Anderson City Council
February 18, 2025

CITY COUNCIL AGENDA
February 18, 2025
REGULAR SESSION - 6:00 P.M.

CLOSED SESSION FOLLOWING

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 Agenda 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 !-YWW,c:i.andersoo1q1.1ws 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. 202S0.

City Council Meeting
February 18, 2025

1.0 ROLL CALL - COUNCIL:

REGULAR SESSION - 6;00 P,M,
Councilmember Simmons
Councilmember Gallagher
Councilmember Hale
Vice-Mayor Gallier
Mayor Baugh

2.0 INVOCATION - Vice Mayor Dan Gallier.

3.0 PLEDGE OF ALLEGIANCE - Councilmember Darin Hale.

4.0 STUDENT REPORTS - A representative from the teen center will give an update on current activities.

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 and on an item within the City's subject matter jurisdiction. The Brown Act does not permit any action or discussion on items not listed on the agenda. Are there any public comments?

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 4, 2025 and special meeting of February 13, 2025.

6.2 WARRANTS• Receive and file warrant 33979 to 34027 in the amount of $370,498.55; Receive and file ACH in the amount of $63,232.26; Receive and file ACH in the amount of$58,751.03; Receive and file warrant 34028 to 34097 in the amount of $197,273.36.

6.5 CITY MANAGER - Approve the changes to the Anderson City Council Procedures as discussed at the February 4, 2025 Council meeting.

6.6 FINANCE DIRECTOR - Adopt a Resolution establishing the City's Duplication of Benefits Policy for CDBG, CDBG-CV, CD BG-DR, & other Federal Funding.

END OF CONSENT CALENDAR
City Council Meeting
February 18, 2025
Page3

6.11 ITEMS (IF ANY) 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.

8.1 Any member of the public may request to address the Council on an item as it comes up for discussion. Please provide your name and limit your remarks to 3 minutes or less.

CITY COUNCIL

LETTER TO GOVERNMENT OFFICIALS PRIORITIZING ISSUING INFRASTRUCTURE GRANTS TO RURAL COMMUNITIES.

RECOMMENDED ACTION:

1. Discuss and provide direction to staff if we should send a letter to government officials prioritizing infrastructure funding for rural communities

2. Discuss what key topics should be outlined in this letter.

3. Discuss which government entities the letter should be addressed to.

FINANCE DIRECTOR

8.Sa 2024-2025 BUDGET UPDATE
RECOMMENDED ACTION:

No action is requested as this is informational only.

8.Sb 2023-2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT
RECOMMENDED ACTION;

1. Receive a presentation from the City's contracted auditor, Mark Hu of The Pun Group

2. Receive and file the annual financial report.

POLICE CHIEF

8.8 CALIFORNIA HIGHWAY PATROL-CANNABIS TAX FUND GRANT PROGRAM (CTFGP) RECOMMENDED ACTION:

Approve the requested resolution in support of the grant application and if funded in part or in whole, to accept the funding.

City Council Meeting
February 18, 2025
Page4

8.9 PUBLIC WORKS

DRAFT WASTEWATER RATE STUDY UPDATE
RECOMMENDED ACTION:

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

2. Provide direction to staff to implement the consultant's recommendations or provide alternative direction.

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

12.0 Public Comment on Closed Session ltem(s); Anyone in the audience who wants to address the City Council on a subject which is listed under the Closed Session agenda is now invited to come to the podium. Please provide your name and the subject you wish to discuss. Please limit your remarks to 3 minutes or less.

The City Council will convene to Closed Session.

CLOSED SESSION
C.S.1 CONFERENCE WITH LABOR NEGOTIATORS (54957.6)
* Agency designated representatives: City Manager Joey Forseth-Deshais * Employee organization: Teamsters
C.S.2 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (§ 54956.9) *Name of Case: City of Anderson v. Krumins, et al., Case No. 2023032 The City Council will reconvene to Open Session.

13.0 CLOSED SESSION ANNOUNCEMENT: The Mayor will announce the results of the Closed Session.

14.0 ADJOURN • The City Council will adjourn to March 4. 2025.

ANDERSON CITY COUNCIL MINUTES
Regular Meeting
February 4, 2025

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

ROLL CALL
Councilmembers present: Councilmember Simmons
Councilmember Gallagher
Councilmember Hale
Vice-Mayor Gallier
Mayor Baugh
DRAFT
Also present: City Manager Joey Forseth-Deshais, City Attorney Collin Bogener, Police Chief Oliver Collins, Public Works Director Adam Whelen and Finance Director Cindy Wheeler.

INVOCATION
Pastor Perry Peterson, Crossroads Church, gave the invocation.

PLEDGE OF ALLEGIANCE
Mayor Susie Baugh led the Pledge of Allegiance.

INTRODUCTIONS
Finance Director Cindy Wheeler introduced new Account Clerk Mackenzie Thieler.

PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
Jason Provence, Superintendent Cascade Union Elementary School District, spoke to Council regarding a Reading Pals Program.

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

Approved the minutes of the regular meeting of January 21, 2025.

ITEM 6.1 2/18/2025
City Council Meeting
February 18, 2025

Receive and filed warrant 33879 to 33943 in the amount of $721,030.99; Received and filed warrant 33944 to 33978 in the amount of $188,525.49.

Approve the proposed City of Anderson GASB 87 & GASB 96 Accounting Policies.

Received the Quarterly Treasurer's Report on City Investments.

Vote: AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Hale, Gallagher, Simmons, Gallier and Mayor Baugh.

None.

None.

None.

PUBLIC HEARINGS
ALL NOTICES WERE GIVEN ACCORDING TO THE LAW.

PUBLIC WORKS

WASTE WATER TREATMENT PLANT SOLAR PROJECT
Public Works Director Adam Whelen gave a staff report and answered questions from Council.
6:10 p.m. Public Hearing was opened
Melissa Hunt spoke regarding an agreement with sitelogiq signed in 2024.

Kristy Coughlin with sitelogiq spoke regarding the work she has done on the WWTP solar project and the agendized contract with Schneider Electric.

Jill Bennett spoke with concerns regarding the costs of the project. 6:20 p.m. Public Hearing was closed
A motion was made, seconded (Gallagher/Baugh) to authorize the City Manager to Execute an Energy Services Contract with an initial authorization of $30,000 for Due Diligence and Financing RFP services with Schneider Electric.

A second motion was made by Councilmember Hale to table the topic for further discussion, no second was received.

The vote for the first motion was as follows;
AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Gallagher, Baugh, Simmons, Hale and Gallier.

None.

None.

None.

City Council Meeting
February 18, 2025

REGULAR AGENDA

CITY MANAGER

AMENDING THE ANDERSON CITY COUNCIL PROCEDURES
City Manager Joey Forseth-Deshais gave a staff report and answered questions from Council. This was an informational item only, no action was taken.

Jill Bennett spoke regarding concerns with the changes to the time of the meetings.

ATTENDANCE AT INTERNATIONAL COUNCIL OF SHOPPING CENTERS (ICSC)

MONTEREY
City Manager Joey Forseth-Deshais gave a staff report and answered questions from Council.

Councilmember Gallagher made a motion to send one Councilmember along with City Manager Forseth-Deshais.

Mayor Baugh made a substitute motion to send two Councilmembers, no second was received.

By motion made, seconded (Gallagher /Hale) and carried by a 5-0 vote Council voted to attend ICSC in Monterey March 24-26, 2025 and to send the City Manager and Council member Simmons.
~: AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Gallagher, Hale, Simmons, Gallier and Mayor Baugh.

None.

None.

None.

PUBLIC WORKS

RIVER TRAIL STORM DAMAGE REHABILITATION PROJECT-AUTHORIZATION TO AWARD
Public Works Director Adam Whelen gave a staff report and answered questions from Council.

By motion made, seconded (Gallagher/Gallier) and carried by a 5-0 vote Council voted to award the River Trail Storm Damage Rehabilitation Project contract to Tullis Inc. for $494,800.00, authorize the City Manager to execute the contract upon receipt of the required insurance certificates, payment bond, and performance bond and authorize the Public Works Director to approve change orders not to exceed 20% of the bid amount.

City Council Meeting
February 18, 2025

AYES:

NOES:

Councilmembers Gallagher, Gallier, Simmons, Hale and Mayor Baugh.

None.

ABSTAIN: None.

ABSENT: None.

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

Public Comment on Closed Session Items - None.
7:21 p.m.: The City Council convened to Closed Session.

CLOSED SESSION
8;10 p.m,; The City Council reconvened to Qoen Session.

CLOSED SESSION ANNOUNCEMENT
C.S.1 CONFERENCE WITH LABOR NEGOTIATORS (54957.6) * Agency designated representatives: City Manager Joey Forseth-Deshais * Employee organization: Teamsters
Mayor Baugh announced Council sat in closed session with no reportable action.

ADJOURNMENT
8:10 p.m.: The City Council adjourned to March 4, 202s.

Susie Baugh, Mayor
ATTEST:

Christy White, City Clerk

ANDERSON CITY COUNCIL MINUTES
Special Meeting
February 13, 2025

REGULAR SESSION
The special session was called to order at 4:00 p.m.

ROLL CALL
Councilmembers present: Councilmember Simmons
Councilmember Gallagher
Councilmember Hale
Vice-Mayor Gallier
Mayor Baugh
DRAFT
Also present: City Manager Joey Forseth-Deshais, City Attorney Collin Bogener, Finance Director Cindy Wheeler and City Clerk Christy White.

INVOCATION
Mayor Susie Baugh gave the invocation.

PLEDGE OF ALLEGIANCE
Councilmember Mike Gallagher led the Pledge of Allegiance.

Public Comment on Closed Session Items - None.
4:01 p.m,; The City Council convened to Closed Session.

CLOSED SESSION
4;54 p,m.; The City Council reconvened to Q.pen Session,

CLOSED SESSION ANNOUNCEMENT
C.S.1 CONFERENCE WITH LABOR NEGOTIATORS (54957.6) * Agency designated representatives: City Manager Joey Forseth-Deshais * Employee organization: Teamsters
Mayor Baugh announced Council sat in closed session with no reportable action.

ITEM 6.1 2/18/2025
City Council Meeting
February 18, 2025

ADJOURNMENT
4:54 p,m.: The City Council adjourned to March 4, 2025, Susie Baugh, Mayor
ATTEST:

Christy White, City Clerk

AGENDA ITEM
I February 18. 2025 City Council Meeting
or Submittal By:

To Be Presented By:

C' y Wheeler, Finance Director/
Treasurer
To:

Through:

Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
From: Cindy Wheeler, Finance Director /Treasurer
Date: February 18, 2025
!SUBJECT
Receive and File Weekly Warrant Registers.

I RECOMMENDATION
Receive and file warrant 33979 to 34027 in the amount of $370,498.55; Receive and file ACH in the amount of $63,232.26; Receive and file ACH in the amount of $58,751.03; Receive and file warrant 34028 to 34097 in the amount of $197,273.36.

I ATTACHMENT
Warrant Registers.

ITEM 6.2 PAGE1 2/18/2025

CHECK REGISTER

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
000017 49ER WATER SERVICES
PROFESSIONAL SERVICES 1/31/2025 033979 325.00
000132 ADAMS VIDEO PRODUCTIONS
PROFESSIONAL SERVICES 1/31/2025 033980 997.50
000974 BEELER TRACTOR COMPANY
PARTS 1/31/2025 033981 263.07
001754 CALIFORNIA VISION SERVICE
INSURANCE PREMIUM 1/31/2025 033982 71..70
001874 KYLE CARPENTER
PER DIEM-TRAINING 1/31/2025 033983 471.00
001971 CDW GOVERNMENT, INC.

SUBSCRIPTION 1/31/2025 033984 669.99
002176 CIVICPLUS, LLC
MUNICODE ADMIN SUPPORT FEE 1/31/2025 033985 1,689.18
002634 CROWN MOTORS
PARTS 1/31/2025 033986 664.56
002971 DEPT OF HOUSING AND COMM DEV.

MOBILE HOME PERMIT FEES 1/31/2025 033987 1,972.00
002983 DEPT. OF TRANSPORTATION
TRAFFIC SIGNAL MTNC #02-0041 1/31/2025 033988 111.04
003590 FASTENERS INC.

SUPPLIES 1/31/2025 033989 166.11
003618 FERGUSON WATERWORKS #1423
SUPPLIES 1/31/2025 033990 995.68
011857 JOSEPH GRADY
PER DIEM-TRAINING 1/31/2025 033991 942.00

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
004354 GREGGORY GUNDERSEN
PER DIEM-TRAINING 1/31/2025 033992 942.00
004415 DARIN HALE
HEALTH INS. REIMBURSEMENT 1/31/2025 033993 556.44
005066 1.1.M.C.

MEMBERSHIP DUES-WHITE 1/31/2025 033994 220.00
005111 INLAND BUSINESS MACHINES, INC
MONTHLY LEASE 1/31/2025 033995 271.53
005169 J & T CONSULTING, INC.

PROFESSIONAL SVCS & SUPPLIES 1/31/2025 033996 2,751.00
005445 K & S STAFFING SOLUTIONS, INC.

PROFESSIONAL SERVICES 1/31/2025 033997 1,178.71
011716 RYAN KWIATKOWSKI
PER DIEM-TRAINING 1/31/2025 033998 471.00
006026 LIDDELL CONST. SUPPLY INC.

SUPPLIES 1/31/2025 033999 45.58
006153 LOUCKS LANDSCAPE SUPPLY
MATERIALS 1/31/2025 034000 255.26
007089 SUSAN MURDOCH
CLEANING DEPOSIT REFUND 1/31/2025 034001 350.00
007134 N.C.G.T. TRUST FUND
HEALTH INSURANCE PREMIUM 1/31/2025 034002 113,137.00
007342 NORCAL RENTALS & SALES
EQUIPMENT RENTAL 1/31/2025 034003 1,319.94
007379 NORTH VALLEY BUSINESS SYSTEMS
SUPPLIES 1/31/2025 034004 332.64
Page2

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
007394 NORTHERN CALIF. GLOVES
SUPPLIES 1/31/2025 034005 299.98
007477 OBSIDIAN IT
PROFESSIONAL SERVICES 1/31/2025 034006 12,679.27
007493 ODP BUSINESS SOLUTIONS, LLC
OFFICE SUPPLIES 1/31/2025 034007 360.27
007594 OVIVO USA, LLC
PARTS 1/31/2025 034008 1,920.90
007618 PACE SUPPLY CORP.

EQUIPMENT 1/31/2025 034009 39,240.27
007630 PACIFIC GAS & ELECTRIC
UTILITIES 1/31/2025 034010 75,036.36
007669 PAPE MACHINERY
PROFESSIONAL SERVICES 1/31/2025 034011 135.52
008107 PRIME HEALTHCARE SERVICES-SH
SART EXAM (APD24-001673) 1/31/2025 034012 1,000.00
008181 QUADIENT FINANCE USA, INC.

METERED POSTAGE 1/31/2025 034013 1,500.00
009393 SHASTA CO. DEPT RESOURCE MGMT
ANNUAL HMBP FEE-ADP 1/31/2025 034014 275.39
009477 SHASTA MOSQUITO & VECTOR
MOSQUITO ASSESSMENT 1/31/2025 034015 217.83
012042 SHASTA OFFICIALS
PROFESSIONAL SERVICES 1/31/2025 034016 2,125.00
009564 SHN CONSULTING ENGINEERS AND G
PROFESSIONAL SERVICES 1/31/2025 034017 8,085.00
Page3

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
012315 ASHLEY SILVA
CLEANING DEPOSIT REFUND 1/31/2025 034018 350.00
010180 SUNBELT RENTALS, INC.

EQUIPMENT RENTAL 1/31/2025 034019 9,920.60
010236 SWRCB FEES
ANNUAL PERMIT FEE #4510001 1/31/2025 034020 13,525.32
010255 T ANDS DVBE, INC.

SUPPLIES 1/31/2025 034021 532.14
010874 VERIZON WIRELESS
PHONE CHARGES 1/31/2025 034022 3,548.56
010881 VESTRA RESOURCES INC.

PROFESSIONAL SERVICES 1/31/2025 034023 1,057.99
011064 WM CORPORATE SERVICES, INC
DUMP FEES 1/31/2025 034024 27.15
011674 WELLS FARGO VENDOR FINANCIALS
MONTHLY LEASE 1/31/2025 034025 357.45
011201 WESTAMERICA BANK
LOAN# 526 000 0309-78-0114 1/31/2025 034026 65.468.62
011305 PETER WICKENHEISER
REIMBURSEMENT-TUITION 1/31/2025 034027 1,665.00
01/28/25 ACH PERS $63,232.26 370,498.55
FOR PAYROLL ENDING 01/03/25
01/29/25 ACH PERS $58,751.03
FOR PAYROLL ENDING 01/17/25
ff.«= ~ ~
Page4

CHECK REGISTER

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT

VOIDED CHECKS
PRINTING ERROR 2/7/2025 034028-034039 0.00
000083 ACE HARDWARE
SUPPLIES-JOB#3 2/7/2025 034040 1,931.37
000323 AMERICAN FIDELITY ASSURANCE CO
CAFETERIA 125 PIE 1/17/25 2/7/2025 034041 516.40
000349 AMERICAN TOWER CORPORATION
MONTHLY TOWER RENT 2/7/2025 034042 975.00
000406 ANDERSON FIRE PROTECTION DIST.

QTRLY PASS TH RU-DESCHUTES 2/7/2025 034043 1,455.08
000510 APPLEJACKS T-SHIRTS
SUPPLIES 2/7/2025 034044 77.67
000945 BEACON FIRE ALARM & SECURITY,
PROFESSIONAL SERVICES 2/7/2025 034045 195.00
001394 BRIGHT PLANET SOLAR
BLDG PERM1T REFUND 2/7/2025 034046 433.30
011927 CALIFORNIA STATE LANDS COMMISS
WASTEWATER OUTFALL LEASE 2/7/2025 034047 48.14
011941 CHARLES CASSELL
REIMBURSEMENT - GRADE 2 CERT 2/7/2025 034048 210.00
002142 CINTAS FIRST AID & SAFETY
SUPPLIES 2/7/2025 034049 85.46
002165 CITY OF REDDING
LIBRARY CONTRIBUTION 2/7/2025 034050 3,932.18
002167 CITY OF REDDING
UTILITIES 2/7/2025 034051 267.89

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
002199 CLARK PEST CONTROL OF STOCKTON
PROFESSIONAL SERVICES 2/7/2025 034052 706.00
012237 OLIVER COLLINS
CELL PHONE REIMBURSEMENT 2/7/2025 034053 75.00
002392 CONSOLIDATED ELECTRICAL DIST.

SUPPLIES 2/7/2025 034054 226.99
003423 ENERPOWER
UTILITIES 2/7/2025 034055 3,541.00
003590 FASTENERS INC.

SUPPLIES 2/7/2025 034056 240.27
003618 FERGUSON WATERWORKS #1423
SUPPLIES 2/7/2025 034057 3,539.25
011976 JOEY FORSETH-DESHAIS
CELL PHONE REIMBURSEMENT 2/7/2025 034058 75.00
011883 ADAM FROEBER
CELL PHONE REIMBURSEMENT 2/7/2025 034059 75.00
004205 GOODYEAR COMMERCIAL TIRE
PROFESSIONAL SVCS & PARTS 2/7/2025 034060 1,510.50
004248 GRAINGER
SUPPLIES 2/7/2025 034061 450.00
004592 HAVEN HUMANE SOCIETY
ANIMAL CONTROL SERVICES 2/7/2025 034062 9,068.60
005076 IBM CORPORATION
PROFESSIONAL SERVICES 2/7/2025 034063 99.00
005401 NICHOLAS JONES
CELL PHONE REIMBURSEMENT 2/7/2025 034064 75.00
Page2

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
005517 KEN GRADY COMPANY INC.

PROFESSIONAL SVCS & EQUIPMENT 2/7/2025 034065 478.73
005667 ERIC KNIGHT
CELL PHONE REIMBURSEMENT 2/7/2025 034066 75.00
012316 LAMB UNLIMITED GENERAL ENGi NEE
PROFESSIONAL SERVICES 2/7/2025 034067 105,626.70
006776 MEYER'S POLICE K-9 TRAINING, L
TRAINING-HANDLERS 2/7/2025 034068 1,450.00
011792 MISSIONSQUARE-302204
PLAN #302204 PE 1/31/25 2/7/2025 034069 4,510.00
007075 MUNICIPAL MTNC. EQUIPMENT
SUPPLIES 2/7/2025 034070 363.28
007118 MUTUAL OF OMAHA
INSURANCE PREMIUM-FEB 25 2/7/2025 034071 2,061.65
007381 NORTH VALLEY DISTRIBUTING
SUPPLIES 2/7/2025 034072 201.30
007477 OBSIDIAN IT
PROFESSIONAL SERVICES 2/7/2025 034073 8,567.68
012319 KAYLA OGRAM
KEY DEPOSIT REFUND 2/7/2025 034074 10.00
007630 PACIFIC GAS & ELECTRIC
UTILITIES 2/7/2025 034075 3,599.06
007657 PAINT MART
SUPPLIES 2/7/2025 034076 550.68
007967 PLATT
SUPPLIES 2/7/2025 034077 20.91
Page3

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
011940 QUICK QUACK CAR WASH
CAR WASHES 2/7/2025 034078 778.59
012176 RING CENTRAL INC
PHONE CHARGES 2/7/2025 034079 1,808.78
012320 SHASTA CO SHERIFF'S SEARCH & R
CLEANING DEPOSIT REFUND 2/7/2025 034080 350.00
009393 SHASTA CO. DEPT RESOURCE MGMT
ANNUAL HMBP FEE-CITY HALL GEN 2/7/2025 034081 3,506.28
009423 SHASTA COUNTY AUDITOR CONT.

QTRL Y PASS TH RU-OX YOKE/HWY273 ';./7/2025 034082 1,651.75 009423 SHASTA COUNTY AUDITOR CONT.

QTRL Y PASS TH RU-OX YOKE/HWY273 2/7/2025 034083 1,209.00 009423 SHASTA COUNTY AUDITOR CONT.

QTRLY PASS THRU-DESCHUTES 2/7/2025 034084 7,533.60
012317 MIKE SKIDMORE
PARK RENTAL REFUND 2/7/2025 034085 25.00
009845 SONSRAY MACHINERY·, LLC
PROFESSIONAL SVCS & PARTS 2/7/2025 034086 5,777.31
012318 DAVID SPANGLE
PARK RENTAL REFUND 2/7/2025 034087 25.00
012323 STIER'S RV CENTERS LLC
BUS. LICENSE OVRPYMT REFUND 2/7/2025 034088 54.00
010075 STIMPEL WIEBELHAUS ASSOCIATES,
MATERIALS 2/7/2025 034089 1,240.34
012321 SWEET & FLUFFY COTTON CANDY
BUS. LICENSE OVRPYMT REFUND 2/7/2025 034090 29.00
Page4

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
010382 THE EMBLEM AUTHORITY
SUPPLIES 2/7/2025 034091 1,034.00
010749 US BANK VOYAGER FLEET SYSTEMS
FUEL CHARGES 2/7/2025 034092 14,561.62
011245 CINDY WHEELER
CELL PHONE REIMBURSEMENT 2/7/2025 034093 75.00
011858 ADAM WHELEN
CELL PHONE REIMBURSEMENT 2/7/2025 034094 75.00
011260 CHRISTY WHITE
CELL PHONE REIMBURSEMENT 2/7/2025 034095 75.00
011305 PETER WICKENHEISER
CELL PHONE REIMBURSEMENT 2/7/2025 034096 75.00
012322 WRIGHT TREE SERVICE OF THE WES
BUS. LICENSE OVRPYMT REFUND 2/7/2025 034097 65.00
197,273.36

AGENDA ITEM
~ebruary 18, 2025, City Council Meeting!
To:

From: ·
Date:
lsueJECT
Joey
Honorable Mayor and Members of the
Joey Forseth-Deshais, City Manager
February 18, 2025
Amending the Anderson City Council Procedures.

I RECOMMENDATION
eshais, City Manager
shais, City Manager
Approve the changes to the Anderson City Council Procedures as discussed at the February 4, 2025 Council meeting.

I FISCAL IMPACT
There is no fiscal impact.

I DISCUSSION and BACKGROUND
The City Council procedures were last updated in June of 2012. These procedures should be reviewed on a periodic basis to remain relevant and effective in governing the conduct of council meetings. After staff review and Council discussion at the February 4, 2025 meeting the procedures received minor edits and the proposed updates to create more clarity. A few of the proposed changes are the following.

Adoption of Rosenberg's Rules of Order
• Replace the existing Robert's Rules of Order with Rosenberg's Rules of Order as the procedural guide for parliamentary procedure. This is a simplified version of framework for meetings but still offers transparency and order without the complexity of Robert's Rules.

ITEM 6.5 PAGE1 2/18/2025
Changing the meeting start time.
• Adjust the regular City Council start time from 6:00pm to 5:30pm. This will reduce the amount of extended staff time between the end of their workday at 5:00pm and the current meeting start time. This change still allows for public participation in the meetings for full transparency.

Update to Mayor and Vice-Mayor selection terms:
• This was changed to a one-year term by a 4-1 vote of the Council on December 1, 2015, and is incorporated into the updated procedures for consistency.

Other minor changes are also incorporated into the draft Amended Council Procedures through track changes. The Council provided feedback, and changes were made to the final document. Updating these procedures on a regular basis helps promote well organized, transparent, and efficient meetings.

I ATTACHMENT

1. Draft Amended Council Procedures

2. Final Council Procedures
ITEM 6.5 PAGE2 2/18/2025

CITY COUNCIL PROCEDURES
A. Regular Meetings
Regular meetings are held in the Council Chambers of City Hall, 1887 Howard Street, Anderson, California. Regular meetings are scheduled for the first and third Tuesday evenings of each month or as otherwise established by resolution of the City Council in January of each calendar year. Regular meetings begin at 5:30 pm,"'°°-~- with closed sessions and workshops being convened either earlier or later as needed. No CeuA~li f'l!@Ptil'lg will ll-e held iA the e,1JeAI th;1t a reg1,1lar MP@til'lg efthe Ce~ucil faUe& 81'1 a legal-h111iday or the day prior t&-a-MI~
B. Special Meetings
Special meetings may only be called by the City Mana11er QLMayor. er b}< three -~t1l. A special m«rini: ID\t,l( i,ll:i:P.buiille.d...by_three membeB of the.Cw Cmrncil durioi: a re1ml,uh:.scheduled.meeling •. ..Written notice, unless waived, must be given to the City Council and to the media 24 hours prior to a special meeting {Cal Govt Code Section 54956). The call and notice of the meeting must be posted at least 24 hours prior to the meeting in a location freely accessible to members of the public. No business other than that announced may be discussed.

C. Adjourned Meetings/Continued Hearings
Meetings of the City Council may be adjourned from time to time, either to the time of the next regular meeting or to a time and place specified in the order of adjournment.

Any hearing may be continued to any subsequent meeting of the City Council; but if it is continued to a time less than 24 hours a~er the time specified in the order or notice of hearing. a copy of the order or notice of continuance shall be posted immediately following the meeting at which the hearing was continued.

D. Workshop or Study Sessions
The City Council may convene its own workshop or study sessions which are not designed to make decisions for the City, but are designed to train Council and staff, study various issues, and facilitate the exchange of information. Such workshops or study sessions may include the Planning Commission, staff members, consultants and others and shall comply with all of the requirements of the Ralph M. Brown Act.

E. Public Participation
F.

At all regular and special meetings, public comments must be permitted before or during consideration of any agendized item. Public comment is appropriate on any matter within the jurisdiction of the City Council.

Notice/Minutes
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Notice requirements of the Brown Act shall be complied with for all meetings; minutes of the meeting shall be taken by the City Clerk or designee and shall be available for public inspection.

G. Placing Items on Agenda
Cjty Council: During the "Council Reports" portion of a meeting. a Council member may request an item be considered on a future agenda. If so directed by the Council, throui:h majority vote staff will prepare a staff report for the item and place it on a future agenda for Council consideration.

City Manai:er/Cit,y Attorney: Either the City Manager or the City Attorney may place matters on the agenda without special permission from the City Council.

Members of the Public: A member of the public may request an item be placed on a future agenda during the public comment period of a meeting or through other communication with Council members or with staff. If the City Council or City Manager consent, such item will be agendized.

Emeri:ency Items: Emergency and non-agendized items may be added to an agenda only in accordance with state law. Emergency items are only those matters affecting public health or safety, such as work stoppages, disasters and other severe emergencies. Meeting to consider an emergency situation requires a majority vote.

Emergency meetings are very rare.

Uri:ency Items: On occasion, after the agenda is posted, an item arises that the Council would like to act on. Non-agendized items may be added to the agenda only if the Council makes findings that (1) the need to consider the item arose after the posting of the agenda and {2) that there is a need to take immediate action at this meeting of the City Council. These findings must be approved by a 4/5 vote; ifless than four members of Council are present, the findings require a unanimous vote of those present.

H. Tips on the Dais
Televised Meetioi:s: City Council meetings are live streamed throui:h the City's website,teleYi~ @De¾ lect1t~~e~YH;i-oontlel. The City Council Chambers is equipped with a public address system. The system provides microphones at the dais, staff table, and podium. There are several issues related to the sound system which are important to keep in mind:
• When you want to talk, speak directly into the microphone. • Never say things near a microphone you do not want to be heard. • Have all speakers come forward to the podium. Do not allow people to speak from the audience.

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Certain colors of clothing present difficulties to the television system and, thus, can be distracting to viewers at home. White causes glare and makes the picture around it appear dark, causing loss of detail. Bright red and orange reproduce poorly on television and can also cause glare problems. Clothing with fine patterns, such as stripes and grids, can cause a rainbow effect in the picture that is extremely distracting.

Shiny objects that retlect light should be avoided. Good colors for television include blues, greens, browns, grays, and most pastels.

I. Order of Business
The City Council establishes the general order of meetings. This section summarizes each meeting component.

1. 2.

Proclamations. Recoanitions. Presentations.

This is the time for Council proclamations, presentations, and for special recognition of persons, organizations, activities and events. Unless any Council member objects, in which case a vote is required, proclamations will be read aloud and considered adopted by consensus of the entire Council.

Public Participation.
a. Scheduled Citizens. Persons who have, by the deadline set for the agenda, requested to address the Council are usually given the opportunity to do so at this time. The subject they wish to discuss is identified on the agenda and any supporting materials are usually sent out with the agenda packets to the Council members. Each speaker is limited to one &3-minute opportunity to speak, unless the Council makes an exception due to special circumstances. b. Public Comment on Non-Ai:endjzed Items. This is the time far-l~fo.r members of the public to address the Council on non-agendized matters.

Each speaker is limited to one 3-minute opportunity to speak, unless the Council makes an exception due to special circumstances. If the matter is expected to take more than~fi.lle minutes, it should be moved to the end of the regular agenda~telr pn~ee,d-mg-4i~-ot:4t--~
ffflm ,he oonsent agenda. The purpose for this is to avoid inconveniencing those who have planned ahead and taken the necessary steps to have their issues properly agendized. Persons who wish to raise non-agendized items should be cautioned that in most cases the Brown At;t-prehibitsAct prohibits the Council from taking formal action on the item, but that they will be heard, and then the matter will be referred to staff for appropriate followup. c. Public Comment on Aaendjzed Items. The Brown Act requires that the public be given the opportunity to address the Council on all matters on the Jl2755.00000\6987690,I
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agenda (matters to be discussed in either open or closed session, but not the right to enter the closed sessions) before action is taken on those items. At the beginning of each meeting. the Mayor should inform persons in the audience that they are welcome to come forward to the podium and wait to be recognized if they wish to address the Council on any items under discussion. Each speaker is limited to one 3•minute opportunity to speak, unless the Council makes an exception due to special circumstances. d. General Ryles for PybHc Partjcjpatjon. No member of the public may be required to provide an address as a precondition to participation, but they may be invited to do so voluntarily. Dialogue between members of the public and Council members or staff should not be permitted. When a member of the public is speaking. other members of the public should not be permitted to interrupt or otherwise disrupt the speaker. Speakers may be directed not to use profanity or make personal attacks on Council members or staff. but speakers cannot be restricted from being critical of Council, staff or other public officials. They may not be prohibited from "criticizing the policies, procedures, programs or services of the City, or the acts or omissions" of City officials.

3. Approval/Correction of Minutes.

Minutes of the City Council meetings shall be submitted to the Council for approval and/or correction in draft form at a subsequent regular meeting. It is the policy of the City Council that only members of the Council and the City Clerk have the authority to make revisions to the minutes subject to a majority vote of the City Council. Council members having only typographical corrections to minutes are encouraged to provide such corrections to the City Clerk directly and need not wait to submit such corrections at a meeting.

4. Consent Calendar.

Those items on the Council agenda which are considered to be of a routine and non-controversial nature by the City Manager are placed on the "Consent Calendar.~ These items shall be approved, adopted, accepted, etc~ by one motion of the Council. For example, final reading and adoption of ordinances, various resolutions approving agreements, minor budgetary items, status reports, and routine City operations are usually on the consent agenda.

Council members or members of the public may request that any item listed under "Consent Calendar" be removed from the Consent Calendar, and Council will then take action separately on this item. Items which are removed ("pulledm) by members of the Council for discussion will typically be heard immediately following adoption of the Consent Calendar unless the Council chooses to move such items to a later place in the agenda. /)2755,00000\6987690.1
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5. 6.

Minor questions: A Council member may ask questions on any item on the Consent Calendar. When a Council member has a minor question for clarification concerning a consent item which will not involve extended discussion, the question will be addressed before adoption of the Consent Calendar. Council members are encouraged to seek clarifications prior to the meeting, if possible.

No vote: When a Council member wishes to pull an item simply to register a dissenting vote, the Council member shall inform the presiding officer that he or she wishes to register a dissenting vote without discussion. This item will be handled along with the rest of the Consent Calendar, and the City Clerk will register this member's "no" vote in the minutes on this particular item even though such member then votes to approve the Consent Calendar.

Public Hearings.

The City Council schedules "public hearings" from time to time on various issues, usually because of legal requirements that special opportunities be given to the public, or to certain segments of the public specially affected by the matter, to listen to the discussion and to provide input to the Council before a decision is made.

When a public hearing is scheduled, staff should be asked to present a staff report first, then the public hearing should be opened and the public should be invited to speak; then the public hearing should be closed and the matter returned to the Council for discussion and action,
Once the public hearing has been closed, persons from the audience should not be allowed to participate in the Council discussions unless in response to a specific question posed by a member of the Council to someone in the audience.

Although it is proper to do so, there is no legal requirement to structure the public hearing so that proponents of the measure or project speak first followed by those in opposition with a conclusion [or rebuttal] by the proponents.

However, if the Mayor or Council prefers to conduct the hearing in this manner, it may prove useful to do so when there are several different speakers and extended debate.

Regular Business Items.

Regular items are shown on the agenda in the order they will be considered unless, before discussion of regular agenda items begins, a motion is made and passes which will change the order of the agenda to accommodate a request and to change the order of the agenda.

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7. Staff and Council Reports.

This time on the agenda provides members of the Council an opportunity to briefly discuss matters not specifically agendized including brief announcements, questions of staff, AB 1234 repDrtS op attepdance a1 rtimhursed confereoces/rneetin11s and requests for items to be placed on the agenda at a future meeting. Examples of appropriate communications would be sharing of information of general interest received from outside agencies, sharing comments or inquiries received from individuals or from the public, raising requests to agendize future items, making reports of his or her own activities, or making announcements of general interest to the public.

State law provides that Council can take action only on such matters which have been noticed at least 72 hours in advance of a regular meeting or at least 24 hours in advance of a special meeting, unless special circumstances are found to exist (as mentioned above in Section G). Formal action or approval on non• agendized items is not allowed, and such items should normally be placed on the agenda of the next regular meeting. if formal Council action is required.

8. Closed Sessions.

The ability of a City Council to condu<:t sessions not open to the public is restricted by State law to ensure open proceedings. Certain defined circumstances exist wherein a City Council may meet without the public in attendance. Such circumstances include:
a. Rea) Property: Closed sessions to discuss the purchase, sale, exchange, or lease of real property may be conducted. The location of the real property, the identities of the City's negotiator, and the person(s) with whom the City may negotiate must be announced in open session prior to the closed session (Cal Govt. Code Section 54956.8).
b. Litii:atjon: Closed sessions may be conducted to discuss pending litigation, a significant exposure to litigation, or the decision to initiate litigation . .l.ltllf. liti~tion ts pendln&,..JThe litigation or title must be identified in open session prior to the closed session unless the Council states that to do so would jeopardize its ability to conclude existing settlement negotiations or serve legal documents (Cal Govt. Code Section 54956.9). c. Compensation (salaries and benefits) of employees: Closed sessions may be held to discuss employee compensation; to review the City's position and instruct designated representatives (Cal Govt. Code Section 54957.6).

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d. Personnel: Closed sessions are allowed to discuss the appointment. employment, evaluation of performance. dismissal of a public employee, or to hear complaints against the employee unless the employee requests a public hearing (Cal Govt. Code Section 54957).

Confidentjality: Members of the Council, employees of the City, or anyone else present shall not disclose to any person the content or substance of any discussion which takes place in a closed session unless authorized to do so by the Council.

Scheduling: Typically closed sessions will be scheduled after the public portions of the meeting. This is done so that public portions of the meeting are not interrupted by closed sessions.

Announcements: Prior to each closed session, the purpose of the closed session shall either be announced from the dais or by reference to the published agenda.

Immediately after each closed session, an announcement shall be made from the dais either (1) summarizing any reportable action taken in closed session or (2) stating that no reportable action was taken. When no reportable action was taken, it's advisable to announce the general nature of the business conducted in closed session to enhance public confidence in the process.

J. General Procedures of the Council

1. 2.

Mayor and Vice-Mayor: Election.

The Council shall select a Mayor and Vice-Mayor from its membership for twe~•year terms by majority vote of the Council (at least 3 votes). The election shall be held at the second Council meeting in December of each year with the new Mayor and Vice Mayor assuming their duties January 1 of the new year._ - Vacancies in such positions shall be filled by the Council in the same manner for the unexpired portion of the term.

Duties of Presiding Officer.

The Mayor is the presiding officer and acts as the Chair at all Council meetings.

In the absence of the Mayor, the Vice•Mayor serves as the presiding officer. The Mayor states every question coming before the Council before it takes action, announces the decision of the Council on each vote, maintains order during the meetings, conducts any public hearings, explains the purpose and order of the proceedings to the public in attendance, greets and thanks all participants and, J1275S.00000\6987690. I
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with the assistance of the City Attorney, decides questions of order. The Mayor also makes any legally required announcements including, but not limited to, the announcements required by the Brown Act.

The Mayor appears at public functions to represent the City unless the Council designates another person to do so with regard to a specific event.

The Mayor has no independent authority to unilaterally make appointments to committees, commissions and other City positions, but only that authority which the Council from time to time confers upon the Mayor by formal action taken during Council meetings {see Section K regarding City Council appointments).

3. Seating Arrangement of the Council.

The Vice-Mayor is seated immediately next to the Mayor. The entire Council decides the remaining seating arrangements for its members in the event of any disagreements among members.

4. Siening of City Documents.

The Mayor, unless unavailable, shall sign all ordinances, resolutions, contracts, and other documents which have been adopted by the City Council and require an official signature, except in those cases where the City Manager or another individual has been specifically authorized by Council action to sign particular documents. In the event the Mayor is unavailable, the Vice-Mayor is authorized to sign on behalf of the City in his or her place.

Three-fifths of the Council members constitutes a quorum for the transaction of business.

6. Distribution of Agenda and Written Materials.

At least 72 hours prior to regular meetings of the Council [and 24 hours prior to any special meetings), an agenda must be posted which contains a brief general description of each item to be transacted or discussed at the Council meeting.

Copies of that agenda will be mailed before each meeting to each Council member and to members of the public and the press who have requested to receive copies.

Writings which are public records distributed during Council meetings shall be made available to the public in attendance at that same meeting, if such documents were prepared by City staff or City officials. If prepared by some other person, copies of such documents will be made available following the J 2755.00000\6987690.I 13
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7. meeting. A reasonable fee may be charged to offset the actual cost of making such copies.

Closed Session Procedures and Announcements.

Prior to any closed session, the Mayor or his or her designee shall generally describe the subjects to be discussed in such session or shall refer the public to the numbered item on the agenda which describes the subject.

At the conclusion of each closed session, the Council shall reconvene and the Mayor shall announce any final decisions made on subjects required to be reported or, if there are no such subjects, shall generally describe what the Council did in closed session without compromising the integrity and confidentiality of what was discussed.

Council members, outside of closed session, shall not inform others about the content of any closed session discussions or decisions unless required to do so by court order or provisions oflaw.

8. Djscussjon and Yotio& Rules.

Discussion:
a. Obtaining the floor: A member of the City Council or staff shall first address the Mayor and gain recognition. Comments and questions should be limited to the issue before the Council. Direct exchanges between Council members and members of the public seated in the audience should be avoided.

Members of the public should not be allowed to directly question staff members in attendance, but all such questions should be addressed through the Mayor for response,
b. Questions of staff: The Mayor, or any member of the Council upon being recognized by the Mayor, may~-dtfe€t-...questions to i"tflffflt'ffiber i)f-me, sla!l wha 1.-s hi ;;a1t!!11~,m£e,tru: ~~~..w Jhra.~.e answered by the City Mana~et the staff. or· de[erred to .:atheu.ddUiQ.DaJ information Staff members responding to Council questions should, whenever time permits, come forward to the staff table or podium for response. This not only provides a proper example for members of the public in attendance, but also allows the microphones to be used properly in televising the proceedings.
c. Interruptions: Once recognized, a Council member should not be interrupted while speaking, except to make a point of order or personal privilege. If a Council member is called to order while speaking, the individual should cease speaking until the question of order is determined. f,275S.00000\6987690.1
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d. Tabling procedures: A motion to table immediately stops discussion and causes a vote to postpone the matter indefinitely or to a date and time certain.
e. Procedures used for motions: Rosenbenfs R11!es of Order Rel:iert's- !lures-et O«l@r are hereby adopted as the rules of parliamentary procedure for conducting City Council meetings.
f. Requirement to vote: All Council members present, who are not abstaining. are required to vote. It shall be the duty of the recording clerk to ensure that a vote is taken on every matter requiring formal action and that each and every non-abstaining member actually casts a vote, which such clerk then records in the minutes of the meeting.
g. Requirement of a second: A second is required on all matters before they can proceed to a vote. If no second is received, the motion dies for lack of a second. Seconding a motion does not indicate or imply that the member doing so will vote in favor of the motion. It simply allows the matter to be discussed and proceed to a vote.
h. Motions and votes by presiding officer: The presiding officer, whether it be the Mayor or Vice-Mayor or any other member of the Council. is allowed to make and second motions and to cast votes in the same manner as any other member of the Council.
i. Roll call votes: Any member of the Council may request that a matter being voted on be handled by roll call vote. Upon such a request being made, the clerk shall poll the Council and record the votes being cast. j. Right of protest: A Council member is never required to state the reason for a dissenting vote.
k. Disqualification and abstention from voting: Members of the Council are required to vote on all matters coming before the entire Council for a vote, unless an individual member chooses to abstain or is disqualified due to a conflict of interest as defined in the City's "Conflict of Interest Code.µ If a member has a question whether or not he or she has a conflict. he or she should discuss that issue with the City Attorney or seek advice from the Fair Political Practices Commission before the meeting whenever time permits. If a member abstains due to a conflict of interest or potential conflict of interest he or she shall, immediately before the matter is considered:
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(1) publicly state the specific nature of the contlict in enough detail to be understood by the public (disclosure of exact street address of Council member's home or business is not required);
(2) recuse himself or herself from discussing or voting on the matter; and (3) leave the room until alter the discussion, vote or other disposition of the matter is concluded, unless the matter is on the "Consent Agenda" (except that such official may speak on the issue from the floor during the time that the general public speaks on the issue).

I. Tie votes: A tie vote is equivalent to a vote which has failed. A tie vote to grant or approve something doesn't represent consent nor does it represent denial of permission to act. It leaves the status unchanged and, if the proponent of the action requires permission to move forward, he or she has simply failed to obtain it.

On the other hand, a tie vote to deny or disapprove something doesn't represent either approval or denial. It also leaves the situation unchanged and, if the proponent of the action requires permission to move forward, he or she has again failed to obtain it.

If a tie vote occurs on an appeal of an action coming up from the Planning Commission, the appeal has neither been granted nor denied. Since the status quo is unchanged, the end result is the equivalent of a denial of the appeal since the appellant in order to overturn the action taken by the Planning Commission must obtain some action at Council level. A tie vote is the equivalent of no action, except insofar as it satisfies the legal requirement that the matter be presented to the Council for consideration.

If a tie vote occurs with the filth member of the Council absent from the meeting and not due to the abstention of such member, the matter will automatically be continued until the next Council meeting when such member can be present to cast a vote unless there is a time limit imposed by law, which precludes such a continuance.
m. Public participation following a motion: Public participation in the discussion should be avoided in most cases alter a motion has been made, unless it is specifically invited by a member of the Council.

9. Consensus Motions Resolutions and Ordinances.
a. Consensus.
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Occasionally it is appropriate for the Mayor to simply request a "consensus" of the Council on routine issues, such as referring matters to J l
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staff without taking a formal vote. Proclamations are considered to be adopted by consensus without a vote unless any member of the Council requests a vote be conducted.

Most actions of the City Council may be taken by motion on a voice vote.

Except for ordinances, resolutions, and orders for the payment of money, motions pass upon the affirmative vote of a majority of the members voting.

For example, if two members are absent or abstain from voting. a 2-1 vote is sufficient to adopt most motions.
c. Resolutions.

Resolutions are a more formal way of memorializing actions of the City Council. A resolution, rather than a motion, is only necessary when required by law. Unless a higher vote is legally required, all resolutions must be passed by at least three affirmative votes. Condemnation resolutions require the affirmative vote of at least four members.
d. Ordinances.

With the exception of urgency matters, ordinances cannot be adopted until at least five days following their introduction and can only be adopted at a regular City Council meeting. Changes to an ordinance once introduced, except for minor clerical changes, require the ordinance to be reintroduced and at least five more days to pass before adoption. Ordinances require the affirmative vote of at least three Council members. Ordinances do not have to be read in full at the time of introduction or adoption [they may be read by ~short title" only] if the Council votes to read only the title. The Council usually votes to do so as one of the items on its "Consent Calendar." Ordinances become effective 30 days after their adoption except for urgency ordinances, ordinances relating to elections, street improvement proceedings, taxes and certain other ordinances which take effect immediately.

10. Rules for Hearings.
a. Lei:islatiye Matters.

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When the Council has a "legislative" matter before it, the individual Council members may investigate the issue before the meeting, discuss the matter with whomever they wish and, if they consider it politically expedient, even announce their "position" on the issue before the meeting of J2
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the entire Council. They, of course, cannot seek a consensus on the issue before the meeting by contacting a majority of the other members of the Council [either personally or by contacting one and, in turn, having that one contact another ("serial meetings")).
b. QuMi·!vdicja) Matters.

When the matter coming before the Council is of a "quasi-judicial" nature (i.e. appeals from Planning Commission matters), the individual members of the Council may discuss such matters with proponents, opponents, or others before the meeting, but must report any such discussions or "ex parte communications" at the meeting at which the matter is considered.

Similarly, if any Council member receives information outside of the meeting by means other than discussions with interested parties, which such member will take into account in making a decision, he or she must report that information to the rest of the Council in public during the discussion period.

If findings are required to be made, Council members should be careful to declare precisely what evidence they have considered which allows them to make the required findings. In doing so, they can refer to information in the staff report and adopt that information as a part of their motion. However, they should keep in mind that the staff report was prepared prior to the public hearing and that new information not previously known to staff may come out during the hearing. Council may rely on staff to outline what findings are required to be made to support a particular motion, but the Council itself is responsible to state on the record what facts it has considered which supports each of the required findings.

K. City Council appointments to Committees, Commissions and Advisory Boards In order to facilitate the efficient conduct of City business and to represent the City to other agencies, the City Council participates in, or appoints representatives to, many different committees, commissions, and advisory boards. Unless otherwise provided by the bylaws or policies of individual committees, commissions, and advisory boards, the Council will adhere to the following general guidelines concerning appointments to these committees, commissions and boards.

1. Annually in_~--Ge~. the City Council will meet to consider appointments to committees, commissions and advisory boards that may be necessary during the coming year.
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2. Recruitment for public members to serve on committees, commissions and ,>-F_o_nn_ att_ed_ :_Fo_n_t _c_am_ bn_·a ________ _ advisory boards shall be conducted in accordance with Government Code . . Fonnatted: Font Cambria ~---------------~ J127SS.00000\6987690.I ,.13, Section 54974 when a vacancy occurs, unless specific recruitment procedures are outlined in the individual committee, commission or board bylaws.

Notwithstanding, the City Council may, if it finds an emergency exists, fill any unscheduled vacancy immediately. A person appointed to fill the vacancy shall serve only on an acting basis until the final appointment is made.

J. Appointments of City Council members to serve on committees, commissions, or advisory boards shall be consistent with the bylaws or policies of the individual committee, commission, or advisory board. In the event no such bylaws or policies exist, appointments shall be concurrent with the Councilmember's current term of office, subje1,t to revteW..md ~onli,i;mal'ieH"by ~~1-ryt--vear-~ If it is in the best interest of the City, the Council may extend the appointment for additional terms. All appointees, whether Council members or public members, shall serve at the pleasure of the City Council.

4. Appointments to committees, commissions or advisory boards, whether City Council or public members, shall be made by motion and majority vote of the City Council. Should there be more public member applicants than positions available, the Council will select the appointee based on criteria and procedures to be determined as appropriate at the time.

5. The Mayor's Selection Committee, consisting of the mayors of all three cities in Shasta County, meets annually in January to fill certain committee and commission positions of regional interest. The City Council, at its annual review ifl-in the first me:eljnf: cl_ .li!Jwio:Deeemeer, will consider and make recommendations to the Mayor for positions to be filled at the annual Mayor's Selection Committee meeting.

6. As required by State law and the City's Conflict of Interest Code, an appointee may be required to disclose certain financial information on a Statement of Economic Interests form and/ or advise the Council of any potential conflict of interest which may arise if he/she is appointed. The City Clerk will provide appointees with forms and instructions following their appointment, Those appointees who are required to file must file these forms within 30 days of appointment.
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CITY OF ANDERSON

POLICY AND PROCEDURE
SUBJECT: City Council Procedures
APPROVED:

EFFECTIVE DATE:

A. Regular Meetings
Regular meetings are held in the Council Chambers of City Hall, 1887 Howard Street, Anderson, California. Regular meetings are scheduled for the first and third Tuesday evenings of each month or as otherwise established by resolution of the City Council in January of each calendar year. Regular meetings begin at 5:30 p.m. with closed sessions and workshops being convened either earlier or later as needed.

B. Special Meetings
Special meetings may only be called by the City Manager or Mayor. A special meeting may also be called by three members of the City Council during a regularly scheduled meeting. Written notice, unless waived, must be given to the City Council and to the media 24 hours prior to a special meeting (Cal Govt. Code Section 54956). The call and notice of the meeting must be posted at least 24 hours prior to the meeting in a location freely accessible to members of the public. No business other than that announced may be discussed.

C. Adjourned Meetings/Continued Hearings
Meetings of the City Council may be adjourned from time to time, either to the time of the next regular meeting or to a time and place specified in the order of adjournment.

Any hearing may be continued to any subsequent meeting of the City Council; but if it is continued to a time less than 24 hours after the time specified in the order or notice of hearing, a copy of the order or notice of continuance shall be posted immediately following the meeting at which the hearing was continued.

City Council Procedures l
D. Workshop or Study Sessions
The City Council may convene its own workshop or study sessions which are not designed to make decisions for the City, but are designed to train Council and staff, study various issues, and facilitate the exchange of information. Such workshops or study sessions may include the Planning Commission, staff members, consultants and others and shall comply with all of the requirements of the Ralph M. Brown Act.

E. Public Participation
At all regular and special meetings, public comments must be permitted before or during consideration of any agendized item. Public comment is appropriate on any matter within the jurisdiction of the City Council.

F. Notice/Minutes
Notice requirements of the Brown Act shall be complied with for all meetings; minutes of the meeting shall be taken by the City Clerk or designee and shall be available for public inspection.

G. Placing Items on Agenda
City Council: During the "Council Reports" portion of a meeting, a Council member may request an item be considered on a future agenda. If so directed by the Council, through majority vote, staff will prepare a staff report for the item and place it on a future agenda for Council consideration.

City Mana2er/City Attorney: Either the City Manager or the City Attorney may place matters on the agenda without special permission from the City Council.

Members of the Public: A member of the public may request an item be placed on a future agenda during the public comment period of a meeting or through other communication with Council members or with staff. If the City Council or City Manager consent, such item will be agendized.

Emergenc;y Items: Emergency and non-agendized items may be added to an agenda only in accordance with state law. Emergency items are only those matters affecting public health or safety, such as work stoppages, disasters and other severe emergencies. Meeting to consider an emergency situation requires a majority vote.

Emergency meetings are very rare.

Uq~ency Items: On occasion, after the agenda is posted, an item arises that the Council would like to act on. Non-agendized items may be added to the agenda only if the Council makes findings that (1) the need to consider the item arose after the posting of the agenda and (2) that there is a need to take immediate action at this meeting of the City Council Procedures 2
City Council. These findings must be approved by a 4/5 vote; if less than four members of Council are present, the findings require a unanimous vote of those present.

H. Tips on the Dais
Televised Meetine:s: City Council meetings are live streamed through the City's website.

The City Council Chambers is equipped with a public address system. The system provides microphones at the dais, staff table, and podium. There are several issues related to the sound system which are important to keep in mind:
• When you want to talk, speak directly into the microphone. • Never say things near a microphone you do not want to be heard. • Have all speakers come forward to the podium. Do not allow people to speak from the audience.

Certain colors of clothing present difficulties to the television system and, thus, can be distracting to viewers at home. White causes glare and makes the picture around it appear dark, causing loss of detail. Bright red and orange reproduce poorly on television and can also cause glare problems. Clothing with fine patterns, such as stripes and grids, can cause a rainbow effect in the picture that is extremely distracting.

Shiny objects that reflect light should be avoided. Good colors for television include blues, greens, browns, grays, and most pastels.

I. Order of Business
The City Council establishes the general order of meetings. This section summarizes each meeting component.

1. Proclamations, Recognitions. Presentations.

This is the time for Council proclamations, presentations, and for special recognition of persons, organizations, activities and events. Unless any Council member objects, in which case a vote is required, proclamations will be read aloud and considered adopted by consensus of the entire Council.

2. Public Participation.
a. Scheduled Citizens. Persons who have, by the deadline set for the agenda, requested to address the Council are usually given the opportunity to do so at this time. The subject they wish to discuss is identified on the agenda and any supporting materials are usually sent out with the agenda packets to the Council members. Each speaker is limited to one 3-minute opportunity to speak, unless the Council makes an exception due to special circumstances.

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3. b. Public Comment on Non-Agendized Items. This is the time for members of the public to address the Council on non-agendized matters. Each speaker is limited to one 3-minute opportunity to speak, unless the Council makes an exception due to special circumstances. If the matter is expected to take more than three minutes, it should be moved to the end of the regular agenda. The purpose for this is to avoid inconveniencing those who have planned ahead and taken the necessary steps to have their issues properly agendized. Persons who wish to raise non-agendized items should be cautioned that in most cases the Brown Act prohibits the Council from taking formal action on the item, but that they will be heard, and then the matter will be referred to staff for appropriate follow-up. c. Public Comment on A2endized Items. The Brown Act requires that the public be given the opportunity to address the Council on all matters on the agenda (matters to be discussed in either open or closed session, but not the right to enter the closed sessions) before action is taken on those items. At the beginning of each meeting, the Mayor should inform persons in the audience that they are welcome to come forward to the podium and wait to be recognized if they wish to address the Council on any items under discussion. Each speaker is limited to one 3•minute opportunity to speak, unless the Council makes an exception due to special circumstances. d. General Rules for Public Participation. No member of the public may be required to provide an address as a precondition to participation, but they may be invited to do so voluntarily. Dialogue between members of the public and Council members or staff should not be permitted. When a member of the public is speaking, other members of the public should not be permitted to interrupt or otherwise disrupt the speaker. Speakers may be directed not to use profanity or make personal attacks on Council members or staff, but speakers cannot be restricted from being critical of Council, staff or other public officials. They may not be prohibited from "criticizing the policies, procedures, programs or services of the City, or the acts or omissions" of City officials.

Approval/Correction of Minutes.

Minutes of the City Council meetings shall be submitted to the Council for approval and/or correction in draft form at a subsequent regular meeting. It is the policy of the City Council that only members of the Council and the City Clerk have the authority to make revisions to the minutes subject to a majority vote of the City Council. Council members having only typographical corrections to minutes are encouraged to provide such corrections to the City Clerk directly and need not wait to submit such corrections at a meeting.

4. Consent Calendar.

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5. Those items on the Council agenda which are considered to be of a routine and non-controversial nature by the City Manager are placed on the "Consent Calendar." These items shall be approved, adopted, accepted, etc., by one motion of the Council. For example, final reading and adoption of ordinances, various resolutions approving agreements, minor budgetary items, status reports, and routine City operations are usually on the consent agenda.

Council members or members of the public may request that any item listed under "Consent Calendar" be removed from the Consent Calendar, and Council will then take action separately on this item. Items which are removed ("pulled") by members of the Council for discussion will typically be heard immediately following adoption of the Consent Calendar unless the Council chooses to move such items to a later place in the agenda.

Minor questions: A Council member may ask questions on any item on the Consent Calendar. When a Council member has a minor question for clarification concerning a consent item which will not involve extended discussion, the question will be addressed before adoption of the Consent Calendar. Council members are encouraged to seek clarifications prior to the meeting, if possible.

No vote: When a Council member wishes to pull an item simply to register a dissenting vote, the Council member shall inform the presiding officer that he or she wishes to register a dissenting vote without discussion. This item will be handled along with the rest of the Consent Calendar, and the City Clerk will register this member's "no" vote in the minutes on this particular item even though such member then votes to approve the Consent Calendar.

Public Hearings.

The City Council schedules "public hearings" from time to time on various issues, usually because of legal requirements that special opportunities be given to the public, or to certain segments of the public specially affected by the matter, to listen to the discussion and to provide input to the Council before a decision is made.

When a public hearing is scheduled, staff should be asked to present a staff report first, then the public hearing should be opened and the public should be invited to speak; then the public hearing should be closed and the matter returned to the Council for discussion and action.

Once the public hearing has been closed, persons from the audience should not be allowed to participate in the Council discussions unless in response to a specific question posed by a member of the Council to someone in the audience.

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6. Although it is proper to do so, there is no legal requirement to structure the public hearing so that proponents of the measure or project speak first followed by those in opposition with a conclusion [or rebuttal] by the proponents.

However, if the Mayor or Council prefers to conduct the hearing in this manner, it may prove useful to do so when there are several different speakers and extended debate.

Regular Business Items.

Regular items are shown on the agenda in the order they will be considered unless, before discussion of regular agenda items begins, a motion is made and passes which will change the order of the agenda to accommodate a request and to change the order of the agenda.

7. Staff and Council Reports.

8. This time on the agenda provides members of the Council an opportunity to briefly discuss matters not specifically agendized including brief announcements, questions of staff, AB 1234 reports on attendance at reimbursed conferences/meetings, and requests for items to be placed on the agenda at a future meeting. Examples of appropriate communications would be sharing of information of general interest received from outside agencies, sharing comments or inquiries received from individuals or from the public, raising requests to agendize future items, making reports of his or her own activities, or making announcements of general interest to the public.

State law provides that Council can take action only on such matters which have been noticed at least 72 hours in advance of a regular meeting or at least 24 hours in advance of a special meeting, unless special circumstances are found to exist (as mentioned above in Section G). Formal action or approval on nonagendized items is not allowed, and such items should normally be placed on the agenda of the next regular meeting, if formal Council action is required.

Closed Sessions.

The ability of a City Council to conduct sessions not open to the public is restricted by State law to ensure open proceedings. Certain defined circumstances exist wherein a City Council may meet without the public in attendance. Such circumstances include:
a. Real Property: Closed sessions to discuss the purchase, sale, exchange, or lease of real property may be conducted. The location of the real property, the identities of the City's negotiator, and the person(s) with whom the City may negotiate must be announced in open session prior to the closed session (Cal Govt. Code Section 54956.8).

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b. Litigation: Closed sessions may be conducted to discuss pending litigation, a significant exposure to litigation, or the decision to initiate litigation. If the litigation is pending, the litigation or title must be identified in open session prior to the closed session unless the Council states that to do so would jeopardize its ability to conclude existing settlement negotiations or serve legal documents (Cal Govt. Code Section 54956.9).
c. Compensation (salaries and benefits) of employees: Closed sessions may be held to discuss employee compensation; to review the City's position and instruct designated representatives (Cal Govt. Code Section 54957.6). d. Personnel: Closed sessions are allowed to discuss the appointment, employment, evaluation of performance, dismissal of a public employee, or to hear complaints against the employee unless the employee requests a public hearing (Cal Govt. Code Section 54957).

Confidentiality: Members of the Council, employees of the City, or anyone else present shall not disclose to any person the content or substance of any discussion which takes place in a closed session unless authorized to do so by the Council.

Scheduling: Typically closed sessions will be scheduled after the public portions of the meeting. This is done so that public portions of the meeting are not interrupted by closed sessions.

Announcements: Prior to each closed session, the purpose of the closed session shall either be announced from the dais or by reference to the published agenda.

Immediately after each closed session, an announcement shall be made from the dais either (1) summarizing any reportable action taken in closed session or (2) stating that no reportable action was taken. When no reportable action was taken, it's advisable to announce the general nature of the business conducted in closed session to enhance public confidence in the process.

J. General Procedures of the Council

1. Mayor and Vice-Mayor: Election.

The Council shall select a Mayor and Vice-Mayor from its membership for one• year terms by majority vote of the Council (at least 3 votes). The election shall be held at the second Council meeting in December of each year with the new Mayor and Vice Mayor assuming their duties January 1 of the new year.

Vacancies in such positions shall be filled by the Council in the same manner for the unexpired portion of the term.

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2. Duties of Presiding Officer.

The Mayor is the presiding officer and acts as the Chair at all Council meetings.

In the absence of the Mayor, the Vice-Mayor serves as the presiding officer. The Mayor states every question coming before the Council before it takes action, announces the decision of the Council on each vote, maintains order during the meetings, conducts any public hearings, explains the purpose and order of the proceedings to the public in attendance, greets and thanks all participants and, with the assistance of the City Attorney, decides questions of order. The Mayor also makes any legally required announcements including, but not limited to, the announcements required by the Brown Act.

The Mayor appears at public functions to represent the City unless the Council designates another person to do so with regard to a specific event.

The Mayor has no independent authority to unilaterally make appointments to committees, commissions and other City positions, but only that authority which the Council from time to time confers upon the Mayor by formal action taken during Council meetings (see Section K regarding City Council appointments).

3. Seating Arrangement of the Council.

4. 5.

6. The Vice-Mayor is seated immediately next to the Mayor. The entire Council decides the remaining seating arrangements for its members in the event of any disagreements among members.

Signing of City Documents.

The Mayor, unless unavailable, shall sign all ordinances, resolutions, contracts, and other documents which have been adopted by the City Council and require an official signature, except in those cases where the City Manager or another individual has been specifically authorized by Council action to sign particular documents. In the event the Mayor is unavailable, the Vice-Mayor is authorized to sign on behalf of the City in his or her place.

Quorum.

Three-fifths of the Council members constitutes a quorum for the transaction of business.

Distribution of Agenda and Written Materials.

At least 72 hours prior to regular meetings of the Council [ and 24 hours prior to any special meetings], an agenda must be posted which contains a brief general description of each item to be transacted or discussed at the Council meeting.

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7. 8.

Copies of that agenda will be mailed before each meeting to each Council member and to members of the public and the press who have requested to receive copies.

Writings which are public records distributed during Council meetings shall be made available to the public in attendance at that same meeting, if such documents were prepared by City staff or City officials. If prepared by some other person, copies of such documents will be made available following the meeting. A reasonable fee may be charged to offset the actual cost of making such copies.

Closed Session Procedures and Announcements.

Prior to any closed session, the Mayor or his or her designee shall generally describe the subjects to be discussed in such session or shall refer the public to the numbered item on the agenda which describes the subject.

At the conclusion of each closed session, the Council shall reconvene and the Mayor shall announce any final decisions made on subjects required to be reported or, if there are no such subjects, shall generally describe what the Council did in closed session without compromising the integrity and confidentiality of what was discussed.

Council members, outside of closed session, shall not inform others about the content of any closed session discussions or decisions unless required to do so by court order or provisions oflaw.

Discussion and Votin~ Rules.

Discussion:
a. Obtaining the floor: A member of the City Council or staff shall first address the Mayor and gain recognition. Comments and questions should be limited to the issue before the Council. Direct exchanges between Council members and members of the public seated in the audience should be avoided.

Members of the public should not be allowed to directly question staff members in attendance, but all such questions should be addressed through the Mayor for response.
b. Questions of staff: The Mayor, or any member of the Council upon being recognized by the Mayor, may direct questions to the City Manager to then either be answered by the City Manager, the staff, or deferred to gather additional information. Staff members responding to Council questions should, whenever time permits, come forward to the staff table or podium for response. This not only provides a proper example for members of the City Council Procedures 9
public in attendance, but also allows the microphones to be used properly in televising the proceedings.
c. Interruptions: Once recognized, a Council member should not be interrupted while speaking, except to make a point of order or personal privilege. If a Council member is called to order while speaking, the individual should cease speaking until the question of order is determined. d. Tabling procedures: A motion to table immediately stops discussion and causes a vote to postpone the matter indefinitely or to a date and time certain.

Votin~:
e. Procedures used for motions: Rosenberg's Rules of Order are hereby adopted as the rules of parliamentary procedure for conducting City Council meetings.
f. Requirement to vote: All Council members present, who are not abstaining, are required to vote. It shall be the duty of the recording clerk to ensure that a vote is taken on every matter requiring formal action and that each and every non-abstaining member actually casts a vote, which such clerk then records in the minutes of the meeting.
g. Requirement of a second: A second is required on all matters before they can proceed to a vote. If no second is received, the motion dies for lack of a second. Seconding a motion does not indicate or imply that the member doing so will vote in favor of the motion. It simply allows the matter to be discussed and proceed to a vote.
h. Motions and votes by presiding officer: The presiding officer, whether it be the Mayor or Vice-Mayor or any other member of the Council, is allowed to make and second motions and to cast votes in the same manner as any other member of the Council.
i. Roll call votes: Any member of the Council may request that a matter being voted on be handled by roll call vote. Upon such a request being made, the clerk shall poll the Council and record the votes being cast. j. Right of protest: A Council member is never required to state the reason for a dissenting vote.
k. Disqualification and abstention from voting: Members of the Council are required to vote on all matters coming before the entire Council for a vote, unless an individual member chooses to abstain or is disqualified due to a conflict of interest as defined in the City's "Conflict of Interest Code." If a member has a question whether or not he or she has a conflict, he or she City Council Procedures 10
should discuss that issue with the City Attorney or seek advice from the Fair Political Practices Commission before the meeting whenever time permits. If a member abstains due to a conflict of interest or potential conflict of interest, he or she shall, immediately before the matter is considered:
(1) publicly state the specific nature of the conflict in enough detail to be understood by the public (disclosure of exact street address of Council member's home or business is not required);
(2) recuse himself or herself from discussing or voting on the matter; and (3) leave the room until after the discussion, vote or other disposition of the matter is concluded, unless the matter is on the "Consent Agenda" ( except that such official may speak on the issue from the floor during the time that the general public speaks on the issue).
l. Tie votes: A tie vote is equivalent to a vote which has failed. A tie vote to grant or approve something doesn't represent consent nor does it represent denial of permission to act. It leaves the status unchanged and, if the proponent of the action requires permission to move forward, he or she has simply failed to obtain it.

On the other hand, a tie vote to deny or disapprove something doesn't represent either approval or denial. It also leaves the situation unchanged and, if the proponent of the action requires permission to move forward, he or she has again failed to obtain it.

If a tie vote occurs on an appeal of an action coming up from the Planning Commission, the appeal has neither been granted nor denied. Since the status quo is unchanged, the end result is the equivalent of a denial of the appeal since the appellant in order to overturn the action taken by the Planning Commission must obtain some action at Council level. A tie vote is the equivalent of no action, except insofar as it satisfies the legal requirement that the matter be presented to the Council for consideration.

If a tie vote occurs with the fifth member of the Council absent from the meeting and not due to the abstention of such member, the matter will automatically be continued until the next Council meeting when such member can be present to cast a vote unless there is a time limit imposed by law, which precludes such a continuance.
m. Public participation following a motion: Public participation in the discussion should be avoided in most cases after a motion has been made, unless it is specifically invited by a member of the Council.

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9. Consensus. Motions. Resolutions and Ordinances.
a. Consensus.

Occasionally it is appropriate for the Mayor to simply request a "consensus" of the Council on routine issues, such as referring matters to staff without taking a formal vote. Proclamations are considered to be adopted by consensus without a vote unless any member of the Council requests a vote be conducted.
b. Motions.

Most actions of the City Council may be taken by motion on a voice vote.

Except for ordinances, resolutions, and orders for the payment of money, motions pass upon the affirmative vote of a majority of the members voting.

For example, if two members are absent or abstain from voting, a 2-1 vote is sufficient to adopt most motions.
c. Resolutions.

Resolutions are a more formal way of memorializing actions of the City Council. A resolution, rather than a motion, is only necessary when required by law. Unless a higher vote is legally required, all resolutions must be passed by at least three affirmative votes. Condemnation resolutions require the affirmative vote of at least four members.
d. Ordinances.

With the exception of urgency matters, ordinances cannot be adopted until at least five days following their introduction and can only be adopted at a regular City Council meeting. Changes to an ordinance once introduced, except for minor clerical changes, require the ordinance to be reintroduced and at least five more days to pass before adoption. Ordinances require the affirmative vote of at least three Council members. Ordinances do not have to be read in full at the time of introduction or adoption [they may be read by "short title" only] if the Council votes to read only the title. The Council usually votes to do so as one of the items on its "Consent Calendar." Ordinances become effective 30 days after their adoption except for urgency ordinances, ordinances relating to elections, street improvement proceedings, taxes and certain other ordinances which take effect immediately.

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10. Rules for Hearings.
a. Le2islative Matters.

When the Council has a "legislative" matter before it, the individual Council members may investigate the issue before the meeting, discuss the matter with whomever they wish and, if they consider it politically expedient, even announce their "position" on the issue before the meeting of the entire Council. They, of course, cannot seek a consensus on the issue before the meeting by contacting a majority of the other members of the Council [either personally or by contacting one and, in turn, having that one contact another ("serial meetings")].
b. Quasi-Judicial Matters.

When the matter coming before the Council is of a "quasi-judicial" nature (i.e. appeals from Planning Commission matters), the individual members of the Council may discuss such matters with proponents, opponents, or others before the meeting, but must report any such discussions or "ex parte communications" at the meeting at which the matter is considered.

Similarly, if any Council member receives information outside of the meeting by means other than discussions with interested parties, which such member will take into account in making a decision, he or she must report that information to the rest of the Council in public during the discussion period.

If findings are required to be made, Council members should be careful to declare precisely what evidence they have considered which allows them to make the required findings. In doing so, they can refer to information in the staff report and adopt that information as a part of their motion. However, they should keep in mind that the staff report was prepared prior to the public hearing and that new information not previously known to staff may come out during the hearing. Council may rely on staff to outline what findings are required to be made to support a particular motion, but the Council itself is responsible to state on the record what facts it has considered which supports each of the required findings.

K. City Council appointments to Committees, Commissions and Advisory Boards In order to facilitate the efficient conduct of City business and to represent the City to other agencies, the City Council participates in, or appoints representatives to, many different committees, commissions, and advisory boards. Unless otherwise provided by the bylaws or policies of individual committees, commissions, and advisory boards, the Council will adhere to the following general guidelines concerning appointments to these committees, commissions and boards.

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1. Annually in January, the City Council will meet to consider appointments to committees, commissions and advisory boards that may be necessary during the coming year.

2. Recruitment for public members to serve on committees, commissions and advisory boards shall be conducted in accordance with Government Code Section 5497 4 when a vacancy occurs, unless specific recruitment procedures are outlined in the individual committee, commission or board bylaws.

Notwithstanding, the City Council may, if it finds an emergency exists, fill any unscheduled vacancy immediately. A person appointed to fill the vacancy shall serve only on an acting basis until the final appointment is made.

3. Appointments of City Council members to serve on committees, commissions, or advisory boards shall be consistent with the bylaws or policies of the individual committee, commission, or advisory board. In the event no such bylaws or policies exist, appointments shall be concurrent with the Councilmember's current term of office. If it is in the best interest of the City, the Council may extend the appointment for additional terms. All appointees, whether Council members or public members, shall serve at the pleasure of the City Council.

4. Appointments to committees, commissions or advisory boards, whether City Council or public members, shall be made by motion and majority vote of the City Council. Should there be more public member applicants than positions available, the Council will select the appointee based on criteria and procedures to be determined as appropriate at the time.

5. The Mayor's Selection Committee, consisting of the mayors of all three cities in Shasta County, meets annually in January to fill certain committee and commission positions of regional interest. The City Council, at its annual review in the first meeting of January, will consider and make recommendations to the Mayor for positions to be filled at the annual Mayor's Selection Committee meeting.

6. As required by State law and the City's Conflict of Interest Code, an appointee may be required to disclose certain financial information on a Statement of Economic Interests form and/or advise the Council of any potential conflict of interest which may arise if he/she is appointed. The City Clerk will provide appointees with forms and instructions following their appointment. Those appointees who are required to file must file these forms within 30 days of appointment.

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AGENDA ITEM
February 18, 2025 City Council Meeting
r Submittal By:

To: Honorable Mayor and Members of the Anderson City Council Through: Joey Forseth-Deshais, City Manager
From: Cindy Wheeler, Finance Director
Date: February 18, 2025
!SUBJECT
Annual adoption of City Investment Policy

I RECOMMENDATION
The Finance Director recommends that the City Council, by motion:

Adopt a Resolution establishing the City's Duplication of Benefits Policy for CDBG, CDBG-CV, CDBG-DR, & other Federal Funding.

I FISCAL IMPACT
Adoption of the City Duplication of Benefits Policy will not affect city expenses but bring us into compliance with funding sources used by the City of Anderson. !DISCUSSION and BACKGROUND
The Duplication of Benefits (DOB) policy is an essential requirement under HUD funding guidelines. While regular CDBG program funding does not generally require a DOB policy unless explicitly mandated by HUD and required by HCD, this policy is critical for CDBG-CV (COVID-19), CDBG-DR (Disaster Recovery), and other federal or state-assisted activities to ITEM 6.6 PAGE1 2/18/2025
ensure compliance with federal disaster recovery principles and prevent overlapping assistance from multiple sources.

These programs have been used by the City and at the time of setting up the CDBG-CV 1 program, this directive had not been provided. Therefore, this policy adoption is required for the City of Anderson to be in compliance with the entire program.

The Finance Director recommends that the City Council consider and adopt the attached policy.

I ATTACHMENTS

1. Resolution adopting the City of Anderson Duplication of Benefits Policy ITEM 6.6 PAGE2 2/18/2025
RESOLUTION NO. 25-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANDERSON ADOPTING A

DUPLICATION OF BENEFITS POLICY FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), CDBG DISASTER RECOVERY (CDBG-DR), CDBG CORONAVIRUS (CDBGCV) PROGRAMS, AND OTHER FEDERAL FUNDING THAT REQUIRES THIS ACTION WHEREAS, the City of Anderson (the "City") administers federal funding under the Community Development Block Grant (CDBG) program, including CDBG Disaster Recovery (CDBG-DR) and CDBG Coronavirus (CDBG-CV) funding, as well as other federal funding that requires compliance with Duplication of Benefits (DOB) regulations, in accordance with the U.S. Department of Housing and Urban Development (HUD) and the California Department of Housing and Community Development (HCD); and
WHEREAS, Section 312 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5155), as well as HUD regulations and guidance, prohibit the use of federal funds to provide financial assistance where benefits have already been received from another source for the same purpose, known as "Duplication of Benefits" (DOB); and WHEREAS, to ensure compliance with applicable federal regulations and avoid duplication of benefits, the City must establish a policy outlining procedures to prevent and address DOB for all CDBG, CDBG-DR, CDBG-CV funded activities, and other federal programs subject to DOB requirements; and
WHEREAS, the City's Duplication of Benefits Policy sets forth requirements for evaluating and documenting other financial assistance received by beneficiaries to prevent the duplication of benefits; and
WHEREAS, the adoption of a Duplication of Benefits Policy is necessary to ensure the integrity of CDBG programs and other federally funded programs, maintain compliance with federal regulations, and protect against the improper use of federal funds; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Anderson as follows:

1. The City hereby adopts the Duplication of Benefits Policy for the administration of CDBG, CDBG-DR, CDBG-CV funded activities, and other federal funding programs requiring this action, as attached hereto as Exhibit A.

2. The City Manager or their designee is authorized and directed to implement the Duplication of Benefits Policy and ensure that all CDBG program funds and other applicable federal funds are administered in accordance with federal regulations and applicable guidance.

3. City staff is directed to provide necessary training and oversight to ensure compliance with the adopted policy and to make amendments as required to reflect changes in federal regulations or program guidance.

4. This resolution shall take effect immediately upon its adoption.

PASSED, APPROVED, AND ADOPTED this 18th day of February 2025 by the City Council of the City of Anderson, State of California.

AYES:

NOES:

ABSENT:

ABSTAIN:

Susie Baugh, Mayor of the City of Anderson
ATTEST:

Christy White, City Clerk
Exhibit A: City of Anderson Duplication of Benefits Policy City of Anderson
Duplication of Benefit (DOB) Policy
APPROVED: February 18, 2025
EFFECTIVE DATE: February 18, 2025
I. Introduction
The Duplication of Benefits (DOB) policy is an essential requirement under HUD funding guidelines. While regular CDBG program funding does not generally require a DOB policy unless explicitly mandated by HUD and required by HCD, this policy is critical for CD BG-CV (COVID-19), CDBG-DR (Disaster Recovery), and other federal or state-assisted activities to ensure compliance with federal disaster recovery principles and prevent overlapping assistance from multiple sources.

Applicability of DOB Policy by Funding Type

1. Regular CDBG Program Funding
o DOB Policy Applicability: Not required as a standard practice. o Regular CDBG program activities focus on addressing unmet needs without requiring formal DOB calculations unless HUD/HCD mandates otherwise.

2. CDBG-CV Funding (COVID-19 Response)
o DOB Policy Applicability: Required.
o The CARES Act explicitly mandates DOB prevention for all CD BG-CV funding activities, such as economic development, rental assistance, public services, and other COVID-19 mitigation efforts, ensuring that funding does not overlap with other federal, state, or local COVID-19 relief efforts.

3. CDBG-DR Funding (Disaster Recovery)
o DOB Policy Applicability: Required.
o Disaster recovery funding regulations require a DOB analysis to ensure recipients do not receive duplicate benefits from sources such as FEMA, SBA loans, or private insurance.

4. Other Federal and State Programs

o DOB Policy Applicability: Required when specified.
o Programs funded under federal or state initiatives may require DOB prevention procedures depending on the funding source and associated regulations. For example, infrastructure improvements or housing assistance funded by specialized grants may include DOB requirements.

Key Differences Between Programs
Funding
Type
Regular
CDBG

CDBG-CV
DOB Policy Applicability Reason
N t • d I HUD/HCD Regular program funding focuses on unmet o require un ess d 1 . .

I
. 'ti d t •t nee s, and DOB ana ys1s 1s not a general exp 1c1 y man a es 1 . . t reqmremen .

Ensures compliance with the CARES Act to Required for all activities funded under the CARES Act. prevent duplication of pandemic-related relief funding.

Required for all activities
CDBG-DR funded under disaster
recovery allocations.

Disaster recovery funding regulations
mandate preventing duplication of benefits
from federal, state, or local sources.

Other Required as dictated by
Programs specific grant requirements.

Why the Difference?
Some federal and state programs impose
DOB requirements to ensure proper
allocation of resources.
• Regular CDBG Funding focuses on addressing community development needs without specific disaster recovery or emergency response conditions. • CDBG-CV and CDBG-DR Funding are tied to specific events ( e.g., COVID-19, hurricanes, floods) where multiple funding streams may be available, making DOB prevention essential to avoid overcompensation.
• Other Programs may have tailored DOB requirements based on their legislative intent and funding guidelines.

Best Practices
Even if not explicitly required for regular CDBG funding:

1. Establish Clear Policies: Consider implementing basic DOB procedures for clarity and accountability.

2. Align with Federal Guidance: If HUD or other funding agencies issue waivers or special requirements for regular CDBG funds or other programs, having foundational DOB policies can streamline compliance.

Page I 2
City of Anderson
Duplication of Benefit (DOB) Policy
With this context, the following policy ensures compliance with HUD/HCD guidelines for CD BG-CV, CD BG-DR, and other applicable programs, providing a framework to assess and mitigate the risk of duplication of benefits across a variety of funded activities.

II. Purpose
The purpose of this policy is to ensure compliance with HUD's regulations, specifically for CD BG-CV, CD BG-DR, and other federally or state-funded activities, by preventing the duplication of benefits in the implementation of activities such as economic development, rental assistance, public services, housing rehabilitation, and infrastructure improvements.

This policy establishes procedures for assessing, documenting, and mitigating the risk of duplication of federal, state, or local assistance provided to beneficiaries.

III. Definitions

1. Duplication of Benefits (DOB): Occurs when a beneficiary receives financial assistance from multiple sources for the same purpose, and the total assistance exceeds the need.

2. Eligible Costs: Costs related to eligible CDBG activities, such as rental assistance, public services, housing rehabilitation, infrastructure improvements, or other operational expenses.

3. Other Assistance: Includes, but is not limited to:
o Paycheck Protection Program (PPP) loans.
o Economic Injury Disaster Loans (EIDL).
o State or local grants or loans.
o Insurance proceeds or private donations,
IV. Applicability
An analysis of DOB is required for all CD BG-CV and CD BG-DR funded activities. If the activity involves a one-time construction project, such as a public facility improvement or infrastructure installation, the DOB assessment is completed during project formulation and an analysis to of the project budget to document no duplicative assistance. If the activity is providing individual benefits such as subsistence payments, housing assistance, or economic development assistance, the DOB is repeated for each individual award. This policy applies to all applicants and beneficiaries of CD BG-funded activities, including but not limited to rental assistance, public services, housing rehabilitation, and infrastructure improvements, as governed by CDBG, CDBG-CV, and other HUD-related regulations.

V. Policy Requirements
A. Assessing Assistance Needs
Page I 3

1. Documented Need Assessment:
o Applicants must submit documentation detailing their unmet needs directly related to eligible CDBG activities.
o Needs must align with eligible costs outlined in the program guidelines.

2. Eligible Expenses:
o Expenses incurred for eligible activities, verified through invoices, payroll records, or other financial documentation.

B. Verification of Assistance Received

1. Certification of Assistance:
o Applicants must complete a Certification of Assistance form disclosing all financial assistance received or expected.
o The form must include:
• Source of funding.
• Amount received.
• Intended use of funds.
• Time period of assistance.

2. Review of Financial Documentation:
o Obtain and review supporting documentation for all disclosed assistance, including award letters, grant agreements, and bank statements.

C. Calculating Unmet Need

1. Formula:
o Unmet Need= Total Eligible Costs -Total Assistance Received. o Assistance received for purposes other than the identified unmet need will not be deducted.

2. Reconciliation:
o If total assistance exceeds eligible costs, the program will reduce the award to prevent duplication.

D. Preventing Duplication

1. Subrogation Agreement:
o All beneficiaries must sign a Subrogation Agreement requiring repayment of funds if additional assistance is received for the same costs.

2. Ongoing Monitoring:
o Monitor beneficiaries for 12 months post-assistance to ensure no additional duplicative funding is received.

E. Appeals Process
• Applicants may appeal DOB determinations by submitting a written request with supporting documentation within 15 days of notification.

City of Anderson
Duplication of Benefit (DOB) Policy
VI. Documentation and Forms
Required Forms

1. Application Form:
o Includes applicant details, activity information, and initial DOB certification.

2. Certification of Assistance Form:
o Disclosure of all sources of assistance, amounts received, and intended uses.

3. Duplication of Benefit Worksheet:
o Documents the calculation of unmet need.

4. Subrogation Agreement:
o Legal agreement for repayment of duplicative funds.

5. Award Letter:
o Specifies the approved assistance amount and conditions.

Documentation Checklist

1. Applicant Financials:
o Tax returns, profit/loss statements, payroll records (if applicable).

2. Supporting Invoices/Receipts:
o Proof of eligible costs incurred.

3. Assistance Records:
o Award letters, agreements, or certifications for other funding sources.

VII. Implementation Procedures

1. Application Review:
o Program staff will review applications for completeness and adherence to eligibility requirements.
o DOB Worksheet will be completed for each applicant.

2. Approval Process:
o Applications meeting requirements will proceed to the award phase. o Applicants with potential duplication issues will be contacted for clarification.

3. Monitoring and Reporting:
o Beneficiaries will be monitored quarterly to ensure compliance. o Reports will be submitted to HUD/HCD per CDBG and CDBG-CV requirements.

VIII. Training
Program staff will receive training on HUD DOB policies and procedures for CDBG activities to ensure accurate implementation.

Page IS

AGENDA ITEM
!February 18, 2025, City Council Meeting!
To:

Through:

From:

Date:

I SUBJECT
Honorable Mayor and Members of the
Joey Forseth•Deshais, City Manager
Darin Hale, Councilmember
February 18, 2025
sented By:
erson City Council
Discuss sending letter to government officials prioritizing issuing infrastructure grants to rural communities.

I RECOMMENDATION
Staff recommends:

1. Discuss and provide direction to staff if we should send a letter to government officials prioritizing infrastructure funding for rural communities

2. Discuss what key topics should be outlined in this letter.

3. Discuss which government entities the letter should be addressed to.

I FISCAL IMPACT
No fiscal impact.

I DISCUSSION and BACKGROUND
Rural communities consistently struggle with gaining the necessary funding for infrastructure improvements. Councilmember Hale has an interest in discussing sending a letter to government officials requesting prioritization of funding for rural communities in future grant opportunities.

I ATTACHMENTS
None
ITEM 8.1 PAGE1 2/18/2025

AGENDA ITEM
February 18, 202 5 City Council Meeting
Approved for Submittal By:

To Be Presented By:
heeler, Finance Director/
Treasurer
To:

Through:

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

Date:

I SUBJECT
Cindy Wheeler, Finance Director /Treasurer
February 18, 2024
2024-2025 Budget Update

I RECOMMENDATION
The Finance Director recommends that the City Council:

No action is requested as this is informational only.
l FISCAL IMPACT
This report is informational only.

I DISCUSSION and BACKGROUND
We are almost two-thirds of the way through the 2024-2025 budget; therefore, staff would like to take this time to review how revenues and expenditures are performing at this point in the year. Revenue and expenditure numbers are recorded in January for the general fund because we receive our first installment of property tax in January, which is approximately 58% of the budget year. Generally, when we discuss General Fund Revenues, we discuss the top 3 categories which are Sales Tax, Property Tax, and Transient Occupancy Tax.

ITEM 8.Sa PAGE1 2/18/2025
These three (3) categories make up about 86% of our General Fund Revenues. Below is a table comparing budgeted general fund revenues to actual receipts for the top three (3) revenues through January 2025. Additionally, we have added information from the same time frame in January 2024 as a comparison.

General Fund Revenues
I EISC4L l'.E4B __ .., ----
Revenue Budget ReClllpU to Date %
Property Tax 2,804,938.00 1,660,683.41 59% Pro e Tax 2495 893.00 1,602,494.21 64% Sales Tax 4.222,600.00 1,494.528.75 35% Sales Tax 4469000.00 2472.990.84 55% Transaction & Use Ta 2,270,000.00 694,872.73 31% Transaction & Use Tax 2,Z00,000.00 1,317.618.48 60% Transient Occupancy Transient Occupancy
Tax 665,900.00 204-045.84 31% ·Tax 830000.00 311948.53 381)!, All other GF Revenue 1,574,054.00 566,993.91 36% All other Gf Reve111t.e 1,483,572.00 714299.94 48()!, Total CF Revenue 11,537,492.00 4,621,124.64 40% Total GF Revenue 11,478,46S.OO 6,419,352.00 56% Revenues are being received below what is expected at this point. Transient Occupancy Tax (TOT) is lower than expected due to one hotel remaining delinquent in their TOT payment, Property Tax is on track as predicted. We receive Property Tax payments in slightly uneven payments with the bulk received in January and the final bulk payment in May. Sales Tax and Transaction and Use Tax are averaging less than expected as well. As mentioned in the 2023-2024 mid-year update, two main factors likely affecting these revenues are higher inflation and private•party sales. Although interest rates are set to hold and not increase, housing has slowed in the City of Anderson, likely due to the aforementioned factors.

General Fund Expenditures
Total general fund expenditures for 2024-2025 were originally budgeted at $ 11,543,010 with actual expenditures through January 2025 (again which is 58% of the budget year) coming in at $7,755,158.05 or approximately 67%. This is exactly where general fund expenditures were at last fiscal year.

Expenditures are still on track at this point as staff is remaining as conservative as possible.

Supply chain issues and higher inflation have remained a concern; however, staff is very diligent in researching pricing for needed supplies which is reflective of expenditures remaining closely on target.

The City continues to have budgeted positions covered either by a consultant or current staff performing more than one job, impacting expenses in the general fund.

During a meeting with our Sales Tax Consultants, HdL earlier this month, it was projected that sales tax will be down 1.1 % in the next two quarters. It was also stated that they are projecting building and permit growth in the upcoming quarters, which is good news.

General Fund Reserve
General Fund reserves are projected to decrease by roughly $780,000 should revenues be received as budgeted and expenditures continue to trend the same. As always, staff continually monitors both revenues and expenditures for needed adjustments. We just ITEM 8.Sa PAGE2 2/18/2025
finished up our audit for 2023-2024 and the expected decrease to the General Fund Reserve in 2023-2024 by approximately $1,915,309 for a total of $2,657,902 remaining.

Water and Sewer Revenues
EISt4L 1'.E4B l '. :!i
Revenue Budget ReceiJJts to Dare
Water 2,591,341.00 1,491,085.40
Sewer 1.895,577.00 744,712.46
Total Enrerprise
Revenue 4,486,918.00 2,235,797.86
96 57.5%
393%
50%
Sewer
Total Enterprise
Revenue
1,945 895.D0 826 911.79 42.5%
3, 758,214.00 1,951,091.01 52%
The Water Revenue is trending down from the previous year. However, they are in line with 58% of the budget year as 57.5% received plus the water rate increases implemented will help this fund to finish the year with an increase to the reserves. Sewer Fund revenues are also coming in lower than projected. Sewer revenues are collected with resident's property tax bills, and the City receives these revenues in January and May. The State of California routinely enacts legislation requiring local governments to implement regulations without the necessary funding to finance the regulations. Staff are diligent in balancing the need to maintain the infrastructure while also managing the costs. The city is currently in the middle of a wastewater rate study for this reason. Wherever possible staff is researching grants that can be used to enhance our financing.

Water fund expenditures are budgeted at $2,177,502 and are at 82% or $1,804,268.73.

Sewer fund expenditures are budgeted at $2,404,204 and are at 59% or $1,432,084.46.

Gas Tax Funds and Other Funds
State and local gas tax revenues are coming in at $588,169 or 45% and expenditures are at $1,087,544 or 68%. While expenses appear high at this time, revenues are also trending on track of annual gas tax revenues which are still to be received through June 30. All other funds of the City are performing as expected at this point in the fiscal year. Capital Improvement Funds are performing lower than anticipated, but with the projection of an uptick of development this could reflect in the 2024/2025, or 2025/2026 fiscal years.

Potential Economic Factors/Trends:

The following economic factors may have a significant effect on the National and Local economies. Staff is actively monitoring these issues for their possible effect on City operations:

Staffing and recruitment
Supply Chain issues
Fuels Costs
Inflation
Reduction in Single Family Home Sales
Unfunded requirementsfrom Legislative Prop 1383
Unfunded State & local mandates for both water and wastewater Utility Costs
ITEM 8.Sa PAGE3 2/18/2025

AGENDA ITEM
!February 18, 2025, City Council Meetin~
Qf----- dyWheeler, Finance Director
To:

Through:

Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
From: Cindy Wheeler, Finance Director
Date: February 18, 2025
jSUBJECT
2023-2024 Annual Comprehensive Financial Report

I RECOMMENDATION
The Finance Director recommends that the City Council:

1. Receive a presentation from the City's contracted auditor, Mark Hu of The Pun Group

2. Receive and file the annual financial 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 the presentation of financial data ITEM 8.Sb PAGE1 2/18/2025
to the City Council and many other interested parties. The Pun Group (TPG) audited these financial statements.

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, following 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 TPS Partner Frances Kuo and Mark Hu, the Finance Director, and the Accountant. The audit committee met on February 10, 2024. The items discussed were the City financial statements for the year ended June 30, 2024, the accompanying management discussion and analysis, and preparations for the planned 2024-2025 audit.
2023-2024 Ui&:hli&:hts
The Finance Director would like to take this opportunity to briefly review the highlights of the Annual Report for the fiscal year ended June 30, 2024, with the City Council. A public review copy of the Annual Report is also available in the City Clerk's Office.

Highlights of the 2023-2024 Annual Report include:
• Clean Audit Opinion. Independent auditing firm, The Pun Group, audited the City's financial statements for the fiscal year ending June 30, 2024. TPG provided the City with an unqualified audit opinion letter, indicating that the financial statements fairly reflect the City's financial condition on June 30, 2024. TPG will be attending the Council meeting this evening if there are any questions for Mark Hu 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 $2,085,313, which resulted in a decrease to General Fund Reserves. The year-end General Fund reserve decreased to $2,640,779 of which $118,255 is non-spendable, $275,688 is assigned, and $2.1 million is unassigned. Expressed as a percentage of annual General Fund expenditures of $13,850,963, the unassigned General Fund reserve balance stood at 15% on June 30, 2024, below the Council goal of 20% to 25% of expenditures. ■ This decrease in General Fund reserves is largely due to decreases in Transient Occupancy Tax, licensing and permits, and charges for services in addition to the inflationary costs of equipment, services, and utilities. • Overall, Sales Tax revenues increased from the 2023-2024 fiscal year by 1 %, Transient Occupancy Tax decreased by 20% in 2023-2024, and Property Tax revenue increased by 6% in 2023-2024. Assessed property values increased by about 4.9% as well in 2023-2024.

ITEM 8.Sb PAGE2 2/18/2025
■ Gas Tax Fund Results. Gas Tax Fund expenditures exceeded Gas Tax Fund revenues net transfers by $808,747 in fiscal year 2023-2024. The year-end Gas Tax Fund balance decreased to $823,579.
• 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 details, please see Note 12 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
$(140,188)
$(770,636)
$85,419
Total Net Position $4,035,793
Total Net Position $4,944,386
Total Net Position $(2,161,709)
• GASB 68. The City is reporting a Net Pension Liability of $16,926,545. This is an increase of $1,176,955 from the prior year. To gain perspective on this liability, the City of Anderson reports a Net Position of $41,233,876; the Miscellaneous Group reported a Net Pension Liability of $10,212,367, and the Safety Group reported $6,714,178. The City also reported a pension expense of $2,475,953. TPG will provide additional details on the reporting of the Net Pension Liability or GASB 68. Please see Note 8 in the financial statement for more information regarding pension reporting. • GASB 87. In the fiscal year 2021-2022, the City implemented GASB Statement 87, Leases. GASB 87 requires financial reporting of certain lease assets and liabilities. For information on GASB 87 see Note 6.
• GASB 96. In the fiscal year 2023-2024, the City implemented GASB Statement 96, Subscription-Based Information Technology Arrangements (SBITA). GASB 96 requires financial reporting of certain SBITAs for government end users. For information on GASB 96 see Note 6.
• GASB 91, 94, & 99. These GASB standards implemented in the fiscal year 2022-2023 were to report Conduit Debt Obligations, Public-Private and Private-Public Partnerships and Availability Payment Arrangements, And Omnibus 2022, respectively. These four standards are discussed further in Note 1 Section V., as well as Notes 5 & 6. • Recommendations in Management Letters. In the fiscal year 2023-2024 audit, TPG had recommendations for strengthening internal controls. Management agrees; however, we have implemented processes in the coming years to increase clarity and efficiency in reporting, which will strengthen internal controls.

Thanks and Appreciation
The Finance Director would like to take this opportunity to thank The Pun Group audit personnel and the employees of the Finance Department for their work in the preparation of the financial statements, in addition to planning and performing the annual audit. The ITEM 8.5b PAGE3 2/18/2025
Finance Director would also like to thank Mayor Baugh, Vice Mayor Gallier, and Nolda Short for their valuable contributions to the Audit Committee.

I ATTACHMENTS

1. Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2024.

2. Letters to the Audit Committee.

3. GANN final report
ITEM 8.Sb PAGE4 2/18/2025

CITY OF ANDERSON
FISCAL YEAR 2023-2024

ANNUAL COMPREHENSIVE FINANCIAL REPORT

City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal ................................................................................................................................................ i Organization Chart ................................................................................................................................................. v Officials of the City of Anderson, California ........................................................................................................ vi

FINANCIAL SECTION
Independent Auditors’ Report on the Financial Statements ............................................................................ 1 Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ................... 5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ........................................................................................................................ 18 Statement of Activities ............................................................................................................................ 20 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet .................................................................................................................................... 26 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position .................................................................. 29 Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................... 30 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the
Government-Wide Statement of Activities and Changes in Net Position .................................. 32 Proprietary Fund Financial Statements:

Statement of Net Position ................................................................................................................. 34 Statement of Revenues, Expenses, and Changes in Net Position ..................................................... 37 Statement of Cash Flows .................................................................................................................. 38 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ................................................................................................. 43 Statement of Changes in Fiduciary Net Position .............................................................................. 44 Index to Notes to the Basic Financial Statements .......................................................................................... 47 s
Notes to the Basic Financial Statements .................................................................................................... 49 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):

Budgetary Comparison Schedule – General Fund ......................................................................................... 87 Budgetary Comparison Schedule – Gas Tax Special Revenue Fund............................................................. 88 Budgetary Comparison Schedule – ADAP and Home Special Revenue Fund .............................................. 89 Budgetary Comparison Schedule – CDBG Special Revenue Fund ............................................................... 90 Budgetary Comparison Schedule – Low and Moderate Income Housing Special Revenue Fund ................ 91 Notes to the Budgetary Comparison Schedule .............................................................................................. 93 Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios ....................... 94 Schedule of Contributions – Pensions ........................................................................................................... 96

Supplementary Information:

Nonmajor Governmental Funds:

Combining Balance Sheet ..................................................................................................................... 103 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............................. 107 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

Street Lighting Special Revenue Fund............................................................................................ 111 COPS and LLEBG Grants Special Revenue Fund ......................................................................... 112 EDBG Special Revenue Fund ......................................................................................................... 113 South Ridge Assessment District Special Revenue Fund ............................................................... 114 Vineyard Lighting and Landscape Special Revenue Fund ............................................................. 115 Silvergate Sanitary Assessment District Special Revenue Fund .................................................... 116 Police Facility and Corp Yard Capital Projects Fund ..................................................................... 117 Drainage Capital Projects Fund ...................................................................................................... 118 Parks Capital Projects Fund ............................................................................................................ 119 Traffic Capital Projects Fund .......................................................................................................... 120 I-5/Deschutes Offramp Capital Projects Fund ................................................................................ 121 Custodial Funds:

Combining Statement of Fiduciary Net Position ................................................................................... 125 Combining Statement of Changes Fiduciary Net Position .................................................................... 126 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents (Continued)
STATISTICAL SECTION (Unaudited)
Financial Trends:

Net Position by Component – Last Ten Fiscal Years .................................................................................. 130 Changes in Net Position – Last Ten Fiscal Years ........................................................................................ 132 Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................................................ 136 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ............................................. 138 General Fund Balance Compared to Annual Appropriations – Last Ten Fiscal Years ............................... 140 General Fund Revenues by Source – Last Ten Fiscal Years ....................................................................... 141 General Fund Tax Revenues by Source – Last Ten Fiscal Years ................................................................ 142 Governmental Funds Expenditures by Function – Last Ten Fiscal Years ................................................... 143 Special Assessment Billings and Collections – Last Ten Fiscal Years ........................................................ 145 Revenue Capacity:

Property Tax-Rates (Direct and Overlapping Governments) and City Levies and Collections – Last Ten Fiscal Years ................................................................................................................... 146 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ....................... 148 Principal Secured Property Taxpayers – Current Year and Nine Years Ago .............................................. 149 Property Value and Construction – Last Ten Fiscal Years .......................................................................... 151 Debt Capacity:

Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ...................................................................... 152 Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt per Capita – Last Ten Fiscal Years . 154 Ratio of Annual Debt Service for Bonded Debt to Total General Expenditures – Last Ten Fiscal Years .. 155 Ratio of General Bonded Debt Outstanding – Last Ten Fiscal Years ......................................................... 156 Direct and Overlapping Governmental Activities Debt ............................................................................... 157 Computation of Legal Debt Margin – Last Ten Fiscal Years ...................................................................... 158 Pledged Revenue Coverage – Last Ten Fiscal Years ................................................................................... 160 Demographic and Economic Information:

General Information ..................................................................................................................................... 161 Principal Employers – Current Fiscal Year and Nine Fiscal Years Ago ..................................................... 162 Economic Information – Last Ten Fiscal Years .......................................................................................... 163 Operating Information:

Operating and Capital Indicators – Last Ten Fiscal Years .......................................................................... 165 Authorized Full-Time Equivalent Employees by Department – Last Ten Fiscal Years .............................. 166 Water and Sewer Rates– Last Ten Fiscal Years .......................................................................................... 168 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
(This page is intentionally left blank)
i
February 13, 2025
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
accounting principles generally accepted in the
United States of America (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 (City) the
Annual Comprehensive Financial Report for the
fiscal year ended June 30, 2024.

This report consists of management’s
representations concerning the finances of the
City. 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 has established a comprehensive
internal control framework that is designed both
to protect the government’s assets from loss,
theft, or misuse and to compile sufficient
reliable information for the preparation of the
City’s financial statements in conformity with
GAAP. Because the cost of internal controls
should not outweigh their benefits, the City’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’s financial statements have been
audited by The Pun Group, 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 for the fiscal year ended June 30, 2024, 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’s
financial statements for the fiscal year ended
June 30, 2024, are fairly presented in conformity
with GAAP. The independent auditors’ report is
presented as the first component of the financial
section of this report.

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 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 has a population of 10,943 and is
located on the west bank of the Sacramento
River in southern Shasta County. It is ten miles
south of Redding, population 92,727, and twenty
miles north of Red Bluff, population 14,413 the
City 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 councilmanager 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
ii
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 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
operates.

Local Economy
Historically, the City 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 nontimber 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 has 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.

Supply chain constraints and inflation are
concerns that we will continue monitoring
closely in the next fiscal year. The City is
experiencing a slowdown in single-family home
sales, and new construction projects; however,
for vehicle and equipment sales, fuel stations,
restaurants, and a national equipment rental
chain are holding steady. Several projects are
also being completed in our planning
department, including, hotels, manufacturing,
fuel stations, and affordable housing.

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 self-balancing
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.
iii
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 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, 2024,
the City’s capital assets, including both
governmental and business-type, amounted to
$37,554,997. Note 5 to the financial statements
contain additional information about fixed
assets.

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 6 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 7 to the financial
statements.

Pension Benefits
The City 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 8 to the
financial statements.
iv
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.

City of Anderson

CITIZENS OF ANDERSON

MAYOR & CITY COUNCIL

CITY ATTORNEY BOARDS & COMMISSIONS

CITY MANAGER

CITY CLERK

FINANCE POLICE RECREATION PUBLIC
WORKS

DEVELOPMENT

SERVICES
Public InformationCity Council SupportPersonnelRisk Management PurchasingUtility BillingFinancePayroll TreasuryInformation Systems Grant Administration RedevelopmentHousing Operational ServicesPatrolInvestigation CommunicationsAnimal Control RecreationSenior ServicesYouth Programs
EngineeringStreetsWaterWastewaterVehicle MaintenanceParks Building Community Development PlanningZoning
v
City of Anderson Officials
City Council
Stan Neutze, Mayor
Melissa Hunt, Vice Mayor
Susie Baugh, Councilmember
Mike Gallagher, Councilmember
Dan Gallier, Councilmember
Administrative Officials & Department Heads
Administrative Services Manager – Nichole McCollum
Assistant City Manager/Finance Director – Liz Cottrell (through August 2023) Acting Assistant City Manager – Christy White (August 2023 – April 2024) Acting Finance Director – Cindy Wheeler (August 2023 – April 2024) Chief Wastewater Treatment Plant Operator – Nick Jones
City Clerk – Christy White
City Manager – Jeff Kiser (Through October 2023)
City Manager – Joey Forseth-Deshais (as of January 2024) Community Services Director – Joey Forseth-Deshais
Finance Director – Cindy Wheeler (as of April 2024)
Finance Office Manager – Cindy Wheeler (Through April 2024) Interim City Manager – Jon Poletski (October 2023 – December 2023) Operations & Administration Director – Jennifer McDaniel Police Captain – Nathan Ramirez
Police Chief – Jon Poletski
Police Lieutenant – Steve Blunk
Public Works Director – Adam Whelen
Public Works Superintendent – Adam Froeber
Public Works Superintendent (Parks Division) – Eric Knight vi
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and the Members of the City Council of the City of Anderson
Anderson, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of 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 as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (“GAAS”) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (“Government Auditing Standards”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
(Yllll
www.pungroup.cpa g
ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of the City Council of the City of Anderson
Anderson, California

2 Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary Comparison Schedules, the Schedule of Changes in Net Pension Liability and Related Ratios, the Schedule of City’s Proportionate Share of the Net Pension Liability and Related Ratios and the Schedules of Contributions – Pensions be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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

3 Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Combining and Individual Fund Financial Statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the Combining and Individual Fund Financial Statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 13, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Santa Ana, California
February 13, 2025
and Analysis
4 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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5 MANAGEMENT’S DISCUSSION AND ANALYSIS
6 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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City of Anderson
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
June 30, 2024
7 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, 2024. This should be read in conjunction with the transmittal letter and the financial statements.

FINANCIAL HIGHLIGHTS
 The assets and deferred outflows of resources of the City of Anderson exceeded its liabilities and deferred inflows of resources on June 30, 2024, by $41.2 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 $15.6 million resulted in an unrestricted deficit net position of $10.7 million in Governmental Activities.  Total net position decreased by $4.1 million, with a decrease of $3.2 million in net position of governmental activities, and a decrease of $0.9 million in business-type activities.  Governmental funds reported combined June 30, 2024, fund balances of $19.0 million, a decrease of $2.4 million in comparison to the previous fiscal year. These fund balances are largely reserved for various purposes.  As of June 30, 2024, the General Fund had a year-end unassigned fund balance of $2.1 million, a decrease of 51% over the prior year's fund balance of $4.2 million. The decrease is largely due to the continued increase of goods and services during this fiscal year. The unassigned General Fund balance on June 30, 2024, represented 15% of 2023-2024 General Fund expenditures of $13.9 million.
 As of June 30, 2024, the Gas Tax Fund had a year-end restricted fund balance of $0.7 million. The restricted Gas Tax Fund balance at June 30, 2024, represented 27% of 2023-2024 Gas Tax Fund expenditures of $2.6 million. The restricted Gas Tax Fund balance decreased by $0.8 million, from the year ended June 30, 2023, to the year ended June 30, 2024. This decrease is due to the road construction and maintenance related to the City additions of building Quick Quack Car Wash, the refurbishment of the North Street and Northway Pedestrian Crossing in conjunction with the completion of Maverik Gas Station, and the completion of the Cape Seal and Pavement Projects needed to restore the city’s roadways.
 During the fiscal year ending June 30, 2024, the City’s net long-term liabilities increased by $14,006 with an ending long-term liability balance of $4.8 million (See Note 6).

City of Anderson
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) (CONTINUED) June 30, 2024
8 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 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 manner (business-type activities). The governmental activities include general government, public safety, public works, planning, community development, recreation and cultural. The business-type activities of the City are water and sewer.

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 Bill 1X 26 dissolving all redevelopment agencies in the State of California. (See Note 12 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 component unit 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 the funds of the City of Anderson can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

City of Anderson
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) (CONTINUED) June 30, 2024
9 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.

The City of Anderson maintains 30 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 Riverside East Debt Service Fund, and 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 report.

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 25-32 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 33-39 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 43-44 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 (UNAUDITED) (CONTINUED) June 30, 2024
10 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 and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $41.2 million on June 30, 2024. Net position decreased by $4.1 million from Fiscal Year 2022-2023.

The City of Anderson’s net position decreased in the governmental activities and decreased in the business-type activities during the 2023-2024 fiscal year. Net positions in governmental activities decreased by $3.2 million, and business-type activities decreased by $0.9 million.

Net Position
2023 2023 2023
2024 (As restated) 2024 (As restated) 2024 (As restated) Assest
Current and other assets $ 19,068,530 $ 21,020,433 $ 3,247,096 $ 4,102,581 $ 22,315,626 $ 25,123,014 Capital assets 27,415,973 27,410,039 10,139,024 10,359,311 37,554,997 37,769,350 Total assets 48,430,472 46,484,503 13,386,120 14,461,892 59,870,623 62,892,364 Deferred outflows of resources 6,162,481 6,293,828 486,037 552,860 6,648,518 6,846,688 Liabilities
Long-term liabilities 17,982,284 16,645,040 3,755,497 3,901,780 21,737,781 20,546,820 Other liabilities 1,390,842 875,025 1,038,955 1,054,110 2,429,797 1,929,135 Total liabilities 17,520,065 19,373,126 4,794,452 4,955,890 24,167,578 22,475,955 Deferred inflows of resources 1,020,161 1,719,353 97,526 167,859 1,117,687 1,887,212 Net position
Net investments in capital assets 25,537,977 25,660,757 7,792,024 7,892,811 33,330,001 33,553,568 Restricted 17,404,171 17,499,048 58 - 17,404,229 17,499,048 Unrestricted (deficit) (10,688,451) (7,674,923) 1,188,097 1,998,192 (9,500,354) (5,676,731) Total net position $ 35,484,882 32,253,697 $ 8,980,179 $ 9,891,003 $ 41,233,876 $ 45,375,885 $ Governmental Activities Business-type Activities Total Primary Government A large portion of the City of Anderson’s net position $25.5 million, 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, $17.4 million, represents resources 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 $(10.7) million deficit in governmental activities unrestricted net position. Business-type activities reported $1.2 million in unrestricted net position at year-end.

City of Anderson
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) (CONTINUED) June 30, 2024
11 Changes in Net Position
2023 2023 2023
2024 (As restated) 2024 (As restated) 2024 (As restated) Revenues
Program revenues:

Charges for services $ 1,074,286 $ 1,122,982 $ 3,678,350 $ 3,364,678 $ 4,752,636 $ 4,487,660 Operating grants and contributions 2,961,327 3,134,310 109,632 112,830 3,070,959 3,247,140 Capital grants and contributions - - 115,241 214,803 115,241 214,803 General revenues:

Taxes:

Sales taxes 6,794,008 6,667,218 - 6,794,008 - 6,667,218 Property taxes 2,810,845 2,648,530 - 2,810,845 - 2,648,530 Motel taxes 535,915 665,909 - - 535,915 665,909
Franchise taxes 413,489 392,561 - - 413,489 392,561
Other taxes 72,086 69,678 - - 72,086 69,678
Investment earnings 43,722 59,496 31,322 35,633 75,044 95,129 Transfers - (53,592) - 53,592 - -
Total revenues 14,705,678 14,707,092 3,934,545 3,781,536 18,640,223 18,488,628 Expenses
General government 1,949,018 1,241,404 - 1,949,018 - 1,241,404 Public safety 9,382,999 8,372,341 - 9,382,999 - 8,372,341 Public works 2,754,245 1,946,042 - 2,754,245 - 1,946,042 Planning 402,448 448,972 - - 402,448 448,972
Community development 1,571,906 1,393,766 - 1,571,906 - 1,393,766 Recreation and cultural 1,856,139 1,687,109 - 1,856,139 - 1,687,109 Water - - 2,109,082 2,161,720 2,109,082 2,161,720
Sewer - - 2,736,287 2,664,734 2,736,287 2,664,734
Interest and fiscal charges 20,108 20,914 - - 20,108 20,914 Total expenses 17,936,863 15,110,548 4,845,369 4,826,454 22,782,232 19,937,002 Changes in net position (3,231,185) (403,456) (910,824) (1,044,918) (4,142,009) (1,448,374) Net position - beginning of year 35,484,882 35,888,338 9,891,003 10,935,921 45,375,885 46,824,259 Net position - end of year $ 35,484,882 32,253,697 $ 8,980,179 $ 9,891,003 $ 41,233,876 $ 45,375,885 $ Governmental Activities Business-type Activities Total Primary Government Governmental Activities. Primary Governmental activity expenses totaled $17.9 million in Fiscal Year 2023-2024.

Program revenues totaled $4.0 million. General revenues and transfers totaled $10.7 million. Sales tax revenue of $6.8 (64 percent) represented the largest share of general revenues and transfers.

Public safety activity expenses of $9.4 million represented the largest portion of governmental activity expenses (52 percent). Community development activity expenses of $1.6 million accounted for another 9 percent. Public works activity expenses of $2.8 million represented 15 percent. General government activity expenses of $1.9 million represented 11 percent, recreation and cultural activity expenses of $1.9 million represented 10 percent, and planning activity expenses of $0.4 million represented 2 percent. Lastly, interest and fiscal charge expenses of nearly $20 thousand represented less than 1 percent.

Business-type Activities. Business-type activity expenses totaled $4.8 million in Fiscal Year 2023-2024. Charges for services totaled $3.7 million. Water enterprise expenses totaled $2.1 million, with charges for water services totaling $1.8 million. Sewer enterprise expenses totaled $2.6 million, with charges for sewer services totaling $1.8 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 finance-related legal requirements. These funds have been classified as governmental or proprietary.

City of Anderson
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) (CONTINUED) June 30, 2024
12 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, 2024, the City of Anderson’s governmental funds reported combined ending fund balances of $19.0 million.

General Fund. The General Fund is the chief operating fund of the City of Anderson. In 2023-2024, the City has a deficit in General Fund revenues and other financing sources over General Fund expenses and other financing uses in the amount of $2.3 million. This decreased the year-end General Fund balance to $2.5million of which $0.1 million is nonspendable, $0.3 million is assigned, and $2.1 million is unassigned.

Expressed as a percentage of annual expenditures, the unassigned General Fund balance stood at 15% of expenditures on June 30, 2024. The City’s unassigned General Fund balance is below the Council’s target of 20 - 25%.

General Fund revenues. The Bradley-Burns Sales and Use Tax revenues decreased by 1% in the 2023-2024 fiscal year from 2022-2023. The Transaction and Use Tax (Measure A) increased by 7% in 2023-2024. Property tax revenues increased by 5.8%. Assessed property values increased by 4.9% in 2023-2024. Transient occupancy (motel) taxes showed a 19.5% decrease in 2023-2024.

Licenses and permits decreased significantly by 38%, and the category of fines, forfeitures, and penalties increased by 38%. Intergovernmental revenues also decreased by 28%. Charges for services increased by 23%.

Overall, general fund revenues decreased, from $11.9 million in Fiscal Year 2022-2023 to $11.8 million in Fiscal Year 2023-2024 largely due to decreases in Transient Occupancy Tax, licensing and permits, and intergovernmental revenues.

General Fund expenditures. General Fund expenditures totaled $13.9 million in 2023-2024. This was an increase of

5.9% compared to 2022-2023 General Fund expenditures of $13.1 million. This increase is due in general to increased costs for liability and workers’ compensation costs as well as salary and benefit costs.

Governmental Funds. Governmental funds results for 2023-2024 can be found on pages 25-32.

Proprietary funds. The City’s two enterprise funds provide the same type of information found in the governmentwide 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, 2024, is presented as a basic financial statement found on page 87.

CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. The City of Anderson’s investment in capital assets for its governmental and business-type activities as of June 30, 2024, amounted to $37.6 million (net of accumulated depreciation and amortization). This investment in capital assets includes land, park improvements, buildings and improvements, vehicles and equipment, streets, bikeways, water, sewer, storm drain systems, right-to-use assets and construction in progress.

City of Anderson
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) (CONTINUED) June 30, 2024
13 2024 2023 2024 2023 2024 2023
Land $ 2,902,940 $ 2,902,940 $ - $ 2,902,940 - $ $ 2,902,940 Construction in Progress 119,350 1,911,325 261,895 3,858 381,245 1,915,183 Budings 1,740,588 1,855,487 199,723 218,155 1,940,311 2,073,642 Improvements 19,985,888 18,431,888 9,335,188 9,749,678 29,321,076 28,181,566 Equipment 1,567,310 1,559,426 342,218 387,620 1,909,528 1,947,046 Intangible Assets 1,099,897 748,973 - 1,099,897 - 748,973 Total Capital Assets $ 27,410,039 27,415,973 $ 10,139,024 $ 10,359,311 $ 37,554,997 $ 37,769,350 $ Governmental Activities Business-type Activities Total Primary Government Additional information on the City’s capital assets may be found in Note 5 to the basic financial statements.

Long-term debt. At June 30, 2024, the City had $2.4 million in both governmental activity and business-type activity debt outstanding. Net long-term debt increased by $14 thousand during Fiscal Year 2023-2024 due to compensated absences and lease/subscription liabilities.
2023 2023 2023
2024 (As restated) 2024 (As restated) 2024 (As restated) Revenue Bonds $ - $ - $ 830,000 $ 895,000 $ 830,000 $ 895,000 Limited Obligation Bonds - 1,361,000 - 1,410,000 1,361,000 1,410,000 Financing Leases 901,463 1,074,550 156,000 161,500 1,057,463 1,236,050 Lease Liabilities 922,642 631,987 - - 922,642 631,987
Subscription Liabilities 53,891 42,745 - - 53,891 42,745 Compensated Absences 499,373 505,488 86,867 75,960 586,240 581,448 Total Long-Term Debt $ 2,377,369 $ 2,254,770 $ 2,433,867 $ 2,542,460 $ 4,811,236 $ 4,797,230 Governmental Activities Business-type Activities Total Primary Government Additional information about the nature and type of long-term debt can be found in Note 6 to the basic financial statements and Note 12 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 10,943 as of January 1, 2024, a 0.46 percent decrease from the prior year.

Supply chain constraints and inflation continue to be a concern that we will be monitoring closely in next the fiscal year. The building of Single-Family homes has slowed significantly in the City of Anderson generally due to rising interest rates and national economic pressures. In return this has had a substantial negative impact on the License and Permit fee revenues. Transient Occupancy Tax revenues are also significantly less than projections due to less travelers and one hotel owing 10 quarters of due taxes. However, the City is still experiencing stable revenues in Property Tax, Bradley-Burns Sales and Use Tax.

The City’s Water Division completed a comprehensive water rate study in 2024 and implemented a 24% increase in water rates in May of 2024.

The City’s Wastewater Division is currently undergoing a comprehensive rate study that will be presented in the next fiscal year 2024/25 for future increases.

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.
14 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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BASIC FINANCIAL STATEMENTS
15 16
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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GOVERNMENT-WIDE

FINANCIAL STATEMENTS
17 Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 4,443,435 $ 2,556,814 $ 7,000,249 $ Taxes receivables 2,195,470 - 2,195,470
Accounts receivable 780,224 336,273 1,116,497
Interest receivable 2,678,471 - 2,678,471
Due from other governments 820,882 47,038 867,920
Due from sucessor agency 186,683 - 186,683
Internal balances (243,784) 243,784 -
Lease receivable, due in one year 9,970 - 9,970
Inventories and prepaid items 177,078 51,174 228,252
Total current assets 3,235,083 11,048,429 14,283,512
Noncurrent assets:

Restricted assets:

Cash and investments with trustee - 58 58
Loans receivable 7,789,094 11,955 7,801,049
Lease receivable, due in more than one year 231,007 - 231,007 Capital assets:

Capital assets, nondepreciable 3,022,290 261,895 3,284,185 Capital assets, depreciable and amortizable, net 24,393,683 9,877,129 34,270,812 Total capital assets 27,415,973 10,139,024 37,554,997
Total noncurrent assets 10,151,037 35,436,074 45,587,111 Total assets 13,386,120 46,484,503 59,870,623

DEFERRED OUTFLOWS OF RESOURCES
Pension related 6,162,481 486,037 6,648,518
Total deferred outflows of resources 486,037 6,162,481 6,648,518 Primary Government
City of Anderson
Statement of Net Position
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 18 Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 350,551 184,975 535,526
Accrued payroll and benefits 327,753 22,635 350,388
Accrued interest 28,039 21,833 49,872
Deposits payable 143,365 76,225 219,590
Unearned revenue 541,134 733,287 1,274,421
Compensated absences, due within one year 124,843 21,717 146,560 Long-term debt, due within one year 495,868 126,500 622,368 Total current liabilities 2,011,553 1,187,172 3,198,725 Noncurrent liabilities:

Compensated absences, due in more than one year 374,530 65,150 439,680 Long-term debt, due in more than one year 1,382,128 2,220,500 3,602,628 Net pension liability 15,604,915 1,321,630 16,926,545
Total noncurrent liabilities 17,361,573 3,607,280 20,968,853 Total liabilities 19,373,126 4,794,452 24,167,578

DEFERRED INFLOWS OF RESOURCES
Lease related 228,702 - 228,702
Pension related 791,459 97,526 888,985
Total deferred inflows of resources 1,020,161 97,526 1,117,687

NET POSITION
Net investment in capital assets 25,537,977 7,792,024 33,330,001 Restricted for:

Capital improvements 5,132,662 - 5,132,662
Transportation 691,098 - 691,098
Grants 11,397,621 - 11,397,621
Debt service - 58 58
Other 182,790 - 182,790
Total restricted 17,404,171 58 17,404,229
Unrestricted (deficit) (10,688,451) 1,188,097 (9,500,354) Total net position $ 8,980,179 32,253,697 $ 41,233,876 $ Primary Government
City of Anderson
Statement of Net Position (Continued)
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 19 Operating Capital Total
Charges for Grants and Grants and Program
Functions/Programs Expenses Services Contributions Contributions Revenues Governmental activities:

General government $ 1,948,368 $ 7,394 $ 165,012 $ 172,406 - $ Public safety 9,382,999 171,691 307,047 478,738 -
Public works 2,754,245 473,156 1,863,034 2,336,190 -
Planning 402,448 327,809 - 327,809 -
Community development 1,572,556 4,626 626,234 630,860 - Recreation and cultural 1,856,139 89,610 - - 89,610
Interest and fiscal charges 20,108 - - - -
Total governmental activities 17,936,863 1,074,286 2,961,327 4,035,613 - Business-type Activities:

Water 2,109,082 1,867,974 - 1,867,974 -
Sewer 2,736,287 1,810,376 109,632 115,241 2,035,249
Total business-type activities 4,845,369 3,678,350 109,632 115,241 3,903,223 Total primary government $ 4,752,636 22,782,232 $ 3,070,959 $ 115,241 $ 7,938,836 $ City of Anderson
Statement of Activities
For the Year Ended June 30, 2024
Program Revenues
See accompanying Notes to the Basic Financial Statements. 20 Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental activities:

General government (1,775,962) $ - $ (1,775,962) $
Public safety (8,904,261) - (8,904,261)
Public works (418,055) - (418,055)
Planning (74,639) - (74,639)
Community development (941,696) - (941,696)
Recreation and cultural (1,766,529) - (1,766,529)
Interest and fiscal charges (20,108) - (20,108)
Total governmental activities (13,901,250) - (13,901,250) Business-type Activities:

Water - (241,108) (241,108)
Sewer - (701,038) (701,038)
Total business-type activities - (942,146) (942,146)
Total primary government (942,146) (13,901,250) (14,843,396) General revenues:

Taxes:

Sales taxes - 6,794,008 6,794,008
Property taxes 2,810,845 - 2,810,845
Motel taxes 535,915 - 535,915
Franchise taxes 413,489 - 413,489
Other taxes 72,086 - 72,086
Total taxes 10,626,343 - 10,626,343
Investment earnings 43,722 31,322 75,044
Total general revenues 10,670,065 31,322 10,701,387
Changes in net position (3,231,185) (910,824) (4,142,009) Net position:

Beginning of year, as previously presented as of June 30, 2023 35,638,266 9,855,397 45,493,663 Error corrections (175,421) 57,643 (117,778)
Change with financial reporting entity 22,037 (22,037) - Beginning of year, as restated (Note 14) 35,484,882 9,891,003 45,375,885 End of year $ 8,980,179 32,253,697 $ 41,233,876 $
Net (Expense) Revenue and
Changes in Net Position
City of Anderson
Statement of Activities (Continued)
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 21 22
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
23 24
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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Low and Moderate Income Housing Special Revenue Fund - To account 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.

GOVERNMENTAL FUND

FINANCIAL STATEMENTS
General Fund - To account for and report all financial resources of the general government, except those required to be accounted for in in another fund.

ADAP and Home Special Revenue Fund - To account 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.

Gas Tax Special Revenue Fund - To account for State funds received to use in providing construction and maintenance of the Street system of the City.

CDBG Special Revenue Fund - To account 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. 25 Low and
General Gas Tax ADAP and CDBG Mod Income
Fund Fund Home Fund Fund Housing Fund
ASSETS
Cash and investments 28,504 $ 1 $ 1,431,728 $ 570,184 $ - $ Taxes receivable 2,142,449 51,341 - - -
Accounts receivable 633,120 - 40,148 - -
Lease receivable 240,977 - - - -
Interest receivable - - 1,592,896 737,301 347,732
Loans receivable - - 4,600,820 1,669,794 1,452,510
Due from other governments 377,268 395,783 - 31,643 -
Due from other funds 2,404,517 260,645 - - -
Due from sucessor agency 186,683 - - - -
Inventories and prepaid items 118,225 - - - -
Advances to other funds - - - - -
Total assets 707,770 6,131,743 7,665,592 3,008,922 1,800,242

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 208,864 16,672 891 891 - Accrued payroll and benefits 295,270 - - 913 257
Deposit payable 143,365 - - - -
Unearned revenue 11,400 - 13,602 - -
Due to other funds 2,227,038 - - 1,061,902 -
Advances from other funds - - - 815,449 -
Total liabilities 2,885,937 16,672 14,493 1,804 1,877,608 Deferred inflows of resources:

Leases 228,702 - - - -
Unavailable revenues 564,290 - - - -
Total deferred inflows of resources 792,992 - - - -
Fund balances:

Nonspendable 118,225 - - - -
Restricted 691,098 - 7,651,099 3,007,118 -
Assigned 275,688 - - - -
Unassigned (deficit) 2,058,901 - - (77,366) -
Total fund balances 2,452,814 691,098 7,651,099 3,007,118 (77,366) Total liabilities, deferred inflows of
resources, and fund balances $ 6,131,743 $ 707,770 $ 7,665,592 $ 3,008,922 $ 1,800,242 (Continued)
Major Funds
City of Anderson
Balance Sheet
Governmental Funds
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 26 Nonmajor Total
Governmental Governmental
Funds Funds
ASSETS
Cash and investments $ 4,394,208 2,363,791 $
Taxes receivable 1,680 2,195,470
Accounts receivable 755,968 82,700
Lease receivable - 240,977
Interest receivable 542 2,678,471
Loans receivable 7,789,094 65,970
Due from other governments 16,188 820,882
Due from other funds 3,469,314 6,134,476
Due from sucessor agency - 186,683
Inventories and prepaid items - 118,225
Advances to other funds 50,892 50,892
Total assets 6,051,077 25,365,346

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 47,500 274,818 Accrued payroll and benefits - 296,440
Deposit payable - 143,365
Unearned revenue 516,132 541,134
Due to other funds 215,161 3,504,101
Advances from other funds - 815,449
Total liabilities 778,793 5,575,307
Deferred inflows of resources:

Leases - 228,702
Unavailable revenues - 564,290
Total deferred inflows of resources - 792,992
Fund balances:

Nonspendable - 118,225
Restricted 5,490,566 16,839,881
Assigned - 275,688
Unassigned (deficit) (218,282) 1,763,253
Total fund balances 5,272,284 18,997,047
Total liabilities, deferred inflows of
resources, and fund balances $ 6,051,077 $ 25,365,346
(Concluded)
City of Anderson
Balance Sheet
Governmental Funds (Continued)
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 27 28
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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Total Fund Balances - Total Governmental Funds $ 18,997,047 Amounts reported for governmental activities in the statement of net position are different because:

Capital assets, not being depreciated/amortized 3,022,290 $ Capital assets, net of accumulated depreciation/amortized 24,393,683 Less: Amount reported in the Internal Service Fund (2,469,311) 24,946,662 (17,375)
(71,331)
(598,505)
(98,091)
(294,273)
5,526,561
(13,875,721)
(663,858)
564,290
(2,161,709)
Net position of governmental activities $ 32,253,697
Pension related deferred inflows of resources, net of $(127,601) reported in the Internal Service Fund 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 the internal service fund are included in the governmental activities in the Government-Wide Statement of Net Position.

Long-term debt, due in more than one year, net of $(783,623) reported in the Internal Service Fund Compensated absences, due within one year, net of $(26,752) reported in the Internal Service Fund Compensated absences, due in more than one year , net of $(80,257) reported in the Internal Service Fund Net pension liability and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:

Pension related deferred outflows of resources, net of $635,920 reported in the Internal Service Fund Aggregate net pension liabilities, net of $(1,729,194) reported in the Internal Service Fund Revenues earned but not available to pay for current expenditures for governmental funds are unavailable.

Long-term debt, due within one year, net of $(424,537) reported in the Internal Service Fund City of Anderson
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2024
Capital assets used in governmental activities are not financial resources and are not reported in the funds:

Amount reported in government-wide statement of position:

Interest is recognized when due, and therefore, interest payable is not reported in the governmental funds, net of $(10,644) reported in the Internal Service Fund.

Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds' Balance Sheet.

See accompanying Notes to the Basic Financial Statements. 29 Low and
General Gas Tax ADAP and CDBG Mod Income
Fund Fund Home Fund Fund Housing Fund
REVENUES:

Sales taxes 6,794,008 $ - $ - $ - $ - $
Property taxes 2,810,845 - - - -
Motel taxes 535,915 - - - -
Franchise taxes 413,489 - - - -
Licenses and permits 271,457 - - - -
Fines, forfeitures, and penalties 43,640 - - - -
Use of money and property 43,722 48,140 125,522 36,924 26,735 Intergovernmental revenue 124,128 1,347,430 3,513 147,722 - Charges for current services 550,492 - - - -
Other revenues 177,954 355,242 - - -
Total revenues 1,750,812 11,765,650 129,035 184,646 26,735 EXPENDITURES:

Current:

General government 1,893,830 - - - -
Public safety 8,574,330 - - - -
Public works - 2,146,543 - - -
Planning 395,498 - - - -
Community development 708,026 - 3,513 199,554 31,406
Recreation and cultural 1,623,668 - - - -
Capital outlay 611,157 413,016 - - -
Debt service:

Principal 43,047 - - - -
Interest and fiscal charges 1,407 - - - -
Total expenditures 13,850,963 2,559,559 3,513 199,554 31,406 Excess (deficiency) of revenues over
expenditures (2,085,313) (808,747) 125,522 (14,908) (4,671) OTHER FINANCING SOURCES (USES):

Insurance of subscription liabilities 79,890 - - - -
Transfers in 30,496 - - - -
Transfers out (302,648) (14,832) - - -
Total other financing sources (uses) (192,262) (14,832) - - - NET CHANGES IN FUND BALANCES (2,277,575) (823,579) 125,522 (14,908) (4,671) FUND BALANCES (DEFICITS):

Beginning of year, as previously reported as of June 30, 2023 4,730,389 1,514,677 7,525,577 3,197,447 (72,695) Error corrections - - (175,421) - -
Change with financial reporting entity
(governmental and enterprise funds classification) - - - - - Beginning of year, as restated (Note 14) 4,730,389 1,514,677 7,525,577 3,022,026 (72,695) End of year $ 691,098 2,452,814 $ 7,651,099 $ 3,007,118 $ (77,366) $ (Continued)
Major Funds
City of Anderson
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 30 Nonmajor Total
Governmental Governmental
Funds Funds
REVENUES:

Sales taxes $ 6,794,008 - $
Property taxes - 2,810,845
Motel taxes - 535,915
Franchise taxes - 413,489
Licenses and permits 221,398 492,855
Fines, forfeitures, and penalties 85,838 129,478
Use of money and property 98,338 379,381
Intergovernmental revenue 532,496 2,155,289
Charges for current services - 550,492
Other revenues 54,579 587,775
Total revenues 992,649 14,849,527
EXPENDITURES:

Current:

General government - 1,893,830
Public safety 407,050 8,981,380
Public works 203,690 2,350,233
Planning - 395,498
Community development - 942,499
Recreation and cultural 27,241 1,650,909
Capital outlay 259 1,024,432
Debt service:

Principal 33,709 76,756
Interest and fiscal charges 19,123 20,530
Total expenditures 691,072 17,336,067
Excess (deficiency) of revenues over
expenditures 301,577 (2,486,540)
OTHER FINANCING SOURCES (USES):

Insurance of subscription liabilities - 79,890
Transfers in 286,984 317,480
Transfers out - (317,480)
Total other financing sources (uses) 286,984 79,890
NET CHANGES IN FUND BALANCES 588,561 (2,406,650)
FUND BALANCES (DEFICITS):

Beginning of year, as previously reported as of June 30, 2023 5,556,686 22,452,081 Error corrections - (175,421)
Change with financial reporting entity
(governmental and enterprise funds classification) (872,963) (872,963) Beginning of year, as restated (Note 14) 4,683,723 21,403,697 End of year $ 18,997,047 5,272,284 $
(Concluded)
City of Anderson
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 31 Net change in fund balances - total governmental funds: $ (2,406,650) Amounts reported for governmental activities in the Statement of Activities are different because:
1,024,432
(1,255,398)
422
32,325
(564,752)
Principal repayments of long-term debt, net of $525,883 reported in the Internal Service Funds 76,756 Issuance of long-term debt, net of $(651,463) reported in the Internal Service Funds (79,890) 85,419
(143,849)
Change in net position of governmental activities $ (3,231,185) Unavailable revenue is not recognized as revenue in the governmental funds since the revenue is not available to fund expenditures of the current year.

Depreciation and amortization expenses on capital and lease assets were reported in the Government-Wide Statement of Activities, but they did not require the use of current financial resources. Therefore, depreciation and amortization expenses were not reported as an expenditure in the governmental funds.

Interest accrued on long-term debt is reported in the Statement of Activities, but does not require the use of current financial resources. Therefore, accrued interest is not reported as an expenditure in governmental funds. This amount represents the change in accrued interest from the prior year.

Compensated absences were reported in the Government-Wide Statement of Activities, but they did not require the use of current financial resources. Therefore, compensated absences were not reported as expenditures in the governmental funds, net of $(26,210) reported in the Internal Service Funds Pension expenses were reported in the Government-Wide Statement of Activities, but it did not require the use of current financial resources. Therefore, the increase in net pension liabilities were not reported as an expenditure in the governmental funds.

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 the governmental funds:

Internal Service Fund was used by management to account for the costs of data processing, customer service, maintenance, insurance, and fleet management services to individual funds. The net revenue of the internal service fund was reported with governmental activities.

Depreciation and amortization expenses, net of $661,292 reported in the internal service fund Capital outlay expenditures
City of Anderson
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position For the Year Ended June 30, 2024
Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities, the portion of the cost attributed to capital assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense. The remaining amounts are expensed and allocated to the programs they support.

See accompanying Notes to the Basic Financial Statements. 32 Internal Service Fund - To account for the costs of data processing, customer service, maintenance, insurance, and fleet management services to individual funds.

PROPRIETARY FUND

FINANCIAL STATEMENTS
Water Enterprise Fund - To account for accounts for the operation and maintenance of the City's water utility.

Sewer Enterprise Fund - To account for accounts for the operation and maintenance of the City's waste water utility. 33 Governmental
Activities
Water Sewer Internal
Enterprise Fund Enterprise Fund Total Service Fund
ASSETS
Current assets:

Cash and investments 327,020 $ 2,229,794 $ 2,556,814 $ 49,227 $ Accounts receivable 304,021 32,252 336,273 24,256
Due from other governments 2,081 44,957 47,038 -
Due from other funds - 42,759 42,759 -
Inventories and prepaid items 45,963 5,211 51,174 58,853 Total current assets 679,085 2,354,973 3,034,058 132,336 Noncurrent assets:

Restricted assets:

Cash and investments with trustee - 58 58 -
Loans receivable - 11,955 11,955 -
Advances to other funds - 764,557 764,557 -
Capital assets:

Capital assets, nondepreciable 261,895 - 261,895 20,000 Capital assets, depreciable and amortizable, net 4,149,159 5,727,970 9,877,129 2,449,311 Total capital assets 4,411,054 5,727,970 10,139,024 2,469,311 Total noncurrent assets 4,411,054 6,504,540 10,915,594 2,469,311 Total assets 5,090,139 8,859,513 13,949,652 2,601,647

DEFERRED OUTFLOWS OF RESOURCES
Pension related 122,071 363,966 486,037 635,920
Total deferred outflows of resources $ 122,071 $ 363,966 $ 486,037 $ 635,920 (Continued)
Business-Type Activities
City of Anderson
Statement of Net Position
Proprietary Funds
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 34 Governmental
Activities
Water Sewer Internal
Enterprise Fund Enterprise Fund Total Service Fund

LIABILITIES
Current liabilities:

Accounts payable 130,914 $ 54,061 $ 184,975 $ 75,733 $
Accrued payroll and benefits 6,956 15,679 22,635 31,313 Accrued interest - 21,833 21,833 10,664
Customer/employee deposits 76,225 - 76,225 -
Due to other funds 563,532 - 563,532 2,109,602
Unearned revenue 1,554 731,733 733,287 -
Compensated absences, due within one year 10,202 11,515 21,717 26,752 Bonds, loans, and lease payable, due within one year - 126,500 126,500 424,537 Total current liabilities 789,383 961,321 1,750,704 2,678,601 Noncurrent liabilities:

Compensated absences, due in more than one year 30,605 34,545 65,150 80,257 Bonds, loans, and lease payable, due in more than one year - 2,220,500 2,220,500 783,623 Net pension liability 331,935 989,695 1,321,630 1,729,194 Total noncurrent liabilities 362,540 3,244,740 3,607,280 2,593,074 Total liabilities 1,151,923 4,206,061 5,357,984 5,271,675

DEFERRED INFLOWS OF RESOURCES
Pension related 24,494 73,032 97,526 127,601
Total deferred inflows of resources 24,494 73,032 97,526 127,601

NET POSITION
Net investment in capital assets 4,411,054 3,380,970 7,792,024 1,261,151 Restricted for debt services - 58 58 -
Unrestricted (deficit) (375,261) 1,563,358 1,188,097 (3,422,860) Total net position $ 4,944,386 4,035,793 $ 8,980,179 $ (2,161,709) $ (Concluded)
Business-Type Activities
June 30, 2024
City of Anderson
Statement of Net Position (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 35 36
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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Governmental
Activities
Water Sewer Internal
Enterprise Fund Enterprise Fund Total Service Fund
OPERATING REVENUES:

Charges for services:

Waste water and water charges 1,801,783 $ 1,807,376 $ 3,609,159 $ - $ Internal service fund charges - - - 4,256,670
Rental revenue 11,903 - 11,903 -
Other 54,288 3,000 57,288 1,135,895
Total operating revenues 1,867,974 1,810,376 3,678,350 5,392,565 OPERATING EXPENSES:

Cost of sales and service 1,133,511 1,363,294 2,496,805 4,642,356 Administrative services 733,616 965,710 1,699,326 -
Depreciation and amortization 241,955 295,146 537,101 661,292 Total operating expenses 2,109,082 2,624,150 4,733,232 5,303,648 OPERATING INCOME (LOSS) (241,108) (813,774) (1,054,882) 88,917 NONOPERATING REVENUES (EXPENSES):

Intergovernmental revenue - 109,632 109,632 -
Gain on disposal of assets - - - 33,820
Investment income 1,045 30,277 31,322 -
Interest expense - (112,137) (112,137) (37,318)
Total nonoperating revenues (expenses) 1,045 27,772 28,817 (3,498)

INCOME (LOSS) BEFORE
CAPITAL CONTRIBUTION (240,063) (786,002) (1,026,065) 85,419 CAPITAL CONTRIBUTION:

Developer impact fee 99,875 15,366 115,241 -
Total capital contribution 99,875 15,366 115,241 -
CHANGES IN NET POSITION (140,188) (770,636) (910,824) 85,419 NET POSITION (DEFICIT):

Beginning of year, as previously reported as of June 30, 2023 4,020,903 5,834,494 9,855,397 (2,247,128) Error corrections 18,604 39,039 57,643 -
Change with financial reporting entity
(governmental and enterprise funds classification) 136,474 (158,511) (22,037) - Beginning of year, as restated (Note 14) 4,175,981 5,715,022 9,891,003 (2,247,128) End of year $ 4,944,386 4,035,793 $ 8,980,179 $ (2,161,709) $ City of Anderson
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2024
Business-Type Activities
See accompanying Notes to the Basic Financial Statements. 37 Governmental
Activities
Water Sewer Internal
Enterprise Fund Enterprise Fund Total Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers and users 1,739,530 $ 1,765,621 $ 3,505,151 $ 5,369,766 $ Cash paid to employees (including employee benefits) (317,918) (1,052,747) (1,370,665) (2,214,615) Cash paid to suppliers (1,530,307) (1,290,619) (2,820,926) (2,288,239) Net cash provided by (used in) operating activities (577,745) (108,695) (686,440) 866,912

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Cash received from other funds 474,375 - - 474,375
Payments made to other funds - (6,318) (6,318) (99,014) Intergovernmental noncapital grants - 109,632 109,632 - Net cash provided by (used in)
noncapital financing activities 103,314 474,375 577,689 (99,014)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Payments for the purchase of property (316,814) - (316,814) (246,729) Proceeds from disposal of property - - - 33,820
Principal payments on long term debt - (119,500) (119,500) (525,883) Developer impact fee received 99,875 115,241 15,366 -
Interest paid - (112,921) (112,921) (38,192)
Net cash used in capital
and related financing activities (217,055) (216,939) (433,994) (776,984) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 30,277 1,045 31,322 -
Net cash provided by investing activities 30,277 1,045 31,322 - Net change in cash and cash equivalents (661,209) 149,786 (511,423) (9,086) CASH AND CASH EQUIVALENTS:

Beginning of year, as restated (Note 14) 177,234 2,891,061 3,068,295 58,313 End of year $ 2,229,852 327,020 $ 2,556,872 $ 49,227 $
(Continued)
City of Anderson
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Business-Type Activities
See accompanying Notes to the Basic Financial Statements. 38 Governmental
Activities
Water Sewer Internal
Enterprise Fund Enterprise Fund Total Service Fund

RECONCILIATION OF OPERATING (LOSS)

TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES:

Operating income (loss) (241,108) $ (813,774) $ (1,054,882) $ 88,917 $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization expenses 241,955 295,146 537,101 661,292 (Increase) decrease in:

Accounts receivable (128,109) 7,711 (120,398) (22,799)
Due from other government 435 (4,031) (3,596) -
Inventory and prepaid items - - - (5,591)
Deferred outflows from pensions 35,833 30,990 66,823 (762) Increase (decrease) in:

Accounts payable 54,132 (20,629) 33,503 18,495
Accrued payroll and benefits 876 454 1,330 (1,131)
Deposits payable (770) - (770) -
Compensated absences payable 7,814 3,093 10,907 26,210
Unearned revenue - (48,435) (48,435) -
Net pension liability (56,304) 18,614 (37,690) 167,526
Deferred inflows of resources - pensions (23,449) (46,884) (70,333) (65,245) Total adjustment 132,413 236,029 368,442 777,995
Net cash provided by (used in) operating activities $ (577,745) (108,695) $ (686,440) $ 866,912 $ NONCASH ITEMS:

Acquisition of right-to-use lease assets $ - $ - $ - $ (651,463) Issuance of right-to-use lease liabilities $ - $ - $ - $ 651,463 (Concluded)
Business-Type Activities
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2024
City of Anderson
See accompanying Notes to the Basic Financial Statements. 39 40
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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FIDUCIARY FUND

FINANCIAL STATEMENTS
Custodial Fund - To 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 Interagency Narcotics Task Force (SINTF) Fund and the County Seizure Fund.

Private-Purpose Trust Fund - 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). 41 42
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
(This page is intentionally left blank)
Private
Purpose Trust Custodial
Fund Fund
ASSETS:

Cash and investments $ 245,257 $ 200,363
Land held for resale 48,774 -
Restricted cash and investments with trustee 489,387 -
Total assets 783,418 200,363
LIABILITIES:

Accounts payable and accrued liabilities 1,377 77,679
Accrued interest 88,839 -
Due to City 186,683 -
Long-term liabilities:

Due in one year 275,000 -
Due in more than one year 5,002,577 -
Total liabilities 5,554,476 77,679
NET POSITION:

Restricted for Successor Agency, Individual, organization and other government (4,771,058) 122,685 Total net position (deficit) $ (4,771,058) $ 122,685
City of Anderson
Statement of Fiduciary Net Position
Fiduciary Fund
June 30, 2024
See accompanying Notes to the Basic Financial Statements 43 Private
Purpose Trust Custodial
Fund Fund
ADDITIONS:

Redevelopment property taxes trust fund $ 591,039 $ -
Investment income - 62
Total additions 591,039 62
DEDUCTIONS:

Community development 179,985 -
Interest expense 92,009 -
Total deductions 271,994 -
Changes in net position 319,045 62
NET POSITION (DEFICIT):

Beginning of year (5,090,103) 122,623
End of year $ 122,685 (4,771,058) $
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
City of Anderson
See accompanying Notes to the Basic Financial Statements. 44 45

NOTES TO THE BASIC

FINANCIAL STATEMENTS
46 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
(This page is intentionally left blank)
City of Anderson
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
47 Page
Note 1 – Summary of Significant Accounting Policies ............................................................................................ 49 A. Financial Reporting Entity ........................................................................................................................ 49 B. Basis of Accounting and Measurement Focus .......................................................................................... 50 C. Cash, Cash Equivalents, and Investments ................................................................................................. 52 D. Fair Value Measurement ........................................................................................................................... 53 E. Receivables ............................................................................................................................................... 53 F. Interfund Transactions .............................................................................................................................. 53 G. Restricted Assets ....................................................................................................................................... 54 H. Inventories and Prepaid Items ................................................................................................................... 54 I. Capital Assets ............................................................................................................................................ 54 J. Deferred Outflows and Inflows of Resources ........................................................................................... 55 K. Interest Payable ......................................................................................................................................... 55 L. Unearned Revenue .................................................................................................................................... 55 M. Compensated Absences ............................................................................................................................. 55 N. Leases ........................................................................................................................................................ 55 O. Pensions .................................................................................................................................................... 57 P. Subscription Based Information Technology Arrangements Liabilities ................................................... 57 Q. Long-Term Debt ....................................................................................................................................... 58 R. Property Taxes .......................................................................................................................................... 58 S. Net Position and Fund Balances ............................................................................................................... 58 T. Use of Estimates........................................................................................................................................ 59 U. Implementation of New GASB Pronouncements ..................................................................................... 60 Note 2 – Cash and Investments ................................................................................................................................. 60 A. Deposits ..................................................................................................................................................... 61 B. Investments ............................................................................................................................................... 61 C. Local Agency Investments Fund (“LAIF”) ............................................................................................... 61 D. Fair Value Measurement ........................................................................................................................... 62 E. Risk Disclosures ........................................................................................................................................ 62 Note 3 – Interfund Transactions ............................................................................................................................... 63 A. Due From/To Other Funds........................................................................................................................ 63 B. Advances From/To Other Funds ............................................................................................................... 63 C. Transfers .................................................................................................................................................. 64 Note 4 – Lease Receivable .......................................................................................................................................... 64 Note 5 – Capital Assets ............................................................................................................................................... 65 A. Governmental Activities ........................................................................................................................... 65 B. Business-Type Activities .......................................................................................................................... 66 Note 6 – Long-Term Liabilities ................................................................................................................................. 67 A. Governmental Activities ........................................................................................................................... 67 B. Business-Type Activities .......................................................................................................................... 69 City of Anderson
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024
48 Page
Note 7 – Self-Insurance Programs............................................................................................................................. 71 Note 8 – Defined Benefit Pension Plans .................................................................................................................... 72 A. General Information about the Pension Plan ............................................................................................ 72 B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension ................................................................................... 74 Note 9 – Deferred Compensation Plan ...................................................................................................................... 78 Note 10 – Net Position and Fund Balances ............................................................................................................... 79 A. Government-Wide Financial Statements .................................................................................................. 79 B. Fund Financial Statements ........................................................................................................................ 79 Note 11 – Stewardship, Compliance and Accountability ........................................................................................ 80 A. Deficit Fund Balance/Net Position ........................................................................................................... 80 B. Excess of Expenditures over Appropriations ............................................................................................ 80 Note 12 – Successor Agency Trust for Assets of the Former Redevelopment Agency ......................................... 81 Note 13 – Commitments and Contingencies ............................................................................................................. 82 Note 14 – Changes to or within the Financial Reporting Entity and Error Corrections ..................................... 83 City of Anderson
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
49 Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Anderson, California, (the “City”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the significant policies:

A. Financial Reporting Entity
The City was incorporated January 16, 1956, under the General Laws of the State of California. The City is governed by an elected five-member council.

Blended Component Unit
In evaluating how to define the City for financial reporting purposes, management has considered all potential component units. The primary criteria for including a potential component unit within the reporting entity are the governing body’s financial accountability and a financial benefit or burden relationship and whether it is misleading to exclude. A primary government is financially accountable and shares a financial benefit or burden relationship, if it appoints a voting majority of an organization’s governing body and it is able to impose its will on the organization, or if there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government. A primary government may also be financially accountable if an organization is fiscally dependent on the primary government regardless of whether the organization has a separately elected governing board, a governing board appointed by a higher level of government, or a jointly appointed board, and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government.

Management determined that the following component unit should be blended based on the criteria above:

Although the following is legally separate from the City, it has been “blended” as though it is part of the City because the component unit’s governing body is substantially the same as the City’s and there is a financial benefit or burden relationship between the City and the component unit; management of the City has operational responsibilities for the component unit; and/or the component unit provides services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though it does not provide services directly to it.

Anderson Public Financing Authority - The Anderson Public Financing Authority (the “Authority”) was created primarily 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 Authority is authorized, among other things, to issue bonds pursuant to the provisions of the Marks-Roos Local Bond Pooling Act of 1985 for the purpose of financing facilities and improvements. The members of the City Council serves as the governing board of the Authority and there is a financial benefit or burden relationship between them and the Authority. The Authority does not issue separate financial statements.

The City had no discretely presented component units.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
50 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Government-Wide Financial Statements
The Government-Wide Financial Statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Fiduciary activities are not included in these statements.

Certain types of transactions are reported as program revenues for the City in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
 Due from and to other funds
 Transfers in and out
Governmental Fund Financial Statements
All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balances.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

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 these purposes, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, other local taxes, franchise fees, forfeitures and penalties, motor license fees, rents and concessions, interest revenue, and state and federal grants and subventions. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
51 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued)
Reconciliations of the fund financial statements to the Government-Wide Financial Statements are provided to explain the differences.

Certain indirect costs are included as part of the program expenses reported for individual functions and activities.

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 Special Revenue 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 Special Revenue 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.
 CDBG Special Revenue 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 Special Revenue 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.

Proprietary Fund Financial Statements
Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

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 proprietary funds are charges to customers for sales and services. Operating expenses for the proprietary funds include the costs 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.

A separate column representing internal service fund is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities and business-type activities in the Government-Wide Financial Statements.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
52 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued)
The City reports the following major proprietary funds:
 Water Enterprise Fund - The Water Fund accounts for the operation and maintenance of the City’s water utility.
 Sewer Enterprise Fund - The Sewer Fund accounts for the operation and maintenance of the City’s wastewater utility.

Additionally, the City reports the following fund types:
 Internal Service Fund - Internal Service Fund accounts for the costs of data processing, customer service, maintenance, insurance, and fleet management services charged to individual funds.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a statement of fiduciary net position and a statement of changes in fiduciary net position. The City’s fiduciary fund represent private purpose trust fund and custodial funds. Both private purpose trust fund and custodial funds are accounted for on the full accrual basis of accounting where the assets associated with the activity are controlled by the City and the assets are not derived 1) solely from the government’s own-source revenues or 2) from government-mandated nonexchange transactions or voluntary nonexchange transactions.

The City reports the following fiduciary fund type:
 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 (the “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 Interagency Narcotics Task Force (SINTF) Fund and the County Seizure Fund.

C. Cash, Cash Equivalents, and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. All cash and investments of proprietary funds are held in the City's investment pool. These cash pools have the general characteristics of a demand deposit account, therefore, all cash and investments in the proprietary funds are considered cash and cash equivalents for Statement of Cash Flows purposes.

Investments are stated at fair value.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
53 Note 1 – Summary of Significant Accounting Policies (Continued) D. Fair Value Measurement
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosure about fair value measurement. Investments, unless otherwise specified at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:

Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.

Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.

Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

E. 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, 2024.

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.

F. Interfund Transactions
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.

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:
 To allocate funds for operations;
 To allocate funds for equipment replacement;
 To allocate funds for capital projects.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
54 Note 1 – Summary of Significant Accounting Policies (Continued) F. Interfund Transactions (Continued)
These transactions result in short‐term 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.” G. 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.

H. Inventories and Prepaid Items
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.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements by using purchase method.

A nonspendable fund balance has been reported in the governmental funds to show that inventories and prepaid items do not constitute “available spendable resources,” even though they are a component of current assets.

I. Capital Assets
In the Government-Wide Financial Statements, capital assets are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Donated capital assets are valued at their acquisition value.

Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method.

The lives used for depreciation purposes are as follows:

Buildings Primarily 25 to 30 years
Improvements Primarily 10 to 30 years
Equipment Primarily 5 to 10 years
Vehicles Primarily 5 to 10 years
Furniture and fixtures 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.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
55 Note 1 – Summary of Significant Accounting Policies (Continued) J. Deferred Outflows and Inflows of Resources
The statement of net position and balance sheet – governmental funds reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable.

Deferred Outflows of Resources represent a consumption of net assets that applies to future periods.

Deferred Inflows of Resources represent an acquisition of net assets that applies to future periods.

K. Interest Payable
In the Government-wide Financial Statements, interest payable on long-term debt is recognized as the liability incurred for governmental activities and business-type activities.

In the Fund Financial Statements, only proprietary fund types recognize the interest payable when the liability is incurred.

L. Unearned Revenue
Unearned revenue is recognized for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues are prepaid charges for services and grants received but not yet earned.

M. 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 U.S. GAAP, no liability is recorded for nonvesting accumulated rights to receive sick pay benefits.

N. Leases
Lessee
The City has a policy to recognize a lease liability and a right-to-use asset (lease asset) in the financial with a lease term greater than one year. Variable payments based on future performance or usage of the underlying assets are not included in the measurement of the lease liability.

At the commencement of a lease, the lease liability is measured at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.

Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straight–line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the State has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
56 Note 1 – Summary of Significant Accounting Policies (Continued) N. Leases (Continued)
Lessee (Continued)
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
 The lease term includes the noncancelable period of the lease, plus any option periods that are reasonably certain to be exercised.
 Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement of a lease and will remeasure any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported as right-to-use along with other capital assets and lease liabilities are reported on the statement of net position.

Lessor
The City is a lessor for leases of buildings and recognizes lease receivables and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable.

At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.  The City uses the incremental borrowing rate (IBR) provided by the financial institution during implementation for existing leases or the current rate at the time a new lease is executed or modified.  The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised.
 Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
57 Note 1 – Summary of Significant Accounting Policies (Continued) O. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value.

The following timeframes are used for pension reporting:

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

P. Subscription Based Information Technology Arrangements Liabilities The City recognizes subscription liabilities with a subscription term greater than one year in the government-wide and proprietary fund financial statements. Variable payments based on future performance of the City, usage of the underlying IT assets, or number of user seats are not included in the measurement of the subscription liability.

At the commencement of a subscription, the City initially measures the subscription liability at the present value of subscription payments expected to be made during the subscription term. Subsequently, the lease liability is reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straightline basis over its useful life.

Key estimates and judgments related to subscription liabilities include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.
 The City uses the interest rate charged by the SBITA vendor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscription liabilities.
 The subscription term includes the noncancellable period of the SBITA. Subscription payments included in the measurement of the subscription liability are composed of fixed payments.

The City monitors changes in circumstances that would require a remeasurement of its SBITA and will remeasure any subscription asset or liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
58 Note 1 – Summary of Significant Accounting Policies (Continued) Q. Long-Term Debt
In the Government-Wide Financial Statements and Proprietary Fund Financial Statements, long-term debt and other long-term obligations are reported as liabilities in the appropriate activities. Bond premium 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 when incurred.

The governmental fund financial statements do not present long-term liabilities. Consequently, long-term debt is shown as a reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the GovernmentWide Statement of Net Position.

R. Property Taxes
Under California law, property taxes are assessed and collected by the counties for up to 1% of assessed property value, plus other increases approved by the voters. Property taxes collected are pooled and then allocated to the cities based on complex formulas. The following are key dates pertaining to property taxes:

Lien Date January 1
Levy Date June 30
Due Dates November 1 and February 1
Collection Dates December 10 and April 10
S. Net Position and Fund Balances
In the Government-Wide Financial Statements and proprietary fund financial statements, net position is classified as follows:

Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation and amortization, reduced by the outstanding balances of retention payable and debt that are attributable to the acquisition, construction, or improvement of those assets.

Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
59 Note 1 – Summary of Significant Accounting Policies (Continued) S. Net Position and Fund Balances (Continued)
In the Governmental Fund Financial Statements, fund balances are classified as follows:

Nonspendable – Nonspendable fund balances are items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, or items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds.

Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.

Committed – Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body, and that remain binding unless removed in the same manner. The City Council is considered the highest authority for the City. Adoption of a resolution by the City Council is required to commit resources or to rescind the commitment.

Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has authorized by resolution the City Manager or the City Fiscal Officer for that purpose.

Unassigned – This amount is for any portion of the fund balances that do not fall into one of the above categories. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that 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).

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.

T. Use of Estimates
The preparation of the basic financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
60 Note 1 – Summary of Significant Accounting Policies (Continued) U. Implementation of New GASB Pronouncements
GASB Statement No. 100 – In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. Implementation of this Statement did not have a significant effect to the City’s financial statements for the fiscal year ended June 30, 2024.

Note 2 – Cash and Investments
Cash and investments as of June 30, 2024, are classified in the accompanying financial statements as follows:

Fiduciary
Governmental Business-Type Fund Statement
Activities Activities Net Position Total
Unrestricted assets:

Cash and investments 4,443,435 $ 2,556,814 $ 445,620 $ 7,445,869 $ Restricted assets:

Cash and investments with fiscal agents - 58 489,387 489,445 Total cash and investments $ 4,443,435 $ 2,556,872 $ 935,007 $ 7,935,314 Statement of Net Position
Cash and investments at June 30, 2024 consisted of the following:

Cash:

Petty cash 850 $
Demand deposits 3,806,396
Total cash and cash equivalents 3,807,246
Investments:

Money market funds 102,673
Negotiable certificates of deposit 266,904
Local Agency Investment Fund 3,269,046
Total investments 3,638,623
Total cash and investments 7,445,869
Cash and investments with fisical agents:

Money market funds 489,445
Total $ 7,935,314
City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
61 Note 2 – Cash and Investments (Continued)
A. Deposits
The carrying amounts of the City’s demand deposits were $3,806,396 at June 30, 2024. Bank balances at that date were $4,222,824, the total amount of which was collateralized or insured with accounts held by the pledging financial institutions in the City’s name as discussed below.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City did not waive the collateral requirement for deposits insured by FDIC.

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances.

Interest income from cash and investments with fiscal agents is credited directly to the related fund.

B. Investments
Under the provisions of the City’s investment policy, and in accordance with California Government Code, the following investments are authorized:

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio One Issuer United states treasury obligations 5 years No Limit None Bankers' acceptances 180 days 15% None
Negotiable certificates of deposit 5 years 30% None
Commercial paper 270 days 15% 5%
Medium-term notes 5 years 15% None
Money market mutual funds N/A 20% None
Local Agency Investment Fund ("LAIF") N/A No Limit None N/A - Not Applicable
C. Local Agency Investments Fund (“LAIF”)
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. As of June 30, 2024, the City had $3,269,046 invested in LAIF.

LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. LAIF is reported at amortized cost, which approximates fair value.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
62 Note 2 – Cash and Investments (Continued)
D. Fair Value Measurement
At June 30, 2024, investments are reported at fair value. The following table presents the fair value measurements of investments on a recurring basis and the levels with GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2024:

Investment Type Level 2 Uncategorized Total
Money market mutual fund $ - $ 102,673 $ 102,673
Negotiable certificates of deposit (1) - 266,904 266,904 Local Agency Investment Fund - 3,269,046 3,269,046
Cash and investments with fisical agents:

Money market mutual fund - 489,445 489,445
Total $ 3,861,164 266,904 $ 4,128,068 $
(1) Pricing based on Institutional Bond Quotes - evaluations based on various market and industry inputs.

Measurement Input
E. Risk Disclosures
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 LAIF.

Custodial Credit Risk - For deposits, custodial credit risk is the risk that, in the event of the failure of a depository financial institution, the City 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. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer), the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At June 30, 2024, none of the City’s deposits or investments were exposed to custodial credit risk.

Credit Risk - Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. To be eligible to receive City money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California's communities, including low-and-moderate income neighborhoods. At June 30, 2024, the City’s credit risks, expressed on a percentage basis, were as follows:

Moody's S&P's % of Investments
Credit Credit with Interest
Investment Type Rating Rating Rate Risk
Money market mutual fund Not Rated Not Rated 2.82%
Negotiable certificates of deposit Not Rated Not Rated 7.34% Local Agency Investment Fund Not Rated Not Rated 89.84% Total 100.00%
Credit Quality Distribution for Securities
with Credit Exposure as a Percentage of Total Investments City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
63 Note 3 – Interfund Transactions
A. Due From/To Other Funds
The following is a summary of due to and due from other funds as of June 30, 2024:

Due from Other Funds General Fund
Low and Mod
Income
Housing Special
Revenue Fund
Nonmajor
Governmental
Funds
Water
Enterprise
Fund
Internal Service
Fund Total
Governmental Funds:

General Fund $ - $ 1,025,432 $ 50,569 $ 2,185 $ 1,326,331 $ 2,404,517 Gas Tax Special Revenue Fund 111,540 - 149,105 - 260,645 - Nonmajor Governmental Funds 2,115,498 9,198 - 561,347 783,271 3,469,314 Proprietary Fund:

Sewer Enterprise Fund - 27,272 15,487 - 42,759 -
Total $ 2,227,038 $ 1,061,902 $ 215,161 $ 563,532 $ 2,109,602 $ 6,177,235 Governmental Funds Proprietary Funds
Due to Other Funds
The interfund balances resulted from borrowing of cash for temporary purposes. For nonmajor governmental funds, balances are expected to be reimbursed when received fund from Grantor. For Internal Service Fund, City intends to recover fund by increase interfund service charges.

B. Advances From/To Other Funds
At June 30, 2024, the City had the following advances:

Advances from Other
Funds
Governmental Fund
Advances to Other Funds
Low and Mod Income
Housing Special Revenue
Fund
Governmental Funds:

Nonmajor Governmental Funds 50,892 $
Proprietary Fund:

Sewer Enterprise Fund 764,557
Total $ 815,449
The advances is to fund the outstainding LINC & Seasons Low-income housing loans in the Low and Mod Income Housing Speical Revenue Fund with matuirty dates within the fiscal year of 2057 and 2058. The related interest income will be used to pay back these advances.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
64 Note 3 – Interfund Transactions (Continued)
C. Transfers
For the year ended June 30, 2024, the City had the following transfers:

Transfers Out
General Fund
Nonmajor
Governmental
Funds Total
Governmental Funds:

General Fund 30,496 $ 272,152 $ 302,648 $
Gas Tax Special Revenue Fund - 14,832 14,832
Total $ 286,984 30,496 $ 317,480 $
Governmental Funds
Transfers In
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.

Note 4 – Lease Receivable
The City leases various types of property including land, and buildings. Leases receivable consist of agreements with other entities for the “right–to–use” the underlying assets at various locations owned by the City. The remaining terms of the agreements range from 6 to 20 years. The interest rates used calculated the net present value of the lease receivable ranged from 0.645% to 2.092%.

For the fiscal year ended June 30, 2024, the City recognized $19,471 in lease revenue and $5,136 in interest revenue, and the outstanding net present value of the lease receivable amount is $240,977.

Future annual lease receivables as of June 30, 2024 are as follows:

Fiscal Year Principal Interest Total
2025 $ 9,970 $ 4,932 $ 14,903
2026 10,166 4,736 14,903
2027 10,366 4,536 14,903
2028 10,570 4,332 14,903
2029 12,563 4,125 16,688
2030 - 2034 59,025 17,068 76,093
2035 - 2039 68,513 10,592 79,105
2040 - 2044 59,804 3,160 62,964
Total $ 53,481 240,977 $ 294,462 $
City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
65 Note 5 – Capital Assets
A. Governmental Activities
A summary of changes in the capital assets for the governmental activities for the year ended June 30, 2024 is as follows:

Balance Balance
July 1, 2023 Additions Deletions Transfers June 30, 2024 Capital assets, not being depreciated:

Land $ 2,902,940 $ - $ - $ 2,902,940 - $
Construction in progress 1,911,325 9,265 - (1,801,240) 119,350 Total capital assets, not being depreciated 4,814,265 9,265 - (1,801,240) 3,022,290 Capital assets, being depreciated:

Buildings 5,129,436 - - 5,129,436 -
Improvements 31,590,324 847,722 - 1,801,240 34,239,286
Equipment 4,802,209 334,284 (127,631) - 5,008,862
Total capital assets, being depreciated 41,521,969 1,182,006 (127,631) 1,801,240 44,377,584 Less accumulated depreciation for:

Buildings (3,273,949) (114,899) - (3,388,848) -
Improvements (13,158,436) (1,094,962) - (14,253,398) -
Equipment (3,242,783) (326,400) 127,631 - (3,441,552)
Total accumulated depreciation (19,675,168) (1,536,261) 127,631 - (21,083,798) Total capital assets, being depreciated, net 21,846,801 (354,255) - 1,801,240 23,293,786 Right to use assetes, being amortized:

Right-to-use leased equipment 165,059 - (20,331) - 144,728 Right-to-use leased vehicles 1,026,062 651,463 (152,134) - 1,525,391 Right-to-use subscription assets 84,717 79,890 (84,717) - 79,890 Total capital assets, being amortized 1,275,838 731,353 (257,182) - 1,750,009 Less accumulated amortization for:

Right-to-use leased equipment (53,540) (25,139) 20,331 - (58,348) Right-to-use leased vehicles (430,967) (296,783) 152,134 (575,616) Right-to-use subscription assets (42,358) (58,507) 84,717 - (16,148) Total accumulated amortization (526,865) (380,429) 257,182 - (650,112) Total right to use assets, being amortized, net 748,973 350,924 - 1,099,897 - Governmental activities capital assets, net $ 27,410,039 $ 5,934 $ - $ 27,415,973 - $ Depreciation and amortization expenses were charged to functions/programs of the governmental activities for the fiscal year ended June 30, 2024 as follows:

Depreciation Amortization
General government 68,942 $ $ 83,646
Public safety 137,943 296,783
Public works 542,634 -
Community development 589,708 -
Recreation and cultural 197,034 -
Total depreciation and amortization expense $ 1,536,261 $ 380,429 City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
66 Note 5 – Capital Assets (Continued)
B. Business-Type Activities
A summary of changes in the capital assets for the business-type activities for the year ended June 30, 2024 is as follows:

Balance Balance
July 1, 2023 Additions Deletions Transfers June 30, 2024 Capital assets, not being depreciated:

Construction in progress 3,858 $ 258,037 $ - $ - $ 261,895 $ Total capital assets, not being depreciated 3,858 258,037 - 261,895 - Capital assets, being depreciated:

Buildings 1,002,295 - - 1,002,295 -
Improvements 23,009,526 58,777 - 23,068,303 -
Equipment 983,613 - - 983,613 -
Total capital assets, being depreciated 24,995,434 58,777 - 25,054,211 - Less accumulated depreciation:

Buildings (784,140) (18,432) - (802,572) -
Improvements (13,259,848) (473,267) - (13,733,115) -
Equipment (595,993) (45,402) - (641,395) -
Total accumulated depreciation (14,639,981) (537,101) - (15,177,082) - Total capital assets, being depreciated, net 10,355,453 (478,324) - 9,877,129 - Business-type activities capital assets, net $ 10,359,311 $ (220,287) $ - $ 10,139,024 - $ Depreciation expense for business-type activities for the year ended June 30, 2024 was charged as follow:

Depreciation
Water enterprise fund 241,955 $
Sewer enterprise fund 295,146
Total depreciation expense $ 537,101
City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
67 Note 6 – Long-Term Liabilities
A. Governmental Activities
A summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2024 is as follows:

Balance
July 1, 2023 Balance Due within Due in more
(As Restated) Additions Deletions June 30, 2024 One Year One Year Financing purchase:

California Infrastructure and Economic
Development Bank 579,481 $ - $ $ (33,709) $ 545,772 $ 34,750 $ 511,022 Redding Joint Powers Authority 6,912 - (6,912) - - -
Tri-Counties Bank 56,898 - (13,889) 43,009 14,817 28,192 Municipal Finance Corporation (Sweeper) 186,980 - (60,794) 126,186 62,314 63,872 Municipal Finance Corporation (Vactor truck) 244,279 - (57,783) 186,496 59,921 126,575 Other liabilities:

Lease liabilities 631,987 651,463 (360,808) 922,642 297,792 624,850 Subscription payable 42,745 79,890 (68,744) 53,891 26,274 27,617 Compensated absences 505,488 34,376 (40,491) 499,373 124,843 374,530 Total $ 2,254,770 $ 765,729 $ (643,130) $ 2,377,369 $ 620,711 $ 1,756,658 California Infrastructure and Economic Development Bank 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 through August 1, 2036, bearing an interest rate of 3.09% payable semi‐annually on February 1 and August 1. The amount outstanding at June 30, 2024 was $545,772.

The future debt service payments as of June 30, 2024, are as follows:

Fiscal Year Principal Interest Total
2025 $ 34,750 $ 16,327 $ 51,077
2026 35,824 15,237 51,061
2027 36,930 14,113 51,043
2028 38,072 12,954 51,026
2029 39,249 11,760 51,009
2030-2034 215,202 39,547 254,749
2035-2037 145,745 6,847 152,592
Total $ 545,772 $ 116,785 $ 662,557
Financing Purchase – 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. The outstanding balance was paid off during the year ended at June 30, 2024.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
68 Note 6 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Financing Purchase – 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, 2027, bearing an interest rate of 3.24%, payable monthly on the 20th day of the month. The financing purchase is collateralized by the vehicles. The amount outstanding at June 30, 2024 was $43,009.

The future debt service payments as of June 30, 2024, are as follows:

Fiscal Year Principal Interest Total
2025 $ 14,817 $ 2,356 $ 17,173
2026 15,808 1,365 17,173
2027 12,384 334 12,718
Total $ 43,009 $ 4,055 $ 47,064
Financing Purchase – 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 purchase is collateralized by the sweeper truck. The amount outstanding at June 30, 2024 was $126,186.

The future debt service payments as of June 30, 2024, are as follows:

Fiscal Year Principal Interest Total
2025 $ 62,314 $ 3,155 $ 65,469
2026 63,872 1,597 65,469
Total $ 4,752 126,186 $ 130,938 $
Financing Purchase – Municipal Finance Corporation (Vactor Truck) In June 2023, the City entered into a five-year finance purchase agreement for the Vactor Truck with Municipal Financing Corporation at a 3.7% annual interest rate with an annual payment ranging from $55,721 to $64,437 due on June 21 of each year from 2023 through 2027. The outstanding balance at June 30, 2024 was $186,496.

The future debt service payments as of June 30, 2024, are as follows:

Fiscal Year Principal Interest Total
2025 $ 59,921 $ 6,900 $ 66,821
2026 62,138 4,683 66,821
2027 64,437 2,384 66,821
Total $ 13,967 186,496 $ 200,463 $
City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
69 Note 6 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Lease Liability
The City has entered into leases for infrastructure, equipment and vehicle uses. The terms of the agreements are between 1 year and 7 years with a range of an implicit rate from 0.5280% to 3.7950%. Principal and interest to maturity are as follows:

Fiscal Year Principal Interest Total
2025 $ 297,792 $ 24,767 $ 322,559
2026 254,400 17,007 271,407
2027 163,845 10,235 174,080
2028 129,796 4,636 134,432
2029 59,935 1,113 61,048
2030-2031 16,874 224 17,098
Total $ 922,642 $ 57,982 $ 980,624
Subscription Liability
The City has entered into subscriptions for information technology arrangements. The terms of the arrangements is 2 years with a range of an implicit rate from 0.00% to 3.041%. Principal and interest to maturity are as follows:

Fiscal Year Principal Interest Total
2025 $ 26,274 $ 726 $ 27,000
2026 27,617 384 28,001
Total $ 53,891 $ 1,110 $ 55,001
Compensated Absences
The long-term portion of compensated absences payable has been accrued for the Governmental Activities on the Government-Wide Financial Statements. Typically, the General Fund has been used to liquidate the liability. The balance outstanding at June 30, 2024 was $499,373.

B. Business-Type Activities
The following is a summary of changes in long-term liabilities for business-type activities for the year ended June 30, 2024:

Balance
July 1, 2023 Balance Due within Due in more
(As Restated) Additions Deletions June 30, 2024 One Year One Year CSDA Wastewater Revenue Bonds,
Series 2007A 895,000 $ - $ (65,000) $ 830,000 $ 70,000 $ $ 760,000 2001 Wastewater System Improvements
Ceritificate of Participation 161,500 - (5,500) 156,000 5,500 150,500 USDA Loan 1,410,000 - (49,000) 1,361,000 51,000 1,310,000 Compensated absences 75,960 23,274 (12,367) 86,867 21,717 65,150 Total $ 2,542,460 $ 23,274 $ (131,867) $ 2,433,867 $ 148,217 $ 2,285,650 City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
70 Note 6 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
California Statewide Communities Development Authority (CSDA) 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.

The amount outstanding at June 30, 2024 totaled $830,000. The annual debt service requirements on these bonds are as follows:

Fiscal Year Principal Interest Total
2025 $ 70,000 $ 36,695 $ 106,695
2026 70,000 33,545 103,545
2027 75,000 30,283 105,283
2028 75,000 26,908 101,908
2029 80,000 23,420 103,420
2030-2034 460,000 55,695 515,695
Total $ 206,546 830,000 $ 1,036,546 $
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 $13,041 while total pledged revenues were $1,807,376. Total principal and interest remaining on the certificates is $232,095 which is the amount of the remaining sewer usage charges pledged. The amount outstanding at June 30, 2024 was $156,000.

Fiscal Year Principal Interest Total
2025 $ 5,500 $ 7,279 $ 12,779
2026 6,000 7,006 13,006
2027 6,000 6,721 12,721
2028 6,500 6,424 12,924
2029 7,000 6,104 13,104
2030-2034 39,000 25,223 64,223
2035-2039 50,000 14,725 64,725
2040-2041 36,000 2,613 38,613
Total $ 76,095 156,000 $ 232,095 $
City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
71 Note 6 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
USDA Loan
Borrowed on November 14, 2001 from the U.S. Department of Agriculture (“USDA”), 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. Total pledged revenues were $1,807,376. The amount outstanding at June 30, 2024 was $1,361,000.

The annual debt service requirements to maturity are as follows:

Fiscal Year Principal Interest Total
2025 $ 51,000 $ 58,428 $ 109,428
2026 54,000 56,131 110,131
2027 56,000 53,725 109,725
2028 58,000 51,231 109,231
2029 61,000 48,628 109,628
2030-2034 346,000 183,772 529,772
2035-2039 430,000 124,731 554,731
2040-2041 305,000 20,409 325,409
Total $ 1,361,000 $ 597,055 $ 1,958,055
Compensated Absences
All vested vacation and compensatory leave time is recognized as an expense and as a liability in the business-type funds at the time the liability vests. The Water and Sewer Enterprise funds have been used to liquidate the liability.

The balance outstanding at June 30, 2024 was $86,867.

Note 7 – Self-Insurance Programs
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 up 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 up to $750,000. Excess coverage is provided for claims over the shared risk layer up to $40,000,000.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
72 Note 7 – Self-Insurance Programs (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 the 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 fund to account for the costs of self‐insurance. While the ultimate amount of the costs of self‐insurance through June 30, 2024, 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, 2024, including incurred but not reported claims (IBNRs). Claims paid for the workers’ compensation and general liability programs for the fiscal year ended June 30, 2024, were $331,845 and $26,510, respectively.

As of June 30, 2024, the JPA reported that the City has a surplus in its workers’ compensation program and general liability program in the amount of $35,258 and $81,181, respectively.

Note 8 – Defined Benefit Pension Plans
A. General Information about the Pension Plan
Plan Description
The City contributes to the California Public Employees’ Retirement System (“CalPERS”), a cost-sharing multipleemployer defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of the CalPERS annual financial report may be obtained from https://www.calpers.ca.gov/page/forms-publications.

Employees Covered by Benefit Terms
At June 30, 2022, valuation date, the following employees were covered by the benefit terms:

Misc Safety Safety
Misc Misc PEPRA Tier 2 Safety PEPRA Tier 2
Active employees 12 29 2 3 17 4
Transferred and terminated employees 22 25 0 11 10 2
Retired employees and beneficiaries 86 1 2 31 0 1
Total 120 55 4 45 27 7
City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
73 Note 8 – Defined Benefit Pension Plans (Continued)
A. General Information about the Pension Plan (Continued) Benefit Provided
CalPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Classic miscellaneous members become eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. Public Employee Pension Reform Act (PEPRA) miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation.

Following are the benefit provisions for each plan:
 Miscellaneous: 2.0% or 2.7% (at age 55) of the highest paid consecutive 12 months’ compensation  Miscellaneous Second Tier: 2.0% (at age 55) of the highest paid consecutive 36 months’ compensation  Miscellaneous PEPRA: 2.0% (at age 62) of the highest paid consecutive 36 months’ compensation  Safety Police: 3.0% (at age 50) of the highest paid consecutive 12 months’ compensation  Safety Police Second Tier: 3.0% (at age 55) of the highest paid consecutive 36 months’ compensation  Safety PEPRA: 2.7% (at age 57) of the highest paid consecutive 36 months’ compensation Participant is eligible for non-industrial disability retirement if becomes disabled and has at least 5 years of credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a monthly allowance equal to 1.8% of final compensation, multiplied by service. Industrial disability benefits are not offered to miscellaneous employees.

An employee's beneficiary may receive the basic death benefit if the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 6 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months' salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death.

Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree's designated survivor(s), or to the retiree's estate.

Benefit terms provide for annual cost-of-living adjustments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2 percent.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
74 Note 8 – Defined Benefit Pension Plans (Continued)
A. General Information about the Pension Plan (Continued) Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) requires that the employer contribution rates for all public employers 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. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to pay the Plan's allocated share of the risk pool's costs of benefits earned by employees during the year, and any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ended June 30, 2023 (the measurement date), the contribution rates were as follows:

Active Employee Employer
Plans Contribution Rate Contribution Rate
Miscellaneous 8.000% 14.030%
Miscellaneous Second Tier 7.000% 10.320%
Miscellaneous PEPRA 6.750% 7.470%
Safety Police 9.000% 22.470%
Safety Police Second Tier 9.000% 20.640%
Safety Police PEPRA 13.000% 12.780%
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2022 valuation was rolled forward to determine June 30, 2023 total pension liability based on the following actuarial methods and assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by Entry
Mortality Rate Table1 Derived using CalPERS’ Membership Data for all Funds Post Retirement Benefit Increase
Entry age normal in accordance with requirements of GASB 68 Contract COLA up to 2.3% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.3% thereafter
1 The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
75 Note 8 – Defined Benefit Pension Plans (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued)
Change of Assumption
For the measurement period June 30, 2023, there was no change of assumption.

Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points. The expected real rates of return by asset class are as follows:

Asset Class1
Assumed Asset
Allocation
Real Return
Years 1 - 101, 2
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
100%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study.

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

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
76 Note 8 – Defined Benefit Pension Plans (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued)
Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.90%, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90%) or 1 percentagepoint higher (7.90%) than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90%)
Miscellaneous Plan 14,791,882 $ 10,212,367 $ 6,443,034 $ Safety Plan 9,990,963 6,714,178 4,035,173
Plan's Net Pension Liability
Pension Plan Fiduciary Net Position
Detail information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report and can be obtained from CalPERS’ website under Forms and Publications.

Proportionate Share of Net Pension Liability and Pension Expense The following table shows the plan’s proportionate share of the risk pool collective net pension liability over the measurement period:

Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability
(a) (b) (c) = (a) - (b)
Miscellaneous
Balance at June 30, 2022 (Valuation Date) 31,904,579 $ 22,222,817 $ 9,681,762 $ Balance at June 30, 2023 (Measurement Date) 33,860,691 23,648,324 10,212,367 Net Changes during 2022-2023 1,956,112 1,425,507 530,605 Safety
Balance at June 30, 2022 (Valuation Date) 21,629,810 $ 15,561,982 $ 6,067,828 $ Balance at June 30, 2023 (Measurement Date) 23,886,373 17,172,195 6,714,178 Net Changes during 2022-2023 2,256,563 1,610,213 646,350 Increase (Decrease)
The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool. (1) In determining a cost-sharing plan’s proportionate share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation date (June 30, 2022). The risk pool’s fiduciary net position (“FNP”) subtracted from its total pension liability (“TPL”) determines the net pension liability (“NPL”) at the valuation date.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
77 Note 8 – Defined Benefit Pension Plans (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) (2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2023). Risk pool FNP at the measurement date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference thereto, the risk pool’s FNP at the measurement date denotes the aggregate risk pool’s FNP at June 30, 2023 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2022-2023).
(3) The individual plan’s TPL, FNP and NPL are also calculated at the valuation date. TPL is allocated based on the rate plan’s share of the actuarial accrued liability. FNP is allocated based on the rate plan’s share of the fair value assets.
(4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation date from (3) by the amounts in step (1), the risk pool’s total TPL and FNP, respectively. (5) The plan’s TPL as of the Measurement Date is equal to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan’s FNP as of the Measurement Date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period. (6) The plan’s NPL at the Measurement Date is the difference between the TPL and FNP calculated in (5).

Deferred outflows of resources, deferred inflows of resources, and pension expense is allocate based on the City’s share of contributions during measurement period.

The City’s proportionate share of the net pension liability was as follows:

Miscellaneous Safety
June 30, 2022 0.083819% 0.052532%
June 30, 2023 0.086021% 0.055240%
Change - Increase (Decrease) 0.002202% 0.002708%
The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the miscellaneous and the safety risk pool for the 2022-23 measurement period is 3.8 years, which was obtained by dividing the total service years of 600,538 (the sum of remaining service lifetimes of the active employees) by 160,073 (the total number of participants: active, inactive, and retired).

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
78 Note 8 – Defined Benefit Pension Plans (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) For the year ended June 30, 2024, the City recognized pension expenses for miscellaneous plan and safety plan in the amounts of $1,234,625 and $1,241,328, respectively. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred outflows Deferred inflows Deferred outflows Deferred inflows of Resources of Resources of Resources of Resources
Pension contribution made after measurement date 963,913 $ $ 886,973 - $ $ - Changes of assumptions 616,565 391,851 - -
Difference between expected and actual experience 521,703 (80,929) 492,947 (42,202) Difference between projected and actual earnings on
pension plan investments 1,653,473 918,836 - -
Adjustment due to differences in proportions (473,852) - 202,257 - Difference between City contributions and
proportionate share of contributions (198,813) - (93,189) - Total $ (753,594) 3,755,654 $ 2,892,864 $ (135,391) $
Miscellaneous Safety
Deferred outflows of resources related to pensions resulting from the City’s contributions made subsequent to the measurement date in the amount of $963,913 and $886,973 for the miscellaneous and safety plans, respectively, will be recognized as a reduction of the collective net pension liability in the year ending June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Deferred Outflows/ Deferred Outflows/
Measurement Period (Inflows) of Resources (Inflows) of Resources Ended June 30 Miscellaneous Plan Safety Plan
2024 $ 440,408 $ 619,787
2025 318,720 440,130
2026 1,231,574 784,935
2027 47,445 25,648
2028 - -
Thereafter - -
$ 2,038,147 $ 1,870,500
Note 9 – Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salaries until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency.

The plan assets are under the participants control. The plan assets are not included in the accompanying financial statements. At June 30, 2024, the amount held by the City for employees is $2,216,514.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
79 Note 10 – Net Position and Fund Balances
A. Government-Wide Financial Statements
Net Investment in Capital Assets
The following is the calculation of net investment in capital assets at June 30, 2024:

Governmental Business-Type
Activities Activities Total
Capital assets, net of
accumulated depreciation and amortization 27,415,973 $ $ 10,139,024 $ 37,554,997 Less: outstanding principal on capital related debt, net (1,877,996) (2,347,000) (4,224,996) Net investments in capital assets $ 25,537,977 $ 7,792,024 $ 33,330,001 B. Fund Financial Statements
Fund Balance Classification:

At June 30, 2024, fund balances are classified in the governmental funds as follows:

Low and
GAS Tax ADAP and CDBG Mod Income Nonmajor Total
General Special Home Special Special Housing Speical Governmental Governmental Fund Revenue Fund Revenue Fund Revenue Fund Revenue Fund Funds Funds Nonspendable:

Inventories and prepaid items 118,225 $ - $ $ - $ - $ - $ - $ 118,225 Total nonspendable 118,225 - - - - - 118,225
Restricted:

Grants - 7,651,099 - 3,007,118 175,114 - 10,833,331
Transportation - 691,098 - - - - 691,098
Capital Improvements - - - - 5,132,662 - 5,132,662
Other purposes - - - - 182,790 - 182,790
Total restricted - 691,098 7,651,099 3,007,118 5,490,566 - 16,839,881 Assigned:

Teen Center Maintenance and
Charter - PEG Fees 275,688 - - - - - 275,688
Total assigned 275,688 - - - - - 275,688
Unassigned (Deficit): 2,058,901 - - (77,366) - (218,282) 1,763,253 Total fund balance $ 2,452,814 $ 691,098 $ 7,651,099 $ 3,007,118 $ (77,366) $ 5,272,284 $ 18,997,047 City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
80 Note 11 – Stewardship, Compliance and Accountability A. Deficit Fund Balance/Net Position
In the Government-Wide Financial Statements, the City had a deficit unrestricted net position at June 30, 2024 for its governmental activities of $(10,668,451). The deficit was mainly due to the reporting of the net pension liability in the amount of $15,604,915.

The following funds had deficit balances as of June 30, 2024:

Funds Deficit
Major Governmental Fund:

Low and Mod Income Housing Special Revenue Fund $ (77,366) Nonmajor Governmental Funds:

Street Lighting Special Revenue Fund (152,331)
South Ridge Assessment District Special Revenue Fund (436) Vineyards Lighting and Landscape Disctrict Special Revenue Fund (49,934) Silvergate Sanitary Assessment Disctrict Special Revenue Fund (15,581) Proprietary Fund:

Internal Service Fund (2,161,709)
Fiduciary Funds:

Private Purpose Trust Fund (4,771,058)
County Seizure Fund $ (2,687)
The City is closely monitoring these funds and will begin transferring monies from the General Fund to slowly bring these funds to zero. The City remains committed to addressing the negative fund balances through continued annual reviews, assessment adjustments, and vigilant expense management, anticipating gradual improvement in the financial status of the affected Special Revenue Funds and Internal Service Fund.

The deficit in Private Purpose Trust Fund will be eliminated upon receiving Recognized Obligation Payment Schedule (“ROPS”) payments to repay the bonds.

B. Excess of Expenditures over Appropriations
Total expenditures exceeded budgeted appropriations in the following funds:

Expenditures
in Excess of
Appropriations Expenditures Appropriations
Major Governmental Funds:

General Fund 13,120,143 $ 13,850,963 $ (730,820) $
Gas Tax Special Revenue Fund 1,625,616 2,559,559 (933,943) CDBG Special Revenue Fund 101,953 199,554 (97,601)
Nonmajor Governmental Funds:

COPS and LLEBG Grants Special Revenue Fund 171,887 290,916 (119,029) Southridge Assessment District Special Revenue Fund 8,434 10,174 (1,740) Vineyard Lighting and Landscape Special Revenue Fund 24,909 27,804 (2,895) Silvergate Sanitary Assessment District Special Revenue Fund 10,775 12,425 (1,650) Sewer Capital Project Fund - 10,762 (10,762)
I-5/Deschutes Offramp Capital Project Fund 6,001 $ 6,997 $ (996) $ City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
81 Note 12 – Successor Agency Trust for Assets of the Former Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 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.

Long-Term Liabilities
A summary of changes in long-term liabilities if the Successor Agency for the year ended June 30, 2024 is as follows:

Balance Balance Due within Due in more
July 1, 2023 Additions Deletions June 30, 2024 One Year One Year 2015 Tax Allocation Refunding Bonds $ 5,675,000 $ (270,000) - $ $ 5,405,000 $ 275,000 $ 5,130,000 2015 Tax Allocation Refunding Bonds Discount (135,913) 8,490 - (127,423) - (127,423) Total $ 5,539,087 $ (261,510) - $ $ 5,277,577 $ 275,000 $ 5,002,577 City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
82 Note 12 – Successor Agency Trust for Assets of the Former Redevelopment Agency (Continued) Successor Agency to the Anderson Redevelopment Agency Tax Allocation Refunding Bonds, Series 2015 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 Bonds are 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. The outstanding balance at June 30, 2024 is $5,405,000.

The debt service requirements to maturity for the tax allocation bonds are as follows:

Fiscal Year Principal Interest Total
2025 $ 275,000 $ 204,288 $ 479,288
2026 285,000 195,709 480,709
2027 295,000 186,094 481,094
2028 305,000 175,403 480,403
2029 315,000 163,969 478,969
2030-2034 1,770,000 622,425 2,392,425
2035-2039 2,160,000 229,156 2,389,156
Total $ 5,405,000 $ 1,664,325 $ 7,664,169
Note 13 – Commitments and Contingencies
The City participates in a number of federal and state assisted grant programs, which are subject to program compliance audits by the grantors or their representatives. Final closeout audits of these programs have not yet been completed.

Accordingly, the City’s ultimate compliance with applicable grant requirements will be established at some future date.

Expenditures, if any, which may be disallowed by the granting agencies cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.

The City is currently a party to various claims and legal proceedings. In management’s opinion, the ultimate liabilities, if any, resulting from such claims and proceedings, will not materially affect the City’s financial position.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
83 Note 14 – Changes to or within the Financial Reporting Entity and Error Corrections During fiscal year 2024, changes to or within the financial reporting entity restatements and error corrections of beginning net position and fund net position are as follows:

June 30, 2023 Change to or within
As Previously the Financial Reporting Error June 30, 2023 Reported Entity Corrections As Restated
Government-Wide
Governmental Activities $ 35,638,266 $ 22,037 $ (175,421) $ 35,484,882 Business-Type Activities 9,855,397 (22,037) 57,643 9,891,003 Total primary government $ 45,493,663 $ - $ (117,778) $ 45,375,885 Governmental Funds:

Major Funds:

General Fund $ 4,730,389 $ - $ - $ 4,730,389
Gas Tax Fund 1,514,677 - - 1,514,677
ADAP and Home Fund 7,525,577 - - 7,525,577
CDBG Fund 3,197,447 - (175,421) 3,022,026
Low and Moderate Income Housing Fund (72,695) - - (72,695) Nonmajor Funds 5,556,686 (872,963) - 4,683,723
Total Governmental Funds $ 22,452,081 $ (872,963) $ (175,421) $ 21,403,697 Proprietary Funds:

Major Funds:

Water Enterprise Fund $ 4,020,903 $ 136,474 $ 18,604 $ 4,175,981 Sewer Enterprise Fund 5,834,494 (158,511) 39,039 5,715,022 Total Enterprise Funds $ 9,855,397 $ (22,037) $ 57,643 $ 9,891,003 Change to or within the Financial Reporting Entity
Water and sewer capital projects fund were previously reported as governmental fund, but changed to enterprise funds to reflect resources accumulated for water and sewer enterprise. Along with the change is to report CSDA Wastewater Revenue Bonds, Series 2007A in enterprise fund instead of governmental activities.

Error Correction
Governmental fuds are restated to correct due from other government beginning balance.

Enterprise funds are restated to correct prior year wastewater and water charges revenue. 84 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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REQUIRED SUPPLEMENTARY

INFORMATION (UNAUDITED)
85 86
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Sales taxes $ 6,669,000 $ 6,669,000 $ 6,794,008 $ 125,008 Property taxes 2,563,396 2,708,896 2,810,845 101,949
Motel taxes 830,000 830,000 535,915 (294,085)
Franchise taxes 399,131 399,131 413,489 14,358
Licenses and permits 528,766 535,366 271,457 (263,909)
Fines, forfeitures, and penalties 53,645 53,645 43,640 (10,005) Use of money and property 31,751 31,751 43,722 11,971
Intergovernmental revenue 90,628 90,628 124,128 33,500
Charges for current services 665,843 665,843 550,492 (115,351) Other revenues 169,423 234,423 177,954 (56,469)
Total revenues 12,001,583 12,218,683 11,765,650 (453,033) EXPENDITURES:

Current:

General government 1,166,655 1,196,655 1,893,830 (697,175) Public safety 7,945,117 8,590,557 8,574,330 16,227
Planning 510,079 510,079 395,498 114,581
Community development 825,555 825,555 708,026 117,529
Recreation and cultural 1,258,369 1,451,837 1,623,668 (171,831) Capital outlay 192,818 538,505 611,157 (72,652)
Debt service:

Principal 6,955 6,955 43,047 (36,092)
Interest and fiscal charges - - 1,407 (1,407)
Total expenditures 11,905,548 13,120,143 13,850,963 (730,820) Excess (deficiency) of revenues
over expenditures 96,035 (901,460) (2,085,313) (1,183,853) OTHER FINANCING SOURCES (USES):

Issuance of subscription liabilities - - 79,890 79,890
Transfers in 25,000 25,000 30,496 5,496
Transfers out (22,500) (248,417) (302,648) (54,231)
Total other financing sources (uses) 2,500 (223,417) (192,262) 31,155 NET CHANGE IN FUND BALANCE $ (1,124,877) 98,535 $ (2,277,575) (1,152,698) $ FUND BALANCE:

Beginning of year 4,730,389
End of year $ 2,452,814
City of Anderson
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2024
Required Supplementary Information (Unaudited)
87 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Use of money and property $ 1,950 $ 1,950 $ 48,140 $ 46,190 Intergovernmental revenue 1,200,138 1,200,138 1,347,430 147,292 Other revenues - 324,146 355,242 31,096
Total revenues 1,202,088 1,526,234 1,750,812 224,578
EXPENDITURES:

Current:

Public works 1,030,872 1,279,919 2,146,543 (866,624)
Capital outlay - 345,697 413,016 (67,319)
Total expenditures 1,030,872 1,625,616 2,559,559 (933,943) Excess (deficiency) of revenues
over expenditures 171,216 (99,382) (808,747) (709,365)
OTHER FINANCING (USES):

Transfers out (14,210) (14,210) (14,832) (622)
Total other financing (uses) (14,210) (14,210) (14,832) (622) NET CHANGE IN FUND BALANCE $ (113,592) 157,006 $ (823,579) (709,987) $ FUND BALANCE:

Beginning of year 1,514,677
End of year $ 691,098
City of Anderson
Required Supplementary Information (Unaudited)
Gas Tax Special Revenue Fund
For the Year Ended June 30, 2024
Budgetary Comparison Schedule (Continued)
88 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Use of money and property $ 1,000 $ 1,000 $ 125,522 $ 124,522 Intergovernmental - - 3,513 3,513
Total revenues 1,000 1,000 129,035 128,035
EXPENDITURES:

Current:

Community development 7,840 7,840 3,513 4,327
Debt service:

Principal 100,000 100,000 - 100,000
Total expenditures 107,840 107,840 3,513 104,327
NET CHANGE IN FUND BALANCE $ (106,840) $ (106,840) 125,522 $ 232,362 FUND BALANCE:

Beginning of year 7,525,577
End of year $ 7,651,099
City of Anderson
Required Supplementary Information (Unaudited)
ADAP and Home Special Revenue Fund
For the Year Ended June 30, 2024
Budgetary Comparison Schedule (Continued)
89 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Use of money and property $ 10,000 $ 10,000 $ 36,924 $ 26,924 Intergovernmental revenue - - 147,722 147,722
Total revenues 10,000 10,000 184,646 174,646
EXPENDITURES:

Current:

Community development 51,953 51,953 199,554 (147,601)
Debt service:

Principal 50,000 50,000 - 50,000
Total expenditures 101,953 101,953 199,554 (97,601)
NET CHANGE IN FUND BALANCE $ (91,953) (91,953) $ (14,908) 77,045 $ FUND BALANCE:

Beginning of year, as restated (Note 14) 3,022,026
End of year $ 3,007,118
City of Anderson
Required Supplementary Information (Unaudited)
CDBG Special Revenue Fund
For the Year Ended June 30, 2024
Budgetary Comparison Schedule (Continued)
90 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Use of money and property $ - $ - $ 26,735 $ 26,735
Total revenues - - 26,735 26,735
EXPENDITURES:

Current:

Community development 32,858 32,858 31,406 1,452
Total expenditures 32,858 32,858 31,406 1,452
Excess (deficiency) of revenues
over expenditures (32,858) (32,858) (4,671) 28,187
OTHER FINANCING SOURCES:

Transfers in - - - -
Total other financing sources - - - -
NET CHANGE IN FUND BALANCE $ (32,858) $ (32,858) (4,671) $ 28,187 FUND BALANCE (DEFICIT):

Beginning of year (72,695)
End of year $ (77,366)
City of Anderson
Required Supplementary Information (Unaudited)
Low and Moderate Income Housing Special Revenue Fund
For the Year Ended June 30, 2024
Budgetary Comparison Schedule (Continued)
91 92
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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Budget and Budgetary Accounting
Budgets for the General Fund and special revenue funds are adopted on a basis consistent with U.S. 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.

The budgetary comparison schedules are not presented for the State and Federal Transportation Special Revenue Fund, Asset Forfeiture Special Revenue Fund, Parking District Special Revenue Fund, Redevelopment Special Revenue Fund, Curbs, Gutters & Sidewalk Capital Projects Fund, and Shatec Project Area Capital Projects Fund.

City of Anderson
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2024
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. 93 Measurement Date June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 City's Proportion of the Net Pension Liability 0.08602% 0.08382% 0.10096% 0.19849% 0.19487% City's Proportionate Share of the Net Pension Liability 10,212,367 $ $ 9,681,762 $ 5,460,213 $ 8,372,308 $ 7,803,688 City's Covered Payroll $ 3,434,779 $ 2,480,261 $ 2,412,690 $ 2,344,535 $ 2,198,530 City's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll 33.63% 25.62% 226.31% 357.10% 354.95% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 69.84% 69.65% 81.85% 71.52% 72.40% Measurement Date June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 City's Proportion of the Net Pension Liability 0.05524% 0.05253% 0.05998% 0.07797% 0.07558% City's Proportionate Share of the Net Pension Liability $ 6,714,178 $ 6,067,828 $ 3,243,741 $ 5,194,699 $ 4,717,818 City's Covered Payroll $ 3,066,350 $ 2,221,452 $ 1,874,269 $ 1,583,986 $ 1,614,882 City's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll 45.67% 36.61% 173.07% 327.95% 292.15% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 71.89% 71.95% 83.17% 71.93% 73.31% California Public Employees' Retirement System ("CalPERS") Safety Plan For the Year Ended June 30, 2024
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan City of Anderson
Required Supplementary Information (Unaudited)
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios 94 Measurement Date June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 City's Proportion of the Net Pension Liability 0.19153% 0.18600% 0.18336% 0.17936% 0.06005% City's Proportionate Share of the Net Pension Liability $ 7,218,039 $ 7,332,084 $ 6,369,732 $ 4,979,414 $ 3,736,772 City's Covered Payroll $ 2,014,295 $ 2,011,939 $ 2,014,220 $ 1,883,404 $ 1,832,170 City's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll 358.34% 364.43% 316.24% 264.38% 203.95% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 73.25% 71.97% 73.16% 78.07% 83.03% Measurement Date June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 City's Proportion of the Net Pension Liability 0.07399% 0.07163% 0.07158% 0.07403% 0.03881% City's Proportionate Share of the Net Pension Liability $ 4,341,322 $ 4,280,292 $ 3,707,485 $ 2,847,939 $ 2,414,760 City's Covered Payroll $ 1,445,381 $ 1,337,391 $ 1,346,753 $ 1,235,687 $ 1,224,195 City's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll 300.36% 320.05% 275.29% 230.47% 197.25% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 73.55% 73.00% 73.93% 79.05% 81.42% California Public Employees' Retirement System ("CalPERS") Safety Plan For the Year Ended June 30, 2024
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan City of Anderson
Required Supplementary Information (Unaudited)
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios (Continued) 95 Fiscal year 2023-24 2022-23 2021-22 2020-21 2019-20
Actuarially Determined Contribution $ 963,913 $ 963,913 $ 841,610 $ 803,993 $ 721,746 Contribution in Relation to the
Actuarially Determined Contribution (963,913) (963,913) (841,610) (803,993) (721,746) Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll1 $ 3,530,953 $ 3,434,779 $ 2,480,261 2,412,690.00 $ 2,344,535 Contributions as a Percentage
of Covered Payroll 27.30% 28.06% 33.93% 33.32% 30.78%
Fiscal year 2023-24 2022-23 2021-22 2020-21 2019-20
Actuarially Determined Contribution $ 886,973 $ 886,973 $ 696,062 $ 642,053 $ 549,851 Contribution in Relation to the
Actuarially Determined Contribution (886,973) (886,973) (696,062) (642,053) (549,851) Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll1 $ 3,152,208 $ 3,066,350 $ 2,221,452 $ 1,874,269 $ 1,583,986 Contributions as a Percentage
of Covered Payroll 28.14% 28.93% 31.33% 34.26% 34.71%
Valuation Date June 30, 2021
Methods and Assumptions Usedto Determine Contribution Rates:

Actuarial cost method Actuarial Cost Method
Amortization method For details, see June 30, 2021 Funding Valuation Report.

Asset valuation method Fair Value of Assets.

Inflation 2.30%
Salary increases Varies by entry age and service
Payroll Growth 2.80%
Investment rate of return 6.80% net of pension plan investment and administrative expenses; includes inflation.

Retirement age
Mortality
1 Includes one year’s payroll growth using 2.80 percent payroll assumption for fiscal year 2023-24.

Notes to Schedule:

The probabilities of mortality are based on the 2021 CalPERS Experience Study. Pre-retirement and postretirement mortality rates include 15 years of projected mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.

The probabilities of retirement are based on the 2021 CalPERS Experience Study City of Anderson
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
California Public Employees' Retirement System ("CalPERS") Safety Plan For the Year Ended June 30, 2024
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan 96 Fiscal year 2018-19 2017-18 2016-17 2015-16 2014-15
Actuarially Determined Contribution $ 624,031 $ 529,589 $ 480,390 $ 429,631 $ 264,086 Contribution in Relation to the
Actuarially Determined Contribution (624,031) (529,589) (480,390) (429,631) (264,086) Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll1 $ 2,198,530 $ 2,014,295 $ 1,883,404 $ 1,832,170 $ 1,832,170 Contributions as a Percentage
of Covered Payroll 28.38% 26.29% 25.51% 23.45% 14.41%
Fiscal year 2018-19 2017-18 2016-17 2015-16 2014-15
Actuarially Determined Contribution $ 483,835 $ 408,103 $ 360,756 $ 305,203 $ 257,787 Contribution in Relation to the
Actuarially Determined Contribution (483,835) (408,103) (360,756) (305,203) (257,787) Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll1 $ 1,614,882 $ 1,445,381 $ 1,346,753 $ 1,235,687 $ 1,224,195 Contributions as a Percentage
of Covered Payroll 29.96% 28.23% 26.79% 24.70% 21.06%
City of Anderson
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
California Public Employees' Retirement System ("CalPERS") Safety Plan For the Year Ended June 30, 2024
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan 97 98
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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SUPPLEMENTARY INFORMATION
99 100
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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South Ridge Assessment District Special Revenue Fund - To account for the assessment district's expenditures and revenues of South Ridge Landscape Assessment District.

Vineyards Lighting and Landscape District Special Revenue Fund - To account for assessment district's revenue and expenditures related to maintenance of lighting and landscaping in the Vineyards housing subdivision.

COPS and LLEBG Special Revenue Fund - To account for law enforcement grant revenues and related expenses.

Redevelopment Special Revenue Fund - To account for housing funds related to the Shastec Project Area.

Silvergate Sanitary Assessment District Special Revenue Fund - To account for assessment district's expenditures and revenues of Silvergate Sanitary Assessment District.

Parking District Special Revenue Fund - To account for the expenditure and receipts of parking related funds.

NONMAJOR

GOVERNMENTAL FUNDS
EDBG Special Revenue Fund - To account for EDBG program income and grants provided for acquisition of real property, business assistance loans, and business assistance infrastructure.

Street Lighting Special Revenue Fund - To account for special assessment revenue and expenditures of City owned street lights.

State and Federal Transportation Special Revenue Fund - To account for intergovernmental funds received which are specified for street projects.

Asset Forfeiture Special Revenue Fund - To account for expenditures and revenues of funds received from seizures and forfeitures.

Curbs, Gutters, and Sidewalks Capital Projects Fund - To account for the revenues received for the construction of curbs, gutters, and sidewalks by the City.

Police Facility and Corp Yard Expansion Capital Projects Fund - To account for impact fees that are restricted for improvements to the City's public facilities.

Drainage Capital Projects Fund - To account for impact fees that are restricted for improvements to the City's drainage system.

Parks Capital Projects Fund - To account for impact fees that are restricted for improvements to the City's parks and grounds.

Shastec Project Area Fund - To account for projects related to the redevelopment activities in the Shastec Project Area.

Traffic Capital Projects Fund - To account for impact fees that are restricted to add or improve City streets and roads.

I 5/Deschutes Offramp Fund - To account for impact fees that are restricted to the development of the I 5/Deschutes interchange. 101
102
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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State and COPS and
Street Federal LLEBG Asset Parking
Lighting Transportation Grants Forfeiture District
ASSETS
Cash and cash equivalents $ 80 $ - 671,622 $ $ 182,790 $ 11,141 Accounts receivable - - - - -
Taxes receivable 1,303 - - - -
Interest receivable - - - - -
Loans receivable - - - - -
Due from other governments - - 16,188 - -
Due from other funds - - - - -
Advances to other funds - - - - -
Total assets $ 1,383 $ - 687,810 $ $ 182,790 $ 11,141
Liabilities:

Accounts payable and accrued liabilities $ 4,609 $ - $ 13,166 $ - $ - Unearned revenue - - 516,132 - -
Due to other funds 149,105 - - - -
Total liabilities 153,714 - 529,298 - -
Fund Balances:

Restricted - - 158,512 182,790 11,141
Unassigned (deficit) (152,331) - - - -
Total fund balances (152,331) - 158,512 182,790 11,141
Total liabilities, deferred inflows of
resources, and fund balances $ 1,383 $ - 687,810 $ $ 182,790 $ 11,141 (Continued)
City of Anderson
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Special Revenue Funds
103
Vineyards Silvergate
South Ridge Lighting and Sanitary
Assessment Landscape Assessment
EDBG Redevelopment District District District
ASSETS
Cash and cash equivalents 311,193 $ 16,602 $ - $ 1 $ - $ Accounts receivable - - - - -
Taxes receivable - - - 291 86
Interest receivable 542 - - - -
Loans receivable 65,970 - - - -
Due from other governments - - - - -
Due from other funds - - - - -
Advances to other funds - - - - -
Total assets $ 16,602 377,705 $ - $ 292 $ 86 $
Liabilities:

Accounts payable and accrued liabilities - $ - $ 436 $ 1,554 $ 180 $ Unearned revenue - - - - -
Due to other funds - - - 48,672 15,487
Total liabilities - - 436 50,226 15,667
Fund Balances:

Restricted 377,705 16,602 - - -
Unassigned (deficit) - - (436) (49,934) (15,581)
Total fund balances 377,705 16,602 (436) (49,934) (15,581) Total liabilities, deferred inflows of
resources, and fund balances $ 377,705 $ 16,602 $ - $ 292 $ 86 (Continued)
City of Anderson
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
Special Revenue Funds

RESOURCES AND FUND BALANCES

LIABILITIES, DEFERRED INFLOWS OF
June 30, 2024
104
Curbs, Police Facility
Gutters and and Corp
Sidewalks Yard Expansion Drainage Parks Traffic
ASSETS
Cash and cash equivalents 12,399 $ 5 $ 223,082 $ $ 7,649 $ 132,636 Accounts receivable - 31,231 10,999 7,588 23,074
Taxes receivable - - - - -
Interest receivable - - - - -
Loans receivable - - - - -
Due from other governments - - - - -
Due from other funds - 598,720 745,898 - 2,124,696
Advances to other funds - - - - 50,892
Total assets $ 12,399 $ 629,956 $ 979,979 $ 15,237 $ 2,331,298 Liabilities:

Accounts payable and accrued liabilities $ - $ 15,586 $ 11,969 $ - $ - Unearned revenue - - - - -
Due to other funds - - - 1,897 -
Total liabilities - 15,586 11,969 1,897 -
Fund Balances:

Restricted 12,399 614,370 968,010 13,340 2,331,298
Unassigned (deficit) - - - - -
Total fund balances 12,399 614,370 968,010 13,340 2,331,298 Total liabilities, deferred inflows of
resources, and fund balances $ 12,399 $ 629,956 $ 979,979 $ 15,237 $ 2,331,298 (Continued)
City of Anderson
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Capital Projects Funds
105
Total
Nonmajor
I-5/Deschutes Shastec Governmental
Offramp Project Area Funds
ASSETS
Cash and cash equivalents 253,385 $ 541,206 $ 2,363,791 $ Accounts receivable - 9,808 82,700
Taxes receivable - - 1,680
Interest receivable - - 542
Loans receivable - - 65,970
Due from other governments - - 16,188
Due from other funds - - 3,469,314
Advances to other funds - - 50,892
Total assets $ 541,206 263,193 $ 6,051,077 $
Liabilities:

Accounts payable and accrued liabilities - $ - $ 47,500 $ Unearned revenue - - 516,132
Due to other funds - - 215,161
Total liabilities - - 778,793
Fund Balances:

Restricted 541,206 263,193 5,490,566
Unassigned (deficit) - - (218,282)
Total fund balances 541,206 263,193 5,272,284
Total liabilities, deferred inflows of
resources, and fund balances $ 541,206 263,193 $ 6,051,077 $ (Concluded)
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
City of Anderson
Capital Projects Funds
June 30, 2024

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
106
State and COPS and
Street Federal LLEBG Asset Parking
Lighting Transportation Grants Forfeiture District
REVENUES:

Licenses and permits - $ - $ - $ - $ - $
Fines, forfeits, and penalties - - - 85,838 -
Use of money and property - - - 1,962 153
Intergovernmental revenue 63,628 - 290,916 - -
Other revenues - - - - -
Total revenues 63,628 - 290,916 87,800 153
EXPENDITURES:

Current:

Public safety - - 290,916 70,438 -
Public works 102,490 - - - -
Recreation and cultural - - - - -
Capital outlay - - - - -
Debt service:

Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures 102,490 - 290,916 70,438 -
Excess (deficiency) of revenues over
expenditures (38,862) - - 17,362 153
OTHER FINANCING SOURCES:

Transfers in 14,911 264,907 - - -
Total other financing sources 14,911 264,907 - - -
NET CHANGES IN FUND BALANCES (23,951) 264,907 - 17,362 153 FUND BALANCES (DEFICITS):

Beginning of year, as previously reported as of June 30, 2023 (128,380) (264,907) 158,512 165,428 10,988 Change with financial reporting entity
(governmental and enterprise funds classification) - - - - - Beginning of year, as restated (Note 14) (128,380) (264,907) 158,512 165,428 10,988 End of year $ (152,331) $ 158,512 - $ $ 182,790 $ 11,141 (Continued)
Special Revenue Funds
City of Anderson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2024
107
Vineyards Silvergate
South Ridge Lighting and Sanitary
Assessment Landscape Assessment
EDBG Redevelopment District District District
REVENUES:

Licenses and permits - $ - $ - $ - $ - $
Fines, forfeits, and penalties - - - - -
Use of money and property 4,126 - - - -
Intergovernmental revenue - - - - -
Other revenues - - 12,651 35,943 5,985
Total revenues - 4,126 12,651 35,943 5,985
EXPENDITURES:

Current:

Public safety - - - - -
Public works - - 10,174 27,804 12,425
Recreation and cultural - - - - -
Capital outlay - - - - -
Debt service:

Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures - - 10,174 27,804 12,425
Excess (deficiency) of revenues over
expenditures - 4,126 2,477 8,139 (6,440)
OTHER FINANCING SOURCES:

Transfers in - - 7,166 - -
Total other financing sources - 7,166 - - -
NET CHANGES IN FUND BALANCES 4,126 9,643 - 8,139 (6,440) FUND BALANCES (DEFICITS):

Beginning of year, as previously reported as of June 30, 2023 373,579 16,602 (10,079) (58,073) (9,141) Change with financial reporting entity
(governmental and enterprise funds classification) - - - - - Beginning of year, as restated (Note 14) 373,579 16,602 (10,079) (58,073) (9,141) End of year $ 16,602 377,705 $ (436) $ (49,934) $ (15,581) $ (Continued)
Special Revenue Funds
City of Anderson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
108
Curbs, Police Facility
Gutters & and
Sidewalk Corp Yard Drainage Parks Traffic
REVENUES:

Licenses and permits - $ 60,123 $ 27,079 $ 22,764 $ 84,005 $ Fines, forfeits, and penalties - - - - -
Use of money and property 170 16,637 14,566 - 57,295
Intergovernmental revenue - - - 177,952 -
Other revenues - - - - -
Total revenues 170 76,760 41,645 200,716 141,300
EXPENDITURES:

Current:

Public safety - 45,696 - - -
Public works - 7,125 25,913 - 10,762
Recreation and cultural - - - 27,241 -
Capital outlay - - - 259 -
Debt service:

Principal - - - 33,709 -
Interest and fiscal charges - - - 19,123 -
Total expenditures - 52,821 25,913 80,332 10,762
Excess (deficiency) of revenues over
expenditures 170 23,939 15,732 120,384 130,538
OTHER FINANCING SOURCES:

Transfers in - - - - -
Total other financing sources - - - - -
NET CHANGES IN FUND BALANCES 170 23,939 15,732 120,384 130,538 FUND BALANCES (DEFICITS):

Beginning of year, as previously reported as of June 30, 2023 12,229 590,431 952,278 (107,044) 2,200,760 Change with financial reporting entity
(governmental and enterprise funds classification) - - - - - Beginning of year, as restated (Note 14) 12,229 590,431 952,278 (107,044) 2,200,760 End of year $ 614,370 12,399 $ 968,010 $ 13,340 $ 2,331,298 $ City of Anderson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Capital Projects Funds
109
Total
Nonmajor
Sewer Water I-5/Deschutes Shastec Governmental
Capital Fund Capital Fund Offramp Project Area Funds
REVENUES:

Licenses and permits $ - 27,427 $ 221,398 $
Fines, forfeits, and penalties - - 85,838
Use of money and property - 3,429 98,338
Intergovernmental revenue - - 532,496
Other revenues - - 54,579
Total revenues - 30,856 992,649
EXPENDITURES:

Current:

Public safety - - 407,050
Public works - 6,997 203,690
Recreation and cultural - - 27,241
Capital outlay - - 259
Debt service:

Principal - - 33,709
Interest and fiscal charges - - 19,123
Total expenditures - 6,997 691,072
Excess (deficiency) of revenues over
expenditures - 23,859 301,577
OTHER FINANCING SOURCES:

Transfers in - - 286,984
Total other financing sources - - 286,984
NET CHANGES IN FUND BALANCES - 23,859 588,561
FUND BALANCES (DEFICITS):

Beginning of year, as previously reported as of June 30, 2023 736,489 136,474 239,334 541,206 5,556,686 Change with financial reporting entity
(governmental and enterprise funds classification) (736,489) (136,474) - (872,963) - Beginning of year, as restated (Note 14) - 239,334 - 541,206 4,683,723 End of year $ - - $ 263,193 $ 541,206 $ 5,272,284 $
(Concluded)
City of Anderson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Capital Projects Funds
Formerly
Capital Projects Funds
110
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental revenue 65,364 $ 65,364 $ 63,628 $ (1,736) $ Total revenues 65,364 65,364 63,628 (1,736)
EXPENDITURES:

Current:

Public works 80,911 102,490 102,490 -
Total expenditures 102,490 80,911 102,490 -
Excess (deficiency) of revenues over
expenditures (37,126) (15,547) (38,862) (1,736)
OTHER FINANCING SOURCES:

Transfers in 14,832 14,832 14,911 79
Total other financing sources 14,832 14,832 14,911 79
NET CHANGE IN FUND BALANCE $ (22,294) (715) $ (23,951) (1,657) $ FUND BALANCE (DEFICIT):

Beginning of year (128,380)
End of year $ (152,331)
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Street Lighting Special Revenue Fund
For the Year Ended June 30, 2024
111
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental revenue 100,000 $ 275,207 $ 290,916 $ 15,709 $ Other revenues - 500,000 - (500,000)
Total revenues 775,207 100,000 290,916 (484,291)
EXPENDITURES:

Current:

Public safety 171,887 171,887 290,916 (119,029)
Total expenditures 171,887 171,887 290,916 (119,029)
NET CHANGE IN FUND BALANCE $ 603,320 (71,887) $ - (603,320) $ FUND BALANCE:

Beginning of year 158,512
End of year $ 158,512
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual COPS and LLEBG Grants Special Revenue Fund
For the Year Ended June 30, 2024
112
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Use of money and property 1,101 $ 1,101 $ 4,126 $ 3,025 $ Total revenues 1,101 1,101 4,126 3,025
NET CHANGE IN FUND BALANCE $ 1,101 $ 1,101 4,126 $ 3,025 FUND BALANCE:

Beginning of year 373,579
End of year $ 377,705
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual EDBG Special Revenue Fund
For the Year Ended June 30, 2024
113
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Miscellaneous revenue 12,978 $ 12,978 $ 12,651 $ (327) $ Total revenues 12,978 12,978 12,651 (327)
EXPENDITURES:

Current:

Public works 8,434 8,434 10,174 (1,740)
Total expenditures 8,434 8,434 10,174 (1,740)
Excess (deficiency) of revenues over
expenditures 4,544 4,544 2,477 (2,067)
OTHER FINANCING SOURCES:

Transfers in - - 7,166 7,166
Total other financing sources - - 7,166 7,166
NET CHANGE IN FUND BALANCE $ 4,544 4,544 $ 9,643 5,099 $ FUND BALANCE (DEFICIT):

Beginning of year (10,079)
End of year $ (436)
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual South Ridge Assessment District Special Revenue Fund
For the Year Ended June 30, 2024
114
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Miscellaneous revenue 34,236 $ 34,236 $ 35,943 $ 1,707 $ Total revenues 34,236 34,236 35,943 1,707
EXPENDITURES:

Current:

Public works 24,909 24,909 27,804 (2,895)
Total expenditures 24,909 24,909 27,804 (2,895)
NET CHANGE IN FUND BALANCE $ 9,327 9,327 $ 8,139 (1,188) $ FUND BALANCE (DEFICIT):

Beginning of year (58,073)
End of year $ (49,934)
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Vineyard Lighting and Landscape Special Revenue Fund
For the Year Ended June 30, 2024
115
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Miscellaneous revenue 5,469 $ 5,469 $ 5,985 $ 516 $
Total revenues 5,469 5,469 5,985 516
EXPENDITURES:

Current:

Public works 10,775 10,775 12,425 (1,650)
Total expenditures 10,775 10,775 12,425 (1,650)
NET CHANGE IN FUND BALANCE $ (5,306) (5,306) $ (6,440) (1,134) $ FUND BALANCE (DEFICIT):

Beginning of year (9,141)
End of year $ (15,581)
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Silvergate Sanitary Assessment District Special Revenue Fund For the Year Ended June 30, 2024
116
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Licenses and permits 88,000 $ 88,000 $ 60,123 $ (27,877) $ Use of money and property 5,000 5,000 16,637 11,637
Total revenues 93,000 93,000 76,760 (16,240)
EXPENDITURES:

Current:

Public safety 150,001 150,001 45,696 104,305
Public works 6,225 6,225 7,125 (900)
Total expenditures 156,226 156,226 52,821 103,405
NET CHANGE IN FUND BALANCE $ (63,226) $ (63,226) 23,939 $ 87,165 FUND BALANCE:

Beginning of year 590,431
End of year $ 614,370
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Police Facility and Corp Yard Capital Projects Fund
For the Year Ended June 30, 2024
117
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Licenses and permits 124,500 $ 124,500 $ 27,079 $ (97,421) $ Use of money and property 4,000 4,000 14,566 10,566
Total revenues 128,500 128,500 41,645 (86,855)
EXPENDITURES:

Current:

Public works 55,060 55,060 25,913 29,147
Total expenditures 55,060 55,060 25,913 29,147
NET CHANGE IN FUND BALANCE $ 73,440 73,440 $ 15,732 (57,708) $ FUND BALANCE:

Beginning of year 952,278
End of year $ 968,010
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Drainage Capital Projects Fund
For the Year Ended June 30, 2024
118
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Licenses and permits 53,000 $ 53,000 $ 22,764 $ (30,236) $ Intergovernmental revenue 177,952 177,952 177,952 -
Total revenues 230,952 230,952 200,716 (30,236)
EXPENDITURES:

Current:

Recreational and cultural 6,458 6,458 27,241 (20,783)
Capital outlay 1,425,000 1,425,000 259 1,424,741
Debt service:

Principal 52,832 35,447 33,709 1,738
Interest and fiscal charges - - 19,123 (19,123)
Total expenditures 1,484,290 1,466,905 80,332 1,386,573 NET CHANGE IN FUND BALANCE $ (1,253,338) $ (1,235,953) 120,384 $ 1,356,337 FUND BALANCE (DEFICIT):

Beginning of year (107,044)
End of year $ 13,340
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Parks Capital Projects Fund
For the Year Ended June 30, 2024
119
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Licenses and permits 84,000 $ 84,000 $ 84,005 $ 5 $
Use of money and property 10,000 10,000 57,295 47,295
Total revenues 94,000 94,000 141,300 47,300
EXPENDITURES:

Current:

Public works 57,097 57,097 10,762 46,335
Total expenditures 57,097 57,097 10,762 46,335
NET CHANGE IN FUND BALANCE $ 36,903 36,903 $ 130,538 93,635 $ FUND BALANCE:

Beginning of year 2,200,760
End of year $ 2,331,298
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Traffic Capital Projects Fund
For the Year Ended June 30, 2024
120
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Licenses and permits 42,000 $ 42,000 $ 27,427 $ (14,573) $ Use of money and property - - 3,429 3,429
Total revenues 42,000 42,000 30,856 (11,144)
EXPENDITURES:

Current:

Public works 6,001 6,001 6,997 (996)
Total expenditures 6,001 6,001 6,997 (996)
NET CHANGE IN FUND BALANCE $ 35,999 35,999 $ 23,859 (12,140) $ FUND BALANCE:

Beginning of year 239,334
End of year $ 263,193
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual I-5/Deschutes Offramp Capital Projects Fund
For the Year Ended June 30, 2024
121
122
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
(This page is intentionally left blank)

CUSTODIAL FUNDS

FINANCIAL STATEMENTS
SINTF Custodial Fund - this fund accounts for funds held for Shasta Interagency Narcotics Task Force (SINTF) program.

County Seizure Custodial Fund - this fund accounts for the seized assets held on behalf of the County of Shasta.

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.
123
124
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
(This page is intentionally left blank)
County
SINTF Seizure
Fund Fund Total
ASSETS:

Cash and investments 125,372 $ 74,992 $ 200,364 $
Total additions 74,992 125,372 200,364
LIABILITIES:

Accounts payable - 77,679 77,679
Total liabilities - 77,679 77,679
NET POSITION (DEFICIT):

Restricted for:

Individual, organization and other government 125,372 (2,687) 122,685 Net position $ (2,687) 125,372 $ 122,685 $
City of Anderson
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2024
125
County
SINTF Seizure
Fund Fund Total
ADDITIONS:

Investment income (loss) 6,155 $ (6,093) $ 62 $
Total additions (6,093) 6,155 62
Changes in net position (6,093) 6,155 62
NET POSITION (DEFICIT):

Beginning of year 119,217 3,406 122,623
End of year $ (2,687) 125,372 $ 122,685 $
City of Anderson
For the Year Ended June 30, 2024
Custodial Funds
Combining Statement of Changes in Fiduciary Net Position 126

STATISTICAL SECTION
127
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
(This page is intentionally left blank)
128
Financial Trends:

Net Position by Component – Last Ten Fiscal Years 130
Changes in Net Positions – Last Ten Fiscal Years 132
Fund Balances of Governmental Funds – Last Ten Fiscal Years 136 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 138 General Fund Balance Compared to Annual Appropriations – Last Ten Fiscal Years 140 General Fund Revenues by Source – Last Ten Fiscal Years 141 General Fund Tax Revenues by Source – Last Ten Fiscal Years 142 Governmental Funds Expenditures by Function – Last Ten Fiscal Years 143 Special Assessment Billings and Collections – Last Ten Fiscal Years 145 Revenue Capacity:

Property Tax-Rates (Direct and Overlapping Governments) and City Levies and Collections – Last Ten Fiscal Years 146 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years 148 Principal Secured Property Taxpayers – Current Year and Nine Years Ago 149 Property Value and Construction – Last Ten Fiscal Years 151 Debt Capacity:

Ratio of Outstanding Debt by Type – Last Ten Fiscal Years 152 Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt per Capita – Last Ten Fiscal Years 154 Ratio of Annual Debt Service for Bonded Debt to Total General Expenditures – Last Ten Fiscal Years 155 Ratio of General Bonded Debt Outstanding – Last Ten Fiscal Years 156 Direct and Overlapping Governmental Activities Debt 157 Computation of Legal Debt Margin – Last Ten Fiscal Years 158 Pledged Revenue Coverage – Last Ten Fiscal Years 160
Demographic and Economic Information:

General Information 161
Principal Employers – Current Year and Nine Years Ago 162 Economic Information – Last Ten Fiscal Years 163
Operating Information:

Operating and Capital Indicators – Last Ten Fiscal Years 165 Authorized Full-Time Equivalent Employees by Department – Last Ten Fiscal Years 166 Water and Sewer Rates – Last Ten Fiscal Years 168

STATISTICAL SECTION
129
2015 2016 2017 2018 2019
Governmental activities:

Net investment in capital assets $ 20,845,429 $ 21,566,442 $ 20,157,484 $ 20,289,058 $ 20,734,804 Restricted 12,921,328 13,891,292 13,992,482 14,181,409 14,643,213 Unrestricted (deficit) (2,624,390) (3,028,302) (1,006,264) (2,188,418) (3,615,378) Total governmental activities net assets $ 32,429,432 31,142,367 $ 33,143,702 $ 32,282,049 $ 31,762,639 $ Business-type activities:

Net investment in capital assets 11,332,197 $ 10,876,569 $ 10,654,855 $ 10,247,557 $ 9,829,717 $ Restricted - - 13,891,292 - -
Unrestricted (deficit) 761,682 984,100 (12,557,186) 1,687,814 1,967,127 Total business-type activities net assets $ 11,860,669 12,093,879 $ 11,988,961 $ 11,935,371 $ 11,796,844 $ Primary Government:

Net investment in capital assets $ 32,177,626 $ 32,443,011 $ 30,812,339 $ 30,536,615 $ 30,561,521 Restricted 12,921,328 13,891,292 27,913,774 14,181,409 14,643,213 Unrestricted (deficit) (1,862,708) (2,044,202) (13,563,450) (500,604) (1,648,251) Total primary government net assets $ 44,290,101 43,236,246 $ 45,162,663 $ 44,217,420 $ 43,556,483 $ (Continued)
(Accrual Basis of Accounting)
City of Anderson
Net Position by Components
Last Ten Fiscal Years
130
2020 2021 2022 2023 2024
Governmental activities:

Net investment in capital assets $ 20,626,615 $ 21,185,706 $ 21,885,257 $ 23,355,757 $ 25,537,977 Restricted 15,101,783 15,790,158 16,142,307 16,512,022 17,404,171 Unrestricted (deficit) (4,164,289) (4,948,948) (2,104,858) (5,420,740) (10,688,451) Total governmental activities net assets $ 32,026,916 31,564,109 $ 35,922,706 $ 34,447,039 $ 32,253,697 $ Business-type activities:

Net investment in capital assets 9,984,064 $ 10,253,676 $ 10,642,392 $ 10,197,811 $ 7,792,024 $ Restricted - - - - 58
Unrestricted (deficit) 1,147,636 852,867 259,161 (489,962) 1,188,097 Total business-type activities net assets $ 11,106,543 11,131,700 $ 10,901,553 $ 9,707,849 $ 8,980,179 $ Primary Government:

Net investment in capital assets $ 30,610,679 $ 31,439,382 $ 32,527,649 $ 33,553,568 $ 33,330,001 Restricted 15,101,783 15,790,158 16,142,307 16,512,022 17,404,229 Unrestricted (deficit) (3,016,653) (4,096,081) (1,845,697) (5,910,702) (9,500,354) Total primary government net assets $ 43,133,459 42,695,809 $ 46,824,259 $ 44,154,888 $ 41,233,876 $ (Concluded)
(Accrual Basis of Accounting)
City of Anderson
Net Position by Components (Continued)
Last Ten Fiscal Years
131
2015 2016 2017 2018 2019
Expenses:

Governmental activities:

General government $ 1,271,913 1,125,987 $ 1,020,615 $ 1,294,519 $ 686,594 $ Public safety 4,833,530 4,006,100 4,402,297 5,098,330 5,624,597 Public works 822,903 1,814,825 1,430,663 1,294,411 1,670,015 Planning 186,616 142,533 159,883 243,745 224,552
Community development 1,315,390 1,191,956 1,553,231 1,502,302 1,963,182 Recreation and cultural 788,597 891,470 958,595 1,509,288 2,154,909 Interest and fiscal charges - - - - -
Total governmental activities expenses 10,269,661 8,122,159 9,525,284 10,942,595 12,323,849 Business-type activities:

Water 1,314,695 1,346,506 1,292,758 1,363,931 1,408,063 Sewer 1,698,260 1,511,181 1,520,512 1,728,242 1,821,554 Total business-type activities expenses 3,012,955 2,857,687 2,813,270 3,092,173 3,229,617 Total primary government expenses 13,282,616 10,979,846 12,338,554 14,034,768 15,553,466 Program Revenues:

Governmental activities:

Charges for services:

General government 158,226 157,257 131,821 310,007 554,504 Public safety 156,305 120,143 122,058 149,100 126,067
Public works 73,810 81,771 110,290 73,369 196,628
Planning 24,085 26,445 202,125 17,106 23,832
Community development 346,695 187,487 176,907 189,900 328,235 Recreation and cultural 183,871 148,028 200,433 216,850 192,152 Operating grants and contributions 623,533 858,463 269,659 234,529 232,497 Capital grants and contributions 321,851 965,697 10,096 20,266 4,850 Total governmental activities program revenues 2,741,630 1,692,037 1,223,389 1,211,127 1,658,765 Business-type activities:

Charges for services:

Water 1,194,625 1,215,720 1,319,081 1,406,386 1,398,403 Sewer 1,682,722 1,685,647 1,717,921 1,723,331 1,736,749 Operating grants and contributions - - - - -
Capital grants and contributions - - - - -
Total business-type activities program revenues 2,877,347 2,901,367 3,037,002 3,129,717 3,135,152 Total primary government program revenues 5,618,977 4,593,404 4,260,391 4,340,844 4,793,917 Net (expense)/revenue:

Governmental activities (6,430,122) (7,528,031) (8,301,895) (9,731,468) (10,665,084) Business-type activities 43,680 (135,608) 223,732 37,544 (94,465) Total primary government net expense (7,663,639) (6,386,442) (8,078,163) (9,693,924) (10,759,549) (Continued)
(Accrual Basis of Accounting)
City of Anderson
Changes in Position
Last Ten Fiscal Years
132
2020 2021 2022 2023 2024
Expenses:

Governmental activities:

General government $ 789,199 895,797 $ 483,958 $ 1,230,322 $ 1,948,368 $ Public safety 6,331,573 6,130,653 6,599,310 8,409,590 9,382,999 Public works 1,298,170 1,395,954 1,853,992 1,848,060 2,754,245 Planning 321,879 304,883 311,585 446,859 402,448
Community development 1,498,679 1,333,566 1,480,569 1,418,179 1,572,556 Recreation and cultural 1,725,343 2,564,278 1,668,672 1,699,234 1,856,139 Interest and fiscal charges - - - - 20,108
Total governmental activities expenses 11,705,408 12,884,566 12,398,086 15,052,244 17,936,863 Business-type activities:

Water 1,874,231 1,731,822 1,648,906 2,149,391 2,109,082 Sewer 2,125,372 2,242,422 2,326,461 2,323,665 2,736,287 Total business-type activities expenses 3,999,603 3,974,244 3,975,367 4,473,056 4,845,369 Total primary government expenses 16,884,169 15,679,652 16,373,453 19,525,300 22,782,232 Program Revenues:

Governmental activities:

Charges for services:

General government 108,417 61,767 68,993 6,755 7,394
Public safety 265,144 266,210 148,905 246,922 171,691
Public works 142,637 355,895 212,204 846,068 473,156
Planning 26,411 37,872 21,044 377,775 327,809
Community development 557,269 433,687 552,814 5,777 4,626 Recreation and cultural 122,308 161,518 210,919 64,589 89,610 Operating grants and contributions 267,338 205,563 225,122 3,658,039 2,961,327 Capital grants and contributions 31,466 24,682 2,723,406 - - Total governmental activities program revenues 1,716,360 1,351,824 4,163,407 5,205,925 4,035,613 Business-type activities:

Charges for services:

Water 1,565,871 1,533,396 1,622,131 1,518,420 1,867,974 Sewer 1,796,444 1,809,363 1,764,539 1,787,397 1,810,376 Operating grants and contributions - - - - 109,632
Capital grants and contributions - - - - 115,241
Total business-type activities program revenues 3,362,315 3,342,759 3,386,670 3,305,817 3,903,223 Total primary government program revenues 5,078,675 4,694,583 7,550,077 8,511,742 7,938,836 Net (expense)/revenue:

Governmental activities (10,353,584) (11,168,206) (8,234,679) (9,846,319) (13,901,250) Business-type activities (631,485) (637,288) (588,697) (1,167,239) (942,146) Total primary government net expense (11,805,494) (10,985,069) (8,823,376) (11,013,558) (14,843,396) (Continued)
(Accrual Basis of Accounting)
City of Anderson
Changes in Position (Continued)
Last Ten Fiscal Years
133
2015 2016 2017 2018 2019
General Revenues and Other Changes in Net Assets:

Governmental activities:

Taxes:

Sales taxes 3,313,801 3,980,194 3,922,831 4,120,223 4,863,981 Property taxes 1,680,210 1,770,933 1,863,102 1,983,148 2,128,355 Motel taxes 491,752 518,685 540,262 538,098 661,406
Special gas taxes 854,911 788,112 665,531 730,184 962,747 Franchise taxes 273,796 285,836 297,547 316,718 323,879 Other taxes 52,904 40,900 49,348 51,668 53,026
Motor vehicle license fees 4,437 4,143 - - -
Impact fees 1,059,516 331,863 939,240 741,721 825,982
Gain/Loss on sale of asset - - 16,000 25 -
Insurance proceeds - - - - -
Investment earnings 203,066 263,199 225,203 240,312 220,747 Miscellaneous items - - - - -
Transfers 105,379 103,578 106,667 117,718 102,551
Total governmental activities 8,815,096 7,312,119 8,625,731 8,839,815 10,142,674 Business-type activities:

Investment earnings 21 5,976 11,227 26,584 58,489
Gain/Loss on sale of asset - - - - -
Transfers (105,379) (103,578) (106,667) (117,718) (102,551) Total business-type activities (97,602) (105,358) (95,440) (91,134) (44,062) Total primary government 8,717,494 7,206,761 8,530,291 8,748,681 10,098,612 Change in Net Position:

Governmental activities 881,997 1,287,065 323,836 (891,653) (522,410) Business-type activities (61,678) (233,210) 128,292 (53,590) (138,527) Total primary government $ 1,053,855 820,319 $ 452,128 $ (945,243) $ (660,937) $ (Continued)
(Accrual Basis of Accounting)
City of Anderson
Changes in Position (Continued)
Last Ten Fiscal Years
134
2020 2021 2022 2023 2024
General Revenues and Other Changes in Net Assets:

Governmental activities:

Taxes:

Sales taxes 4,756,805 5,700,165 6,231,941 6,667,218 6,794,008 Property taxes 2,268,220 2,386,054 2,630,485 2,761,360 2,810,845 Motel taxes 469,789 647,746 775,875 665,909 535,915
Special gas taxes 1,049,857 1,140,165 1,200,065 - -
Franchise taxes 336,627 353,287 389,396 392,561 413,489 Other taxes 56,210 62,224 63,872 69,678 72,086
Motor vehicle license fees - - - - -
Impact fees 1,006,884 693,381 643,803 - -
Gain/Loss on sale of asset - - - - -
Insurance proceeds - - - - -
Investment earnings 421,697 231,272 89,379 63,581 43,722 Miscellaneous items - - - 288,716
Transfers 105,468 103,216 105,653 49,362 -
Total governmental activities 11,631,013 10,158,054 12,130,469 10,958,385 10,670,065 Business-type activities:

Investment earnings 61,493 15,567 6,149 22,897 31,322
Gain/Loss on sale of asset 699,780 10,316 - - -
Transfers (105,468) (103,216) (105,653) (49,362) -
Total business-type activities 612,131 (33,659) (99,504) (26,465) 31,322 Total primary government 12,243,144 10,124,395 12,030,965 10,931,920 10,701,387 Change in Net Position:

Governmental activities (195,530) 462,807 3,895,790 1,112,066 (3,231,185) Business-type activities (665,144) (25,157) (688,201) (1,193,704) (910,824) Total primary government $ 437,650 (860,674) $ 3,207,589 $ (81,638) $ (4,142,009) $ (Concluded)
(Accrual Basis of Accounting)
City of Anderson
Changes in Position (Continued)
Last Ten Fiscal Years
135
2015 2016 2017 2018 2019
General Fund:

Nonspendable $ 1,900 $ 4,309 $ 109,068 $ 141,119 $ 340,254 Assigned 90,001 83,108 204,136 160,108 180,978
Unassigned 2,402,284 1,199,416 3,221,552 2,796,985 3,419,503 Total general fund $ 2,496,594 1,284,424 $ 3,534,756 $ 3,098,212 $ 3,940,735 $ All Other Governmental Funds:

Nonspendable $ 9,711,377 $ 9,775,359 $ 9,686,821 $ 191,505 $ 156,522 Restricted 5,528,618 4,477,854 5,806,266 15,379,669 15,588,585 Committed - - - - 322,680
Unassigned (deficit) (2,290,097) (2,016,995) (2,171,729) (1,729,391) (2,417,756) Total all other governmental funds $ 13,286,982 11,899,134 $ 13,321,358 $ 13,841,783 $ 13,650,031 $ (Continued)
(Modified Accrual Basis of Accounting)
City of Anderson
Fund Balances of Governmental Funds
Last Ten Fiscal Years
136
2020 2021 2022 2023 2024
General Fund:

Nonspendable $ 324,612 $ 140,764 $ 81,212 $ 285,815 $ 118,225 Assigned 233,163 211,789 255,672 275,688 275,688
Unassigned 2,751,335 3,521,655 5,612,910 4,164,589 2,058,901 Total general fund $ 3,125,262 4,058,056 $ 5,949,794 $ 4,726,092 $ 2,452,814 $ All Other Governmental Funds:

Nonspendable $ 120,485 $ 120,485 $ 120,485 $ 120,485 $ - Restricted 16,122,019 16,839,020 17,375,540 16,391,537 16,839,881 Committed - 211,789 - - -
Unassigned (deficit) (2,785,932) (2,245,385) (5,612,910) (971,315) (295,648) Total all other governmental funds $ 14,714,120 13,668,361 $ 11,883,115 $ 15,540,707 $ 16,544,233 $ (Concluded)
(Modified Accrual Basis of Accounting)
City of Anderson
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
137
2015 2016 2017 2018 2019
Revenues:

Sales tax $ 3,313,527 $ 3,988,454 $ 3,922,831 $ 4,120,223 $ 4,863,981 Property tax 1,669,411 1,760,138 1,852,514 1,972,450 2,117,585 Motel tax 491,752 518,685 540,262 538,098 661,406
Franchise tax 273,796 285,836 297,547 316,718 323,879
Licenses and permits 560,296 1,384,687 870,843 1,143,308 1,522,891 Fines, forfeitures and penalties 89,166 90,737 50,589 50,905 60,643 Use of money and property 87,082 91,550 113,471 206,139 275,671 Intergovernmental revenue 1,813,303 2,365,158 962,649 991,158 1,211,117 Charges for current services 465,288 481,639 448,907 470,675 432,913 Other revenues 217,902 484,537 294,306 243,019 837,408
Total revenues 11,451,421 8,981,523 9,353,919 10,052,693 12,307,494 Expenditures:

Current:

General government 965,457 761,925 843,383 841,031 786,310 Public safety 3,735,194 3,990,220 4,101,522 4,624,618 5,072,072 Public works 715,908 739,067 685,557 442,817 474,655
Planning 186,381 128,632 157,129 213,048 171,055
Community development 445,934 658,100 726,289 781,417 1,645,972 Recreation and cultural 586,096 690,389 779,373 903,991 1,480,625 Capital outlay 631,715 1,180,820 278,970 1,302,281 1,279,305 Debt Service:

Principal 462,611 516,247 536,965 574,579 607,531
Interest and fiscal charges 316,263 289,581 278,860 242,640 220,879 Total expenditures 8,954,981 8,045,559 8,388,048 9,926,422 11,738,404 Excess (deficiency) of revenues
over (under) expenditures 2,496,440 935,964 965,871 126,271 569,090 Other financing sources (uses):

Insurance of subscription liabilities - - - - -
Operating transfers in 148,333 103,578 123,459 931,718 116,691 Operating transfers out (42,861) (16,792) - (814,000) (14,140) Leases (as lessee) - - - - -
Total other financing sources (uses) 103,578 105,472 106,667 117,718 102,551 Net change in fund balance $ 2,600,018 1,041,436 $ 1,072,538 $ 243,989 $ 671,641 $ Debt service as a percentage of
non capital expenditures 10.51% 10.37% 10.06% 9.48% 7.92% (Continued)
(Modified Accrual Basis of Accounting)
City of Anderson
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
138
2020 2021 2022 2023 2024
Revenues:

Sales tax $ 4,756,805 $ 5,700,165 $ 6,231,941 $ 6,667,218 $ 6,794,008 Property tax 2,257,302 2,375,358 2,619,583 2,761,360 2,810,845 Motel tax 469,789 647,746 775,875 665,909 535,915
Franchise tax 336,627 353,287 389,396 392,561 413,489
Licenses and permits 1,165,378 1,380,911 1,344,021 981,406 492,855 Fines, forfeitures and penalties 123,345 150,587 42,983 130,262 129,478 Use of money and property 303,718 163,228 110,754 933,027 379,381 Intergovernmental revenue 1,329,097 1,412,573 4,134,242 2,360,795 2,155,289 Charges for current services 359,681 495,178 572,314 482,247 550,492 Other revenues 372,019 546,314 423,022 707,838 587,775
Total revenues 11,473,761 13,225,347 16,644,131 16,082,623 14,849,527 Expenditures:

Current:

General government 995,621 1,121,006 1,149,565 1,095,068 1,893,830 Public safety 5,490,433 5,739,343 6,891,974 8,252,590 8,981,380 Public works 662,133 564,374 852,627 1,423,762 2,350,233 Planning 275,044 296,316 302,893 437,659 395,498
Community development 842,289 751,389 1,026,687 849,916 942,499 Recreation and cultural 928,622 1,107,679 1,438,555 1,503,574 1,650,909 Capital outlay 1,558,154 2,596,524 1,570,386 2,046,337 1,024,432 Debt Service:

Principal 680,826 637,184 345,633 156,206 76,756
Interest and fiscal charges 191,434 168,620 143,394 126,686 20,530 Total expenditures 11,624,556 12,982,435 13,721,714 15,891,798 17,336,067 Excess (deficiency) of revenues
over (under) expenditures 242,912 (150,795) 2,922,417 190,825 (2,486,540) Other financing sources (uses):

Insurance of subscription liabilities - - - - 79,890
Operating transfers in 119,820 2,117,516 120,053 117,954 317,480 Operating transfers out (14,352) (2,014,300) (14,400) (68,592) (317,480) Leases (as lessee) - 100,221 - - -
Total other financing sources (uses) 103,216 105,468 205,874 49,362 79,890 Net change in fund balance $ 346,128 (45,327) $ 3,128,291 $ 240,187 $ (2,406,650) $ Debt service as a percentage of
non capital expenditures 8.67% 7.76% 4.02% 2.04% 0.60%
(Concluded)
(Modified Accrual Basis of Accounting)
City of Anderson
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years
139
Unassigned Annual Balance as % of
Fiscal Year Fund Balance Appropriations Appropriations
2014-2015 $ 1,199,416 $ 6,078,065 19.7%
2015-2016 2,402,284 6,359,308 37.8%
2016-2017 3,221,552 6,760,668 47.7%
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%
2021-2022 5,612,910 11,149,926 50.3%
2022-2023 4,168,886 12,284,619 33.9%
2023-2024 2,058,901 13,120,143 15.7%
Source: City of Anderson Annual Comprehensive Financial Report City of Anderson
General Fund Balance Compared to Annual Appropriations
Last Ten Fiscal Years
140
Fines,
Licenses Intergovern- Charges for Forfeitures,
Fiscal Year Taxes and Permits mental Services and Penalties Other Total 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 8,001,944 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 2021-2022 9,904,551 520,603 2,631,683 572,314 42,025 203,061 13,874,237 2022-2023 10,374,218 436,785 171,496 446,293 31,580 443,397 11,903,769 2023-2024 10,554,257 271,457 124,128 550,492 43,640 221,676 11,765,650 Note: The schedule above includes only those revenues recorded in the General Fund.

Source: City of Anderson Financial Report
City of Anderson
General Fund Revenues by Source
Last Ten Fiscal Years
141
Transient
General Sales and Occupancy Property
Fiscal Year Property Tax Use Tax Tax Transfer Tax Franchise Tax Total 2014-2015 1,536,466 $ 3,313,527 $ 491,752 $ 21,604 $ 273,796 $ 5,637,145 $ 2015-2016 1,642,105 3,988,454 518,685 9,765 285,836 6,444,845 2016-2017 1,708,040 3,922,831 540,262 32,572 297,547 6,501,252 2017-2018 1,983,148 4,120,223 538,098 36,304 316,718 6,994,491 2018-2019 1,968,856 4,863,981 661,406 37,271 323,879 7,855,393 2019-2020 2,102,068 4,756,805 469,789 43,955 336,627 7,709,244 2020-2021 2,210,712 5,700,165 647,746 51,576 353,287 8,963,486 2021-2022 2,441,482 6,231,941 775,875 65,857 389,396 9,904,551 2022-2023 2,614,350 6,012,849 470,200 34,180 392,561 9,524,140 2023-2024 2,776,866 6,794,008 535,915 33,979 413,489 10,554,257 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
Last Ten Fiscal Years
142
Recreation
General Community Public Public Parks and Capital Debt
Fiscal Year Government Planning Development Safety Works Cultural Outlay Service Total 2014-2015 965,457$ $ 186,381 $ 445,934 $ 715,908 3,735,194 $ 586,096$ 631,715$ $ 778,874 $ 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 8,388,048 2017-2018 841,031 213,048 781,417 4,624,618 442,817 903,991 1,302,281 817,219 9,926,422 2018-2019 786,310 171,055 1,645,972 5,072,072 474,655 1,480,625 1,279,305 828,410 11,738,404 2019-2020 995,621 275,044 842,289 5,490,433 662,133 928,622 1,558,154 872,260 11,624,556 2020-2021 1,121,006 296,316 751,389 5,739,343 564,374 1,107,679 2,596,524 805,804 12,982,435 2021-2022 1,149,565 302,893 1,026,687 6,891,974 852,627 1,438,555 1,570,386 489,027 13,721,714 2022-2023 1,095,068 437,659 849,916 8,252,590 1,423,762 1,503,574 2,046,337 282,892 15,891,798 2023-2024 1,893,830 395,498 942,499 8,981,380 2,350,233 1,650,909 1,024,432 97,286 17,336,067 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
Governmental Funds Expenditures by Function
Last Ten Fiscal Years
143
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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144
Special Special
Assessment Assessment
Fiscal Year Billings Collected
2014-2015 $ 151,331 $ 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
2021-2022 162,049 163,438
2022-2023 168,042 167,136
2023-2024 166,383 164,210
Sources: City of Anderson Financials (Assessment Districts) City of Anderson
Special Assessment Billings and Collections
Last Ten Fiscal Years
145
City of Anderson Rates Overlapping Rates
Shasta
Anderson Tehama
Basic Total Union High Trinity
Countywide Direct School Community
Fiscal Year Levy* City* Tax Rate* District College
2014-2015 1.0000% 0.0000% 1.0000% 0.0000% 0.0000%
2015-2016 1.0000% 0.0000% 1.0000% 0.0000% 0.0000%
2016-2017 1.0000% 0.0000% 1.0000% 0.0089% 0.0057%
2017-2018 1.0000% 0.0000% 1.0000% 0.0198% 0.0082%
2018-2019 1.0000% 0.0000% 1.0000% 0.0191% 0.0037%
2019-2020 1.0000% 0.0000% 1.0000% 0.0157% 0.0033%
2020-2021 1.0000% 0.0000% 1.0000% 0.0000% 0.0000%
2021-2022 1.0000% 0.0000% 1.0000% 0.0000% 0.0000%
2022-2023 1.0000% 0.0000% 1.0000% 0.0000% 0.0000%
2023-2024 1.0000% 0.0000% 1.0000% 0.0000% 0.0000%
** 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
* 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 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.

City of Anderson
Property Tax-Rates (Direct and Overlapping Governments) and City Levies and Collections Last Ten Fiscal Years
146
City of Anderson
Levies and Collections
Total Percent of
Direct and of Current
Overlapping Total Tax Current Tax Taxes
Fiscal Year Rates Levy Collections** Collected**
2014-2015 1.0000% 574,983 $ 562,940 $ 97.91%
2015-2016 1.0000% 601,822 589,872 98.01%
2016-2017 1.0146% 622,695 611,615 98.22%
2017-2018 1.0280% 745,892 735,272 98.58%
2018-2019 1.0228% 829,873 742,504 89.47%
2019-2020 1.0190% 871,098 778,729 89.40%
2020-2021 1.0000% 940,210 838,257 89.16%
2021-2022 1.0000% 1,006,930 896,498 89.03%
2022-2023 1.0000% 1,088,314 968,101 88.95%
2023-2024 1.0000% 1,142,628 1,016,186 88.93%
** 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
* 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 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.

City of Anderson
Property Tax-Rates (Direct and Overlapping Governments) and City Levies and Collections (Continued) Last Ten Fiscal Years
147
Total
Secured Roll Unsecured Roll Gross Net
Assessed Assessed Assessed Less Assessed
Fiscal Year Value Value Value Exemptions Value
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 779,006,947 40,718,848 819,725,795 80,416,865 739,308,930 2018-2019 833,176,488 41,516,362 874,692,850 94,799,699 779,893,151 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 2021-2022 1,014,950,740 55,473,824 1,070,424,564 104,794,948 965,629,616 2022-2023 1,094,897,128 66,074,941 1,160,972,069 96,833,312 1,064,138,757 2023-2024 1,150,134,971 73,525,388 1,223,660,359 105,059,393 1,118,600,966 Source: Shasta County Assessor's Annual Report
Note:

These are Gross Taxable Values.

City of Anderson
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
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. 148
2024 2015
Percentage Percentage
2024 of Total 2015 of Total
Type of 2024 Assessed Assessed 2015 Assessed Assessed
Taxpayer Business Rank Valuation Valuation Rank Valuation Valuation Walmart Real Estate Trust Retail Store 1 $ 19,370,000 1.93% 1 18,500,000 $ 3.21% Paradise 3941 LLC Etal Retail Outlets 2 11,774,439 1.17% n/a 0.00% - Legerity Group, LLC. Apartments 3 10,402,246 1.04% 7 6,300,000 1.09% Anderson Property Corporation Medical/Dental/Labs 4 9,171,270 0.91% n/a 0.00% - Anderson Senior Apartments Apartments 5 8,568,603 0.85% 3 9,533,583 1.66% Anderson Pacific Associates Apartments 6 7,492,089 0.75% 4 9,182,507 1.60% Safeway Holdings, Inc Grocery 7 7,854,979 0.78% 6 6,466,506 1.12% Realty Income Properties (Prev. GE Hansen) Retail Sales 9 6,450,480 0.64% n/a 0.00% - Izabella Investment, LLC Commercial 10 6,228,596 0.62% 8 5,790,299 1.01% Anderson Regency II Associates Apartments 8 6,714,500 0.67% 5 6,966,665 1.21% MJ Properties Investment Property n/a 0.00% 9 3,927,000 - 0.68% HPD Anderson LP Apartments n/a 0.00% 2 14,442,106 - 2.51% 3300 Franklin Street, LLC Commercial n/a 0.00% 10 3,800,000 - 0.66% Top Ten Secured Valuation 94,027,202 9.36% 84,908,666 14.09% Other Secured 910,602,882 90.64% 490,677,017 85.25%
Total Secured - Net of Exemptions $ 1,004,630,084 100.00% $ 575,585,683 99.34% 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
Principal Secured Property Taxpayers
Current Year and Nine Years Ago
149
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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150
Commercial Construction
Number of Number of
Permits Value Permits Value
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
2021-2022 59 5,204,334 581 17,537,493
2022-2023 70 8,683,437 625 18,250,477
2023-2024 77 2,702,462 484 9,115,152
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.

Residential Construction
Fiscal Year
City of Anderson
Property Value and Construction
Last Ten Fiscal Years
151
Governmental Activities
Financing
Fiscal Year Loans Purchase
2014-2015 $ 3,401,658 $ 869,682 $ - $ -
2015-2016 2,943,935 944,581 - -
2016-2017 1,874,889 911,806 - -
2017-2018 1,959,111 857,837 - -
2018-2019 1,413,286 864,811 - -
2019-2020 794,871 791,656 - -
2020-2021 221,197 1,020,531 - -
2021-2022 - 884,893 765,156 84,717
2022-2023 - 1,074,550 631,987 42,745
2023-2024 - 901,463 922,642 53,891
Source: City of Anderson Financial Report
U.S. Census Bureau
State of California, Department of Finance, Demographic Research Unit (1) This information is not available for the City of Anderson Lease Liabilities Subscription Payable
City of Anderson
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
152
Business-Type Activities
Total Percentage Debt
Revenue Certificate of Primary of Personal Per
Fiscal Year Bonds Participation Loans Government Population Income (1) Capita 2014-2015 $ 1,320,000 $ 197,000 $ 2,531,782 $ 8,320,122 10,269 - 810 2015-2016 1,275,000 193,000 2,098,062 7,454,578 10,485 - 711 2016-2017 1,225,000 189,000 2,002,521 6,203,216 10,450 - 594 2017-2018 1,175,000 185,000 1,898,949 6,075,897 10,370 - 586 2018-2019 1,125,000 180,500 1,786,889 5,370,486 10,476 - 513 2019-2020 1,070,000 176,000 1,665,938 4,498,465 10,671 - 422 2020-2021 1,015,000 171,500 1,536,507 3,964,735 10,702 - 370 2021-2022 955,000 166,500 1,457,000 4,313,266 11,133 - 387 2022-2023 895,000 161,500 1,410,000 4,215,782 11,164 - 378 2023-2024 830,000 156,000 1,361,000 4,224,996 11,323 - 373 Source: City of Anderson Financial Report
U.S. Census Bureau
State of California, Department of Finance, Demographic Research Unit (1) This information is not available for the City of Anderson City of Anderson
Ratio of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
153
Percentage of
Debt Net Bonded Net
Gross Payable from Net Total Debt to Bonded
Estimated Bonded Enterprise Bonded Assessed Assessed Debt per Fiscal Year Population Debt Revenue Debt Valuation Value Capita 2014-2015 10,269 $ 7,979,122 $ 1,972,782 $ 6,006,340 $ 608,768,408 0.99% 584.90 $ 2015-2016 10,485 7,454,578 1,866,062 5,588,516 640,180,178 0.01 533.00 2016-2017 10,450 6,799,112 1,752,521 5,046,591 683,459,651 0.01 482.93 2017-2018 10,370 6,075,897 1,632,949 4,442,948 739,308,930 0.01 428.44 2018-2019 10,476 5,370,486 1,506,389 3,864,097 779,893,151 0.00 368.85 2019-2020 10,671 4,498,465 1,366,938 3,131,527 825,494,424 0.00 293.46 2020-2021 10,702 3,964,735 1,221,007 2,743,728 897,678,835 0.00 256.38 2021-2022 11,133 3,463,393 1,121,500 2,341,893 965,629,616 0.00 210.36 2022-2023 11,164 3,897,537 1,056,500 2,841,037 1,064,138,757 0.00 254.48 2023-2024 11,323 2,347,000 986,000 1,361,000 1,118,600,966 0.00 120.20 Source: City of Anderson Financial Report
City of Anderson
Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt per Capita Last Ten Fiscal Years
154
Ratio of Debt
Total Total Service to
Bonded Debt General General
Fiscal Year Debt Service Expenditures Expenditures
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 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%
2021-2022 3,296,893 489,027 13,721,714 3.56%
2022-2023 3,897,537 379,379 13,073,879 2.90%
2023-2024 2,347,000 202,019 13,850,963 1.46%
Source: City of Anderson Financial Report
City of Anderson
Ratio of Annual Debt Service for Bonded Debt to Total General Expenditures Last Ten Fiscal Years
155
Less: Amount
General Available in Percentage Net
Obligation Debt Service of Assessed Per City Assessed
Fiscal Year Debt Fund Total Value Capita Population Value 2014-2015 -$ $ - -$ - -$ 10,269 $ 608,768,408
2015-2016 - - - - - 10,485 640,180,178
2016-2017 - - - - - 10,450 683,459,651
2017-2018 - - - - - 10,370 739,308,930
2018-2019 - - - - - 10,476 779,893,151
2019-2020 - - - - - 10,671 825,494,424
2020-2021 - - - - - 10,702 897,678,835
2021-2022 - - - - - 11,133 965,629,616
2022-2023 - - - - - 11,164 1,064,138,757
2023-2024 - - - - - 11,323 1,118,600,966
Source: Shasta County Assessor's Annual Report
City of Anderson Finance Department
City of Anderson
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
156
Net General
Obligation Percentage
Bonded Debt Applicable City Share
Jurisdiction Outstanding to City of Debt
Overlapping Debt Repaid with Property Tax:

Anderson High School 10,595,073 $ 21.28% 2,254,632 $
Cottonwood School District 313,340 92.30% 289,213
Cascade 20,109,568 62.39% 12,546,359
Shasta College 127,205,000 4.10% 5,215,405
Shasta Joint Powers Financing Authority 16,430,000 4.09% 671,987 Total overlapping debt 174,652,981 20,977,596
City of Anderson direct debt:

Anderson Redevelopment Agency 2015 5,405,000 100.00% 5,405,000 Discount on 2015 Series Bond (127,423) 100.00% (127,423) Total direct debt 5,277,577 5,277,577
Total direct and overlapping debt 179,930,558 $ 26,255,173 $ Source: Shasta County Auditor/Controller's Office
City of Anderson Financial Report
City of Anderson
Direct and Overlapping Governmental Activities Debt
157
2024 2023 2022 2021 2020
Net Assessed Value $ 1,160,972,069 1,223,660,359 $ 965,629,616 $ $ 897,678,835 $ 825,494,424 Plus Exempt Property (105,059,393) (96,833,312) (104,794,948) (99,020,421) (97,350,106) Total Assessed Value $ 1,064,138,757 1,118,600,966 $ 860,834,668 $ $ 798,658,414 $ 728,144,318 Debt Limit
15% of Total Assessed Value $ 167,790,145 $ 159,620,814 $ 129,125,200 $ 119,798,762 $ 109,221,648 Less Outstanding General
Obligation Debt 671,987 745,198 837,428 927,408 1,014,729 Legal Debt Margin $ 158,875,616 167,118,158 $ 108,650,200 $ 97,123,762 $ 84,411,648 $ (Continued)
Source: Shasta County Auditor's Office and City of Anderson Financial Report Last Ten Fiscal Years
Computation of Legal Debt Margin
City of Anderson
158
2019 2018 2017 2016 2015
Net Assessed Value $ 779,893,151 $ 739,308,930 $ 683,459,651 $ 640,180,178 $ 608,768,408 Plus Exempt Property (94,799,699) (80,416,865) 76,031,062 79,221,746 77,543,292 Total Assessed Value $ 685,093,452 $ 658,892,065 $ 759,490,713 $ 719,401,924 $ 686,311,700 Debt Limit
15% of Total Assessed Value $ 102,764,018 $ 98,833,810 $ 113,923,607 $ 107,910,289 $ 102,946,755 Less Outstanding General
Obligation Debt 1,099,801 1,182,419 6,271,591 6,863,516 7,326,340 Legal Debt Margin $ 75,874,018 $ 69,923,810 $ 107,652,016 $ 101,046,773 $ 95,620,415 (Concluded)
Source: Shasta County Auditor's Office and City of Anderson Financial Report Last Ten Fiscal Years
City of Anderson
Computation of Legal Debt Margin (Continued)
159
Tax Allocation Bonds Special Assessment Bonds
Tax Debt Service Tax Debt Service
Fiscal Year Increment Principal Interest Coverage Increment Principal Interest Coverage 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 1.27 108,268 35,000 74,641 0.99 2016-2017 752,585 210,000 257,638 1.61 111,902 36,000 86,147 0.92 2017-2018 702,868 230,000 251,038 1.46 113,383 38,000 71,427 1.04 2018-2019 734,768 235,000 244,063 1.53 111,458 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 601,200 250,000 225,884 1.26 113,070 43,000 66,040 1.04 2021-2022 577,252 260,000 225,263 1.19 112,244 45,000 64,085 1.03 2022-2023 562,596 270,000 212,125 1.17 112,830 47,000 62,045 1.03 2023-2024 591,039 275,000 204,288 1.23 109,632 49,000 60,616 1.00 City of Anderson
Pledged Revenue Coverage
Last Ten Fiscal Years
160
Date of Incorporation January 16, 1956 Fire Protection Public Elementary Schools 4 Population 10,943 Number of stations 1 Classrooms 66
Number of Registered Voters 6,229 Number of firefighters 13 Teachers 71.00 Area in Acres 4,323 Number of volunteers 0 Students 1,079 Form of Government Council/Manager Number of seasonal 0 High Schools 6 Employees Number of reserves 0 Classrooms 117
Full-time 51 Police Protection Teachers 80
Part-time 7 Number of stations 1 Students 1,522
Miles of Streets 55.38 Number of police officers 24
Number of Street Lights 480 Number of records clerks 7
Reserve officer 1
Recreational Services Water and Sewer Facilities
Community Center 1 Water System Care Center (Nursing Home) 1 Meeting Hall - Scout Hall 1 Number of connections 3,610 Number of patient beds 143 Parks 3 Average daily consumption 1.77 MGD Number of staff members 210 Parks acreage (improved) 136 Length of water mains 48.55 Fairgrounds 1 Parks acreage (unimproved) 318 Wastewater System Number of full-time staff 5 Dog Park 1 Number of connections 5,027 Number of part-time staff 4 Skate Park 1 Length of sewer lines 41.8 Number of acres 65 Splash Pad 1
Disc Golf Course 1
Baseball Fields 5
Soccer Fields 1
Basketball Courts 2
Bocce Ball Courts 3
Pickleball Courts 4
Tennis Courts 1
Miscellaneous Information Public Safety Services Educational Facilities Other Community Facilities
City of Anderson
General Information as of June 30, 2024
161
2024 2015
Percentage of Percentage of
Total City Total City
Employer Employees Rank Employment Employees Rank Employment Walmart Supercenter 313 1 7.6% 313 1 7.3%
Oak River (Rehab Specialties) Inn 208 2 5.1% 206 2 4.8% Anderson Union High School District 205 4 5.0% 200 3 4.7% Cascade Union Elementary School District 210 3 5.1% 122 4 2.8% Harbert Roofing Inc 88 6 2.1% - - 0.0%
Safeway 114 5 2.8% 97 5 2.3%
City of Anderson 71 7 1.7% 56 7 1.3%
Stier's RV 57 8 0.0% - - 0.0%
Voorwood Company 42 - 0.0% - - 0.0%
Apex Technology - - 0.0% - - 0.0%
Pre-Employ.com - - 0.0% 85 6 2.0%
McDonalds (Rodco Redding LP) - 0.0% 45 8 1.0%
Red River Management, LLC (Sonic) - - 0.0% 40 9 0.9%
Taco Bell - - 0.0% 40 10 0.9%
Big Time Pest Control 50 9 0.0% - - 0.0%
Curtis Homes LLC 50 10 1.2% - - 0.0%
Total Employment, City of Anderson 4,100 4,300
Source: City Business License records and California Employment Development Department City of Anderson
Principal Employers
Current Year and Nine Years Ago
162
Per Capital
Unemployment Personal Personal
Year Population Rate (1) Income (2) Income (2)
2015 10,269 9.5% $ - $ -
2016 10,485 8.0% - -
2017 10,450 6.9% - -
2018 10,370 7.2% - -
2019 10,476 5.8% - -
2020 10,671 7.3% - 46,113
2021 10,702 4.2% - 51,514
2022 11,133 4.2% - 54,972
2023 11,164 4.2% - 54,120
2024 10,943 5.3% - 57,637
Notes: (1) The California Employment Development Department unemployment rates for the City of Anderson through March 2020. (2) This data is not available 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 2020 census. Data is only available through 2021.

Source: California Department of Finance, California Employment Development Department, 2020 US Census, US Department of Commerce, Bureau of Economic Analysis
City of Anderson
Economic Information
Last Ten Fiscal Years
163
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
(This page is intentionally left blank)
164
Year Area in Acres Street Miles Park Acreage Water Connections Sewer Connections Police Calls for Service 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
2022 4,323 55.4 136 3,615 4,843 14,101
2023 4,323 55.4 136 3,604 4,880 15,701
2024 4,323 55.4 136 3,610 5,027 16,876
Source: California Department of Finance and City of Anderson records City of Anderson
Operating and Capital Indicators
Last Ten Fiscal Years
165
June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Department FTE FTE FTE FTE FTE
City Attorney 0.50 0.50 - - -
Planning 1.00 3.00 2.00 4.00 2.50
City Manager, City Clerk, and Personnel 2.00 2.00 3.00 2.00 3.00 Finance 5.00 4.41 4.40 5.41 4.41
Parks and Recreation 2.00 2.00 1.00 1.00 1.00
Public Works 30.00 29.00 24.00 20.00 22.00
Police 30.50 33.82 27.00 27.82 28.23
Total City 74.73 71.00 61.40 60.23 61.14
Source: City of Anderson Personnel Department
City of Anderson
Authorized Full-time Equivalent Employees by Department Last Ten Fiscal Years
166
June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Department FTE FTE FTE FTE FTE
City Attorney - - - - -
Planning 5.00 4.50 2.50 0.50 2.50
City Manager, City Clerk, and Personnel 4.00 3.00 3.00 3.00 3.00 Finance 4.41 4.41 4.41 4.82 4.00
Parks and Recreation 2.00 1.00 1.00 1.14 1.14
Public Works 21.41 19.64 19.64 21.64 16.91
Police 30.05 29.78 27.00 23.55 25.14
Total City 62.33 66.87 57.55 54.65 52.69
Source: City of Anderson Personnel Department
City of Anderson
Authorized Full-time Equivalent Employees by Department (Continued) Last Ten Fiscal Years
167
Monthly Rate per Monthly Rate per
Base cu. ft. over the Base 100 cu. ft. of
Rate 1000 cu. ft base Rate water consumed

11.71 1.14 21.36 1.45

12.30 1.19 22.44 1.52

12.30 1.19 22.44 1.52

12.30 1.19 22.44 1.52

12.30 1.19 22.44 1.52

12.30 1.19 22.44 1.52

13.02 1.27 22.44 1.52

13.56 1.34 22.44 1.52

14.22 1.41 22.44 1.52

14.85 1.48 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
City of Anderson
Water and Sewer Rates
Last Ten Fiscal Years
2023-2024
2022-2023
2021-2022
Water Sewer
Fiscal Year
2020-2021
2019-2020
2018-2019
2014-2015
2015-2016
2016-2017
2017-2018
168
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
February 13, 2025
To the Honorable Mayor and Members of the City Council
of the City of Anderson
Anderson, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Anderson (the “City”) for the year ended June 30, 2024.

Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated August 1, 2024.

Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the basic financial statements. As described in Note 1 to the financial statements, the City implemented GASB Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62. No other new accounting policies were adopted and the application of existing policies was not changed during 2024. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:
 Management’s estimate of the investment fair market value for negotiable certificates of deposits is based on institutional bond quotes based on various market and industry inputs. We evaluated the key factors and assumptions used to develop the investment fair market value in determining that it is reasonable in relation to the financial statements taken as a whole.
 Management’s estimate of the depreciation and amortization on capital assets is based on the industry standard and past experience on actual useful life of the asset groups. We evaluated the key factors and assumptions used to develop the depreciation and amortization on capital assets in determining that it is reasonable in relation to the financial statements taken as a whole.  Management’s estimate of the net pension liabilities is based on the actuarial valuation on proportionate share of total pension liability and based on audited financial statements on fiduciary net position for CalPERS plans. We evaluated the key factors and assumptions used to develop the net pension liability in determining that it is reasonable in relation to the financial statements taken as a whole.

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