Agenda packet, regular meeting, third session — Citrus Heights City Council Meetings, March 9, 2023 (part 1 of 2)

AGENDA
Thursday, March 9, 2023

CITY OF CITRUS HEIGHTS CITY COUNCIL
6:00 PM REGULAR MEETING
City Hall Council Chambers
6360 Fountain Square Drive, Citrus Heights, CA
HOW TO PARTICIPATE:

The City of Citrus Heights welcomes your interest and involvement in the City’s legislative process.

The Council may take up any agenda item at any time, regardless of the order listed. The City Council has established a procedure for addressing the Council. If you wish to address the Council during the meeting, please fill out a Speaker Identification Sheet and give it to the City Clerk, if participating via webcast you may use the Zoom hand raise function (or *9 if you join the webinar via telephone) and the host will unmute you when it is time to speak. When you are called upon to speak, step forward to the podium and state your name for the record. Normally speakers are limited to five minutes each with 30 minutes being allowed for all comments. Any public comments beyond the initial 30 minutes may be heard at the conclusion of the agenda. The Mayor has the discretion to lengthen or shorted the allotted times. Alternatively, you may submit your comment by 4:00 p.m. on the meeting day to by completion of an online Speaker Card at https://www.citrusheights.net/FormCenter/City -Council-Meetings-Speaker-Card-30. Written public comments shall be limited to 250 words or less. Each comment will be read aloud by the City Clerk.

Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection during normal business hours at City Hall, located at 6360 Fountain Square Drive. Audio / Visual presentation material must be provided to the City Clerk's Office at least 48 hours prior to the meeting. Email subscriptions of the agenda are available online by signing up with the City's Notify Me service.

Regular Meeting 6:00 p.m. Zoom Meeting –Webinar link: https://zoom.us/j/93854185581 If you need a disability-related modification or accommodation, to participate in this meeting, please contact the City Clerk ’s Office 916-725-2448, [email protected], or City Hall 6360 Fountain Square Drive at least 48 hours prior to the meeting. TDD: California Relay Service 7-1-1.

March 9, 2023 City Council Meeting Agenda Packet
3-9-23 REGULAR COUNCIL AGENDA PACKET.PDF

CALL REGULAR MEETING TO ORDER

1. Flag Salute

2. Roll Call: Council Members: Karpinski -Costa, Lopez-Taff, Middleton, Daniels, Schaefer

3. Video Statement

APPROVAL OF AGENDA

PUBLIC COMMENT

PRESENTATIONS

4. Proclamation Of The City Of Citrus Heights Proclaiming March 2023 As Women ’s History Month

5. Proclamation Of The City Of Citrus Heights Proclaiming March 2023 As Red Cross Month

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

CONSENT CALENDAR
It is recommended that all consent items be acted on simultaneously unless separate discussion and/or action are requested by a Council Member.

6. SUBJECT: Approval Of Minutes
RECOMMENDATION: Approve the Minutes of the Meeting of February 23, 2023

7. SUBJECT: Quarterly Treasurer’s Report
STAFF REPORT: S. Talwar / A. Preciado
RECOMMENDATION: Staff recommends the City Council receive and file the Quarterly Treasurer’s Report for the quarter ending December 31, 2022.

8. SUBJECT: Approval Of Investment Policy For Fiscal Year 2022-23 STAFF REPORT: S. Talwar
RECOMMENDATION: Adopt Resolution No. 2023-___ A Resolution of the City Council of the City of Citrus Heights Approving the Investment Policy and Delegating Authority to the Administrative Services Director to Invest Funds in Accordance with the Investment Policy

9. SUBJECT: Annual Comprehensive Financial Report
STAFF REPORT: S. Talwar / A. Preciado
RECOMMENDATION: Staff recommends the City Council accept and file the City of Citrus Heights Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2022.

10. SUBJECT: 2022 General Plan Annual Progress Report
STAFF REPORT: C. Kempenaar / E. Singer
RECOMMENDATION: Adopt Resolution No. 2023-___ A Resolution of the City Council of the City of Citrus Heights, California, Accepting the 2022 General Plan Annual Progress Report

11. SUBJECT: Second Reading – Proposed Ordinance Prohibiting Commercial Vehicle Parking On Public Streets In The City; And Resolution To Approve Fine STAFF REPORT: A. Turcotte / R. Jones
RECOMMENDATION: the following is recommended:
a. Adopt Ordinance No. 2023-001 An Ordinance of the City Council of the City of Citrus Heights Adding Section 94-281 to Article IV Division I of the Citrus Heights Municipal Code Relating to Prohibiting Commercial Vehicle Parking on Public Streets in the City
b. Adopt Resolution No. 2023-___ A Resolution of the City Council of the City of Citrus Heights, California, Updating the Citrus Heights Parking Violation Fine Schedule

PUBLIC HEARINGS

12. SUBJECT: Zoning Code Updates
STAFF REPORT: C. Kempenaar / A. Bermudez / E. Singer
RECOMMENDATION: Continued to the March 23, 2023 City Council Meeting

REGULAR CALENDAR

13. SUBJECT: Fiscal Year 2022-23 Mid-Year Budget Adjustment And Financial Forecast Update
STAFF REPORT: S. Talwar / T. Nossardi
RECOMMENDATION: Adopt Resolution No. 2023-___ A Resolution of the City Council of the City of Citrus Heights Approving Amendments to the Fiscal Year 2022- 23 Budget

DEPARTMENT REPORTS

CITY MANAGER ITEMS

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

ADJOURNMENT
Documents:

AGENDA
Thursday, March 9, 2023

CITY OF CITRUS HEIGHTS CITY COUNCIL
6:00 PM REGULAR MEETING
City Hall Council Chambers
6360 Fountain Square Drive, Citrus Heights, CA
HOW TO PARTICIPATE:

The City of Citrus Heights welcomes your interest and involvement in the City’s legislative process.

March 9, 2023 City Council Meeting Agenda Packet
3-9-23 REGULAR COUNCIL AGENDA PACKET.PDF

CALL REGULAR MEETING TO ORDER

1. Flag Salute

2. Roll Call: Council Members: Karpinski -Costa, Lopez-Taff, Middleton, Daniels, Schaefer

3. Video Statement

APPROVAL OF AGENDA

PUBLIC COMMENT

PRESENTATIONS

4. Proclamation Of The City Of Citrus Heights Proclaiming March 2023 As Women ’s History Month

5. Proclamation Of The City Of Citrus Heights Proclaiming March 2023 As Red Cross Month

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

CONSENT CALENDAR
It is recommended that all consent items be acted on simultaneously unless separate discussion and/or action are requested by a Council Member.

6. SUBJECT: Approval Of Minutes
RECOMMENDATION: Approve the Minutes of the Meeting of February 23, 2023

PUBLIC HEARINGS

12. SUBJECT: Zoning Code Updates
STAFF REPORT: C. Kempenaar / A. Bermudez / E. Singer
RECOMMENDATION: Continued to the March 23, 2023 City Council Meeting

REGULAR CALENDAR

DEPARTMENT REPORTS

CITY MANAGER ITEMS

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

ADJOURNMENT
Documents:

AGENDA
Thursday, March 9, 2023

CITY OF CITRUS HEIGHTS CITY COUNCIL
6:00 PM REGULAR MEETING
City Hall Council Chambers
6360 Fountain Square Drive, Citrus Heights, CA
HOW TO PARTICIPATE:

The City of Citrus Heights welcomes your interest and involvement in the City’s legislative process.

March 9, 2023 City Council Meeting Agenda Packet
3-9-23 REGULAR COUNCIL AGENDA PACKET.PDF

CALL REGULAR MEETING TO ORDER

1. Flag Salute

2. Roll Call: Council Members: Karpinski -Costa, Lopez-Taff, Middleton, Daniels, Schaefer

3. Video Statement

APPROVAL OF AGENDA

PUBLIC COMMENT

PRESENTATIONS

4. Proclamation Of The City Of Citrus Heights Proclaiming March 2023 As Women ’s History Month

5. Proclamation Of The City Of Citrus Heights Proclaiming March 2023 As Red Cross Month

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

CONSENT CALENDAR
It is recommended that all consent items be acted on simultaneously unless separate discussion and/or action are requested by a Council Member.

6. SUBJECT: Approval Of Minutes
RECOMMENDATION: Approve the Minutes of the Meeting of February 23, 2023

PUBLIC HEARINGS

12. SUBJECT: Zoning Code Updates
STAFF REPORT: C. Kempenaar / A. Bermudez / E. Singer
RECOMMENDATION: Continued to the March 23, 2023 City Council Meeting

REGULAR CALENDAR

DEPARTMENT REPORTS

CITY MANAGER ITEMS

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

ADJOURNMENT
Documents:

Printed on Recycled Paper
City Council meetings take place in
the City Hall Council Chambers.

Tim Schaefer, Mayor
Bret Daniels, Vice Mayor
Jayna Karpinski-Costa, Council Member
MariJane Lopez-Taff, Council Member
Porsche Middleton, Council Member

CITY OF CITRUS HEIGHTS

CITY COUNCIL
Regular Meeting of Thursday, March 9, 2023
City Hall Council Chambers, 6360 Fountain Square Dr., Citrus Heights, CA Regular Meeting 6:00 p.m.

HOW TO PARTICIPATE:

The City of Citrus Heights welcomes your interest and involvement in the City’s legislative process. The Council may take up any agenda item at any time, regardless of the order listed. The City Council has established a procedure for addressing the Council. If you wish to address the Council during the meeting, please fill out a Speaker Identification Sheet and give it to the City Clerk, if participating via webcast you may use the Zoom hand raise function (or *9 if you join the webinar via telephone) and the host will unmute you when it is time to speak. When you are called upon to speak, step forward to the podium and state your name for the record. Normally, speakers are limited to five minutes each with 30 minutes being allowed for all comments. Any public comments beyond the initial 30 minutes may be heard at the conclusion of the agenda. The Mayor has the discretion to lengthen or shorten the allotted times. Alternatively, you may submit your comment by 4:00 p.m. on the meeting day by completion of an online Speaker Card at https://www.citrusheights.net/FormCenter/City-Council-Meetings-Speaker-Card-30. Written public comments shall be limited to 250 words or less. Each comment will be read aloud by the City Clerk.

Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection during normal business hours at City Hall, located at 6360 Fountain Square Drive. Audio/Visual presentation material must be provided to the City Clerk’s Office at least 48 hours prior to the meeting. Email subscriptions of the agenda are available online by signing up with the City’s Notify Me service.

Regular Meeting 6:00 p.m. Zoom Meeting –Webinar link: https://zoom.us/j/93854185581

The City provides three ways to watch a City Council meeting.

IN PERSON ONLINE ON TELEVISION

If you need a disability-related modification or accommodation, to participate in this meeting, please contact the City Clerk’s Office 916-725-2448, [email protected], or City Hall 6360 Fountain Square Drive at least 48 hours prior to the meeting. TDD: California Relay Service 7-1-1.

March 3, 2023
_______________________
Amy Van, City Clerk

Watch the livestream and replay past
meetings on the City website.

Watch live and replays of meetings
on Sac Metro Cable, Channel 14.

Agenda Packet Page 1
Citrus Heights City Council Thursday, March 9, 2023

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Printed on Recycled Paper

REGULAR CITY COUNCIL MEETING
6:00 PM

CALL REGULAR MEETING TO ORDER

1. Flag Salute

2. Roll Call: Council Members: Karpinski-Costa, Lopez-Taff, Middleton, Daniels, Schaefer

3. Video Statement

APPROVAL OF AGENDA

PUBLIC COMMENT

PRESENTATIONS:

4. Proclamation of the City of Citrus Heights Proclaiming March 2023 as Women’s History Month

5. Proclamation of the City of Citrus Heights Proclaiming March 2023 as Red Cross Month

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

CONSENT CALENDAR
It is recommended that all consent items be acted on simultaneously unless separate discussion and/or action are requested by a Council Member.

6. SUBJECT: Approval of Minutes
RECOMMENDATION: Approve the Minutes of the Meeting of February 23, 2023

8. SUBJECT: Approval of Investment Policy for Fiscal Year 2022-23 STAFF REPORT: S. Talwar
RECOMMENDATION: Adopt Resolution No. 2023-___ A Resolution of the City Council of the City of Citrus Heights Approving the Investment Policy and Delegating Authority to the Administrative Services Director to Invest Funds in Accordance with the Investment Policy

Agenda Packet Page 2
Citrus Heights City Council Thursday, March 9, 2023

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Printed on Recycled Paper

11. SUBJECT: Second Reading – Proposed Ordinance Prohibiting Commercial Vehicle Parking on Public Streets in the City; and Resolution to Approve Fine STAFF REPORT: A. Turcotte / R. Jones
RECOMMENDATION: the following is recommended:

a. Adopt Ordinance No. 2023-001 An Ordinance of the City Council of the City of Citrus Heights Adding Section 94-281 to Article IV Division I of the Citrus Heights Municipal Code Relating to Prohibiting Commercial Vehicle Parking on Public Streets in the City b. Adopt Resolution No. 2023-___ A Resolution of the City Council of the City of Citrus Heights, California, Updating the Citrus Heights Parking Violation Fine Schedule

PUBLIC HEARING

12. SUBJECT: Zoning Code Updates
STAFF REPORT: C. Kempenaar / A. Bermudez / E. Singer
RECOMMENDATION: Continued to the March 23, 2023 City Council Meeting

REGULAR CALENDAR

13. SUBJECT: Fiscal Year 2022-23 Mid-Year Budget Adjustment and Financial Forecast Update STAFF REPORT: S. Talwar / T. Nossardi
RECOMMENDATION: Adopt Resolution No. 2023-___ A Resolution of the City Council of the City of Citrus Heights Approving Amendments to the Fiscal Year 2022-23 Budget

DEPARTMENT REPORTS

CITY MANAGER ITEMS

ITEMS REQUESTED BY COUNCIL MEMBERS/ FUTURE AGENDA ITEMS

ADJOURNMENT
Agenda Packet Page 3

CITY OF CITRUS HEIGHTS

CITY COUNCIL

MINUTES
Special / Regular Meeting of Thursday, February 23, 2023 City Hall Council Chambers
6360 Fountain Square Dive, Citrus Heights, CA

CALL SPECIAL MEETING TO ORDER

The special meeting was called to order at 5:00 p.m. by Mayor Schaefer.

1. Roll Call: Council Members present: Karpinski-Costa, Lopez-Taff, Middleton, Schaefer Council Members absent: Daniels
Staff present: Jones and Van

PUBLIC COMMENT

None

CLOSED SESSION

2. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to California Government Code Section 54957
Title: City Manager

REPORT OUT OF CLOSED SESSION

There was no reportable action from closed session.

ADJOURNMENT

Mayor Schaefer adjourned the special meeting at 5:33 p.m.

CALL REGULAR MEETING TO ORDER

The regular meeting was called to order at 6:01 p.m. by Mayor Schaefer.

1. The Flag Salute was led by Mayor Schaefer.

2. Roll Call: Council Members present: Karpinski-Costa, Lopez-Taff, Schaefer Council Members absent: Middleton, Daniels
Staff present: Bermudez, Feeney, Huber, Jones, Kempenaar, Nossardi, Piva, Turcotte, Van and department directors.

3. The video statement was read by City Clerk Van.

APPROVAL OF AGENDA

ACTION: On a motion by Council Member Karpinski-Costa, seconded by Council Member Lopez-Taff, the City Council approved the agenda.

Agenda Packet Page 4
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AYES: Karpinski-Costa, Lopez-Taff, Schaefer
NOES: None
ABSENT: Middleton, Daniels

PUBLIC COMMENT

Thomas Spencer addressed the Council to express his pleasure with the Council and the job they are doing.

Kristy Venrick-Mardon stated she runs a local non-profit animal rescue and expressed concerns regarding dumping of animals at the Crosswoods Community Park. She stated they have contacted Animal Control, Police Department, the park district, the neighboring apartment complex, and the library and they have not received any assistance. She stated we have a serious issue in the community.

Jackie Va stated she represents a volunteer community that works with rescues in the area. She stated they have been monitoring the situation at Crosswoods Community Park and they have been trying to work to get the rabbits into new homes. She stated something needs to be done about the rabbits in the park.

Elizabeth Ruppert stated she is a volunteer with the rabbit animal rescue and expressed concerns regarding the dumping of rabbits at the Crosswoods Community Park and the safety issues it brings.

City Clerk Van read the following written public comment from Olivia Ziter, “It is a shame that Citrus Heights has done nothing successful in the 30+ years that domestic rabbits have been dumped habitually and illegally at Crosswoods Community Center. Over all these years, multiple rabbit rescues have tried to step in and stop this problem, but they are scared away often due to harassment from the elderly people living in the nearby apartment complex, the staff at the library near by, and the unhoused people who live in the park. Imagine if this were dogs or cats? If someone was dumping dogs in the park, and the dogs were having babies upon babies, the city would instantly step in to help. Where are they for the rabbits? Where are the police that are supposed to be preventing people from committing crimes like this? Where is Animal Control and the local shelters? Why is the city so good at turning it’s back on this issue?”

City Clerk Van read the following public comment from Cynthia Fagan, “California penal codes 597s and 597.1 state in a nutshell that abandoning pets and neglecting to give them appropriate care are crimes. The rabbits in Crosswoods Community Park are domestic rabbits that have been abandoned and are not receiving appropriate care. Park staff, law enforcement, and animal control are unable to address this issue effectively by themselves, therefore they should work together with each other and with local animal rescues to address the issue. One of many reasons aside from the California penal code for addressing this issue is the fact that residents have spotted coyotes in the area. With self preservation instincts being dulled by breeding for docility, domestic rabbits are easy to catch in comparison to wild rabbits. If coyotes repeatedly go to Crosswoods Community Park, they may acclimate to people and approach small children as prey or try to snatch food and bite in the process. For the health and safety of all: wildlife, domestic pets, and humans, the domestic rabbits should be rehomed by animal control shelters and rescues while park staff and law enforcement work to deter further abandonment through various forms of media, park signage, and cameras.”

City Clerk Van read the following public comment from Bruce Hou, “The City needs to do their job and fix the myriad of issues at Crosswoods Community Park. It is a dumping ground for rabbits and all kinds of unwanted pets. It’s time the City create a project in partnership with the shelter and animal control to deal with this matter. It’s unfair to transfer the burden of caring for this issue into groups that are not based in Citrus Heights.

Citrus Heights must use your own resources to deal with your own problems instead of forcing other groups to Agenda Packet Page 5
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step in. Stop denying your responsibilities and obligations as elected officials. This is an urgent issue that your community cares about and you are not addressing.”

City Clerk Van read the following public comment from Krystal Kwong, “I’ve witnessed the ongoing abuse and neglect of domestic rabbits at Crosswoods Community Center & Park. Many have shared that the abuse of these animals has been going on for over 30 years. Sunrise Parks & Rec and Citrus Heights Animal Services have continually passed the responsibility to other agencies while no one is being held accountable for the ongoing illegal dumping of pets. I have found far too many sick, injured, and deceased pets at this one park and it's appalling that anyone with a heart would allow this to continue. Last year Animal Services confirmed that it was illegal to abandon pets at the park, but they have shared no plan to hold people accountable.

Almost every day the police are in the park watching the unhoused people, but we still have people dumping domestic rabbits and chickens. With Easter coming up we are anticipating an influx of dumped animals in the coming months. The summer of 2021 there were over a dozen rabbits abandoned within 48 hours. Over the years multiple animal rescues have tried to help at this park, but they eventually stopped when they were harassed and faced with violence from people in the park. Last year I discovered a breeder who was hoarding the rabbits in her bedroom and letting them run free in the park when she couldn’t sell them. At one point she had over 20 rabbits in her bedroom. She was never held accountable for her abuse of rabbits.”

Omar Aicardi spoke regarding the unhoused rabbits at Crosswoods Community Park and near the Sylvan Library. He offered to serve as a liaison to figure out a solution.

PRESENTATIONS

4. Recognition of Retiring Employees

Council Member Lopez-Taff read the proclamation recognizing Information Technology Manager Brian Koski on the occasion of his retirement from the City. Brian Koski was unable to attend the meeting.

Council Member Karpinski-Costa read the proclamation recognizing Human Resources Manager Monica Alejandrez on the occasion of her retirement from the City. Monica Alejandrez was unable to attend the meeting.

Mayor Schaefer read and presented a proclamation to Chief Building Official Greg Anderson in recognition of his service to the City.

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

Council Member Karpinski-Costa provided a report from the Sacramento-Yolo Mosquito & Vector Control District Board meeting, the Sacramento Transportation Authority Board meeting, and the Sacramento Area Sewer District Board meeting.

Council Member Lopez-Taff attended the Soroptimist/Kiwanis Crab Feed and the Rotary Crab Feed. She attended the Sunrise MarketPlace Board meeting. She provided a report from the Sacramento Public Library Authority Board meeting. She also attended her neighborhood association meeting.

Mayor Schaefer provided a report from the Sacramento Area Council of Governments Board meeting. He announced Citrus Heights Arts is hosting their first Annual Black History Month A Taste of Soul event on February 25, 2023 from 1 to 4 p.m. at the Citrus Heights Community Center.

Agenda Packet Page 6
Citrus Heights City Council Minutes Thursday, February 23, 2023

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CONSENT CALENDAR

5. SUBJECT: Approval of Minutes
RECOMMENDATION: Approve the Minutes of the Meeting of February 9, 2023

ACTION: On a motion by Council Member Karpinski-Costa, seconded by Council Member Lopez-Taff, the City Council adopted Consent Calendar Item 5.

AYES: Karpinski-Costa, Lopez-Taff, Schaefer
NOES: None
ABSENT: Middleton, Daniels

PUBLIC HEARING

6. SUBJECT: Proposed Ordinance Prohibiting Commercial Vehicle Parking on Public Streets in the City STAFF REPORT: A. Turcotte / R. Jones
RECOMMENDATION: Introduce for a First Reading, read by title only, and waive the full reading of Ordinance No. 2023-001 An Ordinance of the City Council of the City of Citrus Heights Adding Section 94-281 to Article IV Division I of the Citrus Heights Municipal Code Relating to Prohibiting Commercial Vehicle Parking on Public Streets in the City

Police Chief Turcotte provided an overview of the City’ current Municipal Code regulations concerning commercial vehicle parking in residential districts. The proposed amendments would extend the parking prohibitions to non-residential districts. He stated the purpose of the ordinance is to promote public safety and walkability in the City by prohibiting the parking of commercial vehicles on public streets in the City. He explained fine amounts will be set by resolution of the City Council at a future meeting. A flyer was created and dispersed to commercial vehicle owners and drivers near problematic areas since January 23, 2023. He stated that following posting of the proposed ordinance, staff received feedback that the language may be too vague and said the following language could be inserted into the ordinance, “No person shall park any commercial vehicle for more than one hour on any highway in a residential district or move and repark such vehicle on any highway in a residential district within 300 feet of the original parking site within any 24-hour period except while loading or unloading property or in connection with and in the aid of the performance of a service to or on a property adjacent to the block in which such vehicle is parked and only for such time in addition to one hour that is reasonably necessary to complete such loading, unloading or service.”

Council questions followed. City Attorney Jones and Chief Turcotte responded to questions.

Mayor Schaefer opened the public hearing at 6:54 p.m.

Scott Brown owns a commercial vehicle and expressed opposition to the ordinance and the ability to park his commercial vehicle.

City Clerk Van read the following written comment from Sunrise MarketPlace Executive Director Kathilynn Carpenter, “Last Fall, we were alerted by property owners along Sunrise Vista of an issue with large commercial vehicles parking on the street. This caused a few problems. The trucks blocked business signage and, more importantly, were difficult to see around when pulling out of Sunrise Rollerland, India Oven, and other business entrances. Officer Schouten noted that it was a hazard when cars had to pull into the oncoming Agenda Packet Page 7
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lane to see around the trucks. We requested the City review this and see if an ordinance could address the problem. We support this ordinance, which will benefit Sunrise Vista and other areas in the City experiencing similar issues. We greatly appreciate the City and CHPD responding quickly and effectively with this ordinance.”

Mayor Schaefer closed the public hearing at 6:58 p.m.

Council questions and comments followed.

ACTION: On a motion by Council Member Karpinski-Costa, seconded by Council Member Lopez-Taff, the City Council introduced for a First Reading, read by title only, and waived the full reading of Ordinance No. 2023- 001 An Ordinance of the City Council of the City of Citrus Heights Adding Section 94-281 to Article IV Division I of the Citrus Heights Municipal Code Relating to Prohibiting Commercial Vehicle Parking on Public Streets in the City, as amended to add language from Citrus Heights Municipal Code Section 297(f) as noted in Staff’s presentation.

AYES: Karpinski-Costa, Lopez-Taff, Schaefer
NOES: None
ABSENT: Middleton, Daniels

7. SUBJECT: Addition and Amendments to Adopted Master Fee Schedule STAFF REPORT: S. Talwar / T. Nossardi
RECOMMENDATION: Adopt Resolution No. 2023-015 A Resolution of the City Council of the City of Citrus Heights, California, Establishing a New Fee and Amending the City User Fees for Certain Services Provided

Finance Manager Nossardi stated the updates to the Master Fee Schedule include shopping cart retrieval fees pursuant to Ordinance No. 2022-012 adopted by City Council – $25 shopping cart retrieval fee and $50 excessive cart impound per occurrence. She also explained that the Rental Housing Inspection Fees that were approved by Council in 2018 are now included in the Master Fee Schedule. Staff recommends reducing the planning fee for Parcel Map-Urban Lot Split from $5,000 to $2,000 based on actual costs. Staff also recommends adding a section titled “City-Wide” and move the appeal fee to this section.

Mayor Schaefer opened the public hearing at 7:11 p.m., hearing no speakers he closed the public hearing.

Council questions and comments followed. City Attorney Jones and Community Development Director Kempenaar responded to questions.

ACTION: On a motion by Mayor Schaefer, seconded by Council Member Karpinski-Costa, the City Council adopted Resolution No. 2023-015 A Resolution of the City Council of the City of Citrus Heights, California, Establishing a New Fee and Amending the City User Fees for Certain Services Provided, as amended to keep the planning fee for Parcel Map-Urban Lot Split at $5,000.

AYES: Karpinski-Costa, Lopez-Taff, Schaefer
NOES: None
ABSENT: Middleton, Daniels

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Citrus Heights City Council Minutes Thursday, February 23, 2023

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REGULAR CALENDAR

8. SUBJECT: Resolution to Adopt Affordable Housing Ownership Program Guidelines STAFF REPORT: C. Kempenaar / A. Bermudez / N. Piva
RECOMMENDATION: Adopt Resolution No. 2023-___ A Resolution of the City Council of the City of Citrus Heights, California, Adopting the Affordable Housing Ownership Program Guidelines and finding the Project is Categorically Exempt from Review under California Environmental Quality Act (CEQA) pursuant to CEQA guidelines section 15061(b)(3)

Senior Planner Bermudez explained the purposes of the guidelines is to address affordable home ownership with potential new development.

Robyn van Ekelenburg and Teresa Martinez Gonzales with Housing INC provided an overview of the program guidelines: a framework for a successful, equitable and compliant affordable housing program; establishes processes and procedures; outlines roles, responsibilities and covenants for stakeholders and participants; and a roadmap for long-term monitoring and reporting activities and practices. The program guidelines apply to new home development projects and create future homeownership opportunities for people who live and work in Citrus Heights.

Council questions and comments followed.

City Manager Feeney stated the Council could continue this item to a future meeting when all Council Members are present and have a wider discussion.

Item 8 was continued to a future City Council meeting.

9. SUBJECT: Citrus Heights Business Attraction Incentive Program Approval STAFF REPORT: M. Huber
RECOMMENDATION: Adopt Resolution No. 2023-___ A Resolution of the City Council of the City of Citrus Heights, California, Approving the Citrus Heights Business Attraction Incentive Program Guidelines and Allocated $500,000 in American Rescue Plan Act Funds to Administer the Program Through June 30, 2024

Mayor Schaefer recommended moving Item 9 to a future meeting when all Council Members are present.

Item 9 was continued to a future City Council meeting.

10. SUBJECT: Budget Allocation for “Citrus Heights Cares” Community Pride and Cleanliness Campaign STAFF REPORT: M. Huber
RECOMMENDATION: Adopt Resolution No. 2023-018 A Resolution of the City Council of the City of Citrus Heights, California, Allocating $47,000 in American Rescue Plan Act Funding to Create and Implement the Citrus Heights Cares Community Beautification Campaign

Economic Development and Community Engagement Director Huber stated the item is to consider implementation and budget allocation for the Citrus Heights Care Campaign. Staff is recommended a budget allocation of $47,000 for light pole and commercial center signage, as well as advertising and branded Agenda Packet Page 9
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promotional items to continue the City’s efforts in educating the community about the City’s Beautification Program.

ACTION: On a motion by Council Member Karpinski-Costa, seconded by Lopez-Taff, the City Council adopted Resolution No. 2023-018 A Resolution of the City Council of the City of Citrus Heights, California, Allocating $47,000 in American Rescue Plan Act Funding to Create and Implement the Citrus Heights Cares Community Beautification Campaign.

AYES: Karpinski-Costa, Lopez-Taff, Schaefer
NOES: None
ABSENT: Middleton, Daniels

DEPARTMENT REPORTS

None

CITY MANAGER ITEMS

City Manager Feeney highlighted some newly installed garbage receptacles and benches at four locations along the Old Auburn Trail as a Neighborhood Improvement Project partnership with CHASEN. He noted repairs have been made to the center median bricks on Sunrise Boulevard. Lastly, he announced the Block Party Trailer is open for reservations.

ITEMS REQUESTED BY COUNCIL MEMBERS/ FUTURE AGENDA ITEMS

Council Member Karpinski-Costa requested a future agenda item regarding proposed legislation AB 742 which would prohibit the use of police K-9’s in certain circumstances. Council Member Lopez-Taff and Mayor Schaefer supported the request.

ADJOURNMENT

Mayor Schaefer adjourned the regular meeting at 8:08 p.m.

Respectfully submitted,

__________________________
Amy Van, City Clerk
Agenda Packet Page 10
Printed on Recycled Paper

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE
: March 9, 2023
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FRO
M: Susan Talwar, Administrative Services Director
Alberto Preciado, Accounting Manager
SU
BJECT: Quarterly Treasurer’s Report
Summary and Recommendation
St
aff recommends the City Council receive and file the Quarterly Treasurer’s Report for the quarter ending December 31, 2022. This report is a standard quarterly report submitted in accordance with the provisions of California Government Code Section 53646(b) whereas it states the treasurer or chief fiscal officer may render a quarterly report to the chief executive officer, the internal auditor, and the legislative body of the local agency.

Fiscal Impact
Th
ere is no fiscal impact associated with this action. The attached report is for informational purposes on the effects of current market conditions to the City’s investment portfolio.

Background and Analysis
The
market value of cash and investments for all City funds on December 31, 2022 was $40,795,559 down from $41,531,752 on September 30, 2022. The reduction is mainly due to the withdrawal of cash and investments to cover expenditures during the second quarter due to the delay in revenue payments received. This is consistent with prior fiscal years for the same quarter period and displays the need for adequate surplus of funds in reserves.

The
breakdown of the City’s investment portfolio and current rate of return is as follows:

Market Value
as of 12/31/22
Rate of Return
as of 12/31/22
Local Agency Investment Funds (LAIF) $37,431,944 2.070% US Bank – General Account $3,363,584 0.00%
Treasuries/CD/Charles Schwab $31 0.00%
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Subject: Quarterly Treasurer’s Report
Date: March 9, 2022

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Significant deposits for FY22-23 second quarter included:

Sales Tax received through December 31, 2022 $3,789,164 CalTrans Grant Reimbursements received through December 31, 2022 $1,175,140

Included in the City’s investment portfolio are the uncommitted American Rescue Plan Act (ARPA) funds at $5,800,632 through December 31, 2022. The amount committed by Council through the same date is $9,876,340.

Amount received from US Treasury in May 2021 & 2022 $15,676,972 Expended Amount through December 31, 2022 $3,058,702
Committed Amount through December 31, 2022 $6,817,638
Remaining Uncommitted Amount through December 31, 2022 $5,800,632 Committed and proposed allocation through March 23, 2023* $1,127,000 Tentative Remaining Uncommitted Amount through March 9, 2023 $4,673,632 *$80,000 allocated for Patriotic Event at the January 26, 2023 City Council meeting; and $47,000 allocated for the Citrus Heights Cares Campaign at the February 23, 2023 City Council meeting; and $1,000,000 for the Business Attraction Grant Program proposed but not yet approved, to be deliberated on by City Council at the March 23, 2023 meeting.

The breakdown of Council approved committed ARPA funds:

Date of Council
Approval Project Name
Adopted
ARPA
Funds
6/24/21 Rehire Public Safety staff to pre-pandemic levels FY 21/22 $1,570,104 6/24/21 Rehire Public Safety staff to pre-pandemic levels FY 22/23 $2,811,775 1/13/22 Small Business COVID Recovery Grant $281,111
6/23/22 Beautification Crew Pilot Program $875,000
6/23/22 Police Fleet Vehicles & Equipment $1,400,000
6/23/22 Public Safety Communications Center Critical Needs $600,000 6/23/22 Block Party Trailer – Economic Development $50,000 9/22/22 Community Projects Grant Program $50,000
10/27/22 ERP System and Technology $1,198,350
12/08/22 Infrastructure Financing Strategies $40,000
12/08/22 REAP 2.0 (if grant approved) $1,000,000
Committed Amount through December 31, 2022 $9,876,340

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Subject: Quarterly Treasurer’s Report
Date: March 9, 2022

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Attachments

1. Treasurer’s Report as of December 31, 2022.

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RCM Robinson Capital Management LLC
27 Reed Boulevard
Mill Valley, CA 94941
Phone: 415-771-9421
Fax: 415-762-1980
City of Citrus Heights

Report period December 1, 2022 – December 31, 2022
The Treasurer's investment portfolio is in compliance with the California Government Code Section 53601.

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Agenda Packet Page 14

*LAIF apportionment rate.

Inflation

The consumer price index (CPI) eased in November by more than forecast, to a 7.1 percent rate and up 0.2 percent from October. The core rate (less fo od and energy) was up 0.1 in November, and 6 percent over the year. Lower energy, used car and truck prices were the major contributors to the better-than- expected inflation dat a. The Federal Reserve’s favorite inflation indicator, Core P CE, rose slightly above expectation s in November, up 4.7 percent over the year, b ut in-line for the month, up 0.2 percent.

Q3 GDP

The third estimate Q3 GDP shows the US economy grew at an annual pace of 3.2 percent, higher than the previous 2.9 percent estimate. Personal consumption, the main contributor,
advancing 2.3 percent compared to 1.7 percent in the previous estimate, reflecting stronger services spending.

Confident consumer
US consumer confidence rose in December by more than
forecast to the highe st level since April as inflation eased and gasoline prices dropped. The index increased to 108.3 this month from an upwardly revised 101.4 reading in November .

Consumers were slightly more upbeat about current and future labor-market conditions and an easing in inflation expectations.

Fed watch
Federal Reserve members voted to raise the Fed Funds rate

0.75 percent to target 4.25-4.50 at the December 14th FOMC meeting. Fed members also increased their median 2023 Funds forecast to 5.125, while 7 of the 17 members expect Fed Funds to end 2023 at over 5.40 percent.

Institutional Fixed Income Market Review
December 31, 2022
Source: Bloomberg; rates as of market close 12/30/22
Month of December
change in treasury rates
(3 month through
5 year maturities)
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Agenda Packet Page 15

CITY OF CITRUS HEIGHTS

SUMMARY OF INVESTMENTS
INVESTMENT PORTFOLIO DECEMBER 31, 2022

COST FACE MARKET PERCENT DAYS TO YIELD TO WEIGHTED

MATURITY MATURITY YIELD
STATE-LOCAL AGENCY INVESTMENT FUNDS 37,431,944.17 37,431,944.17 37,431,944.17 91.8% 1 2.070% 1.899%

GENERAL ACCOUNT/US BANK 3,363,584.36 3,363,584.36 3,363,584.36 8.2% 1 0.000% 0.000% FEDERAL AGENCIES/TREASURIES/CD'S/SCHWAB 30.58 30.58 30.58 0.0% GRAND TOTAL INVESTMENT PORTFOLIO 40,795,559.11 40,795,559.11 40,795,559.11 100% 1 2.042% 1.899%

LOCAL AGENCY INVESTMENT FUND (LAIF) RATE OF RETURN 2.070% CITY WEIGHTED AVERAGE RATE OF RETURN (including non-interest bearing checking) 1.899%

CITY EFFECTIVE RATE OF RETURN DECEMBER 2022 2.070%
CITY EFFECTIVE RATE OF RETURN FISCAL YEAR TO DATE 1.700% CITY INTEREST EARNINGS FISCAL YEAR TO DATE 346,601.75
In accordance with California Government Code Section 53646 as amended, the following certification accompanies this report:

The Finance Director of the City of Citrus Heights hereby certifies that sufficient investment liquidity exists and anticipated revenues are available to meet the City's budgeted expenditure requirements for the next six months. In addition, it is hereby certified that investments in the City's portfolio comply with the requirements of the City of Citrus Height's adopted investment policy.

Respectfully submitted,
Susan Talwar
Administrative Services Director
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CITY OF CITRUS HEIGHTS DETAIL OF PORTFOLIO INVESTMENTS

DECEMBER
2022
SymPro Cusip Moody's S & P Book Value Face Value Market Value Rate YTM Purchase Maturity Maturity/Call Number Rating Rating Date Date Days

LOCAL AGENCY INVESTMENT FUND
Local Agency Investment Fund 37,431,944.17 37,431,944.17 37,431,944.17 2.070% 2.070% 1 TOTAL 37,431,944.17 37,431,944.17 37,431,944.17 1

GENERAL ACCOUNT/US BANK
US Bank Corporate Checking 3,363,584.36 3,363,584.36 3,363,584.36 0.000% 0.000% 1 TOTAL 3,363,584.36 3,363,584.36 3,363,584.36 1

CUSTODY ACCOUNT/SCHWAB
Schwab Bank Sweep (FDIC) 30.58 30.58 30.58 0.440% 0.440% 1 TOTAL 30.58 30.58 30.58 1

MEDIUM TERM NOTES/FEDERAL AGENCY/CERTIFICATES OF DEPOSIT/ TREASURY COUPON SECURITIES TOTAL 0.00 0.00 0.00
TOTAL INVESTMENT PORTFOLIO 40,795,559.11 40,795,559.11 40,795,559.11

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Agenda Packet Page 17
City of Citrus Heights
Portfolio Management
Portfolio Statistics and Performance
December 31, 2022
Portfolio Liquidity Portfolio Composition
Aging Interval Par Value Investment Type Market Value 1 - 90 Days 40,795,559 Managed Pools/Checking 40,795,559 91 Days - 1 Year 0 Federal Agency Issues 0
1 - 2 Years 0 U.S. Treasuries 0
2 - 3 Years 0 Corporate Notes 0
3 - 4 Years 0 Certificates of Deposit 0
4 - 5 Years 0
TOTAL 40,795,559
*To maturity (does not include call date)
Run Date:
2/10/2023 12:08 Portfolio CHTS
Managed
Pools/Checking
100%

0.0 0.5

1.0 1.5

2.0 2.5

3.0 3.5

4.0 4.5
Dec'21 Jan'22 Feb'22 March'22 April'22 May'22 June'22 July'22 August'22 Sept'22 Oct'22 Nov'22 Dec'22 Benchmark and Portfolio Yields
City
Portfolio
2-Year
Treasury
*LAIF
Monthly
Rate
Local Agency Investment Fund (LAIF) average monthly effective yield 2 Year US Treasury notes month-end yield
Portfolio yield month-end effective rate of return
% Yield
Local Agency Investment Fund (LAIF) average monthly effective yield 2 Year US Treasury notes month-end yield
Portfolio yield month-end effective rate of return
% Yield
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Agenda Packet Page 18
Disclosures:

Advisory services offered through RCM Robinson Capital Management LLC, SEC Registered Investment Advisor. Securities offered through Securities America, Inc., Member FINRA/SIPC. Douglas C. Robinson, Registered Representative. RCM Robinson Capital Management LLC and Securities America, Inc. are separate entities.

Information contained herein is based on sources and data believed to be reliable but is not guaranteed. This is not an offer to buy or sell securities. This data is for informational purposes and is not intended to replace statements, confirms, or 1099 Forms d istributed by the custodian(s) of your assets. Past performance does not guarantee future results. This report is a combination of multiple account registrations and/or positions from various product sponsors and entities and may include assets not held by Securities America. Values for “held away assets” have not been verified. These assets may not be covered by SIPC coverage. Securities America’s SIPC coverage extends only to assets held at our firm. For assets held away from Securities America, contact your financial representative at those entities with questions regarding their SIPC membership and cov erage, and/or the accuracy of positions, share prices and share amounts.

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CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE
: March 09, 2023
TO: Mayor and City Council Members
Ashley Feeney, City Manager
FRO
M: Susan Talwar, Administrative Services Director
SU
BJECT: Approval of Investment Policy for Fiscal Year 2022-23 Summary and Recommendation
Staff recommends that the City Council adopt Resolution No. 2023-___, a Resolution of the City Council of the City of Citrus Heights approving the Investment Policy and delegating authority to the Administrative Services Director to invest funds in accordance with the Investment Policy.

Fiscal Impact
There is no fiscal impact associated with this action.

Background and Analysis
The investment of City funds is governed by California Government Code sections 53600-53610 and 53646. The City Council periodically reviews the City’s Investment Policy to ensure compliance with the provisions of the Government Code. The City’s Investment Policy was last updated by the City Council on June 10, 2021. Staff, City Attorney Ryan Jones, and City Investment Services Firm Chandler completed an annual review of the City’s Investment Policy and is recommending the following modifications:

Th
e main changes to the investment policy with a focus on best practice and legal updates are:
o Policy: Updated language to acknowledge sources used for industry best practices and recommendations. (BEST PRACTICE)
o Scope: Added language referencing Code to provide a reference to California Code addressing the scope of the Authority's investment program. (BEST

PRACTICE)
o General Objectives - Safety: Moved the discussion of credit risk and market risk to its own section towards the end of the policy to allow for further elaboration on those items (Titled Risk Management and Diversification). (BEST PRACTICE) o Ethics and Conflicts of Interest: Incorporated language to elaborate on the role of all participants in this process. (BEST PRACTICE)
o Delegation of Authority: Added in language addressing the City of Citrus Heights ability to engage external investment advisers. (BEST PRACTICE) Item 8
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Subject: Approval of Investment Policy for Fiscal Year 2022-23 Date: March 9, 2023

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o Internal Controls: Concluded the section with a statement regarding the importance of a periodic independent analysis by an external auditor. (BEST

PRACTICE)
o Authorized Financial Dealers and Institutions: Augmented existing language to include Code requirements and require competitive transactions. (LEGAL) o Safekeeping & Custody: Specified the expectations of a third-party custodian. (BEST PRACTICE)
o Suitable and Authorized Investments:
• Updated language describing requirements for the following asset types:
 US Treasury Bills, Notes & Bonds: Combined the descriptions for Bills, Notes and Bonds in to one concise description. (BEST

PRACTICE)
 US Agency: Updated language to include a max on callable agency securities within the investment portfolio and moved descriptions of possible issues to the glossary. (BEST PRACTICE)
 Non-Negotiable Certificate of Deposit (CD): Refined the language surrounding Non-Negotiable Certificates of Deposit (aka Federally Insured Time Deposits). (BEST PRACTICE)
 Commercial Paper: Aligned language currently permitting commercial paper closer to the language used in Code. (LEGAL)  Repurchase Agreements: Included language regarding a Master Repurchase Agreement (LEGAL)
 Municipal Securities (CA & Local Agencies): Completed the description by noting the maximum maturity of five years. (LEGAL)
 Mutual Funds & Money Market Mutual Funds: Noted a 20% max for investing in mutual funds and money market mutual funds within the total portfolio. Increased the max from 10% to 20% to be invested in Money Market Mutual Funds within the total portfolio. (LEGAL)
• Added the following asset classes to the policy to allow for more diversification opportunities: (LEGAL)
 Municipal Securities (CA and other 49 states)
 Collateralized Bank Deposits
 Asset-Backed, Mortgage-Backed, Mortgage Pass-Through
Securities, and Collateralized Mortgage Obligations
 Supranationals – organization made up of two or more
governments to promote economic development, for example bonds issued by the European Investment Bank
o Collateralization: Broadened the section to better describe collateralization requirements (LEGAL)
o Investments Not Approved: Expanded the section to include investments prohibited by Code Section 53601.6, as well as prohibiting speculation, trading on margin, purchasing foreign currency denominated securities, and purchasing Item 8
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private placement securities unless the City is deemed a Qualified Institutional Buyer (QIB). (LEGAL)
o Diversification: Moved this section to be included in one above titled "Risk Management and Diversification". (BEST PRACTICE)
o Performance Evaluation: Inserted a new paragraph describing the approach to evaluate investment performance. (BEST PRACTICE)
o Performance Standards: Revised the section to summarize the use of market benchmark(s) and the design of the investment portfolio. (BEST PRACTICE) o Legislative Changes: Removed as the language is now included in the "Risk Management and Diversification" section. (BEST PRACTICE) o Glossary: Added descriptions in for each Agency we may be inclined to purchase on behalf of the City to fall under the Agency portion. (BEST PRACTICE)

The Investment Policy was reviewed with the Finance and Administration Committee on March 2, 2023.

Attachments

1. Resolution Approving the Investment Policy

2. Proposed Investment Policy (final version)

3. Proposed Investment Policy (redline version)

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Agenda Packet Page 22
RESOLUTION NO. 2023 - ____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS

HEIGHTS APPROVING THE INVESTMENT POLICY AND

DELEGATING AUTHORITY TO THE ADMINISTRATIVE SERVICES

DIRECTOR TO INVEST FUNDS IN ACCORDANCE WITH THE

INVESTMENT POLICY

WHEREAS, consistent with legal compliance to the California Government Code;

WHEREAS, the policy has been updated to reflect industry best practices and.

NOW, THEREFORE, BE IT RESOLVED , the City Council finds that the City’s Investment Policy complies with California Government Code Sections 53600 et seq., which governs investment practices of local governments; and

BE IT FURTHER RESOLVED the City Council of the City of Citrus Heights adopts the attached City of Citrus Heights Investment Policy.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 9
th day of March, 2023, by the following vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Tim Schaefer, Mayor
ATTEST:

Amy Van, City Clerk

Exhibit:

A. Investment policy
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City of Citrus Heights
Investment Policy
March 9, 2023
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Table of Contents
I. PURPOSE .......................................................................................................................... 3 II. POLICY ............................................................................................................................. 3 III. SCOPE ............................................................................................................................... 3 IV. GENERAL OBJECTIVES ............................................................................................... 3 A. Safety ............................................................................................................................................... 3 B. Liquidity ........................................................................................................................................... 4 C. Yield (Return on Investment) .......................................................................................................... 4 V. STANDARDS OF CARE ................................................................................................. 4 A. Prudence .......................................................................................................................................... 4 B. Ethics and Conflicts of Interest ...................................................................................................... 4 C. Delegation of Authority ................................................................................................................... 5 D. Internal Controls ............................................................................................................................. 5 E. Review of Investment Portfolio ....................................................................................................... 5 VI. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS ............................... 6 VII. SAFEKEEPING AND CUSTODY .................................................................................. 7 VIII. SUITABLE AND AUTHORIZED INVESTMENTS ..................................................... 7 A. Investment Types ............................................................................................................................. 7 B. Collateralization ............................................................................................................................ 12 C. Investments Not Approved ............................................................................................................ 12 D. Risk Management and Diversification .......................................................................................... 12 IX. INVESTING PARAMETERS ....................................................................................... 13 X. REPORTING .................................................................................................................. 14 XI. PERFORMANCE EVALUATION ............................................................................... 14 XII. PERFORMANCE STANDARDS .................................................................................. 14 XIII. INVESTMENT POLICY COMPLIANCE AND ADOPTION ................................... 15 A. Policy Compliance and Changes .................................................................................................. 15 B. Annual Statement of Investment Policy ....................................................................................... 15 APPENDIX ..................................................................................................................................... 16

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City of Citrus Heights Investment Policy June 2021 3
I. PURPOSE
The purpose of this Investment Policy is to provide guidance and direction for the prudent investment of the City of Citrus Heights (“City”) funds and to foster the creation of a systematic and controlled investment process. The ultimate goal of this Investment Policy is to maximize the efficiency of the City's cash management system and to enhance the economic status of the City while protecting its invested funds.

II. POLICY
It is the policy of the City to invest public funds in a prudent manner that will provide maximum security, adequate liquidity and sufficient yield, while meeting the daily cash flow demands of the City and conforming to all statutes and regulations governing the investment of public funds. This policy is written to incorporate industry best practices and recommendations from sources such as the Government Finance Officers Association (GFOA), California Municipal Treasurers Association (CMTA), California Debt and Investment Advisory Commission (CDIAC) and the Association of Public Treasurers (APT).

III. SCOPE
This investment policy applies to all funds and investment activities under the direct authority of the City, as set forth in the State Government Code, Sections 53600 et seq., These funds are accounted for in the City's Annual Comprehensi ve Financial Report and include: General Fund, Special Revenue Funds, Capital Project Funds, Enterprise Fund, Internal Service Funds and Fiduciary Funds. The following are not governed by this policy:
 Funds excluded from this policy include the City's Retiree Healthcare Plan which is administered and managed separately by the California Employers' Retiree Benefit Trust (CERBT) Fund under the California Government Code Section 53620- 53622 and bond proceeds which are subject to the conditions and restrictions of bond documents and are not governed by this policy.
 Any other funds specifically exempted by the City Council.

Pooling of Funds
Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.

IV. GENERAL OBJECTIVES
The primary objectives, in priority order, of the City's investment activities are safety, liquidity and yield.

A. Safety
Preservation of principal is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective shall be to mitigate credit risk and market risk. To attain this objective, the City shall diversify its inve stments by investing funds among several financial institutions and a variety of securities offering independent returns.

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City of Citrus Heights Investment Policy June 2021 4
B. Liquidity
The City's investment portfolio shall remain sufficiently liquid to enable the City to meet all operating requirements that might be reasonably anticipated without requiring a sale of securities. Since all possible cash demands cannot be anticipated, the portfolio shall consist largely of securities with active secondary or resale markets. A portion of the portfolio also may be placed in money market mutual funds or LAIF, which offer same-day liquidity for short-term funds.

C. Yield (Return on Investment)
The City's investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, commensurate with the City's investment risk constraints and the liquidity characteristics of the portfolio. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed.

V. STANDARDS OF CARE
A. Prudence
The standard of prudence to be used by City investment officials in the management of City moneys shall be the Prudent Investor Standard as authorized under Section 53600.3 of the California Government Code, which shall be applied in the context of managing all aspects of the overall portfolio. Investments shall be made with the care, skill, prudence, and diligence, under circumstances then prevailing, including but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims to safeguard the principal and maintain the liquidity needs of the City. This standard shall be applied in the context of managing the overall portfolio.

City investment officers acting in accordan ce with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

B. Ethics and Conflicts of Interest
All participants in the investment process shall act as custodians of the public trust.

Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. Officers and employees involved in the City investment pr ocess shall refrain from personal business activity that could conflict with proper execution of the investment program, or that could impair their ability to make impartial investment decisions. City employees and investment officials shall disclose any material financial interests in financial institutions that conduct business within their jurisdiction, and they shall further disclose any personal financial/investment positions that could be related to the performance of the City immediately to the Citrus Heights City Manager and annually to the Fair Political Practices Commission. City employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City.

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City of Citrus Heights Investment Policy June 2021 5

C. Delegation of Authority
Authority to manage the City ’s investment program is derived from California Government Code, Sections 41006 and 53600 et seq. The City Council is responsible for the management of the City’s funds, including the administration of this investment policy, and delegates to the Administrative Services Director the authority to invest or to reinvest funds, or to sell or exchange securities. The Administrative Services Director shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or expires. The Finance Manager and Accounting Manager are authorized to conduct investment related activities, under the supervision of the Administrative Services Director, on behalf of the City.

The City may engage the services of one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. Extern al investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy. The City's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust.

The City recognizes that in a diversified portfolio, occasional measured losses may be inevitable and must be considered within the context of the overall portfolio’s return and the cash flow requirements of the City.

D. Internal Controls
The Administrative Services Director is responsible for establishing and maintaining a system of written internal controls. The internal controls shall be designed to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third parties, unanticipated changes in financial markets, or imprudent action by City employees and officers. The internal structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that ( 1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management.

The internal controls shall address the following points:
■ Segregation of Duties
■ Custodial Safekeeping
■ Delivery versus Payment (DVP)
■ Delegation of Authority
■ Documentation of Transactions

Periodically, as deemed appropriate by the City and/or the City Council, an independent analysis by an external auditor shall be conducted to review internal controls, account activity and compliance with policies and procedures.

E. Review of Investment Portfolio
The securities held by the City must be in compliance with Section VIII (Suitable and Authorized Investments) at the time of purchase. Because some securities may not comply with Section VIII subsequent to the date of purchase, the Administrative Services Director shall at least quarterly review the portfolio to identify those securities that do not comply.

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City of Citrus Heights Investment Policy June 2021 6
The Administrative Services Director shall establish procedures to report to the City Council, major and critical incidences of noncompliance identified through the review of the portfolio.

VI. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The Administrative Services Director shall endeavor to complete investment transactions using a competitive bid process whenever possible. The City’s Administrative Services Director will determine which financial institutions are authorized to provide inve stment services to the City. It shall be the City’s policy to purchase securities only from authorized institutions and firms.

The Administrative Services Director shall maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence as determined by the City. Due inquiry shall determine whether such authorized broker/dealers, and the individuals covering the City are reputab le and trustworthy, knowledgeable and experienced in Public City investing and able to meet all of their financial obligations. These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).

In accordance with Section 53601.5, institutions eligible to transact investment business with the City include:
 Institutions licensed by the state as a broker-dealer.  Institutions that are members of a federally regulated securities exchange.  Primary government dealers as designated by the Federal Reserve Bank and non -primary government dealers.
 Nationally or state-chartered banks.
 The Federal Reserve Bank.
 Direct issuers of securities eligible for purchase.

Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the City, except where the City utilizes an external investment adviser in which case the City may rely on the adviser for selection.

All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Administrative Services Director with audited financials and a statement certifyi ng that the institution has reviewed the California Government Code, Section 53600 et seq . and the City’s investment policy. The Administrative Services Director will conduct an annual review of the financial condition and registrations of such qualified bidders.

Public deposits will be made only in qualified public depositories as established by State law.

Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.

Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be Item 8
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City of Citrus Heights Investment Policy June 2021 7
selected on a competitive basis and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

VII. SAFEKEEPING AND CUSTODY
All security transactions, including collateral for repurchase agreements, entered into by the City shall be conducted on a delivery -versus-payment (DVP) basis, which will ensure that securities are deposited in an eligible financial institution prior to the release of funds. To protect against potential losses due to failure of individual s ecurities dealers, and to enhance access to securities, interest payments and maturity proceeds, all cash and s ecurities shall be held in safekeeping in the City’s name by a third -party custodian designated by the Administrative Services Director, acting for the City under the terms of a custody agreement executed by the bank and the City. All investment transactions will require a safekeeping receipt or acknowledgment generated from the trade. A monthly report will be received by the City from the custodian listing all securities held in safekeeping with current market data and other information. The only exception to the foregoing shall be depository accounts and securities purchases made with: State of California Local Agency Investment Fund (LAIF), time certificates of deposit , and mutual funds and money market mutual funds, since the purchased securities are not deliverable. The Administrative Services Director shall be bonded to protect the public against possible embezzlement and malfeasance.

VIII. SUITABLE AND AUTHORIZED INVESTMENTS
The City’s investments are governed by California Government Code, Sections 53600 et seq.

Within the investments permitted by the Code, the City seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this policy and the Code, the more restrictive parameters will take precedence.

The City is empowered by statute to invest in the following types of securities:

A. Investment Types

2. U.S. GOVERNMENT AGENCY ISSUES AND GOVERNMENT SPONSORED ENTERPRISES. This includes obligations, participations, or other instruments of, or issued by, a federal government agency or a United States government -sponsored enterprise. No more than 30% of the portfolio may be invested in any single Agency/Government Sponsored Enterprise and there shall be no more than 20% of agency callable securities in the portfolio. The maximum maturity shall not exceed five (5) years.

3. LOCAL AGENCY INVESTMENT FUND (LAIF). As authorized in Government Code Section 16429.1, local agencies may invest in the Local Agency Investment Fund (LAIF), a pooled investment money market fund established by the State of California, and overseen by the State Treasurer, which allows local agencies to pool their investment resources. Principal may be withdrawn on a one-day notice. Interest earned is paid quarterly. The fees charged are limited to one
- qua
rter of one percent of the
earnings of the fund. Current policies of LAIF set minimum and maximum amounts of monies that may be invested as well as maximum numbers of transactions that are allowed per month. The City may invest up to the maximum amount permitted by LAIF.

LAIF is in trust in the custody of the Sta te Treasurer. The City's right to withdraw its deposited monies from LAIF is not contingent upon the State's ability to adopt a State Budget by July 1st of each new fiscal year.

4. BANKER'S ACCEPTANCE. Otherwise known as bills of exchange or time drafts, are negotiable instruments with a maturity of six months or less drawn on and accepted by a commercial bank. These instruments must be rated "A-1" or its equivalent or better by at least one Nationally Recognized Statistical Rating Organization (NRSRO); or long-term debt obligations which are rated in a category of "A" or its equivalent or better by at least one NRSRO. Banker's Acceptances are usually created to finance the import or export of goods, or the shipment of goods within the United States. No more than 40% of the portfolio may be invested in Banker's Acceptances. No more than 5% of the portfolio may be invested in any single issuer. The maximum maturity may not exceed 180 days.

5. NON-NEGTIABLE CERTIFICATE OF DEPOSIT (CD). As authorized in Government Code Section 53601.8, local agencies may invest in Certificates of Deposit. These instruments must comply with Government Code Sections 16500 or 16600. This is a receipt for funds deposited in a Bank or Savings and Loan Association for a specified period at a specified rate of interest. No more than 20% of the portfolio may be invested in certificates of deposit. Maturities may not exceed five (5) years.

6. NEGOTIABLE CERTIFICATE OF DEPOSIT (NCD). Allowable certificates of deposits must be issued by a nationally or state -chartered bank or a state or federal association, a state or federal credit union, or by a federally licensed or state licensed branch of a foreign bank. The amount of the NCD insured up to the FDIC limit does not require any credit ratings. Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated "A-1" or its equivalent or better by at least one NRSRO; or long -term obligations rated in a rating category of Item 8
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City of Citrus Heights Investment Policy June 2021 9
"A" or its equivalent or better by at least one NRSRO. The maturity period for this investment vehicle may not exceed five (5) years unless approved by the Council. No more than 30% of the total portfolio may be invested in these securities. No more than 5% of the portfolio may be invested in any single issuer.

7. COMMERCIAL PAPER. As authorized in Government Code Section 5360l(h), provided that the securities are issued by an entity that meets all of the following conditions in either paragraph (a) or (b) and other requirements specified below:
 Securities issued by corporations:
 A corporation organized and operating in the United States with assets more than $500 million.
 The securities are rated “A-1” or its equivalent or better by at least one NRSRO.  If the issuer has other debt obligations, they must be rated in a rating category of “A” or its equivalent or better by at least one NRSRO.

 Securities issued by other entities:
 The issuer is organized within the United States as a special purpose corporation, trust, or limited liability company.
 The securities must have program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond.  The securities are rated “A-1” or its equivalent or better by at least one NRSRO.

8. REPURCHASE AGREEMENTS. As authorized in Government Code Section 53601G), repurchase agreements are agreements between the local agency and seller for the purchase of government securities to be resold at a specific date and for a specific amount. Repurchase agreements are generally used for short-term investments for the City's daily automatic sweep account and will generally not exceed 30 days.

Repurchase Agreements are subject to a Master Repurchase Agreement between th e City and the provider of the repurchase agreement. The Master Repurchase Agreement will be substantially in the form developed by the Securities Industry and Financial Markets Association (SIFMA). The legal limitation on the maturity period for a repurchase agreement is for one year with the required market value underlying the agreement at 102% of the funds borrowed with the value adjusted quarterly.

9. MUNICIPAL SECURITIES OF THE CITY, STATE OF CALIFORNIA, OR LOCAL AGENCIES. As authorized in Government Code Section 53601(e), local agencies may invest in Bonds of the State of California and any local government in the State of California, which are rated in the "A" category or better by one NRSRO at the time of investment. In no event shall this clas sification of investment exceed 30% of the value of the portfolio. No more than 5% of the portfolio may be invested in any single issuer and the maximum maturity does not exceed five (5) years.

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10. MUNICIPAL SECURITIES (REGISTERED TREASURY NOTES OR BONDS) .

Any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 sta tes, in addition to California. In no event shall this classification of investment exceed 30% of the value of the portfolio. No more than 5% of the portfolio may be invested in any single issuer and the maximum maturity does not exceed five (5) years.

11. COLLATERALIZED BANK DEPOSITS . The City’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651. There are no limits on the dollar amount or percentage that the City may invest in collateralized bank deposits.

12. MUTUAL FUNDS AND MONEY MARKET MUTUAL FUNDS. Mutual Funds are referred to in California Government Code Section 53601(1), as "shares of beneficial interest issued by diversified management companies." Mutual Funds and Money Market Mutual Funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940 are authorized investments for funds subject to the following provisions:
 Mutual Funds that invest in the securities and obligations as authorized under California Government Code Section 53601(a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:
■ Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
■ Have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations authorized by California Government Code Section 53601 and with assets under management in excess of $500 million.
■ No more than 10% of the total portfolio may be invested in Mutual Funds.

■ Money Market Mutual Funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
■ Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
■ Have retained an investm ent advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of $500 million.
■ No more than 20% of the total portfolio may be invested in Money Market Mutual Funds.

■ No more than 20% of the total portfolio may be invested in mutual funds and money market mutual funds combined.

13. CORPORATE MEDIUM TERM NOTES. As authorized in Government Code Section 53601(k), local agencies may invest in corporate medium term notes issued by Item 8
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corporations organized and operating in the United States or by depository institutions licensed by the United States or any state and operating within the United States that are rated in the rating category of "A" or its equivalent or higher rating for the issuer's debt as provided by one NRSRO and having a maximum remaining maturity period of five years or less in an amount not to exceed 30% of the City's portfolio. Furthermore, the maximum principal amount in any one issuer will not exceed 5% of the City's portfolio.

14. ASSET-BACKED, MORTGAGE -BACKED, MORTGAGE PASS -THROUGH

SECURITIES, AND COLLATERALIZED MORTGAGE OBLIGATION
FROM ISSUERS NOT DEFINED IN SECTIONS 1 AND 2 OF THE SUITABLE AND AUTHORIZED INVESTMENTS SECTION OF THIS POLICY. The securities must be rated in a rating category of “AA” or its equivalent or better by a NRSRO. No more than 20% of the total portfolio may be invested in these securities with no more than 5% of the portfolio may be invested in any single Asset-Backed or commercial Mortgage security issuer. The maximum legal final maturity does not exceed five (5) years.

15. SURPANATIONALS. Allowable, provided that Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank. The securities are rated in a rating category of “AA” or it s equivalent or better by a NRSRO. No more than 30% of the total portfolio may be invested in these securities and no more than 10% of the portfolio may be invested in any single issuer. The maximum maturity does not exceed five (5) years.

16. GOVERNMENT INVESTMENT POOLS. Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in securities and obligations authorized in subdivisions (a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment advisor that meets all of the following criteria:
 The advisor is registered or exempt from registration with the Securities and Exchange Commission.
 The advisor has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive.  The advisor has assets under management in excess of five hundred million dollars ($500,000,000).

While local government investment pools generally provide significant safety and liquidity, the Administrative Services Director shall complete a thorough investigation prior to making any such investment. Due diligence in investigations shall generally include a review of written statements of investment policies, objectives, fees schedules, and reporting schedules, as well as issues related to (1) eligible investors and securities, (2) the permitted frequencies and sizes of deposits and withdrawals, (3) security safeguards, including settlement processes, (4) the frequency with which Item 8
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securities are priced and the program audited, (5) the treatment of gains and losses, including interest calculations and distribution, (6) whether and, if so, how reserves, retained earnings, and similar funds are utilized by the investment pool, and (7) whether the investment pool is eligible for and, if so, accepts bond proceeds. In addition, only local government investment pools with at least five years' experience providing similar services to other California municipalities may be utilized.

B. Collateralization
Certificates of Deposit (CDs). The City shall require any commercial bank or savings and loan association to deposit eligible securities with an City of a depository approved by the State Banking Department to secure any uninsured portion of a Non-Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

Collateralization of Bank Deposits. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The City sh all require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.

C. Investments Not Approved
Any security type or structure not specifically approved by this policy is hereby prohibited.

In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.

Purchasing or sellin g securities on margin is prohibited. The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited. The purchase of foreign currency denominated securities is prohibited.

D. Risk Management and Diversification
Mitigating Credit Risk in the Portfolio
Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate Item 8
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credit risk by adopting the following strategies:
 The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio.  No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.  The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences.
 If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the following steps will be taken:
 Any actions taken related to the downgrade by the investment manager will be communicated to the Administrative Services Director in a timely manner.  If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council.

Mitigating Market Risk in the Portfolio
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer -term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes.

IX. INVESTING PARAMETERS
Maximum Maturities
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Where there is no specified maturity limitation on an investment, no investment shall be made in any security, which, at the time of the investment, has a term remaining to maturity in excess of five (5) years, unless the City Council has granted express authority to make that investment no less than three months prior to the investment.

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X. REPORTING
The Administrative Services Director shall submit investment reports to the City Council that provide a clear picture of the status of the current investment portfolio and shall contain sufficient information to permit an independent organization to evaluate the performance of the investment program.

Reporting to City Council
In accordance with California Government Code Sections 53607 and 53646, the Administrative Services Director shall submit to the City Council a monthly report of portfolio transactions and a quarterly investment report, which summarizes all securities in the portfolio. The quarterly report shall include:
 Investment type
 Issuer
 Purchase date
 Maturity date
 Credit quality
 Coupon and yield
 Book value
 Market value
 Interest Earnings
 Average days to maturity
 Discussion of the current economic climate
 Statement that the portfolio is in compliance with this Investment Policy or the manner in which the portfolio is not in compliance.
 Statement of the City's ability to meet anticipated expenditure requirements for the next six months, or an explanation as to why sufficient money may not be available.

XI. PERFORMANCE EVALUATION
The investment portfolio shall be designed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City’s risk constraints, the cash flow characteristics of the portfolio, and state and local laws, ordinances or resolutions that restrict investments.

The Treasurer shall monitor and evaluate the portfolio’s performance relative to the chosen market ben chmark(s), which will be included in the Treasurer’s quarterly report. The Treasurer shall select an appropriate, readily available index to use as a market benchmark.

XII. PERFORMANCE STANDARDS
The investment portfolio shall be designed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City’s risk constraints, the cash flow characteristics of the portfolio, and state and local laws, ordinances or resolutions that restrict investments.

The Administrative Services Director shall monitor and evaluate the portfolio’s performance relative to the chosen market benchmark(s), which will be included in the Administrative Services Director’s quarterly report. The Administrative Services Director shall select an appropriate, readily available index to use as a market benchmark.

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XIII. INVESTMENT POLICY COMPLIANCE AND ADOPTION
A. Policy Compliance and Changes
Any deviation from the policy shall be reported to City Council at the next scheduled meeting. The Administrative Services Director shall promptly notify the City Council of any material change in the policy, and any modifications to the policy must be approved by the City Council.

B. Annual Statement of Investment Policy
The Administrative Services Director shall render a written Investment Policy that shall be reviewed at least annually by the City Council to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic t rends. The City Council shall consider the annual Investment Policy and any changes therein at a public meeting. The Investment Policy shall be adopted by resolution of the City Council.

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APPENDIX

GLOSSARY OF INVESTMENT TERMS

AGENCY: A debt security issued by a federal or federally sponsored agency. Federal agencies are backed by the full faith and credit of the U.S. Government (i.e. Government National Mortgage Association). Federally sponsored agencies (FSA's) are backed by each particular agency with a market perception that there is an implicit government guarantee (i.e. Federal National Mortgage Association).
• FEDERAL FARM CREDIT BANK (FFCB): Provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds. • FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) that lend funds and provide correspondent banks services to member commercial banks, thrift institutions, credit unions and insurance companies. • FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC): Like FHLB, provides credit and liquidity in the housing market. FHLMC, also called “FreddieMac” issues discount notes, bonds and mortgage pass-through securities. • FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA
is a
federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages.
• GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions.

Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA, or FMHA mortgages. The term "pass-throughs" is often used to describe Ginnie Maes.
• PRIVATE EXPORT FUNING CORPORATION (PEFCO): Assists exporters; obligations of PEFCO are not guaranteed by the full faith and credit of the US government. • TENNESSEE VALLEY AUTHORITY (TVA): Provides flood control and power and promotes development in portions of the Tenness ee, Ohio, Mississippi River valleys. TVA currently issues discount notes and bonds.

BOOK VALUE: The value at which a debt security is shown on the holder's balance sheet. Book value is often acquisition cost plus/minus amortization and accretion, which may differ significantly from the security's current value in the market.

BROKER: Someone who brings buyers and sellers together and is compensated for his/her service.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs are typically negotiable.

COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

CREDIT QUALITY: The measurement of the financial strength of a bond issuer. This measurement helps an investor to understand an issuer's ability to make timely interest payments and repay the loan principal upon maturity. Generally, the higher the credit quality of a bond issuer, the lower the interest rate paid by the issuer because the risk of default is lower. Credit quality ratings are provided by a Nationally Recognized Statistical-Rating Organization.

CREDIT RISK: The risk to an investor that an issuer will default in the payment of interest and/or principal on a security.

CUSTODIAN: A bank or other financial institution that keeps custody of stock certificates and other assets.

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DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, by buying and selling for his/her own account.

DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

FAIR VALUE: The amount at which an investment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits currently up to $250,000 per deposit.

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., twelve Regional Banks and about 5,700 commercial banks that are members of the system.

GOVERNMENT ACCOUNTING STANDARDS BOARD (GASB): A standard-setting body, associated with the Financial Accounting Foundation, which prescribes standard accounting practices for governmental units.

GOVERNMENT SECURITIES: An obligation of the U.S. government, backed by the full faith and credit of the government. These securities are regarded as the highest quality of investment securities available in the U.S. securities market. See "Treasury Bills, Notes, and Bonds." INTERNAL CONTROLS: An internal control structure designed to ensure that the assets of the entity are protected from loss, theft, or misuse. The internal control structure is designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that 1) the cost of a control should not exceed the benefits likely to be derived and 2) the valuation of costs and benefits requires estimates and judgments by management. Internal controls should address the following points:
■ Control of collusion - Collusion is a situation where two or more employees are working in conjunction to defraud their employer.
■ Separation of transaction authority from accounting and record keeping - By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. ■ Custodial safekeeping - Securities purchased from any bank or dealer including appropriate collateral (as defined by state law) shall be placed with an independent third party for custodial safekeeping.
■ Avoidance of physical delivery securities - Book-entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities.
■ Clear delegation of authority to subordinate staff members - Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities. • Written confirmation of transactions for investments and wire transfers - Due to the potential for error and improprieties arising from telephone and electronic transactions, all transactions should be supported by written communications and approved by the appropriate person. Written communications may be via fax if on letterhead and if the safekeeping institution has a list of authorized signatures.
• Development of a wire transfer agreement with the lead bank and third-party custodian - The designated official should ensure that an agreement will be entered into and will address the following points: controls, security provisions, and responsibilities of each party making and receiving wire transfers.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between Item 8
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bid and asked prices is narrow and reasonable size can be done at those quotes.

LOCAL AGENCY INVESTMENT FUND (LAIF): Chapter 730, Statutes of 1976 of the State of California, established the Local Agency Investment Fund. This fund enables local governmental agencies to remit money not required for immediate needs to the State Treasurer for the purpose of investment. In order to derive the maximum rate of return possible, the State Treasurer has elected to invest these monies with State monies as a part of the Pooled Money Investment Account (PMIA). Each local governmental unit has the exclusive determination of the length of time its money will be on deposit with the State Treasurer. At the end of each calendar quarter, all earnings derived from investments are distributed by the State C ontroller to the participating government agencies in proportion to each agency's respective amounts deposited in the Fund and the length of time such amounts remained therein. Prior to the distribution, the State's costs of administering the program are deducted from the earnings.

MARK-TO-MARKET: The process whereby the book value or collateral value of a security is adjusted to reflect its current market value.

MARKET VALUE: The current price at which a security is trading and could presumably be purchased or sold at that particular point in time.

MA
STER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase-reverse repurchase agreements that establish each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller- b orrower.

MAT
URITY: The date upon which the principal or stated value of a financial obligation is due and payable.

MONEY MARKET MUTUAL FUND: Mutual funds that invest solely in money market instruments (short -term debt instruments, such as Treasury bills, commercial paper, bankers' acceptances, repos and federal funds).

MUTUAL FUND: An investment company that pools money and can invest in a variety of securities, including fixed -income securities and money market instruments. Mutual funds are regulated by the Investment Company Act of 1940 and must abide by Securities and Exchange Commission (SEC) disclosure guidelines.

NATIONALLY RECOGNIZED STATISTICAL-RATING ORGANIZATION (NRSRO):

Standard and Poor's, Moody's, and Fitch Financial Services are examples of such organizations.

PAR VALUE: The amount of principal that must be paid at maturity. Also referred to as the face amount of a bond, normally quoted in $1,000 increments per bond.

PORTFOLIO: Combined holding of more than one stock, bond, commodity, real estate investment, cash equivalent, or other asset. The purpose of a portfolio is to reduce risk by diversification.

PRINCIPAL: The face value or par value of a debt instrument, or the amount of capital invested in a given security.

PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker/dealers, banks and a few unregulated firms.

PRINCIPAL: (1) The face amount or par value of a debt instrument. (2) One who acts as a dealer buying and selling for his own account.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate the buyer for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves.

RISK: Degree of uncertainty of return on an asset.

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RULE 2A-7 OF THE INVESTMENT COMPANY ACT: Applies to all money m arket mutual funds and mandates such funds to maintain certain standards, including a 13-month maturity limit and a 90-day average maturity on investments, to help maintain a constant net asset value of one dollar ($1.00).

TREASURY BILLS: Short-term U.S. government non-interest bearing discounted debt securities with maturities of no longer than one year and issued in minimum denominations of $10,000. Auctions of three - and six-month bills are weekly, while auctions of one -year bills are monthly. The yields on these bills are monitored closely in the money markets for signs of interest rate trends.

TREASURY BOND: A long-term coupon-bearing U.S. Treasury security issued as a direct obligation of the U.S. Government and having an initial maturity of more than 10 years and issued in minimum denominations of $1,000.

TREASURY NOTE: A medium-term coupon-bearing U.S. Treasury security issued as a direct obligation of the U.S. Government and having an initial maturity of from one to ten years and issued in denominations ranging from $1,000 to $1 million or more.

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission (SEC) Rule 15C3- 1 outlining requirements that member firms as well as nonmember broker -dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

VOLATILITY: A degree of fluctuation in the price and valuation of securities.

YIELD: The current rate of return on an investment security generally expressed as a percentage of the security's current price. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

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City of Citrus Heights
Investment Policy
MarchJune 910, 20231
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TABLE OF CONTENTSTABLE OF CONTENTS

I. PURPOSE……………………………………………………………………………………… 3
II. POLICY………………………………………………………………………………………... 3
III. SCOPE…………………………………………………………………………………………. 3
IV. GENERAL OBJECTIVES…………………………………………………………………… 3
A. Safety………………………………………………………………………………………. 3
B. Liquidity…………………………………………………………………………………... 4
C. Yield (Return on Investment)…………………………………………………………… 4 V. STANDARDS OF CARE…………………………………………………………………….. 4
A. Prudence…………………………………………………………………………………... 4
B. Ethics and Conflicts of Interest…………………………………………………………. 4 C. Delegation of Authority………………………………………………………………….. 5 D. Internal Controls………………………………………………………………………… 5
E. Review of Investment Portfolio…………………………………………………………. 5 VI. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS……………………….. 6 VII. SAFEKEEPING AND CUSTODY………………………………………………………… 7
VIII. SUITABLE AND AUTHORIZED INVESTMENTS…………………………………….. 7 A. Investment Types……………………………………………………………………….. 7
B. Collateralization………………………………………………………………………… 12
C. Investments Not Approved……………………………………………………………... 12 D. Risk Management and Diversification………………………………………………… 13 IX. INVESTING PARAMETERS……………………………………………………………… 14
X. REPORTING………………………………………………………………………………... 14
XI. PERFORMANCE EVALUATION………………………………………………………… 14
XII. PERFORMANCE STANDARDS…………………………………………………………... 14
XIII. INVESTMENT POLICY COMPLIANCE AND ADOPTION…………………………... 15 A. Policy Compliance and Changes……………………………………………………….. 15 B. Annual Statement of Investment Policy……………………………………………….. 15

APPENDIX (Glossary of Investment Terms)……………………………………………… 16

City of Citrus Heights Investment Policy June 2021
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I. PURPOSE
The purpose of this Investment Policy is to provide guidance and direction for the prudent investment of the City of Citrus Heights (“C ity”) funds and to foster the creation of a systematic and controlled investment process. The ultimate goal of this Investment Policy is to maximize the efficiency of the City's cash management system and to enhance the economic status of the City while protecting its invested funds.

II. POLICY
It is the policy of the City of Citrus Heights ("City") to invest public funds in a prudent manner that will provide maximum security, adequate liquidity and sufficient yield, while meeting the daily cash flow demands of the City and conforming to all statutes and regulations governing the investment of public funds. This policy is written to incorporate industry best practices and recommendations from sources such as the Government Finance Officers Association (GFOA), California Municipal Treasurers Association (CMTA), California Debt and Investment Advisory Commission (CDIAC) and the Association of Public Treasurers (APT).

III. SCOPE
This investment policy applies to all short-term operating funds and investment activities under the direct authority of the City of Citrus Heights, as set forth in the State Government Code, Sections 53600 et seq .,. These funds are accounted for in the City's Annual Comprehensive Annual Financial Report and include: General Fund, Special Revenue Funds, Capital Project Funds, Enterprise Fund, Internal Service Funds and Fiduciary Funds. The following are not governed by this policy:
 Funds excluded from this policy include the City's Retiree Healthcare Plan which is administered and managed separately by the California Employers' Retiree Benefit Trust (CERBT) Fund under the California Government Code Section 53620- 53622 and bond proceeds which are subject to the conditions and restrictions of bond documents and are not governed by this policy.
 Any other funds specifically exempted by the City Council.

Pooling of Funds
Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the var ious funds based on their respective participation and in accordance with generally accepted accounting principles.

IV. GENERAL OBJECTIVES
The primary objectives, in priority order, of the City's investment activities are safety, liquidity and yield.

A. Safety
Preservation of principal is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective shall be to mitigate credit risk and interest rate market risk. To attain this objective, the City shall diversify its investments by investing funds among several financial institutions and a variety of securities offering independent Item 8
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returns.

Credit Risk
The City shall minimize credit risk, the risk of loss due to the failure of the security issuer or backer, by:

Limiting investments to the most creditworthy types of securities.

Pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisers with which the City will do business.

Diversifying the investment portfolio so that the potential failure of any one issue or issuer will not place an undue financial burden on the City.Interest Rate Risk To minimize the negative impact of material changes in the market value of securities in the portfolio, the City shall:

Structure the investment portfolio so that securities mature concurrent with cash needs to meet anticipated demands, thereby avoiding the need to sell securities on the open market prior to maturity.

Invest operating funds primarily in shorter -term securities, money market mutual funds, and the State of California's Local Agency Investment Fund ("LAIF").

B. Liquidity
The City's investment portfolio shall remain sufficiently liquid to enable the City to meet all operating requirements that might be reasonably anticipated without requiring a sale of securities. Since all possible cash demands cannot be anticipated, the portfolio shall consist largely of securities with active secondary or resale markets. A portion of the portfolio also may be placed in money market mutual funds or LAIF, which offer same-day liquidity for short-term funds.

City investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from Item 8
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expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

B. Ethics and Conflicts of Interest
All participants in the investment process shall act as custodians of the public trust.

Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. Officers and employees involved in the City investment pr ocess shall refrain from personal business activity that could conflict with proper execution of the investment program, or that could impair their ability to make impartial investment decisions. City employees and investment officials shall disclose any m aterial financial interests in financial institutions that conduct business within their jurisdiction, and they shall further disclose any personal financial/investment positions that could be related to the performance of the City immediately to the Citrus Heights City Manager and annually to the Fair Political Practices Commission. City employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City.

The City may engage the services of one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy. The City's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust.

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The internal controls shall address the following points:
■ Segregation of Duties
■ Custodial Safekeeping
■ Delivery versus Payment (DVP)
■ Delegation of Authority
■ Documentation of Transactions

The Administrative Services Director shall establish procedures to report to the City Council, major and critical incidences of noncompliance identified through the review of the portfolio.

VI. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The Administrative Services Director shall establish selection criteria for pre -approval of financial institutions and security broker/dealers to do business with the City. The Administrative Services Director shall maintain a list of City approved financial institutions, registered investment advisors and security broker/dealers who are authorized to provide investment services to the City. These may include primary dealers, or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (uniform net capital rule).

If a third party investment advisor is authorized to conduct investment transactions on the City's behalf, the investment advisor may use their own list of broker/dealers and fi nancial institutions. The investment advisor's list must be available to the City upon request.The Administrative Services Director shall endeavor to complete investment transactions using a competitive bid process whenever possible. The City’s Administrat ive Services Director will determine which financial institutions are authorized to provide investment services to the City. It shall be the City’s policy to purchase securities only from authorized institutions and firms.

The Administrative Services Director shall maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence as determined by the City. Due inquiry shall determine whether such authorized broker/dealers, and the individuals covering the City are reputable and trustworthy, knowledgeable and experienced in Public City investing and able to meet all of their financial obligations. These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).

In accordance with Section 53601.5, institutions eligible to transact investment business with the City include:

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 Institutions licensed by the state as a broker-dealer.  Institutions that are members of a federally regulated securities exchange.  Primary government dealers as designated by the Federal Reserve Bank and non -primary government dealers.
 Nationally or state-chartered banks.
 The Federal Reserve Bank.
 Direct issuers of securities eligible for purchase.

Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the City, except where the City ut ilizes an external investment adviser in which case the City may rely on the adviser for selection.

All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment advise r) must supply the Administrative Services Director with audited financials and a statement certifying that the institution has reviewed the California Government Code, Section 53600 et seq . and the City’s investment policy. The Administrative Services Dir ector will conduct an annual review of the financial condition and registrations of such qualified bidders.

Public deposits will be made only in qualified public depositories as established by State law.

Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.

Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

VII. SAFEKEEPING AND CUSTODY
All security transactions, including collateral for repurchase agreements, entered into by the City shall be conducted on a delivery -versus-payment (DVP) basis, which will ensure that securities are deposited in an eligible financial institution prior to the release of funds. To protect against potential losses due to failure of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all cash and sSecurities shall be held in safekeeping in the City’s name by a third-party custodian or broker/dealer designated by the Administrative Services Director , acting for the City under the terms of a custody agreement executed by the bank and the City. to protect against potential losses due to failure of individual securities . All investment transactions will require a safekeeping receipt or acknowledgment generated from the trade. A monthly report will be received by the City from the custodian listing all securities held in safeke eping with current market data and other information. The only exception to the foregoing shall be depository accounts and securities purchases made with: State of California Local Agency Investment Fund (LAIF), time certificates of deposit, and mutual funds and money market mutual funds, since the purchased securities are not deliverable. The Administrative Services Director shall be bonded to protect the public against possible embezzlement and malfeasance.

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VIII. SUITABLE AND AUTHORIZED INVESTMENTS
The City’s investments are governed by California Government Code, Sections 53600 et seq.

Any investment currently held at the time the policy is adopted which does not meet the new policy guidelines can be held until maturity and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy. The City shall be governed by the California Government Code, Sections 53600 et seq. If the Code is amended to allow additional investments or is changed regarding the limits on certain categories of investments, the City is authorized to conform to the changes in the revised Code, provided that the changes are not specifically prohibited by the City's policy. The City shall be required to present those changes in the annual review of the policy and to incorporate the new legislation within the policy. For purposes of compliance with the California Government Code and the City's Investment Policy, the credit rating requirement for invested funds shall be based on the quality ratings at the time of purchase. If the quality rating of the issuer is downgraded, subsequent to purchase, by any of the Nationally Recognized Statistical-Rating Organizations below "A", or its equivalent, it shall be reported to the City Council with a recommendation, and ongoing information shall be provided if the bond is not sold. Percentage limitations of surplus funds invested are noted for the various investment instruments. Where there is a specified percentage limitation or minimum credit quality requirement for a particular c ategory of investments, that percentage these requirements is are applicable only at the date of purchase. A later increase or decrease in a percentage resulting from a change in values or assets shall not constitute a violation of that restriction. The Ci ty's funds may not be invested in those prohibited funds described in California Government Code 53601.6, but must only be invested in any of the following instruments as permitted by law (California Government Code Section 53601):

The City is empowered by statute to invest in the following types of securities:

A. Investment Types

1. U.S. TREASURY BILLS , NOTES & BONDS . Allowable a long with other government obligations for which the full faith and credit of the Unites States are pledged for the payment of princi pal and interest. There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries, provided that the maximum maturity is five (5) years. Commonly referred to as T-Bills, these are short- term marketable securities sold as obligations of the U.S. Government. They are offered in three -month, six -month, and one -year maturities. T -Bills do not accrue interest but are sold at a discount to pay face value at maturity. There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasury Bills.

1. U.S. TREASURY NOTES. These are marketable, interest-bearing securities sold as obligations of the U.S. Government with original maturities of one to ten years at issuance. Interest is paid semiannually. Purchases of these assets are limited to a remaining maturity of 5 years or less. There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasury Notes.

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U.S. TREASURY BONDS. These are the same as U.S. Treasury Notes except they have original maturities of ten years or longer at issuance. Purchases of these assets are limited to a remaining maturity of 5 years or less, unless specifically approved by the City Council in accordance with California Government Code section 53601.

There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasury Bonds.

2. U.S. GOVERNMENT AGENCY ISSUES AND GOVERNMENT

3.2. SPONSORED ENTERPRISES. This includes obligations, participations, or other instruments of, or issued by, a federal government agency or a United States government-sponsored enterprise. Purchase of U.S. Government Agency securities may not exceed 50% of the City's portfolio. No m ore than 30% of the portfolio may be invested in any single Agency/Government Sponsored Enterprise and there shall be no more than 20% of agency callable securities in the portfolio. The maximum maturity shall not exceed five (5) years.

The allowable securities fall into two categories: 1) Issues which are backed by the full faith and credit of the United States, 2) Issues which are implicitly backed by the full faith and credit of the United States and/or are in conservatorship.

These Issues include, but are not limited to:

Issues, which are unconditionally backed by the full faith and credit of the United States, including:

Government National Mortgage Association (GNMA), Small Business Administration (SBA) and General Services Administration (GSA).

Issues, which are not backed by the full faith and credit of the United States including but are not limited to: Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal Home Loan Bank (FHLB), Farm Credit System, Banks for Cooperation (Co-ops) , Federal Lands Banks (FLB), Federal Intermediate Credit Banks (FICB), and Tennessee Valley Authority (TVA).

4. LOCAL AGENCY INVESTMENT FUND (LAIF). As
authorized in

3. Government Code Section 16429.1, local agencies may invest in the Local Agency Investment Fund (LAIF), a pooled investment money market fund established by the State of California, and overseen by the State Treasurer, which allows local agencies to pool their investment resources. Principal may be withdrawn on a one -day notice.

Interest earned is paid quarterly. The fees charged are limited to one - qu
arter of one
percent of the earnings of the fund. Current policies of LAIF set minimum and maximum amounts of monies that may be invested as well as maximum numbers of transactions that are allowed per month. The City may invest up to the maximum amount permitted by LAIF. The LAIF is in trust in the custody of the State Treasurer. The City's right to withdraw its deposited monies from LAIF is not contingent upon the State's ability to adopt a State Budget by July 1st of each new fiscal year..

4. BANKER'S ACCEPTANCE. Otherwise known as bills of exchange or time drafts, are negotiable instruments with a maturity of six months or less drawn on and accepted by a commercial bank. These instruments must be rated "A-1" or its equivalent or better by at least one Nationally Recognized Statistical Rating Organization (NRSRO); or long-term debt obligations which are rated in a category of "A" or its equivalent or better by at least one NRSRO. Banker's Acceptances are usually created to finance the import or export of goods, or the shipment of goods within the United States. No more than 40% of the portfolio may be invested in Banker's Acceptances. No more than 5% Item 8
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of the portfolio may be invested in any single issuer. The maximum maturity may not exceed 180 days.

5. NON--NEGTIABLE CERTIFICATE OF DEPOSIT (CD). As authorized in

6.5. Government Code Section 53601.8, local agencies may invest in Certificates of Deposit. These instruments must comply with Government Code Sections 16500 or 16600. This is a receipt for funds deposited in a Bank or Savings and Loan Association for a specified period at a specified rate of interest. The first $250,000 of a CD is insured by the FDIC; as such, the Administrative Services Director /Treasurer may waive collateral requirements for CD investments up to this amount. Investments in CD's in excess of $ 250,000 must be collateralized by Treasury Department Securities, which must be at least 110% of the face value of the CD's in excess of the first $250,000, or by first mortgage loans, which must be at least 150% of the face value of the CD balance in excess of the first $250,000. No more than 20% of the portfolio may be invested in certificates of deposit. Maturities may not exceed five (5) years.  All institutions must: (1) have a minimum of $100 million in assets; (2) have a demonstrated history of positive earnings; and, (3) must carry a minimum 3.5% equity ratio and hold that ratio for at least one year prior to the City's investment.  All institutions must be located within the State of California. For collateralized or negotiable certificates of deposit, the institution must have a minimum $1 billion in assets, in addition to meeting the above criteria.

6. NEGOTIABLE CERTIFICATE OF DEPOSIT (NCD). Allowable certificates of deposits must be issued by a nationally or state -chartered bank or a state or federal association, a state or federal credit union, or by a federally licensed or state licensed branch of a foreign bank. The amount of the NCD insured up to the FDIC limit does not require any credit ratings. Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated "A-1" or its equivalent or better by at least one NRSRO; or long -term obligations rated in a rating category of "A" or its equivalent or better by at least one NRSRO. The maturity period for this investment vehicle may not exceed five (5) years unless approved by the Council. No more than 30% of the total portfolio may be invested in these securities. No more than 5% of the portfolio may be invested in any single issuer.

 Securities issued by other entities:
 The issuer is organized within the United States as a special purpose corporation, trust, or limited liability company.
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limited to, overcollateralization, letters of credit, or a surety bond.  The securities are rated “A-1” or its equivalent or better by at least one NRSRO.

 No more than 10% of the outstanding commercial paper of any single issuer.  No more than 25% of the City’s investment assets under management may be invested in Commercial Paper.
 No more than 5% of the portfolio may be invested in any single issuer.  The maximum maturity does not exceed 270 days.25% of the City's portfolio may be invested in "prime" quality commercial paper. The securities must be rated "A- 1" or its equivalent or better by at least one NRSRO and issued by a corporation which has long- term obligations with a rating of "A" or better by at least one NRSRO with maturities not to exceed 270 days. These notes are secured promissory notes of industrial corporations, utilities and bank holding companies.

The issuer must be a corporation organized and operating in the United States with assets in excess of $500 million. The City may not purchase more than 10% of the outstanding commercial paper of any single issuer. No more than 5% of the portfolio may be invested in any single issuer.

Repurchase Agreements are subject to a Master Repurchase Agreement between the City and the provider of the repurchase agreement. The Master Repurchase Agreement will be substantially in the form developed by the Securities Industry and Financial Markets Association (SIFMA). The legal limitation on the maturity period for a repurchase agreement is for one year with the required market value underlying the agreement at 102% of the funds borrowed with the value adjusted quarterly.

9. MUNICIPAL SECURITIESBONDS OF THE CITY, STATE OF CALIFORNIA, OR LOCAL AGENCIES. As authorized in Government Code Section 53601(e), local agencies may invest in Bonds of the State of California and any local government in the State of California, which are rated in the "A" category or better by one NRSRO at the time of investment. In no event shall this classification of investment exceed 30% of the value of the portfolio. No more than 5% of the portfolio may be invested in any single issuer and the maximum maturity does not exceed five (5) years.

10. MUNICIPAL SECURITIES (REGISTERED TREASURY NOTES OR BONDS) .

Any of the other 49 states in addition to California , including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California. In no event shall this classification of investment exceed 30% of the value of the portfolio. No more than 5% of the portfolio may be invested in any single issuer and the maximum maturity does not exceed five (5) years.

11. COLLATERALIZED BANK DEPOSITS . The City ’s deposits with financial institutions will be collateralized with pledged securities per California Government Item 8
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Code, Section 53651. There are no limits on the dollar amount or percentage that the City may invest in collateralized bank deposits.

7.12. MUTUAL FUNDS ANDand MONEY MARKET MUTUAL FUNDS. Mutual Funds are referred to in California Government Code Section 53601(1), as "shares of beneficial interest issued by diversified management companies." Mutual Funds and Money Market Mutual Funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940 are authorized investments for funds subject to the following provisions:
 Mutual Funds that invest in the securities and obligations as authorized under California Government Code Section 53601(a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:
■ Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) Nationally Recognized Statistical Rating Organizations (NRSROs); or
■ Have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations authorized by California Government Code Section 53601 and with assets under management in excess of $500 million.
■ No more than 10% of the total portfolio may be invested in Mutual Funds.

■ No more than 5% of the total portfolio may be invested in any one issuer. ■ Money Market Mutual Funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
■ Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
■ Have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of $500 million.
■ No more than 210% of the total portfolio may be invested in Money Market Mutual Funds.

■ No more than 5% of the total portfolio may be invested in any one issuer. ■ All Money Market Mutual Funds must be compliant with Rule 2a -7 of the Investment Company Act of 1940.
■ No more than 20% of the total portfolio may be invested in mutual funds and money market mutual funds combined.

13. CORPORATE MEDIUM TERM NOTES. As authorized in Government Code Section 53601(k), local agencies may invest in corporate medium term notes issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any state and operating within the United States that are rated in the rating category of "A" or its equivalent or higher rating for the issuer's debt as provided by one NRSRO and having a maximum remaining maturity period of five years or less in an amount not to exceed 30% of the City agency's portfolio.

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Furthermore, the maximum principal amount in any one issuer will not exceed 5% of the City's portfolio.

14. ASSET-BACKED, MORTGAGE -BACKED, MORTGAGE PASS -THROUGH

SECURITIES, AND COLLATERALIZED MORTGAGE OBLIGATION
FROM ISSUERS NOT DEFINED IN SECTIONS 1 AND 2 OF THE SUITABLE AND AUTHORIZED INVESTMENTS SECTION OF THIS POLICY. The securities must be rated in a rating category of “AA” or its equivalent or better by a NRSRO. No more than 20% of the total portfolio may be invested in these securities with no more than 5% of the portfolio may be invested in any single Asset -Backed or commercial Mortgage security issuer. The maximum legal final maturity does not exceed five (5) years.

15. SURPANATIONALS. Allowable, provided that Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank. The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO. No more than 30% of the total portfolio may be invested in these securities and no more than 10% of the portfolio may be invested in any single issuer. The maximum maturity does not exceed five (5) years.

8.16. GOVERNMENT INVESTMENT POOLS. Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in securities and obligations authorized in subdivisions (a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment advisor that meets all of the following criteria:
 The advisor is registered or exempt from registration with the Securities and Exchange Commission.
 The advisor has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive.  The advisor has assets under management in excess of five hundred million dollars ($500,000,000).

While local government investment pools generally provide significant safety and liquidity, the Administrative Services Director shall complete a thorough investigation prior to making any such investment. Due diligence in investigations shall generally include a review of written statements of investment policies, objectives, fees schedules, and reporting schedules, as well as issues related to (1) eligible investors and securities, (2) the permitted frequencies and sizes of deposits and withdrawals, (3) security safeguards, including settlement processes,
(4) the frequency with which securities are priced and the program audited, (5) the treatment of gains and losses, including interest calculations and distribution, (6) whether and, if so, how reserves, retained earnings, and similar funds are utilized by the investment pool, and (7) whether the investment pool is eligible for and, if so, accepts bond proceeds. In addition, only local government investment pools with at Item 8
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least five years' experience providing similar services to other California municipalities may be utilized.

B. Collateralization
Collateralization will be required on two types of investments: certificates of deposit and repurchase agreements. In order to anticipate market changes and provide a level of security for all funds, the collateralization level for any amount exceeding FDIC coverage shall be in accordance with California Government Code Section 53652 and/or 53651 (m)(l).

The City chooses to limit acceptable collateral to the following: Cash, U.S. Treasury Bills, Notes and Bonds, and Federal Agency issues.Certificates of Deposit (CDs). The City shall require any commercial bank or savings and loan association to deposit eligible securities with an City of a depository approved by the State Banking Department to secure any uninsured portion of a Non- Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

Collateralization of Bank Deposits. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The City shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.

Repurchase Agreements. The City requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code:
 The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities.
 Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above.  The City shall receive monthly statements of collateral.  Collateral will always be held in the City's name by an independent third party with whom the City of Citrus Heights has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City.  The right of collateral substitution is reserved by the City.

C. Investments Not Approved
Any security type or structure not specifically approved by this policy is hereby prohibited.

Purchasing or selling securities on margin is prohibited. The use of reverse repurchase Item 8
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agreements, securities lending or any other form of borrowing or leverage is prohibited. The purchase of foreign currency denominated securities is prohibited.

D. Exceptions to Prohibited and Restricted InvestmentsRisk Management and Diversification
Mitigating Credit Risk in the Portfolio
Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
 The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio.  No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.  The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences.
 If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the following steps will be taken:
 Any actions taken related to the downgrade by the investment manager will be communicated to the Administrative Services Director in a timely manner.  If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council.

The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City , therefore, adopts the following strategies to control and mitigate its exposure to market risk:
 The City will maintain a minimum of six months of budgeted operating expenditure s in short term investments to provide sufficient liquidity for expected disbursements.  The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy.
 The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.The City shall not be required to sell securities prohibited or restricted in this policy, or any future policies, or prohibited or restricted by new State regulations, if purchased prior to their prohibition and/or restriction. Insofar as these securities provide no notable credit risk to the City, holding of these securities until maturity is approved. At Item 8
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maturity or liquidation, such monies shall be reinvested only as provided by this policy.

IX. INVESTING PARAMETERS
A. Diversification
X.IX. The City shall diversify its investments by security type, issuer, maturity, and financial institutions. No percentage limitations are established for United States government, United States government agencies and United States government sponsored enterprises; however percentage limitations are established for other permitted investments, as noted in Section VIII of this policy. The investments shall be diversified by limiting investments to avoid over-concentration in securities from a specific issuer or business sector (excluding U.S. Treasury and Federal Agency securities), limiting investment in securities that have higher credit risks, and investing in securities with varying maturities.

Maximum Maturities
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Where there is no specified maturity limitation on an investment, no investment shall be made in any security, which, at the time of the investment, has a term remaining to maturity in excess of five (5) years, unless the City Council has granted express authority to make that investment no less than three months prior to the investment.

XI.X. REPORTING
The Administrative Services Director shall submit investment reports to the City Council that provide a clear picture of the status of the current investment portfolio and shall contain sufficient information to permit an independent organization to evaluate the performance of the investment program.

Reporting to City Council
In accordance with California Government Code Sections 53607 and 53646, the Administrative Services Director shall submit to the City Council a monthly report of portfolio transactions and a quarterly investment report, which summarizes all securities in the portfolio. The quarterly report shall include:
 Investment type
 Issuer
 Purchase date
 Maturity date
 Credit quality
 Coupon and yield
 Book value
 Market value
 Interest Earnings
 Average days to maturity
 Discussion of the current economic climate
 Statement that the portfolio is in compliance with this Investment Policy or the manner in which the portfolio is not in compliance.
 Statement of the City's ability to meet anticipated expenditure requirements for the next Item 8
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City of Citrus Heights Investment Policy June 2021 17
six months, or an explanation as to why sufficient money may not be available.

The Treasurer shall monitor and evaluate the portfolio’s performance relative to the chosen market benchmark(s), which will be included in the Treasurer’s quarterly report. The Treasurer shall select an appropriate, readily available index to use as a market benchmark.

The investment portfolio shall be managed in accordance with the parameters specified within this policy and always within consistently safe and prudent treasury management procedures.

A. Market Yield
The City's overall investment strategy is passive: Investments are generally held to maturity. If an investment advisory firm is retained by the City, the City portfolio shall be compared to a customized benchmark in order to determine whether market yields are being achieved. In addition, the quarter -to-date LAIF apportionment rate and the two-year U.S. Treasury Note shall also be considered useful benchmarks of the City's portfolio performance.

B. Marking to Market
The market value of the portfolio shall be calculated at least quarterly. This will ensure that review of the investment portfolio, in terms of value and price volatility, has been performed. In defining market value, consideration shall been given to pronouncements from the Government Accounting Standards Board (GASB) that address the reporting of investment assets and investment income for all investment portfolios held by governmental entities. The fair value of all securities reported in the City's portfolio is based on currently quoted market prices.

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City of Citrus Heights Investment Policy June 2021 18

B. Annual Statement of Investment Policy
The Administrative Services Director shall render a written Investment Policy that shall be reviewed at least annually by the City Council to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends. The City Council shall consider the annual Investment Policy and any changes therein at a public meeting. The Investment Policy shall be adopted by resolution of the City Council.

C. Legislative Changes
Any State of California legislative action that further restricts allowable maturities, investment types or percentage allocations will be incorporated into the City of Citrus Heights Investment Policy and will supersede any and all previous applicable language.

If the City is holding an investment that is subsequently prohibited by a legislative change, the City may hold that investment until the maturity date, if it is deemed prudent by the Administrative Services Director/Treasurer.

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APPENDIX

GLOSSARY OF INVESTMENT TERMS

AGENCY: A debt security issued by a federal or federally sponsored agency. Federal agencies are backed by the full faith and credit of the U.S. Government (i.e. Government National Mortgage Association). Federally sponsored agencies (FSA's) are backed by each particular agency with a market perception that there is an implicit government guarantee (i.e. Federal National Mortgage Association).
• FEDERAL FARM CREDIT BANK (FFCB): Provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds. • FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) that lend funds and provide correspondent banks services to member commercial banks, thrift institutions, credit unions and insurance companies. • FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC): Like FHLB, provides credit and liquidity in the housing market. FHLMC, also called “FreddieMac” issues discount notes, bonds and mortgage pass-through securities. • FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages.
• GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions.

BROKER: Someone who brings buyers and sellers together and is compensated for his/her service.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs are typically negotiable.

COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

CREDIT RISK: The risk to an investor that an issuer will default in the payment of interest and/or principal on a security.

CUSTODIAN: A bank or other financial institution that keeps custody of stock certificates and Item 8
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other assets.

DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, by buying and selling for his/her own account.

FAIR VALUE: The amount at which an investment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits currently up to $250,000 per deposit.

FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) that lend funds and provide correspondent banks services to member commercial banks, thrift institutions, credit unions and insurance companies.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder- owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages.

GOVERNMENT ACCOUNTING STANDARDS BOARD (GASB): A standard-setting body, associated with the Financial Accounting Foundation, which prescribes standard accounting practices for governmental units.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):

Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA, or FMHA mortgages. The term "pass-throughs" is often used to describe Ginnie Maes.

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■ Clear delegation of authority to subordinate staff members - Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities. • Written confirmation of transactions for investments and wire transfers - Due to the potential for error and improprieties arising from telephone and electronic transact ions, all transactions should be supported by written communications and approved by the appropriate person. Written communications may be via fax if on letterhead and if the safekeeping institution has a list of authorized signatures.
• Development of a wire transfer agreement with the lead bank and third-party custodian - The designated official should ensure that an agreement will be entered into and will address the following points: controls, security provisions, and responsibilities of each party making and receiving wire transfers.

LOCAL AGENCY INVESTMENT FUND (LAIF): Chapter 730, Statutes of 1976 of the State of California, established the Local Agency Investment Fund. This fund enables local governmental agencies to remit money not required for immediate needs to the State Treasurer for the purpose of investment. In order to derive the maximum rate of return possible, the State Treasurer has elected to invest these monies with State monies as a part of the Pooled Money Investment Account (PMIA). Each local governmental unit has the exclusive determination of the length of time its money will be on deposit with the State Treasurer. At the end of each calendar quarter, all earnings derived from investments are distributed by the State Controller to the participating government agencies in proportion to each agency's respective amounts deposited in the Fund and the length of time such amounts remained therein. Prior to the distribution, the State's costs of administering the program are deducted from the earnings.

MARK-TO-MARKET: The process whereby the book value or collateral value of a security is adjusted to reflect its current market value.

MARKET VALUE: The current price at which a security is trading and could presumably be purchased or sold at that particular point in time.

MAT
URITY: The date upon which the principal or stated value of a financial obligation is due and payable.

NATIONALLY RECOGNIZED STATISTICAL-RATING ORGANIZATION (NRSRO):

Standard and Poor's, Moody's, and Fitch Financial Services are examples of such organizations.

PAR VALUE: The amount of principal that must be paid at maturity. Also referred to as the face amount of a bond, normally quoted in $1,000 increments per bond.

PORTFOLIO: Combined holding of more than one stock, bond, commodity, real estate investment, cash equivalent, or other asset. The purpose of a portfolio is to reduce r isk by diversification.

PRINCIPAL: The face value or par value of a debt instrument, or the amount of capital invested Item 8
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in a given security.

PRINCIPAL: (1) The face amount or par value of a debt instrument. (2) One who acts as a dealer buying and selling for his own account.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

RISK: Degree of uncertainty of return on an asset.

RULE 2A-7 OF THE INVESTMENT COMPANY ACT: Applies to all money market mutual funds and mandates such funds to maintain certain standards, including a 13-month maturity limit and a 90-day average maturity on investments, to help maintain a constant net asset value of one dollar ($1.00).

UNIFORM NE T CAPITAL RULE: Securities and Exchange Commission (SEC) Rule 15C3- 1 outlining requirements that member firms as well as nonmember broker -dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

VOLATILITY: A degree of fluctuation in the price and valuation of securities.

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CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM

DATE: March 9, 2023

TO: Mayor and City Council Members
Ashley Feeney, City Manager

FROM: Susan K. Talwar, Administrative Services Director Alberto Preciado, Accounting Manager

SUBJECT: Annual Comprehensive Financial Report

Summary and Recommendation

Staff recommends the City Council accept and file the City of Citrus Heights Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ended June 30, 2022 and the City of Citrus Heights Popular Annual Financial Report for the Fiscal Year Ended June 30, 2022.

Fiscal Impact

There is no fiscal impact associated with this action.

Background and Analysis

In accordance with the provisions of California Government Code Sections 37208, 53891, and Section 2-355 of the Citrus Heights Municipal Code, the City prepares and publishes annual audited financial statements. The accounting firm of Lance, Soll & Lunghard, LLP (LSL CPAs) performed the annual audit of the City’s general purpose financial statements for the fiscal year ended June 30, 2022. The auditor has opined that the City’s financial statements present fairly, in all material respects, the respective financial position of the City of Citrus Heights. The statements are in conformity with Generally Accepted Accounting Principles.

Some highlights from this year’s ACFR include:
• An increase of Sales Tax Revenue of $1.0 million;
• An increase in State Vehicle In-Lieu tax of $379,000; • An increase in the General Fund balance of $3.0 million; • A net decrease in long-term liabilities of $3.1 million due to the payoff of the City’s line of credit.

The format of the ACFR remains largely unchanged except for:

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Subject: Annual Comprehensive Financial Report
Date: March 9, 2023

Page 2 of 2 ends

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• A change in accounting standards for GASB Statement No. 87 changed how the City records and reports its lease with Dignity Health for the Fountain Square property.

The City has also completed its second Popular Annual Financial Report (PAFR), a report intended to provide the City’s citizens with an easy-to-read explanation of its finances. The information in the PAFR is derived from the City’s ACFR.

The Annual Comprehensive Financial Report and the Popular Annual Financial Report for the fiscal year ended June 30, 2022 were reviewed in detail by the Finance and Administration Committee on March 2, 2023 and are posted on the City’s website at:
http://citrusheights.net/213/Financial-Reporting-Budget-CIP .

The City received awards from the Governmental Finance Officers Association (GFOA) for both its 2021 ACFR and its 2021 PAFR, and the 2022 reports have been submitted for consideration of the awards.

Attachment

1. City of Citrus Heights Popular Annual Financial Report for the Fiscal Year Ended June 30, 3022.

2. City of Citrus Heights Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 3022.

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POPULAR ANNUAL

FINANCIAL REPORT
For Year Ended
June 30, 2022
Prepared by:

Finance,
A Division of the Administrative
Services Department
City of Citrus Heights, California
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TABLE OF CONTENTS
Meet the City Council
1 2
View the ACFR
on the City's
website
http://www.citrusheights.net/213/Finan
cial-Reporting-Budget-CIP
3 About Citrus Heights
4 Notable Events5
Explanation of Accounting Terms6
Net Position Statement7
Statement of Activities8
General Fund9
City Demographics & Statistics
Message from the
Administrative Services Director
Revenues10
Expenditures11
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Message from the
Administrative Services Director
December 29, 2022
To the citizens of Citrus Heights:

Welcome to the City of Citrus Heights' second Popular Annual Financial Report (PAFR). The PAFR, also referred to as the "Citizen's Report", is intended to provide our citizens with an easy-to-read explanation of the City's finances. The PAFR provides an overview of the City's financial condition for the fiscal year ended June 30, 2022 (FY 2021-22), and a brief analysis of where the City's revenues are derived and where those dollars are spent.

The Finance Division of the Administrative Services Department is dedicated to promoting transparency and fiscal accountability within local government. This Citizen’s Report serves an important function in that mission by providing our taxpayers and stakeholders with access to City financial information.

This report contains condensed and simplified financial information from the City’s Annual Comprehensive Financial Report (ACFR).

In February 2022, the City had a unique opportunity to participate in a leadership program with the Government Finance Officers Association and the Engaging Local Government Leaders (ELGL) organization that partnered our City with a graduate student to develop its first-ever PAFR for the fiscal year ended June 30, 2021. The City is pleased to report that the 2021 PAFR was awarded a Certificate of Achievement in Popular Annual Financial Reporting from Government Finance Officers Association (GFOA). Thank you to Dena Jenkins for her work in creating the City’s second PAFR.

I hope you enjoy reading the City’s PAFR. If you have comments, questions, or suggestions please reach out to the City of Citrus Heights Administrative Services Department at [email protected] or (916) 725-2448.

Susan K. Talwar
Administrative Services Director
1 Item 9
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Provides policy direction,
Establishes goals,
Sets priorities for the City government,
Decides on land use within its borders, including the General Plan, and Appoints the City Manager, City Attorney, and all members of advisory boards and commissions.

The Citrus Heights City Council consists of five members, elected to four-year overlapping terms in district-based elections. Council members must be residents of the City. The positions of Mayor and Vice Mayor are chosen by the City Council through policy direction determined by the City Council. The Mayor conducts the City Council meetings and represents the City on ceremonial occasions.

The City Council responsibilities include:

Meet the City Council
2 Ashley Feeney
City Manager
Susan Talwar
Administrative Services
Director
Casey Kempenaar
Community
Development Director
Meghan Huber
Economic Development &
Community Engagement
Director
Regina Cave
General Services Director
Alexander Turcotte
Chief of Police
Ryan R. Jones
City Attorney
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3 About Citrus Heights
Citrus Heights is located 15 miles northeast of California's capital of Sacramento. It neighbors the City of Roseville to the North, Orangevale to the East, Fair Oaks and Carmichael to the South, and Antelope to the west. Interstate 80 runs through Citrus Heights attracting both Sacramento/San Francisco and Tahoe bound travelers. It occupies approximately 14.2 square miles and is 98% developed with two large commercial corridors and a well established residential community.

The city is rooted back to the 1800's but didn't grow significantly until gold was discovered in the foothills of the Sierra Mountains.

The construction of the Transcontinental Railroad and Lincoln Highway brought a new wave of travelers into the area. Citrus Heights remained predominantly rural until the 1960's when it began its emergence as a regionally important retail destination with the development of the Sunrise Mall and Birdcage Walk shopping centers.

The path to incorporation started in 1984 when citizen members of the chamber of commerce circulated petitions and received signatures forming the Citrus Heights Incorporation Project (CHIP). CHIP fought a long battle against Sacramento County arguing over who should be allowed to vote for incorporation and the possible tax revenue loss from a Citrus Heights incorporation. In 1993, the U.S. Supreme Court upheld the California Supreme Court ruling that only residents of the proposed city should vote on incorporation and an agreement, which included a Revenue Neutrality agreement, with the county was reached. On November 5, 1996, voters approved the measure to incorporate and Citrus Heights became a City effective January 1, 1997.

This year marks the City's 25th year of incorporation.

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20172018201920202021
Population Growth Over Time
4 City Demographics & Statistics
Population
88,306
Millennials
20,758
Retiring Soon
26,651
Median Age of Citizens

37.6 Bachelor's
Degree

21.6%
High School
Degree

90.2%
Average
Housing Price
$478,148
Total Regional
Employment
27,426
Per Capita
Personal Income
$32,659

6.6%
Unemployment
Rate
$79.8K
Avg. Earnings
Per Job
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Notable Events
5 Draft of the Sunrise
Tomorrow Specific Plan for
Sunrise Mall was completed
and approved by Council.

November 2021
September 2021
Alexander Turcotte was
promoted as the new Chief
of Police.

January 2022
Ashley Feeney joins the
City as the new City
Manager. February 2022
City Hall fully re-opens post
COVID-19 Pandemic.

March 2022
Council approved $3.5M to
payoff the outstanding
revolving line of credit
balance.

April 2022
Payments were issued for
the ARPA COVID-19 Small
Business Recovery Grant
Program.

June 2022
The 2021 Residential
Resurfacing Project was
completed.

June 2022
Final property tax deferment
was recorded under the
Revenue Neutrality
Agreement with the County
of Sacramento.

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6 Net investment in Capital Assets:

Represents the difference between the
amount paid for capital assets (such as
equipment and buildings), the
accumulated depreciation of those
assets, and any outstanding debt used to
pay for them.

Fund balance:

Governmental fund equity (assets minus
liabilities) is classified as Fund Balance
and displayed as Nonspendable,
Restricted, Committed, Assigned, or
Unassigned.

Governmental activities:

The City’s basic services that are
supported by general City revenues are
considered governmental activities,
including general government,
community development, economic
development, public safety, public
improvements, etc.

Business-type activities:

City services that are supported by
charges paid by users based on the
amount of the service they use.

Nonspendable:

Amounts that are not in a spendable
form or are required to be maintained
intact.

Restricted:

Funds that are not available for City use
because they must be used for a specific
purpose or project as required by law or
regulation.

Unrestricted:

The remaining balance available for use
that is not invested capital assets or
restricted.

Unassigned:

Includes all spendable amounts not
contained in the other classifications
Deferred Outflows:

Represents a consumption of net assets
by the City that is applicable to a future
reporting period.

Deferred Inflows:

Represents an acquisition of net assets
by the City that is applicable to a future
reporting period.

Explanation of Accounting
Terms
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7 Net Position Statement
The Statement of Net Position provides information about the financial position of the City as a whole; much like a balance sheet does for a corporation. It represents the difference between all of its assets (everything the City owns) and its liabilities (everything the City owes) on an accrual basis. It is an indication of the City’s financial health at the end of each fiscal year.

Net Position Over Time Citrus Heights experienced a decrease in its net position during the height of
the COVID-19 pandemic. For 2022, as
restaurants and retail continued to
open, the city received higher than
expected sales tax, additional funds
restricted for infrastructure projects
around the city, and paid off a
significant amount of debt. All of this
culminated in an increased net
position from 2021 and 2020.
2022 2021 2020 2019
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8 Statement of Activities
The Statement of Activities reflects the City's fiscal year revenues and costs for governmental activities and business-type activities. The net revenues are broken out by program revenue (i.e. Charges for services, operating and capital contributions, and grants) and general revenues (i.e. varies tax revenue and shared intergovernmental revenues). The net costs reflect the financial burden that was placed on the City's taxpayers by each of the programs. A summary of activities were as follows:General
Government
Public Safety Economic
Development
Culture &
Recreation
Public Ways
& Facilities
Community
Enhancement
Long-term Debt
Governmental Activities Expenses & Revenue Sources
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The General Fund is the chief operating fund of the City. It is used to account for all revenues and expenditures that are not required to be reported in another fund and is the City's primary fund. The activities being paid for through the general fund constitute the core administrative and operational tasks of the government entity. 9 General Fund
The actual total revenues were approximately $385,789 more than the final budgeted amount. Investment earnings and charges for services came in under budget; all other revenue categories exceeded the budget estimate. The largest favorable variance compared to the budget was in tax revenues, $599,268. An increase in general sales tax revenue was due to the continuing increase of sales at local businesses that had shut down or been impacted by the COVID-19 pandemic. A decrease in intergovernmental revenue was caused by grant reimbursements being delayed beyond the end of the fiscal year.

The fund balance is used to
measure the financial resources
available. As such it is a good
measure of the financial health of
the City. At the fiscal year end on
June 30, 2022, the General Fund's
fund balance totaled $11,932,391 of
which $4,486,978 was committed
for reserves and revenue
stabilization. Fund balance in the
General Fund increased by
$3,041,565 largely due to
decreased expenditures caused
by vacant positions.

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10 The City’s total revenues for governmental and business-type activities were $59,299,252 for the fiscal year ended June 30, 2022. Governmental revenues increased by $4,836,718 from last fiscal year due primarily to an increase in charges for service, capital grants, and sales and use taxes. Approximately 69.47% of the City’s key revenues are generated from four major sources.

Revenues
Revenues by
Source
Four Major Sources of Revenues
Sales and Use Taxes
Charges for Services
Operating Grants
Shared Intergovernmental-Unrestricted
Capital Grants
Utility Users Tax
Other Taxes
Property Taxes
Sales Tax - Annual receipts for the fiscal year ended June 30, 2022 increased by $1,038,526 from the prior year due to the continued economic recovery following the lifting of pandemic restrictions.

Shared Intergovernmental Revenues - Annual receipts for the fiscal year ended June 30, 2022 increased by $379,239 from the prior year. This amount represents the state motor vehicle in-lieu tax.

Grants and Contributions - Governmental Activities Operating - Governmental Activities operating grants and contributions were mainly from public safety street, road, and community enhancement grants that were for maintenance and operations as well as CARES Act allocations for CDBG Supplemental and DOJ for public safety.

Grants and Contributions - Governmental Activities Capital - The increase in capital revenues reflects receipt of additional funding for new and ongoing capital projects in the current fiscal year.

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General
Government
$ 7,729,201
Public Ways
and Facilities
$ 17,660,038
Public
Safety
$ 15,877,629
Culture and
Recreation
$ 906,037
Community
Enhancements
$ 4,085,740
Economic
Development
$ 55,751
Interest
$ 131,908
2022 Expenses by Function
11 Expenditures
Governmental and business-type activity expenses of the City for the year totaled $47,234,327. Governmental activity expenses totaled $46,446,304 or 98.33% of total expenses. Business-type activities expenses totaled $788,023 during the fiscal year.

Public safety costs represented 34.18% of total governmental activities expenses and represented the largest single expense for governmental activities. 2022 2021 2020 2019 2018
Historical Trends of Expenditures
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Contact Us
Join Us
6360 Fountain Square Drive
Citrus Heights, CA 95621
Phone: 916-725-2448
TTY/DD: CA Relay Service 7-1-1
Fax: 916-725-5799
http://www.citrusheights.net/
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Agenda Packet Page 80
ANNUAL

COMPREHENSIVE

FINANCIAL
REPORT
For the Fiscal Year Ended
June 30, 2022
Prepared By:

Finance,
A Division of the Administrative
Services Department
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Agenda Packet Page 81

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Agenda Packet Page 93
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Citrus Heights
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
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Item 9
Agenda Packet Page 94
CITY OF CITRUS HEIGHTS
Organizational Chart
CITY COUNCIL
City Manager
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Community
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Economic
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Agenda Packet Page 95
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Agenda Packet Page 112
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16 Item 9
Agenda Packet Page 113

CITY OF CITRUS HEIGHTS

STATEMENT OF NET POSITION
Governmental Business-Type
Activities Activities Total
Assets:

Current Assets:

Pooled cash and investments 44,227,366$ 1,205,475 $ 45,432,841 $ Receivables:

Accounts 964,174 188,883 1,153,057 Interest 67,934 2,315 70,249
Lease 78,846 - 78,846
Prepaid items 62,791 883 63,674
Deposits 4,000 - 4,000
Due from other governments 7,032,124 - 7,032,124 Total Curren
t Assets 52,437,235 1,397,556 53,834,791 Noncurrent Assets:

Notes and loans 5,227,463 - 5,227,463
Allowan
ce on uncollectible notes and loans (4,021,311) - (4,021,311) Land hel
d for resale 6,224,697 - 6,224,697
Lease receivable 3,905,666 - 3,905,666
Net OPEB asset 107,224 869 108,093
Capital assets n
ot being depreciated 26,128,835 - 26,128,835
Capital assets, n
et of depreciation 291,363,803 350,082 291,713,885 Total Noncu
rrent Assets 328,936,377 350,951 329,287,328 Total Assets 381,373,612 1,748,507 383,122,119 Deferred Outflows of Resources:

Pension related items 6,816,896 87,718 6,904,614 OPEB related items 363,692 2,948 366,640
Total Deferred Outflows
of Resources 7,180,588 90,666 7,271,254
Liabilities:

Current Liabilities:

Accounts payable 3,772,081 43,946 3,816,027
Accrued liabilities 757,188 9,305 766,493 Accrued interest 12,269 - 12,269
Unearned reven
ue 14,781,536 - 14,781,536
Retention
s payable 265,445 - 265,445
Deposits payable 202,774 - 202,774
Due to other govern
ments 501,140 48,523 549,663
Loans payable 82,046 - 82,046
Compensated absences - du
e within one year 1,419,891 - 1,419,891
Claims payabl
e - due within one year 917,636 - 917,636
Total Curren
t Liabilities 22,712,006 101,774 22,813,780 Noncurrent liabilities:

Compensated absences - due in more than one year 315,549 - 315,549 Claims payable - due in more than one year 1,327,188 - 1,327,188 Loans payable 522,606 - 522,606
Net pension liability 6,076,781 125,558 6,202,339 Total Noncurrent Liabilities 8,242,124 125,558 8,367,682 Total Liabilities 30,954,130 227,332 31,181,462 Deferred Inflows of Resources:

Lease 3,681,510 - 3,681,510
Pension related items 6,028,867 123,489 6,152,356 OPEB related items 815,261 6,608 821,869
Total Deferred Inflows
of Resources 10,525,638 130,097 10,655,735 Net Position:

Net investment in capital assets 316,887,986 350,082 317,238,068 Restricted for:

Housing projects 16,480,954 - 16,480,954
Stormwater maintenance 2,688,205 - 2,688,205
Streets, roads and park projects 1,824,597 - 1,824,597 Assessment district maintenance 1,522,826 - 1,522,826 Other 3,351,658 - 3,351,658
Unrestricted 4,318,206 1,131,662 5,449,868 Total Net Position 347,074,432$ 1,481,744 $ 348,556,176 $ JUNE 30, 2022
Primary Government
See Notes to Financial Statements.
17 Item 9
Agenda Packet Page 114

CITY OF CITRUS HEIGHTS

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs
Primary Government:

Governmental Activities:

General government 7,729,201$ 1,745,213$ 2,587,763$ -$ Public safety 15,877,629 2,173,237 1,253,846 - Economic development 55,751 - - -
Culture and recreation 906,037 18,313 - -
Public ways and facilities 17,660,038 5,357,787 5,344,606 3,989,926 Community enhancements 4,085,740 3,221,746 1,735,274 1,399,509 Interest on long-term debt 131,908 - - -
Total Governmental Activities 46,446,304 12,516,296 10,921,489 5,389,435 Business-Type Activities:

Solid Waste 788,023 1,092,589 - -
Total Business-Type Activities 788,023 1,092,589 - -
Total Primary Government 47,234,327$ 13,608,885$ 10,921,489$ 5,389,435$ General Revenues:

Taxes:

Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Utility users tax
Other taxes
Motor vehicle in lieu - unrestricted
Use of money and property
Other
Total General Revenues
Change in Net Position
Net Position at Beginning of Year
Restatement of Net Position
Net Position at End of Year
Program Revenues
See Notes to Financial Statements.
18 Item 9
Agenda Packet Page 115
Primary Government
Governmental Business-Type
Activities Activities Total
(3,396,225)$ - $ (3,396,225)$
(12,450,546) - (12,450,546)
(55,751) - (55,751)
(887,724) - (887,724)
(2,967,719) - (2,967,719)
2,270,789 - 2,270,789
(131,908) - (131,908)
(17,619,084) - (17,619,084)
- 304,566 304,566
- 304,566 304,566
(17,619,084) 304,566 (17,314,518)
638,183 - 638,183
32,595 - 32,595
14,412,009 - 14,412,009
1,290,165 - 1,290,165
2,794,196 - 2,794,196
50,185 - 50,185
9,683,155 - 9,683,155
311,632 (14,530) 297,102
123,409 58,444 181,853
29,335,529 43,914 29,379,443
11,716,445 348,480 12,064,925
337,712,759 1,133,264 338,846,023
(2,354,772) - (2,354,772)
347,074,432$ 1,481,744 $ 348,556,176$
Net (Expenses) Revenues and Changes in
Net Position
See Notes to Financial Statements.
19 Item 9
Agenda Packet Page 116

CITY OF CITRUS HEIGHTS

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2022
Special Revenue Funds
General
Assets:

Pooled cash and investments 24,296,659 $ -$ 560,148$ 3,685,115$ Receivables:

Accounts 604,322 - - 117
Notes and loans 6,151 1,164,178 - -
Allowance on uncollectible notes and loans - (1,164,178) - - Interest 39,784 - - -
Lease 3,984,512 - - -
Prepaid items 54,708 - - -
Deposits 4,000 - - -
Due from other governments 3,299,256 535,239 - 2,009,346 Due from other funds 228,541 - - -
Land held for resale - - 3,440,097 -
Total Assets 32,517,933$ 535,239$ 4,000,245$ 5,694,578$ Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable 890,106$ 113,177$ -$ 2,076,380$
Accrued liabilities 700,473 - - -
Unearned revenues 14,507,725 - - -
Retentions payable - - - 265,445
Deposits payable 202,774 - - -
Due to other governments 372,496 1,038 - 1,095
Due to other funds - 115,393 - -
Total Liabilities 16,673,574 229,608 - 2,342,920
Deferred Inflows of Resources:

Unavailable revenues 230,458 - - -
Lease 3,681,510 - - -
Total Deferred Inflows of Resources 3,911,968 - - -
Fund Balances:

Nonspendable 64,859 - - -
Restricted - 305,631 3,440,097 3,351,658
Committed 4,486,978 - - -
Assigned - - 560,148 -
Unassigned 7,380,554 - - -
Total Fund Balances 11,932,391 305,631 4,000,245 3,351,658 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 32,517,933$ 535,239$ 4,000,245$ 5,694,578$ Capital Projects Funds
CDBG Grants Special
Revenue Fund
General Capital
Improvements Capital
Projects Fund Streets
See Notes to Financial Statements.
20 Item 9
Agenda Packet Page 117

CITY OF CITRUS HEIGHTS

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:

Pooled cash and investments
Receivables:

Accounts
Notes and loans
Allowance on uncollectible notes and loans
Interest
Lease
Prepaid items
Deposits
Due from other governments
Due from other funds
Land held for resale
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable
Accrued liabilities
Unearned revenues
Retentions payable
Deposits payable
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Lease
Total Deferred Inflows of Resources
Fund Balances:

Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Other Total
Governmental Governmental
Funds Funds
15,685,444$ 44,227,366$
359,735 964,174
4,057,134 5,227,463
(2,857,13
3) (4,021,311)
28,150 67,934
- 3,984,512
8,083 62,791
- 4,000
1,188,283 7,032,124
- 228,541
2,784,600 6,224,697
21,254,296$ 64,002,291$
692,418$ 3,772,081$
56,715 757,188
273,811 14,781,536
- 265,445
- 202,774
126,511 501,140
113,148 228,541
1,262,603 20,508,705
338,331 568,789
- 3,681,510
338,331 4,250,299
8,083 72,942
18,770,854 25,868,240
- 4,486,978
906,853 1,467,001
(32,
428) 7,348,126
19,653,362 39,243,287
21,254,296$ 64,002,291$
See Notes to Financial Statements.
21 Item 9
Agenda Packet Page 118
7+,63$*(,17(17,21$//</()7%/$1.
22 Item 9
Agenda Packet Page 119

CITY OF CITRUS HEIGHTS

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION
JUNE 30, 2022
Fund balances of governmental funds 39,243,287$
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets net of depreciation have not been included as financial resources in governmental fund activity. 317,492,638
Long-term liabilities are not due and payable in the current period and, therefore are not reported in governmental fund activity:

Loan payable (604,652)$
Claims payable (2,244,824)
Compensated absences (1,735,440) (4,584,916)
Net pension liability not included in the governmental fund activity (6,076,781) Net OPEB asset not included in the governmental fund activity 107,224 Deferred outflows related to pension items are not included in the governmental 6,816,896 fund activity
Deferred inflows related to pension items are not included in the governmental (6,028,867) fund activity
Deferred outflows related to OPEB items are not included in the governmental 363,692 fund activity
Deferred inflows related to OPEB items are not included in the governmental (815,261) fund activity
Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds. (12,2 69) Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 568,789
Net Position of Governmental Activities 347,074,432$
See Notes to Financial Statements.
23 Item 9
Agenda Packet Page 120

CITY OF CITRUS HEIGHTS

STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Special Revenue Funds
General
Revenues:

Taxes 19,197,868$ -$ -$ -$
Assessments - - - -
Licenses and permits 3,138,451 - 136,004 -
Intergovernmental 12,629,880 1,232,972 - 3,268,099
Charges for services 1,824,188 - - -
Use of money and property 465,704 - - -
Fines and forfeitures 799,788 - - -
Contributions 1,590 - - -
Miscellaneous 394,089 165,300 - -
Total Revenues 38, 451,558 1,398,272 136,004 3,268,099
Expenditures:

Current:

General government 8,076,452 - - -
Public safety 18,749,531 - - -
Economic development 445,267 - 82,333 -
Culture and recreation 909,297 - - -
Public ways and facilities - - - 26,030
Community enhancements 3,024,578 873,060 - 15,464
Capital outlay 55,413 - - 10,234,978
Debt service:

Principal retirement 3,583,049 - - -
Interest and fiscal charges 184,839 - - -
Total Expenditures 35, 028,426 873,060 82,333 10,276,472 Excess (Deficiency) of Revenues
Over (Under) Ex penditures 3,423,132 525,212 53,671 (7,008,373) Other Financing Sources (Uses):

Transfers in 95,433 2,386 - 10,756,655
Transfers out (477,000) (456,085) - (16,106)
Loan issued - - - -
Proceeds from sale of capital asset - - - -
Total Other Financing Sources
(Uses) (381,5 67) (453,699) - 10,740,549
Net Change in F und Balances 3,041,565 71,513 53,671 3,732,176 Fund Balances, Beginning of Year 8,890,826 234,118 3,946,574 (380,518) Fund Balances, End of Year 11,932,391$ 305,631$ 4,000,245$ 3,351,658$ Capital Projects Funds
CDBG Grants Special
Revenue Fund
General Capital
Improvements Capital
Projects Fund Streets
See Notes to Financial Statements.
24 Item 9
Agenda Packet Page 121

CITY OF CITRUS HEIGHTS

STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Revenues:

Taxes
Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Miscellaneous
Total Revenues
Expenditures:

Current:

General government
Public safety
Economic development
Culture and recreation
Public ways and facilities
Community enhancements
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Loan issued
Proceeds from sale of capital asset
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Other Total
Governmental Governmental
Funds Funds
-$ 19,197,868$
19,465 19,465
265,661 3,540,116
8,196,303 25,327,254
5,901,865 7,726,053
(154
,072) 311,632
466,032 1,265,820
2,826 4,416
132,102 691,491
14,830,182 58,084,115
9,569 8,086,021
1,492,614 20,242,145
48,713 576,313
52,643 961,940
6,322,251 6,348,281
226,578 4,139,680
404,765 10,695,156
- 3,583,049
- 184,839
8,557,133 54,817,424
6,273,049 3,266,691
573,842 11,428,316
(10,
479,125) (11,428,316)
396,601 396,601
150,676 150,676
(9,358,006) 547,277
(3,084,957) 3,813,968
22,738,319 35,429,319
19,653,362$ 39,243,287$
See Notes to Financial Statements.
25 Item 9
Agenda Packet Page 122

CITY OF CITRUS HEIGHTS

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
Net change in fund balances - total governmental funds 3,813,968$ Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.

Capital outlay 10,695,156$
Depreciation (12,660,792)
Proceeds from sale of capital assets (150,676)
Gain on disposition of capital assets 123,409 (1,992,903) Repayment of long-term liabilities is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position.

Loan issued (396,601)
Loan repayments 3,583,049 3,186,448
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 52,931
Certain long-term liabilities were reported in the Government-Wide Statement of Activities and Changes in Net Position, but they do not require the use of current financial resources. Therefore, long-term liabilities were not reported as expenditures in governmental funds. These amounts represented the changes in those long-term liabilities:

Changes in compensated absences (38,789)
Changes in claims payable (308,824) (347,613) Pension expenses recognized in accordance with GASB 68 not recognized in the governmental fund activity. 6,825,985
OPEB expenses recognized in accordance with GASB 75 not recognized in the governmental fund activity. 222,404
Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. (44,775)
Change in Net Position of Governmental Activities 11,716,445$ See Notes to Financial Statements.
26 Item 9
Agenda Packet Page 123

CITY OF CITRUS HEIGHTS

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2022
Assets:

Current:

Pooled cash and investments 1,205,475$
Receivables:

Accounts 188,883
Interest 2,315
Prepaid costs 883
Total Current Assets 1,397,556
Noncurrent:

Capital assets - net of accumulated depreciation 350,082 Net OPEB asset 869
Total Noncurrent Assets 350,951
Total Assets 1,748,507
Deferred Outflows of Resources:

Pension related items 87,718
OPEB related items 2,948
Total Deferred Outflows of Resources 90,666
Liabilities:

Current:

Accounts payable 43,946
Accrued liabilities 9,305
Due to other governments 48,523
Total Current Liabilities 101,774
Noncurrent:

Net pension liability 125,558
Total Noncurrent Liabilities 125,558
Total Liabilities 227,332
Deferred Inflows of Resources:

Pension related items 123,489
OPEB related items 6,608
Total Deferred Inflows of Resources 130,097
Net Position:

Invested in capital assets 350,082
Unrestricted 1,131,662
Total Net Position 1,481,744$
Solid Waste
See Notes to Financial Statements.
27 Item 9
Agenda Packet Page 124

CITY OF CITRUS HEIGHTS

STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
Operating Revenues:

Sales and service charges 1,092,589$
Miscellaneous 58,444
Total Operating Revenues 1,151,033
Operating Expenses:

Salaries and benefits 236,936
Professional services 135,847
Materials and supplies 182,822
General and adminstative expenses 224,544
Depreciation expense 7,874
Total Operating Expenses 788,023
Operating Income 363,010
Nonoperating Revenues/Expenses:

Investment earnings (14,530)
Total Nonoperating Revenues (14,530)
Changes in Net Position 348,480
Net Position:

Beginning of Year 1,133,264
End of Fiscal Year 1,481,744$
Solid Waste
See Notes to Financial Statements.
28 Item 9
Agenda Packet Page 125

CITY OF CITRUS HEIGHTS

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
Cash Flows from Operating Activities:

Cash received from customers and users 1,077,788$
Cash paid to suppliers for goods and services (267,230) Cash paid to employees for services (507,301)
Net Cash Provided by Operating Activities 303,257
Cash Flows from Investing Activities:

Investment earnings (16,126)
Net Cash Used for Investing Activities (16,126)
Net Increase in Cash
and Cash Equivalents 287,131
Cash and Cash Equivalents at Beginning of Year 918,344
Cash and Cash Equivalents at End of Year 1,205,475$
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities:

Operating income 363,010$
Adjustments to Reconcile Operating Income
Net Cash Provided by Operating Activities:

Depreciation 7,874
(Increase) decrease in accounts receivable (73,851)
(Increase) decrease in due from other governments 606
(Increase) decrease in prepaid expense (883)
Increase (decrease) in accounts payable 31,440
Increase (decrease) in accrued liabilities 9,305
Increase (decrease) in due to other governments 11,577
Increase (decrease) in pension and related items (43,805) Increase (decrease) in OPEB and related items (2,016)
Total Adjustments (59,753)
Net Cash Provided by
Operating Activities 303,257$
Solid Waste
See Notes to Financial Statements.
29 Item 9
Agenda Packet Page 126

CITY OF CITRUS HEIGHTS

STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2022
Custodial Funds
Assets:

Cash and cash equivalents 327,047$
Total Assets 327,047
Net Position:

Restricted for individuals, organizations and other governments 327,047 Total Net Position 327,047$
See Notes to Financial Statements.
30 Item 9
Agenda Packet Page 127

CITY OF CITRUS HEIGHTS

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2022
Additions:

Intergovernmental 734,337$
Total Additions 734,337
Deductions:

Contractual services 752,597
Total Deductions 752,597
Changes in Net Position (18,260)
Net Position - Beginning of the Year 345,307
Net Position - End of the Year 327,047$
Custodial Funds
See Notes to Financial Statements.
31 Item 9
Agenda Packet Page 128
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Agenda Packet Page 131
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5(48,5('6833/(0(17$5<,1)250$7,21
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CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Taxes 17,649,600$ 18,598,600 $ 19,197,868 $ 599,268 $ Licenses and permits 1,630,200 2,833,500 3,138,451 304,951 Intergovernmental 12,399,026 13,422,476 12,629,880 (792,596) Charges for services 1,862,942 1,829,842 1,824,188 (5,654) Use of money and property 600,376 419,451 465,704 46,253 Fines and forfeitures 983,400 760,000 799,788 39,788 Contributions 10,000 1,000 1,590 590
Miscellaneous 66,900 200,900 394,089 193,189 Total Revenues 35,202,444 38,065,769 38,451,558 385,789 Expenditures:

General government 8,000,939 8,850,026 8,076,452 773,574 Public safety 21,962,176 22,212,176 18,749,531 3,462,645 Economic development 602,447 554,749 445,267 109,482 Culture and recreation 752,165 1,068,665 909,297 159,368 Community enhancements 3,058,927 3,062,427 3,024,578 37,849 Capital outlay 7,081 7,081 55,413 (48,332)
Debt service:

Principal retirement 76,169 3,596,170 3,583,049 13,121 Interest and fiscal charges 332,845 332,845 184,839 148,006 Total Expenditures 34,792,749 39,684,139 35,028,426 4,655,713 Excess (Deficiency) of Revenues
Over (Under) Expenditures 409,695 (1,618,370) 3,423,132 5,041,502 Other Financing Sources (Uses):

Transfers in - - 95,433 95,433
Transfers out (487,000) (487,000) (477,000) 10,000 Total Other Financing Sources
(Uses) (487,000) (487,000) (381,567) 105,433 Net Change in Fund Balance (77,305) (2,105,370) 3,041,565 5,146,935 Fund Balances, Beginning of Year 8,890,826 8,890,826 8,890,826 - Fund Balances, End of Year 8,813,521$ 6,785,456$ 11,932,391$ 5,146,935$ See Notes to Required Supplementary Information.
70 Item 9
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CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

CDBG GRANTS
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental 900,000$ 900,000$ 1,232,972$ 332,972$ Miscellaneous - - 165,300 165,300 Total Revenues 900,000 900,000 1,398,272 498,272 Expenditures:

Current:

Community enhancements 741,459 1,233,319 873,060 360,259 Capital outlay 379,040 - - - Total Expenditures 1,120,499 1,233,319 873,060 360,259 Excess (Deficiency) of Revenues
Over (Under) Expenditures (220,499) (333,319) 525,212 858,531 Other Financing Sources(Uses):

Transfers out (743,478) (743,478) (456,085) 287,393 Transfers in - - 2,386 2,386 Total Other Financing Sources
(Uses) (743,478) (743,478) (453,699) 289,779 Net Change in Fund Balance (963,977) (1,076,797) 71,513 1,148,310 Fund Balances, Beginning of Year 234,118 234,118 234,118 - Fund Balances, End of Year (729,859)$ (842,679)$ 305,631$ 1,148,310$ See Notes to Required Supplementary Information.
71 Item 9
Agenda Packet Page 168

CITY OF CITRUS HEIGHTS

COST SHARING MULTIPLE-EMPLOYER PLAN

SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, 2022
2015 2016 2017 2018
Miscellaneous Rate Plan
Rate Plan's Proportion of the Net Pension Liability 0.06364% 0.07230% 0.07496% 0.07939% Rate Plan's Proportionate Share of the Net Pension Liability 3,959,792$ 4,962,609 $ 6,486,625 $ 7,873,259$ Rate Plan's Covered Payroll 7,143,034$ 7,437,222 $ 8,102,528 $ 8,017,935$ Rate Plan's Proportionate Share of the Net Pension Liability as Percentage of Covered Payroll 55.44% 66.73% 80.06% 98.20% Safety Rate Plan
Rate Plan's Proportion of the Net Pension Liability 0.05785% 0.05364% 0.05852% 0.06404% Rate Plan's Proportionate Share of the Net Pension Liability 3,599,860$ 3,681,807 $ 5,064,060 $ 6,351,188$ Rate Plan's Covered Payroll 7,239,564$ 7,350,834 $ 7,921,496 $ 8,247,151$ Rate Plan's Proportionate Share of the Net Pension Liability as Percentage of Covered Payroll 49.72% 50.09% 63.93% 77.01% Total Plan
Plan Proportion of the Net Pension Liability 0.12149% 0.12594% 0.13349% 0.14343% Plan Proportionate Share of the Net Pension Liability 7,559,652$ 8,644,416 $ 11,550,685 $ 14,224,447$ Plan Covered Payroll 14,382,598$ 14,788,056$ 16,024,024$ 16,265,086$ Plan Proportionate Share of the Net Pension Liability as Percentage of Covered Payroll 52.56% 58.46% 72.08% 87.45% The Pension Plan's (PERF-C) Fiduciary Net Position as a Percentage of the Total Pension Liability 79.82% 78.40% 74.06% 73.31% Notes to Schedule:
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only eight years are shown.

Changes of Assumptions: In 2021, there were no changes. In 2020, there were no changes. In 2019, there were no changes. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017.

There were no changes in the discount rate in 2018. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 pe rcent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amount reported were based on the 7.5 percent discount rate.

Benefit Changes: There were no changes to benefit terms. However, the figures above do not include any liability impact that may have resulted from plan changes which occurred after the measurement dates. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

See Notes to Required Supplementary Information.
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2019 2020 2021 2022

0.07897% 0.08366% 0.08832% 0.07394%
7,610,202$ 8,572,628$ 9,609,910$ 3,998,659$ 7,889,233$ 8,319,602$ 8,715,322$ 8,169,066$

96.46% 103.04% 110.26% 48.95%

0.06658% 0.07275% 0.08190% 0.04075%
6,415,392$ 7,454,716$ 8,910,669$ 2,203,680$ 8,354,763$ 7,715,475$ 8,420,924$ 7,542,123$

76.79% 96.62% 105.82% 29.22%

0.14555% 0.15641% 0.17022% 0.11468%
14,025,594$ 16,027,344$ 18,520,579$ 6,202,339$ 16,243,996$ 16,035,077$ 17,136,246$ 15,711,189$

86.34% 99.95% 108.08% 39.48%

75.26% 75.26% 75.10% 88.29%
See Notes to Required Supplementary Information.
73 Item 9
Agenda Packet Page 170

CITY OF CITRUS HEIGHTS

COST SHARING MULTIPLE-EMPLOYER PLAN

SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, 2022
2015 2016 2017 2018
Miscellaneous Rate Plan
Actuarially Determined Contribution 1,237,660$ 1,052,606 $ 1,109,977 $ 1,127,777$ Contribution in Relation to the Actuarially Determined Contribution (1,237,660) (1,052,606) (1,109,977) (1,127,777) Contribution Deficiency (Excess) -$ -$ -$ -$
Covered Payroll 7,437,222$ 8,102,528 $ 8,017,935 $ 7,889,233$ Contributions as a Percentage of Covered Payroll 16.64% 12.99% 13.84% 14.30% Safety Rate Plan
Actuarially Determined Contribution 1,937,578$ 1,460,317 $ 1,605,543 $ 1,675,225$ Contribution in Relation to the Actuarially Determined Contribution (1,937,578) (1,460,317) (1,605,543) (1,675,225) Contribution Deficiency (Excess) -$ -$ -$ -$
Covered Payroll 7,350,834$ 7,921,496 $ 8,247,151 $ 8,354,763$ Contributions as a Percentage of Covered Payroll 26.36% 18.43% 19.47% 20.05% Total Plan
Actuarially Determined Contribution 3,175,238$ 2,512,923 $ 2,715,520 $ 2,803,002$ Contribution in Relation to the Actuarially Determined Contribution (3,175,238) (2,512,923) (2,715,520) (2,803,002) Contribution Deficiency (Excess) -$ -$ -$ -$
Covered Payroll 14,788,056$ 16,024,024 $ 16,265,086 $ 16,243,996$ Contributions as a Percentage of Covered Payroll 21.47% 15.68% 16.70% 17.26% Note to Schedule:

Valuation Date:

Methods and assumptions used to determine contribution rates:

Actuarial Cost Method
Amortization method
Asset valuation method
Inflation
Payroll Growth
Projected Salary Increases
Investment Rate of Return
Retirement Age
Mortality
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only eight years are shown.

Level percentage of pay, a summary of the current policy is provided in the table below:

June 30, 2019
Varies by Entry Age and Service
The mortality table used was developed based onCalPERS’ specific data. The table includes 15 years of mortality improvements using 90 percent of Society of Actuaries' Scale 2016. For more details on this table, please refer to the 2017 experience study report.

All other actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report may be accessed on the CalPERS website at www.calpers.ca.gov under Forms and Publications.

7.00% (net of pension plan investment and administrative expenses, includes inflation) Entry Age Normal Cost Method
Direct rate smoothing

2.50%

2.75%
See Notes to Required Supplementary Information.
74 Item 9
Agenda Packet Page 171
2019 2020 2021 2022
1,259,805$ 1,419,774$ 1,524,519$ 1,582,843$ (1,259,805) (1,419,774) (1,524,519) (1,582,843) -$ - $ - $ - $ 8,319,602$ 8,715,322$ 8,169,066$ 8,285,854$

15.14% 16.29% 18.66% 19.10%
1,743,186$ 1,782,277$ 1,958,149$ 1,965,298$ (1,743,186) (1,782,277) (1,958,149) (1,965,298) -$ - $ - $ - $ 7,715,475$ 8,420,924$ 7,542,123$ 7,104,170$

22.59% 21.16% 25.96% 27.66%
3,002,991$ 3,202,051$ 3,482,668$ 3,548,141$ (3,002,991) (3,202,051) (3,482,668) (3,548,141) -$ - $ - $ - $ 16,035,077$ 17,136,246$ 15,711,189$ 15,390,024$

18.73% 18.69% 22.17% 23.05%
See Notes to Required Supplementary Information.
75 Item 9
Agenda Packet Page 172

CITY OF CITRUS HEIGHTS

SCHEDULE OF CHANGE IN THE NET OPEB LIABILITY/(ASSET) AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2018 2019 2020 2021 2022
Total OPEB Liability
Service cost 205,006$ 211,156 $ 217,491 $ 217,915 $ 245,140$ Interest on the total OPEB liability 149,338 171,850 195,735 192,196 215,907 Actual and expected experience difference - - (380,831) - (31,942) Changes in assumptions - - (43,330) (29,367) (15,583)
Actual and expected earnings difference - - - - (105,999) Benefit payments (20,597) (33,358) (37,626) (46,180) (68,364) Net change in total OPEB liability 333,747 349,648 (48,561) 334,564 239,159 Total OPEB liability - beginning 2,017,702 2,351,449 2,701,097 2,652,536 2,987,100 Total OPEB liability - ending 2,351,449$ 2,701,097$ 2,652,536$ 2,987,100$ 3,226,259$ Plan Fiduciary Net Position
Contribution - employer 373,000$ 378,000 $ 288,000 $ - $ -$ Net investment income 159,817 143,701 140,138 92,830 734,994 Benefit payments (20,597) (33,358) (37,626) (46,180) (68,364) Administrative expense (837) (3,288) (479) (1,282) (1,011) Net change in plan fiduciary net position 511,383 485,055 390,033 45,368 665,619 Plan fiduciary net position - beginning 1,236,894 1,748,277 2,233,332 2,623,365 2,668,733 Plan fiduciary net position - ending (b) 1,748,277$ 2,233,332$ 2,623,365$ 2,668,733$ 3,334,352$ Net OPEB Liability/(Asset) 603,172$ 467,765$ 29,171$ 318,367$ (108,093)$ Plan fiduciary net position as a percentage of the total OPEB liability 74.35% 82.68% 98.90% 89.34% 103.35% Covered-employee payroll 18,696,235$ 18,764,996$ 19,084,505$ 19,487,524$ 19,538,878$ Net OPEB liability/(asset) as a percentage of covered-employee payroll 3.23% 2.49% 0.15% 1.63% -0.55% Notes to Schedule:
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.

Changes in Assumptions:In 2022 and 2021, no changes. In 2020, no changes. In 2019, Demographic assumptions were updated to CalPERS 1997-2015 Experience Study, and mortality improvement scale was updated to Scale MP-2018.

See Notes to Required Supplementary Information.
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CITY OF CITRUS HEIGHTS

SCHEDULE OF OPEB CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2018 2019 2020 2021 2022
378,000$ 288,000$ 296,000$ 248,000$ 255,000$ (378,000) (288,000) (296,000) (68,364) (352,003) -$ -$ -$ 179,636$ (97,003)$ 18,764,996$ 19,084,505 $ 19,487,524 $ 19,538,878 $ 16,163,096$

2.01% 1.51% 1.52% 1.27% 1.58%
Notes to Schedule:

Methods and assumptions used to determine contributions:

Valuation Date June 30, 2021
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll Amortization Method Level percent of pay
Amortization Period 15-year average remaining fixed period for 2019/20 Asset Valuation Method Investment gains and lossed spread over 5-year rolling period Discount Rate 6.75%
Inflation 2.75%
Non-Medicare – 7.25% for 2021, decreasing to an ultimate rate of 4.0% in 2076 and later years Medicare – 6.3% for 2021, decreasing to an ultimate rate of 4.0% in 2076 and later years Mortality Rate CalPERS 1997-2015 Experience
Study
Mortality Improvement Mortality projected fully generational wit h Society of Actuaries Scale MP-2018 Medical Trend
Actuarially Determined Contribution
Contribution in Relation to the Actuarially Determined Contribu tions Contribution Deficiency (Excess)
Covered-employee payroll
Contributions as a percentage of covered-employee payroll (1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.

See Notes to Required Supplementary Information.
77 Item 9
Agenda Packet Page 174
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78 Item 9
Agenda Packet Page 175

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Agenda Packet Page 176

NON-MAJOR GOVERNMENTAL FUNDS
The following funds are reported in total on the Governmental Fund Financial Statements under the column Other Governmental Funds.

SPECIAL REVENUE FUNDS
HOME Program Grants – Accounts for HOME Program Grant funds used for low income housing activities.

Community Events – Accounts for funds received and expended for the City’s community events.

Code Enforcement – Accounts for funds to be used on Code Enforcement for neighborhood enhancement activities.

Gas Tax – Accounts for State gas tax revenues used for street maintenance and construction.

Road Maintenance and Rehabilitation – Accounts for revenue and expenditures on deferred maintenance on local streets and road systems with State funds provided by the Road Repair and Accountability Act SB1.

Stormwater Utility Tax – Accounts for revenues and expenditures associated with the administration and coordination of stormwater drainage activities as supported by a parcel tax.

Road Maintenance – Accounts for sales tax revenue collected in accordance with a voter approved special tax to be used for repairs and maintenance of streets.

Transit – Accounts for Transportation Development Act revenues restricted for the City’s transportation needs.

Transportation Development Act – Accounts for Transportation Development Act monies received for road and sidewalk improvement purposes and transit related activities.

Police – Accounts for police revenues received that are restricted to fu nd programs designed to combat drug abuse and divert gang activity.

Police Grants – Accounts for police grants received that are restricted to fund specific police programs, including sobriety checkpoints, methamphetamine enforcement, st olen vehicles, children exposed to domestic violence and other programs.

Supplemental Law Enforcement Services (SLES) – Accounts for revenues and expenditures associated with State funds provided as a match for the COPS Universal Hiring Grant.

Property Based Improvement District – Accounts for funds associated with the City’s Property Based Improvement District.

Housing Agency – Accounts for the housing assets of the former redevelopment agency that are used for low and moderate income housing activities.

Roadway Development Fees – Accounts for the revenues and expenditures associated with new development of infrastructure and low income housing.

Housing Mitigation Development Fees – Accounts for the revenues and expenditures associated with new development of infrastructure and low income housing.

Tree Mitigation Fees – Accounts for the revenues and expenditures associated with new development of infrastructure and low income housing.
80 Item 9
Agenda Packet Page 177

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Police Donations – $FFRXQWVIRUGRQDWLRQVUHFHLYHGIRU. DQGRWKHUSROLFHDFWLYLWLHVDQGSURJUDPV

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Measure A Construction – $FFRXQWV IRU 0HDVXUH $ UHYHQXHV UHFHLYHG IURP WKH 6DFUDPHQWR7UDQVSRUWDWLRQ$XWKRULW\WKDWDUHUHVWULFWHGIRUH[SHQGLWXUHVDVVRFLDWHGZLWKVSHFLILFSXUSRVHV LQFOXGLQJFRQVWUXFWLRQXSJUDGHDQGLPSURYHPHQWVRIWKH&LW\¶VURDGZD\V
Community Capital Replacement – $FFRXQWVIRUIXQGVH[SHQGHGRQYDULRXVFDSLWDOLPSURYHPHQWDQG UHSODFHPHQWSURMHFWVLQFOXGLQJYHKLFOHUHSODFHPHQW

Streets Capital Projects Fund±$FFRXQWVIRUIXQGVH[SHQGHGRQYDULRXVVWUHHWFDSLWDOLPSURYHPHQWDQG SDYLQJSURMHFWVLQFOXGLQJDQLQWHUVHFWLRQLPSURYHPHQWVSURMHFWDQG2OG$XEXUQ%LNH7UDLOGHYHORSPHQW

81 Item 9
Agenda Packet Page 178

CITY OF CITRUS HEIGHTS

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:

Pooled cash and investments 806,706$ 774,436$ 826,827$ 281,177$ Receivables:

Accounts - 316,724 296 -
Notes and loans 2,622,469 - - -
Allowance on uncollectible notes and loans (2,622,468) - - - Interest 1,459 970 1,638 2,516
Prepaid costs - - 447 -
Due from other governments 55,858 5,533 165,617 305,250 Land held for resale - - - -
Total Assets 864,024 $ 1,097,663 $ 994,825$ 588,943$ Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable 34,544$ 12,149$ 108,675$ -$ Accrued liabilities - 15,439 10,960 -
Unearned revenues - - - -
Due to other governments - 4,845 10,611 -
Due to other funds 21,324 - - -
Total Liabilities 55,868 32,433 130,246 -
Deferred Inflows of Resources:

Unavailable revenues - 295,320 296 -
Total Deferred Inflows of Resources - 295,320 296 -
Fund Balances:

Nonspendable - - 447 -
Restricted 808,156 769,910 863,836 588,943
Assigned - - -
Unassigned - - - -
Total Fund Balances 808,156 769,910 864,283 588,943
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 864,024 $ 1,097,663 $ 994,825$ 588,943$ Special Revenue Funds
HOME Program
Grants
Code
Enforcement Gas Tax
Road
Maintenance and
Rehabilitation
82 Item 9
Agenda Packet Page 179

CITY OF CITRUS HEIGHTS

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:

Pooled cash and investments
Receivables:

Accounts
Notes and loans
Allowance on uncollectible notes and loans
Interest
Prepaid costs
Due from other governments
Land held for resale
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable
Accrued liabilities
Unearned revenues
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

(CONTINUED)
2,842,682$ 3 ,368,335$ 20,267 $ 133,067$ - - - - - - - - - - - - 5,750 5,720 79 240 447 447 - - 409,697 - 70,434 - - - - - 3,258,576$ 3 ,374,502$ 90,780 $ 133,307$ 285,956$ 110,961 $ 12 $ - $ 9,159 9,429 4,583 - - - - - 42,073 - - - - - - - 337,188 120,390 4,595 - - - - - - - - - 447 447 - - 2,920,941 3, 253,665 86,185 133,307 - -
- - - - 2,921,388 3, 254,112 86,185 133,307 3,258,576$ 3 ,374,502$ 90,780 $ 133,307$ Special Revenue Funds
Stormwater Utility
Tax
Road
Maintenance Transit
Transportation
Development Act
83 Item 9
Agenda Packet Page 180

CITY OF CITRUS HEIGHTS

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:

Pooled cash and investments
Receivables:

Liabilities:

Accounts payable
Accrued liabilities
Unearned revenues
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
1,144,408$ - $ 108,785$ 9,680$
- - - -
- - - -
- - - -
1,912 - 201 -
- - - -
14,995 73,280 - -
- - - -
1,161,315$ 73,280 $ 108,986$ 9,680 $ 7,745$ 8,368$ 10,839$ -$
2,370 4,775 - -
- - 98,147 -
- 741 - 9,680
- 91,824 - -
10,115 105,708 108,986 9,680
- - - -
- - - -
- - - -
1,151,200 - - -
- - - -
- (32,428) - -
1,151,200 (32,428) - -
1,161,315$ 73,280 $ 108,986$ 9,680 $ Special Revenue Funds
Police Police Grants
Supplemental
Law Enforcement
Services (SLES)
Property Based
Improvement
District
84 Item 9
Agenda Packet Page 181

CITY OF CITRUS HEIGHTS

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:

Pooled cash and investments
Receivables:

Liabilities:

Accounts payable
Accrued liabilities
Unearned revenues
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

(CONTINUED)
31,182$ 633,081 $ 377,989$ 203,139$ - 32,209 - - 1,434,665 - - - (234,665) - - - - 1,155 679 369 - - - 1,367 - - - - 2,784,600 - - - 4,015,782$ 666,445 $ 378,668$ 204,875$ -$ 16,320$ - $ 1,225$ - - - - - - - - - - - - - - - - - 16,320 - 1,225 - 32,209 - - - 32,209 - - - - - 1,367 4,015,782 617,916 378,668 202,283 - - - - - - - 4,015,782 617,916 378,668 203,650 4,015,782$ 666,445 $ 378,668$ 204,875$ Special Revenue Funds
Housing Agency
Roadway
Development
Fees
Housing
Mitigation
Development
Fees
Tree Mitigation
Fees
85 Item 9
Agenda Packet Page 182

CITY OF CITRUS HEIGHTS

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:

Pooled cash and investments
Receivables:

Liabilities:

Accounts payable
Accrued liabilities
Unearned revenues
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
222,309$ 183,661 $ 104,078$ 21,266 $ - 6,908 - -
- - - -
- - - -
400 327 - 37
- - - -
- - 87,619 -
- - - -
222,709$ 190,896 $ 191,697$ 21,303 $ -$ -$ 16,033$ 543$
- - - -
- - 175,664 -
- - - 15
- - - -
- - 191,697 558
- 6,908 - -
- 6,908 - -
- - - -
222,709 183,988 - 20,745
- - -
- - - -
222,709 183,988 - 20,745
222,709$ 190,896 $ 191,697$ 21,303 $ Special Revenue Funds
Park Facilities
Development
Fees
Transit
Development
Fees Other Grants AD 98-02 Zone 3
86 Item 9
Agenda Packet Page 183

CITY OF CITRUS HEIGHTS

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:

Pooled cash and investments
Receivables:

Liabilities:

Accounts payable
Accrued liabilities
Unearned revenues
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

(CONTINUED)
28,829$ 70,895 $ 671 $ 1,671 $ - - - - - - - - - - - - 52 130 - - - - - - - - - - - - - - 28,881$ 71,025 $ 671 $ 1,671 $ -$ 489 $ 626 $ 709 $ - - - - - - - - - - - 962 - - - - - 489 626 1,671 - - - - - - - - - - - - 28,881 70,536 45 - - - - - - - - - 28,881 70,536 45 - 28,881$ 71,025 $ 671 $ 1,671 $ Special Revenue Funds
Assessment
District Zone 1
Assessment
District Zone 2
Assessment
District Zone 3
Assessment
District Zone 4
87 Item 9
Agenda Packet Page 184

CITY OF CITRUS HEIGHTS

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:

Pooled cash and investments
Receivables:

Liabilities:

Accounts payable
Accrued liabilities
Unearned revenues
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
141,400$ 69,629 $ 841,928$ 35,531$ - - - -
- - - -
- - - -
255 125 1,593 62
- - - -
- - - -
- - - -
141,655$ 69,754 $ 843,521 $ 35,593 $ 426$ 1,172$ 2,495$ 519$
- - - -
- - - -
315 - 15,242 -
- - - -
741 1,172 17,737 519
- - - -
- - - -
- - - -
140,914 68,582 825,784 35,074
- - - -
- - - -
140,914 68,582 825,784 35,074
141,655$ 69,754 $ 843,521 $ 35,593 $ Special Revenue Funds
Assessment
District 98-01
Assessment
District 98-02
Assessment
District 03-01
Assessment
District 98-02
Zone 2
88 Item 9
Agenda Packet Page 185

CITY OF CITRUS HEIGHTS

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:

Pooled cash and investments
Receivables:

Liabilities:

Accounts payable
Accrued liabilities
Unearned revenues
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

(CONTINUED)
23,732$ 69,031 $ 15,986 $ 87,524 $ - 3,598 - - - - - - - - - - 53 - - 132 - - - - - - - - - - - - 23,785$ 72,629 $ 15,986 $ 87,656 $ 918$ 27,194 $ - $ - $ - - - - - - - - 190 41,837 - - - - - - 1,108 69,031 - - - 3,598 - - - 3,598 - - - - - - 22,677 - 15,986 87,656 - - - - - - - 22,677 - 15,986 87,656 23,785$ 72,629 $ 15,986 $ 87,656 $ Special Revenue Funds
Assessment
District 03-01
Zone 2
Lighting
Assessment
District
Police
Donations
Assessment
District 03-01
Zone 3
89 Item 9
Agenda Packet Page 186

CITY OF CITRUS HEIGHTS

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:

Pooled cash and investments
Receivables:

Liabilities:

Accounts payable
Accrued liabilities
Unearned revenues
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Total Other
Governmental
Funds
1,289,792$ 915,750 $ 15,685,444 $ - - 359,735
- - 4,057,134
- - (2,857,133)
2,296 - 28,150
5,375 - 8,083
- - 1,188,283
- - 2,784,600
1,297,463$ 915,750 $ 21,254,296 $ 35,603$ 8,897$ 692,418$
- - 56,715
- - 273,811
- - 126,511
- - 113,148
35,603 8,897 1,262,603
- - 338,331
- - 338,331
5,375 - 8,083
1,256,485 - 18,770,854
- 906,853 906,853
- - (32,428)
1,261,860 906,853 19,653,362
1,297,463$ 915,750 $ 21,254,296 $ Capital Projects Funds
Measure A
Construction
Community
Capital
Replacement
90 Item 9
Agenda Packet Page 187
7+,63$*(,17(17,21$//</()7%/$1.
91 Item 9
Agenda Packet Page 188

CITY OF CITRUS HEIGHTS

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Revenues:

Assessments -$ -$ -$ -$
Licenses and permits - - - -
Intergovernmental 55,879 - - 2,105,730
Charges for services - - 738,400 -
Use of money and property (8,981) - (6,017) (9,684)
Fines and forfeitures - - - -
Contributions - - - -
Miscellaneous 107,103 - - -
Total Revenues 154,001 - 732,383 2,096,046 Expenditures:

Current:

General government - - - -
Public safety - - 671,916 -
Economic development - - - -
Culture and recreation - - - -
Public ways and facilities - - - 1,532,926
Community enhancements 56,559 - - -
Capital outlay - - - 57,000
Total Expenditures 56,559 - 671,916 1,589,926
Excess (Deficiency) of Revenues
Over (Under) E xpenditures 97,442 - 60,467 506,120
Other Financing Sources (Uses):

Transfers in - - 59,500 -
Transfers out - (81,713) - (575,091)
Loans issued - - - -
Proceeds from sale of capital asset - - - -
Total Other Financing Sources
(Uses) - (81 ,713) 59,500 (575,091)
Net Change in Fund Balances 97,442 (81,713) 119,967 (68,971) Fund Balances, Beginning of Year 710,714 81,713 649,943 933,254 Fund Balances, End of Year 808,156$ -$ 769,910$ 864,283$ Special Revenue Funds
HOME Program
Grants
Community
Events
Code
Enforcement Gas Tax
92 Item 9
Agenda Packet Page 189

CITY OF CITRUS HEIGHTS

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022

Revenues:

Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Miscellaneous
Total Revenues
Expenditures:

Current:

General government
Public safety
Economic development
Culture and recreation
Public ways and facilities
Community enhancements
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):

(CONTINUED)
-$ 19,465$ - $ -$ - - - - 1,768,222 - 2,715,221 7,539 - 3,965,879 - 349,164 (14,197) (33,456) (35,580) (492) - - - - - - - - - 11,287 - - 1,754,025 3,963,175 2,679,641 356,211 - - - - - - - - - - - - - - - - - 2,313,148 1,331,021 234,610 - - - - - - - - - 2,313,148 1,331,021 234,610 1,754,025 1,650,027 1,348,620 121,601 - - - - (4,389,471) (3,381, 963) (273,517) - - - - - - - - - (4,389,471) (3,381, 963) (273,517) - (2,635,446) (1,731, 936) 1,075,103 121,601 3,224,389 4,653,324 2,179,009 (35,416) 588,943$ 2,921,388 $ 3,254,112 $ 86,185 $ Special Revenue Funds
Road
Maintenance and
Rehabilitation
Stormwater
Utility Tax
Road
Maintenance Transit
93 Item 9
Agenda Packet Page 190

CITY OF CITRUS HEIGHTS

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Revenues:

Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Miscellaneous
Total Revenues
Expenditures:

Current:

Transfers in
Transfers out
Loans issued
Proceeds from sale of capital asset
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
-$ -$ -$ -$
- - - -
- - 283,433 388,224
- - - -
(1,402) 3,452 - (1,141)
- 466,032 - -
- - - -
- 13,712 - -
(1,402) 483,196 283,433 387,083
- - - -
- 207,790 317,700 293,989
- - - -
- - - -
- - - -
- - - -
- - - 93,094
- 207,790 317,700 387,083
(1,402) 275,406 (34,267) -
- 27,500 - -
(83,000) - - -
- - - -
- - - -
(83,000) 27,500 - -
(84,402) 302,906 (34,267) -
217,709 848,294 1,839 -
133,307$ 1,151,200 $ (32,428) $ - $ Special Revenue Funds
Transportation
Development Act Police Police Grants
Supplemental
Law Enforcement
Services (SLES)
94 Item 9
Agenda Packet Page 191

CITY OF CITRUS HEIGHTS

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022

Revenues:

Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Miscellaneous
Total Revenues
Expenditures:

Current:

(CONTINUED)
-$ - $ - $ -$ - 193,171 - - - - - - - - 8,117 64,964 - (6,858) (4,167) (2,305) - - - - - - - - - - - - - 186,313 3,950 62,659 - - - - - - - - - - - - - - - - - 21,163 - - 328 - - 14,339 - - - - 328 21,163 - 14,339 (328) 165,150 3,950 48,320 - - - - - (365,486) - - - - - - - - - - - (365,486) - - (328) (200,336) 3,950 48,320 4,016,110 818,252 374,718 155,330 4,015,782$ 617,916 $ 378,668 $ 203,650 $ Special Revenue Funds
Housing Agency
Roadway
Development
Fees
Housing
Mitigation
Development
Fees
Tree Mitigation
Fees
95 Item 9
Agenda Packet Page 192

CITY OF CITRUS HEIGHTS

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Revenues:

Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Miscellaneous
Total Revenues
Expenditures:

Current:

Transfers in
Transfers out
Loans issued
Proceeds from sale of capital asset
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
-$ -$ -$ -$
- 54,177 - -
- - 165,781 -
123,053 - - 11,274
(2,525) (1,985) - (230)
- - - -
- - - -
- - - -
120,528 52,192 165,781 11,044 - - - -
- - - -
- - 48,713 -
- - - -
- 4,894 - 6,720
- - 117,068 -
- - - -
- 4,894 165,781 6,720
120,528 47,298 - 4,324
- - - -
- (50,000) - -
- - - -
- - - -
- (50,000) - -
120,528 (2,702) - 4,324
102,181 186,690 - 16,421
222,709$ 183,988 $ - $ 20,745$ Special Revenue Funds
Park Facilities
Development
Fees
Transit
Development
Fees Other Grants AD 98-02 Zone 3
96 Item 9
Agenda Packet Page 193

CITY OF CITRUS HEIGHTS

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022

Revenues:

Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Miscellaneous
Total Revenues
Expenditures:

Current:

(CONTINUED)
-$ -$ -$ -$ - - - - - - - - 10,457 12,271 6,399 4,650 (305) (782) - - - - - - - - - - - - - - 10,152 11,489 6,399 4,650 - - - - - - - - - - - - - - - - 17,916 18,535 14,628 19,701 - - - - - - - - 17,916 18,535 14,628 19,701 (7,764) (7,046) (8,229) (15,051) - - 8,274 15,051 - - - - - - - - - - - - - - 8,274 15,051 (7,764) (7,046) 45 - 36,645 77,582 - - 28,881$ 70,536 $ 45 $ - $ Special Revenue Funds
Assessment
District Zone 1
Assessment
District Zone 2
Assessment
District Zone 3
Assessment
District Zone 4
97 Item 9
Agenda Packet Page 194

CITY OF CITRUS HEIGHTS

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Revenues:

Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Miscellaneous
Total Revenues
Expenditures:

Current:

Transfers in
Transfers out
Loans issued
Proceeds from sale of capital asset
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
-$ -$ -$ -$
- - - -
- - - -
10,621 22,005 88,729 16,246
(1,562) (771) (10,210) 114
- - - -
- - - -
- - - -
9,059 21,234 78,519 16,360
- - - -
- - - -
- - - -
- - - -
11,115 26,171 184,409 12,008
- - - -
- - - -
11,115 26,171 184,409 12,008
(2,056) (4,937) (105,890) 4,352
- - - -
- - - -
- - - -
- - - -
- - - -
(2,056) (4,937) (105,890) 4,352
142,970 73,519 931,674 30,722
140,914$ 68,582$ 825,784$ 35,074$ Special Revenue Funds
Assessment
District 98-01
Assessment
District 98-02
Assessment
District 03-01
Assessment
District 98-02
Zone 2
98 Item 9
Agenda Packet Page 195

CITY OF CITRUS HEIGHTS

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022

Revenues:

Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Miscellaneous
Total Revenues
Expenditures:

Current:

(CONTINUED)
-$ - $ - $ -$ - - - - - - - - 19,961 361,118 - 88,557 (322) - - (901) - - - - - - 2,826 - - - - - 19,639 361,118 2,826 87,656 - - - - - - 991 - - - - - - - - - 31,417 411,165 - - - - 100 - - - - - 31,417 411,165 1,091 - (11,778) (50,047) 1,735 87,656 - 73,517 - - - (420,321) - - - 396,601 - - - - - - - 49,797 - - (11,778) (250) 1,735 87,656 34,455 250 14,251 - 22,677$ - $ 15,986$ 87,656 $ Assessment
District 03-01
Zone 2
Lighting
Assessment
District Police Donations
Assessment
District 03-01
Zone 3
Special Revenue Funds
99 Item 9
Agenda Packet Page 196

CITY OF CITRUS HEIGHTS

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Revenues:

Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Miscellaneous
Total Revenues
Expenditures:

Current:

Transfers in
Transfers out
Loans issued
Proceeds from sale of capital asset
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Total Other
Governmental
Funds
-$ -$ 19,465$
- 18,313 265,661
668,846 37,428 8,196,303
- - 5,901,865
(13,765) - (154,072)
- - 466,032
- - 2,826
- - 132,102
655,081 55,741 14,830,182
- 9,569 9,569
- 228 1,492,614
- - 48,713
- 52,643 52,643
130,704 - 6,322,251
- 38,184 226,578
- 254,671 404,765
130,704 355,295 8,557,133 524,377 (299,554) 6,273,049
- 390,000 573,842
(858,563) - (10,479,125)
- - 396,601
- 150,676 150,676
(858,563) 540,676 (9,358,006) (334,186) 241,122 (3,084,957)
1,596,046 665,731 22,738,319
1,261,860$ 906,853 $ 19,653,362 $ Capital Projects Funds
Measure A
Construction
Community
Capital
Replacement
100
Item 9
Agenda Packet Page 197

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

HOME PROGRAM GRANTS
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental -$ -$ 55,879$ 55,879$ Use of money and property 103 103 (8,981) (9,084) Miscellaneous - - 107,103 107,103 Total Revenues 103 103 154,001 153,898 Expenditures:

Community enhancements 76,355 76,355 56,559 19,796 Total Expenditures 76,355 76,355 56,559 19,796 Excess (Deficiency) of Revenues
Over (Under) Expenditures (76,252) (76,252) 97,442 173,694 Fund Balances, Beginning of Year 710,714 710,714 710,714 - Fund Balances, End of Year 634,462$ 634,462$ 808,156$ 173,694$ 101
Item 9
Agenda Packet Page 198

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

COMMUNITY EVENTS
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Other Financing Sources:

Transfers out -$ -$ (81,713)$ (81,713)$
Total Other Financing Sources - - (81,713) 81,713 Net Change in Fund Balance - - (81,713) (81,713) Fund Balances, Beginning of Year 81,713 81,713 81,713 - Fund Balances, End of Year 81,713$ 81,713$ -$ (81,713)$ 102
Item 9
Agenda Packet Page 199

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

CODE ENFORCEMENT
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Charges for services 729,000$ 729,000$ 738,400$ 9,400$ Use of money and property 1,000 1,000 (6,017) (7,017) Total Revenues 730,000 730,000 732,383 2,383 Expenditures:

Current:

Public safety 807,281 807,281 671,916 135,365 Total Expenditures 807,281 807,281 671,916 135,365 Excess (Deficiency) of Revenues
Over (Under) Expenditures (77,281) (77,281) 60,467 137,748 Other Financing Sources(Uses):

Transfers in 59,590 59,590 59,500 90 Total Other Financing Sources
(Uses) 59,590 59,590 59,500 90 Net Change in Fund Balance (17,691) (17,691) 119,967 137,658 Fund Balances, Beginning of Year 649,943 649,943 649,943 - Fund Balances, End of Year 632,252$ 632,252$ 769,910$ 137,658$ 103
Item 9
Agenda Packet Page 200

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GAS TAX
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental 2,278,399$ 2,278,399$ 2,105,730$ (172,669)$ Use of money and property - - (9,684) (9,684) Total Revenues 2,278,399 2,278,399 2,096,046 (182,353) Expenditures:

Current:

Public safety - - - -
Public ways and facilities 1,784,565 1,784,565 1,532,926 251,639 Capital outlay - - 57,000 (57,000)
Total Expenditures 1,784,565 1,784,565 1,589,926 194,639 Excess (Deficiency) of Revenues
Over (Under) Expenditures 493,834 493,834 506,120 12,286 Other Financing Uses:

Transfers out (400,000) (400,000) (575,091) (175,091) Total Other Financing Uses (400,000) (400,000) (575,091) (175,091) Net Change in Fund Balance 93,834 93,834 (68,971) (162,805) Fund Balances, Beginning of Year 933,254 933,254 933,254 - Fund Balances, End of Year 1,027,088$ 1,027,088$ 864,283$ (162,805)$ 104
Item 9
Agenda Packet Page 201

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

ROAD MAINTENANCE AND REHABILITATION
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental 1,721,790$ 1,721,790$ 1,768,222$ 46,432$ Use of money and property - - (14,197) (14,197) Total Revenues 1,721,790 1,721,790 1,754,025 32,235 Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,721,790 1,721,790 1,754,025 32,235 Other Financing Uses:

Transfers out (2,600,000) (2,600,000) (4,389,471) (1,789,471) Total Other Financing Uses (2,600,000) (2,600,000) (4,389,471) (1,789,471) Net Change in Fund Balance (878,210) (878,210) (2,635,446) (1,757,236) Fund Balances, Beginning of Year 3,224,389 3,224,389 3,224,389 - Fund Balances, End of Year 2,346,179$ 2,346,179$ 588,943$ (1,757,236)$ 105
Item 9
Agenda Packet Page 202

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

STORMWATER UTILITY TAX
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Taxes -$ -$ 19,465$ 19,465$
Charges for services 3,811,000 3,811,000 3,965,879 154,879 Use of money and property - - (33,456) (33,456) Miscellaneous - - 11,287 11,287
Total Revenues 3,811,000 3,811,000 3,963,175 152,175 Expenditures:

Current:

Public safety - - - -
Public ways and facilities 2,362,369 2,343,289 2,313,148 30,141 Capital outlay 350,000 350,000 - 350,000 Total Expenditures 2,712,369 2,693,289 2,313,148 380,141 Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,098,631 1,117,711 1,650,027 532,316 Other Financing Uses:

Transfers out (2,838,861) (2,838,861) (3,381,963) (543,102) Total Other Financing Uses (2,838,861) (2,838,861) (3,381,963) (543,102) Net Change in Fund Balance (1,740,230) (1,721,150) (1,731,936) (10,786) Fund Balances, Beginning of Year 4,653,324 4,653,324 4,653,324 - Fund Balances, End of Year 2,913,094$ 2,932,174$ 2,921,388$ (10,786)$ 106
Item 9
Agenda Packet Page 203

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

ROAD MAINTENANCE
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental 2,260,888$ 2,260,888$ 2,715,221$ 454,333$ Use of money and property - - (35,580) (35,580) Total Revenues 2,260,888 2,260,888 2,679,641 418,753 Expenditures:

Current:

Public ways and facilities 1,149,578 1,135,268 1,331,021 (195,753) Capital outlay 400,000 400,000 - 400,000 Total Expenditures 1,549,578 1,535,268 1,331,021 204,247 Excess (Deficiency) of Revenues
Over (Under) Expenditures 711,310 725,620 1,348,620 623,000 Other Financing Uses:

Transfers out (200,000) (200,000) (273,517) (73,517) Total Other Financing Uses (200,000) (200,000) (273,517) (73,517) Net Change in Fund Balance 511,310 525,620 1,075,103 549,483 Fund Balances, Beginning of Year 2,179,009 2,179,009 2,179,009 - Fund Balances, End of Year 2,690,319$ 2,704,629$ 3,254,112$ 549,483$ 107
Item 9
Agenda Packet Page 204

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

TRANSIT
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental 278,730$ 278,730$ 7,539$ (271,191)$ Charges for services - - 349,164 349,164
Use of money and property - - (492) (492)
Total Revenues 278,730 278,730 356,211 77,481 Expenditures:

Current:

Public ways and facilities 273,192 273,192 234,610 38,582 Capital outlay 10,000 10,000 - 10,000 Total Expenditures 283,192 283,192 234,610 48,582 Excess (Deficiency) of Revenues
Over (Under) Expenditures (4,462) (4,462) 121,601 126,063 Fund Balances, Beginning of Year (35,416) (35,416) (35,416) - Fund Balances, End of Year (39,878)$ (39,878)$ 86,185$ 126,063$ 108
Item 9
Agenda Packet Page 205

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

TRANSPORTATION DEVELOPMENT ACT
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental 74,160$ 74,160$ -$ (74,160)$ Use of money and property - - (1,402) (1,402) Total Revenues 74,160 74,160 (1,402) (75,562) Excess (Deficiency) of Revenues
Over (Under) Expenditures 74,160 74,160 (1,402) (75,562) Other Financing Uses:

Transfers out (83,000) (83,000) (83,000) - Total Other Financing Uses (83,000) (83,000) (83,000) - Net Change in Fund Balance (8,840) (8,840) (84,402) (75,562) Fund Balances, Beginning of Year 217,709 217,709 217,709 - Fund Balances, End of Year 208,869$ 208,869$ 133,307$ (75,562)$ 109
Item 9
Agenda Packet Page 206

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
POLICE
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Use of money and property -$ -$ 3,452$ 3,452$ Fines and forfeitures 56,000 56,000 466,032 410,032 Miscellaneous - - 13,712 13,712
Total Revenues 56,000 56,000 483,196 427,196 Expenditures:

Current:

Public safety 125,690 125,690 207,790 (82,100) Total Expenditures 125,690 125,690 207,790 (82,100) Excess (Deficiency) of Revenues
Over (Under) Expenditures (69,690) (69,690) 275,406 345,096 Other Financing Sources (Uses):

Transfers in 27,471 27,471 27,500 (29) Total Other Financing Sources (Uses) 27,471 27,471 27,500 29 Net Change in Fund Balance (42,219) (42,219) 302,906 345,125 Fund Balances, Beginning of Year 848,294 848,294 848,294 - Fund Balances, End of Year 806,075$ 806,075$ 1,151,200$ 345,125$ 110
Item 9
Agenda Packet Page 207

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

POLICE GRANTS
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental 334,072$ 334,072$ 283,433$ (50,639)$ Total Revenues 334,072 334,072 283,433 (50,639) Expenditures:

Current:

Public safety 258,261 258,261 317,700 (59,439) Total Expenditures 258,261 258,261 317,700 (59,439) Excess (Deficiency) of Revenues
Over (Under) Expenditures 75,811 75,811 (34,267) (110,078) Fund Balances, Beginning of Year 1,839 1,839 1,839 - Fund Balances, End of Year 77,650$ 77,650$ (32,428)$ (110,078)$ 111
Item 9
Agenda Packet Page 208

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

SUPPLEMENTAL LAW ENFORCEMENT SERVICES (SLES)
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental 133,000$ 133,000$ 388,224$ 255,224$ Use of money and property - - (1,141) (1,141)
Total Revenues 133,000 133,000 387,083 254,083 Expenditures:

Current:

Public safety 172,700 172,700 293,989 (121,289) Capital outlay - - 93,094 (93,094)
Total Expenditures 172,700 172,700 387,083 (214,383) Excess (Deficiency) of Revenues
Over (Under) Expenditures (39,700) (39,700) - 39,700 Fund Balances, Beginning of Year - - - -
Fund Balances, End of Year (39,700)$ (39,700)$ -$ 39,700$ 112
Item 9
Agenda Packet Page 209

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

ROADWAY DEVELOPMENT FEES
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Licenses and permits 98,345$ 98,345$ 193,171$ 94,826$ Use of money and property 5,000 5,000 (6,858) (11,858) Total Revenues 103,345 103,345 186,313 82,968 Expenditures:

Current:

Public ways and facilities 125,000 125,000 21,163 103,837 Total Expenditures 125,000 125,000 21,163 103,837 Excess (Deficiency) of Revenues
Over (Under) Expenditures (21,655) (21,655) 165,150 186,805 Other Financing Uses:

Transfers out (325,000) (325,000) (365,486) (40,486) Total Other Financing Uses (325,000) (325,000) (365,486) (40,486) Net Change in Fund Balance (346,655) (346,655) (200,336) 146,319 Fund Balances, Beginning of Year 818,252 818,252 818,252 - Fund Balances, End of Year 471,597$ 471,597$ 617,916$ 146,319$ 113
Item 9
Agenda Packet Page 210

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

HOUSING MITIGATION DEVELOPMENT FEES
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Charges for services 16,480$ 16,480$ 8,117$ (8,363)$ Use of money and property - - (4,167) (4,167)
Total Revenues 16,480 16,480 3,950 (12,530) Expenditures:

Current:

Community development 51,500 51,500 - 51,500 Total Expenditures 51,500 51,500 - 51,500 Excess (Deficiency) of Revenues
Over (Under) Expenditures (35,020) (35,020) 3,950 38,970 Fund Balances, Beginning of Year 374,718 374,718 374,718 - Fund Balances, End of Year 339,698$ 339,698$ 378,668$ 38,970$ 114
Item 9
Agenda Packet Page 211

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

TREE MITIGATION FEES
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Charges for services 36,050$ 36,050$ 64,964$ 28,914$ Use of money and property - - (2,305) (2,305) Total Revenues 36,050 36,050 62,659 26,609 Expenditures:

Current:

Community enhancements 36,050 36,050 14,339 21,711 Total Expenditures 36,050 36,050 14,339 21,711 Excess (Deficiency) of Revenues
Over (Under) Expenditures - - 48,320 48,320 Fund Balances, Beginning of Year 155,330 155,330 155,330 - Fund Balances, End of Year 155,330$ 155,330$ 203,650$ 48,320$ 115
Item 9
Agenda Packet Page 212

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

PARK FACILITIES DEVELOPMENT FEES
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Charges for services 76,000$ 76,000$ 123,053$ 47,053$ Use of money and property - - (2,525) (2,525)
Total Revenues 76,000 76,000 120,528 44,528 Expenditures:

Current:

Community enhancements 51,500 51,500 - 51,500 Total Expenditures 51,500 51,500 - 51,500 Excess (Deficiency) of Revenues
Over (Under) Expenditures 24,500 24,500 120,528 96,028 Fund Balances, Beginning of Year 102,181 102,181 102,181 - Fund Balances, End of Year 126,681$ 126,681$ 222,709$ 96,028$ 116
Item 9
Agenda Packet Page 213

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

TRANSIT DEVELOPMENT FEES
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Licenses and permits 27,847$ 27,847$ 54,177$ 26,330$ Use of money and property 530 530 (1,985) (2,515) Total Revenues 28,377 28,377 52,192 23,815 Expenditures:

Current:

Public ways and facilities - - 4,894 (4,894) Capital outlay 25,000 25,000 - 25,000 Total Expenditures 25,000 25,000 4,894 20,106 Excess (Deficiency) of Revenues
Over (Under) Expenditures 3,377 3,377 47,298 43,921 Other Financing Sources(Uses):

Transfers out (50,000) (50,000) (50,000) - Total Other Financing Sources
(Uses) (50,000) (50,000) (50,000) - Net Change in Fund Balance (46,623) (46,623) (2,702) 43,921 Fund Balances, Beginning of Year 186,690 186,690 186,690 - Fund Balances, End of Year 140,067$ 140,067$ 183,988$ 43,921$ 117
Item 9
Agenda Packet Page 214

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

OTHER GRANTS
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental 46,050$ 166,050$ 165,781$ (269)$ Total Revenues 46,050 166,050 165,781 (269) Expenditures:

Current:

Economic development - 120,000 48,713 71,287 Community enhancements - - 117,068 (117,068) Total Expenditures - 120,000 165,781 (45,781) Excess (Deficiency) of Revenues
Over (Under) Expenditures 46,050 46,050 - (46,050) Fund Balances, Beginning of Year - - - -
Fund Balances, End of Year 46,050$ 46,050$ -$ (46,050)$ 118
Item 9
Agenda Packet Page 215

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ASSESSMENT DISTRICT ZONE 1
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Charges for services 10,523$ 10,523$ 10,457$ (66)$ Use of money and property 115 115 (305) (420) Total Revenues 10,638 10,638 10,152 (486) Expenditures:

Current:

Public ways and facilities 16,492 16,492 17,916 (1,424) Total Expenditures 16,492 16,492 17,916 (1,424) Excess (Deficiency) of Revenues
Over (Under) Expenditures (5,854) (5,854) (7,764) (1,910) Fund Balances, Beginning of Year 36,645 36,645 36,645 - Fund Balances, End of Year 30,791$ 30,791$ 28,881$ (1,910)$ 119
Item 9
Agenda Packet Page 216

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ASSESSMENT DISTRICT ZONE 2
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Charges for services 12,413$ 12,413$ 12,271$ (142)$ Use of money and property 500 500 (782) (1,282)
Total Revenues 12,913 12,913 11,489 (1,424) Expenditures:

Current:

Public ways and facilities 13,774 13,774 18,535 (4,761) Total Expenditures 13,774 13,774 18,535 (4,761) Excess (Deficiency) of Revenues
Over (Under) Expenditures (861) (861) (7,046) (6,185)
Fund Balances, Beginning of Year 77,582 77,582 77,582 - Fund Balances, End of Year 76,721$ 76,721$ 70,536$ (6,185)$ 120
Item 9
Agenda Packet Page 217

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ASSESSMENT DISTRICT ZONE 3
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Charges for services 6,550$ 6,550$ 6,399$ (151)$ Total Revenues 6,550 6,550 6,399 (151) Expenditures:

Current:

Public ways and facilities 15,221 15,221 14,628 593 Total Expenditures 15,221 15,221 14,628 593 Excess (Deficiency) of Revenues
Over (Under) Expenditures (8,671) (8,671) (8,229) 442 Other Financing Sources(Uses):

Transfers in - - 8,274 8,274 Total Other Financing Sources
(Uses) - - 8,274 8,274 Net Change in Fund Balance (8,671) (8,671) 45 8,716 Fund Balances, Beginning of Year - - - - Fund Balances, End of Year (8,671)$ (8,671)$ 45$ 8,716$ 121
Item 9
Agenda Packet Page 218

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ASSESSMENT DISTRICT ZONE 4
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Charges for services 4,718$ 4,718$ 4,650$ (68)$ Total Revenues 4,718 4,718 4,650 (68)
Expenditures:

Current:

Public ways and facilities 19,141 19,141 19,701 (560) Total Expenditures 19,141 19,141 19,701 (560) Excess (Deficiency) of Revenues
Over (Under) Expenditures (14,423) (14,423) (15,051) (628) Other Financing Sources:

Transfers in 5,959 5,959 15,051 9,092
Total Other Financing Sources 5,959 5,959 15,051 9,092 Net Change in Fund Balance (8,464) (8,464) - 8,464
Fund Balances, Beginning of Year - - - -
Fund Balances, End of Year (8,464)$ (8,464)$ -$ 8,464$ 122
Item 9
Agenda Packet Page 219

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ASSESSMENT DISTRICT 98-01
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Charges for services 10,640$ 10,640$ 10,621$ (19)$ Use of money and property 950 950 (1,562) (2,512) Total Revenues 11,590 11,590 9,059 (2,531) Expenditures:

Current:

Public ways and facilities 11,601 11,601 11,115 486 Total Expenditures 11,601 11,601 11,115 486 Excess (Deficiency) of Revenues
Over (Under) Expenditures (11) (11) (2,056) (2,045) Fund Balances, Beginning of Year 142,970 142,970 142,970 - Fund Balances, End of Year 142,959$ 142,959$ 140,914$ (2,045)$ 123
Item 9
Agenda Packet Page 220

CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ASSESSMENT DISTRICT 98-02
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Charges for services 22,200$ 22,200$ 22,005$ (195)$ Use of money and property 525 525 (771) (1,296)
Total Revenues 22,725 22,725 21,234 (1,491) Expenditures:

Current:

Public ways and facilities 30,858 30,858 26,171 4,687 Total Expenditures 30,858 30,858 26,171 4,687 Excess (Deficiency) of Revenues
Over (Under) Expenditures (8,133) (8,133) (4,937) 3,196 Fund Balances, Beginning of Year 73,519 73,519 73,519 - Fund Balances, End of Year 65,386$ 65,386$ 68,582$ 3,196$ 124
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CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ASSESSMENT DISTRICT 03-01
YEAR ENDED JUNE 30, 2022
Variance with
Fina l Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Charges for services 88,700$ 88,700$ 88,729$ 29$ Use of money and property 6,000 6,000 (10,210) (16,210) Total Revenues 94,700 94,700 78,519 (16,181) Expenditures:

Current:

Public ways and facilities 199,650 199,650 184,409 15,241 Total Expenditures 199,650 199,650 184,409 15,241 Excess (Deficiency) of Revenues
Over (Under) Expenditures (104,950) (104,950) (105,890) (940) Fund Balances, Beginning of Year 931,674 931,674 931,674 - Fund Balances, End of Year 826,724$ 826,724$ 825,784$ (940)$ 125
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CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ASSESSMENT DISTRICT 98-02 ZONE 2
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Charges for services 16,288$ 16,288$ 16,246$ (42)$ Use of money and property 200 200 114 (86)
Total Revenues 16,488 16,488 16,360 (128) Expenditures:

Current:

Public ways and facilities 14,253 14,253 12,008 2,245 Total Expenditures 14,253 14,253 12,008 2,245 Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,235 2,235 4,352 2,117
Fund Balances, Beginning of Year 30,722 30,722 30,722 - Fund Balances, End of Year 32,957$ 32,957$ 35,074$ 2,117$ 126
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CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ASSESSMENT DISTRICT 03-01 ZONE 2
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Charges for services 19,343$ 19,343$ 19,961$ 618$ Use of money and property 350 350 (322) (672) Total Revenues 19,693 19,693 19,639 (54) Expenditures:

Current:

Public ways and facilities 57,478 57,478 31,417 26,061 Total Expenditures 57,478 57,478 31,417 26,061 Excess (Deficiency) of Revenues
Over (Under) Expenditures (37,785) (37,785) (11,778) 26,007 Fund Balances, Beginning of Year 34,455 34,455 34,455 - Fund Balances, End of Year (3,330)$ (3,330)$ 22,677$ 26,007$ 127
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CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

LIGHTING ASSESSMENT DISTRICT
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Charges for services 348,655$ 348,655$ 361,118$ 12,463$ Total Revenues 348,655 348,655 361,118 12,463 Expenditures:

Current:

Public ways and facilities 464,623 464,623 411,165 53,458 Total Expenditures 464,623 464,623 411,165 53,458 Excess (Deficiency) of Revenues
Over (Under) Expenditures (115,968) (115,968) (50,047) 65,921 Other Financing Sources:

Transfers out - - (420,321) (420,321)
Transfers in 85,250 85,250 73,517 (11,733) Other debts issued - - 396,601 396,601
Total Other Financing Sources 85,250 85,250 49,797 (35,453) Net Change in Fund Balance (30,718) (30,718) (250) 30,468 Fund Balances, Beginning of Year 250 250 250 -
Fund Balances, End of Year (30,468)$ (30,468)$ -$ 30,468$ 128
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CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

POLICE DONATIONS
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Contributions -$ - $ 2,826$ 2,826$ Total Revenues - - 2,826 2,826 Expenditures:

Current:

Public safety 1,500 1,500 991 509 Community enhancements - - 100 (100) Total Expenditures 1,500 1,500 1,091 409 Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,500) (1,500) 1,735 3,235 Fund Balances, Beginning of Year 14,251 14,251 14,251 - Fund Balances, End of Year 12,751$ 12,751$ 15,986$ 3,235$ 129
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CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL CAPITAL IMPROVEMENT CAPITAL PROJECT FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Licenses and permits -$ -$ 136,004$ 136,004$ Total Revenues - - 136,004 136,004
Expenditures:

Current:

Economic development - - 82,333 (82,333)
Total Expenditures - - 82,333 (82,333)
Over (Under) Expenditures - - 53,671 53,671 Other Financing Sources:

Transfers out (857,192) (857, 192) - 857,192 Total Other Financing Sources (857,192) (857,192) - 857,192 Net Change in Fund Balance (857,192) (857,192) 53,671 910,863 Fund Balances, Beginning of Year 3,946,574 3,946,574 3,946,574 - Fund Balances, End of Year 3,089,382$ 3,089,382$ 4,000,245$ 910,863$ Excess (Deficiency) of Revenues
130
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CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

MEASURE A CONSTRUCTION
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental -$ -$ 668,846$ 668,846$ Use of money and property - - (13,765) (13,765) Miscellaneous 549,521 549,521 - (549,521) Total Revenues 549,521 549,521 655,081 105,560 Expenditures:

Current:

Public ways and facilities 275,000 275,000 130,704 144,296 Total Expenditures 275,000 275,000 130,704 144,296 Over (Under) Expenditures 274,521 274,521 524,377 249,856 Other Financing Uses:

Transfers out (857,192) (857,192) (858,563) (1,371) Total Other Financing Uses (857,192) (857,192) (858,563) (1,371) Net Change in Fund Balance (582,671) (582,671) (334,186) 248,485 Fund Balances, Beginning of Year 1,596,046 1,596,046 1,596,046 - Fund Balances, End of Year 1,013,375$ 1,013,375$ 1,261,860$ 249,856$ Excess (Deficiency) of Revenues
131
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CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

COMMUNITY CAPITAL REPLACEMENT
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Licenses and permits 18,540$ 18,540$ 18,313$ (227)$ Intergovernmental - - 37,428 37,428
Total Revenues 18,540 18,540 55,741 37,201 Expenditures:

Current:

General government - - 9,569 (9,569)
Public safety 65,000 65,000 228 64,772 Culture and recreation 130,000 130,000 52,643 77,357 Community enhancements - - 38,184 (38,184) Capital outlay 485,000 485,000 254,671 230,329 Total Expenditures 680,000 680,000 355,295 324,705 Over (Under) Expenditures (661,460) (661,460) (299,554) 361,906 Other Financing Sources:

Transfers in 390,000 390,000 390,000 - Proceeds from sale of capital asset - - 150,676 150,676 Transfers out (857,192) (857,192) - 857,192 Total Other Financing Sources (467,192) (467,192) 540,676 1,007,868 Net Change in Fund Balance (1,128,652) (1,128,652) 241,122 1,369,774 Fund Balances, Beginning of Year 665,731 665,731 665,731 - Fund Balances, End of Year (462,921)$ (462,921)$ 906,853$ 1,369,774$ Excess (Deficiency) of Revenues
132
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CITY OF CITRUS HEIGHTS

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

STREETS
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental 5,485,240$ 5,485,240$ 3,268,099$ (2,217,141)$ Miscellaneous - - - - Total Revenues 5,485,240 5,485,240 3,268,099 (2,217,141) Expenditures:

Current:

Public ways and facilities 1,246,000 1,727,012 26,030 1,700,982 Community enhancements - - 15,464 (15,464) Capital outlay 12,346,771 12,346,771 10,234,978 2,111,793 Total Expenditures 13,592,771 14,073,783 10,276,472 3,797,311 Over (Under) Expenditures (8,107,531) (8,588,543) (7,008,373) 1,580,170 Other Financing Sources:

Transfers in 8,107,531 8,107,531 10,756,655 2,649,124 Transfers out (857,192) (857,192) (16,106) 841,086 Total Other Financing Sources 7,250,339 7,250,339 10,740,549 3,490,210 Net Change in Fund Balance (857,192) (1,338,204) 3,732,176 5,070,380 Fund Balances, Beginning of Year (380,518) (380,518) (380,518) - Fund Balances, End of Year (1,237,710)$ (1,718,722)$ 3,351,658$ 5,070,380$ Excess (Deficiency) of Revenues
133
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CITY OF CITRUS HEIGHTS

COMBINING STATEMENT OF FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
JUNE 30, 2022
Totals
Assets:

Cash and cash equivalents 25,665$ 138,950$ 162,432$ 327,047$ Total Assets 25,665 138,950 162,432 327,047
Net Position:

Restricted for individuals, organizations and other governments 25,665 138,950 162,432 327,047 Total Net Position 25,665 $ 138,950 $ 162,432 $ 327,047 $ Fire Capital
Facilities Fee STA Fees WISN ESAC
134
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CITY OF CITRUS HEIGHTS

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2022
Additions:

Intergovernmental 352,875$ 373,348 $ 8,114 $ 734,337$ Total Additions 352,875 373,348 8,114 734,337
Deductions:

Contractual services 516,232 234,400 1,965 752,597
Total Deductions 516,232 234,400 1,965 752,597
Changes in Net Position (163,357) 138,948 6,149 (18,260) Net Position - Beginning of the Year 189,022 2 156,283 345,307 Net Position - End of the Year 25,665$ 138,950$ 162,432$ 327,047$ Totals
Fire Capital
Facilities Fee STA Fees WISN ESAC
135
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Agenda Packet Page 232
7+,63$*(,17(17,21$//</()7%/$1.
136
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Page(s)
Financial Trends
138-141
Revenue Capacity
142-147
Debt Capacity
148-150
Demographic and Economic Information
151-152
Operating Information
153-155
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.

These schedules contain service and i nfrastructure data to help the reade r understand how the information in the City's financial report relates to the services the City provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.

STATISTICAL SECTION
This part of the City of Citrus Heights' comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, footnotes, and required supplementary information says about the City's overall financial health.

Contents
These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.

These schedules contain information to help the reader assess the City's ability to generate revenues. Property taxes, sales and use taxes, charges for servi ces, licenses, permits and fees and intergovernmental revenue are the City's most These schedules contain information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional 137
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Agenda Packet Page 234
City of Citrus Heights, California
Net Position by Component
Last Ten Fiscal Years
(Fiscal year ended June 30)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Governmental activities
Invested in capital assets 369,630,853$ 366,354,751 $ 362,247,604$ 351,834,754 $ 355,292,096 $ 344,507,138 $ 336,912,872 $ 328,594,520 $ 319,214,442 $ 316,887,986$ Restricted 22,751,540 15, 749,227 15,682,624 15,279,052 15,935,790 16,266,052 13,375,587 19,575,754 25,779,873 25,868,240 Unrestricted 25,246,205 28, 626,101 12,581,607 14,663,297 4,264,024 1,755,048 1,882,908 (6,606,540) (7,281,556) 4,318,206 Total governmental activities net position 417,628,598$ 410,730,079 $ 390,511,835$ 381,777,103 $ 375,491,910 $ 362,528,238 $ 352,171,367 $ 341,563,734 $ 337,712,759 $ 347,074,432$ Business-type activities
Invested in capital assets -$ 200,000$ 200,000$ 321,123$ 389,449$ 381,575$ 373,702$ 365,829$ 357,956$ 350,082$ Unrestricted 655,163 614,441 406,354 265,517 160,563 219,434 306,142 533,964 775,308 1,131,508 Total business-type activities net position 655,163$ 814,441$ 606,354$ 586,640$ 550,012$ 601,009$ 679,844$ 899,793$ 1,133,264 $ 1,481,590$ Primary government
Invested in capital assets 369,630,853$ 366,554,751 $ 362,447,604$ 352,155,877 $ 355,681,545 $ 344,888,713 $ 337,286,574 $ 328,960,349 $ 319,572,398 $ 317,238,068$ Restricted 22,751,540 15, 749,227 15,682,624 15,279,052 15,935,790 16,266,052 13,375,587 19,575,754 25,779,873 25,868,240 Unrestricted 25,901,368 29, 240,542 12,987,961 14,928,814 4,424,587 1,974,482 2,189,050 (6,072,576) (6,506,248) 5,449,714 Total primary government net position 418,283,761$ 411,544,520 $ 391,118,189$ 382,363,743 $ 376,041,922 $ 363,129,247 $ 352,851,211 $ 342,463,527 $ 338,846,023 $ 348,556,022$ Source: City Administrative Services Department
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City of Citrus Heights, California
Changes in Net Position
Last Ten Fiscal Years
(Fiscal year ended June 30)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Expenses
Governmental activities:

General government 4,905,500$ 4,825,401$ 5,401,023$ 4,704,899$ 5,463,122$ 6,106,557$ 6,909,949$ 7,360,783$ 10,210,576$ 7,729,201$ Public safety 18,371,871 19, 595,533 18, 092,747 17, 355,288 18, 378,242 21, 698,128 24, 025,017 24, 443,611 23, 338,398 15, 877,629 Public ways and facilities 25,152,231 27, 499,125 30, 037,037 34, 185,103 24, 188,701 24, 395,899 21, 730,069 19, 019,629 18, 149,133 17, 660,038 Culture and recreation 692,989 613,235 555,342 654,183 669,948 722,254 720,442 830,572 540,427 906,037 Economic development 114,616 172,083 159,243 214,978 402,904 353,608 296,233 950,409 916,027 55,751 Community enhancements 4,429,170 4,407,068 4,319,791 4,313,943 4,710,977 4,664,278 3,953,127 3,928,848 3,877,993 4,085,740 Interest on long-term debt - - - - - - 70,962 151,957 144,455 131,908 Total governmental activities expenses 53,666,377 57, 112,445 58, 565,183 61, 428,394 53, 813,894 57, 940,724 57, 705,799 56, 685,809 57, 177,009 46, 446,304 Business-type activities:

Solid waste 752,084 529,464 903,522 757,028 798,694 751,291 809,466 675,849 732,927 788,023 Total business-type activities expenses 752,084 529,464 903,522 757,028 798,694 751,291 809,466 675,849 732,927 788,023 Total primary government expenses 54,418,461 57, 641,909 59, 468,705 62, 185,422 54, 612,588 58, 692,015 58, 515,265 57, 361,658 57, 909,936 47, 234,327 Program revenues
Governmental activities:

Charges for services:

General government 305,057 331,675 381,923 1,120,688 1,151,570 1,185,547 1,888,219 1,902,206 1,904,861 1,745,213 Public safety 366,726 459,073 337,199 1,547,840 1,759,927 1,488,252 1,978,407 2,133,898 2,074,980 2,173,237 Public ways and facilities 4,789,239 4,730,893 4,666,240 4,359,774 4,500,372 4,324,674 4,474,641 5,344,895 4,759,239 5,357,787 Culture and recreation 343,817 374,244 311,350 352,401 354,517 449,711 32,526 22,473 - 18,313 Economic development - - 100 50 - - - - - - Community enhancements 842,151 1,036,139 1,298,079 1,912,936 1,597,005 498,673 1,242,148 1,508,999 2,730,818 3,221,746 Operating grants and contributions 10,909,700 13, 558,056 13, 179,453 10, 236,552 6,087,515 6,265,040 7,165,367 6,053,305 11, 072,674 10, 921,489 Capital grants and contributions 7,590,789 7,173,645 2,418,225 4,489,329 2,006,396 1,483,643 7,101,580 3,790,741 3,589,794 5,389,435 Total governmental activities program revenues 25,147,479 27, 663,725 22, 592,569 24, 019,570 17, 457,302 15, 695,540 23, 882,888 20, 756,517 26, 132,366 28, 827,220 Business-type activities:

Charges for services:

Solid waste 651,300 657,027 710,618 732,401 761,614 798,838 839,030 829,397 904,130 1,092,589 Total business-type activities program revenues 651,300 657,027 710,618 732,401 761,614 798,838 839,030 829,397 904,130 1,092,589 Total primary government program revenues 25,798,779 28, 320,752 23, 303,187 24, 751,971 18, 218,916 16, 494,378 24, 721,918 21, 585,914 27, 036,496 29, 919,809 Net (Expense)/Revenue
Governmental activities (28,518,898) (29, 448,720) (35, 972,614) (37, 408,824) (36, 356,592) (42, 245,184) (33, 822,911) (35, 929,292) (31, 044,643) (17, 619,084) Business-type activities (100,784) 127,563 ( 192,904) ( 24,627) ( 37,080) 47,547 29,564 153,548 171,203 304,566 Total primary government net expense (28,619,682) (29, 321,157) (36, 165,518) (37, 433,451) (36, 393,672) (42, 197,637) (33, 793,347) (35, 775,744) (30, 873,440) (17, 314,518) 139
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City of Citrus Heights, California
Changes in Net Position
Last Ten Fiscal Years
(Fiscal year ended June 30)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Continued from previous page:

General Revenues and Other Changes
in Net Position:

Governmental activities:

Taxes:

Property taxes
270,913 139,634 138,659 946,113 991,552 758,653 339,571 306,250 383,773 638,183 Sales and use tax 11,261,741 11, 195,869 11, 230,382 15, 977,575 15, 412,345 15, 653,986 12, 542,158 12, 083,836 13, 373,483 14, 412,009 Utility users tax 2,770,644 2,739,486 2,768,562 2,810,771 2,881,617 2,932,236 2,739,888 2,650,891 2,717,945 2,794,196 Other taxes 1,362,446 1,332,334 1,416,552 1,601,229 1,616,163 1,600,300 2,225,772 2,019,859 1,412,898 1,807,986 Shared intergovernmental revenues 6,659,357 6,652,222 7,015,174 7,260,670 7,611,171 8,037,540 8,436,657 8,887,426 9,303,916 9,683,155 Investment earnings (299,378) 455,531 246,710 527,734 1,108,551 254,162 32,181 458,727 1,650 - Transfers 2,918 35,125 - - - - - - - - Total governmental activities 22,028,641 22, 550,201 22, 816,039 29, 124,092 29, 621,399 29, 236,877 26, 316,227 26, 406,989 27, 193,665 29, 335,529 Business-type activities:

Investment earnings (968) 31,715 4,158 4,913 452 3,450 49,255 66,401 1,117 (14,531) Other revenue 61,151 58,444
Transfers (2,918) - - - - - - -
Total business-type activities (3,886) 31,715 4,158 4,913 452 3,450 49,255 66,401 62,268 43,913 Total primary government 22,024,755 22, 581,916 22, 820,197 29, 129,005 29, 621,851 29, 240,327 26, 365,482 26, 473,390 27, 255,933 29, 379,442 Changes in Net Position
Governmental activities (6,490,257) (6, 898,519) (13, 156,575) (8, 284,732) (6,735,193) (13, 008,307) (10, 356,855) (10, 607,634) (3, 850,978) 9, 361,673 Business-type activities (104,670) 159,278 ( 188,746) ( 19,714) ( 36,628) 50,997 78,819 219,949 233,471 348,480 Total primary government (6,594,927)$ (6,739,241) $ ( 13,345,321)$ (8,304,446) $ ( 6,771,821)$ ( 12,957,310)$ (10,278,036) $ (10,387,685) $ (3,617,507) $ 9,710,153 $ ...

Source: City Administrative Services Department
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City of Citrus Heights, California
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Fiscal year ended June 30)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Fund:

Nonspendable 1,233,199$ 1,144,639$ 962,457$ 298,407$ 32,159$ 279,210$ 135,485$ 302,545$ 145,343$ 64,859$ Restricted - 6,443 14,148 14,613 25,394 21,143 - - - - Committed 29,080,819 27,279,124 19,395,418 18,616,257 4,559,378 4,559,378 4,561,978 4,486,978 4,486,978 4,486,978 Unassigned 855,369 925,202 64,943 146,734 1,101,504 314,061 1,833,065 490,603 4,258,505 7,380,554 Total general fund 31,169,387 29,355,408 20,436,966 19,076,011 5,718,435 5,173,792 6,530,528 5,280,126 8,890,826 11,932,391 All Other Governmental Funds:

Nonspendable 512,312 643,352 - - - 2,784,600 2,285,330 1,980 2,345 8,083 Restricted 3,454,581 9,994,202 9,479,154 9,723,591 10,067,839 8,702,340 13,375,587 20,775,754 25,779,873 25,868,240 Assigned 9,705,971 - 1,652,198 928,925 894,318 1,374,838 945,767 1,141,407 1,172,209 1,467,001 Unassigned (deficit) (578,904) 950,267 (570,131) (122,707) (132,660) (262,719) (181,979) (140,450) (415,934) (32,428) Total all other governmental funds 13,093,960 11,587,821 10,561,221 10,529,809 10,829,497 12,599,059 16,424,705 21,778,691 26,538,493 27,310,896 Total all governmental funds 44,263,347$ 40,943,229 $ 30,998,187 $ 29,605,820 $ 16,547,932 $ 17,772,851 $ 22,955,233 $ 27,058,817 $ 35,429,319 $ 39,243,287$ NOTE: Information was not available from the City's pension plan to report both the pension liability and changes in pension liability under GASB Statement No. 68 prior to 2015.

Consequently, the amounts reported above in 2014 and prior years are prior to restatement. 141
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City of Citrus Heights, California
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Fiscal year ended June 30)
Revenues: 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Taxes and assessments 20,405,852$ 15,419,083$ 15,582,175$ 16,984,351$ 16,631,964$ 16,522,415$ 16,837,829$ 16,252,772$ 17,671,002$ 19,197,868$ Licenses, permits and fees 1,069,757 1,162,034 1,467,405 1,524,848 1,631,147 1,462,504 1,567,925 1,949,980 3,000,422 3,540,116 Fines and forfeitures 898,734 947,834 1,454,939 1,084,980 1,247,094 1,147,719 1,127,317 1,154,133 1,227,526 1,265,820 Intergovernmental 22,909,194 24,645,011 19,573,316 22,748,760 19,003,009 18,839,531 21,159,815 17,640,156 23,490,200 25,327,254 Use of money and property 803,392 890,087 577,893 874,978 1,398,709 515,517 944,989 761,884 191,732 311,632 Charges for services 1,080,785 6,281,132 6,197,842 6,470,344 6,598,162 6,594,424 7,049,858 7,694,919 7,317,943 7,726,053 Contributions 26,522 25,520 27,126 1,807,470 155,409 19,726 26,872 42,369 103,390 4,416 Other revenues 83,037 52,826 6,031 216,226 1,082,642 491,114 1,580,426 1,430,106 328,076 710,956 Total revenues 47,277,273 49,423,527 44,886,727 51,711,957 47,748,136 45,592,950 50,295,031 46,926,319 53,330,291 58,084,115 Expenditures:

General government 4,472,530 4,472,814 4,732,760 4,940,481 5,547,678 5,582,583 6,364,953 6,481,755 8,989,692 8,086,021 Public safety 17,944,997 18,945,346 18,954,246 19,537,621 19,631,973 20,018,189 21,352,292 21,743,031 21,077,282 20,242,145 Public ways and facilities 18,506,469 12,507,432 14,809,940 16,288,336 12,303,244 11,251,339 10,177,443 7,469,779 6,347,685 6,348,281 Culture and recreation 682,528 608,931 560,376 667,099 724,750 704,866 673,253 787,545 478,510 961,940 Economic development 114,395 171,271 159,924 223,753 405,901 298,781 289,440 927,770 907,684 576,313 Community enhancements 4,406,960 4,348,398 4,388,846 4,425,724 4,714,654 4,306,626 3,920,072 3,708,522 3,573,622 4,139,680 Capital outlay 8,278,153 12,620,848 25,084,392 7,036,250 4,144,138 2,318,319 5,103,347 4,060,450 3,737,928 10,695,156 Debt service:

Lease principal 1 - - 7,638,960 - 13,749,031 - - - - - Principal retirement 2 - - - - - - - - 76,169 3,583,049 Interest and fiscal charges - - - - - - 70,962 76,664 154,731 184,839 Total expenditures 54,406,032 53,675,040 76,329,444 53,119,264 61,221,369 44,480,703 47,951,762 45,255,516 45,343,303 54,817,424 Reconciliation of Governmental Revenues
Less Expenditures to Fund Equity:

Revenues over (under) expenditures (7,128,759) (4,251,513) (31,442,717) (1,407,307) (13,473,233) 1,112,247 2,343,269 1,670,803 7,986,988 3,266,691 Other financing sources (uses):

Tax sharing payments - - 21,387,991 - - - - - - -
Loan issued - - - - - - - - 347,268 396,601
Draw on line of credit - - - - - - 50,001 3,470,000 - - Proceeds from sale of capital assets 24,321 105,911 109,684 14,940 415,345 112,672 32,181 48,112 36,246 150,676 Transfers in 4,938,773 3,106,136 2,642,014 2,514,601 15,236,333 1,514,764 320,356 4,176,222 2,148,207 11,428,316 Transfers out (4,935,855) (3,106,136) (2,642,014) (2,514,601) (15,236,333) (1,514,764) (320,356) (4,176,222) (2,148,207) (11,428,316) Total other financing sources (uses) 27,239 105,911 21,497,675 14,940 415,345 112,672 82,182 3,518,112 383,514 547,277 Net change in fund balances (7,101,520)$ (4,145,602) $ (9,945,042) $ (1,392,367) $ (13,057,888) $ 1,224,919 $ 2,425,451 $ 5,188,915 $ 8,370,502 $ 3,813,968$

0.00% 0.00% 14.91% 0.00% 24.09% 0.00% 0.17% 0.19% 0.55% 8.54% Due to the purchase, the capital lease liability was extinguished.

Source: City Administrative Services Department
Debt service as a percentage of noncapital
expenditures
1 In 2015, the City entered into a capital lease payable agreement for a new City Hall building and utility yard. In 2017, the City exercised its option to purchase the City Hall building and utility yard by making payments totaling $13,749,031.
2 In 2022, the City repaid the outstanding revolving line of credit balance. 142
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City of Citrus Heights, California
Direct and Overlapping Tax Rates
For the last ten fiscal years
(Rate per $100 of taxable value)
2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 Basic Levy 1 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Grant Joint High 0.08230 0.07280 0.04850 0.03060 0.06480 0.01460 0.03320 0.02940 0.02000 0.02360 Los Rios College Gob 0.01930 0.01810 0.01130 0.00910 0.01410 0.01300 0.01310 0.02320 0.02230 0.02490 North Sacto Elementary Gob 0.01670 0.02060 0.01850 0.01260 0.01680 0.00000 0.00000 0.00000 0.00000 0.00000 Rio Linda Elementary Bond 0.05760 0.05570 0.05290 0.04890 0.05210 0.00000 0.00000 0.00000 0.00000 0.00000 San Juan Unified 0.10030 0.16300 0.15090 0.15470 0.15220 0.21150 0.19930 0.17930 0.18090 0.18870 Twin Rivers Unified 0.01170 0.00990 0.05520 0.03890 0.04810 0.14430 0.07340 0.10330 0.10610 0.09840 Total Direct & Overlapping2 Tax Rates 1.28790 1.34010 1.33730 1.29480 1.34810 1.38340 1.31900 1.33520 1.32930 1.33560 City's Share of 1% Levy Per Prop 13 3 0.08431 0.08431 0.08431 0.08431 0.08431 0.08431 0.08431 0.08431 0.08431 0.08431 Voter Approved City Debt Rate
Redevelopment Rate4
Total Direct Rate5 0.12388 0.07634 0.07664 0.07735 0.07759 0.08140 0.07837 0.07908 0.07943 0.07966 Source: Sacramento County Assessor 2012/13 - 2021/22 Tax Rate Table Source: HDL Coren & Cone
5 Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the TotalD i r e c t Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue. 4 Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. 2 Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. 3 City's Share of 1% levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF general fund tax shifts are unknown and may not be subtracted from the City's share. 1 In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. 143
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City of Citrus Heights, California
Assessed Value and Actual Value of Taxable Property
For the Last Ten Fiscal Years
(In thousands of dollars)
Total Real Table Total
Residential Commercial I ndustrial Other Secured Unsecured Total Estimated Total Direct Less: A ssessed Direct Property Property Property Property Property Property Assessed Full Market Tax Rate Secured Unsecured Exceptions Value Tax Rate FY 12-13 4,125,843,469 987,468,004 24,340,107 40,991,950 5,178,643,530 136,454,777 5,315,098,307 5,315,098,307 0.12 535,868,652 53,083,982 434,000 588,518,634 0.084% FY 13-14 4,392,797,873 948,260,199 23,975,394 41,160,931 5,406,194,397 130,148,077 5,536,342,474 5,536,342,474 0.08 521,362,337 51,620,891 434,000 572,549,228 0.084% FY 14-15 4,722,373,921 946,555,612 24,549,642 36,971,515 5,730,450,690 129,655,189 5,860,105,879 5,860,105,879 0.08 519,033,049 48,319,149 420,000 566,932,198 0.084% FY 15-16 4,904,511,049 959,298,396 25,096,287 51,406,049 5,940,311,781 108,308,288 6,048,620,069 6,048,620,069 0.08 505,368,074 38,951,421 378,000 543,941,495 0.084% FY 16-17 5,123,458,670 995,114,927 26,777,317 48,869,328 6,194,220,242 127,456,727 6,321,676,969 6,321,676,969 0.08 515,200,283 39,266,230 371,000 554,095,513 0.084% FY 17-18 5,436,063,995 1,071,328,921 27,361,771 44,407,597 6,579,162,284 125,883,733 6,705,046,017 6,705,046,017 0.08 532,993,401 36,254,710 322,000 568,926,111 0.084% FY 18-19 5,759,511,551 1, 094,930,040 31,158,659 47,155,289 6,932,755,539 131,198,394 7,063,953,933 7,195,152,327 0.08 - - - - 0.000% FY 19-20 6,063,826,197 1,109,893,409 28,709,180 54,462,552 7,256,891,338 129,920,746 7,386,812,084 7,516,732,830 0.08 - - - - 0.000% FY 20-21 6,368,025,400 1,142,931,179 29,220,643 63,644,340 7,603,821,562 133,241,641 7,737,063,203 7,870,304,844 0.08 - - - - 0.000% FY 21-22 6,676,628,818 1,104,565,332 29,522,369 86,849,964 7,897,566,483 126,225,115 8,023,791,598 8,150,016,713 0.08 - - - - 100.000% Source: Sacramento County Assessor 2012/13-2021/22 Combined Tax Rolls Source: HDL Coren & Cone
City * Redevelopment Agency
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value may be increased by an "inflation factor" (limited to a maximum of 2%). With few expectations, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is assessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. * Due to a Revenue Neutrality law, the City has entered into a contract with the County, whereby the County will keep all of the City's property tax revenue through June 2022. Numbers above represent estimates provided by the County. 144
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City of Citrus Heights, California
Principal Property Tax Payers
Current Year and 9 Years Ago
Assessed % of Assessed % of
Property Owner Valuation Ran k Total Valuation Rank Total Montage Apartments Property 80,929,813$ 1 1.01%
Birdcage Marketplace LLC 68,967,620 2 0.86% 58,944,341 2 1.11% Lakeview Gold 101305 LP 49,294,232 3 0.61%
MG Atwood Apartments Ria LLC 48,436,658 4 0.60%
Spring Creek Apartments LP 46,981,740 5 0.59%
Mitchell Sippola LP 43,810,911 6 0.55%
Wal-Mart Real Estate/Sam's Club 27,776,345 7 0.35% 24,131,913 6 0.45% Wedgewood Commons Apartments LLC 26,586,840 8 0.33% Marshall Field Stores Inc 26,408,603 9 0.33% 23,310,903 8 0.44% Ethan Conrad 26,346,181 10 0.33%
Steadfast Sunrise LLC 78,628,110 1 1.48%
FOAF Oak Creek LLC 51,230,651 3 0.96%
J. And M. Marlow Family Trust 42,690,867 4 0.80%
Grove at Sunrise LLC 29,091,565 5 0.55%
Ashley 2012 Family Trust 23,897,032 7 0.45%
Sears Roebuck Company 21,531,948 9 0.41%
Costco Wholesale Corporation 21,351,728 10 0.40%
445,538,943$ 5.56% 374,809,058 $ 7.05%
Information collected by: HDL Coren & Cone
2021-2022 2012-2013
Data Source: Sacramento County Assessor 2021/22 & 2012/13 Combined Tax Rolls and the SBE Non Unitary Tax Roll
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City of Citrus Heights, California
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
Fiscal Year City Sacramento State of Total
Ended June 30 Direct Rate County STA Measure A California Sales Tax Rate 2013 1.00 0.25 0.50 6.25 8.00%
2014 1.00 0.25 0.50 6.25 8.00%
2015 1.00 0.25 0.50 6.25 8.00%
2016 1.00 0.25 0.50 6.25 8.00%
2017 1.00 0.25 0.50 6.00 7.75%
2018 1.00 0.25 0.50 6.00 7.75%
2019 1.00 0.25 0.50 6.00 7.75%
2020 1.00 0.25 0.50 6.00 7.75%
2021 1.00 0.25 0.50 6.00 7.75%
2022 1.00 0.25 0.50 6.00 7.75%
Source: California State Board of Equalization
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City of Citrus Heights, California
Schedule of Top 25 Principal Sales Tax Remitters (listed in alphabetical order) Current year and Nine Years Ago
Fiscal Year Ended June 30, 2021
2022 2013
(represents 50.93% of total sales tax) (represents 53.85% of total sales tax) 7 Eleven Arco AM PM
76 Market Arco AM PM
A&A Stepping Stone Manufacturing AT&T Mobility
Arco AM PM Barnes & Noble
Arco AM PM Best Buy
Best Buy Burlington
Burlington Chevron
Chevon Costco
Citrus Heights Shell JC Penney
Costco Kmart
Green Acres Nursery & Supply Kohls
JC Penny Lowe's
Kohls Macy's
Lowes Maita Honda
Maita Honda Marshalls
Marshalls Old Navy
McDonalds Pastor Auto Care
Pastor Auto Care Ross
Quik Stop Sams Club w/Fuel
Ross Sears
Sams Club w/Fuel Shell
Target Target
Texas Roadhouse Toys R Us
Walgreens Walgreens
Walmart Supercenter Walmart Supercenter
* Firms Listed Alphabetically
Period: July 2021 thru June 2022 Period: July 2012 thru June 2013 Note: The lists above includes both public and private entities and therefore the dollar values have been omitted because the information is not public information and is not provided by HDL. Rankings are determined by the sales dollar volume.

Source: HDL & Associates, State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office
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City of Citrus Heights, California
Property Tax Levies and Collections
For the last ten fiscal years
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30, Fiscal Year* Amount of Levy Years Amount of Levy 2013 3,952,063 3,952,063 100% - 3,952,063 100% 2014 4,180,600 4,180,600 100% - 4,180,600 100% 2015 4,481,889 4,481,889 100% - 4,481,889 100% 2016 4,801,882 4,662,052 100% - 4,662,052 100% 2017 4,960,511 4,774,258 100% - 4,774,258 100% 2018 5,286,616 4,885,101 100% - 4,885,101 100% 2019 5,593,319 5,593,319 100% - 5,593,319 100% 2020 5,888,260 5,888,260 100% - 5,888,260 100% 2021 6,203,470 6,203,470 100% - 6,203,470 100% 2022 6,521,191 6,521,191 100% - 6,521,191 100% Source: Sacramento County Auditor-Controller's Office
Collected within the
Fiscal Year of the Levy Total Collections to Date
* Due to a Revenue Neutrality law, the City has entered into a contract with the County of Sacramento (County), whereby the County will keep all of the City's property tax revenue throughJune 2022. Numbers above were provided by the County.

Note: Amounts reported and collected under the Teeter Plan in which all taxes are distributed to the City in the year of the levy with the County retaining any interest or penalties on uncollected balances. 148
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Agenda Packet Page 245
City of Citrus Heights, California
Direct and Overlapping Debt
Current Year
June 30, 2022
2021-22 Assessed Valuation $8,022,787,813
City's Share
Total Debt of Debt
DIRECT & OVERLAPPING TAX & ASSESSMENT DEBT: 6/30/2022 % Applicable 1 6/30/2022
Los Rios Community College District 495,095,000 3.480% 17,229,306 San Juan Unified School District 752,168,565 19.242 144,732,275 Twin Rivers Unified School District 51,225,000 0.221 113,207 Twin Rivers Unified School District (former Grant Joint UHSD) 259,153,860 0.174 450,928 CA Statewide Communities Development Authority Assessment District No. 19-14Ca 4,641,000 100 4,561,000 City of Citrus Heights 604,652 100 604,652 TOTAL DIRECT & OVERLAPPING TAX & ASSESSMENT DEBT 167,691,368 OVERLAPPING GENERAL FUND DEBT:

Sacramento County General Fund Obligations 128,277,354 4.192% 5,377,387 Sacramento County Pension Obligation Bonds 625,201,330 4.192 26,208,440 Sacramento Board of Education Certificates of Participation 2,635,000 4.192 110,459 Twin Rivers Unified School District Certificates of Participation 8,090,000 0.174 14,077 City of Citrus Heights General Fund Obligations 3,520,001 100 3,520,001 Sacramento Metropolitan Fire District General Fund Obligations 8,030,000 10.334 829,820 Sacramento Metropolitan Fire District Pension Obligations Bonds 27,530,000 10.334 2,844,950 Orangevale Recreation and Park District Certificates of Participation 902,000 0.034 307 Sunrise Recreation and Park District Certificates of Participation 5,060,000 54.823 2,774,044 TOTAL GROSS OVERLAPPING GENERAL FUND DEBT 41,679,485
Less: Sacramento County supported obligations 575,870
TOTAL NET OVERLAPPING GENERAL FUND DEBT 41,103,615$
TOTAL DIRECT DEBT $4,124,653
TOTAL GROSS OVERLAPPING DEBT 205,246,200
TOTAL NET OVERLAPPING DEBT 204,670,330
GROSS COMBINED TOTAL DEBT 209,370,853 2
NET COMBINED TOTAL DEBT 208,794,983
Ratios to 2021-22 Assessed Valuation:

Total Overlapping Tax and Assessment Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.08% Direct Debit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.04% Gross Combined Total Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.60% Net Combined Total Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.59% Source: California Municipal Statistics, Inc.
(1)The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and non-bonded capital lease obligations. 149
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City of Citrus Heights, California
Legal Debt Margin Information
Last Ten Fiscal Years
(Dollars in thousands)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Assessed Value 5,315,098,307$ 5,536,342,474 $ 5,860,105,879 $ 6,048,620,069 $ 6,321,676,969 $ 6,705,046,017 $ 7,063,953,933 $ 7,386,812,084 $ 7,737,063,203 $ 7,897,566,483$ Conversion Percentage 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% Adjusted Assessed Value 1,328,774,577 1,384,085,619 1,465,026,470 1,512,155,017 1,580,419,242 1,676,261,504 1,765,988,483 1,846,703,021 1,934,265,801 1,974,391,621 Debt Limit Percentage 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% Debt limit 199,316,187 207,612,843 219,753,970 226,823,253 237,062,886 251,439,226 264,898,272 277,005,453 290,139,870 296,158,743 Total net debt applicable to limit - - - - - - - - - -
Legal debt margin 199,316,187$ 207,612,843$ 219,753,970$ 226,823,253$ 237,062,886$ 251,439,226$ 264,898,272$ 277,005,453$ 290,139,870$ 296,158,743$ Total net debt applicable to the limit
as a percentage of debt limit 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Source: City Administrative Services Department
Notes: The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed secured tax valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of the assessed value for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

The City does not have any outstanding general obligation debt subject to the limit. 150
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City of Citrus Heights, California
Ratios of Outstanding Debt by Type - Government Activities Last Ten Calendar Years
Fiscal Year Percentage of
Ended June 30 Debt Personal Income Per Capita
2013 -$ - - $ 2014 - - - 2015 13,749,031 652.44% 162.61
2016 13,749,031 651.70% 159.33
2017 - - - 2018 - - - 2019 50,001 2.10% 0.57
2020 3,520,001 138.10% 40.09
2021 3,791,100 140.49% 43.17
2022 604,652 21.44% 18.51
Source: City Administrative Services Department
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City of Citrus Heights, California
Demographic and Economic Statistics
Last Ten Calendar Years
Calendar Population Personal Income Per Capita Unemployment Median A ge % of Pop 25+ w/ % of Pop 25+ w/ Year (In Thousands) Personal Income Rate High School Degree Bachelor's Degree 2012 84,345 2,168,257 $ 25,707 $ 5.8% 37.1 89.2% 18.5% 2013 84,544 2,163,481 25,590 4.9% 37.0 89.9% 19.2% 2014 84,550 2,107,324 24,924 7.7% 37.0 89.2% 18.9% 2015 86,291 2,109,711 24,448 6.3% 37.8 89.2% 18.9% 2016 87,013 2,097,135 24,101 5.6% 37.3 89.9% 18.8% 2017 87,731 2,193,100 24,997 4.5% 37.7 89.6% 19.0% 2018 88,095 2,377,290 26,985 3.7% 37.6 90.2% 20.0% 2019 87,811 2,548,891 29,027 3.5% 37.7 90.2% 20.7% 2020 87,811 2,698,425 30,729 9.0% 38.0 90.3% 20.4% 2021 86,367 2,820,690 32,659 6.6% 37.6 90.2% 21.6% Notes and Data Sources:

Information collected by: HDL Coren & Cone
Population: California State Department of Finance. Unemployment Data: California Employment Development Department 2010 and later - Income, Age and Education Data - US Census Bureau, most recent American Community Survey 2000-2009 Income, Age and Education Data: ESRI - Demographic Estimates are based on the last available Census. Projections are developed by incorporating all of the prior census data released to date. Demographic Data is totaled form Census Block Groups that overlap the City's boundaries
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City of Citrus Heights, California
Principal Employers
Current Year and Ten Years Ago
Percentage Percentage
of Top 10 of Top 10
Employer Employees Rank Employment Employees Rank Employment State of California 82,894 1 50.17% 70,548 1 52.92% UC Davis/US Davis Health System 16,075 2 9.73% 9,985 3 7.49% Sacramento County 12,760 3 7.72% 10,634 2 7.98% Kaiser Permanente 12,301 4 7.45% 5,696 8 4.27%
U.S. Government 10,698 5 6.48% 5,750 7 4.31%
Sutter Health Sacramento Sierra Region 9,595 6 5.81% 6,507 4 4.88% Dignity Health 7,488 7 4.53% 5,756 6 4.32%
Intel Corp 5,300 8 3.21% 6,000 5 4.50%
San Juan Unified School District 5,126 9 3.10% 4,700 10 3.53% Raley's 2,980 10 1.80%
Elk Grove Unified School District 7,735 9 5.80%
Total 165,217 100.00% 133,311 100.00%
Notes:

Source: Sacramento Business Journal
2022* 2013*
* Information presented is for the Sacramento Region Largest Sacramento County Employers and Largest Private-Sector Employers, since separate data is not available for the City of Citrus Heights. Companies surveyed for this list have offices in Sacramento County. Not all responded to inquires. 153
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City of Citrus Heights, California
Full-time and Part-time City Employees by Function
Last Ten Fiscal Years
(Fiscal year ended June 30)
Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General government 22 22 22 25 28 28 23 31 31 27
Public safety 141 150 145 144 144 151 149 149 133 138
Public works 27 25 25 20 18 16 28 16 19 17
Community development 19 16 17 18 18 18 15 14 13 12
Community center 11 15 14 14 11 9 8 6 4 8
Total 220 228 223 221 219 222 223 216 200 202
Source: City Administative Services Department
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City of Citrus Heights, California
Operating Indicators by Function
Last Ten Fiscal Years
(Fiscal year ended June 30)
Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Police
Arrests 3,276 3,348 3,185 2,990 2,730 2,452 2,249 1,966 2,054 1,411 Parking citations issued 724 539 685 520 650 908 906 581 393 681 Total police actions 4,000 3,887 3,870 3,510 3,380 3,360 3,155 2,547 2,447 2,092 Fire ** n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Public works
Street resurfacing (miles) 1 4 2 4 1 - - 2 - -
Parks and recreation ** n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Water ** n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Sewer ** n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Building:

Commercial/Industrial Construction 2 1 3 12 2 1 2 1 5 2 Residential Construction 7 10 43 28 9 17 26 24 140 189
Total building actions 9 11 46 40 11 18 28 25 145 191
** Services are provided by Special Districts, which are separate from the City. Information not available.

Source: City Administrative Services Department
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City of Citrus Heights, California
Capital Asset Statistics by Function
Last Ten Fiscal Years
(Fiscal year ended June 30)
Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Police:

Stations 1111111111
Fire *
Fire stations 5554444444
Public works
Streets (miles) 237 237 237 237 237 237 214 237 237 242 Streetlights 4337 4365 4407 4497 4480 4702 4714 4736 4741 4810 Parks and recreation
Parks * 141 41 41 51 51 51 51 71 71 7
Community centers 3333333333
Water *
Water mains (miles) 225 225 225 225 225 225 225 340 340 366.66 Daily average consumption in MGD ** 17.8 17.8 17.8 12 12 12 12 14.052 13.415 13.53 Sewer *
Sanitary sewers (miles) 235 235 235 235 235 235 235 238 240 240 Number of pump stations 1 1 1 1 1 1 1 2 2 2
Building
Commercial/Industrial Construction Value 1,202,480$ 1,600,000$ 4,387,549$ 22,135,000$ 7,105,826$ 680,000$ 9,950,000$ 875,001$ 591,141$ 11,269,708$ Residential Construction Value 1,275,716 1,675,004 10,993,691 6,898,647 6,306,226 2,753,290 4,495,473 2,720,549 1,047,021 50,274,112 ** MGD = Million Gallons per Day.

Source: City Administrative Services Department
* Services are provided by Special Districts, which are separate from the City. The data provided are for those portions of the system located within the City of Citrus Heights. 156
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Printed on Recycled Paper

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE
: March 9, 2023
TO: M
ayor and City Council Member
Ashley J. Feeney, City Manager
FRO
M: Casey Kempenaar, Community Development Director
Eric Singer, Associate Planner
SU
BJECT: 2022 General Plan Annual Progress Report
Summary and Recommendation
Staff recommends the City Council adopt Resolution 2023-__ accepting the 2022 General Plan Annual Progress Report and directing staff to forward the report to the appropriate state agencies in accordance with Government Code Section 65400.

Fiscal Impact
There is no fiscal impact associated with this action.

Background and Analysis
State law requires all cities and counties submit to their legislative bodies an Annual P rogress Report on the status of the General Plan and progress in its implementation. The C ity’s General Plan contains 66 goals to guide overall C ity development. As a basis for local government decision-making, and to maintain the city’s commitment to transparency and accountability, these goals and policies are analyzed and serve as the guiding action to achieve the overall vision for the community.

Sta
te law requires each jurisdiction submit a report to the Governor’s Office of Planning and Research (OPR) to ensure the goals, polices, and action items of the General Plan are being implemented. Furthermore, a report on the progress made to implement the Housing Element of the General Plan must be provided to the Department of Housing and Community Development (HCD). Staff has combined the reporting elements of OPR and HCD into a single Annual Progress Report (Attachment 1a). This report provides an analysis of those General Plan polices and action items that have made notable progress during calendar year 20 22, including the annual Housing Element progress report for all action items.

Fo
llowing the City Council’s review and acceptance of the General Plan Annual Progress Report, staff will forward the report to OPR and HCD as required by law.

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2022 General Plan Annual Progress Report
March 9, 2023

Page 2 of 2 ends

Citrus Heights City Council MeetingsMarch 9, 2023

Citrus Heights City Council Meetings
March 9, 2023