to set aside funding for the CHP to provide grants to local governments and Qualified Nonprofit Organizations for the education, prevention, and enforcement of impaired driving laws pursuant to Section 34019 (f)(3)(B) Revenue and Taxation Code (RTC).

Funding Restrictions
State Agencies/Departments, please refer to Section 34019 (f)(3)(B) RTC and California Code of Regulations, Title 13,

Division 2, Chapter 13, for additional infonnation.

Award Information
Award Range
$500,000.00 Ceiling
Award Period
07/01/2025 • 06/30/2026
Award Type
Competitive
Indirect Costs Allowed
No
Matching Requirement
No
Submission Information
Submission Window
01/08/2025 8:00 AM· 02/23/2025 5:00 PM
Submission Timeline Type
One lime
Submission Timeline Additional Information
GRANT APPLICATIONS ARE DUE FEBRUARY 23, 2025, BY5:00 PM PST Anderson Police Department 2025

ANDERSON POLICE DEPARTMENT
Grant Applicants are advised to ask submittal questions well before the deadline. The Cannabis Grants Unit (CGU) cannot guarantee an lmmediate response and the Grant Management System (GMS) will automatically close at 5:00 PM PST. Once a Grant Application is submitted through the GMS, Grant Applicants may not add, edit, or delete any Grant Application infonnation.

Question Submission Information
Question Submission Open Date
01/08/2025 8:00 AM
Question Submission Close Date
02/21/2025 5:00 PM
Question Submission Email Address
[email protected]
Question Submission Additional Information
GRANT APPLICATIONS ARE DUE FEBRUARY 23, 2025, BY 5:00 PM PST.

CGU Office Hours:

Monday through Friday
8:00 am to 5:00 pm
If assistance is required, please contact the Cannabis Grants Unit no later than Friday, February 21, 2025.

Attachments
• Grant Application Evaluation Criteria
• FY25-26 RFA - Law Enforcement Small and Mid-Size

:r
Eligibility Information
Eligibility Type
Public
Additional Eligibility Information
Anderson Police Department 2025

ANDERSON POLICE DEPARTMENT
Small and Mid-Size Law Enforcement Organizations/Agencies, with the primary function of enforcing traffic laws, which includes responding to calls, making arrests, and issuing citations, pursuant to the California Penal Code, California Vehicle Code, and California Health and Safety Code
Small-Size Law Enforcement Organizations/Agencies: 100 employees or less Mid-Size Law Enforcement Organizations/Agencies: 500 employees or less Additional Information
Additional Information URL
bflps/{wwN cro ca qoy1p~rams-seoiceslprogramsfcarmat>is-tax-fund-gran1,-Qrogram Award Administration Information
State Award Notices
Awards will be announced in May and June 2025.

Adrrunistrative and National Policy Requirements
The California Highway Patrol (CHP) adopted regulations within litle 13 of the California Code of Regulations (CCR}, Division 2, by adding Chapter 13, which govern the CHP, Cannabis Tax Fund Grant Program.

These regulations outline:
* Grant Provisions
* Grant Project Types
* Specific Grant Application Requirements
* Grant Evaluation Criteria
* Necessary Administrative Procedures for the Program
Regulations can be found at:
https://www.chp.ca.gov/programs-services/programs/cannabis-tax-fund-grant-program/program-regulations Reporting
Quarterly Reporting is required and due within 14 calendar days after the close of each quarter.

Quarter One (01 ): July 1 - September 30
Quarter Two (02): October 1 - December 31
Quarter Three (03): January 1 • March 31
Quarter Four (04): April 1 • June 30
Other Information
Please ensure ~ur Organization/Agency has the capability to electronically sign required documents (ex: Grant Agreement).

Project Information
Application Information
Application Name
Anderson Police Department 2025
Award Requested
$276,500.00
Total Award Budget
$276,500.00
Primary Contact Information
Name
Tyler Finch
Email Address
lfinch@a ndersonpolice .org
Address
2220 North St
Anderson, CA 96007
Phone Number
(530) 917-9655
Anderson Police Department 2025

ANDERSON POLICE DEPARTMENT

Project Description

1. Organization/Agency Representatives
Organization/Agency Section/Unit (subdivision) to administer the Grant Agreement

ANDERSON POLICE DEPARTMENT
Organization/Agency Representative
Anderson Police Department 2025

ANDERSON POLICE DEPARTMENT
Please complete the following fields with appropriate Organization/Agency representatives, as applicable. • The Authorized Official is authorized to enter into a Grant Agreement with signing authority. • The Authorized Financial Contact maintains financial records, documentation, and recipient of warrant • The Administrative Contact is responsible for day-to-day administration.

Authorized Official Name (first and last)
Joey Forseth-Deshais
Authorized Official Title
City Manager
Authorized Official Address (street, city, state, zip code) 1887 HOWARD ST. Anderson, Ca 96007
Official Address to Receive Reimbursement Payment - MUST MATCH F1$CAL FORM (street, city, state, zip code) 1887 Howard St. Anderson, Ca 96007
Authorized Official Phone Number (with area code)
5303786650
Authorized Official Email Address
[email protected] .us
Authorized Financial Contact Name (first and last)
Cindy Wheeler
Authorized Financial Contact Title
Finance Director
Authorized Financial Contact Phone Number (with area code) 530-3786626
Authorized Financial Contact Email Address
[email protected] .us
Administrative Contact Name (first and last)
TyterFinch
Administrative Contact TiUe
Lieutenant
Administrative Contact Phone Number (with area code)
5309179655
Administrative Contact Email Address

[email protected]
Anderson Police Department 2025

ANDERSON POLICE DEPARTMENT

Anderson Police Department 2025

ANDERSON POLICE DEPARTMENT

2. Senate/Assembly/Congressional/County Information
To determine the State Senate District(s), State Assembly District(s}, and California Congressional District(s), copy and paste the below URL in your browser and search:
1tttps:11g1s.data&a,.govtmapsJCDEGfS;;tegtsla#¥&:<ftsb1cts~n-cafifomfa-2/about Select one or more State Senate District(s) where the proposed Project activities will occur. To make multiple selections, hold down the Ctrt key and click each one.

State Senate 01
Select one or more State Assembly District(s) where the proposed Project activities will occur. To make multiple selections, hold down the Ctrt key and click each one.

State Assembly01
Select one or more California Congressional District(s) where the proposed Project activities will occur. To make multiple selections, hold down the Ctrt key and click each one.

California Congressional District 01
Select one or more California counties where the proposed Project activities will occur. To make multiple selections, hold down the Ctrt key and click each one.

Shasta
Number of residents (population) that your Organization/Agency serves. 50000

Anderson Police Department 2025
ANDERSON POLICE DEPARlMENT

3. Statistical Data
Ensure the responses below are accurate and align with the statistical data provided within the Grant Application. If a question 1s not applicable, please input "0" or "NIA".

How many schools are in your jurisdiction?
Elementary Schools Middle Schools
Number of Schools 4 4
How many law enforcement personnel are within your Organizat1orv'Agency? 25 High Schools Colleges/Universities
2 0
Does your Organization/Agency have specifically designated traffic enforcement personnel who conduct driving under the influence (DU I) enforcement operations?
•Yes
O No
How often does your Organization/Agency conduct DUI enforcement activities (ex: DUI Saturation Patrols, DUI Checkpoints)?
- I Weekly Average Monthly Average Yearly Average
ement Activities ' 2 6 40
-·
How many law enforcement personnel have attended Standard Field Sobriety Test (SFST), Advanced Roadside Impaired Driving Enforcement (ARIDE), and/or Drug Recognition Evaluator (DRE) tra nmg? l
~
- SFST ARIDE DRE
Trai~ed Law Enforcerne_n_t _P-er_s_o_n_n_e_l ---------+-1-9---+--13-------<>-5-------,, How many certified DREs does your Organization/Agency currently have? 3 How many law enforcement personnel are certified SFST and/or DRE Instructors? ------= = ~-=-~_....____-70sF-ST __.___[ 0o~E~j Number of Certified Instructors _ l _-----.=] What in-service training does your Organization/Agency offer related to DUVDUID? For new officers who are fresh out of academy we require or provide:

During the FTO program they are required to complete, and are trained on, DUI investigations by their FTO They have access to our Traffic Specialist for any DUI investigations They are required to complete EPAS training provided by DOJ They are required to complete online PAS training provided by our equipment manufacturer During the FTO program they are required to complete a minimum of 2 weeks with the FTO Traffic Specialist where they focus on DUI investigations and other traffic matters As a condition of being a new officer in our department it Is our policy to send them to SFST within the first few ~arortwo
AnnuaNywe poll our membership for those who wish higher DUI training such as ARIDE and DRE, and send multiple officers to these higher trainings each ~ar
For lateral officers who transfer to our department we provide:

During the FTO program they are requtred to complete, and are trained on, DUI investigations by their FTO They have access to our Traffic Specialist for any DUI investigations They are required to complete EPAS training provided byDOJ if they have not been trained ~t They are required to complete online PAS training provided by our equipment manufacturer unless they have

already completed this at their old department
Anderson Police Department 2025
ANDERSONPOL~EDEPARTMENT
During the FTO program they are required to complete a minimum of 1 week with the FTO Traffic Specialist where they focus on DUI investigations and other traffic matters As a condition of being a new officer in our department it Is our policy to send them to SFST within the first few year or two unless they have already received this training Annually we poll our membership for those who wish higher DUI training such as ARIDE and DRE, and send multiple officers to these higher trainings each year
For all officers we offer:

Occasional department-hosted trainings on specific aspects of DUI investigations or procedure via training bulletins.

It is the intent of the Anderson Police Department to have all officer trained to a minimum standard of ARIDE and all front line supervisors to be trained as Checkpoint Supervisors.

Is training conducted at your Organization/Agency or at an alternate facility? @ Within Organization/Agency
O Alternate Facility
Do law enforcement personnel participate in training with local city attorneys and/or district attorneys? • Yes
Q No
Grant Funded Equipment
Have Cannabis Tax Fund Grant Program Grant Funds been utilized to purchase equipment (an acquisition cost of at least $5,000)?
Q Yes
<9No
If yes, list EACH equipment item and fiscal year of the Grant Agreement.

EXAMPLE ONLY
FY21-22 = Two Message Boards
FY22-23 = One DUI Vehicle

4. Project Description
Project Types: Please select project type(s) applicable to your Project.

O Law Enforcement Training
18:1 Public Education and/or Prevention
18:1 Enforcement Efforts
Anderson Police Department 2025

ANDERSON POLICE DEPARTMENT
Provide a brief ovef\liew/synopsis (a paragraph) of the proposed Project. PLEASE DO NOT COPY AND PASTE TABLES IN FIELD - TYPE INFORMATION IN FIELD.

The Anderson Police Department is seeking this grant opportunity to assist in the procurement of valuable and essential equipment to focus on three major areas of service:

Increase officer safety and presence at DUI checkpoints and in lesser served areas of the community.

Deploy community engagement and educational tools on the roadways and at community events with the intent of deterring persons from driving under the influence of intoxicating substances.

Utilize modem investigative equipment to allow us to proper1y and effectively address collisions and DUV DUID related incidents in the unfortunate event that they occur.

Under our current and anticipated OTS grant, we are conducting 41 DUI and traffic violation saturation patrols, conducting 3 DUI checkpoints, sending officers to training courses such as SFST, ARIDE, and DRE, and participating in numerous collaborative events. Working in combination with existing efforts, we are hoping to increase our abilities to educate the public about the dangers of Drunk and Drugged Driving. conduct targeted enforcement efforts, and increase our investigative capabilities in the event there is a collision or incident requiring more modem equipment.

5. Problem Statement & Proposed Solution
Anderson Police Deparbnent 2025

ANDERSON POLICE DEPARTMENT
Clearly identify the problem/need (Problem Statement) in your local community that will be addressed by the Project. Then, clearly identify the Proposed Solution to address the problem/need. If applicable, provide recent and hig~level statistical data that directly supports the problem/need in your local community. PLEASE DO NOT COPY AND PASTE TABLES IN FIELD-EffHER TYPE INFORMATION IN FIELD OR ATTACH DOCUMENT.

Backgrowxl:

The City of Arderson is a resnettial colTITllnity bcated in the southern portion of Shasta County. Wtthin the City of ArdeIBOn, there is [ntmtate 5 arrl State Route 273. Cmrently the City of Amerson has a population of approxirretely 11.210 (2023 ). The City of Arderson is 1nm: to the Shasta Distn:t FairgJ:ounls, om: of only two Wahmrt Sq,er Centers in the regi:>n, arrl the Shasta Gateway Retail Outlets. The city sits approximtely 4 ni1es south of the Win River Casiro & Resort bcated on State Route 273. In additim to g;mi,ling arrl dining, the casiro rosts events soch as co.-.::erts, corredy slnws, arrl MMNBoxing rmtches. The resort is open 24 lnurs a day, 365 days a )'!31". The casino causes an n:rease in collisi>ns as well as irrt>aired drivers as they leave the casino arrl enter our city vil State Rotie 273 at all lnurs of the day arrl niglt. All visitors of the resort from the south 111.fil pass through our city on Highway 273 or from Ox Yoke Road. There are two bars within our city lirrits arrl nurrerous liqoor stores. The Uni>n Pacific Railroad travels through the City of Arderson with fuur liglt controlled iriersections arrl ore u.-.::ottrolled illersecti>n The City of Arderson currently has IO autormted ocense plate reader carreras positioned on rmjor roadways within the city. These ten carreras attel1l)t to capnre every vehicle which passes lor the prinmy direction of travel lanes they are positioned towards, arrl also often capnre the opposite direction 1anes as well. These ten cru:reras do oot always capture every single velocle, they occasionally rrm srmller vehicles Sll:h as bi:~les or 1TDtorc)\:les, arrl they som:tim:s have outages due to weather or other circum;tan:es. They also only cover ten single locatiom in the entire 6.6 sqwre nile city. They have a leah.l'e to count the total nurrber ofllllXlue velocles (oot repeat hits) whi:h travel on the roads by day, ITDrth, or year. Usirg this statisti:, the City of Arderson koows that from this very linited data set, the City sees over 6.3 nioon unique vehicles each year on its roadways. The city has a very high traffic mlurre, likely due to the above menti>m:d !actors.

Problem:

With the passing of AB I 09 arrl Propositi>m 47 & 57, there has been an n:rease in violent crimes arrl call; fur seivice for patrol We have seen, year after year, semu; ofrenders be released from our k>cal jails, ~ofrend in our coll1Wllity. Due to these issues, Oflicers are seeing linited tirre i>r gem:ral traffic enfurcerrent. Officers are given some di<.cretion; h:>wever they frequently are required to pmrili2e call; fur service ahead of proactive duties. This has been the case fur rmny years arrl contiuEs to prove challenging.

The city has seen the fulbwirg collisim arrl ir!jury trends:

In 2021 we had 244 total collisi>ns, with 3 7 of which were iajury or latal In 2022 we had 331 total colbsi>m, with 24 of whi:h were injury or latal rn 2023 we had 292 total collisons, with 24 of which were injury or futal In 2024 we had 198 total collisi>ns, with 35 of whi:h were ijury or fatal For a city size ofju;t over 11,000 people, these are very high collision nuni,ers.

It smuki be ooted, the city does oot report onl-5 collisi>ns oordo we take collisi>ns on 1-5, for this i<; CHP'sjurisdi::ti>n We DO take collisiom on SR-273 arrl we DO report on these collisiJm. [f collisions on our State Route were re1TDved from our collisi>n data, the Arderson Poli:e Departirent wouki see a redoction of approxirretely half of all collisions the city reports on or amstig;ates. State Route 273 i, a ~vy burden on our city for iajury arrl rmjor collisi>ns even trough it is State property. As a result, the preserx:e of State Route 273 n:reases the occUll"el"Ces ofiljury and fatal collisiom. 2021, 2022, 2023, arrl 2024 statisti:s slnw the m:ed fur attenti>n on traftr rebted nntters. In 2022, Arderson had an OTS COl1l)Osite ranking of29/104, 42/104 ranking for total fataVirgury collisions, 55/104 fur rmtorc~le coltisi>ns, and 111104 for drinking age 21-34 ir!jury collisi>ns. These mnbers are even m:,re s~ due to the "E'' ciy population g;i.p beirg I 0,000 to 25,000, arrl our city only having a populafun of 11,210. This puts Arderson as one of the m:,st unsafe cities in the state il this population gJO~ with re~ to ttaftr safety co.-.::erns. The City of Arderson experierx:es nnre traffic-related challenges than ore wouki expect of the population size, but these challenges are directly reated to the surrounding attractions li<;ted above, soch as a reaiby casino, two 1111jor traflr routes, arrl two nejor slnpping centers.

We are prow to share we collaborate with the Reddmg Polx:e Departnrnt, Shasta Coimty Sl-eriffs Office, Red Blutf Pooce Department, arrl the Califumia Higltway Patrol in otr traftr efforts. We parti::ipate and assist our allied age.-.::ies with operations arrl ct.:ckpoint plamirgequiprrent arrl they in tlm ass51 u; with our ct.:ckpoinls, traffic enforcement, arrl planning efforts. This past year (2024) we added Red Bh.df Pooce Department to our li<;t of allied agen::ies as they received an OTS grant last year (2024).

Sn:e October 2020, the City of Amerson has irrt>lem:nted a fuB..tirre Traffic Ofli:er to 1-elp coni>at these mted traffic arrl colli<;ion trends and to 1-elp coordimte the OTS grants we have applied for arrl received. We are prold arrl grateful to have received OTS iµnts

Anderson Police Department 2025
ANDERSON POLICE DEPARlMENT
fi:ir five years in a row. Despite these~ ard the efforts of the city to prorrote trafli: safety, our city i, seeing slf>taned trafli: safety challenges as outlined in the raw nmi>ers in this problem staterrent. Based on the lll)St recent data av.iilable, from kx:al data from 2024, we seem to have a very slight upward treoo to ~ nurrber of injury collisions ard a slight downward trem of total ca11s fur servi::e fur all typeS of collisX>ns. We krow the large nurrber of overtim: trafli: sarety operations from OTS is an integral part of so~ this issue of trafli: sarety in our colllTllllity. We do not w.ut to relax ~ overtire ard enfurcerrcnt operafuns; we want to continue our efforts to push this trem downwards even nDre with another OTS STI:P grant These are sorrc annual ootable collisX>n statisti:s that are COlllliled ard distri,uted to the entire police depamrent anrually to help characteria: ard b!Ull awareress to the tratli: i,sues in Amerson:

APD receMXI 198 collision calls fur servi:e
Offi;:ers took 89 collisX>n reports
Offi;:ers were dispatched to 88 DUI call-;, ard overall arrested 66 irrpan:d drivers Our top 3 primuycollision factors are: Speed (16 collisions), Otherirrproper driving(priwte party collisions) (15 collisKJns}, ard DUI (9 collisions)
Our top injury prirmry collisX>n factor is: Stop light violations, with 6 injury collisvns ard 13 injured, followed by speed w:ilations with 7 injtty collisX>ns ard 8 gtjured.

Our collisKJn calls fur servi:e have dropped 38.3% sire 2023 The nurrber ofinjtred cti:2em was 53, MOCh was an increase of 14.1% sire 2023 Our iriersecfuns which have the highest rate ofcollisX>ns are, in order: SR-273 & North Street, SR-273 & Marx Way, ard SR-273 & PmnAvewe.
(Using the trost recent 2022 aggregated data):

51.5% of ilJiury collisions in the city occurred on SR-273 3% of injury collisKJns involved pedestrians
15% ofiajury collisions involved bi:yclists
9% of injury collisions involved rmtorcyclists

27.3% of ow iajury collisi>rn involved irrpaired drivers The day of the week with the highest nurrber of il1jury collisions was Thursday between 1200-2100 murs. The secooo day with the highest n.mi>er of collisiins was Saturday between 0600-1500 001.D"S.

In sunmuy, The City of Amerson is experieocing an elev.ited traffi;: sarety problem on~ roads aoo highways in our jurisdictX>ll We have asked fur fuoos to assist seooing ofli:ers to radar/lidar Ira~ to help catch speeders, collisi.m investigati.m to assist in their expertise after colhsnns happen, ard safety conreren:es ard irrpainrent classes to help educate our offi;:ers ard give ~ tools to corrbat this critical 1mtter. We want to keep these overtim: activities in place as often as possil>le to keep our ofli:ers focused on roadway sarety. The City of Amerson Poli;e Departrrent has devebped a reputation in Shasta County as being very pro-active on criire ard traffi;: safety, aoo this OTS STEP grant is a significant part in coroibuting to that irrege.

Proposed Solution:

We are prol.d to share we parti:.,ate with the City of Amerson, Redding Police. Shasta County Sheriffs Departrrent, CHP, Red Bluff Pok:e, ard MADD on our trafli: efforts. We part.:.,ate ard assist themard they in tum assist us with DUI checkpoints, traffi;:
enfurceni:nt, saturafun patrols, ard p~ efforts. Wah this partnerslqi we can ~ly our efforts ard effectiveness.

Sioce October 2020, the City of Amerson limed a full..tim: Trafli: Ofli:er to help corrbat these trends ard to help coordmte the OTS grants ard hopefuDy now the Canmbis grant. We are prol.d ard grateful to have receMXI past OTS aoo Canmbis grants fur several years in a row. The OTS grants have focused on training. sanrafun patrols. and check pom. We are hopeful to begin receiving Carmbis grant finis to asstit us with proviling edocafun, deterreo:e, ard invest.igltive equiprrent. Despite these grams ard the efforts of the city to prormte safety, our city is seeing irrreasing aoo sustained trafli: safety proble1TS as olitined in the raw Ill.llTbers in this problem staterrcnt. We know having rrore oflx:ers out in view ard detecting DUI and drugged drivers is an integral part of solvilg this issue oftrafli: safety in our colllTllllity. We are roping that in coajuocfun with the additional murs worked, that we will be able to focus on edi.x:afun, deterren:e, ard investigative abilities through the acquisition ofrmdem techoobgy ard equipment.

We are requesting finis fur equiprrcnt related to the following high level view of the ltited categories- • DUI checkpoints- reflective safety vests, flashligllts with safety cores, vehicle pl.D"Suit preventiin equiprrent. • Traffi;: collison ilvestigations- CollisKJn reconstrucfun software fur our current Untmmed Arial System (Drore) fleet, Laser scanning devi:e for coDision reconstrucfun, specialized COl11ll1er for processing data obtained from the collision reconstruction platform;.
• E.di.x:ation ard enforcement- Sile by side vehicle fur access~ the over 440 acres of parks and rural areas, creating comrunity engagerrcnt at edi.x:afun opportlllities, ard assisting in linited access areas of suspect DUI collisX>ns. • Storage container- for protecfun of the above li5ted equiprrent

Anderson Police Department 2025

ANDERSON POLICE DEPARTMENT
• Mobile Ircilent Cornmrd vehK:le- fur use at DUI check points, colli<lx:m scenes, edocatiorol evenls, cornrunity ~genrtts. am traffic reeled i:oci:lents requiring long tim: cornritm:nts of resources.

We believe thi5 equiplll3 will h::lp corrbat th:: upward trerxl we are expemr~ and h::lp soow our ofocers and cornrunity we are serous about th:: dangers of Dill and traffic safety as well as our cornritm:nt to edocati>n am preventi>n Statistical Data/Report(s)

6. Performance Measures/Scope of Work
Anderson Police Department 2025

ANDERSON POLICE DEPARTMENT
Detail EACH Project activity/item below, which will serve as your goals and objectives for the Project. For EACH goal/objective, include estimated timelines (ex: monthly, quarterly), quantitative measurements (ex: reduction of DUVDUID by%), and justification deta1hng how 1t will enhance/support the Project. NOTE: These goals and objectives must be consistent with the Budget. PLEASE DO NOT COPY AND PASTE TABLES IN FIELD - TYPE INFORMATION IN FIELD.

GOAL:
1) Purclme tre fulh~ equ•nn:nl inmxliately 14>0n grant approval:
a) DUI CHECKPOINT EQUIPMENT
i) 45- Reflective traf!i; safety vests
ii) 30- Flashlighls with red safety cones
iii) 22- Pursuit prevenk>n' inlerventi::m devices
b) GRANT EQUIPMENT STORAGE
i) 40' Storage container
c) EDUCATION, UMJlID ARFA ACCESS ENFORCEMENT, I.ONG COMMilMENT SCENE MANAGEMENT, AND COMMUNllY ENGAGEMENT
i) Side by side utility vehicle with tranlportation trailer ii) Iocident coll1Tllld vehicle
d) 1RAFFIC COWSION INVFSTIGATION EQUIPMENT
i) sUAS rmpping am diagrarring software
ii) Forensic laser rmpping am diagrairing equiprrent
iii) Data processing am analysis corrputer
TIMELINFS:

Ql1. Purclme au listed equiprrent

2. Receive:

1. All DUI ch!ckpoinl equiprreJt

2. Equipnm storage equiprrent

3. Utility vehicle

4. sUAS rmpping am diagratring software

3. Deployequiprrent as received
Q2-

1. Receive:

1. locilent coll1Tllld vehicJe

2. Forensi:: laser rmpping am diawarring equipm:m

3. I>.lta processing am analysis corrputer

2. Deployequipm:nt as received
Q3/Q4-
1 . Receive any rermining equiprrent

2. Deploy rermining equipm:nt
PERR>RMANCE ME'IRICS:

Anderson Police Daparbnant 2025

ANDERSON POLICE DEPARTMENT
While perfunmn:e rrctn:s for equiprrcnt is a difocult task to put into tangble rretn:s. We as an agm;y have coTTJTDlted to striving for a 100% deployrrcnt rate fur an checkpoint related equiptrert and a irore realistic goal of80% rrininun deployrrcnt rate for ediration, invest~tive, ani coDisim related equip1rent.

Proportional to deployed personnel ani reeds; sarety equiprrent, pUISuit intervenoon equiprreit, ani the irl::ideri col111llM vehicle wow:! be ltilized for an three of the Amerson Police Departrrcnt checkpoints ani available to allied ageocies for their nurrerous collaborative checkpoirvs ani san.ratim evenls.

Between 2023 ani 2024 there were ahmst 500 trafli: collisi>rn. Oftoose 500 trafli: coOisiorn, 59 were ir!illlY or fatal It is anticipated that the investig;ltive equipm:nt in wtx>le or part woukl be deployed to at least 50% of the irl::idert and with a goal of an 800/o deployrrcat rate.

There are an additional projected 60 anrrual conmDlity e~gerrent everts and opportunities wrere conmDlity edocation interacoons will be available and have significant ll11Jacts of deterreoce of~ while under the influence ofintoxi.:ating sli>staoces. It is the illent of the Amerson Pooce Departrrent that all equipm:rt purchased uooer thi<; grant will be ~ as fi'equ:mtly as possible for comrunity edtx:aoon ani deterring DUI/ DUID.

With this level of con:nitrrent, we are oopeful to provide edocaoon, deterreoce, and enforcerrent levels to ltllke a ooticeable redoction in DUI/ DUID related iociderts. Ultirmtely providing a safer connmity for our resideJts and visitors.

EXAMPLE ONLY
16 DUI Saturation Patrols (Q1 = 4, Q2 = 4, Q3 = 4, Q4 = 4): Aim to reduce DUI/DUID deaths by 10%, which will improve roadway safety in the community.
2 DUI Checkpoints (02 = 1, Q4 = 1 ): Aim to reduce DUI/DUID by 15%, which will reduce the number of impaired drivers in the community.
4 Message Boards for DUI Checkpoints and Educational Messaging (Q1 = Purchase, Q2 = Receive, Q2-04 = Use to complete DUI Checkpoints and education): We will utilize the Message Boards to notify the public of an approaching DUI Checkpoint. In between DUI Checkpoints, we will display educational messaging against driving under the influence.
4 Educational Presentations at local high schools (Q1 = 1, Q2 = 1, Q3 = 1, Q4 = 1): Aim to contact at least 100 students each quarter to increase awareness of driving under the influence. The presentations will educate students on the implications of driving impaired.

7. Project Performance Evaluation
Anderson Police Department 2025

ANDERSON POLICE DEPARTMENT
Provide the method of evaluation to show Project effectiveness and positive impact(s) on the community. These strategies shall include captured quantitative/qualitative data and a communication plan to share Project results with both internal and external stakeholders. PLEASE DO NOT COPY AND PASTE TABLES IN FIELD - TYPE INFORMATION IN FIELD.

The broader picture of the results of this grant opportunity and equipment that it would provide to our community will be much larger than providing formal numbers and statistics. It will provide confidence and modem equipment that can be used by first responders in the Anderson Community educate, protect, engage, and deter persons from driving while intoxicated. The envisioned program and equipment will create the ability to respond locally and anywhere in the Northern California region to provide advanced safety, intelligence, documentation, and data for the response and recovery to a traffic related incident or any other emergency, natural or manmade. This ts a capability that is not currently available for our agency and community. If awarded, this project will provide community benefits reaching farther than mere numbers and symbols on a data sheet, it will result in thousands of lives positively impacted on a daily basis.

As a physical data tracking element of the use and benefits to the community. As stated in previous categories, awarded equipment (depending on application need) will be used at all relevant incidents, events, or planned activities.

8. Program Sustainability
Anderson Police Department 2025

ANDERSON POLICE DEPARTMENT
Describe the plan for reducing reliance on Mure grant funding. Include a summary and timeframe to continue efforts when grant funds are either not available or significanUy reduced. PLEASE DO NOT COPY AND PASTE TABLES IN FIELD - TYPE INFORMATION IN FIELD.

Grant reliance and cost management is a key element and benefit of this grant proposal. All physical equipment requested has been selected with a significantly long lifespan in mind. All equipment requested has a minimum life expectancy of five years or more. Software and data systems that are being requested have a similar minimum lifespan built in with five year programing requests. All items requested will help the Anderson Police Department and greater Anderson community progress into a safer and more collaborative future.

9. Administrative Support
Anderson Police Deparbnent 2025

ANDERSON POLICE DEPARTMENT
Describe the administrative support, including the Organization/Agency's grant experience, personnel, and physical resources needed to successfully implement the Project. PLEASE DO NOT COPY AND PASTE TABLES IN FIELD· TYPE INFORMATION IN FIELD.

Our city administration is in full support of grant opportunities like this, especially ones with a primary goal of community collaboration, public safety, and fiscal responsibility. Similarly, the Anderson Police Department and current administration has a long standing reputation of fiscal responsibillty, creativity, community engagement, and self reliance. The grant manager has managed private, local, state, and federal grants of various sizes for over 10 years.

The grant manager has a wealth of knowledge on putting together the operations, tracking statistics, and reporting quarterly as required. The Anderson Police Department has consistently submitted all quarterly reports, invoices, and documents within or before the expected time frames.

10. Other Grant Programs
Impaired Driving Enforcement Funding
Anderson Police Department 2025

ANDERSON POLICE DEPARTMENT
Has your Organization/Agency previously received grant funding for impaired driving enforcement? ~Yes
No
If yes, detail the outcome. PLEASE DO NOT COPY AND PASTE TABLES IN FIELD - TYPE INFORMATION IN FIELD.

For the grant writer's tenure (16 years) with the Anderson Police Department, the agency has applied for and received the California OTS grant for the vast majority of the years. Most recently, the agency has received the OTS grant for the past five years, allowing the deployment of numerous officers for saturation patrols and DUI checkpoints, as well as receiving numerous hours of formal and informal training, and DUI and safety related equipment. Additionally, in the 2023/2024 grant period, the agency submitted for and received this grant. That opportunity allowed us to further deploy additional saturation patrols and enforcement opportunities.

Other Grant Programs
Has or will your Organization/Agency submit a proposal to another grant program for this Proiect (ex: funds for the same components as this Project, or for similar/related components that will be completed during the same time period as this Project)?
Yes
~No
If yes, detail the granting Organization/Agency. In addition, clearly distinguish which tasks would be funded by the CTFGP and which tasks would be funded by another Organization/Agency. PLEASE DO NOT COPY AND PASTE TABLES !N FIELD -TYPE INFORMATION IN FJELD.

Are any personnel dedicated to this Project funded by other sources/grants? Yes
~No
If yes, detail which source/grant. PLEASE DO NOT COPY AND PASTE TABLES IN FIELD - TYPE INFORMATION IN FIELD.

11. Terms and Conditions
Anderson Police Department 2025

ANDERSON POLICE DEPARTMENT
By submitting your Grant Application, you agree to the following Terms and Conditions:

I certify, under penalty of perjury, that the information I entered in this Grant Application is true and complete to the best of my knowledge. I further understand that any false. incomplete, or incorrect statements may result in my disqualification from the grant process or dismissal from receiving grants funded by the California Highway Patrol (CHP), Cannabis Tax Fund Grant Program. I authorize the California Highway Patrol, Cannabis Grants Unit (CGU), to investigate referenced documents or other documents submitted to the program to check the accuracy of the information provided.

I agree with the Request for Application, the above Terms and Conditions, and the California Code of Regulations, Title 13, Division 2, Chapter 13, Sections 1890.00 through 1890.27. 18l 1Agree
When using the GMS (AmpliFund), I authorize the stale to take my requested action by an electronic means and authorize the state to accept the combination of my User ID and password in lieu of my written signature. ~ I Agree
My password is unique to me and is to remain confidential. I will not allow other individuals to use my User ID and password to access the GMS (AmpliFund).
18l 1Agree
It is my responsibility to maintain the confidentiality of GMS (AmpliFund) information. l8l I Agree
Once I submit the Grant Application, I am unable to add, edit, or delete any Grant Application information. l8l I Agree
Confidentiality Notice: All documents submitted as a part of the Cannabis Tax Fund Grant Program Grant Application are public documents and may be subject to a request pursuant to the California Public Records Act. The CHP, CGU, cannot ensure the confidentiality of any information submitted in or with this Grant Application (Gov. Code,§ 6250 et seq.). ~ I Agree
Generated Income Disclaimer: There will be no program income generated from this grant. Nothing in this Grant Application shall be interpreted as a requirement, formal or informal, that a particular law enforcement officer issue a specified or predetermined number of citations, in pursuance of the goals and objectives. Although special emphasis will be placed upon violations specific to this Grant Application, appropriate enforcement action will be taken for all observed violations.
18) IAgree
Financial Information System for California Government Agency Taxpayer ID (Fl$Cal Form) A Fl$Cal Form is required for reimbursement. If the Grant Applicant does not have a completed Fl$Cal Form at final Grant Application submission time, the Grant Applicant may submit the completed Fl$Cal Form via email to CGU prior to execution of the Grant Agreement. NOTE: The "Remit-To Address" on the Fl$Cal Form MUST match the "Official Address to Receive Reimbursement Payment" you entered in Form #1. Organization/Agency Representative. This address shall be the official address on file with Fl$Cal and the State Controller's Office (SCO) to receive warrants (Reimbursement Request Payments). Forms are located on the Cannabis Tax Fund Grant Program's website at https://www.chp.ca.gov/programs-services/programs/cannabis-tax-fund-grant-program. 18:J IAgree
Fl$Cal Form
City Council or County Resolution
A county, city, district. or other public body shall provide a copy of a resolution. order, motion, or ordinance of local governing body, which by law has the authority to enter into an agreement authorizing execution of a Grant Agreement. If the Grant Applicant does not have a signed resolution at final Grant Application submission time, the Grant Applicant may submit a signed resolution via email to CGU prior to execution of the Grant Agreement. NOTE: The resolution MUST expliciUy state the Organization/Agency has delegated authority to enter into a Grant Agreement for the requested amount.
~ IAgree

Anderson Police Department 2025

ANDERSON POLICE DEPARTMENT

Anderson Police Department 2025
ANDERSON POLICE DEPARlMENT
Budget
Proposed Budget Summary
Expense Budget
Equipment

DATA PROCESSING COMPUTER
DRONE 30 MAPPING SOFTWARE

DUI CHECKPOINT/ INCIDENT COMMAND VEHICLE

EQUIPMENT STORAGE CONTAINER

FOUR PASSENGER UTV WITH TRAILER

LASER SCANNER
Subtotal
Other Direct Costs
Revenue Budget

FLASHLIGHTS WITH RED SAFETY CONES

PURSUIT PREVENTION/ INTERVENTION

REFLECTIVE TRAFFIC SAFETY VESTS
Subtotal
Total Proposed Cost
Grant Funded
$5,400.00
$6,000.00
$131,400.00
$8,000.00
$30,000.00
$76,000.00
$256,800.00
$7,400.00
$9,500.00
$2,800.00
$19,700.00
$276,500.00
Grant Funded
Grant Funding
Award Requested
Subtotal
Total Proposed Revenue
Proposed Budget Detail
See attached spreadsheet.

Proposed Budget Narrative
Equipment
$276,500.00
$276,500.00
$276,500.00
Total Budgeted
$5,400.00
$6,000.00
$131 ,400.00
$8,000.00
$30,000.00
$76,000.00
$256,800.00
$7,400.00
$9,500.00
$2,800.00
$19,700.00
$276,500.00
Total Budgeted
$276,500.00
$276,500.00
$276,500.00
Costs may include non-expendable, tangible, personal property having a normal useful life of more than one year,

Anderson Police Department 2025

ANDERSON POLICE DEPARTMENT
and an acquisition cost of at least $5,000 (ex: four identical assets, which cost $1 ,250 each, for a total of $5,000, are not considered an equipment purchase). Equipment shall be directly related and necessary to complete CTFGP grant-funded activities included in the Project. Equipment should be purchased at the beginning of the Project Performance Period to ensure it is utilized when completing corresponding Project activities. If requesting equipment, the Project shaN contain a correlating CTFGP grant-funded Project activity (ex: Message Board for DUI Checkpoints). To be eligible for reimbursement, equipment must be purchased and received within the Project Performance Period. Itemize separate Budget line items for each Equipment item. For EACH Budget line item, the narrative shall include the below: • Description of equipment item * Quantity• Unit cost and total cost EXAMPLE DUVDUID Trailer-$10,000 Note: If requesting a vehicle, the requestor shall only request to outfit the vehicle with the standard equipment similar to the rest of the vehicle fleet DRONE 3D MAPPING SOFTWARE
COLLISK)N SCENE MAPPING SOFlWARE FOR DRONE AND LASER SCAN DATA QlY 1-$6,000 ONE TME PURCHASE (NO ANNUAL CONTRAcn TOTAL- $6,000

DATA PROCESSING COMPUTER
UAS/ LASER SCAN DATA PROCESSING COMPUTER QlY-1 TOTAL COST $5,400

LASER SCANNER
COLLISION SCENE LASER MAPPING AND DIAGRAMING DEVICE WITH ATTACHMENTS. QlY 1-TOTAL COST- $76,000

EQUIPMENT STORAGE CONTAINER
40' LONG STORAGE CONTAINER FOR EQUIPMENT STORAGE QTY- 1 TOTAL COST-$8,000

FOUR PASSENGER UTV WITH TRAILER
POLARIS/ KUBOTA/ KIOTI BRAND UTV WITH TRAR..ER TO TRANSPORT THE VEHICLE (UPFIT COVERED BY AGENCY) QTY 1- $30,000 TOTAL COST- $30,000

DUI CHECKPOINT/ INCIDENT COMMAND VEHICLE
DUI CHECKPOINT AND INCIDENT COMMAND VEHICLE (AGENCY WILL COVER UPFIT) QlY- 1 TOTAL COST- $131,400
Other Direct Costs
Costs may include operational costs. Other Direct Costs shall be directly related and necessary to complete CTFGP grant-funded activities included in the Project. Other Direct Costs should be purchased at the beginning of the Project Performance Period to ensure they are utilized when completing corresponding Project activities. To be eligible for reimbursement, Other Direct Costs must be purchased and received within the Project Performance Period. Itemize separate Budget line items for each Other Direct Costs item. For EACH Budget line item, the narrative shall include: • Name/description of Other Direct Costs • Quantity• Unit cost and total cost EXAMPLE Message Board = $20,000 $4,000 each / 4 = $20,000 Wrap/Decals for DUVDUIO Trailer= $275 Decals = $200 / Installation= $75 Cones= $170 $70 each / 10 = $170

FLASHLIGHTS WITH RED SAFETY CONES
LED rechargeable flashlight with red safety cone Qty 30-$250.00ea $7,000 total

PURSUIT PREVENTION/ INTERVENTION
STOPSTICK BRAND PURSUIT PREVENIDN AND INTERVENTION EQUIPMENT QlY-16 STOPSTICKS ($519ea) & 6 HANDHLED PIRANHA ($41 ea) TOTAL COST- $9,500

REFLECTIVE TRAFFIC SAFETY VESTS
Anderson Police Department 2025

ANDERSON POLICE DEPARTMENT
REFLECTIVE TRAFFIC SAFETY VESTS QTY- 40 ($69ea) TOTAL COST- $2,800

RESOLUTION NO. 25-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANDERSON

SUPPORTING THE ANDERSON POLICE DEPARTMETNS APPLICATION FOR FUNDING WITH

THE CALIFORNIA HIGHWAY PATROL - CANNABIS TAX FUND GRANT PROGRAM WHEREAS, The Anderson Police Department desires to undertake a certain project designated as CHP Cannabis Tax Fund Grant Program (CTFGP) to be funded in part from funds made available through the CHP Cannabis Tax Fund Grant Program (CTFGP) administered by the CHP Cannabis Tax Fund Grant Program (CTFGP) (hereafter referred to as CTFGP); and WHEREAS, the purpose of the grant is to comply with the passage of Proposition 64, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA), and provide funding for law enforcement to procure equipment, training, and staffing reimbursement; and WHEREAS, the purpose of the grant funding must be allocated toward driving under the influence prevention, investigation, enforcement, and education efforts by the police department; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Anderson hereby supports the Police Department applying for and using these grant funds in 2025, for

1. Equipment Acquisition: Purchase of:
o Personal reflective safety vests
o Flashlights with safety cones
o Laser collision scene mapping device
o Pursuit prevention/ intervention devices
o Storage container
o Utility Vehicle (UTV)
o Mobile incident command vehicle
o sUAS (drone) 3D collision scene mapping program
o sUAS/ Laser mapping data processing computer
Estimated cost: $276,500
PASSED AND ADOPTED by the City Council of the City of Anderson this 18th day of February by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Susie Baugh, Mayor
ATTEST:

Christy White, City Clerk

AGENDA ITEM
I February 18, 2025, City Council Meeting I
ted By:
elen, Public Works Director
To:

Through:

Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
From: Adam Whelen, Public Works Director
Date: February 18, 2025

I SUBJECT
Draft Wastewater Rate Study Update

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

1. Receive a Staff Report;

2. Receive a report from the City's consultant, Lechowicz + Tseng Municipal Consultants.

3. Provide direction to staff to implement the consultant's recommendations or provide alternative direction.
!FISCAL IMPACT
Increased rate-payer revenue will fund the cost of service and maintain a reserve fund for emergencies and unforeseen circumstances.

I DISCUSSION and BACKGROUND
In 1998 the City conducted its first sewer rate study to assess the sewer user fee rates after operating losses in the Wastewater Enterprise Fund. Since 1998, the City has proposed sewer user rate increases of a modest nature by increasing monthly flat rate charges and additional charges based on each 100 cu. foot of water consumed. These flat rate charges range between 2% to 3% per cycle. In 2014, this ideology shifted from 3% to 5% for 2014 and 2015. Over the last 27 years, the City has only proposed a rate increase five times.

ITEM 8.9 PAGE1 2/18/2025
Consumers of the City's sewer service are charged user fees to maintain our sewer system.

Each year, staff analyzes the revenues and expenditures in the Wastewater Enterprise Fund, comparing the service's costs with user revenues. To keep up with inflationary costs, the City typically imposes small increases in user fees each year. The last rate increase was done in 2014, with an increase of 5% for 2014 and 2015.

For the fiscal year 2015, the wastewater enterprise fund started with a reserve balance of $7,203,170, and in 2015, there was a decrease in reserves of $1,123,273. In fiscal year 2020, there was a decrease in reserves of $542,991; again, in the fiscal year 2022, there was a decrease in reserves of $170,071. In the fiscal year 2024, there was a decrease in reserves of $2,471,357. Expenditures continue to outpace revenues in the wastewater fund, leaving an approximate reserve balance of $4,393,760 at the beginning of the fiscal year 2024/2025.

Much like the General Fund reserve, having a healthy reserve in the wastewater enterprise fund is essential. Traditionally, the reserve is used for planned and unexpected sewer infrastructure repairs. The sewer system comprises a wastewater treatment plant, over SO miles of sewer lines, and five municipal lift stations. An unexpected repair on any of the many sewer system components could quickly deplete the reserves in the wastewater enterprise fund.

The City Wastewater Department faces the significant challenge of repamng aging infrastructure that often breaks down, leading to sewer backups and failures. However, constantly responding to such issues leaves little time to focus on preventing future occurrences that would extend the lifespan of the sewer system.

There are several key reasons why operating costs have quickly outpaced the rate increases implemented in the past. Utility rates, unfunded state mandates, and sewer lines that are past their useful life are all significant factors related to rates.

In the past, the City has upgraded the pumps and motors to make them as energy-efficient as possible, but increased energy costs have offset the decrease in energy usage. The wastewater treatment plant has not received significant upgrades since 1989. Additionally, the majority of the needed projects identified in the 2007 Master Sewer Plan for the collection system have not been completed.

Every year, there are new mandates for increased testing and reporting. The number of compounds tested for and the frequency of tests have continued to increase. Moving forward, the previously stated costs will continue to increase.

As stated, small rate increases have occurred regularly to keep up with rising costs. These rate increases were generally determined by City staff reviewing revenue vs. expenditures and making an educated approximation about future expenses.

The City of Anderson strives to maintain our affordable sewer rates. Our sewer service remains a tremendous value for our residents. A rate increase is needed to maintain a sustainable sewer utility for our citizens.

ITEM 8.9 PAGE2 2/18/2025

I ATTACHMENT

1. Presentation Slides - Draft Sewer Rate Study 2025 (February 2025), Lechowicz + Tseng Municipal Consultants
ITEM 8.9 PAGE3 2/18/2025

2 ■ Wastewater Fund is an Enterprise Fund
... Self supported from rates and charges
• Separate from General Fund
r- No tax revenue received
■ Last rate increase was in October 2015
• Last comprehensive rate study was in 2001
• Since 2011, the City has only implemented inflationary rate increases 5 times ■ Wastewater system needs significant infrastructure improvements • Treatment plant still has capacity but has not been upgraded since the 1980's $17. 7M in capital projects planned for the next 5 years Rate study covers 5-year period (FY2026 through FY2030) • New rates effective July 1, 2025 through July 1, 2029 • Sewer is billed annually on the property tax roll
1111
3 ■ Adopted by California voters in 1996 and added Articles 13C and 13D t the California Constitution
■ Governs how property-related charges are adopted
• Rates must be based on the reasonable cost of service . ■ Rates must proportionally recover costs based on how customers take service • Revenues from rates can only be used for intended purpose • Covers rates over a 5-year period
■ Procedural Requirements:
• Conduct a rate study
• Mail a notice to property owners
• Hold a public hearing a minimum of 45 days after the notice is mailed ■ Rates cannot be adopted if more than 50% of ratepayers submit written protests
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4 • Fund the cost of providing service:

Operating & maintenance costs
Debt service obligations
• Debt service coverage ratio
• Net revenues = 1.25 times total annual debt service payments ■ Capital improvement projects
■ For maintenance & operations only
• Not for upgrades due to new development
r.- Maintain reserve funds for emergencies
• Recommended target = 25% of O&M expenses + annual debt service • Eliminate sewer operating deficit
■ Retain positive credit rating to obtain grants, loan, and other debt financing
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System includes wastewater treatment, collection, and disposal facilities
• Treatment plant was originally built in 1974 and upgraded in the 1980's to a modern Class IV, 2 million-gallon-per-day (MGD) tertiary wastewater treatment plant
Collection system includes 50 miles of sewer mains, 747 manholes, & 5 pump stations that convey raw sewage to the plant
• Treated outflow is discharged to the Sacramento River • Sewer customers= 3,400, Annual Flow= 307,500 ccf
1,.,,,,--
5 6
Effective Date
Base Rate Per Month
Additional Flow Charge (per ccf) [2]
1 - Customers are billed annually on the property tax roll Oct 1, 2015
$22.44
$1.38
2 - Per one hundred cubic feet (ccf) consumed during the winter months (Oct through March). 1 ccf = 748 gallons
BASE RATE:
• All customers are charged a fixed base
charge
• Recovers fixed expenses, ex. staffing,
customer service, system maintenance,
and repairs
• Generates 76% of total sewer rate
revenues
ADDITIONAL FLOW CHARGE:
i:. Alf customers are billed for average
consumption during the winter months
(Oct - Mar)
• Recovers expenses that can vary, ex.
utilities and chemicals
• Generates 26% of total sewer rate
revenues
1111
7 Monthly Bill
Base Rate
Additional Flow Charge (5 ccf)
Total Monthly Bill
Annual Bill
Base Rate
Additional Flow Charge (60 ccf)
Total Monthly Bill
$22.44
S.6.90
$29.34
$269.28
S_82.80
$352.08
Average single family residential flow = 5 ccf /month
1111
00 City of Weed
Anderson (Current)
Burney Water District
City of Red Bluff
CSA 17 Cottonwood
City of Dunsmuir
CSA 13 Alpine
Meadows
City of Yreka
City of Redding
City of Mt. Shasta
City of Shasta Lake
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WASTEWATER FUND FINANCIAL OVERVIEW
• Wastewater Cash Reserves
• As of July 1, 2024 = $1,073,520
• Current Reserve Fund Target - 1.5% of annual O&M
• Proposed Reserve Fund Target - 25% of annual O&M + annual debt service Actual Actual Actual Actual Actual Budget
2019/20 2020/21 2021/22 2022/23 2023/24 2024/25

REVENUES
Sewer User Fees $1,729,673 $1,802,446 $1,735,936 $1,777,714 $1,754,680 $1,778,696 Interest Earnings $44,680 $11,580 $11,580 $40,000 $12,000 $12,000 Other Revenue $7,076 $5,134 $5,134 $6,500 $6,000 $6,000 Sewer Transfers In [1] SQ S6771937 S677.937 s1041295 S42.s21 Sto9,318 Total Revenues $1,781,429 $2,497,097 $2,430,587 $1,928,510 $1,815,501 $1,906,014

EXPENSES
Operating Expenses $2,738,451 $3,542,304 $1,889,001 $1,837,198 $2,271,549 $2,005,896 Debt Service $227,865 $225,314 $228,001 $225,063 $227,501 $229,202 Ca~ital Projects $_Q $_Q SQ SQ SQ SQ
Total Expenses $2,966,315 $3,767,618 $2,117,002 $2,062,261 $2,499,050 $2,235,098 NET TOTAL REVENUES ($1,184,886) ($1,270,521) $313,586 {$133,751) ($683,550) {$329,084) 1 - For 2022/23, 2023/24 and 2024/25, Transfers In are assumed to be assessment revenues to pay for debt service. 9 1111
10 $3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
Sewer Fund - Cash Balance
2015 2016 2017 2018 2019 2020 2021 2022, 2023 2024
The last sewer rate increase was in 2015.

Since then, cash reserves have decreased by 56% □
11 Wastewater Fund has 3 outstanding debt obligations:
2001 USDA Revenue Bonds for $2,076,000
• 2001 Riverside COPs for $232,570
1• 2007 CSCDA Revenue Bonds for $1.6M
• Total annual debt service payments= $228,000
·• Coverage ratio is a financial measure of an agency's ability to repay outstanding debt
• Ratio requ ires that annual water net revenues (gross revenues less O&M expenses) must be at least 1.25 times the combined annual debt service payments on all parity obligations ,
Calendar Year 2021 2022 2023 2024
Debt Service Coverage Ratio -0.53 -0.74 -2.66 -3.81
• Failure to meet the coverage ratio on an annual basis is considered to be technical default
• Could lead to .a rating downgrade and may impact the City's ability to obtain additional debt funding in the future [ill
PROJECTED TOTAL Annual
Item # I Project 202S/26 ' 2026/27 I 2027/28 I 2028/29 I 2029/30 COST Average

WASTEWATER TREATMENT PLANT
1 Updated master sewer plan $1,500,000 - - . - $1,500,000 2 Mechanical screen at headworks $85,000 + t-
$85,000 $85,000 - $255,000
3 Upsized influent pumps $50,000 $50,000 $50,000 - - $150,000 4 Emergency influent pump - - - $200,000 $200,000
5 40 HP aerators $100,000 $100,000 $100,000 $100,000 $400,000 6 Recoat ballast pond - $140,000 - - $140,000
7 Replace filter pumps/motors $100,000 - - - $100,000
8 Add fourth pressure filter - - - - $2,750,000 $2,750,000 9 Rehab contact chamber - - - - $1,250,000 $1,250,000
10 Electrical upgrade through WWT $500,000 $500,000 $500,000 $500,000 $500,000 $2,500,000 11 Upgrade main facility/SCADA $170,000 $170,000 $170,000 $170,000 $170,000 $850,000 12 Rehab and inspect outfall at river sso,ooo sso,ooo sso,ooo sso,ooo sso,ooo s2so,ooo Total Treament Plant Projects $2,470,000 $955,000 $1,095,000 $905,000 $4,920,000 s10,34s,ooo I sz,o&9,ooo

COLLECTION SYSTEM
I
1 !inflow & Infiltration {l&I) Projects s100,ooo s 100,ooo s100,ooo s100,ooo s100,ooo II
S3,soo,ooo
Total Collection System Projects $700,000 $700,000 $700,000 $700,000 $700,000 $3,soo,ooo I $700,000

VEHICLE REPLACEMENTS
1 Replacement Vac-Truck - - - - $750,000 $750,000
2 Camera Van - - - $100,000 $100,000 I
3 Vehicle replacement - - - $65,000 $65,000 $130,000
4 Front Loader (2) sso.ooo - - - - sso.ooo - - - - Total Vehicle Replacements $80,000 $0 $0 $65,000 $915,000 $1,060,000 $212,000 TOTAL PROJECTS $3,250,000 $1,655,000 $1,795,000 $1,670,000 $6,535,000 $14,905,000 $2,981,000 685,470 $3,537,094
12 Total 5-Year CIP = $17,685,470 till
--
Total Five-Vear CIP. Annual Average CIP
Scenario 1: $17.7M Total CIP (Full CIP) $17.7M $3.SM
Scenario 2: $11M Total CIP $11.0M $2.2M
Scenario 3: $9M Total CIP $9.0M $1.8M
STUDY ASSUMPTIONS:
• Assumes all capital projects will be cash-funded. No grant or loan funding included. 13 • Debt service coverage ratio is met in 2024/25
• Growth is estimated at 0.5% each year
• No Wastewater Capital Fees are included as revenues
• Cost Escalators: 6.0% for Salaries & Benefits, 7.0% for Utilities, 5.0% for Chlorine, &

3.0% for all other expenses
• Solar Project is not included
1111
Projected Wastewater Operating Expenses, Debt Service & Capital Projects $9,000,000 -.-----~..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::-..::::---=..-- - Operating Expenses - Capital Projects {Full CIP)
$8,000,000 - Scenario 1: $17.7M Total CIP (Full CIP)
- Scenario 3: $9M Total CIP
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000 -+,-cc_,
$~000,000 Current Sewer Revenues= $1.9M
$0 --------------
14 2024/25
Current
2025/26 2026/27
Debt Service
-Current Sewer Revenues
- scenario 2: $11M Total CIP
2027/28 2028/29 2029/30
tm
Current Projected
2024/25 2025/26 I 2026/21 1 2021 /'lB 1 20'1B/29 I 2029/30 Scenario 1: $17.7M Total CIP ($3.SM Annual Average) - - ~ - - - - -
Rate Increase % 235.0% 4.0% 4.0% 4.0% 4.0%
Average Single Family Residential Monthly Bill (5 cd) $29.34 $98.49 $102.45 $106.54 $110.81 $115.24 Debt Service Coverage Ratio (l.25x) -1.14 15.63 16.27 16.94 17.65 18.38 Scenario Z: $11M Total CIP ($2.2M Annual Average)
Rate Increase% 160.0% 6.0% 6.0% 4.0% 4.0%
Average Single Family Residential Monthly Bill (5 cd) $29.34 $76.44 $81.00 $85.86 $89.34 $92.86 Debt Service Coverage Ratio (1.25x) -1.14 9.78 10.55 11.41 11.86 12.33 Scenario 3: $9M Total CIP ($1.SM Annual Average) -- .__ - -- - - - - Rate Increase % 138.0% 6.0% 6.0% 6.0% 6.0%
Average Single Family Residential Monthly Bill (5 ccf) $29.34 $69.95 $74.17 $78.62 $83.33 $88.35 Debt Service Coverage Ratio (1.25x) -1.14 8.06 8.73 9.46 10.25 11.11 15 lll7il
$120
$100
$80
$60
$40
$20
$0
16 Scenario Comparison - Monthly Sewer Bill for
Average Single Family Residential Customer (5 ccf)
Scenario 1: $17.7M Total CIP (Full CIP)
Scenario 2: $11M Total CIP
■ Scenario 3: $9M Total CIP
Ill
Average Bill for Yreka & Redding
2025/26 2026/27 2027/28 2028/29 2029/30
~
City of Weed
Anderson (Current)
Burney Water District
City of Red Bluff
CSA 17 Cottonwood
City of Dunsmuir
CSA 13 Alpine Meadows
City of Yreka
Anderson
(Scenario 3: $9M)
City of Redding
City of Mt Shasta
~
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~ i 'V), ~
' - ' (=J
Anderson
(Scenario 2: $UM) ~~ I
City of Shasta Lake
Anderson
(Scenario 1: $17 .7M)
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18 --- --·-- -- - --

DATE ACTION
Feb 18, 2025
___ , I
Apr1,2025
Apr14,2025
Jun 3, 2025
Jul 1, 2025
Present initial findings to City Council; Receive input from Council and public
Present final recommendations to City Council; Council votes to proceed with Prop 218 process
Mail out Prop 218 Notices (50 days prior to hearing)
Prop 218 Hearing
First rate increase goes into effect. Future rate increases will be effective July 1 of each year through July 1, 2029
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