Blue Lake City Council
November 26, 2024

Unless Otherwise Noted, All Items on the Agenda are Subject to Action.

Public Input can be given to the Council by emailing [email protected] until 4:30 p.m. on Tuesday November 26, 2024.

PLEASE NOTE that live meeting logistics will be prioritized. The quality of the Zoom teleconference meeting cannot be guaranteed. Technical challenges experienced by either the participant or the City will not interrupt or halt the progress of the meeting.

Public input may be facilitated by Zoom at the following meeting link:
https://us02web.zoom.us/j/89151993544?pwd=WmOU1EtB80vadjVvha0Mbxi8oMsgql.1 Meeting ID: 891 5199 3544
Passcode: 502252

1. Call to Order

2. Pledge of Allegiance and Establish a Quorum of the Council3. Approval of Agenda

4. Public Comment – The Public is invited to present petitions, make announcements, or provide other information to the City Council that is relevant to the scope of authority of the City of Blue Lake that is not on the Agenda. The Council may provide up to 15 minutes for this public input session. To assure that each individual presentation is heard, the Council may uniformly impose time limitations of 3 minutes to each individual presentation. The public will be given the opportunity to address items that are on the agenda at the time the Council takes up each specific agenda item.

5. Humboldt County Association of Governments Unmet Transit Needs Public Hearing

6. Presentation and Adoption of City of Blue Lake Fiscal Year 2023 Audit-Presentation/Action

7. Battery Storage Project Information Presentation by Redwood Coast Energy AuthorityPresentation/Discussion

8. City of Blue Lake Housing Element Presentation-Discussion

9. Second Reading and Adoption of Ordinance Number 2024-544-Action

10. Consent Agenda:

City Council Agenda
Tuesday, November 26, 2024 ~ 6:30 p.m. ~Regular Council Meeting Skinner Store-111 Greenwood Road, Blue Lake California
111 Greenwood Road-P.O. Box 458
Blue Lake, CA 95525
707-668-5655(P) 707-668-5916(F) www.bluelake.ca.gov
City of Blue Lake
a. September 24, 2024 City Council Meeting Minutes
b. Salary Scale Adjustment Fiscal Year 2024/2025
c. October Warrants and Disbursements

10. Council Correspondence

11. Reports of Council and Staff
a. City Manager Report
i. Site Management at 200 Taylor Way

12. Future Agenda Items

13. Adjourn
A request for disability-related modification or accommodation, including auxiliary aid or services, may be made by a person with a disability who requires a modification or accommodation in order to participate in the public meeting, by contacting City Clerk, Anali Gonzalez, at 707-668-5655, at least 24 hours prior to the commencement of the meeting.

City Council Meeting Agenda Report
Item #: 5

Date: November 26, 2024

Item Subject: Humboldt County Association of Governments-Unmet Transit Needs Presentation
Submitted By: Mandy Mager, City Manager
General Information:

The Humboldt County Association of Governments (HCAOG) conducts yearly outreach to identify and quantify unmet transit needs in our community and the region. HCAOG staff will present the unmet transit needs process via Zoom, including providing information on how residents can participate in the process.

The City will hold a public hearing on December 10, 2024 to allow the public the opportunity to present their concerns and needs and a survey is available for those that wish to present their concerns online or via written survey.

Background Material Provided: HCAOG Report and Outreach Materials Fiscal Impact: N/A
Recommended Action: Presentation
Review Information:

City Manager Review: ☒ Legal Review: ☐ Planner Review: ☐ Engineer: ☐ Comments:

City of Blue Lake
PROJECT SUMMARY:

Provide the public with the opportunity to give input on unmet needs. Consider unmet needs and directstaff to forward the unmet needsto Humboldt County Association of Governments (HCAOG) worded as one of the three choices: (1) there are no unmet transit needs; (2) there are no unmet transit needs, which are reasonable to meet; (3) there are unmet transit needs, including those that are reasonable to meet.

BACKGROUND:

Please see the definitions of "Unmet Transit Needs" and "Reasonable to Meet" provided on the following pages from HCAOG.

State law requires the regional transportation agencies and their composite communities address unmet transit needs on a yearly basis. Locally this effort is led by HCAOG as the region’s regional transportation agency. Each jurisdictional area within the county is encouraged to conduct its own public hearing. The initial public hearing process concludes on December 31st, and is followed by HCAOG staff compiling the public input received and consulting with transit service providers. Using all of this information, a draft Unmet Transit Needs Report of Findings is prepared. HCAOG’s Social Services Technical Advisory Committee (SSTAC) will then consider all available information compiled pursuant to the Unmet Transit Needs public participation process and forward a recommendation to the HCAOG Board. In the spring the HCAOG Board will consider and adopt the Unmet Transit Needs Report of Findings.

This agenda item provides the public an opportunity to identify unmet needs and the City Council to forward such needs to the HCAOG for consideration. The decision of the public hearing must use specific terms during the decision to be able to receive the money from HCAOG. The three choices are:

1. There are no unmet transit needs.

2. There are no unmet transit needs, which are reasonable to meet.

3. There are unmet transit needs, including those that are reasonable to meet.

In the event of finding that there are no unmet transit needs or that there are no unmet transit needs which are reasonable to meet, entities may expend TDA resources for non-transit purposes if excess funds remain. Finding that there are unmet transit needs, including those that are reasonable to meet, delivers a mandate to the respective entity to set aside funds, given that they are available, to implement a program to meet those needs deemed "reasonable to meet."
RECOMMENDED ACTION:

1. Open a public hearing to allow residents to comment on transit needs in Humboldt.

2. Close the public hearing and direct staff to forward a summary of the meeting to the Humboldt County Association of Governments.

FINANCIAL IMPACT:

Unknown.

HUMBOLDT COUNTY ASSOCIATION OF GOVERNMENTS
Regional Transportation Planning Agency
Humboldt County Local Transportation Authority
Service Authority for Freeway Emergencies
611 I Street, Suite B
Eureka, CA 95501
(707) 444-8208
www.hcaog.net
Citizen Participation Process for Transit Needs Assessment Transportation Development Act
The Humboldt County Association of Governments (HCAOG) is responsible for allocating Transportation Development Act (TDA) funds within the region. The TDA provides two major sources of funding, Local Transportation Funds (LTF) derived from a ¼ cent of the general sales tax and State Transportation Assistance Funds (STAF) derived from a tax on diesel fuel. Together, these TDA funds provide a significant revenue source for public transit in Humboldt County. The “Unmet Transit Needs” process is carried out annually to identify and evaluate the adequacy of existing public transportation services. HCAOG is required to assess transit needs prior to allocating LTF money for non-transit purposes, while STA is programmed to the Humboldt Transit Authority and Arcata and Mad River Transit.

Each jurisdiction has their own LTF account. Eureka and Arcata use the entirety of their LTF allocation for transit purposes. The County of Humboldt, Cities of Fortuna, Rio Dell, Blue Lake, and Trinidad have funds remaining after paying their share for eligible transit uses. In these cases, the TDA allows LTF to be applied to local streets and roads budgets, including pedestrian and bicycle projects. In Ferndale, there are no eligible public transit services and the LTF allocation is applied to non-transit purposes.

Public Process to Make a Finding
HCAOG’s Social Services Transportation Advisory Council (SSTAC) leads the process.

Although only one hearing is required, public meetings are held to ensure residents in each jurisdiction are heard. The SSTAC considers all public testimony and input, determines if the suggestions meet the adopted definition of an unmet transit need and applies adopted criteria to determine if the need is “reasonable to meet”. Public comments are accepted throughout the year and close on December 31st.

The SSTAC will consider the draft Unmet Transit Needs report and forward one of the following findings to the HCAOG Board for consideration:
(a) there are no unmet transit needs; or
(b) there are no unmet transit needs which are “reasonable to meet”; or (c) there are unmet transit needs, including those that are “reasonable to meet” Potential Impacts to Local Transportation Funding
If HCAOG adopts finding (c), then the unmet transit needs shall be funded before any allocation is made for non-transit purposes (i.e. streets and roads) within the jurisdiction.

Funds for new or expanded transit services can be set-aside from sources other than TDA funds. For instance, in 2018 the HCAOG Board voted to set aside Low Carbon Transit Operations Program (LCTOP) funds for late-night weekday service on the Redwood Transit Service. The service was found based on ridership at that time to be an unmet transit need reasonable to meet, but could not be funded due to insufficient Local Transportation Funds available to all required entities. When COVID hit and ridership fell dramatically, these LCTOP funds were repurposed to support free fares.

Examples of Past Public Input and Findings
The FY 24-25 transit needs process resulted in a finding that Redwood Transit System (RTS) increased frequency to every 30 minutes during peak hours between McKinleyville Airport and Cal Poly Humboldt Library Circle is an unmet need that is reasonable to meet. HCAOG is working with HTA, the County and Cities to develop an operational and funding plan to meet this need. The unmet need must be funded prior to allocating any FY 24-25 Local Transportation Funds (LTF) to streets and roads.

Previous findings led to new transit services to Tish Non-Village (Bear River Rancheria) and Old Arcata Road. Both services were discontinued after two years because not enough people used them. In 2024, the SSTAC modified the “reasonable to meet” criteria to include an analysis of performance measures such as operating subsidy per passenger and riders per hour. These metrics provide other ways to consider the cost and projected performance of new transit service, with the intention to avoid starting new services that will not be viable. Other unmet needs including Sunday service on RTS and ETS, Saturday night service on RTS, and later evening service on ETS were not reasonable to meet based on projected farebox returns and very low estimated ridership that would result in a high operating subsidy.

Comments received through this annual process can provide valuable feedback to transit operators. Not all operational requests can be accommodated, but agencies make every effort to respond. In addition, public comments are beneficial as a record of community need and can help to secure competitive grant-funded opportunities such as first-last mile mobility solutions to expand access to transit.

Opportunities for Public Comment on Unmet Transit Needs • Navigate to the project page at https://www.hcaog.net/programs-projects/publictransportation or see the attached information about the online survey. • At one of the advertised public meetings;
• Written comments and/or feedback gathered from staff during direct outreach; • Comment submittals by email or telephone: [email protected] or 707-444-8208.

Take the online survey!
English -- bit.ly/UTNSurvey2025
Scan me!
Realice la encuesta en línea!
Español -- https://bit.ly/Espanol2025UTN
¡Escanéame!
Take the survey by December 31st
¡Responda la encuesta antes del 31 de diciembre!

U N M ET T R AN S I T N E ED S

D EF I N I T I ON & R E AS ON A BL E T O M EET C R I T ER I A Unmet transit needs are, at a minimum:
(1) Trips requested from residents who do not have access to public transportation, specialized transportation, or private transport services or resources for the purpose of traveling to medical care, shopping, social/recreational activities, education/training, and employment; or
(2) Proposed public transportation, specialized transportation, or private transport services identified in the following, but not limited to: a Transportation Development Plan, Regional Transportation Plan, Coordinated Public Transit–Human Services Transportation Plan. (3) Sufficient broad-based community support exists, meaning that persons who will likely use the service on a routine basis demonstrate support with at a minimum two requests for general public service and for disabled service.

Additionally, unmet transit needs do not include:
❖ Improvements funded or scheduled for implementation in the next fiscal year. Two potential new services that will be reevaluated this year are:
• Express bus service between McKinleyville and Eureka during peak hours • Late Night Weekday Service on the Regional Transit System ❖ Minor operational improvements or changes such as bus stops, schedules, and minor route changes. Minor operational improvements are changes to service which do not affect the operating cost of the transit service either by requiring additional staff and/or additional vehicle hours of service or miles of service. ❖ Trips for primary or secondary school transportation
❖ Sidewalk improvements or street and road needs
Reasonable to meet criteria:
(1) To be considered “reasonable to meet”, a service must be operationally feasible and financially sustainable, as defined below:
a) The service must have adequate roadways and must be safe to operate. b) Enough money should be available from identified sources of funding to pay for the marginal operating costs of the service continuously for three years. (2) The service must be projected to meet a minimum “marginal farebox-return-ratio” of 10 percent within two years. Performance measures including estimated subsidy per passenger trip and passengers per vehicle hour of service will also be considered. For new service, ridership and farebox-return-ratio thresholds will be considered. (3) Pursuant to the requirements of TDA Statutes (Public Utilities Code Section 99401.5c, a determination of needs that are “reasonable to meet” shall not be made by comparing unmet transit needs with the need for streets and roads, for the allocation of TDA funds. (4) Once a service is determined to be "reasonable to meet" and is implemented, it can be expected that the ridership in the first 1-2 years of the new service will be less than the projected optimal ridership. Ridership should be evaluated at 6-month intervals to determine if service is meeting performance standards adopted by the transit provider, and specifically, whether the service meets a minimum 10 percent marginal fareboxreturn-ratio. If the service is being adequately promoted and fails to be within 60 percent of the identified standards after six months, 90 percent with the first year, or 100 percent within two years, the service may be cancelled and deemed "no longer reasonable to meet." An exception to this rule is when a community or group is willing to participate in sharing the ongoing cost of the new service.

City Council Meeting Agenda Report
Item #: 6

Date: November 26, 2024

Item Subject: Presentation and Adoption of the Fiscal Year 2023 Financial Audit Submitted By: Mandy Mager, City Manager
General Information:

Brett Jones, auditor from JJACPA, will present the final draft audit for fiscal year 2023. Upon presentation, the Council may choose to accept the audit via motion.

Background Material Provided: Final Draft Audit
Fiscal Impact: N/A
Recommended Action: To accept the audit as presented.

Review Information:

City Manager Review: ☒ Legal Review: ☐ Planner Review: ☐ Engineer: ☐ Comments:

City of Blue Lake

CITY OF BLUE LAKE, CALIFORNIA

ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED
JUNE 30, 2023
Prepared by:

Amanda Mager
City Manager
Jackson & Eklund Accounting
Contract Accountant
This page intentionally left blank.

City of Blue Lake, California
Basic Financial Statements
For the year ended June 30, 2023
Table of Contents
i
Page
Table of Contents .................................................................................................................................. i List of Officials ................................................................................................................................... iii Independent Auditors’ Report ........................................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) ....................... 4 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ........................................................................................................ 17 Statement of Activities ............................................................................................................ 18 Fund Financial Statements:

Governmental Funds:

Balance Sheet ................................................................................................................................ 22 Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position ........................................................................................................ 23 Reconciliation of Fund Basis Balance Sheet to Government-wide Statement of Net Position – Governmental Activities ............................................................. 24 Statement of Revenues, Expenditures, and Changes
in Fund Balances – Governmental Funds ................................................................................ 25 Reconciliation of Fund Basis Statements to Government-wide Statement of Activities ............................................................................................................ 26 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ............................... 27 Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget to Actual – General Fund and
Major Special Revenue Funds ................................................................................................. 28

INTRODUCTORY SECTION

FINANCIAL SECTION
City of Blue Lake, California
Basic Financial Statements
For the year ended June 30, 2023
Table of Contents, Continued
ii
Page
Basic Financial Statements, Continued:

Fund Financial Statements, Continued:

Proprietary Funds:

Statement of Net Position – Enterprise Funds .............................................................................. 31 Statement of Revenues, Expenses, and Changes in Fund Net Position – Enterprise Funds ................................................................................................................ 32 Statement of Cash Flows – Enterprise Funds ............................................................................... 33 Notes to Basic Financial Statements .......................................................................................... 39 Other Supplemental Information:

Required Supplementary Information:

Schedule of Changes in the Net OPEB Liability and Related Ratios ............................................ 72 Schedule of Contributions ............................................................................................................. 73 Schedule of the City’s Proportionate Share of the Net Pension Liability ..................................... 74 Combining and Individual Fund Financial Statements and Schedules:

Nonmajor Governmental Funds:

Combining Balance Sheet ............................................................................................................. 78 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............................................................................................................... 80 Nonmajor Special Revenue Funds:

Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – Highway Users Tax Fund ................................................................... 82 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – TDA Street Fund ................................................................................ 83 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – TDA Purchased Transportation Fund ................................................. 84 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – AB-939 Solid Waste Reduction/Recycling Fund ............................... 85 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – Regional Surface Transportation Program Fund ................................ 86 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – Recreation Economic Analysis Fund ................................................. 87 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – American Rescue Plan – COVID Relief Fund ................................... 88 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – State Park Per Capita Program Fund .................................................. 89 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ....................................................................... 91 City of Blue Lake, California
Basic Financial Statements
For the year ended June 30, 2023
List of Officials
iii
 Adelene Jones, Mayor
 Angela Shull, Mayor Pro Tem
 Chris Edgar
 Elizabeth MacKay
 Elise Scafani
 Amanda Mager, City Manager
 Jackson & Eklund Accounting, Contract Accountant

CITY COUNCIL

CITY OFFICIALS
iv
This page intentionally left blank.
7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com
1 INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
of the City of Blue Lake
Blue Lake, 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, the aggregate remaining fund information, and the budgetary comparison information of the City of Blue Lake (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, the aggregate remaining fund information, and the budgetary comparison information of the City, as of June 30, 2023, 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. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements The City’s 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.

To the Honorable Mayor and City Council
of the City of Blue Lake
Blue Lake, California
2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS 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, 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 on pages 4–14, the Schedule of Changes in the Net OPEB Liability and Related Ratios on page 72, the City’s Schedules of Contributions on pages 73, and the Schedules of the City’s Proportionate Share of the Net Pension Liability on pages 74 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 auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

To the Honorable Mayor and City Council
of the City of Blue Lake
Blue Lake, 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 nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements 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. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 22, 2024 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 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.

]]TVcT? \ÇvA
November 22, 2024 JJACPA, Inc.

Dublin, CA
City of Blue Lake, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis
4 This section provides a narrative overview and analysis of the financial activities of the City of Blue Lake (City) for the fiscal year ended June 30, 2023. It should be read in conjunction with the basic financial statements.

FINANCIAL HIGHLIGHTS
From the government-wide financial statement perspective, the following outlines the financial highlights for the year:
 Overall, at June 30, 2023, the City’s net position (excess of assets and deferred outflows of resources over liabilities and deferred inflows of resources) was $8,737,238, an increase of $362,542 from the prior fiscal year. Of the total net position, $4,526,285 was invested in capital assets (net of related debt) and $2,497,148 had restrictions on its use leaving $1,713,805 as unrestricted.
 Overall, City-wide revenues increased by $614,814 or 27.9% compared to the prior fiscal year.  Overall, City-wide expenses decreased by $475,613 or 19.4% compared to the prior fiscal year.

From the fund financial statement perspective, the following outlines the financial highlights for the year:
 At June 30, 2023, the City’s governmental funds fund balance decreased by $24,317 or 1.6% in comparison to the prior fiscal year while the proprietary funds fund balance increased $173,530 or 5.2%.
 In comparison to the prior fiscal year, the revenues of the governmental funds increased by $314,823 or 23.8% while the proprietary funds increased $274,742 or 29.7%. The governmental funds increase is primarily related to and increase in tax revenues, charges for services, and intergovernmental revenues while the proprietary funds increase is primarily related to an increase in user charges, intergovernmental revenues, and interest earnings.  In comparison to the prior fiscal year, the expenditures of the governmental funds increased by $380,563 or 29.7% while the expenses of the proprietary funds decreased by $337,563 or 24.7%.

The governmental funds increase is primarily related to parks and recreation and capital project expenditures while the proprietary funds decrease is primarily related to a decrease in personnel costs.

OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The basic financial statements are comprised of the government-wide financial statements and the fund financial statements. These two sets of financial statements provide two different views of the City’s financial activities and financial position.

City of Blue Lake, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
5 The Government-wide Financial Statements
The government-wide financial statements provide a broad overview of the City’s activities as a whole and are comprised of the Statement of Net Position and the Statement of Activities. The Statement of Net Position provides information on all the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the residual amount reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The Statement of Activities provides information showing changes in City’s net position during the fiscal year. All changes in net position are reported when the underlying event giving rise to the change occurs, regardless of the timing of related cash flows (accrual basis of accounting). The focus is on both gross and net costs of City functions, which are supported by general revenues. This statement also distinguishes functions of the City as follows:
♦ Governmental activities – all of the City’s basic services are considered to be governmental activities, including general government, community development, public safety, animal control, public works, public improvements, planning and zoning, building inspections, public transportation, parks, and recreation. These services are primarily supported by taxes and intergovernmental revenues.
♦ Business-type activities – all of the City’s activities that are intended to cover all or a significant portion of their costs through user fees and charges are reported here. The business-type activities include the water and sewer utility activities of the City.

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, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All funds of the City can be divided into two categories: governmental funds and proprietary funds. For the fiscal year ended June 30, 2023, the City’s major funds are as follows:

Governmental Funds:
 General Fund
 Community Development Block Grant Fund
 Supplemental Law Enforcement Services Fund
Proprietary Funds:
 Water Utility Fund
 Sewer Utility Fund
City of Blue Lake, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
6 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 the governmental fund financial statements is narrower than that of the governmentwide 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 impact of the government’s near-term financial decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The governmental fund financial statements provide detailed information about each of the City’s most significant funds, called major funds. Data for the other governmental funds, called non-major funds, is combined and presented in a single column. Individual fund data for each non-major fund is provided in the supplemental schedules section of this report.

Proprietary Funds
The City maintains enterprise-type proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for water and sewer utility activities. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail.

Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements begin on page 37 of this report.

Other Information
In addition to the basic financial statements and accompanying notes, this report presents certain required supplementary which begins on page 71 of this report.

The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information beginning on page 75 of this report.

City of Blue Lake, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
7 GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $8,737,238 as of June 30, 2023. To follow is a summary of the statement of net position as of June 30, 2023 and 2022:

Govern- Business- Govern- Businessmental type mental type Activities Activities Total Activities Activities Total Current assets 3,269,888 $ 2,894,216 $ 6,164,104 $ 2,885,295 $ 2,959,247 $ 5,844,542 $ Noncurrent assets 3,443,448 1,323,483 4,766,931 3,317,679 1,373,064 4,690,743 Deferred outflows of resources 298,807 283,335 582,142 160,075 150,975 311,050 Total assets and deferred
outflows of resources 4,501,034 7,012,143 11,513,177 6,363,049 4,483,286 10,846,335 Current liabilities 658,591 159,119 817,710 166,391 231,817 398,208 Long-term liabilities 998,152 624,044 1,622,196 800,670 505,763 1,306,433 Deferred inflows of resources 98,362 237,671 336,033 327,962 439,036 766,998 Total liabilities and deferred
inflows of resources 1,020,834 1,755,105 2,775,939 1,295,023 1,176,616 2,471,639 Net position:

Net invested in
capital assets 1,298,318 3,227,967 4,526,285 3,098,238 1,337,248 4,435,486 Restricted 580,559 1,916,589 2,497,148 496,823 1,671,509 2,168,332 Unrestricted 1,448,512 265,293 1,713,805 1,472,965 297,913 1,770,878 Total net position 5,257,038 $ 3,480,200 $ 8,737,238 $ 5,068,026 $ 3,306,670 $ 8,374,696 $ 2023 2022
Summary of Net Position
In comparison to the prior fiscal year:
 Total net position increased by $362,542 or 4.3% as a result of ongoing operations. Governmental activities experienced an increase of $189,012 or 3.7% while business-type activities experienced an increase of $173,530 or 5.2% due to ongoing operations.  Total assets and deferred outflows increased $666,842 or 6.1% as a result of ongoing operations.

Governmental activities experienced an increase of $649,094 or 10.2% while business-type activities experienced an increase of $17,748 or 0.4%.
 Total liabilities and deferred inflows increased $304,300 or 12.3%. Governmental activities experienced an increase of $460,082 or 35.5% while business-type activities experienced a decrease of $155,782 or 13.2%.

City of Blue Lake, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
8 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Changes in Net Position
The change in net position for the fiscal years ended June 30, 2023, and 2022 follows:

Govern- Business- Govern- Businessmental type mental type Activities Activities Total Activities Activities Total Revenues:

Program revenues:

Charges for services 310,286 $ 943,609 $ 1,253,895 $ 202,440 $ 820,262 $ 1,022,702 $ Grants and contributions:

Operating 523,485 28,979 552,464 531,063 - 531,063
Capital 249,705 172,893 422,598 177,934 118,890 296,824 General revenues:

Property taxes
and assessments - 168,610 168,610 139,247 - 139,247
Franchise fees 42,498 - 42,498 38,810 - 38,810
Sales and use tax 61,454 - 61,454 32,408 - 32,408
Transient occupancy tax 284 - 284 249 - 249
Motor vehicle in-lieu 196,983 - 196,983 126,893 - 126,893 Intergovernmental revenues 30,642 - 30,642 20,097 - 20,097 Investment earnings 30,770 51,551 82,321 146 (21,920) (21,774) Other general revenues 817 3,015 3,832 6,175 8,073 14,248 Total revenues 1,615,534 1,200,047 2,815,581 1,275,462 925,305 2,200,767 Expenses:

Governmental activities:

General government 250,263 - 250,263 572,919 - 572,919
Planning 141,851 - 141,851 127,395 - 127,395
Building 31,343 - 31,343 26,356 - 26,356
Public safety 154,902 - 154,902 196,965 - 196,965
Animal control 8,602 - 8,602 8,484 - 8,484
Facilities 10,763 - 10,763 18,809 - 18,809
Street maintenance & lighting - 248,112 248,112 200,230 - 200,230 Parks and recreation 489,221 - 489,221 321,859 - 321,859 Housing & economic development - 23,021 23,021 48,992 - 48,992 Public transit 32,375 - 32,375 31,875 - 31,875
Recycling 25,189 - 25,189 10,688 - 10,688
Interest 10,880 - 10,880 11,075 -
Business-type activities:

Water - 546,735 546,735 - 719,864 719,864
Sewer - 479,782 479,782 - 644,216 644,216
Total expenses 1,426,522 1,026,517 2,453,039 1,575,647 1,364,080 2,928,652 Change in net position 189,012 173,530 362,542 (300,185) (438,775) (738,960) Net position:

Beginning of year 5,068,026 3,306,670 8,374,696 5,368,211 3,745,445 9,113,656 End of year 5,257,038 $ 3,480,200 $ 8,737,238 $ 5,068,026 $ 3,306,670 $ 8,374,696 $ 2023 2022
Changes in Net Position
City of Blue Lake, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
9 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Changes in Net Position, Continued
Revenues by source for the fiscal years ended June 30, 2023, and 2022, are as follows:

Governmental Activities
Charges for services
$310,286
19%
Operating grants &
contributions
$523,485
Capital grants & 32%
contributions
$249,705
16%
Property taxes, levied for
general purposes
$168,610
10%
Franchise fees
$42,498
3%
Sales and use tax
$61,454
4%
Transient occupancy tax
$284
0%
Motor vehicle in-lieu
$196,983
12%
Intergovernmental
revenues
$30,642
2%
Investment earnings
$30,770
2% Other general revenues
$817
0%

REVENUES BY SOURCE
FY2023
Charges for services
$202,440

15.9%
Operating grants &
contributions
$531,063

41.6%
Capital grants &
contributions
$177,934

14.0%
Property taxes, levied for
general purposes
$139,247

10.9%
Franchise fees
$38,810

3.0%
Sales and use tax
$32,408

2.5%
Motor vehicle in-lieu
$126,893

9.9%
Intergovernmental
revenues
$20,097

1.6%
Investment earnings
$146

0.0% Other general revenues
$6,175

0.5%

REVENUES BY SOURCE
FY2022
City of Blue Lake, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
10 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Changes in Net Position, Continued
Business-type Activities
Charges for services
$943,609

86.8%
Capital grants and
contributions
$172,893

14.4%
Operating grants and
contributions
$28,979

2.4%
Investment earnings
$51,551

4.3%
Other general revenue
$3,015

0.3%
Revenues by Source
FY 2023
Charges for services
$820,262

86.8%
Capital grants and
contributions
$118,890

12.3%
Investment earnings
$(21,920)
-2.3%
Other general revenue
$8,073

0.8%
Revenues by Source
FY 2022
City of Blue Lake, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
11 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Changes in Net Position, Continued
Revenues
The City’s revenues for governmental and business-type activities totaled $2,815,581, an increase of $614,814 or 27.9% in comparison to the prior fiscal year. Governmental activity revenues totaled $1,615,534, an increase of $340,072 or 26.7% while business-type activity revenues totaled $1,200,047, an increase of $274,742 or 29.7%. The City’s total revenues consisted of charges for services (44.5%), operating grants and contributions (19.6%), capital grants and contributions (15.0%), and general revenues (20.9%).

The following discusses variances in key revenues from the prior fiscal year:
 Charges for services - increased $231,193 or 22.6% as the result of operations;  Operating grants and contributions – increased $21,401 or 4.0%;  Capital grants and contributions – increased $125,774 or 42.4% primarily as a result of Parks & Recreation capital projects;
 General revenues – increased $236,446 or 67.5% primarily due to increases in tax revenues and investment earnings.

Expenses
The City’s expenses for governmental and business-type activities totaled $2,453,039, a decrease of $475,613 or 19.4% in comparison to the prior fiscal year.

Governmental activity expenses totaled $1,426,522 a decrease of $149,125 or 41.1% primarily as a result of decreased spending on general government and public safety which was offset by increased spending on parks and recreation. Governmental activity expenses consisted of general government (17.5%) public safety (10.9%), parks and recreation (34.3%), facilities and streets (18.1%), and all other governmental activities (19.2%).

Business-type activity expenses totaled $1,026,517, a decrease of $337,563 or 24.7% as a result of water utility and sewer utility operations. Business-type activity expenses consisted of water utility (53.3%) and sewer utility (46.7%).

City of Blue Lake, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
12 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The fund financial statements provide a narrower focus on the individual components of the City government and report the City’s operations in more detail than the government-wide financial statements.

Governmental Funds
The City’s governmental funds provide information on near-term inflows, outflows, and balances of resources that are available for spending. At June 30, 2023, the City’s governmental funds reported combined fund balances of $1,503,214, a decrease of $24,317 or 1.6% in comparison to the prior fiscal year (general fund $5,747, CDBG fund $-7,983, SLESF fund $35,425, non-major funds $-57,506).

The General Fund is the chief operating fund of the City. At June 30, 2023, the total fund balance for the General Fund was $1,130,040, an increase of $5,747 or 0.5% in comparison to the prior fiscal year.

Revenues and transfers-in increased $377,227 or 50.8% a majority of which can be attributed to increases in of tax revenues, charges for services, and intergovernmental revenues. Expenditures and transfers-out increased $284,900 or 34.4% in comparison to the prior fiscal year a majority of which can be attributed to increased spending on general government, street lighting and maintenance, parks and recreation, and capital outlay.

The CDBG Fund is a special revenue fund used to account for the activity related to the City’s Community Development Block Grant Program. At June 30, 2023, the total fund balance for the CDBG Fund was $392,223 a decrease of $7,983 or 2.0% in comparison to the prior fiscal year. Revenues and transfers-in decreased $26,740 or 46.6% while expenditures and transfers-out increased $7,866 or 94.7% in comparison to the prior fiscal year.

The SLESF Fund is a special revenue fund used to account for State funds received for the purpose of providing law enforcement services. At June 30, 2023, the total fund balance for the SLESF Fund was $0, an increase of 35,425 in comparison to the prior fiscal year. Revenues increased $9,867 or 6.4% while expenditures decreased $61,006 or 32.4% in comparison to the prior fiscal year.

Proprietary Funds
The City’s proprietary fund statements provide the same type of information found in business-type activities in the government-wide financial statements, but in more detail. At June 30, 2023, the total net position for the Water Utility Fund was $1,199,550, a decrease of $16,557 or 1.4% in comparison to the prior fiscal year. Revenues increased $69,845 or 15.2% while expenses decreased $173,129 or 24.1% in comparison to the prior fiscal year.

City of Blue Lake, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
13 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS, Continued Proprietary Funds, Continued
At June 30, 2023, the total net position for the Sewer Utility Fund was $2,280,650, an increase of $190,087 or 9.1% in comparison to the prior fiscal year. Revenues increased $204,897 or 44.1% while expenses decreased $164,434 or 25.5% in comparison to the prior fiscal year.

General Fund Budgetary Highlights
Actual revenues/transfers-in were under the final budget by $185,649 or 15.6%. This was primarily due to lower than expected intergovernmental revenues related to City projects. Actual expenditures/transfers-out were under the final budget by $200,113 or 15.2%. This was primarily due to lower than projected spending on general government, planning, and debt service and was partially offset by higher than projected spending on street lighting and maintenance, parks and recreation, and capital outlay.

CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At June 30, 2023, the City’s investment in capital assets (net of depreciation) for its governmental activities totaled $3,443,448 and for its business-type activities totaled $1,323,483. This investment in capital assets includes land, construction in progress costs, buildings and improvements, infrastructure, furniture and equipment, and vehicles.
2023 2022 2023 2022 2023 2022
Land 480,284 $ 480,284 $ 74,877 $ 74,877 $ 555,161 $ 555,161 $ Construction in progress 236,265 40,101 34,377 46,016 270,642 86,117 Land improvements 1,229,282 1,218,139 - 1,229,282 1,218,139 Infrastructure 1,203,059 1,271,070 - - 1,203,059 1,271,070 Buildings and improvements 262,987 282,311 - 200 262,987 282,511 Machinery and equipment 27,861 21,004 150,043 98,464 177,904 119,468 Software 3,710 4,770 - - 3,710 4,770
Water system - - 322,059 341,830 322,059 341,830
Sewer system - - 742,127 811,677 742,127 811,677
Total 3,443,448 $ 3,317,679 $ 1,323,483 $ 1,373,064 $ 4,766,931 $ 4,690,743 $ Governmental Activities Totals Business-type Activities Additional information about the City’s capital assets can be found in Notes 1 and 5 to the basic financial statements.

City of Blue Lake, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
14 Long-Term Debt
At June 30, 2023, the City had total debt obligations of $240,646. Additional information about the City’s long-term debt can be found in Note 7 to the basic financial statements. 2023 2022 2023 2022 2023 2022
Notes payable - Governmental Activities 215,481 $ 219,441 $ - $ - $ 215,481 $ 219,441 $ Notes payable - Water Funds - - 25,165 35,816 25,165 35,816 Total 215,481 $ 219,441 $ 25,165 $ 35,816 $ 240,646 $ 255,257 $ Governmental Activities Business-type Activities Totals

ECONOMIC OUTLOOK
The budget for fiscal year 2023-24 was adopted and provides for a short- and long-term economic outlook that is considered stable. This is a result of a continuing and reliable tax revenue stream, the implementation of a water and sewer rate increase, and the City’s efforts to contain and control expenditures.

Just as important as the maintaining and growing the City’s revenue base, moderating expenditure growth is also imperative and will continue be challenging to the City. Personnel cost is the largest expense category and addressing personnel expenditure growth will remain a priority. However, these costs are projected to continue to rise at a greater rate than most other costs.

REQUESTS FOR INFORMATION
This annual financial report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. Should the reader have any questions about this report or wish to request additional financial information, please contact the City of Blue Lake Finance Department, 111 Greenwood Avenue, Blue Lake, CA 95525-0458, or visit the City’s web page at www.bluelake.ca.gov.

BASIC FINANCIAL STATEMENTS
15 This page intentionally left blank.
16 City of Blue Lake, California
Statement of Net Position
June 30, 2023
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 1,390,128 $ 2,670,243 $ 4,060,371 $ Receivables:

Accounts receivable, net 10,979 124,961 135,940
Interest receivable 229,920 19,953 249,873
Intergovernmental receivables 790,041 55,251 845,292
Loans receivable 816,354 - 816,354
Inventories - 23,808 23,808
Prepaid expenses 32,466 - 32,466
Total current assets 2,894,216 3,269,888 6,164,104
Noncurrent assets:

Capital assets:

Nondepreciable 716,549 109,254 825,803
Depreciable 2,726,899 1,214,229 3,941,128
Total noncurrent assets 1,323,483 3,443,448 4,766,931
Total assets 4,217,699 6,713,336 10,931,035

DEFERRED OUTFLOWS OF RESOURCES
Other postemployment benefits (OPEB) 8,573 15,487 24,060 Pension plan 290,234 267,848 558,082
Total deferred outflows of resources 283,335 298,807 582,142 Total assets and deferred outflows of resources $ 4,501,034 7,012,143 $ 11,513,177 $

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 95,419 $ 39,107 $ 134,526 $ Accrued payroll 13,543 4,952 18,495
Compensated absenses 18,142 29,539 47,681
Customer deposits 11,700 75,473 87,173
Notes payable due within one year 3,808 10,048 13,856
Unearned revenue 515,979 - 515,979
Total current liabilities 159,119 658,591 817,710
Noncurrent liabilities:

Notes payable due after one year 211,673 15,117 226,790 Net pension liability 524,636 709,364 1,234,000
Net OPEB liability 77,115 84,291 161,406
Total noncurrent liabilities 624,044 998,152 1,622,196
Total liabilities 783,163 1,656,743 2,439,906

DEFERRED INFLOWS OF RESOURCES
Pension plan 60,005 177,183 237,188
Other postemployment benefit (OPEB) 38,357 60,488 98,845 Total deferred inflows of resources 237,671 98,362 336,033

NET POSITION
Net investment in capital assets 3,227,967 1,298,318 4,526,285 Restricted 580,559 1,916,589 2,497,148
Unrestricted 1,448,512 265,293 1,713,805
Total net position 3,480,200 5,257,038 8,737,238
Total liabilities, deferred inflows of resources and
net position $ 4,501,034 7,012,143 $ 11,513,177 $
The accompanying notes are an integral part of these basic financial statements. 17 City of Blue Lake, California
Statement of Activities
For the year ended June 30, 2023
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary government:

Governmental activities:

General government $ 26,213 250,263 $ 135,285 $ - $
Planning 12,873 - 141,851 -
Building 35,977 - 31,343 -
Public safety 394 197,566 - 154,902
Animal control 2,520 - 8,602 -
Facilities 41,512 - 10,763 -
Street maintenance and lighting - 248,112 123,823 -
Parks and recreation 183,353 8,130 249,705 489,221
Housing and economic development - 23,021 364 -
Public transit - 32,375 32,375 -
Recycling 7,444 25,942 - 25,189
Interest - 10,880 - -
Total governmental activities 1,426,522 310,286 523,485 249,705 Business-type activities:

Water 507,700 546,735 - -
Sewer 435,909 479,782 28,979 172,893
Total business-type activities 1,026,517 943,609 28,979 172,893 Total primary government $ 1,253,895 2,453,039 $ 552,464 $ 422,598 $ General revenues:

Taxes:

Property taxes, levied for general purposes
Franchise fees
Sales and use tax
Transient occupancy tax
Motor vehicle in-lieu
Intergovernmental revenues
Investment earnings
Other general revenues
Total general revenues
Change in net position
Net position:

Beginning of year
End of year
Program Revenues
The accompanying notes are an integral part of these basic financial statements. 18 Governmental Business-Type
Activities Activities Totals
$ - (88,765) $ (88,765) $
- (128,978) (128,978)
- 4,634 4,634
- 43,058 43,058
- (6,082) (6,082)
- 30,749 30,749
- (124,289) (124,289)
- (48,033) (48,033)
- (22,657) (22,657)
- - -
- 8,197 8,197
- (10,880) (10,880)
- (343,046) (343,046)
(39,035) - (39,035)
157,999 - 157,999
118,964 - 118,964
$ 118,964 (343,046) $ (224,082) $
$ - 168,610 $ 168,610 $
42,498 - 42,498
61,454 - 61,454
- 284 284
196,983 - 196,983
30,642 - 30,642
30,770 51,551 82,321
817 3,015 3,832
54,566 532,058 586,624
173,530 189,012 362,542
3,306,670 5,068,026 8,374,696
$ 3,480,200 5,257,038 $ 8,737,238 $
Net (Expense) Revenue and
Changes in Net Position
19 This page intentionally left blank.
20 Fund
Governmental Funds:

General Fund
CDBG Fund
SLESF Fund
This fund accounts for the operations of the City’s Community Development Block Grant Program.

FUND FINANCIAL STATEMENTS
Description

MAJOR FUNDS
The Fund Financial Statements present only individual major funds, while non-major funds are combined in a single column. Major funds are defined as having significant activities or balances in the current year.

This fund is the general operating fund of the City which accounts for all financial resources except those legally or administratively required to be accounted for in other funds.

This fund accounts for the City’s receipt and use of State revenues derived from the Citizens for Public Safety (COPS) Program for which the use is restricted to law enforcement/public safety activities.
21 City of Blue Lake, California
Balance Sheet
Governmental Funds
June 30, 2023
Nonmajor
General Governmental
Fund CDBG Fund SLESF Fund Funds Totals
ASSETS
Cash and investments $ 389,195 826,104 $ - $ 174,829 $ 1,390,128 $ Receivables:

Accounts receivable, net 10,979 - - - 10,979
Interest receivable 221,840 7,342 - 738 229,920
Intergovernmental receivables 530,227 - - 259,814 790,041 Loans receivable 49,118 767,236 - - 816,354
Due from other funds 238,910 - - - 238,910
Prepaid expenses 32,466 - - - 32,466
Total assets $ 1,378,271 1,695,146 $ - $ 435,381 $ 3,508,798 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 91,767 $ - $ - $ 3,652 $ 95,419 $ Accrued payroll 13,213 - - 330 13,543
Compensated absences 13,991 - - 4,151 18,142
Deposits payable 11,700 - - - 11,700
Due to other funds - - - 238,910 238,910
Unearned revenue 434,435 986,048 - 207,387 1,627,870
Total liabilities 986,048 565,106 - 454,430 2,005,584
Fund balances:

Nonspendable 32,466 - - - 32,466
Restricted - 392,223 - 188,336 580,559
Committed - 464,301 - - 464,301
Unassigned (deficit) 633,273 - - (207,385) 425,888
Total fund balances 392,223 1,130,040 - (19,049) 1,503,214 Total liabilities and fund balances $ 1,378,271 1,695,146 $ - $ 435,381 $ 3,508,798 $ Special Revenue Funds
Major Funds
The accompanying notes are an integral part of these basic financial statements. 22 City of Blue Lake, California
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2023
Total fund balances - governmental funds $ 1,503,214
1,111,891
3,443,448
Note payable (215,481)
Net pension liability (709,364)
Net OPEB liability (77,115) (1,001,960)
Deferred outflows - pension 290,234
Deferred outflows - OPEB 8,573
Deferred inflows - pension (60,005)
Deferred inflows - OPEB (38,357) 200,445
Net position of governmental activities $ 5,257,038
The accompanying notes are an integral part of these basic financial statements.

Amounts reported for governmental activities in the Statement of Net Position are different because:

Long-term receivables are not available to pay current period expenditures and, therefore, are unearned in the governmental funds.

Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds balance sheet.

Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds balance sheet.

Pension and OPEB obligations result in deferred outflows and inflows of resources associated with the actuarial value of contributions, assets, and liabilities.
23 City of Blue Lake, California
Reconciliation of Fund Basis Balance Sheet to Government-wide Statement of Net Position Governmental Activities
June 30, 2023
Governmental
Funds Changes Statement of
Balance Sheet Reclassifications in GAAP Net Position
ASSETS
Current assets:

Cash and investments 1,390,128 $ - $ - $ 1,390,128 $
Receivables:

Accounts receivable, net 10,979 - - 10,979
Interest receivable 229,920 - - 229,920
Intergovernmental receivables 790,041 - - 790,041
Loans receivable 816,354 - - 816,354
Due from other funds 238,910 (238,910) - -
Prepaid expenses 32,466 - - 32,466
Total current assets (238,910) 3,508,798 - 3,269,888
Noncurrent assets:

Capital assets, net - - 3,443,448 3,443,448
Total noncurrent assets - - 3,443,448 3,443,448
Total assets (238,910) 3,508,798 3,443,448 6,713,336

DEFERRED OUTFLOWS OF RESOURCES
OPEB - - 8,573 8,573
Pension plan - - 290,234 290,234
Total assets and deferred outflows of resources $ (238,910) 3,508,798 $ 3,742,255 $ 7,012,143 $

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 95,419 $ - $ - $ 95,419 $ Accrued payroll 13,543 - - 13,543
Compensated absences 18,142 - - 18,142
Deposits payable 11,700 - - 11,700
Due to other funds 238,910 (238,910) - -
Unearned revenue 1,627,870 (1,111,891) - 515,979
Notes payable due within one year - - 3,808 3,808
Total current liabilities (1,350,801) 2,005,584 3,808 658,591 Noncurrent liabilities:

Note payable - - 211,673 211,673
Net OPEB obligation - - 77,115 77,115
Net pension liability - - 709,364 709,364
Total noncurrent liabilities - - 998,152 998,152
Total liabilities (1,350,801) 2,005,584 1,001,960 1,656,743

DEFERRED INFLOWS OF RESOURCES
OPEB - - 38,357 38,357
Pension plan - - 60,005 60,005
Total deferred outflows of resources - - 98,362 98,362

FUND BALANCES/NET POSITION
Fund balances:

Nonspendable reported in:

General fund 32,466 (32,466) - -
Restricted reported in:

Special revenue funds 580,559 (580,559) - -
Committed reported in:

General fund 464,301 (464,301) - -
Unassigned (deficit), reported in:

General fund 633,273 (633,273) - -
Special revenue funds (207,385) 207,385
Net position:

Net investment in capital assets - - 3,227,967 3,227,967 Restricted - - 580,559 580,559
Unrestricted - 2,615,105 (1,166,593) 1,448,512
Total fund balances/ net position 1,111,891 1,503,214 2,641,933 5,257,038 Total liabilities and net position $ (238,910) 3,508,798 $ 3,742,255 $ 7,012,143 $ The accompanying notes are an integral part of these basic financial statements. 24 City of Blue Lake, California
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2023
Nonmajor
General Governmental
Fund CDBG Fund SLESF Fund Funds Totals
REVENUES:

Property taxes and assessments $ - 365,632 $ - $ - $ 365,632 $ Sales and use tax 61,454 - - - 61,454
Transient occupancy tax - 284 - - 284
Licenses and permits 37,160 - - - 37,160
Charges for services 209,716 - - - 209,716
Franchise fees 42,498 - - - 42,498
Grants and donations 32,277 - - - 32,277
Intergovernmental revenues 185,801 - 162,880 439,289 787,970 Investment earnings 21,576 9,565 13 1,822 32,976
Use of money and property 47,119 21,044 - - 68,163
Fines and penalties 787 - - - 787
Other revenues 753 - - - 753
Total revenues 30,609 1,005,057 162,893 441,111 1,639,670 EXPENDITURES:

Current:

General government 252,957 - - 86,709 339,666
Planning 141,851 - - - 141,851
Building 31,343 - - - 31,343
Public safety 27,434 - 127,468 - 154,902
Animal control 8,602 - - - 8,602
Facilities - 10,763 - - 10,763
Street maintenance and lighting - 135,352 - - 135,352
Parks and recreation - 318,968 - 110,155 429,123
Housing and economic development 22,425 596 - - 23,021
Public transit - - - 32,375 32,375
Recycling - - - 25,189 25,189
Capital outlay 149,440 15,580 - 151,940 316,960
Debt service:

Principal 3,960 - - - 3,960
Interest 10,880 - - - 10,880
Total expenditures 16,176 1,113,975 127,468 406,368 1,663,987

REVENUES OVER (UNDER)
EXPENDITURES 14,433 (108,918) 35,425 34,743 (24,317)
OTHER FINANCING SOURCES (USES):

Transfers in 114,665 - - - 114,665
Transfers out - (22,416) - (92,249) (114,665)
Total other financing sources (uses) (22,416) 114,665 - (92,249) - Net change in fund balances (7,983) 5,747 35,425 (57,506) (24,317) FUND BALANCES:

Beginning of year 1,124,293 400,206 (35,425) 38,457 1,527,531 End of year $ 392,223 1,130,040 $ - $ (19,049) $ 1,503,214 $ Special Revenue Funds
Major Funds
The accompanying notes are an integral part of these basic financial statements. 25 City of Blue Lake, California
Reconciliation of Fund Basis Statements to Government-wide Statement of Activities For the year ended June 30, 2023
Capital
Asset
(Additions), GovernmentFund Based Unearned Debt Retirements & OPEB Pension wide Functions/Programs Totals Revenue Repayment Depreciation Adjustments Obligation Plan Totals Governmental activities:

General government $ 58,970 339,666 $ - $ 18,332 $ - $ 6,981 $ (173,686) $ 250,263 $ Planning - 141,851 - - - - - 141,851
Building - 31,343 - - - - - 31,343
Public safety - 154,902 - - - - - 154,902
Animal control - 8,602 - - - - - 8,602
Facilities - 10,763 - - - - - 10,763
Street maintenance and lighting - 135,352 - 112,760 - - - 248,112 Parks and recreation - 429,123 - 60,098 - - - 489,221
Housing and economic development - 23,021 - - - - - 23,021 Public transit - 32,375 - - - - - 32,375
Recycling - 25,189 - - - - - 25,189
Capital outlay - 316,960 - - (316,960) - - -
Debt service:

Principal - 3,960 (3,960) - - - - -
Interest - 10,880 - - - - - 10,880
Total governmental activities $ 58,970 1,663,987 $ (3,960) $ 191,190 $ (316,960) $ 6,981 $ (173,686) $ 1,426,522 $ The accompanying notes are an integral part of these basic financial statements. 26 City of Blue Lake, California
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the year ended June 30, 2023
Net change in fund balances - governmental funds $ (24,317) Capital asset purchases capitalized $ 316,960
Depreciation expense (191,190) 125,770
Change in net pension liability 173,686
Change in net OPEB liability 166,705 (6,981)
This is the amount of revenue recognized under the accrual method which is more than the amount of revenue recognized under the modified accrual method in the current period. (58,970)
Certain loan receivables are reported in the governmental funds as expenditures and then offset by an unearned revenue as they are not available to pay current expenditures. Likewise, when the loan is collected it is reflected in revenue. This is the net change between loan receivables collected and issued. (24,136)
The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. 3,960 Change in net position of governmental activities $ 189,012 Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets:

Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds:

The accompanying notes are an integral part of these basic financial statements. 27 City of Blue Lake, California
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual - General Fund and Major Special Revenue Funds For the year ended June 30, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Property taxes and assessments 267,590 $ 345,703 365,632 $ 19,929 $ Sales and use tax 29,607 29,607 61,454 31,847
Transient occupancy tax 250 250 284 34
Licenses and permits 34,345 34,345 37,160 2,815
Charges for services 122,755 163,355 209,716 46,361
Franchise fees 39,090 39,090 42,498 3,408
Grants and donations 5,417 10,917 32,277 21,360
Intergovernmental revenues 484,797 496,834 185,801 (311,033) Investment earnings 3,534 3,534 21,576 18,042
Use of money and property 64,250 64,250 47,119 (17,131) Fines and penalties 49 49 787 738
Other revenues 2,772 2,772 753 (2,019)
Total revenues 1,190,706 1,054,456 1,005,057 (185,649)
EXPENDITURES:

Current:

General government 273,268 280,759 252,957 27,802
Planning 251,797 220,222 141,851 78,371
Building 28,413 28,413 31,343 (2,930)
Public safety 8,278 27,386 27,434 (48)
Animal control 8,009 8,453 8,602 (149)
Facilities 15,175 15,175 10,763 4,412
Street maintenance and lighting 107,993 107,993 135,352 (27,359) Parks and recreation 236,403 289,853 318,968 (29,115)
Housing and economic development 16,141 22,391 22,425 (34) Capital outlay 114,838 4,333 149,440 (34,602)
Debt service:

Principal 193,605 187,755 3,960 183,795
Interest 10,850 5,000 10,880 (30)
Total expenditures 1,314,088 1,148,415 1,113,975 200,113

REVENUES OVER (UNDER)
EXPENDITURES (123,382) (93,959) (108,918) 14,464
Proceeds from sales of assets - - - -
Transfers in 131,378 114,665 131,378 (16,713)
Transfers out - - - -
Total other financing sources (uses) 131,378 131,378 114,665 (16,713) Net change in fund balances 7,996 37,419 5,747 (2,249)
FUND BALANCES:

Beginning of year 1,124,293 1,124,293 1,124,293 -
End of year $ 1,132,289 1,161,712 $ 1,130,040 $ (2,249) $ General Fund
Budgeted Amounts
The accompanying notes are an integral part of these basic financial statements. 28 Variance w/Final Variance w/Final
Positive Positive
Original Final Actual (Negative) Original Final Actual (Negative) $ - - $ - $ - $ - $ - $ - $ - $
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - 146,450 146,450 162,880 16,430
4,043 4,043 9,565 5,522 50 50 13 (37)
15,600 19,657 21,044 1,387 - - - -
- - - - - - - -
- - - - - - - -
23,700 19,643 30,609 6,909 146,500 146,500 162,893 16,393 - - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - 146,523 146,523 127,468 19,055
- - - - - - - -
- - - - - - - -
- - - - - - - -
2,209 2,209 596 1,613 - - - -
185,000 185,000 15,580 169,420 - - - -
5,566 - - 5,566 - - - -
- - - - - - - -
192,775 187,209 16,176 176,599 146,523 146,523 127,468 19,055 (169,075) (167,566) 14,433 183,508 (23) (23) 35,425 35,448 - - - - - - - -
- - - - - - - -
(16,934) (16,934) (22,416) (5,482) - - - -
(16,934) (16,934) (22,416) (5,482) - - - -
(186,009) (184,500) (7,983) 178,026 (23) (23) 35,425 35,448 400,206 400,206 400,206 - (35,425) (35,425) (35,425) -
$ 214,197 215,706 $ 392,223 $ 178,026 $ (35,448) $ (35,448) $ - $ 35,448 $ CDBG Special Revenue Fund SLESF Special Revenue Fund
Budgeted Amounts Budgeted Amounts
29 Fund
MAJOR FUNDS:

Water Utility Fund
Sewer Utility Fund

PROPRIETARY FUNDS
Description
Proprietary funds account for City's operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.

This fund accounts for the operations of the City’s water utility, a self-supporting activity which renders services on a user-charge basis to its customers.

This fund accounts for the operations of the City’s wastewater utility, a selfsupporting activity which renders services on a user-charge basis to its customers.

All of the City's Enterprise Funds have been identified as major proprietary funds. 30 City of Blue Lake, California
Statement of Net Position
Enterprise Funds
June 30, 2023
Water Fund Sewer Fund Totals
ASSETS
Current assets:

Cash and investments 1,047,262 $ 1,622,981 $ 2,670,243 $ Receivables:

Accounts receivable, net 55,107 69,854 124,961
Interest receivable 7,372 12,581 19,953
Intergovernmental receivables - 55,251 55,251
Inventories 21,254 2,554 23,808
Total current assets 1,763,221 1,130,995 2,894,216
Noncurrent assets:

Capital assets, net 464,980 858,503 1,323,483
Total assets 2,621,724 1,595,975 4,217,699

DEFERRED OUTFLOWS OF RESOURCES
Pension plan 127,350 140,498 267,848
Other postemployment benefits (OPEB) 7,180 8,307 15,487 Total deferred outflows of resources 134,530 148,805 283,335 Total assets and deferred outflows of resources $ 2,770,529 1,730,505 $ 4,501,034 $

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 25,736 $ 13,371 $ 39,107 $ Accrued payroll 2,436 2,516 4,952
Compensated absences 13,262 16,277 29,539
Customer deposits 75,473 - 75,473
Notes payable, due within one year 10,048 - 10,048
Unearned revenues - - -
Total current liabilities 32,164 126,955 159,119
Noncurrent liabilities:

Notes payable, due after one year 15,117 - 15,117
Net pension liability 228,404 296,232 524,636
Net OPEB liability 39,607 44,684 84,291
Total liabilities 373,080 410,083 783,163

DEFERRED INFLOWS OF RESOURCES
Pension plan 92,189 84,994 177,183
Other postemployment benefits (OPEB) 28,683 31,805 60,488 Total deferred inflows of resources 116,799 120,872 237,671

NET POSITION
Net investment in capital assets 439,815 858,503 1,298,318 Restricted for capital projects 194,926 1,721,663 1,916,589 Unrestricted 564,809 (299,516) 265,293
Total net position 2,280,650 1,199,550 3,480,200
Total liabilities, deferred inflows of resources and
net position $ 2,770,529 1,730,505 $ 4,501,034 $
The accompanying notes are an integral part of these basic financial statements. 31 City of Blue Lake, California
Statement of Revenues, Expenses, and Changes in Fund Net Position Enterprise Funds
For the year ended June 30, 2023
Water Fund Sewer Fund Totals
OPERATING REVENUES:

Charges for services 493,141 $ 390,311 $ 883,452 $
Other operating revenues 14,559 45,598 60,157
Total operating revenues 435,909 507,700 943,609
OPERATING EXPENSES:

Salaries and benefits 145,780 152,152 297,932
Water purchases 184,886 - 184,886
Repairs, maintenance, and supplies 11,462 67,104 78,566 Professional services 57,573 32,697 90,270
Administration and other 79,801 67,829 147,630
Utilities 25,210 57,869 83,079
Depreciation 41,094 102,131 143,225
Total operating expenses 479,782 545,806 1,025,588
OPERATING INCOME(LOSS) (43,873) (38,106) (81,979)
NONOPERATING REVENUES (EXPENSES):

Intergovernmental revenues - 88,159 88,159
Interest revenue 21,248 30,303 51,551
Other nonoperating revenues 1,230 115,498 116,728
Interest expense (929) - (929)
Total non-operating revenues, net 233,960 21,549 255,509 CHANGE IN NET POSITION 190,087 (16,557) 173,530
NET POSITION:

Beginning of year 1,216,107 2,090,563 3,306,670
End of year 1,199,550 $ 2,280,650 $ 3,480,200 $
The accompanying notes are an integral part of these basic financial statements. 32 City of Blue Lake, California
Statement of Cash Flows
Enterprise Funds
For the year ended June 30, 2023
Water Fund Sewer Fund Totals
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers and interfund charges $ 312,066 524,783 $ 836,849 $ Cash payments to suppliers for goods and services (234,665) (359,617) (594,282) Cash payments to employees for services (265,627) (247,075) (512,702) Net cash provided (used) by operating activities (188,226) (81,909) (270,135) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Nonoperating amounts received 115,498 1,230 116,728
Grant received 88,159 - 88,159
Net cash provided (used) by noncapital financing activities 203,657 1,230 204,887 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Payments of notes payable - (10,651) (10,651)
Interest paid - (929) (929)
Acquisition and construction of capital assets (82,948) (10,696) (93,644) Net cash provided (used) by capital and related financing activities (82,948) (22,276) (105,224) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment revenue received 20,607 15,801 36,408
Net cash provided (used) by investing activities 20,607 15,801 36,408 Net increase (decrease) in cash and cash equivalents (46,910) (87,154) (134,064) CASH AND CASH EQUIVALENTS:

Beginning of year 1,669,891 1,134,416 2,804,307
End of year $ 1,622,981 1,047,262 $ 2,670,243 $
Reconciliation of income (loss) from operations to net
cash provided (used) by operating activities:

Operating income (loss) $ (43,873) (38,106) $ (81,979) $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 102,131 41,094 143,225
Pension expense (114,095) (101,366) (215,461)
OPEB expense 5,761 5,204 10,965
(Increase) decrease in current assets:

Accounts receivable (13,562) 12,997 (565)
Intergovernmental receivables (53,325) - (53,325)
Increase (decrease) in liabilities:

Accounts payable and accrued liabilities (9,166) (685) (9,851) Accrued payroll (5,141) (5,133) (10,274)
Compensated absences 2,225 1,182 3,407
Customer deposits - 2,904 2,904
Unearned revenues (59,181) - (59,181)
Net cash provided by operating activities $ (188,226) (81,909) $ (270,135) $ The accompanying notes are an integral part of these basic financial statements.

There were no noncash investing, capital, or financing activities affecting recognized assets and liabilities for the year ended June 30, 2023. 33 This page intentionally left blank.
34 35

NOTES TO BASIC FINANCIAL STATEMENTS
36 This page intentionally left blank.

City of Blue Lake, California
Basic Financial Statements
For the year ended June 30, 2023
Index to Notes to Basic Financial Statements
37 Page
Note 1 – Summary of Significant Accounting Policies ................................................................... 39 Financial Reporting Entity ............................................................................................................. 39 Basis of Presentation ...................................................................................................................... 40 Measurement Focus ....................................................................................................................... 41 Basis of Accounting ....................................................................................................................... 42 Assets, Liabilities, and Net Position/Fund Balance ....................................................................... 42 Revenues, Expenditures, and Expenses ......................................................................................... 47 Budgetary Accounting ................................................................................................................... 48 Note 2 – Cash and Investments ......................................................................................................... 49 Note 3 – Receivables .......................................................................................................................... 51 Note 4 – Loans Receivable ................................................................................................................ 51 Note 5 – Capital Assets ...................................................................................................................... 52 Note 6 – Accounts Payable and Accrued Liabilities ....................................................................... 54 Note 7 – Long-Term Liabilities ........................................................................................................ 54 Note 8 – Net Position/Fund Balances ............................................................................................... 55 Note 9 – Interfund Transactions ...................................................................................................... 58 Note 10 – Self-Insured Retention Funds .......................................................................................... 58 Note 11 – Risk Management ............................................................................................................. 58 Note 12 – Public Employees’ Retirement System ........................................................................... 59 Note 13 – Other Post-Retirement Employment Benefits ............................................................... 64 Note 14 – Community Development Block Grants ......................................................................... 68 Note 15 – Contingencies .................................................................................................................... 68 Note 16 – Commitments .................................................................................................................... 68 Note 17 – New Accounting Pronouncements ................................................................................... 69 Note 18 – Subsequent Events ............................................................................................................ 70 38 This page intentionally left blank.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
39 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Blue Lake, California (the "City") was incorporated April 23, 1910, under the provisions of the State of California. On August 1, 1996, the City changed its form of government and currently operates under a Council/City Manager form of government and provides the following services: public safety (police, animal control and building official), water and sewer services, park facilities and recreation programs, streets and road maintenance, industrial park management, recycling, regional facilities for the County Library District, housing and business expansion and retention (CBDG) grants, and general municipal government administrative services.

The financial statements of the City have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the standard-setting body for governmental accounting and financial reporting. On June 15, 1987, GASB issued a codification of the existing Governmental Accounting and Financial Reporting Standards which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes GAAP for governmental units. The City applies all GASB pronouncements to its activities.

In addition, the City applies all Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARB) issued after November 30, 1989, unless they conflict with or contradict GASB pronouncements.

The more significant of these accounting policies are described below and, where appropriate, subsequent pronouncements will be referenced.

Financial Reporting Entity
The City operates as a self-governing local government unit within the State. It has limited authority to levy taxes and has the authority to determine user fees for the services that it provides. The City’s main funding sources include property taxes, other intergovernmental revenue from state and federal sources, user fees, and sales taxes.

The financial reporting entity consists of (a) the primary government, the City, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. Financial accountability is defined as the appointment of a voting majority of the component unit’s board, and either (a) the City has the ability to impose its will on the organization, or (b) there is a potential for the organization to provide a financial benefit to or impose a financial burden on the City.

There are no component units of the City that meet the criteria for discrete presentation.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
40 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Basis of Presentation
Government-Wide Financial Statements
The statement of net position and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided by a given function or segment, 2) operating grants and contributions, and 3) capital grants and contributions restricted to the operating or capital requirements of a specific function or segment. All taxes and internally dedicated resources are reported as general revenues rather than program revenues.

Fund Financial Statements
Fund financial statements of the reporting entity are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of selfbalancing accounts, which constitute its assets, liabilities, fund equity, revenues, and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria:
a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental fund are at least ten percent of the corresponding total for all funds of that category or type; and,
b. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental fund are at least five percent of the corresponding total for all governmental funds combined.

The City reports the following major funds:
 General Fund
 CDBG Special Revenue Fund
 SLESF Special Revenue Fund
Descriptions of these funds are included on the divider page preceding the Governmental Funds Balance Sheet.

The funds of the financial reporting entity are described below:

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
41 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Governmental Funds
General Fund
The General Fund is used to account for resources traditionally associated with the City which are not required legally or by sound financial management to be accounted for in another fund. From this fund are paid the City’s general operating expenditures, the fixed charges, and the capital costs that are not paid through other funds.

Special Revenue Funds
The Special Revenue Funds are used to account for specific revenues that are legally or otherwise restricted to expenditures for particular purposes.

Capital Project Funds
The Capital Project Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for the acquisition or construction of major capital facilities and other capital assets (other than those financed by enterprise funds).

Proprietary Funds
Enterprise Funds
Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. Costs are financed or recovered primarily through user charges.

Measurement Focus
Measurement focus is a term used to describe which transactions are recorded within the various financial statements.

On the government-wide Statement of Net Position and the Statement of Activities, governmental and business-type activities are presented using the economic resources measurement focus. The accounting objectives of this measurement focus are the determination of net income, financial position, and cash flows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported. Fund equity is classified as Net Position, which serves as an indicator of financial position.

In the fund financial statements, the “current financial resources” measurement focus is used for governmental funds. Only current financial assets and liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
42 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Measurement Focus, Continued
The enterprise funds utilize an “economic resources” measurement focus. The accounting objectives of this measurement focus are the determination of net income, financial position, and cash flows.

Enterprise fund equity is classified as net position.

Agency funds are not involved in the measurement of results of operations; therefore, measurement focus is not applicable to them.

Basis of Accounting
In the government-wide Statement of Net Position and Statement of Activities, governmental and business-type activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.

Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual (both measurable and available – collectable within the current period or within 60 days after year end) and so have been recognized as revenues of the current fiscal year. All other revenue items are considered to be measurable and available only when cash is received by the government. Expenditures (including capital outlay) are recorded when the related fund liability is incurred.

The enterprise funds and agency funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Operating revenues in the fund are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues.

Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.

Assets, Liabilities, and Net Position/Fund Balance
Cash and Investments
The City pools idle cash from all funds for the purpose of increasing income through investment.

Earnings from such investments are allocated to the respective funds based on the applicable cash balance of each fund.

In accordance with the City’s investment policy, idle cash may be invested in the State of California Local Agency Investment Fund (LAIF).

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
43 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Cash and Investments, Continued
The City’s cash and cash equivalents for the Statement of Cash Flows purposes include cash on hand, demand deposits, restricted cash, and investments held in the California State Treasurer’s Local Agency Investment Fund (LAIF).

The City’s investments are carried at fair value.

The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and shortterm investments with original maturities of three months or less from the date of acquisition.

Receivables
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. Major receivable balances for the governmental activities include property taxes, sales and use taxes, intergovernmental subventions, interest earnings, and expense reimbursements.

In the fund financial statements, material receivables in governmental funds include revenue accruals such as property tax, sales tax, and intergovernmental subventions since they are usually both measurable and available. Non-exchange transactions collectible but not available, such as property tax, are deferred inflows in the fund financial statements in accordance with the modified accrual basis, but not deferred inflows in the government-wide financial statements in accordance with the accrual basis.

Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available. The City’s experience is that all accounts receivable are collectible; therefore an allowance for doubtful accounts is unnecessary.

Interfund Receivables and Payables
Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as due to/from other funds (the current portion of interfund loans) or advances to/from other funds (the noncurrent portion of interfund loans).

Inventory
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when used or consumed. Inventory of the enterprise funds consists primarily of materials and supplies for utility operations.

Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. In the governmental fund financial statements, prepaid items are offset with a nonspendable fund balance for long-term assets to indicate they do not constitute current resources available for appropriation.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
44 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Capital Assets
The City's assets are capitalized at historical cost or estimated historical cost, if actual is unavailable, except for donated capital assets which are recorded at their estimated fair value at the date of donation.

Policy has set the capitalization threshold for reporting at $5,000.

Government-Wide Statements
Public domain (infrastructure) capital assets include roads, bridges, streets, drainage systems, and pumps.

The accounting treatment of property, plant and equipment (capital assets) depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements.

Prior to July 1, 2003, governmental funds’ infrastructure assets were not capitalized. Since then these assets have been valued at estimated historical cost.

Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Position. Depreciation is provided over the assets’ estimated useful lives using the straight-line method of depreciation.

The range of estimated useful lives by type of asset is as follows:

Buildings 15 – 40 years
Water and sewer system 25 – 50 years
Machinery and equipment 3 – 15 years
Improvements 15 – 40 years
Other infrastructure 25 years
Fund Financial Statements
In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same way as in the government-wide statements.

Compensated Absences
Employees accrue personal leave, management leave, and compensatory time off benefits. City employees have vested interests in the amount of accrued time off and are paid on termination. All personal leave pay is accrued when incurred in the government-wide and proprietary financial statements. A liability for the entire amount is reported in the governmental funds. The general fund is typically used to liquidate compensated absences.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
45 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Unearned Revenues
Unearned revenues in governmental funds arise when potential revenue does not meet both the “measurable” and “available” criteria for recognition in the current period. Unearned revenues in enterprise funds and the statement of net position arise when resources are received by the City before it has legal claim to them, (i.e., when grant monies are received prior to the incurrence of qualifying expenses).

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has one item reported as a deferred outflow of resources. The item is a deferred charge on pension plan contributions in the governmentwide and proprietary fund statements of net position.

In addition to liabilities, the statement of position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has one item reported as a deferred inflow of resources.

The item is related to the City’s net pension liability and is reported in the government-wide and proprietary fund statements of net position.

Other Postemployment Benefits (OPEB)
For the purposes of measuring the net OPEB liability, deferred outflows/inflows of resources related to OPEB, and OPEB expense, generally accepted accounting principles require that the reported results must pertain to asset and liability information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Pensions
For purposes of measuring the net pension liability, deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees Retirement System (CalPERS) Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
46 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Net Position/Fund Balance
Government-Wide Statements
Equity is classified as net position and is displayed in three components:
a. Net investment in capital assets – consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.
b. Restricted net position – consists of net position with constraints placed on the use by external groups such as creditors, grantors, contributors, or by laws or regulations of other governments or law through constitutional provisions or enabling legislation. c. Unrestricted net position – all other net position that do not meet the definition of “restricted” or “net investment in capital assets.”
Fund Financial Statements
Governmental fund equity is classified as fund balance. Fund balance is classified as nonspendable, restricted, committed, assigned, or unassigned. Proprietary fund equity is classified the same as in the government-wide statements. The classifications for governmental funds are defined as follows for the City:

Nonspendable Fund Balance –
 Assets that will never convert to cash (prepaid items, inventory).  Assets that will not convert to cash soon enough to affect the current period (long-term notes or loans receivable).
 Resources that must be maintained intact pursuant to legal or contractual requirements (the principal of an endowment).

Restricted Fund Balance –
 Resources that are subject to externally enforceable legal restrictions imposed by parties altogether outside the government (creditors, grantors, contributors and other governments).  Resources that are subject to limitations imposed by law through constitutional provisions or enabling legislation (e.g., gas tax).

Committed Fund Balance –
 Self imposed limitations set in place prior to the end of the period (encumbrances, economic contingencies and uncertainties).
 Limitation at the highest level of decision-making (Council) that requires formal action at the same level to remove.
 Council Resolution is required to be taken to establish, modify, or rescind a fund balance commitment.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
47 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Net Position/Fund Balance, Continued
Assigned Fund Balance –
 Amounts in excess of nonspendable, restricted and committed fund balance in funds other than the general fund automatically are reported as assigned fund balance.  The City Council delegates the authority to the City Manager to assign fund balance amounts to specific purposes when such purposes are enacted by the City Council.

Unassigned Fund Balance –
 Residual net resources.
 Total fund balance in the general fund in excess of nonspendable, restricted, committed and assigned fund balance (surplus).
 Excess of nonspendable, restricted, and committed fund balance over total fund balance (deficit).

Revenues, Expenditures, and Expenses
Property Tax
The County of Humboldt (County) is responsible for the collection and allocation of property taxes.

Under California law, property taxes are assessed and collected by the County up to 1% of the full cash value of taxable property, plus other increases approved by the voters and distributed in accordance with statutory formulas. The City recognizes property taxes when the individual installments are due, provided they are collected within 60 days after year-end.

Secured property taxes are levied on or before the first day of March of each year. They become a lien on real property on March 1 preceding the fiscal year for which taxes are levied. These taxes are paid in two equal installments; the first is due November 1 and delinquent with penalties after December 10; the second is due February 1 and delinquent with penalties after April 10. Secured property taxes, which are delinquent and unpaid as of June 30, are declared to be tax defaulted and are subject to redemption penalties, cost, and interest when paid. If the delinquent taxes are not paid at the end of five years, the property is sold at public auction and the proceeds are used to pay the delinquent amounts due. Any excess is remitted, if claimed, to the taxpayer. Additional tax liens are created when there is a change in ownership of property or upon completion of new construction. Tax bills for these new tax liens are issued throughout the fiscal year and contain various payments and delinquent dates, but are generally due within one year. If the new tax liens are lower, the taxpayer receives a tax refund rather than a tax bill. Unsecured personal property taxes are not a lien against real property. These taxes are due on March 1, and become delinquent, if unpaid on August 31.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
48 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued The City participates in an alternative method of distribution of property tax levies and assessments known as the “Teeter Plan.” The State Revenue and Taxation Code allow counties to distribute secured real property, assessment, and supplemental property taxes on an accrual basis resulting in full payment to cities each fiscal year. Any subsequent delinquent payments and penalties and interest during a fiscal year will revert to Humboldt County.

Interfund Transfers
Resources are reallocated between funds by reporting them as interfund transfers. For the purposes of the Statement of Activities, all interfund transfers between individual governmental funds have been eliminated.

Budgetary Accounting
The City Council reviews and adopts annual budgets for the General, Special Revenue, and Capital Project Funds. Budgetary control is legally maintained at the fund level for these funds. The preliminary budget may or may not be amended by the City Council and is adopted by resolution by the City Council on or before June 30 in accordance with the municipal code.

The City Council may approve budget amendments by motion during the fiscal year. Only the City Council can authorize transfers between funds and approve interfund loans. The City Manager is authorized to transfer budgeted amounts within a fund without formal council action or approval.

Expenditures may not legally exceed appropriations at the fund level, which is the legal level of control.

Supplemental appropriations, which increase appropriations, may be made during the fiscal year. The City Council approved one supplemental appropriation during the fiscal year ended June 30, 2023.

Budget information is presented for the General, Special Revenue and Capital Project Funds in the fund financial statements. The budget information is presented on a basis consistent with generally accepted accounting principles. Appropriations, except open project appropriations, and unexpended grant appropriations, lapse at the end of each fiscal year.

Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Actual results could differ from those estimates.

Reclassifications
Certain amounts have been reclassified to provide for comparable results on a year to year basis.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
49 2. CASH AND INVESTMENTS
At June 30, 2023, the City’s pooled cash and investments, classified by maturity, consisted of the following stated at fair value:

Fair
Not rated Market Value
Cash equivalents and investments pooled
Pooled cash, at fair value
Cash in bank 161,899 $ 161,899 $
Cash on hand 2,730 2,730
Total pooled items 164,629 164,629
Pooled investments, at fair value
State of California Local Agency Investment Fund 3,895,742 3,895,742 Total pooled investments 3,895,742 3,895,742
Total cash equivalents and investments pooled 4,060,371 $ 4,060,371 $ Amounts reported in:

Restricted (legally
or contractually) Unrestricted Totals
Governmental funds
General - $ 826,104 $ 826,104 $
Special revenue 564,024 - 564,024
Total governmental funds 564,024 $ 826,104 $ 1,390,128 $ Enterprise funds
Water 214,421 $ 832,841 $ 1,047,262 $
Sewer 1,708,556 (85,575) 1,622,981
Total enterprise funds 1,922,977 $ 747,266 $ 2,670,243 $ Governmental activities 564,024 $ 826,104 $ 1,390,128 $ Business-type activities 1,922,977 747,266 2,670,243
Total 2,487,001 $ 1,573,370 $ 4,060,371 $
Weighted Average Average
Investment Type Fair Value Maturity (Years) Annual Yield Local Agency Investment Fund 3,895,742 $ 0.71 2.17%
California statutes authorize cities to invest idle or surplus funds in a variety of credit instruments as provided for in the California Government Code, Section 53600, Chapter 4 – Financial Affairs. The only authorized investment vehicles that address interest rate risk, credit risk, and concentration of credit risk, per the City’s investment policy, are the State of California Local Agency Investment Fund (LAIF) and certificates of deposit in California financial institutions.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
50 2. CASH AND INVESTMENTS, Continued
Concentration of credit risk – The City’s investment policy does not allow for an investment in any one issuer that is in excess of five percent of the government’s total investments. The investments made by the City Treasurer are limited to those allowable under State statutes as incorporated into the City’s Investment Policy, which is accepted annually by the City Council. There were no concentrations in any one issuer for the year.

The City participates in an investment pool managed by the State of California known as the Local Agency Investment Fund (LAIF) which has invested 2.78% of the pool funds in Structured Notes and Asset-Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and AssetBacked Securities are subject to market risk such as changes in interest rates.

Custodial credit risk – deposits. For deposits, this is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. The City’s Investment Policy addresses custodial credit risk, which follows the Government Code.

Custodial credit risk – investments. For investments, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside counterparty. For the investments maintained by the City, no security was uninsured or unregistered or held by a brokerage firm which is also the counterparty for the security.

At June 30, 2023, the carrying amount of the City’s deposits was $164,629 and the balances in financial institutions were $161,899. The total amount was covered by federal depository insurance.

Investment in LAIF: LAIF is stated at amortized cost, which approximates fair value. The LAIF is a special fund of the California State Treasury through which local governments may pool investments.

As of June 30, 2023, the total fair value amount invested by all public agencies in LAIF is $25.6 billion of which the City’s fair value amount is $3,895,742. Of the total invested, 2.78% was invested in Structured Notes and Asset-Backed securities. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute.

The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
51 3. RECEIVABLES
Receivables consisted of the following at June 30, 2023:

Governmental Business-type
Activities Activities Total
Accounts 10,979 $ 124,961 $ 135,940 $
Interest 229,920 19,953 249,873
Intergovernmental 790,041 55,251 845,292
Loans - 816,354 816,354
Total 1,847,294 $ 200,165 $ 2,047,459 $
These amounts resulted in the following concentrations in receivables:

Individuals / Businesses 57.2%
Other governments 41.3%
Financial 1.5%
Amounts do not indicate a significant concentration (greater than 25%) with any single individual, business, financial institution, or government agency.

4. LOANS RECEIVABLE
At June 30, 2023, notes receivable consist of the following:

Beginning Ending
July 1, 2022 Additions Deletions June 30, 2023
Residential redevelopment 834,290 $ - $ (21,536) $ 812,754 $ Business development 6,200 - (2,600) 3,600
Total loans/notes receivable 840,490 $ - $ (24,136) $ 816,354 $ The loans consist of deferred repayment and below market interest rate housing rehabilitation and business development loans. Substantially all of these loans are secured by deeds of trust and are repayable upon the sale or transfer of the underlying properties.

Substantially all the receivables are expected to be collected more than one year after the date of these financial statements.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
52 5. CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2023, was as follows:

Balance Balance
June 30, 2022 June 30, 2023
Governmental activities:

Nondepreciable assets:

Land 480,284 $ - $ - $ 480,284 $
Construction in progress 40,101 203,773 (7,609) 236,265 Total nondepreciable assets 203,773 520,385 (7,609) 716,549 Depreciable assets:

Land improvements 1,486,507 68,995 7,609 1,563,111
Infrastructure 2,279,736 24,015 - 2,303,751
Buildings and improvements 1,232,056 10,687 - 1,242,743 Machinery and equipment 318,048 9,489 - 327,537
Software 5,300 - 5,300
Total depreciable assets 113,186 5,321,647 7,609 5,442,442 Total 316,959 5,842,032 - 6,158,991
Accumulated depreciation:

Land improvements (268,368) (65,461) - (333,829)
Infrastructure (1,008,666) (92,026) - (1,100,692)
Buildings and improvements (949,745) (30,011) - (979,756) Machinery and equipment (297,044) (2,632) - (299,676)
Software (530) (1,060) - (1,590)
Total accumulated depreciation (191,190) (2,524,353) - (2,715,543) Net depreciable assets (78,004) 2,797,294 7,609 2,726,899 Total net capital assets $ 125,769 3,317,679 $ - $ 3,443,448 $ Additions/
Transfers
Deletions/
Transfers
Depreciation expense for capital assets was charged to categories as follows:

Governmental Activities
General government $ 18,332
Street maintenance and lighting 112,760
Parks and recreation 60,098
Total 191,190 $
City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
53 5. CAPITAL ASSETS, Continued
Capital asset activity for the year ended June 30, 2023, was as follows:

Balance Transfers/ Balance
June 30, 2022 Additions Deletions June 30, 2023
Business-type activities:

Nondepreciable assets:

Land 74,877 $ - $ - $ 74,877 $
Construction in progress 46,016 (11,639) 34,377
Total nondepreciable assets - 120,893 (11,639) 109,254
Depreciable assets:

Buildings and improvements 15,916 - - 15,916
Machinery and equipment 615,547 70,494 - 686,041
Water system 8,359 1,391,388 - 1,399,747
Sewer system 26,431 2,314,869 - 2,341,300
Total depreciable assets 105,284 4,337,720 - 4,443,004
Total 105,284 4,458,613 (11,639) 4,552,258
Accumulated depreciation:

Buildings and improvements (15,716) (200) - (15,916)
Machinery and equipment (517,083) (18,915) - (535,998)
Water system (28,129) (1,049,559) - (1,077,688)
Sewer system (95,981) (1,503,192) - (1,599,173)
Total accumulated depreciation (143,225) (3,085,550) - (3,228,775) Net depreciable assets (37,941) 1,252,170 - 1,214,229
Total net capital assets $ (37,941) 1,373,063 $ (11,639) $ 1,323,483 $ Depreciation expense for capital assets was charged to functions as follows:

Business-Type Activities
Water fund 41,094 $
Sewer fund 102,131
Total 143,225 $
City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
54 6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities consisted of the following at June 30, 2023:

Governmental Business-type
Activities Activities Total
Accounts payable 99,256 $ 39,107 $ 138,363 $
Accrued payroll and related liabilities 13,370 4,952 18,322 Total 112,626 $ 44,059 $ 156,685 $
Amounts do not indicate a significant concentration (greater than 25%) with any single vendor or individual.

7. LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the year ended June 30, 2023:

Balance Balance Due Within
July 1, 2022 Additions Retirements June 30, 2023 One Year Notes payable - Governmental Activities 219,441 $ - $ (3,960) $ 215,481 $ 3,808 $ Notes payable - Water Fund 35,816 - (10,651) 25,165 10,048 Total noncurrent liabilities 255,257 $ - $ (14,611) $ 240,646 $ 13,856 $ Notes payable – Governmental Activities
In 2020, the City entered into a loan agreement with the Redwood Region Economic Development Commission for the purposes of purchasing real estate. The loan amount totaled $225,000 and bears an interest rate of 5% per annum for 7 years. Payments are due in 84 equal monthly payments of $1,237, beginning February 1, 2021 and ending January 1, 2028, after which a final balloon payment of all unpaid principal and interest is due. The loan is secured by the purchased real estate.

Notes payable – Water Fund
In 2015, the City entered into a loan agreement with the National Rural Water Association for the purposes of financing water system improvements. The loan amount totaled $99,937 and bears an interest rate of 3% per annum for 10 years. Payments are due in 120 equal monthly payments of $965, beginning November 1, 2015 and ending October 1, 2025. The loan is secured by Water Fund capital assets.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
55 7. LONG-TERM LIABILITIES, Continued
The following is the debt service obligations of the City for the notes payable:

Year Ending
June 30, Principal Interest Principal Interest
2024 10,048 $ 567 $ 3,808 $ 9,798 $
2025 11,281 299 4,358 10,485
2026 3,836 24 4,581 10,262
2027 - - 4,815 10,027
2028 2,922 5,736
2029 194,998 -
Total 25,165 $ 890 $ 215,481 $ 46,308 $
Due within one year $ 567 10,048 $ 3,808 $ 9,798 $
Due after one year 323 15,117 211,673 36,510
Total 25,165 $ 890 $ 215,481 $ 46,308 $
Notes Payable - Water Fund Notes Payable - Governmental Activities

8. NET POSITION/ FUND BALANCES
Net Position
Governmental Business-type
Activities Activities
Net investment in capital assets 3,227,967 $ 1,298,318 $ Restricted 580,559 1,916,589
Unrestricted 1,448,512 265,293
Total 5,257,038 $ 3,480,200 $
Restricted balances are for the same purposes as fund balance restrictions because external restriction requirements are the same. See descriptions of the restrictions below.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
56 8. NET POSITION/ FUND BALANCES, Continued
Fund Balance
Fund balance consisted of the following at June 30, 2023:

Nonspendable:

Major Funds:

General Fund 32,466 $
Total Nonspendable 32,466
Restricted:

Major Funds:

CDBG Fund 392,223
Total Major Funds- Restricted 392,223
Nonmajor Funds:

Highway Users Tax Fund 46,786
TDA Street Fund 9,524
TDA Purchased Transportation Fund 1,422
AB-939 Solid Waste Reduction/Recycling Fund 26,084
Regional Surface Transportation Program (RSTP) Fund 7,460 American Rescue Plan - COVID Relief Fund 97,060
Total Nonmajor Funds- Restricted 188,336
Total Restricted 580,559
Committed:

Major Funds
General Fund 464,301
Total Committed 464,301
Unassigned (deficit):

Major Funds:

General Fund 633,273
Total Major Funds- Unassigned 633,273
Nonmajor Funds:

Recreation Economic Analysis Fund (57,818)
State Park Per Capita Program Fund (149,567)
Total Nonmajor Funds- Unassigned (207,385)
Total Unassigned 425,888
Total Fund Balance $ 1,503,214
City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
57 8. NET POSITION/ FUND BALANCES, Continued
The following describes the purpose of each nonspendable, restriction, and commitment account used by the City:

Restricted
 CDBG – represents amounts restricted for the City’s CDBG housing activities as these programs are supported by specific grants requiring the restriction.  Highway Users Tax Fund – accounts for the City’s receipt and use of State gas tax funds for which use is restricted to street maintenance activities.  TDA Street Fund – accounts for the City’s receipt and use of State Transportation Development Act funds for which the use is restricted to street maintenance activities.

These funds are distributed by the Humboldt County Association of Governments (HCAOG).
 TDA Purchased Transportation – represents amounts restricted by the Transportation Development Act for transportation, including streets and roads.  AB-939 Solid Waste Reduction/Recycling – represents amounts restricted by AB 939 for solid waste reduction activities.
 Regional Surface Transportation Program (RSTP) Fund – represents amounts restricted by State Regional Surface Transportation Program funds for street maintenance activities.
 American Rescue Plan – COVID Relief Fund – accounts for the receipt and use of Federal COVID relief funds.

Excess of Expenditures and Transfers Over Appropriations: Expenditures and transfers exceeded appropriations for the year ended June 30, 2023, for the following funds:

Total Excess
Expenditures Expenditures
Final Budget and Transfers Over Appropriations
Governmental Activities
Nonmajor Funds:

AB-939 Solid Waste Reduction / Recycling Fund 24,951 $ 28,654 $ (3,703) $ Regional Surface Transportation Program (RSTP) Fund 22,308 $ 27,458 $ (5,150) $ City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
58 9. INTERFUND TRANSACTIONS
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, and (2) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.

Transfers consisted of the following at June 30, 2023:

Transfers In Transfers Out
Governmental Activities
Major Funds:

General Fund $ - 114,665 $
CDBG Fund - 22,416
Total Major Funds 114,665 22,416
Non-major Funds:

Special Revenue Funds:

Highway Users Tax Fund - 46,069
TDA Street Fund 18,722 -
Regional Surface Transportation Program (RSTP) Fund - 27,458 Total Non-major Funds - 92,249
Total Transfers $ 114,665 114,665 $

10. SELF-INSURED RETENTION FUNDS
The City's liability insurance carrier requires the City to maintain $15,000 in reserve (SIR Reserve) for potential claims against the City. The City maintains $20,000 in reserve.

11. RISK MANAGEMENT
As of July 1, 1986, the City entered into a joint powers agreement for insurance coverage. The City of Blue Lake is exposed to various risks of loss related to torts; theft of, damages to, and destruction of assets; errors and omissions; and natural disasters for which the Member Entity obtains insurance coverage.

The City is a member of the Public Agency Risk Sharing Authority of California - PARSAC, a joint powers authority, which provides joint protection programs for public entities covering automobile, general liability, errors and omission losses, workers' compensation, and property claims. Under the program, the City has a $5,000 retention limit similar to a deductible with the Authority being responsible for losses above that amount up to $1 million. The Authority has additional coverage of $34 million in excess of its $1 million retention limit through affiliated risk management authorities.

The Authority also provides one billion dollars aggregate per occurrence property coverage to its members with such coverage provided by purchased insurance.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
59 11. RISK MANAGEMENT, Continued
Liabilities of the City are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRS). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example, from salvage or subrogation, are another component of the claims liability estimate.

The Authority covers workers' compensation claims up to its self-insurance limit of $500,000. The local Agency Workers Compensation excess Pool provides excess coverage to statutory limits. The City pays an annual premium to the Authority and may share in any surplus revenues or may be required to pay an additional assessments based upon the Authority's operating results. Financial statements of the PARSAC may be obtained from its administrative office located at 1525 Response Road, Suite One, Sacramento, CA 95815.

The City maintains no other commercial and risk pool coverage covering each of those risks of loss.

Settled claims have not exceeded coverage in any of the past five years.

12. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
General Information about the Pension Plans
Plan Descriptions
All qualified employees are eligible to participate in the City's separate Miscellaneous and Safety Employee Pension Plans. Both plans are part of a separate cost-sharing multiple-employer defined benefit pension plan administered by the California Public Employees' Retirement System (CalPERS).

CalPERS acts as a common investment and administrative agent for participating public entities within the state of California. Benefit provisions are established by State statute and City resolution. A full description of the pension plan benefit provisions, assumptions and membership information can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 (age 52 for PEPRA employees) with statutorily reduced benefits based on earnings and service credits. All members are eligible for non-duty disability benefits after 10 years of credited service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
60 12. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
The Plans' provisions and benefits in effect at June 30, 2023, are summarized as follows:

Miscellaneous
(Classic)
Miscellaneous
(PEPRA) Safety (Classic)
Hire date
Prior to
January 1, 2013
After
January 1, 2013
Prior to January 1,
2013
Benefit formula 2% @ 55 2% @ 62 2% @ 50
Benefit vesting schedule 5 years service 5 years service 5 years Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50 52 63
Monthly benefits, as a % of eligible compensation 2.0% - 2.5% 1.0 - 2.0% 1.0% - 2.5% Required employee contribution rates 7.0% 6.25% (1)
Required employer contribution rates 12.21% 7.47% (1)
(1) Currently, the City has no active safety employees as it outsources its law enforcement services. As a result, there is no current required rate of contributions.

Contributions
Section 20814(c) of the California Public Employees' Retirement Law 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. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CaIPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2023, the contributions recognized as part of pension expense for each Plan were as follows:

Miscellaneous Safety
Contributions - employer 129,005 $ 7,872 $
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2023, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows:

Proportionate Share
of Net Pension Liability
Miscellaneous 1,127,234 $
Safety 106,766
Total Net Pension Liability 1,234,000 $
City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
61 12. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
The City's net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2022, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for each Plan as of June 30, 2023 and 2022 was as follows:

Miscellaneous Safety
Proportion - June 30, 2022 0.03980% 0.00190%
Proportion - June 30, 2023 0.02409% 0.00155%
Change - Increase/(Decrease) -0.01571% -0.00035%
For the year ended June 30, 2023, the City recognized pension expense of $(252,272). At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of Assumptions 126,273 $ - $
Differences between Expected and Actual Experience 27,056 16,321 Differences between Projected and Actual Investment Earnings 223 - ,339 Differences between Employer's Contributions and Proportionate Share of Contributions 6,864 43,169
Change in Employer's Proportion 1,368 214,003
Pension Contributions Made Subsequent to Measurement Date 136,87 - 7 $ 558,082 $ 237,188
$136,877 is reported as deferred outflows of resources related to contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
62 12. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Year Ended
30-Jun
2024 (28,478) $
2025 (14,722)
2026 (4,242)
2027 (136,575)
2028 -
Thereafter -
$ (184,017)
Actuarial Methods and Assumptions
The total pension liability was determined by actuarial valuations as of June 30, 2021, which were rolled forward to June 30, 2022, using the following actuarial methods and assumptions:

Actuarial Methods and Assumptions:

Actuarial cost method Entry-age normal cost method
Actuarial assumptions:

Investment rate of return 6.90%, net of pension plan expenses, including inflation Payroll growth 2.75%
Discount rate 6.90%
Inflation 2.50%
Salary increases Varies by entry age and service
Mortality rate table Derived using CalPERS’ membership data for all funds Post-retirement benefit increase Contract COLA up to 2.5% until purchasing power protection allowance floor on purchasing power applies
The underlying mortality table used was developed based on CalPERS’ specific data. The table includes 15 years of mortality improvements using the Society of Actuaries 90 percent of scale MP 2016. For more details, please refer to the December 2017 experience study report.

All other actuarial assumptions were based on the results of the December 2017 actuarial experience study for the experience study periods 1997 to 2015. The experience study can be obtained at CalPERS’ website under Forms and Publications.

Discount Rate
The discount rate used to measure the total pension liability was 6.90 percent. To determine whether the municipal bond rate should be used in the calculation of the discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. The tests revealed the assets would not run out. Therefore, the current

6.90 percent discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 6.90 percent is applied to all plans in the Public Employees' Retirement Fund (PERF).

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
63 12. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Changes of Assumptions
The cash flows used in the testing were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. The stress test results are presented in a detailed report called "GASB Crossover Testing Report" that can be obtained at CalPERS website under the GASB 68 section.

The long-term expected rate of return on pension plan investments was determined using a buildingblock 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 as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

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

Asset Class
Current Target
Allocation
Real Return Years 1 -
101
Global equity - cap- weighted 30.0% 4.45%
Global equity non-cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Morgate-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Bedt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
100.0%
(1) An expected inflation of 2.3% used for this period.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
64 12. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Sensitivity of the 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 for each Plan, calculated using the discount rate for each Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Current
1% Decrease Discount Rate 1% Increase

5.90% 6.90% 7.90%
Net Pension Liability as of
June 30, 2023
Miscellaneous 1,569,636 $ 1,127,234 $ 763,246 $
Safety 147,865 106,766 73,177
Total 1,717,501 $ 1,234,000 $ 836,423 $
Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.

13. OTHER POST EMPLOYMENT BENEFITS
Plan Description
The City administers a single-employer defined-benefit post-employment healthcare plan.

Benefits Provided
Retirees are eligible for medical benefits after 15 years of service. The City covers 50% of the retiree's health insurance premiums up to the age of 65. Benefits are not provided for retiree spouse or dependent health care coverage.

Employees Covered by Benefit Terms
At June 30, 2023 (the measurement date), the following employees were covered by the benefit terms:

Inactive Employees Receiving Benefits 0
Inactive Employees Entitled to But Not Receiving Benefits 0 Participating Active Employees 7
Total Number of participants 7
Contributions
The City pays benefits as they come due.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
65 13. OTHER POST EMPLOYMENT BENEFITS, Continued
Actuarial Methods and Assumptions
The City’s net OPEB liability was measured as of June 30, 2022 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021 based on the following actuarial methods and assumptions:

Actuarial cost method Entry-age actuarial cost method
Actuarial assumptions:

Discount rate 3.54%, net of expenses
Inflation 2.50%
Salary increases 2.75% per annum
Investment rate of return 3.54%, net of expenses
Mortality rate (1) 2017 CalPERS Mortality for Miscellaneous and Schools Employees Retirement rates Hired 2013 and later: 2017 CalPERS 2.0% @ 62 Rates for miscellaneous employees
Hired 2012 and earlier: 2017 CalPERS 2.5% @ 55 Rates for miscellaneous employees
Pre-retirement turnover (2) 2017 CalPERS turnover for miscellaneous employees Healthcare trend rate 4.00%
Actuarial Methods and Assumptions:
(1) The mortality assumptions are based on the 2017 CalPERS Active Mortality for Miscellaneous Employees table created by CalPERS. CalPERS periodically studies mortality for participating agencies and establishes mortality tables that are modified versions of commonly used tables. This table incorporates mortality projection as deemed appropriate based on CalPERS analysis. (2) The turnover assumptions are based on the 2017 CalPERS Turnover for Miscellaneous Employees table created by CalPERS. CalPERS periodically studies the experience for participating agencies and establishes tables that are appropriate for each pool.

Discount Rate
The discount rate used to measure the total OPEB liability was 3.54 percent. Since the City's OPEB Plan is an unfunded plan, the discount rate is based on an index of 20-year general obligation municipal bonds rate AA or higher.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
66 13. OTHER POST EMPLOYMENT BENEFITS, Continued
Changes in the Net OPEB Liability
The changes in the net OPEB liability for the Plan are as follows:

Total OPEB
Liability
Fiduciary
Net Position
Net OPEB
Liability
Balance at 6/30/2021 Measurement Date 242,241 $ - $ $ 242,241 Changes for the year
Service Cost 22,599 - 22,599
Interest on TOL 5,438 - 5,438
Employer Contributions - 3,523 (3, 523)
Benefit Payments (3,523) (3,523) -
Actual Investment Income - - -
Administrative expenses - - -
Changes in Assumptions (36,636) - (36, 636)
Experience (Gains)/Losses (68,713) - (68, 713)
Other - - -
Net Changes (80,835) - (80, 835)
Balance at 6/30/2022 Measurement Date 161,406 $ - $ $ 161,406 Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
1% Decrease Discount Rate 1% Increase
(2.54%) (3.54%) (4.54%)
Net OPEB Liability 179,769 $ 161,406 $ 145,223 $
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate:
1% Decrease Current Trend 1% Increase
(3.00%) (4.00%) (5.00%)
Net OPEB Liability 137,306 $ 161,406 $ 190,576 $
City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
67 13. OTHER POST EMPLOYMENT BENEFITS, Continued
Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss:

Net difference between projected and
actual earnings on OPEB plan
investments
All other amounts
5 years
Expected average remaining service
lifetime (EARSL)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2023, the City recognized OPEB expense of $21,469. As of fiscal year ended June 30, 2023, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience - $ (65,094) $ Changes in assumptions 24,060 (33,751)
Total $ (98,845) 24,060 $
Amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

Fiscal Year Ended
June 30,
Deferred
Outflow/(Inflows) of
Resources
2024 (6,568) $
2025 (6,568)
2026 (6,568)
2027 (6,568)
2028 (6,568)
Thereafter (41,945)
$ (74,785)
City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
68 14. COMMUNITY DEVELOPMENT BLOCK GRANTS
The City has been awarded various block grants by the State of California - Housing and Community Development. These grants fund housing rehabilitation, business development, and infrastructure improvements to City streets.

Revenues and expenditures for activities relating to the housing rehabilitation and the business development are accounted for in special revenue funds. Through this program, the City pays for housing rehabilitation, business expansion and retention, plus administrative program costs. At the completion of projects benefiting the private property owners, the City issues a note, secured by a deed of trust for the cost of the improvements.

These notes carry rates ranging from 1% to 10%. Most of the notes require repayment when the property is sold, but some require period amortized payments. As these notes are repaid, funds may be used for new improvements, program costs, and loans to private property owners.

CDBG Program Income (PI) Reuse Agreement
Effective November 18, 2014 the City entered into the Reuse Agreement which allows the City to receive repayments from CDBG and spend those PI funds in the absence of an active CDBG grant contract. The Agreement establishes policies and procedures for the administration and utilization of Program income received as a direct result of eligible activities funded under CDBG contracts with the City. The Agreement allows five ways to manage PI:

1. Expend monies on active grant contract activities

2. Expend monies on general administration activities

3. Expend monies through an approved revolving loan fund

4. Expend monies on approved waiver activity, when no active contract is in force

5. Return the monies annually to the Department (CDBG)

15. CONTINGENCIES
The City is a party to claims and lawsuits arising in the ordinary course of business. The City’s management and legal counsel are of the opinion that the ultimate liability, if any, arising from these claims will not have material adverse impact on the financial position of the City. The City participates in a number of federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors. The amount, if any, of expenditures 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.

16. COMMITMENTS
The City has contracted with the Humboldt Bay Municipal Water District (HBMWD) for water purchases. The agreement expires June 30, 2037. The City has an option to extend the agreement for an additional ten years. The agreement will be automatically extended to correspond to the term of an agreement entered into between HBMWD and the State of California. The water rate paid by the City is based on numerous factors. Rates are determined by allocating HBMWD's operating costs, maintenance, repairs and replacement to all users connected to the HBMWD system.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
69 16. COMMITMENTS, Continued
On June 27, 2019, the City entered into a contract with the Humboldt County Sheriff’s Department whereby the County agreed to provide law enforcement services to the City. The term of the current agreement was for the period July 1, 2019 through June 30, 2023. The cost to the City under the agreement was $319,671 annually, with the amount for future years subject to an annual recalculation.

Either party may terminate this contract upon 60 days written notice.

17. NEW ACCOUNTING PRONOUNCEMENTS
The GASB has issued statement No. 94, “Public-Private and Public-Public Partnerships and Availability Payment Arrangements”. The objective of this Statement is to better meet the information needs of financial statement users by improving the comparability of financial statements among governments that enter into PPPs and APAs and by enhancing the understandability, reliability, relevance, and consistency of information about PPPs and APAs. The implementation of this statement did not have an effect on the financial statements.

The GASB has issued statement No. 96, “Subscription-Based Information Technology Arrangements”.

The objective of this Statement is to better meet the information needs of financial statement users by (a) establishing uniform accounting and financial reporting requirements for SBITAs; (b) improving the comparability of financial statements among governments that have entered into SBITAs; and (c) enhancing the understandability, reliability, relevance, and consistency of information about SBITAs.

The implementation of this statement did not have an effect on the financial statements.

The GASB has issued Statement No. 99, "Omnibus 2022." The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The requirements related to leases, PPPs, and SBITAs will take effect for financial statements starting with the fiscal year that ends June 30, 2023. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 will take effect for financial statements starting with the fiscal year that ends June 30, 2024.

The GASB has 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. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2024.

The GASB has issued Statement No. 101, "Compensated Absences." The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends December 31, 2024.

City of Blue Lake, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
70 18. SUBSEQUENT EVENTS
Events occurring after June 30, 2023 but before the financial statements were available to be issued must be evaluated for possible adjustment to the financial statements or disclosure. The effects of subsequent events that provide evidence about conditions that existed at June 30, 2023 are recognized in the accompanying financial statements. Subsequent events which provide evidence about conditions that existed after June 30, 2023 require disclosure in the accompanying notes. Management has evaluated the activity of the City through November 22, 2024, and concluded that no subsequent event(s) have occurred that would require recognition in the financial statements or disclosure in the notes to the financial statements.

REQUIRED SUPPLEMENTARY INFORMATION
71 City of Blue Lake, California
Required Supplementary Information -
Schedule of Changes in the Net OPEB Liability
and Related Ratios
Last 10 Fiscal Years
2023 2022 2021 2020 2019 2018
Total OPEB liability
Service Cost $ 21,833 22,599 $ 13,738 $ 12,669 $ 12,332 $ 12,331 $ Interest on the total OPEB liability 4,955 5,438 6,344 5,948 5,355 5,039 Differences between expected and actual experience - - (2,206) - - - Benefit Payments - (3,523) - - - -
Changes of assumptions 1,144 (36,636) 22,031 6,836 - -
Experience (Gains)/Losses (68,713)
Contributions - employer - - - (2,465) (2,370) (2,370)
Net change in total OPEB liability (80,835) 27,932 39,907 22,988 15,317 15,000 Total OPEB liability ‐ beginning 214,309 242,241 174,402 151,414 136,097 121,097 Total OPEB liability ‐ ending (a) $ 242,241 161,406 $ 214,309 $ 174,402 $ 151,414 $ 136,097 $ Plan fiduciary net position
Contributions ‐ employer $ - 3,523 $ - $ 2,465 $ 2,370 $ 2,370 $ Contributions ‐ employee - - - - - -
Actual investment income - - - - - -
Administrative expense - - - - - -
Benefit payments (3,523) - - (2,465) (2,370) (2,370)
Net change in plan fiduciary net position - - - - - -
Plan fiduciary net position ‐ beginning - - - - - -
Plan fiduciary net position ‐ ending (b) $ - - $ - $ - $ - $ - $ Net OPEB liability ‐ ending (a) ‐ (b) $ 242,241 161,406 $ 214,309 $ 174,402 $ 151,414 $ 136,097 $ Covered‐employee payroll 488,856 $ 382,811 $ 391,542 $ 434,670 $ 358,127 $ 344,357 $ Net OPEB liability as a percentage of
covered‐employee payroll 33.02% 63.28% 54.73% 40.12% 42.28% 39.52% Notes to Schedule
1) GASB 75 was implemented during the fiscal year ended June 30, 2018. Additional years (10 years required by GASB 75) will be added as they become available. 2) Covered payroll is the payroll paid to all employees who are eligible for and accruing OPEB benefits. 3) For each fiscal year presented, information regarding the City's OPEB plan, including the methods and assumptions used to calculate the net OPEB liability, can be found in the notes to the City's basic financial statements.
72 City of Blue Lake, California
Required Supplementary Information - Schedule of Contributions Last 10 Fiscal Years
Miscellaneous Plan 2023 2022 2021 2020 2019 2018 2017 2016 2015 Contractually required contribution (actuarially
determined) $ 137,437 129,005 $ 124,999 $ 115,836 $ 102,595 $ 87,054 $ 81,163 $ 76,737 $ 70,877 $ Contributions in relation to the actuarially
determined contributions $ (129,005) (124,999) (137,437) (115,836) (102,595) (87,054) (81,163) (76,737) (70,877) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ - $ Covered-employee payroll $ 382,811 488,856 $ 391,542 $ 434,670 $ 358,127 $ 344,357 $ 352,370 $ 324,828 $ 351,126 $ Contributions as a percentage of covered-employee
payroll 26.39% 35.90% 31.92% 26.65% 28.65% 25.28% 23.03% 23.62% 20.19% Safety Plan 2023 2022 2021 2020 2019 2018 2017 2016 2015 Contractually required contribution (actuarially
determined) $ 7,426 7,872 $ 7,053 $ 6,995 $ 6,911 $ 5,699 $ 3,766 $ 3,264 $ 2,444 $ Contributions in relation to the actuarially
determined contributions $ (7,872) (7,053) (7,426) (6,995) (6,911) (5,699) (3,766) (3,264) (2,444) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ - $ Covered-employee payroll $ - - $ - $ - $ - $ - $ - $ - $ - $ Contributions as a percentage of covered-employee
payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A
Notes to Schedule
1) Covered payroll is the payroll on which contributions to a pension plan are based. 2) Additional years will be added as they become available in the future. 3) Actuarially determined contributions are calculated as of June 30, two years prior to the end of the fiscal year in which contributions are reported. More information on the methods and assumptions used to determine the contribution rates can be found on the CalPERS website. 4) During the fiscal years presented above, the City had no covered payroll for its public safety department as these services were outsourced. 73 City of Blue Lake, California
Required Supplementary Information - Schedule of the City's Proportionate Share of the Net Pension Liability
Last 10 Fiscal Years
Miscellaneous Plan 2023 2022 2021 2020 2019 2018 2017 2016 2015 Plan's Proportion of the Net Pension Liability/(Asset) 0.02409% 0.03980% 0.02480% 0.02494% 0.02511% 0.02467% 0.02497% 0.02654% 0.02382% Plan's Proportionate Share of the Net Pension
Liability/(Asset) $ 755,762 1,127,234 $ 1,045,933 $ 998,738 $ 946,411 $ 972,414 $ 867,270 $ 728,014 $ 588,787 $ Plan's Covered-Employee Payroll $ 382,811 488,856 $ 391,542 $ 434,670 $ 358,127 $ 344,357 $ 352,370 $ 324,828 $ 351,126 $ Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of its Covered-Employee Payroll 230.59% 197.42% 267.13% 229.77% 264.27% 282.39% 246.12% 224.12% 167.69% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 65.27% 75.03% 64.31% 67.95% 70.21% 68.75% 69.64% 74.03% 78.34% Plan's Proportionate Share of Aggregate Employer
Contribution $ 89,317 109,869 $ 84,214 $ 87,758 $ 84,974 $ 80,955 $ 74,075 $ 71,796 $ 57,581 $ Safety Plan 2023 2022 2021 2020 2019 2018 2017 2016 2015 Plan's Proportion of the Net Pension Liability/(Asset) 0.00155% 0.00190% 0.00145% 0.00148% 0.00154% 0.00149% 0.00155% 0.00156% 0.00131% Plan's Proportionate Share of the Net Pension
Liability/(Asset) $ 66,547 106,766 $ 96,736 $ 92,263 $ 90,259 $ 88,897 $ 80,260 $ 64,436 $ 49,025 $ Plan's Covered-Employee Payroll $ - - $ - $ - $ - $ - $ - $ - $ - $ Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of its Covered-Employee Payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A
Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 64.13% 77.33% 66.92% 68.00% 68.27% 67.91% 69.55% 75.29% 81.42% Plan's Proportionate Share of Aggregate Employer
Contribution $ 12,128 12,732 $ 10,129 $ 8,599 $ 8,194 $ 6,491 $ 6,334 $ 6,678 $ 6,082 $ Notes to Schedule
1) Covered payroll is the payroll on which contributions to a pension plan are based. 2) Additional years will be added as they become available in the future. 3) For each fiscal year presented, information regarding the City's pension plan, including the methods and assumptions used to calculate the net pension liability, can be found in the notes to the City's basic financial statements.
4) During the fiscal years presented above, the City had no covered payroll for its public safety department as these services were outsourced. 74 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES 75 This page intentionally left blank.
76 Fund Type
Special Revenue Funds:

Highway Users Tax Fund
TDA Street Fund
TDA Purchased Transportation Fund
AB-939 Solid Waste Reduction /
Recycling Fund
Regional Surface Transportation
Program (RSTP) Fund
Recreation Economic Analysis Fund
American Rescue Plan - COVID
Relief Fund
State Park Per Capital Program Fund
This fund accounts for the City’s receipt and use of State gas tax funds for which use is restricted to street maintenance activities.

NON-MAJOR GOVERNMENTAL FUNDS
Description
This fund accounts for the City’s receipt and use of State Transportation Development Act funds for which the use is restricted to street maintenance activities. These funds are distributed by the Humboldt County Association of Governments (HCAOG).

This fund accounts for the City’s receipt and use of State Transportation Development Act funds for which the use is restricted to public transit services. These funds are distributed by the Humboldt County Association of Governments (HCAOG).

This fund accounts for the City’s receipt and use of State revenues derived from solid waste/recycling fees and the sale of recyclable materials. The use of these are restricted to solid waste reduction activities.

This fund accounts for the City’s receipt and use of State Regional Surface Transportation Program funds for which the use is restricted to street maintenance activities. These funds are distributed by the Humboldt County Association of Governments (HCAOG).

This fund accounts for the receipt and use of funds related to the City's Recreation Economic Analysis Project.

This fund accounts for the receipt and use of Federal COVID relief funds.

This fund accounts for the receipt and use of State Per Capita Program funds. 77 City of Blue Lake, California
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
AB-939
TDA Purchased Solid Waste
Highway TDA Street Transportation Reduction /
Users Tax Fund Fund Fund Recycling Fund
ASSETS
Cash and investments $ 9,387 40,909 $ - $ 24,535 $
Receivables:

Interest receivable 371 137 - 189
Intergovernmental receivables 5,506 - 32,375 2,004
Total assets $ 9,524 46,786 $ 32,375 $ 26,728 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities - $ - $ 2,750 $ - $ Accrued payroll - - - 157
Compensated absences - - - 487
Due to other funds - - 28,203 -
Unearned revenue - - - -
Total liabilities - - 30,953 644
Fund balances:

Restricted 9,524 46,786 1,422 26,084
Unassigned (deficit) - - - - 0 Total fund balances 9,524 46,786 1,422 26,084 Total liabilities and fund balances $ 9,524 46,786 $ 32,375 $ 26,728 $ Special Revenue Funds
78 Regional
Surface Recreation American Rescue State Park Total
Transportation Economic Plan - COVID Per Capita Special Revenue Program (RSTP) Fund Analysis Fund Relief Fund Program Fund Funds $ - - $ 99,998 $ - $ 174,829 $
- 41 - - 738
12,540 57,820 - 149,569 259,814
$ 57,820 12,581 $ 99,998 $ 149,569 $ 435,381 $
$ - - $ 902 $ - $ 3,652 $
- - 173 - 330
- - 1,863 1,801 4,151
57,819 5,121 - 147,767 238,910
57,819 - - 149,568 207,387
115,638 5,121 2,938 299,136 454,430
- 7,460 97,060 - 188,336
(57,818) - - (149,567) (207,385)
(57,818) 7,460 97,060 (149,567) (19,049)
$ 57,820 12,581 $ 99,998 $ 149,569 $ 435,381 $
Special Revenue Funds
79 City of Blue Lake, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2023
AB-939
TDA Purchased Solid Waste
Highway TDA Street Transportation Reduction /
Users Tax Fund Fund Fund Recycling Fund
REVENUES:

Intergovernmental revenues $ 28,098 61,002 $ 32,375 $ 33,386 $ Investment earnings 926 137 - 564
Total revenues 28,235 61,928 32,375 33,950
EXPENDITURES:

Current:

General government - - - -
Parks and recreation - - - -
Public transit - - 32,375 -
Recycling - - - 25,189
Capital outlay - - - 3,465
Total expenditures - - 32,375 28,654

REVENUES OVER (UNDER)
EXPENDITURES 28,235 61,928 - 5,296
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out (46,069) (18,722) - -
Total other financing
sources (uses) (18,722) (46,069) - -
NET CHANGE IN FUND BALANCES 9,513 15,859 - 5,296
FUND BALANCES:

Beginning of year 11 30,927 1,422 20,788
End of year $ 9,524 46,786 $ 1,422 $ 26,084 $
Special Revenue Funds
80 Regional
Surface Recreation American Rescue State Park Total
Transportation Economic Plan - COVID Per Capita Special Revenue Program (RSTP) Fund Analysis Fund Relief Fund Program Fund Funds $ 100,790 34,723 $ 148,915 $ - $ 439,289 $
- 195 - - 1,822
100,790 34,918 148,915 - 191,406
- - 86,709 - 86,709
110,155 - - - 110,155
- - - - 32,375
- - - - 25,189
- - 8,615 139,860 151,940

110,155 - 95,324 139,860 406,368
(9,365) 34,918 53,591 (139,860) 34,743
- - - - -
- (27,458) - - (92,249)
- (27,458) - - (92,249)
(9,365) 7,460 53,591 (139,860) (57,506)
(48,453) - 43,469 (9,707) 38,457
$ (57,818) 7,460 $ 97,060 $ (149,567) $ (19,049) $
Special Revenue Funds
81 City of Blue Lake, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Highway Users Tax Special Revenue Fund
For the year ended June 30, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental revenues 68,931 $ 68,931 $ 61,002 $ (7,929) $ Investment earnings 99 99 827 926
Total revenues 69,030 69,030 61,928 (7,102)
EXPENDITURES:

Current:

Street maintenance - - - -
Total expenditures - - - -

REVENUES OVER (UNDER)
EXPENDITURES 69,030 69,030 61,928 (7,102)
OTHER FINANCING SOURCES (USES):

Transfers out (69,030) (69,030) (46,069) 22,961
Total other financing sources (uses) (69,030) (69,030) (46,069) 22,961 Net change in fund balances - - 15,859 15,859
FUND BALANCES:

Beginning of year 30,927 30,927 30,927 -
End of year $ 30,927 30,927 $ 46,786 $ 15,859 $
Budgeted Amounts
82 City of Blue Lake, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual TDA Street Special Revenue Fund
For the year ended June 30, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental revenues $ 28,098 28,098 $ 28,098 $ - $ Investment earnings 10 10 137 127
Total revenues 28,108 28,108 28,235 127
EXPENDITURES:

Current:

Street maintenance - - - -
Total expenditures - - - -

REVENUES OVER (UNDER)
EXPENDITURES 28,108 28,108 28,235 127
OTHER FINANCING SOURCES (USES):

Transfers out (28,108) (28,108) (18,722) 9,386
Total other financing sources (uses) (28,108) (28,108) (18,722) 9,386 Net change in fund balances - - 9,513 9,513
FUND BALANCES:

Beginning of year 11 11 11 -
End of year $ 11 11 $ 9,524 $ 9,513 $
Budgeted Amounts
83 City of Blue Lake, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual TDA Purchased Transportation Special Revenue Fund
For the year ended June 30, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental revenues $ 32,375 32,375 $ 32,375 $ $ - Investment earnings - - - -
Total revenues 32,375 32,375 32,375 -
EXPENDITURES:

Current:

Public transit 32,375 32,375 32,375 -
Capital outlay - - - -
Total expenditures 32,375 32,375 32,375 -

REVENUES OVER (UNDER)

EXPENDITURES - - - -
OTHER FINANCING SOURCES (USES):

Transfers out - - - -
Total other financing sources (uses) - - - -
Net change in fund balances - - - -
FUND BALANCES:

Beginning of year 1,422 1,422 1,422 -
End of year $ 1,422 1,422 $ 1,422 $ - $
Budgeted Amounts
84 City of Blue Lake, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual AB-939 Solid Waste Reduction/ Recycling Special Revenue Fund For the year ended June 30, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental revenues $ 32,748 32,748 $ 33,386 $ $ 638 Investment earnings 56 56 564 508
Total revenues 32,804 32,804 33,950 1,146
EXPENDITURES:

Current:

Recycling 24,951 24,951 25,189 238
Capital outlay - - 3,465 3,465
Total expenditures 24,951 24,951 28,654 3,703

REVENUES OVER (UNDER)
EXPENDITURES 7,853 7,853 5,296 (2,557)
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
Net change in fund balances 7,853 7,853 5,296 (2,557)
Residual equity transfer in - - - -
FUND BALANCES:

Beginning of year 20,788 20,788 20,788 -
End of year $ 28,641 28,641 $ 26,084 $ (2,557) $
Budgeted Amounts
85 City of Blue Lake, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Regional Surface Transportation Program Special Revenue Fund For the year ended June 30, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental revenues $ 22,183 10,954 $ 34,723 $ $ 12,540 Investment earnings 125 - 195 70
Total revenues 22,308 10,954 34,918 12,610
EXPENDITURES:

Current:

Street maintenance - - - -
Total expenditures - - - -

REVENUES OVER (UNDER)
EXPENDITURES 22,308 10,954 34,918 12,610
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out (10,954) $ (22,308) $ (27,458) (5,150)
Total other financing sources (uses) (22,308) (10,954) (27,458) (5,150) Net change in fund balances - - 7,460 7,460
FUND BALANCES:

Beginning of year - - - -
End of year $ - - $ 7,460 $ 7,460 $
Budgeted Amounts
86 City of Blue Lake, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Recreation Econcomic Analysis Fund
For the year ended June 30, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental revenues $ 145,000 145,000 $ 100,790 $ $ (44,210) Investment earnings - - - -
Total revenues 145,000 145,000 100,790 (44,210)
EXPENDITURES:

Current:

Parks and recreation 145,000 145,000 110,155 34,845
Total expenditures 145,000 145,000 110,155 34,845

REVENUES OVER (UNDER)
EXPENDITURES - - (9,365) (9,365)
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
Net change in fund balances - - (9,365) (9,365)
FUND BALANCES:

Beginning of year (48,453) (48,453) (48,453) -
End of year $ (48,453) (48,453) $ (57,818) $ (9,365) $
Budgeted Amounts
87 City of Blue Lake, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual American Rescue Plan - COVID Relief Fund
For the year ended June 30, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental revenues $ 168,915 168,915 $ 148,915 $ $ (20,000) Investment earnings - - - -
Total revenues 168,915 168,915 148,915 (20,000)
EXPENDITURES:

Current:

General government 168,915 168,915 86,709 82,206
Capital outlay - - (8,615) 8,615
Total expenditures 168,915 168,915 95,324 73,591

REVENUES OVER (UNDER)
EXPENDITURES - - 53,591 53,591
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
Net change in fund balances - - 53,591 53,591
FUND BALANCES:

Beginning of year 43,469 43,469 43,469 -
End of year $ 43,469 43,469 $ 97,060 $ 53,591 $
Budgeted Amounts
88 City of Blue Lake, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual State Park Per Capita Program Fund
For the year ended June 30, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental revenues $ 168,178 168,178 $ - $ $ (168,178) Investment earnings - - - -
Total revenues 168,178 168,178 - (168,178)
EXPENDITURES:

Capital outlay 168,178 168,178 139,860 28,318
Total expenditures 168,178 168,178 139,860 28,318

REVENUES OVER (UNDER)
EXPENDITURES - - (139,860) (139,860)
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
Net change in fund balances - - (139,860) (139,860)
FUND BALANCES:

Beginning of year (9,707) (9,707) (9,707) -
End of year $ (9,707) (9,707) $ (149,567) $ (139,860) $ Budgeted Amounts
89 This page intentionally left blank.
90 7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE

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

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and City Council
of the City of Blue Lake
Blue Lake, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the businesstype activities, each major fund, the aggregate remaining fund information, and the budgetary comparison information of the City of Blue Lake, California (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated November 22, 2024.

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

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

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified.

Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be significant deficiencies. We did identify certain deficiencies in internal control, described in the separate Schedule of Findings and Responses as item 2022-1 that we consider to be a material weakness.

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

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

]]TVcT? \ÇvA
November 22, 2024 JJACPA, Inc.

Dublin, CA

CITY OF BLUE LAKE

COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE AND

COMMUNICATION OF INTERNAL CONTROL RELATED MATTERS
JUNE 30, 2023
7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com
November 22, 2024
City Council
City of Blue Lake
Blue Lake, California
We have audited the basic financial statements of the City of Blue Lake (City) as of and for the year ended June 30, 2023 and have issued our report thereon dated November 22, 2024. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated February 21, 2024, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.

However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit

We conducted our audit consistent with the planned scope and timing we previously communicated to you.

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

Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements.

There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during 2022-23. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments
The most sensitive accounting estimates affecting the financial statements are useful lives of capital assets (“useful lives”).

Management’s estimate of the useful lives is based on experience with and observation of capital assets, by category (e.g. infrastructure) as well as industry standards, when applicable (i.e. buildings).

We evaluated the key factors and assumptions used to develop the useful lives and determined that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.

Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to commitments and contingencies.

Significant Difficulties Encountered during the Audit
Although we ultimately received full cooperation of management and believe that we were given direct and unrestricted access to the City’s officials and senior management, we experienced significant difficulties in the performance of the audit owing to unreasonable delays by management in the overall audit process. These unreasonable delays, such as the delay of management’s review of the financial statements, significantly added to the time and related cost of the audit.

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

None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole or applicable opinion units.

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

Representations Requested from Management
We have requested certain written representations from management, which are included in an attached letter dated November 22, 2024.

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

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

Communication of Internal Control Related Matters
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

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

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be significant deficiencies. We did identify certain deficiencies in internal control, described in the accompanying Schedule of Findings and Responses as item 2023-001 that we consider to be a material weakness.

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

Very truly yours,
]ÉáxÑ{ ] TÜv{?VcT

JOSEPH J ARCH, CPA
President/CEO

JJACPA, INC
City of Blue Lake
Schedule of Findings and Responses
For the year ended June 30, 2023
Section I – Financial Statement Findings
Finding 2023-001
Material Weakness of Noncompliance with California Government Code – Filing Deadline Expiration
Criteria: California Government Code, Section 26909, (a) (2), requires Cities to file an annual audit of the accounts and records with the California State Controller within 12 months of the end of the fiscal year.

Condition: For the year ended June 30, 2023 the City of Blue Lake (City) did not file an annual audit of the accounts and records with the California State Controller within 12 months of the end of the fiscal year.

Cause: Management of the City has not implemented procedures to meet the filing requirements outlined in the California Government Code.

Effect: By not filing the appropriate reports with the State Controller, the City is in violation of the California Government Code. The information reported to the public and other government agencies is not timely or relevant to current City operations.

Recommendation: Management should file the audited financial statements for the year ended June 30, 2023 immediately. Additionally, the City should implement procedures for meeting the filing requirements outlined in the California Government Code in order to provide timely reporting for the fiscal year ended June 30, 2024.

Responsible Official’s Response: Management agrees with this finding and will submit the audited financial statements to the State Controller once they are approved by the Council. Moreover, management will develop and implement procedures to ensure timely financial reporting in the future.

Section II – Status of Prior Year Audit Findings
Finding 2022-001
See current year finding 2023-001

City Council Meeting Agenda Report
Item #: 7

Date: November 26, 2024

Item Subject: Battery Storage Project Presentation
Submitted By: Mandy Mager, City Manager
General Information:

In April of 2024, the City reclaimed control of the former Blue Lake Power Plant site; this property had been leased to Blue Lake Power for over 30 years. The property was reclaimed through a legal court proceeding, which essentially served as a tenant eviction.

For the last several years, the City has been planning for the eventual reclamation of the property, as well as acknowledging that the City would most likely be left with a large-scale clean-up obligation. The City has been estimating the clean up of the site to cost approximately $1 million and has been factoring this into ongoing development plans.

The City has undergone a large scale master planning exercise to identify development opportunities in the Powers Creek District, including the former plant site. The City received funding from EDA to conduct an economic analysis for the development of an RV park and campground, as well as other support economies.

Through this process, the City identified the opportunity to repurpose the existing transformer and substation on the power plant site for a battery storage project, and designed into the RV park and campground project the estimated footprint of this development.

The City has been working with Redwood Coast Energy Authority for several years to evaluate future options for the power plant infrastructure and has a signed MOU with RCEA to assist the City in attracting battery storage and other renewable projects to the site. The City has evaluated the installation of a large-scale solar project and it was deemed infeasible due to the cost of the installation and the fact that the installation would not be large enough to be economically feasible.

Recently, the City was approached by PowerTransitions regarding a battery storage project (BESS); the company is proposing to purchase six acres of the power plant property to install a two-phase BESS project. Phase 1 would include a 12MW BESS and the second phase would increase the project to a 100MW BESS. Under the proposal, PowerTransitions would appraise the City’s City of Blue Lake
property and using the value of the land and infrastructure, would reduce the purchase price by the cost to fully clean up the property, including removal of the existing plant infrastructure, buildings and fuel pile. The City would be paid the residual value of the land.

Cleaning up the site will allow the City to move forward with recreation development in the district and will lift the current liability associated with the existing plant and the environmental impacts associated with the continued degradation of the site.

The battery storage project is consistent with the zoning for the property and issues related to noise can be mitigated to meet the noise standards established for the zone and the eventual rezoning of the site. Environmental issues related to BESS projects include the potential for fire; the proposed BESS project would meet all NFPA and building code standards, including container suppression systems. PowerTransitions is proposing a Lithium Iron-Phosphate project; this is a newer technology and to date this technology has recorded zero fires associated with the systems.

Options to address concerns related to the sale of City-owned property include deed restricting the property to limit future development, as well as granting the City the right of first refusal to purchase the property in the event that the Company decides to sell. Future rezoning of the property could further protect the development potential of the property to ensure future development meets the objectives of the City.

A BESS project will allow the City to repurpose the existing power infrastructure, will clean-up the property for additional development and will allow the City to participate in meeting renewable energy goals for our region and community.

In order to provide information to the community regarding the project proposal, along with information regarding battery storage systems and their place in our regional renewable energy portfolio, Richard Engle from Redwood Coast Energy Authority will be in attendance to answer questions about battery storage, current and future energy procurement through RCEA, as well as the future of grid stabilization and energy resiliency.

Background Material Provided: PowerTransitions Presentation Fiscal Impact: N/A
Recommended Action: Presentation/Discussion
Review Information:

City Manager Review: ☒ Legal Review: ☐ Planner Review: ☐ Engineer: ☐ Comments:

STRICTLY CONFIDENTIAL & PROPRIETARY
NOVEMBER 12, 2024
Presentation to the City
of Blue Lake City Council
Redevelopment of
Blue Lake Power

STRICTLY CONFIDENTIAL & PROPRIETARY
I. About PowerTransitions
II. Our Development Proposal
III. Community Benefits
IV. Understanding Battery Storage
Agenda
STRICTLY CONFIDENTIAL & PROPRIETARY 3
Our Mission:
• Acquire and redevelop Retiring or Retired legacy power and industrial facilities in the U.S.
• Restore local communities with
• tax basis restoration,
• site cleanup,
• jobs
• Clean these sites aesthetically and environmentally.

We take the Costs, Risks, and Liabilities to ready legacy facilities for renewables
• Invest our capital to create utility-scale renewable
power solutions and, where appropriate, ready these
facilities for other next-best use
PowerTransitions Restores Tax Basis for Communities by Investing its Capital to Transition Retired Facilities to its Next Best Use
About Us

STRICTLY CONFIDENTIAL & PROPRIETARY
Who We Are – Select History of PowerTransitions
Deep Power, Environmental & Brownfield Redevelopment Expertise S&S Deconstruction
Brownfield Redevelopments
Key Project: Managed Liabilities for
Southeast Texas Natural Gas & Renewable
Generation Portfolio
Key Project: ELT Acquisition of State Line
Generating Plant
2009-2015
Formation of Redevelopment
Capital Partners
Key Project: ELT Acquisition of Westrock
Coshocton Paper Mill
Key Project: Cromby Power Facility acquired,
managed & sold to 98six°
Mar 2023
Funding secured
Feb 2024
Redevelopment at Vermont Yankee
former nuclear plant site begins
Founded by
•$100bn+ & 150+ Years of Energy Transaction Experience, including Global Infrastructure Development
•100+ Global Utility-Scale Energy Projects
•$500m+ Environmental Liabilities Managed
•30+ Large-Scale Brownfield Redevelopment Power & Industrial Projects 2016-2023 2023-2024

STRICTLY CONFIDENTIAL & PROPRIETARY
Who We Are – EnCap Investments
• PowerTransitions is financially backed by EnCap
Investments L.P.
• EnCap is a leading Energy & Energy Transition growth
equity investment fund based in Houston, TX
o Storage and Renewables in Operation
and Construction
o Storage and Renewables in Late-Stage Development
o Active Investors
o Top-Tier Management Teams Backed
o LP Capital Commitments

1.9 GW
3 GW
350+
Midstream
4 Active Funds
~$8.7B of Capital
Commitments
Upstream
5 Active Funds
17 Total Funds
~$24.5B of Capital
Commitments
Energy
Transition
2 Active Funds
$1.7B of Capital
Commitments
275+
EnCap Energy Transition Leadership
Jim Hughes
Managing Partner
Relevant Experience:
• First Solar
• AEI Services
• Prisma Energy
• Enron
Tim Rebhorn
Managing Partner
Relevant Experience:
• Prisma Energy
• First Solar
• Quail Nuclear
• Resolutions Mgmt.

Shawn Cumberland
Managing Partner
Relevant Experience:
• Quinbrook
Infrastructure
• Arctas Capital
• Enron
Kellie Metcalf
Managing Partner
Relevant Experience:
• Pattern Energy
• Barclays Bank
• Fortis Bank
• Florida P&L
Active Energy Transition
Investments
Realized Energy Transition
Investments
$40B

STRICTLY CONFIDENTIAL & PROPRIETARY
Our goal is to work closely with the City and community stakeholders to clean up the biomass site, to build energy storage and enable community development Our Development Plan
Our plan -
Phase IA Development
 Demo and remediate the existing
biomass facility
 Develop 12.5MW battery storage
Phase IB Development
 Demo and remediate of the
remainder of the site
 Develop ~100MW battery storage
 Support co-development of public
projects
Site Cleanup Enabling
Battery Storage and Next
Use by the City of Blue Lake
Plant 1B Development
100 MW Battery Storage
Phase IA Development

12.5 MW Battery Storage
STRICTLY CONFIDENTIAL & PROPRIETARY 7
Community Benefits
$175m+
PowerTransitions
Investment in the Community
Redevelopment Benefits
✓ Property taxes for the community
✓ Safe environmental cleanup of the site
✓ Local employment
✓ Local goods and services
✓ Support local grid resiliency and stability
✓ Meetings with and support for local schools
and community organizations
✓ Education for the local community on
sustainable energy
Powering Progress
Empowering Community

STRICTLY CONFIDENTIAL & PROPRIETARY
Working together with CAISO on a fast-track process is a critical step to bring the project quickly to fruition Our redevelopment team will work together with the City to implement the development projects for the benefit of all stakeholders Project Timeline
Not to scale. For illustrative purposes
2026 2027
Completion of
Biomass Demo
Confirm Fast Track
Process with CAISO
&
Exercise the
Purchase Option
Start
Construction of
Phase IA BESS
Start
Operation of
Phase IA BESS
Start Interconnection
Process for Phase IB
BESS with CAISO
Start
Operation of
Phase IB BESS
Sign Offtake
with RCEA
2025
2028-2032
Start
Construction of
Phase IB BESS

STRICTLY CONFIDENTIAL & PROPRIETARY
What is Battery Storage
Think of Grid Storage as Your Phone Battery, But Bigger • Same basic technology as personal devices
• Captures electricity for use when needed
• Provides backup power and grid reliability
System Components
• Batteries and racks
• Inverters (DC to AC conversion)
• Monitoring equipment
• Safety systems
• Protective enclosures
Key Benefits
• Zero emissions
• No moving parts
• Enhances grid reliability
• Supports clean energy integration
• Reduces power outages

STRICTLY CONFIDENTIAL & PROPRIETARY
Battery Storage Lifecycle
Development Management:

Supplier Code of Conduct &
Supply Chain Protocol
Human Rights and Labor Rights:
• Our company's Supplier Code of Conduct
mandates respect for human rights and
adherence to fundamental labor rights
Anti-Corruption
• Suppliers must comply with all anti-corruption
laws
Traceability and Sustainability
• Our Supply Chain Protocol requires traceability
of raw materials to ensure:
• Social, environmental, and quality standards
are upheld
• Compliance with U.S. laws
• Customs clearance for all equipment and
components
End-of-Life Management:

Reuse and Recycle Protocol
Repurposing for Second-Life Applications
• Batteries with residual capacity can be used for less demanding applications
Recycling
• Valuable metals like lithium, cobalt, nickel, and
manganese are recovered by specialized facilities for
recycling
• Recovered materials can be used to produce new
batteries, reducing environmental impact
Safe Disposal of Non-Recyclable Components
• Prevents environmental contamination from toxic
substances
STRICTLY CONFIDENTIAL & PROPRIETARY 11
Fire Protection and Safety
Ensuring safety of the community is our top priority
• This is why we’re focused on lithium iron phosphate (LFP) technology • LFP is a significant evolution in energy storage relative to prior lithium-ion batteries in safety and performance • No fire incidents associated with LFP energy storage facilities • Our team will work closely with the Blue Lake Volunteer Fire Department and other community stakeholders to:
• design the safest layout
• ensure superior equipment supply and operational excellence Underwriters Laboratories (UL) 9540/A "Standard for Safety of Energy Storage Systems and Equipment“ National Fire Protection Association 855
UL 1973 (battery) and UL 1741 (inverter) standards
National Electric Code 705 has expanded and applies to power-production systems connected to the electrical grid.

California Building Standards Code contains a wide range of valuable information for connecting electrical equipment including batteries.

The California Fire Code and California Electrical Code are important for the installation and operation of energy storage technologies.

STRICTLY CONFIDENTIAL & PROPRIETARY
Questions?
Powering Progress
Empowering Community

STRICTLY CONFIDENTIAL
Reconnecting Energy Communities for a Sustainable Future Thank You
www.power-transitons.com

City Council Meeting Agenda Report
Item #: 8

Date: November 26, 2024

Item Subject: City of Blue Lake Draft Housing Element Presentation Submitted By: Mandy Mager, City Manager
General Information:

The City Planner, Garry Rees, will present the final draft of the City of Blue Lake Housing Element, along with the accompanying CEQA analysis. On November 18, 2024, City staff presented the final draft housing element to the Planning Commission, including the draft CEQA analysis, at which time the Planning Commission made a formal recommendation for adoption to the City Council.

Staff is proposing to present the final drafts for the Council and community’s review and will be seeking adoption of the document at the Council meeting on December 10, 2024. The process of updating the housing element has taken over three years and has included numerous community meetings, town hall presentations, as well as direct outreach to local resource agencies and individual meetings to address community member concerns.

The City has received State funding to complete the update and adoption process, and the final adoption will achieve compliance with State mandates.

Background Material Provided: City Planner Staff Report-The Draft Housing Element and the CEQA document is available at City Hall and on the City’s website.

Fiscal Impact: N/A
Recommended Action: Receive the presentation and add the adoption of the Housing Element to the December 10, 2024 Council Meeting.

Review Information:

City Manager Review: ☒ Legal Review: ☐ Planner Review: ☒ Engineer: ☐ Comments:

City of Blue Lake
1 November 26, 2024
TO: Blue Lake City Council
FROM: Garry Rees, City Planner
RE: Agenda Item 8 – Discussion: City of Blue Lake Housing Element Presentation State law requires cities in Humboldt County to update their General Plan Housing Elements approximately every 8 years, which is referred to as a Housing Element planning cycle. The current cycle is for the 2019 - 2027 planning period (6th cycle). The City received funding from the California Department of Housing and Community Development (HCD) through the Local Early Action Planning (LEAP) and Regional Early Action Planning (REAP) grant programs to update its Housing Element for the 6th cycle to achieve compliance with State housing law. Since receipt of the first grant funds in 2021, City staff has worked with the Planning Commission on updating the General Plan Housing Element, which has included discussions at numerous Commission meetings, several public hearings, interviews with community stakeholders, and presentations at two town hall meetings. The current draft of the Housing Element Update is available on the City’s website at the following link:
https://bluelake.ca.gov/city-council/general-plan/
The Draft Housing Element Update includes an analysis required by State law related to: 1) a review of past accomplishments under the last Housing Element update adopted by the City; 2) existing demographics and housing characteristics; 3) land, financial, and administrative resources available to meet housing demand; and 4) market, government, and environmental constraints.

The Humboldt County Association of Governments (HCOAG), a regional planning agency, is responsible for allocating the Regional Housing Need Assessment (RHNA) to individual jurisdictions within the County. The RHNA is distributed by income category. The City of Blue Lake has been allocated a RHNA of 23 dwelling units (7 very low, 4 low, 5 moderate, and 7 above moderate income units) for the 2019-2017 planning period (6th cycle). The City also has a carryover of 11 dwelling units from the 2014-2019 planning period (5th cycle). Therefore, the City must plan for both its 5th and 6th cycle RHNA in the 6th cycle Housing Element. The Housing Element Update itself does not create physical residential growth in the City. The City must ensure the availability of residential sites at adequate

CITY OF BLUE LAKE
Post Office Box 458 • 111 Greenwood Road • Blue Lake, CA 95525 Phone 707.668.5655 Fax 707.668.5916
2 densities and appropriate development standards to accommodate the RHNA. The Draft Housing Element Update identifies available sites for residential development during the 2019 - 2027 planning period (6th cycle), which exceeds the City’s RHNA allocation, including sites located within the Powers Creek District.

The Draft Housing Element Update also includes programs that propose amending the City’s Zoning Code for the following reasons: 1) to ensure consistency with current State housing law; 2) to create a Multi-Family Combining Zone that would allow multi-family projects without discretionary review or by-right at a density of 16 units per acre; 3) to remove potential constraints to the development of multi-family housing; 4) to comply with the requirements for objective design standards in Government Code Section 65589.5, subdivision (f); and 5) to minimize the potential for confusion regarding the applicability of the City’s design guidelines.

On September 20, 2023, the City received a determination letter from HCD reporting the results of their review of the City’s 6th cycle Draft Housing Element Update (see Attachment 1). The letter concluded that the revised draft element meets the statutory requirements of State Housing Element law, with the following exception:
“Generally, pursuant to Government Code section 65584.09, if a city did not make available sites to accommodate the regional housing need allocation (RHNA), then the city shall, within the first year of the planning period of the new element, rezone adequate sites to accommodate the unaccommodated portion of the RHNA from the prior planning period. The City has an unaccommodated need from the prior planning period (Table 20).

Since more than a year has lapsed from the beginning of the current planning period, the element cannot be found in compliance until the required rezoning is complete.

Specifically, the element cannot be found in compliance until Program HI-14 (Rezoning and By Right Procedures) is implemented to meet the unaccommodated need from the 5th cycle RHNA. Once the rezoning has been completed, the City should submit documentation (e.g., resolution, ordinance) to HCD and HCD will review and approve the element in accordance with Government Code section 65585.”
Additionally, pursuant to Government Code Section 65583.3, the HCD review letter stated that the City must submit an electronic sites inventory with its adopted Housing Element.

This is similar to the sites inventory contained in the element update but must be provided in the electronic form required by HCD after the City has adopted its element.

After receiving the review letter from HCD instructing the City to move forward with adoption of its Draft Housing Element Update, City staff prepared a California Environmental Quality Act (CEQA) Initial Study (IS) for the element update. As discussed in the Draft IS, the project description analyzed in the document is the updated policies and programs proposed by the Housing Element Update. As concluded in the Draft IS, it is found that the Housing Element Update would not have a significant effect on the environment. Therefore, it is recommended by City staff that a Negative Declaration is the appropriate CEQA determination for adoption of the Housing Element Update. 3 As required by CEQA Guidelines Sections 15073(d) and 15105(b), the CEQA document prepared for the project was sent to the State Clearinghouse (SCH#: 2024091022) for a 30- day circulation period. The circulation period began on 9/26/24 and ended on 10/27/24.

As required by CEQA Guidelines Section 15072(a), a ‘Notice of Intent to Adopt a Negative Declaration’ was submitted to the State Clearinghouse, posted in 3 public places in the city, and filed with the County Clerk-Recorder’s Office prior to the beginning of the circulation period. The CEQA document was also posted on the City’s website prior to the beginning of the circulation period. Comments that have been received on the Draft IS to date are included as Attachment 2 to this staff report. Based on the comments received, minor revisions were made to the Draft IS. Additions made to the Draft IS are shown in underlined and bolded text and deletions are shown with strikethroughs. The revised Draft IS (dated November 2024) is available on the City’s website at the link provided above for the Draft Housing Element Update.

With HCD determining that the Draft Housing Element Update is ready for adoption and the CEQA document being circulated for public comment, the next step in the process was for the Planning Commission to make a recommendation to the City Council regarding adoption of the element update. At their regularly scheduled meeting on November 18th, the Planning Commission held a public hearing and adopted Resolution No. 2-2024, which contains the Planning Commission’s recommendation to adopt the element update and a CEQA Negative Declaration (see Attachment 3). Now that the Planning Commission has made a recommendation to the City Council, the next step is for a public hearing to be held by the City Council to review the recommendation from the Planning Commission and consider adoption of the CEQA Negative Declaration and Housing Element Update. The public hearing before the City Council is proposed to be scheduled for the special meeting on December 10, 2024.

This item has been included on the agenda for this meeting as a discussion item, to provide the City Council the opportunity to review the Draft Housing Element Update, receive public comment, and ask questions of staff prior to the public hearing on December 10th.

For additional information about the Housing Element Update process, attached is a presentation given to the Planning Commission at their November 18th meeting that will also be given to the City Council at the November 26th meeting (see Attachment 4).

RECOMMENDATION:
1) Receive a presentation from City staff on the City’s Draft General Plan Housing Element Update and CEQA Negative Declaration.
2) Open the item for public testimony.
3) Close the item for public testimony.
4) Discuss the Draft General Plan Housing Element Update and ask questions of City staff.

Attachment 1
California Department of Housing and Community Development Review Letter for City of Blue Lake’s 6th Cycle (2019-2027) Revised Draft Housing Element
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
September 20, 2023
Amanda Mager, City Manager
City of Blue Lake
PO Box 458
Blue Lake, CA 95525
Dear Amanda Mager:

RE: City of Blue Lake’s 6th Cycle (2019-2027) Revised Draft Housing Element Thank you for submitting the City of Blue Lake’s (City) revised draft housing element received for review on August 28, 2023. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review.

The revised draft element meets the statutory requirements of State Housing Element Law, including as described in HCD’s August 29, 2022 review. However, the housing element cannot be found in substantial compliance until the City has completed necessary rezones as described below. The housing element will substantially comply with State Housing Element Law (Gov. Code, § 65580 et seq.) when the necessary rezoning is complete and the element is adopted, submitted to, and approved by HCD, in accordance with Government Code section 65585.

Generally, pursuant to Government Code section 65584.09, if a city did not make available sites to accommodate the regional housing need allocation (RHNA), then the city shall, within the first year of the planning period of the new element, rezone adequate sites to accommodate the unaccommodated portion of the RHNA from the prior planning period. The City has an unaccommodated need from the prior planning period (Table 20). Since more than a year has lapsed from the beginning of the current planning period, the element cannot be found in compliance until the required rezoning is complete. Specifically, the element cannot be found in compliance until Program HI14 (Rezoning and By Right Procedures) is implemented to meet the unaccommodated need from the 5th cycle RHNA. Once the rezoning has been completed, the City should submit documentation (e.g., resolution, ordinance) to HCD and HCD will review and approve the element in accordance with Government Code section 65585.

Amanda Mager, City Manager

As a reminder, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing element. The City must utilize standards, forms, and definitions adopted by HCD. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-and-community-development/housingelements for a copy of the form and instructions. The City can reach out to HCD at [email protected] for technical assistance.

Public participation in the development, adoption and implementation of the housing element is to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.

For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources.

HCD appreciates the hard work, cooperation, and responsiveness the City’s housing element team provided throughout the housing element review and update. If HCD can provide assistance in implementing the housing element, please contact Andrea Grant, of our staff, at [email protected].

Sincerely,
Paul McDougall
Senior Program Manager
Attachment 2
Comments Received on the Draft CEQA Negative Declaration for the Blue Lake General Plan Housing Element Update
 











  !"##$
%&&'
()#&&'*'+,-&,)#./01 23+
4564768589
45:55
;< =>"&#?
@&ABA
<.*C"&#D"#B'
(@&ABA.<.>"&#*C"&#D"#B'./".)E1
 </F")+A,?
G&'&$
%.*C"&#D"#B'
(G&'&$.</F")+A,*C"&#D"#B'./".)E1H
/A$0",")&#*D&"&./".)E (/A$0",")&#*D&"&./".)E1H F&",,"
>#+&#,
(D#+&#,*'+,-&,)#./01 8
""/+0&,'
I9
<>J
KA)#&
LMN"/",
O"#/&'
<"PM@Q
RPB"&
S&)
T&/.PBUH
!&3#"/&#->F
FRV3
W&",P
VA&'.PBUH XYZ[Z\ ]^_`a
bcd
ecf
bcdf
gchhY`ij
c`
i^Y
klmn
oYp_qrY
sYgt_f_qc`
ecf
i^Y
utdY
v_aY
XcdjZ`p
ltYhY`i wx[_iYy

nz_g^Y[
Zj
i^Y
r_g_`i
x_fgYtj
h_x
{|ZpdfY
}~
Z`gtd[Y[
c`
x_pY

ce
i^Y
oYp_qrY
sYgt_f_qc`
xfYx_fY[ ecf
i^Y
XcdjZ`p
ltYhY`i
wx[_iYy
]^Zj
h_x
j^c€j
i^Y
x_fgYtj
i^_i
_fY
Z`gtd[Y[
Z`
i^Y
jZiY
Z`rY`icfb
ce i^Y
XcdjZ`p
ltYhY`i
wx[_iY
_`[
_fY
xfcYgiY[
ic
‚Y
tZaYtb
[YrYtcx_‚tY
ecf
fYjZ[Y`q_t
djYjy
ntjc _z_g^Y[
Zj
_
h_x
efch
i^Y
ƒYcif_gaYf
€Y‚jZiY
j^c€Z`p
i^Y
tY_aZ`p
d`[Yfpfcd`[
jicf_pY
i_`a
{vw„]~ gtY_`dx
jZiYj
Z`
i^Y
kZib
ce
utdY
v_aYy
]c
gt_fZeb
_`[
_j
Z`[Zg_iY[
c`
i^Y
_z_g^Y[
h_xj\
`c`Y
ce
i^Y r_g_`i
x_fgYtj
j^c€`
c`
|ZpdfY
}
_fY
jZiYj
i^_i
_fY
tZjiY[
_j
^_
_f[cdj
h_iYfZ_tj
jZiYj
i^_i
_fY
d`[Yf
i^Y crYfjZp^i
ce
i^Y
ocfi^
kc_ji
†YpZc`_t
‡_iYf
md_tZib
kc`ifct
uc_f[y
]^YfYecfY\
i^Y
kZibˆj
XcdjZ`p
ltYhY`i
wx[_iY
Zj
`ci
xt_``Z`p
ecf
fYjZ[Y`q_t
[YrYtcxhY`i
c`
i^Y
vw„] gtY_`dx
jZiYj
Z`
i^Y
kZiby

]^_`ajy ‰Š‹‹Œ
ŽŽ
‘’“”
•fZ`gZx_t
•t_``Yf kZrZt
l`pZ`YYfZ`p\
l`rZfc`hY`i_t
„YfrZgYj\ ƒYcjgZY`gYj\
•t_``Z`p
–
•YfhZ—`p\
„dfrYbZ`p €€€yj^`˜Y`pfygch ™š›
‡
‡_‚_j^
nrY\

ldfYa_\
kn

œžš {ŸžŸ~
š˜™™

¡‹¢£¤
u_dYf\
XYZ[Z
¥y¦‡_iYf‚c_f[j
§XYZ[Zy¥yu_dYf¦‡_iYf‚c_f[jyg_ypcr¨ ©Žª«¤
¥c`[_b\
„YxiYh‚Yf
}ž\
›ž›
›¬›œ
•¥
­®¯­°¯±²³
­®´®®
µ¶¶·¸¹
º
»·¼¼½
¾¿¿À
º
ÁÂùÄÄÅ
ÆÃÃÇÀ´¯¯ÄÂùÄÄÅÈÄÉɸʿÈÊÄ˯˷¸¹¯¸ÌÍÄί¸Ï¯µµÐŵÑÒÅÓÔµ±ÕѹËÖ×ØÙÓÔÅÃÕÑÚÛÚÜ®ÝÕ»Þ¹Ö׶®Ó×رÕ×Ø­¶Ô¹ËÕееÖÊÒ߶Ä۱زàËÅáÃÓßÊøÃÅâ­¯± 


 

  

 
 


 





  




 

 

 
! 



 "#$ %&''( )**+ ,-'**+.+/01*0-'23456 78$ 93:&;-/<=0> ?*<+*( )2.@&A*'B4&'C+ ,?*<+*(293:&;-/<=0.@&A*'B4&'C+23&2-4D6 EFGHI8J$ KL)@MLN 3455*0A 40 N<;* :&O* P4;+=0- Q<*5*0A

 R S
T ! U
! 
 V
 W X Y
 



 

 V
  X Y
 Z[\]^Z[Z_ `

 a b c
Ud  

 
 e

 f  g
_h ^_i 
  





 








T 
  
 j
  
 U


   
T 
 k
V
 S
 l m
 V X l

 









T 
  
 !

 








  

 
 !


  !



n


 f

 




!

 










T 
 




jU 





 



 
j  j 
  


 U !

 

U


 n 

 o
T
  





U

  
!

p
   

  


q
U  




j

 
 




 


  jU


 U
T  !

 
 
 




 
 


 
 U
 


j



 

 


T 

 
  

 
 !

  




l 

U  
 `

 a  
 V
  X Y
T j 
  
 


 

 !
 j 



   U 

 


 


 


 
 
  








  


 g
  
!
 
U  p


 ! 

  







X
T `

rstut vw xyzs{| }w~w s€t{ ‚€ƒt€ss{t€ƒ ~s„ƒt
† t†s ‡„sy€zˆ
‰€t† zˆs{Št
{ ‹{†Œ ‡y
† sƒt€y„ Žy†s{ zy„t† ‡€†{„ xy{u ‘‘‘’ “„y€s x„Šuw zt†s ” y€†y  y• ‡”w –‘—’˜ Œstutw™wšyzs{›œy†s{šy{u
wywƒŠ žŸ ts¡ ¢£’£¤ ‘£’¥˜£¦–

\[n\_nZhT \[§[[ ¨©©
 ^ R S
^ W


§nn



n
n
jqn
n¨¨m
¨
o
ª
¨Zk
Yla!ª

k
««f[¬kR­Yl©[ªlaZkla\©
km¨m¨Y
oV©ZahX
®ªV


¯ZnZ
6 | Page
0 •• ········ .. • •
1,200
l "= 1,200'±
• •
February 2022
City of Blue Lake
Housing Element Update
Blue Lake, California
Figu re3 _ VacantParcelsRZone

EXPLANATION
•• ■ ■ ■ ■
■ : CITY LIMITS •• ■ ■ ■•

VACANT PARCELS
C:J LIKELY DEVELOPABLE
~ QUESTIONABLY DEVELOPABLE
1111 LIKELY NOT DEVELOPABLE
Vacant Parcels with
Residential & Mixed Use Zoning
SHN 021022.001
Figure 3
 



 




 



(./012345106157/28  !"#$%&'!$ ./012345109:;;1/<< )*

  =>
?

> @

 +,
-
BCDCEFG,*HHIJHJI
JI A
K-I,
IGJHLJ ,
M


IGJHLJ 
,
IGJHLJ 
MNOIGJHLJ 
-IIGJHLJ I
P,

I
QRSTUCVQWRXUCYQDCZ[ \
]G^_GJHLJ II
?
` ab

Ic HIdb,

IefI?ghi
> jkj
 






















! "

#$%%&
'(()
*+%((),)-./(.+%0123 
4-
567587969:
;<6=
>? @
AB$.(
*AB$.(,).B10.(3 CD($..$
E%-(%.
*F%-(%.,)-./(.+%0123 GH

IHJKL M
KN
OKPQ
HR
STU
VWPU
XYVN
ZKPK[VR
KR\
KN
]U^R]
STYV_]T
N`
UNKHaJb
cdVaV]HUJ
XVY
STU
\UaK`U\ YUJdVRJUb eTU
P_YYURS
\YKf
VX
STU
GV_JHR]
gaUNURS
hd\KSU
i\KSU\
jUOb
klkmn
HJ
KZKHaKOaU
VR
STU
oHS`pJ
qUOJHSU
KS STU
XVaaVqHR]
aHRQr TsdJrttOa_UaKQUbPKb]VZtqduPVRSURSt_daVK\Jtklkmtlvtlklwklkmuxa_UIKQUuySTo`PaUu GV_JHR]gaUNURShd\KSUbd\X xUaVq HJ
K
YUJdVRJU
SV
STU
z_UJ[VRJ
HR
`V_Y
wltw{tkm
UNKHar 50
|.
-(
B.}%2$B.
((%
B
)$&)
-$
~4-(
A$(
BA(.B}B()
-(
(.B$
}%
A(€(2(.
}


=
.(‚ -)B.+
$
}
FBA
}
-(
ƒB&„)
(
B)B.+
€$1$.

B.€(.%&0~

E&
~ƒB&„)~
(
B)B.+

B.€(.%&//A()
-$ $&

†)
-(
ƒB&/‚.(A
%(%&
.
4$&%
‡$&
%
(2&
)
-%+-
-(
‚.ˆ
|
%(1$
$
2$
)-‚B.+
$ 
B.€(.%&
-%+-
-(
‚.//$%(
-)(
-(
)
$€$B$F(
‰Š‹
B)
-$
2$
1%%(.ˆ

eTU
UŒHJ[R]
ZKPKRS
aVS
HRZURSVY`
HJ
aHJSU\
HR
eKOaU
kw
iMRZURSVY`
VX
KPKRS
IKR\
cZKHaKOaU
XVY
ŽUJH\UR[Ka UZUaVdNURSn
KR\
JTVqR
VR
jH]_YU
w
iKPKRS
HSU
MRZURSVY`n
HR
STU
GV_JHR]
gaUNURS
hd\KSU
i\KSU\
jUOb klkmnb
eTU
UŒHJ[R]
ZKPKRS
aVS
HRZURSVY`
HRPa_\UJ
OVST
d_OaHPa`
KR\
dYHZKSUa`
VqRU\
dYVdUY[UJ
HR
STU oHS`b

90 >($)(
($F%$(
.
‚-$
~}
FBA/
2($.)~0

Š2F(%
}
)%B()7-(B+-0000(10

‘TUR
STU
SUYN
’X_aa
O_Ha\uV_S’
HJ
_JU\L
HS
HJ
YUXUYYHR]
SV
STU
R_NOUY
VX
YUJH\UR[Ka
_RHSJ
STKS
KYU dYV“UPSU\
SV
VPP_Y
VR
STU
ZKPKRS
KR\
aHQUa`
\UZUaVdKOaU
JHSUJ
H\UR[”U\
HR
STU
oHS`pJ
GV_JHR]
gaUNURS hd\KSUb
MR
STU
GV_JHR]
gaUNURS
hd\KSUL
HS
HJ
dYV“UPSU\
STKS
•v
_RHSJ
PV_a\
VPP_Y
VR
STU
ZKPKRS
KR\
aHQUa` \UZUaVdKOaU
JHSUJ
HR
STU
oHS`b
eTU
R_NOUY
VX
JSVYHUJtTUH]TS
HJ
\UdUR\URS
VR
STU
\UZUaVdNURS
JSKR\KY\J XVY
UKPT
–VRU
STKS
STUJU
JHSUJ
KYU
aVPKSU\
HRL
qTHPT
ZKYHUJ
O`
–VRUb
eTU
NKŒHN_N
TUH]TS
KaaVqU\
HR
STU –VRUJ
PVRSKHRHR]
JHSUJ
H\UR[”U\
KJ
ZKPKRS
KR\
aHQUa`
\UZUaVdKOaU
S`dHPKaa`
YKR]UJ
XYVN
{—um—
XUUSb eTKRQJb ˜™šš›
œžŸ
¡¢£ ¤YHRPHdKa
¤aKRRUY
¥¦§¥¨§©ª«
¥¥¬­®
¯°°±²³
´
µ±¶¶·
¸¹¹º
´
»¼½³¾¾¿
À½½Áº¬§§¾¼½³¾¾¿Â¾ÃòĹÂľŧű²³§²Æ§¯¯Ç¿¯ÈÉ¿Ê˯©ÌȳÅÍÎÏÐÊË¿½ÌÈÑÒÑÓ¦Ô̵ճÍΰ¦ÊÎÏ©ÌÎÏ¥°Ë³ÅÌǯǯÖ×ØÙÚ·Ã¥Ó¸Û²Ú¿²Ñ¹ÜÆÅʺݭȥ§© 


 

  

 
 


 





  




 

 

 
! 




"#$#% &'(#'))*#'(+ &'$#*,'-)'./% 0)*$#1)2+ 3),21#)'1)2+ 4%/''#'( 5 4)*-#6'(+ 07*$)8#'( 999:2;'<)'(*:1,- =>? @ @/A/2; B$)+ &7*)C/+ "B DEEF> GHFHI JJ><==EE KLMNO %P#/') Q%P#/')R2,'#1:').S TUVWO 07'P/8+ X1.,A)* >Y+ ?F?J HZ?D B[ \MO 3/**8 ]))2 Q(*))2R2;'<)'(*:1,-S T^_`UaWO b9PZ c,d1) ,e f'.)'. e,* / c)(/d$) g)1%/*/d,'hi,72#'( &%)-)'.he,%%,9<7j

klmmn opqqrs
tnumv pwwqlxypzl {lpqy|} ~px n| z{l €ulzyn| ~lmn‚ƒ t{l| „ qlzuq| „ xnumv x{lvuml p llzy|} y† z{pz ‚numv ~l ~lzzlqƒ ‡lz
l |n‚ƒ ˆmn ˆ|pmy l|z z{l my| zn z{l knuy|} ‰ml
l|z rlz yz ‚p vpzlv n
l
n|z{ p}nŠŠwmlpl mlz
l |n‚ y† ‚{pz y n|my|l „‹ z{l
nz xuqql|z Œlqyn|ƒ {p| rnuƒ ‡yp knnŒlq

ŠŠŠŠŠŠŠŠ Žqy}y|pm lp}l ŠŠŠŠŠŠŠŠ ‘’“”•–—˜nzyxl n† „|zl|z †nq p ˜l}pzyŒl ™lxmpqpzyn|šknuy|} ‰ml l|z ›œ–”—žŸŠ žŠžŸ  ¡¢£¤ ¥¦§¨—mvyp|l ©mvyp|lªn|yxƒ|lz« ¬§—}qllª{|Šl|}qƒxn klmmn opqqrs
„ p‚ z{y yzl
n| z{l ­mul ‡pl tl~wp}lƒ „ z{l l|Œyqn|
l|zpm vnxu
l|z pnxypzlv ‚yz{ z{y wnzlv n| z{l ‚l~ wp}l® „† |nzs ‚numv rnu wmlpl {pŒl z{l ¯yzr wnz z{l vnxu l|z ˆ˜™ wmlpl mlz
l |n‚ ‚{l| z{y zpl wmpxlƒ °ulzyn|¢ „| z{l y|†nq
pzyn| mlzzlq yz pr z{pz ±{l uwvpzl yvl|zy†yl z{l wnzl|zypm †nq vlŒlmnw l|z n† uw zn ²¤ |l‚ {nuy|} pz †umm ~uymvnuz n† z{l ¯yzr³ l´yzy|} Œpxp|z mnz y|Œl|znqrƒ± ­r ±¯yzr³± l´yzy|} mnz y|Œl|znqrŠŠvnl z{pz pwwmr zn µuz z{l ¯yzrŠn‚|lv wqnwlqzr n| prmnq tpr nq l wzr mnz z{qnu}{nuz z{l zn‚|® „ qlxpmm p
pw
{n‚y|} p mnz y|Œl|znqr z{qnu}{nuz z{l zn‚|ŠŠpql z{nl z{l mnz pŒpymp~ml ˆ˜™ y z{pz pw xuqql|z® ¶mlpl lmp~nqpzl n| ‚{pz ±†umm ~uymvŠnuz
lp|±ƒ ˜u
~lq n† znqyl·{ly}{zƒƒƒƒlzxƒ „ ‚numv x{lvuml p
llzy|} ‚yz{ rnu ~uz ‚ymm |nz ~l y| zn‚| †nq p xnuwml n† ‚ll n ‚p|zlv zn ll y† p p zpqzs p| l pym l´x{p|}l
y}{z ‚nqƒ {p| rnuƒ ‡yp knnŒlq
¸¹º¸»º¼½¾ ¸¸¿ÀÁ ÂÃÃ
 Ä Å Æ
Ä Ç


¿ºº



º
º
ºÂÂÈ
Â
É
Ê
¼Ë
ÌÍÎ!Ê

Ë
ÏÏйÑËÅÒÌÍùÊÍμËÍθÃ
ËÈÂÈÂÓÔÕÖ× ¸ÐÆØ
×

ÏÙÊ
ÚÀ
¼º¼



 

  

 
 


 





  




 

 

 
! 




"#$%&&' ()* +,-. /0 123) 456) 7/38,9: ;2)<)9- =):5-,>) ?)@ AB/<CDEEF GHHI JKEHHILIMNOHNKEPQ&RS ?5-)T&N UVWXYWXVXZ [\]U ^T _/`HN$ aDbD$c'F J'HN$IDbD$c'FLM&$RDd%PQ&RS +@^ND%d C&NcD%Hc JDeRdNDII$Lf%#H%D'HPQDPK&gS hijkl mnjopqrjs pitiruk nv wnxp tnqqijkyz {|iw }r~~ i upn€ri kn k|i ‚~ƒjjrjs mnqqryyrnj ƒk k|irp qii„js knjrs|kz †‡‡ˆ ‰ŠŠ‹Œ Ž
‘’“”•“–—˜ ‘˜—””™’ š“›“˜ œ”“”™™’“”ž œ”›“’Ÿ” ™”¡—˜ ¢™’›“•™£ž ¤™Ÿ£•“™”•™£ž ‘˜—””“” ¥ ‘™’ “¦”ž ¢§’›™¨“” ©©©ª«¬­®¯­°±ª²³´ µ¶· ¸ ¸—¹—£º »›™ž œ§’™¼—ž š» ½¾¾¿¶ ÀÁ¿Á Ãöĵµ¾¾ ÅÆÇÈÉ hijk ʃ}ƒkËÌw ÍÌijkyƒ}ƒkËÌwÎ|nkqƒr~ztnqÏ ÐÑÒÓÉ Ônjƒwl Õtknip Ö×l ÖØÖÙ ×ÚÛ× ÜÔ ÝÇÉ Þƒppw ßiiy ÍspiiyÎy|jàijspztnqÏ ÐáâãÑäÓÉ å}Ú mrkw nv æ~xi çƒÌi ènxyrjs é~iqijk êisƒ„€i ëit

Þnn qnpjrjs ރppwl ‚~iƒyi rjt~xi k|ry ƒk knjrs|kìy æ~xi çƒÌi ‚m qii„jsz ‚~iƒyi tnjopq pitiruk nv k|ry piíxiykz hijk ʃ}ƒkËÌw ÅÆÇÈÉ hijk ʃ}ƒkËÌw ÍÌijkyƒ}ƒkËÌwÎ|nkqƒr~ztnqÏ ÐÑÒÓÉ Ônjƒwl Õtknip Ö×l ÖØÖÙ ×ÚÛî ÜÔ ÝÇÉ Üjƒ~r Þnj˃~iË ÍƒqrjƒyykÎ~xi~ƒÌiztƒzsn€Ï ÐáâãÑäÓÉ å}Ú mrkw nv æ~xi çƒÌi ènxyrjs é~iqijk êisƒ„€i ëit Þnn qnpjrjsl Üjƒ~r
ïðñòóñòôõ ö÷ôø ù  





÷ññ

ñññ

ò
 !"


#$#%ðø
& ð
!ò
!ï

ø'
öï

(ö)%%ö
*+ö ïñô








  


 







  !"#$%&'
()
*+,-
./01 
1  2 
 

342
35


6
 7
358 9:  
2

 



 ;
<4=

>)
9
7 
?

0;/0  *+

 /




 0


,

)
)

@


A/



*+)
)/


 

*+ )
) 7
 

 2





,

)
1 
 B
'
2


  /



)
 0







)
*+ //7 C*? 


0 C


 


 
7




)
*+  0



0 

 7
348 9:  
2

 



 ;
=4D

)
*+E  ,-
F

G



/CH
 

 

, /





0I/ 
2
;





J H  
2


 
2


 *+)2
 
 //
 

@









 
  K



 /




//









 3=I/0=L



G


?/
7
,==

, =M7




)6




  I





)
 




C*+ 5

),E22
7
/  C I
NN I






0




I 

 



2 0

)


@  9;

=LCE,EN=)
,C ,N==2

 



2 

8 C>0

 
/
0








;/N


 
 

 


;/
0
2

 

2
0 
  
/C 
)



 




2





 / 
 




8H


0

N
  
/
*+
  2

;







  H
0 
/
*+;O
P


;Q
  2

 ; 
/
0




 

0
  7

 
,N==

,N=M
 





6  
/02C
*+ )C
 







 

0 )
RSTUVTUWXYZW[\]]^_`ab^ccdeffgahij`kkl
mjjngZTTkij`kklokpp_qfoqkrTr^_`T_sTttultvwlxytUzv`r{|}~xyljzv€S[zb‚`{|]Sx|}Uz|}R]y`rzututvn[ƒ`zYRfmz„Y cYyd†]‡YvUTW







 





 








!


"!#
$


"$

 
#







#
%

&

'
(#)
 )



 








 
#





 

&

)








 

$
%




*+ 
,*" 

$
% 


)
 
'
(#-


%./%&
 
-


%.
0

)
 
'
#

 "1

 
 -

 
'
(#,
%

!
.!*
&


$
%
+ 2



"
 3


&)
 
'
(#3 2

 "
435,
%&
")
 $
3 2

 "
637

%")
 $
3 
 
,
%





 
$
5,8" $


  "




$
 


9$

  









%

&



9 
-


%.




$
&57

%(

 
:.!* 
;


9$


# 
$'
 5,
-


%.


&

-


%.



#




 ).<9 

 )

&.0




 


).<9

$
%

 




&
!

%




 

).<9
&
" =,


%>!%




%
).<9
&

?



 ).<93!@30




 ).<9
$ "

 &

$,


",
%)


"
'
(#)
 )




&



$$

 .!*A
&%%
%&



&0

.

 
#
$

B 

B$


#

$

%





 .


$
C




%

 
 










&
$





,
%9
& $

5 *
B&

&
$





%$
).<9 
$
$


&

%&0

.




&

&
" 



  2 


%639  C
%





 



% D


$





).<93 2E


%F3:
&@







&
%  



;

3
GHIJKIJLMNOLPQRRSTUVWSXXYZ[[\V]^_U``a
b__c\OII`^_U``ad`eeTf[df`gIgSTUIThIiijaiklamniJokUgpqrsmna_oktutvHPoWwUpqRHmqrJoqrGRnUgojijikcPxUoNG[boyNzvvXNnY{R|NkNIL 






 
 




  ! 
" 

 
 


 
#


 $ %&
#



 '  '()


  

& %
 #
 

#( *
  
+,




 
 -. 
  "
 

# /



0  

 
 
  


12 3 "
  &



&40 #
 




  &

 


&

 
 &

#
 3
 
#( #

 
" 
   



 2 

 
 

&5
 6
" 71
 

#
89: 
&

 


;&
 



4/
 0 

;
 -. 
  "
 
+, < 
#4


  7
 
% 
 
   4 
  #

=


12

 


&4 > ?

"

@ABCDBCEFGHEIJKKLMNOPLQQRSTTUOVWXNYYZ
[XX\UHBBYWXNYYZ]Y^^M_T]_Y`B`LMNBMaBbbcZbdeZfgbChdN`ijklfgZXhdmnmoAIhPpNijKAfjkChjk@KgN`hcbcbd\IqNhG@T[hrGsooQGgRtKuGdEBE 1 Planning Commission Meeting/October 28, 2024
RE: Agenda Item 4. Discussion: General Plan Housing Element Update/Negative Declaration From: Lisa D. Hoover
The summary table in the Housing Element Update 2024 document, webpage. 43 (see clips 1 and clip 2 below), that includes of the Environmental Factors (e.g. biological resources, geology/soils, hazardous materials, transportation/traffic) potentially affected indicates that ALL impacts are “less than significant”, thus the determination is that the “proposed project COULD NOT have a significant impact on the environment and a negative declaration will be prepared”. A summary of the “Mandatory Findings of Significance” (webpage 129) reiterates “less than significant” perspective (see clip 3 below).

Yet, the evaluation of “less than significant” applied to all environmental factors is not in keeping with components of the housing element update or the Biological Resources Assessment of 2023 (the latter focused on the Taylor Way developments) that identifies mitigations that should be identified as a condition of approval. Following are clipped statements from the Housing Element:

Pg. 58 of the Housing Element Update states:

In none of the tables of the Housing Element Update that summarize potential environmental effects was a determination made consistent with “the potential to result in significant impacts…” (statement above). Why wasn’t the determination option, “Less than Significant with Mitigation Incorporated” applied to a particular action, when in fact, mitigations will be needed? Example, from Table 21 of the Housing Element update- “Inventory of Vacant Land Available for Residential Development” a multiplefamily housing density is assigned to a lot that has the following site constraints documented in the table: Lot shape, creek corridor, creek setback, riparian habitat, flood zone. In spite of these site constraints identified in the document, the Housing Element Update does not even acknowledge that mitigations would be needed related to the “Hydrology and Water Quality” element (webpage 88).

The need for mitigations is also supported in the Biological Resources Assessment (February 2023) for Taylor Way developments as well. The document states that recommendations to reduce potential direct and indirect adverse affects be included as a “condition of approval of the project”. Some examples:
2 - For direct and indirect impact to special-status bird species that could migrate into the study area or establish nest sites, species surveys should be done prior to any land disturbance, and appropriate mitigations applied.
- For potential indirect effects on water resources (streams and associated riparian habitats, riverine system) such as compromising surface water quality by sediment transport from disturbed soils or disturbed by release of hazardous materials as a result of construction.

These are examples of environmental effects that were assigned a “Less than Significant” determination in the Housing Element Update when they actually need mitigations incorporated to reduce negative impacts and should be documented as such.

Another environmental factor in the Housing Element Update relates to direct and indirect effects of the proposed housing element titled “Population and Housing” (see clip 4 below). This factor would apply to any future growth such as new homes and businesses, (including recreational development), specifically, cumulative effects of foreseeable future actions that may affect roads, traffic, and ingress/egress into and out of the town. The Housing Element states that this item is “Less Than Significant” but this is not substantiated nor has the Circulation Element of the General Plan been updated since 1986.

Related to the Housing Element’s Truck/Industrial Policy (webpage 113) and residential lot density it states:

Circulation Element - Truck/Industrial Policy: Policy 23. As long as the City uses the existing truck route, the City should consider minimizing potential densities for residential lots within one local street or one block of Greenwood Avenue.

Currently there is a multi-family development under construction within “one block”, west of Greenwood Avenue. This policy was not applied to this setting so that sheds doubt on whether other parcels on/proximal to Greenwood Avenue identified in the other vacant sites/underutilized sites Table 21 of the Draft Housing Element would be applied. Are these lots identified for multi-family developments? I would ask that the Planning Commission and Planning Staff revisit these elements of the General Plan Housing Element and pause on the intent to adopt a negative declaration until the “less than significant” determinations (examples above) are better substantiated and/or changed to include text related to the need for mitigations (“mitigations incorporated”). I would also ask for a pause on adoption in light of residential, business… developments currently discussed by the City as such developments will have cumulative effects on the “Population and Housing” and the “Circulation” elements included in the document as well as other environmental elements (e.g. biological resources, hydrology, hazardous materials). Related is the need to update the Circulation Element of the General Plan to factor in an analysis that incorporates the proposed developments (residential etc) and zone changes.

Respectfully submitted,
Lisa D. Hoover
3 1. From the Housing Element Update: webpage 43. Summary of Environmental Factors From the Housing Element Update: webpage 63, Biological Resources 4 3. From the Housing Element Update: Webpage 129, summary of Mandatory Findings of Significance

4. From the Housing Element Update: Webpage 103, Summary of the Population and Housing Element



 

  

 
 


 





  




 

 

 
! 




"#$%&&' ()* +,-./ 0123456 78)9)5/:;<-5;) /1 9))/ 1, ;15=),3) >,19%?@ABC D%?@ABCEF&B@GHBC$I +-/)JK# LLMLNMOPON QRNL ST U1VAWWX YCCF DZWCCFEFKB[CBZWHG&\I L A$$AGK\CB$ ]N^O _`a b&\\CB$FcS%ABB@BZ b&\\@FF@&B T$ZcLPcOdcONce&#F@BZ f%C\CB$H?&Ggh

eC%%& VAWWXi
j k#F$ WC$#WBC? $&?AX KAl@BZ mCCB &#$ &n $KC AWCA F@BGC T&B?AXH o@BGC j G&#%? B&$ \A'C X&#W &nn@GC K&#WF &B pC?BCF?AX j A\ q&B?CW@BZ @n X&# GAB WCFr&B? $& $KC n&%%&q@BZ s#CF$@&BF rW@&W $& T&B?AXtF S%ABB@BZ b&\\@FF@&B TCC$@BZ &B $KC Ld$Ku jtlC A$$AGKC? \X qW@$$CB G&\\CB$ F#m\@$$C? n&W $KC %AF$ S%ABB@BZ b&\\@FF@&B TCC$@BZH j A\ AFF#\@BZ $KA$ X&# qCWC A%F& rW&l@?C? $KCFC G&\\CB$FH `C%&q AWC s#CF$@&BF nW&\ $KC F#m\@$$C? G&\\CB$F $KA$ j K&rC X&# GAB A??WCFFR v#CF$@&B LH e&q GAB $KC ?C$CW\@BA$@&B &n w%CFF $KAB F@ZB@n@GAB$w n&W A%% CBl@W&B\CB$A% nAG$&WF ]FCC e&#F@BZ f%C\CB$ qCmrAZC Nxa Arr%X qKCB m&$K $KC e&#F@BZ f%C\CB$ ]rZH Qda AB? $KC `@&%&Z@GA% YCF&#WGCF yFFCFF\CB$ &n OPOx ]n&W JAX%&W pAXa A??WCFF CBl@W&B\CB$A% G&BGCWBF $KA$ BCC? $& mC A??WCFFC?u zW&\ rZH Qd &n $KC e&#F@BZ f%C\CB$R w{|}|~ ~€‚ƒ}„ ‚†
‡ˆ‰ƒ} ‰„Š ‹„† }‹ ˆ‡}ƒ}„
}‡ ~€|
} ƒ ŒŽ‘’“ ”•’‘“Œ }‡ €ˆ–€—€}„}|€ €ˆ–€ „ƒ‚ €ƒ€}† ƒ„}|~„ –‡‰‰|ƒ}€ €|–‹ „€ ~ˆ„~„ƒ ‹„˜}„} „ƒ‚ ™‚~„

Š ˆ~‡}–}‚ š}
„ƒ‚€›œ zW&\ $KC `@&%&Z@GA% YCF&#WGCF yFFCFF\CB$ ]zCmW#AWX OPOxai $KC ?&G#\CB$ F$A$CF $KA$ WCG&\\CB?A$@&BF $& WC?#GC r&$CB$@A% ?@WCG$ AB? @B?@WCG$ A?lCWFC AnnCG$F mC @BG%#?C? AF A œ–‡ƒ‚}‡ƒ ‡™ „ˆˆ~‡†„ ‡™ }‹ ˆ~‡–}œH ]fgA\r%CF @B $KC A$$AGKC? %C$$CW rCW$A@B $& FrCG@A%[F$A$#F m@W? FrCG@CF AB? qA$CW WCF&#WGCFaH v#CF$@&B OH V@lCB $KA$ $KCWC @F A BCC? $& A??WCFF CBl@W&B\CB$A% @\rAG$F AB? \@$@ZA$@&BFi qKX ?@? BC@$KCW $KC `@&%&Z@GA% YCF&#WGCF $Am%C ]qCmrAZC ^xa &W $KC TAB?A$&WX z@B?@BZF &n o@ZB@n@GABGC $Am%C ]qCmrAZC LOža Arr%X $KC wŸ€€ }‹„ƒ  ¡ƒ™–„ƒ} š}‹ ¢}¡„}‡ƒ€ £ƒ–‡~ˆ‡~„}‚œ ?C$CW\@BA$@&Bu v#CF$@&B xH JKC b@WG#%A$@&B f%C\CB$ ]qK@%C &#$[?A$C?a F$A$CF #B?CW $KC JW#G'MjB?#F$W@A% S&%@GXi S&%@GX Ox ]qCmrAZC LLxaR w¤€ ‡ƒ¡ „€ }‹ ¥}Š |€€ }‹ ¦€}ƒ¡ }~|–§ ~‡|}¨ }‹ ¥}Š €‹‡| ‚ –‡ƒ€‚~ ””©Ž •ª“«“’¬ ­«Œ“«Œ ª® ®«Œ­«“’¬ ¬ª“Œ š}‹ƒ ‡ƒ ‡–„
€}~} ‡~ ‡ƒ ˜
‡–§ ‡™ ¯~ƒš‡‡‚ ¤†ƒ|œ› pKX qAFBt$ $K@F r&%@GX Arr%@C? $& $KC %&$F $KA$ AWC G#WWCB$%X F%A$C? n&W A \#%$@[nA\@%X ?ClC%&r\CB$ rW&g@\A% $& VWCCBq&&? ylCB#C ]qCF$ F@?Cau p@%% $K@F r&%@GX Arr%X $& &$KCW lAGAB$ F@$CF ]JAm%C OLa rW&g@\A% $& VWCCBq&&? ylCB#Cu v#CF$@&B NR pK@%C $KC b@$X \#F$ r%AB n&W Ye°ytF Q$K AB? ^$K GXG%C qK@GK Cs#A$CF $& xN #B@$Fi qKX ?&CF $KC e&#F@BZ f%C\CB$ #r?A$C @BG%#?C dž BCq #B@$Fi QQ \&WC $KAB @F BCC?C? $& \CC$ $KC Q$K AB? ^$K GXG%Cu ±±²±³²´µ¶ ±·¸´¹ º» »¼½¾ ¿ À¼ÁÁ ÃÄÄÅ ¿ ÆÇȾÉÉÊ
ËÈÈÌŸ²²ÉÇȾÉÉÊÍÉÎνÏÄÍÏÉвм½¾²½ÑÒÉÓ²½Ô²ººÕʺÖ×ÊØÙº´ÚÖ¾ÐÛÜÝÞØÙÊÈÚÖßàßá·³ÚÀâ¾ÛÜ»·ØÜÝ´ÚÜݱ»Ù¾ÐÚÕºÕºÚãä×DZåžØæÁÁÐËççèÉèºæéê ±²ë 
















 









!




"#$$%&'()*)+,--+.-(#+#+),/00)$++.#++.-1)/,2*345-6-*+70(#+-8255*)+.#9-#,23*2:2;#*+-::-;+)*,)6- -*92$)*6-*+#5:#;+)$,82+.)/+62+23#+2)*,&2*:#;+&#,0)2*+-()/+#<)9-&',--+.-)00),2+-=>+.-$2+-6,+.#+#$- 2*;)*,2,+-*+)$5#;?2*3();/6-*+-(,/00)$+0-$+#2*+)+.-@2$;/5#+2)*45-6-*+#*(+.-A1BC.)/,2*3/*2+ #,,23*6-*+= D)/$$-,0)*,-&%)/$;5#$2:2;#+2)*,#,*--(-(&8)/5(<-#00$-;2#+-(= E2,#1))9-$

>*FGFHIJGIKGJLMKL&"#$$%A--,8$)+-M NOPOQRS
TUVWXYZ[\W]Z^_QRYY]W`OYUR_WZVaWbVWQbRUScZdefgY]eTUZ[\W]Z^_Q]RhhWVZVY]WiVbRVb jY]aWbVWQbRUZkWR\]lZVY]e mbZVnYoWpOWdWY]W_WR_WRVURhhZOVYlWVYQQ\]Wb^pWbUWYkZ_Y]WfgY]emkY]RYbRUqZ_rQkZ_UZ^ShpWRQW \RppY]Wk_ZVYZ[\WRY`OYUNRppYZsWYZVY]WQ\]Wb^pWe t]RVrQe uvwwxyzz{|}~€ ‚ƒ„
ƒ†‡ˆˆ‡„„‰‚ Šƒ‹ƒˆŒ„ƒ„‰‰‚ƒ„ŽŒ„‹ƒ‚„‰„‘‡ˆ’‰‚‹ƒ
‰“Ž ”‰“
ƒ‰„
‰“Žˆ‡„„ƒ„•‰‚ƒ–„Ž’—‚‹‰˜ƒ„ ™™™š›œžŸ ¡š¢£¤ ¥¦§¨¨‡©‡“ª«‹‰ŽŒ—‚‰¬‡ŽŠ«­®®¯¦ °±¯±²³³¦´¥¥®® µ¶·¸¹pbORVWºpbORVW»QZVO\eVWY¼ ½¾¿À¹aWbVWQbRUSÁ\YZoW_gÂSiÂijiÃiÄÅT Æ·¹ÇR__UÈWWQºs_WWQ»Q]VÉWVs_e\Zl¼ ½ÊË̾ÍÀ¹Î_RÏNZ^QOVsÐpWlWVYÑ\]RV\WYZlWWYZ_\ZVdW_QW 1-55)"#$$%&
ÒÒÓÒÔÓÕÖ×ÒØÙÕÚÛÜ ÜÝÞßàáÝââãäååæàçèéßêêë
ìééíæÙÓÓêèéßêêëîêïïÞðåîðêñÓñÝÞßÓÞòóêôÓÞõÓÛÛöëÛ÷øëùúÛÕ÷ßñùúëé÷ØÔá ßÜØùÕÒÜúßñöÛöÛ

øèÒ
æßù
ââñìêÛ
 ÕÓ
 





 






  
   



 










 




 




 

 

!
 "
 

#



 $ 

 %  "
 
 
$&






'() (* 
++,+-,./0+12.345 56789:6;;<=>>?9@AB8CCD
EBBF?2,,CAB8CCDGCHH7I>GICJ,J678,7KLCM,7N,44OD4PQDRS4.TP8JUVWXRSDBTPYZY[1-T:\8UV51RVW.TVW+5S8JTO4O4T]^QA+_?8R`;;JEaabCb4`cd e,e Attachment 3
Planning Commission Resolution No. 2-2024

Exhibit "A" to Resolution No. 2-2024
City of Blue Lake Draft General Plan Housing Element Update for the 2019-2027 Planning Period (6th Cycle)
https://bluelake.ca.gov/wp-content/uploads/2024/09/02012024- BlueLake-6thCycle-HousingElementUpdate.pdf
Attachment 4
Staff Presentation on the Blue Lake General Plan Housing Element Update Process
Blue Lake
Housing
Element Update
2019 - 2 0 2 7 P L A N N I N G
P E R I O D ( 6 TH C Y C L E )
California
Department of
Housing &
Community
Development
(HCD)
Mission: Promote safe, affordable homes and
vibrant, inclusive, sustainable communities for
all Californians.

Humboldt
County
Association of
Governments
(HCAOG) Joint Powers Agency composed of the
seven incorporated cities (Arcata, Blue
Lake, Eureka, Ferndale, Fortuna, Rio Dell,
Trinidad), and the County of Humboldt.

Housing Element Updates
• Blue Lake Housing Element updates
❑ 1986 (Adopted)
❑ 1992 (Adopted and Certified)
❑ 2004 (Adopted and Certified)
❑ 2009 (Adopted)
❑ 2015 (Draft – Not Adopted or Certified)
Consequences of Non-compliance with
State housing policy
1) The City could be sued
2) The City could be denied grant funding
3) The State could take away local control
Housing
Element
Update
2019-2027
(6th Cycle)
Regional
Housing Needs
Assessment
(RHNA) Plan
RHNA Allocation 2019-2027
5 th and 6th Cycle RHNA
Primary Housing Sites In the City
3rd - 5th Housing Element Planning Cycles 6th Housing Element Planning Cycle Vacant Sites Inventory Map
Current
Zoning
Map
RHNA vs Residential Sites
Implementation Programs
Revisions to the City’s Zoning Code for the following reasons:
• Ensure consistency with current State housing law (Programs HI-1, HI-2, HI-7, HI-17, HI-23) • Create a Multi-Family Combining Zone to allow multi-family projects without discretionary review or by-right at a density of 16 units per acre (Program HI-14) • To remove potential constraints to the development of multi-family housing (Program HI-19) • To comply with the requirements for objective design standards in Government Code Section 65589.5, subdivision (f) (Program HI-21)
• To minimize the potential for confusion regarding the applicability of the City’s design guidelines (Program HI-22)
Multi-Family Combining Zone
• Implementation Program HI-14
• Could be overlayed onto individual
properties with an R-3, MU, PDR, and
O base zoning district
• Would allow a density of 16 units per
acre by right (principally permitted
or “by-right”)
• Must be applied to sites 1 acre or
larger to meet State requirements
Applying
Combining
Zone
CEQA – Plan
Level vs. Project
Level
• Plan Level = Analyzes potential
environmental impacts of the
implementation of Goals, Policies, and
Programs in the plan area (City-wide)
• Project Level = Analyzes the site-specific
environmental impacts of a project
CEQA – Plan Level
• Housing Element Update – Analysis
of Implementation Programs HI-1
through HI-23
• Negative Declaration is often the
CEQA determination for individual
General Plan Element updates
• Most local jurisdictions adopted a
Negative Declaration for their
Housing Element Updates
CEQA – Plan Level
Blue Lake Housing Element Update
“The Housing Element Update is a policy
document that does not result in physical
changes to the environment but encourages
the provision of housing in areas of the City
that are already designated and zoned to
allow residential development. While
policies could require amendments to the
Zoning Code or result in actions of the City
that could cause a physical change, the
policies would not result in specific physical
changes to the environment. Additionally,
any amendments to the Zoning Code would
be subject to project-specific environmental
review pursuant to CEQA.”
CEQA – Project Level
• Danco Project – Analysis of the sitespecific physical impacts of a project • Often requires the preparation of
technical studies, which may
recommend mitigation measures
• Mitigated Negative Declaration is a
common CEQA determination for
projects that are not exempt

Blue Lake
Housing
Element Update
2019 - 2 0 2 7 P L A N N I N G
P E R I O D ( 6 TH C Y C L E )
California
Department of
Housing &
Community
Development
(HCD)
Mission: Promote safe, affordable homes and
vibrant, inclusive, sustainable communities for
all Californians.

Humboldt
County
Association of
Governments
(HCAOG) Joint Powers Agency composed of the
seven incorporated cities (Arcata, Blue
Lake, Eureka, Ferndale, Fortuna, Rio Dell,
Trinidad), and the County of Humboldt.

Housing Element Updates
• Blue Lake Housing Element updates
❑ 1986 (Adopted)
❑ 1992 (Adopted and Certified)
❑ 2004 (Adopted and Certified)
❑ 2009 (Adopted)
❑ 2015 (Draft – Not Adopted or Certified)
Consequences of Non-compliance with
State housing policy
1) The City could be sued
2) The City could be denied grant funding
3) The State could take away local control
Housing
Element
Update
2019-2027
(6th Cycle)
Regional
Housing Needs
Assessment
(RHNA) Plan
RHNA Allocation 2019-2027
5 th and 6th Cycle RHNA
Primary Housing Sites In the City
3rd - 5th Housing Element Planning Cycles 6th Housing Element Planning Cycle Vacant Sites Inventory Map
Current
Zoning
Map
RHNA vs Residential Sites
Implementation Programs
Revisions to the City’s Zoning Code for the following reasons:
• Ensure consistency with current State housing law (Programs HI-1, HI-2, HI-7, HI-17, HI-23) • Create a Multi-Family Combining Zone to allow multi-family projects without discretionary review or by-right at a density of 16 units per acre (Program HI-14) • To remove potential constraints to the development of multi-family housing (Program HI-19) • To comply with the requirements for objective design standards in Government Code Section 65589.5, subdivision (f) (Program HI-21)
• To minimize the potential for confusion regarding the applicability of the City’s design guidelines (Program HI-22)
Multi-Family Combining Zone
• Implementation Program HI-14
• Could be overlayed onto individual
properties with an R-3, MU, PDR, and
O base zoning district
• Would allow a density of 16 units per
acre by right (principally permitted
or “by-right”)
• Must be applied to sites 1 acre or
larger to meet State requirements
Applying
Combining
Zone
CEQA – Plan
Level vs. Project
Level
• Plan Level = Analyzes potential
environmental impacts of the
implementation of Goals, Policies, and
Programs in the plan area (City-wide)
• Project Level = Analyzes the site-specific
environmental impacts of a project
CEQA – Plan Level
• Housing Element Update – Analysis
of Implementation Programs HI-1
through HI-23
• Negative Declaration is often the
CEQA determination for individual
General Plan Element updates
• Most local jurisdictions adopted a
Negative Declaration for their
Housing Element Updates
CEQA – Plan Level
Blue Lake Housing Element Update
“The Housing Element Update is a policy
document that does not result in physical
changes to the environment but encourages
the provision of housing in areas of the City
that are already designated and zoned to
allow residential development. While
policies could require amendments to the
Zoning Code or result in actions of the City
that could cause a physical change, the
policies would not result in specific physical
changes to the environment. Additionally,
any amendments to the Zoning Code would
be subject to project-specific environmental
review pursuant to CEQA.”
CEQA – Project Level
• Danco Project – Analysis of the sitespecific physical impacts of a project • Often requires the preparation of
technical studies, which may
recommend mitigation measures
• Mitigated Negative Declaration is a
common CEQA determination for
projects that are not exempt

AGENDA REPORT
Item #: 9

Date: November 26, 2024

Item Subject: Second Reading and Adoption of an Ordinance of the City Council of the City of Blue Lake Adding Section 17.24.260 of Title 17 (Zoning) to Amend Section

17.24.260 of the Blue Lake Municipal Code-Adding Metal Roofing to the Design Standards
Submitted By: Mandy Mager, City Manager
General Information:

On September 16, 2024, the Blue Lake Planning Commission passed a resolution recommending the addition of metal roofing to the City’s residential design standards. As metal roofing has become a regular and accepted roofing material, the Planning Commission and staff recommend this addition.

On October 22, 2024, the City Council introduced the item and conducted the first reading by title only.

Background Material Provided: Planning Resolution
Fiscal Impact: N/A
Recommended Action: Conduct the second reading and adopt by title only.

Review Information:

City Manager Review: ☒ Legal Review: ☒ Planner Review: ☒ Engineer: ☐ Comments:

City of Blue Lake

ORDINANCE NO. 2024-544

AN ORDINANCE OF THE CITY COUCIL OF THE CITY OF BLUE LAKE AMENDING SECTION 17.24.260 OF TITLE 17 (ZONING) OF THE BLUE LAKE

MUNICIPAL CODE AND DETERMINING THE ADOPTION OF THE

ORDINANCE TO BE EXEMPT FROM CEQA
WHEREAS, the City of Blue Lake, California (City) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, California Government Code Section 65850 et seq. authorizes cities to regulate land use, and to adopt and amend zoning and building Ordinances for such purposes, and sets forth procedures governing the adoption and amendment of such Ordinances; and WHEREAS, pursuant to Chapter 17.28 of Title 17 of the Blue Lake Municipal Code (the “Code”) an amendment to the Title 17 may be initiated by the Blue Lake Planning Commission, which shall provide a written recommendation on the proposed amendment to the City Council following a noticed public hearing; and
WHEREAS, at a noticed public hearing of the Planning Commission on September 16, 2024, the Planning Commission adopted Resolution No. 1-2024, recommending that the City Council amend Section 17.24.260 of the Code as set forth in Exhibit A to Resolution No. 1-2024; WHEREAS, on_________________, the City caused to be published in the ______________________, a newspaper of general circulation in the City of Blue Lake, a Notice of Public Hearing on the proposed Ordinance; further, the City published a Notice of Public Hearing on the proposed amendment on its website at https://bluelake.ca.gov/, and posted the same Notice of Public Hearing in three public places in accordance with Section 17.28.010 of the Code; and said notices specify the availability of the Ordinance and the date, time, and location of the public hearing on this Ordinance; and WHEREAS, the City Council has considered the staff report, supporting documents, public testimony, the recommendation of the Planning Commission, and all appropriate information that has been submitted with this Ordinance; and
WHEREAS, adoption of this Ordinance is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3), the “General Rule”, which states that a project is exempt from CEQA where it can be seen with certainty that there is no possibility that the project would have a significant effect on the environment; and
WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BLUE LAKE, DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Recitals. Each fact set forth in the recitals above is true and correct, and incorporated herein by reference.

Section 2. CEQA. Adoption of this Ordinance is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3), the “General Rule”, which states that a project is exempt from CEQA where it can be seen with certainty that there is no possibility that the project would have a significant effect on the environment.

The City Council hereby directs staff to prepare, execute, and file with the Humboldt County Clerk a notice of exemption within five (5) working days of the adoption of this Ordinance.

Section 3. General Plan. Based on the entire record before the City Council, and all written and oral evidence presented, the City Council hereby finds that this Ordinance’s amendments to the Blue Lake Municipal Code are consistent with the City’s adopted General Plan.

Section 4. Zoning Ordinance Amendment. The following section(s) of Title 17 of the Blue Lake Municipal Code are hereby amended by this Ordinance as set forth in Exhibit A, attached hereto and incorporated herein by reference:
• 17.24.260 Development Standards
Without modifying the substance, following approval of this Ordinance, the City Clerk shall cause the amendments to the above-listed sections to be consistent in form and style with the Title 17 of the Blue Lake Municipal Code.

Section 4. Effective Date. The effective date of this Ordinance is thirty (30) days after its adoption of the City Council.

Section 5. Severability. If any provision of this Ordinance or its application to any person or circumstance is held to be invalid, such invalidity has no effect on the other provisions or applications of the Ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this resolution are severable. The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any portion thereof.

INTRODUCED and FIRST READING CONDUCTED at a regular meeting of the City Council of the City of Blue Lake, California, on this 22nd day of October, by the following ROLL CALL vote of the City Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

Adelene Jones, Mayor
Attest:
________________________________
Anali Gonzalez, City Clerk
SECOND READING CONDUCTED, PASSED, and ADOPTED at a regular meeting of the City Council of the City of Blue Lake, California, on this 26th day of November, by the following ROLL CALL vote of the City Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

Adelene Jones, Mayor
Attest:
________________________________
Anali Gonzalez, City Clerk
EXHIBIT “A”
Notes:

1. Proposed amendments are shown in underlined-bold text for additions and strikethrough text for deletions.

2. All sub-sections not included in the below referenced Sections shall continue in full force, unamended by this Ordinance.

End Notes
Title 17 Zoning
Chapter 17.24 General Provisions and Exceptions

17.24.260. Development Standards.

A. Any single-family home (including a manufactured home) constructed or placed within the City of Blue Lake in accordance with these previsions shall:

1. Have a minimum width of 20 feet.

2. Have a roof with a pitch of not less than four-inch vertical rise for each 12 inches of horizontal run.

3. Have a minimum six-inch roof overhang on all sides.

4. Have an exterior siding composed of the following materials:
a. Plywood exterior paneling
b. Masonry or Concrete
c. Stucco
d. Any wood products including shingles, shakes, horizontal overlapping board or pressboard siding in widths of 12 inches or less.

5. Have a roof composed of the following materials:
a. Interlocking roof tiles
b. Composition shingles
c. Wood
d. Wood, asbestos, cement or slate shingles.
e. Metal roofing that is standing seam, concealed fastener, and has colors and/or textures that reduce glare/reflection.

B. The Planning Commission is empowered to allow a single-family home (including a manufactured home) to be constructed or placed within the City of Blue Lake with alternative reasonable development standards substituted for those set forth in this section, or to exempt such a home from the strict applications of such development standards, upon a showing of good cause. A principal criterion for determining whether good cause exists for such exemption or substitution shall be compatibility with the neighborhood in which the structure is proposed to be constructed or placed. Applications for such substitution of, or exemption from, these development standards shall be made to the Planning Commission, and appeal to the City Counsil from a decision of the Planning Commission may be taken, in accordance with the procedures set forth in Section 17.24.250, Site Plan Approval.

S
City of Blue Lake
November 26, 2024
Regular Council Meeting
Consent Agenda Items:
a. Meeting Minutes: September 24, 2024
b.Salary Scale Adjustment Fiscal Year 2024/2025
c. October Warrants and Disbursements
1 | Page
Unless Otherwise Noted, All Items on the Agenda are Subject to Action.

Meeting Called to Order at 6:30 PM

1. Pledge of Allegiance and Establish a Quorum of the Council Council Members Present:

Adelene Jones, Mayor
Angela Shull, Mayor Pro-tem
Elise Scafani
Christopher Edgar
Staff Present:

Amanda Mager, City Manager
Anali Gonzalez, City Clerk
Tonie Quigley, Office Assistant
Public Present:

Kat Napier, Erin McClure, Mardi Grainger, Melissa Lusso, John Sawatzky, Alex Ricca, Jean Lynch, Winona Verda Pitts, Lin Glenn, Julie Christie, Beckie Thornton, Martha Meade.

2. Approval of Agenda
Public comment: no public comments.

Public comment closed.

Motion: To approve agenda as presented.

Motion by: Councilmember Edgar, Second: Councilmember Scafani There were no comments from the Council
Vote: Ayes: Jones, Shull, Scafani, Edgar Nays: None Absent: None Motion Summary: Motion Passed
Blue Lake City Council Minutes
Tuesday, September 24, 2024~ 6:30 p.m. ~Regular City Council Meeting Skinner Store Building-111 Greenwood Road, Blue Lake-Behind City Hall

CITY OF BLUE LAKE

C A L I F O R N I A
111 Greenwood Road
P.O. Box 458
Blue Lake, CA 95525
(707) 668-5655
Fax: (707) 668-5916
www.bluelake.ca.gov
2 | Page

3. Public Comment – The Public is invited to present petitions, make announcements, or provide other information to the City Council that is relevant to the scope of authority of the City of Blue Lake that is not on the Agenda. The Council may provide up to 15 minutes for this public input session. To assure that each individual presentation is heard, the Council may uniformly impose time limitations of 3 minutes to each individual presentation. The public will be given the opportunity to address items that are on the agenda at the time the Council takes up each specific agenda item.

Mayor Jones opens Public Comment:

Alex Ricca commented that he had applied for public safety commission opening and wanted the council to be able to put a face with a name.

Kat Napier: follow up to comments from last meeting regarding damage on the truck route. The city manager quickly facilitated a meeting with herself and a SHN representative and RAO owner, to walk the site together. Some of the damage was in areas that you expected were going to be demoed. I was not saying that damage happened end to end recklessly, that is not the case. I did see that there could have been more care regarding spatter of concrete. Came to an agreement that there will be greater precautions in the future. Overall continuing care.

Julie Christie: thanks to Alex for stepping up. Thank Kat for stepping up and giving her thoughts on the truck route progression. Hope that during the mayors report we can get a good thing on the climate action plan.

Linn Glen: commented on Safety Fair, what a great turn out. Mentioned that she has recent addition of Shakey Ground, a resource for earthquake and Tsunamis preparedness.

Mardi Grainger: commented that she had requested last month for an item to be put on the agenda, regrading getting Justin Goad compensated for his work recording the council and commission meetings. She read the request aloud.

Back to council. Mayor Jones inquiries about Justin Goad’s compensation for his services to the city.

City Manager Mager- Explains the city is currently working on an agreement with Justin Goad.

4. Proclamation of the City of the Blue Lake Recognizing September 30-October 6, 2024, as the Week Without Driving- Discussion/Action
The State of California has proclaimed the week of September 30, 2024-October 6, 2024, as the “Week without Driving.” This proclamation is made with the intention of raising awareness to issues surrounding public transportation, and environmental impacts, while at the same time encouraging citizens to utilize alternative forms of transportation, such as biking, walking, and ridesharing.

This proclamation is being adopted throughout the State as an educational campaign that invites local officials, decision makers and community members to experience their community without relying on a car and encourages consideration of improved public transportation and access options, such as trails and pedestrian walkways.

Motion: To Adopt the proclamation proclaiming the week of September 30, 2024-October 6, 2024, as the “Week without Driving.”
Motion by: Councilmember Edgar Second by: Councilmember Shull Mayor Jones opens public comment:

Jean Lynch: comments on language regarding roadways going thru persons of color neighborhoods, I think that should be deleted or excluded from the proclamation as not necessary. In honor of my grandfather as he was an honorable man and would be offended if thought that he would intentionally run over anyone of color.
3 | Page
Julie Christie: comments on verbiage of proclamation that it may not be understood as written. State and county wide proclamation that’s going around, and the reasoning is that when the roadways were developed in a way to not be as accessible to minority groups, and that’s outdated. I agree on that.

Public comment closed.

Back to council for the vote.

Vote: Ayes: Jones, Shull, Edgar, Scafani Nays: Absent: None Motion Summary: Motion Passed
Mayor Jones reads proclamation of the City of Blue Lake recognizing September 30, 2024- October 6, 2024, as the “Week without Driving.”

5. City of Blue Lake Branding Implementation- Discussion/Direction The City has been in a years long process of developing marketing and branding materials to elevate the City’s capacity to market community events, improve signage, create social media platforms and replace outdated materials. The Blue Lake Economic Development Commission was tasked with this process and over the years, the commission has worked to make progress on this initiative. As part of this process the City hired Visual Concepts to develop a branding campaign for the City. This included the development of a City logo that could be deployed across social media platforms, applied to signage and print materials and utilized as a base for further branding and marketing.

Recommended Action: To support the use of the branding material and strategies as presented by Visual Concepts.

Council discussion.

Councilmember Scafani: Really likes the emblem with the bike but has concerns about the imagery on one of the city logos. Expresses she would like to view the different renditions of the logo.

Mayor Jones opens public comment:

Julie Christie: commented that she supports with Elise, that she concurs with her statement, yes give public participation. I like old symbol. We are losing our heritage. We don’t need a facelift.

Mardi Grainger: Seems when offered to the public, it was overwhelming. Commissions and council should have a choice. More choices to public.

Alex Ricca: comments that he thinks BL needs to have a find the lake day. Have people come out and try to find the lake.

Winona: comments that she agrees with Julie, think that the traditional seal is timeless, professional looking, The new design is a fad, it’s what is in right now. That in 5 to 10 years it will make a lot of sense to be changing that design. Appropriate design for park and rec as they are evolving and changing.

John Sawatzky: commented that what bugged him was the high contrast colors, color combinations, it is bold and over simplified, visually overstimulating. Some things that could be done to adjust the color scheme by softening of choosing a more harmonious palette, reduce the complexity by removing some of the outlines.

Becky Thornton: commented that she agrees with Elise. Took graphic design 35 years ago, colors are too dark, need to tone it down, need to find more neutral colors, too busy.

Public comment closed.
4 | Page

6. Memorandum of Agreement with Fieldbrook Glendale Community Service DistrictDiscussion/Action Councilmember Edgar recuses himself from Memorandum of Agreement with Fieldbrook Glendale Community Service District.

The Fieldbrook Glendale Community Services District has proposed a service agreement with the City of Blue Lake for services relating to the daily monitoring of their wastewater metering system.

The CSD had previously contracted for these services, but due to a recent retirement, the CSD no longer has a qualified operator to perform these duties.

The City’s Public Works Director and Superintendent have reviewed the scope of work provided by the CSD and feel that the duties are manageable and within the capacity of the City’s staffing capabilities. The City is proposing a monthly rate for services; this rate is based upon an assumption of providing ½ per day of services to the CSD and includes the cost of vehicle mileage and administration costs. The City’s attorney has provided a draft Memorandum of Agreement and is recommending execution as presented.

Recommended Action: To authorize the City Manager to execute the Memorandum of Agreement with the Fieldbrook Glendale Community Service District Agreement and to amend the agreement as appropriate upon review and recommendation by the City Attorney.

Council Discussion:

City Manager Mager- I would like to have the council consider authorizing the City Manager and City Attorney to make any minor changes to the agreement if the scope of work or the amount of time or anything does change. Staff did a calculation based upon 30 minutes of time per day and overhead administrative costs of 15%.

The Mayor and City manager discuss budget amendments due to this potential new agreement.

Mayor Pro Tem Shull inquires whether Fieldbrook Glendale Community Service District has a longterm solution and notes the MOA does not have an end date. City Manager thinks Fieldbrook Glendale Community Service District think of this MOA agreement as a long-term solution and the City will propose and end date. Normally what we do is an amendment that amendment can make changes to the body of the agreement, or it can just amend the end date but that is our opportunity, usually to know there’s something that’s not working or we want to add something. These low-level type agreements usually just run through me and through the attorney rather than coming back to the Council each time so that’s why we are just asking for that clarification.

Councilmember Scafani: Suggests it might be a good idea for the MOA agreement between the City of Blue Lake and Fieldbrook Glendale Community Service District to come back to council next year for review. Mayor Jones notes item eight that says the agreement shall remain in effect until such time that either party shall by provision of at least 30 days prior notice notify in writing the other party to this agreement that said party desires to cancel and terminate this agreement.

Motion: made by Councilmember Scafani to authorize the City Manager to execute the Memorandum of Agreement with Fieldbrook Glendale Community Service District and amend the agreement as appropriate for the coming year with the understanding that a year from now it will be reviewed for future service. City Manager asks the Council for the ability to amend the agreement to reflect any type of cost structure negotiations
5 | Page
Motion: made by Mayor Pro Tem Shull to approve the recommended action as written for one year.

Second by: Councilmember Scafani.

Mayor Jones opens public comment:

Julie Christie: comments that she thanks Elise for bringing up comment. (after that, totally off topic). Public comment closed.

Vote: Ayes: Jones, Shull, Scafani Nays: None Absent: None Recused: Christopher Edgar Motion Summary: Motion Passed

7. Council Correspondence
Mayor Jones reads council correspondence from Jean Lynch.

8. Consent Agenda
a. July 23, 2024, City Council Meeting Minutes
Councilmember Scafani notes on page three of July 23, 2024, meeting minutes she invited Garry Reese (City Planner) to work with her to update the City website and let him know the website has a General Plan page. Also, would like his input on populating the General Plan page. Mayor Jones states she would like Councilmember Angela Shull to be recognized as Mayor Pro Tem Shull in the meeting minutes.

Motion: To approve July 23rd, 2024, City Council Meeting Minutes with corrections and additions.

Motion by: Councilmember Edgar, Second: Councilmember Shull Public Comment:

Julie Christie: commented public comments in minutes not being accurate.

Public comment closed.

Vote: Ayes: Jones, Shull, Edgar, Scafani Nays: Absent: None Motion Summary: Motion Passed
b. August Warrants & Disbursements
Councilmember Edgar recuses himself from August Warrants & Disbursements.

Councilmember Scafani- Inquires on check #12219, check #12233, and check # 12271 and why the city of Blue Lake is writing itself a check? Manager Mager states that the City of Blue Lake also pays for water and sewer for all the facilities. Councilmember Scafani asks about vendor named Nutter Production. City Manager Mager states Nutter Productions, Lynette Nutter, was contracted to do our affordable housing video for us. Mayor Jones states she would like the video out to the public. City Manager Mager states we need to add the video to our website and get it out to the public, as part of the REAP funding requirements is to analyze what barriers to housing are in the community. Lynette Nutter did a really good job; staff would like to add the video as a future agenda item. The REAP and LEAP funding has been mostly used to update our Housing Element. Councilmember Scafani asked about check #12271 looks like a mortgage payment. City Manager Mager states it is, and this will be brought back to Council. Previously we had brought back to you an action to pay the loan for the Town Square and unfortunately the payoff amount presented was misrepresented on the number of payments that were left of the loan. The City paid down against the balance but we still have a small balance and staff will be bringing that back to Council.

Motion: To approve August Warrants & Disbursements.

Motion by: Councilmember Scafani, Second: Councilmember Shull Public Comment:
6 | Page
Julie Christie- thank you for taking my comment I do feel like it is very unclear on general fundage grant just stuff like that. If you want to view the video since the City hasn’t shared it yet, if you go to the HCAOG web page you can access it there.

Vote: Ayes: Jones, Shull, Scafani, Nays: Absent: None Recused: Edgar Motion Summary: Motion Passed

10. Reports of Council and Staff
a. City Manager Report
b. Council reports on community events and meetings attended this month.

11. Future Agenda Items
• HCAOG Video
• Financial Audit FY 22/23
• CDBG CLOSEOUT
City Council applications will be delivered to councilmembers by October 1, 2024.

12. Adjourn
Motion: to adjourn 8:48 pm.

Motion by: Councilmember Scafani, Second: Councilmember Shull There were no comments from the Council
Voted unanimously.

Motion Summary: Motion Passed

City Council Meeting Agenda Report
Item #: 10
Date: November 26, 2024
Item Subject: City of Blue Lake Fiscal Year 2024-2025 Salary Plan Adjustment Submitted By: Mandy Mager, City Manager
General Information:

The City has contracted with Fieldbrook Community Services District to provide daily monitoring of their wastewater system. Due to the increase in duties, the amount of time allocated to our Public Works Department to conduct daily rounds has increased to 2.5 hours.

In order to adequately compensate for staff time, it is necessary to increase the pay associated with conducting the rounds from $75.00 to $125.00. This increase in costs is necessary in order to maintain equity with pay rates and compensation schedules.

The additional costs to conduct the rounds are covered under the Memorandum of Agreement with the Fieldbrook Community Services District.

Background Material Provided: Draft Salary Schedule
Fiscal Impact: Additional costs are covered by the MOA with Fieldbrook CSD Recommended Action: Adopt the adjusted salary schedule for Fiscal Year 2024-2025 Review Information:

City Manager Review: ☒ Legal Review: ☐ Planner Review: ☐ Engineer: ☐ Comments: Reviewed by the Finance Manager
City of Blue Lake

City Council Meeting Agenda Report
Item #: 11
Date: November 26, 2024
Item Subject: Site Management at 200 Taylor Way
Submitted By: Mandy Mager, City Manager
General Information:

In order to deter further illegal entry and vandalism at 200 Taylor Way, I have contacted our attorney, our City Planner and our risk managers regarding options for an on-site manager for the property.

Based upon these discussions, I am recommending that the City pursue the option of contracting with Justin Goad to locate his travel trailer on the site, to provide a higher level of site management and deterrence.

It is proposed that the City exchange this service for space cost and that Mr. Goad will be responsible for the cost of utilities. The City proposes to provide additional motion lighting, surveillance cameras and signage, and Mr. Goad will be responsible for reporting any intrusion, vandalism, or other illegal entry to the Sheriff Department and the City Manager.

Mr. Goad will not act as a security officer, nor will he be asked, encouraged or allowed to engage with anyone trespassing on the site. His presence will strictly be to deter entry and to report issues or concerns.

As the City has very limited monetary resources to allocate to security services, and the fact that private security patrols are limited, if not non-existent in our community, the proposed option makes the most sense and is the most cost-effective option.

Background Material Provided: N/A
Fiscal Impact: N/A
Recommended Action: Direct the City Manager to contract with Justin Goad to provide on-site management services for City owned property located at 200 Taylor Way.

Review Information:

City Manager Review: ☒ Legal Review: ☐ Planner Review: ☒ Engineer: ☐ Comments:

City of Blue Lake