Citrus Heights City Council Meetings
February 22, 2024

AGENDA
FEBRUARY 22, 2024

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. If you wish to address the Council during the meeting, please fill out a Speaker Identification Sheet and give it to the City Clerk. 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.

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.

February 22, 2024 City Council Agenda Packet
2-22-24 REGULAR COUNCIL AGENDA PACKET.PDF

CALL REGULAR MEETING TO ORDER
Documents:

February 22, 2024 City Council Agenda Packet
2-22-24 REGULAR COUNCIL AGENDA PACKET.PDF

CALL REGULAR MEETING TO ORDER

1. Flag Salute

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

3. Video Statement

APPROVAL OF AGENDA

PUBLIC COMMENT
Members of the public are entitled to address the City Council concerning any item within the City Council ’s subject matter jurisdiction. Pursuant to the Brown Act, the City Council is prohibited from discussing or acting on any item raised during “Public Comment” not appearing on the posted agenda.

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.

4. SUBJECT: Approval Of Minutes
RECOMMENDATION: Approve the Minutes of the Meeting of February 8, 2024

5. SUBJECT: Quarterly Treasurer’s Report
STAFF REPORT: S. Talwar / A. Preciado
RECOMMENDATION: Receive and file the Quarterly Treasurer’s Report for the quarter ending December 31, 2023

6. SUBJECT: Annual Comprehensive Financial Report
STAFF REPORT: S. Talwar / A. Preciado
RECOMMENDATION: Receive and file the City of Citrus Heights Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2023, the City of Citrus Heights Popular Annual Financial Report for the Fiscal Year Ended June 30, 2023, the Audit Communication Letter, and the Independent Auditors ’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters

7. SUBJECT: Resolution Authorizing The Application/Receipt Of Funds For The Prohousing Incentive Award
STAFF REPORT: C. Kempenaar / A. Bermudez
RECOMMENDATION: Adopt Resolution No. 2024- ___, A Resolution of the City Council of the City of Citrus Heights Authorizing for, and Receipt of Prohousing Incentive Program (PIP) Funds
Documents:

Prohousing Incentive Award
STAFF REPORT: C. Kempenaar / A. Bermudez
RECOMMENDATION: Adopt Resolution No. 2024- ___, A Resolution of the City Council of the City of Citrus Heights Authorizing for, and Receipt of Prohousing Incentive Program (PIP) Funds

PUBLIC HEARINGS

8. SUBJECT: Addition And Amendments To Adopted Master Fee Schedule STAFF REPORT: S. Talwar
RECOMMENDATION: Adopt Resolution No. 2024- ___, A Resolution of the City Council of the City of Citrus Heights, California, Amending the City User Fees and Establishing New Fees for Certain Services Provided

REGULAR CALENDAR

9. SUBJECT: Fiscal Year 2023-24 Mid-Year Budget Adjustment And Financial Forecast Update
STAFF REPORT: S. Talwar / A. Preciado
RECOMMENDATION: Adopt Resolution No. 2024- ___, A Resolution of the City Council of the City of Citrus Heights, California, Approving Amendments to the Fiscal Year 2023- 24 Budget

10. SUBJECT: Second Reading - Ordinance Amending Contract Between The Board Of Administration Of The California Public Employees’ Retirement System And The City Council Of The City Of Citrus Heights
STAFF REPORT: S. Talwar / M. Bushey
RECOMMENDATION: Adopt Ordinance No. 2024- 001, An Ordinance of the City Council of the City of Citrus Heights Authorizing an Amendment to the Contract Between the City Council of the City of Citrus Heights and the Board of Administration of the California Public Employees’ Retirement System

DEPARTMENT REPORTS

CITY MANAGER ITEMS

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

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

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

CITY OF CITRUS HEIGHTS

CITY COUNCIL
Regular Meeting of Thursday, February 22, 2024
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. If you wish to address the Council during the meeting, please fill out a Speaker Identification Sheet and give it to the City Clerk. 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.

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.

February 16, 2024
_______________________
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, February 22, 2024

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REGULAR CITY COUNCIL MEETING
6:00 PM

CALL REGULAR MEETING TO ORDER

1. Flag Salute

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

3. Video Statement

APPROVAL OF AGENDA

PUBLIC COMMENT
Members of the public are entitled to address the City Council concerning any item within the City Council’s subject matter jurisdiction. Pursuant to the Brown Act, the City Council is prohibited from discussing or acting on any item raised during “Public Comment” not appearing on the posted agenda.

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.

4. SUBJECT: Approval of Minutes
RECOMMENDATION: Approve the Minutes of the Meeting of February 8, 2024

5. SUBJECT: Quarterly Treasurer’s Report
STAFF REPORT: S. Talwar / A. Preciado
RECOMMENDATION: Receive and file the Quarterly Treasurer’s Report for the quarter ending December 31, 2023

6. SUBJECT: Annual Comprehensive Financial Report
STAFF REPORT: S. Talwar / A. Preciado
RECOMMENDATION: Receive and file the City of Citrus Heights Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2023, the City of Citrus Heights Popular Annual Financial Report for the Fiscal Year Ended June 30, 2023, the Audit Communication Letter, and the Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters

7. SUBJECT: Resolution Authorizing the Application/Receipt of Funds for the Prohousing Incentive Award
STAFF REPORT: C. Kempenaar / A. Bermudez
RECOMMENDATION: Adopt Resolution No. 2024-___, A Resolution of the City Council of the City of Citrus Heights Authorizing for, and Receipt of Prohousing Incentive Program (PIP) Funds Agenda Packet Page 2
Citrus Heights City Council Thursday, February 22, 2024

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PUBLIC HEARING

8. SUBJECT: Addition and Amendments to Adopted Master Fee Schedule STAFF REPORT: S. Talwar
RECOMMENDATION: Adopt Resolution No. 2024-___, A Resolution of the City Council of the City of Citrus Heights, California, Amending the City User Fees and Establishing New Fees for Certain Services Provided

REGULAR CALENDAR

9. SUBJECT: Fiscal Year 2023-24 Mid-Year Budget Adjustment and Financial Forecast Update STAFF REPORT: S. Talwar / A. Preciado
RECOMMENDATION: Adopt Resolution No. 2024-___, A Resolution of the City Council of the City of Citrus Heights, California, Approving Amendments to the Fiscal Year 2023-24 Budget

10. SUBJECT: Second Reading - Ordinance Amending Contract between the Board of Administration of the California Public Employees’ Retirement System and the City Council of the City of Citrus Heights
STAFF REPORT: S. Talwar / M. Bushey
RECOMMENDATION: Adopt Ordinance No. 2024-001, An Ordinance of the City Council of the City of Citrus Heights Authorizing an Amendment to the Contract Between the City Council of the City of Citrus Heights and the Board of Administration of the California Public Employees’ Retirement System

DEPARTMENT REPORTS

CITY MANAGER ITEMS

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

ADJOURNMENT
Agenda Packet Page 3
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CITY OF CITRUS HEIGHTS

CITY COUNCIL
Regular Meeting of Thursday, February 8, 2024
City Hall Council Chambers, 6360 Fountain Square Dr., Citrus Heights, CA Regular Meeting 6:00 p.m.

CALL REGULAR MEETING TO ORDER
The regular meeting was called to order at 6:02 p.m. by Mayor Daniels.

1. Flag Salute was led by Mayor Daniels.

2. Roll Call: Council Members present: Lopez-Taff, Middleton, Schaefer, Karpinski-Costa, Daniels Council Members absent: None
Staff present: Bermudez, Feeney, Jones, Kempenaar, 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 Schaefer, seconded by Council Member Middleton, the City Council approved the agenda.

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

PRESENTATIONS

4. Proclamation of the City of Citrus Heights Recognizing the Month of February as Black History Month
Council Member Lopez-Taff read the proclamation.

5. Proclamation Recognizing Diane Ebbitt-Riehle for her service as Executive Director of the Citrus Heights Chamber of Commerce
Council Member Schaefer read and presented the proclamation to Diane Ebbitt-Riehle, former Executive Director of the Citrus Heights Chamber of Commerce.
5a. Proclamation of the City of Citrus Heights Recognizing Ryan Jones on the Occasion of His Promotion to Colonel with the California Air National Guard Mayor Daniels read and presented the proclamation to Colonel Ryan R. Jones, City Attorney.

PUBLIC COMMENT
Sandy M stated the World Health Organization has announced an amendment to a credible threat of a public health emergency. She said since the Council has a history of putting the City under Health ITEM 4 Agenda Packet Page 4
Citrus Heights City Council Thursday, February 8, 2024

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Emergency orders for extended periods of time, they are very concerned that another round of involuntary lockdowns and health orders could occur in the City.

Debbie W believes it is the City Council’s duty to always protect the natural rights of the people so they are guaranteed enjoyment of all their natural rights. She stated if the City takes action blocking the people’s rights to enjoy freedom then any lockdown mandate or forced use of any medical device will be construed as being done with malice, intent, full knowledge and understanding against your trust and denture.

Niki Mc stated since the Goodwill store is closing maybe we can have a big class and teach everybody how to plan for the future.

Kathy Morris commended City staff for their work on storm related responses.

Forest Allen expressed excitement for the Sound Wall Beautification Project.

Ron Ferns has volunteered his time planting flowers near the soundwall on Auburn Blvd. and requested that sound wall maintenance crews be mindful of flowers along the walls.

City Clerk Van read the following written public comment submitted by Rick Hodgkins, “Hello there! I am so happy to hear that the city now has a brand new option maybe even two brand new options for all you can eat oriental buffets! I understand that the Tokyo buffet on greenback Lane and Fountain Square, Drive had a fire back in 2018 and turns out that they will be under new ownership with a new name, even though I can’t remember it offhand. But hibachi grill buffet and sushi bar on sunrise Boulevard at Kingswood, right next to El Tapatio, I am actually going to the new hibachi buffet Grill and sushi bar this coming Saturday, not to celebrate my birthday, that which was just yesterday, but also for Valentine’s Day with my girlfriend, as she has to work all day Wednesday, February 14. at the next city council meeting I will report back how things went. I will submit further comment on item 12 related to mixed use development with multifamily housing.”

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES
Council Member Middleton has been meeting with local faith leaders in the community to talk about congregational engagement and community involvement. She announced the passing of Lauren Hammond, former Sacramento City Council Member, and shared that the memorial services will be held February 9 at Sacramento State University. She requested the Mayor adjourn the City Council meeting in Lauren Hammond’s honor.

Council Member Lopez-Taff attended the Rancho Cordova Community Luncheon. She attended the Kiwanis / Soroptimist Crab Feed. She chaired the Citrus Heights Chamber Executive Director search committee. She also attended Sacramento County District Attorney Thien Ho’s State of Public Safety Address. She met with Assemblyman Josh Hoover regarding proposed bills and bipartisan amendments to Proposition 47.

Council Member Schaefer provided updates from the Sacramento Area Council of Governments meeting. He attended Colonel Ryan R. Jones’ promotion ceremony with the California Air National Guard.

ITEM 4 Agenda Packet Page 5
Citrus Heights City Council Thursday, February 8, 2024

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Vice Mayor Karpinski-Costa went to an event recognizing Indian Republic Day. She had lunch with a new vice mayors group. She attended a Sacramento Suburban Water District meeting. She attended Colonel Ryan R. Jones’ promotion ceremony. She announced a three year adjustment to sewer rates and a public hearing to be held at the Citrus Heights Community Center on March 7 from 6:00 – 7:30 p.m. She announced the Fill the Boot event will begin Friday, February 9 and there will be a Safety Fair on Saturday, February 10 at the Sunrise Mall. She gave a reminder that there is a Sunrise Recreation and Park District Board Meeting on February 21 at 5:30 p.m. about a proposed amphitheater at Rusch Park. She gave a reminder about mosquitos and heart worm prevention for pets. She announced that Sacramento SPCA pet adoptions will be $14 on February 14. She seconded Council Member Middleton’s request to adjourn the City Council meeting in Lauren Hammond’s honor.

Mayor Daniels echoed remarks on the passing of Lauren Hammond. He attended an event recognizing Indian Republic Day. He gave a reminder for Mondays with the Mayor at City Hall. He attended the Sunrise Marketplace PBID Board meeting. He attended the District Attorney’s State of Public Safety event. He provided an update from the Sacramento Transportation Authority meeting. He announced the Rotary Crab Feed is February 10. He attended the first annual Purple and Gold Gala hosted by the Purple Pageant.

CONSENT CALENDAR

6. SUBJECT: Approval of Minutes
RECOMMENDATION: Approve the Minutes of the Meeting of January 25, 2024

7. SUBJECT: Appointment to Sacramento Groundwater Authority STAFF REPORT: A. Van
RECOMMENDATION: Confirm the appointment of members of the Citrus Heights Water District Board to serve on the Sacramento Groundwater Authority Board Confirmed Appointments
Sacramento Groundwater Authority Caryl F. Sheehan
Raymond A. Riehle (Alternate)

8. SUBJECT: Auburn Boulevard Complete Streets Phase 2 Project – Reject All Bids and Authorize Staff to Re-Bid Project
STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Adopt Resolution 2024-010, A Resolution of the City Council of the City of Citrus Heights, California, Rejecting All Bids for Construction of the Auburn Boulevard Complete Streets, Phase 2 Project and Authorizing Staff to Re-Advertise the Project

9. SUBJECT: Authorize City Manager to Execute Agreements Associated with the Retail Theft Prevention Program
STAFF REPORT: A. Turcotte
RECOMMENDATION: Adopt Resolution 2024-011, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager, or Designee, to Execute All Agreements and Purchasing Associated with the Organized Retail Theft Prevention Grant Funding
ITEM 4 Agenda Packet Page 6
Citrus Heights City Council Thursday, February 8, 2024

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10. SUBJECT: Sound Wall Beautification – Award of Contract STAFF REPORT: R. Cave / A. Velasquez
RECOMMENDATION: Adopt Resolution No. 2024-012, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute an Agreement with H.B. Restoration, Inc. for the Sound Wall Beautification Project ACTION: On a motion by Vice Mayor Karpinski-Costa, seconded by Council Member Middleton, the City Council adopted Consent Calendar Items 6, 7, 8, 9, and 10.

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

REGULAR CALENDAR

11. SUBJECT: Cannabis Dispensary Study Session
STAFF REPORT: C. Kempenaar / M. Huber / S. Talwar / A. Turcotte RECOMMENDATION: Staff recommends that the City Council:
a. Provide feedback and direction whether to proceed with necessary Municipal Code updates necessary to allow retail Cannabis Businesses as set forth in this staff report b. Approve a proposed timeline for implementation
c. Provide direction whether or not to proceed with a cannabis tax measure for the November 2024 ballot
Community Development Director Kempenaar presented an overview on current State regulations and the City’s municipal code on retail cannabis. He noted cannabis deliveries are allowed by the State to come into the City. He provided an overview of the State’s cannabis dispensary licensing requirements.

He noted an error in the staff report and corrected that the State does not require a 600 feet separation from another dispensary. He provided an overview of revenue approaches related to retail cannabis dispensaries, options include a voter approved cannabis tax and a development agreement with a Community Benefits Fund. In order to create a cannabis tax to appear on the November 5, 2024 General Election ballot, staff would bring back a draft tax measure for Council consideration. Staff also suggests doing public outreach related to cannabis.

City Council questions and comments followed.

Community Development Director Kempenaar, Police Chief Turcotte, and City Attorney Jones responded to questions.

PUBLIC COMMENT
Joe Romero, a cannabis business owner, spoke in favor of allowing retail cannabis businesses in the city.

ITEM 4 Agenda Packet Page 7
Citrus Heights City Council Thursday, February 8, 2024

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Kathy Morris spoke in opposition to allowing retail cannabis businesses in the city.

Michael Lagomarsino spoke in opposition to allowing retail cannabis businesses in the city.

Mr. Clark, a social justice activist and member of the community spoke in favor of allowing retail cannabis businesses in the city.

Brandon Bolton, a criminal justice advocate as a Board Member of Mission Green and the Founder of the United Corps Alliance and Cannabis Equity Policy Council, spoke in favor of allowing retail cannabis businesses in the city.

Albert Fox spoke in opposition to allowing retail cannabis businesses in the city.

Mark Mabutos, a cannabis business owner, spoke in favor of allowing retail cannabis businesses in the city.

Jeanne Bruins spoke in opposition to allowing retail cannabis businesses in the city.

Sean Kiernan, CEO for Weed for Warriors veteran organization, spoke in favor of allowing retail cannabis businesses in the city.

Mark Carrillo spoke in favor of allowing retail cannabis businesses in the city.

India Hayes, a cannabis business general manager spoke in favor of allowing retail cannabis businesses in the city.

Natalee Price spoke in favor of allowing retail cannabis businesses in the city.

Jimmy Bobak, a cannabis business owner, spoke in favor of allowing retail cannabis businesses in the city.

Jacob Schmick, a cannabis business owner, spoke in favor of allowing retail cannabis businesses in the city.

City Clerk Van referenced the agenda, stating that written public comment should be submitted by 4:00 p.m. and copies of those comments received after 4:00 p.m. have been provided to the City Council.

City Clerk Van read the following written public comment submitted by Maria Uirostegui, “I support that the City Council lift the ban on cannabis retail businesses. Currently citrus heights is losing a significant amount of revenue to the city of Sacramento by continuing this ban. The potential of having this revenue stream in the city of citrus heights can be used for many things including improving roads, infrastructure and issues pertaining to the unhoused and homelessness and other social services that are in need of financial support. I encourage the city council to direct staff to revisit this issue and move forward on approving a pathway for the city to attain a revenue stream and create jobs and infill currently open commercial space by pursuing the implementation of opening up cannabis retail in our community”.

Council Member Schaefer expressed support for conducting public outreach and exploring this issue.

ITEM 4 Agenda Packet Page 8
Citrus Heights City Council Thursday, February 8, 2024

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Council Member Middleton expressed support with continuing to explore this issue.

Vice Mayor Karpinski-Costa expressed support for gathering public input and exploring this issue.

Council Member Lopez-Taff stated she is not in support of allowing retail cannabis businesses within the City.

Mayor Daniels stated he is not in support of a cannabis tax measure, he would like to see a map of where potential businesses may be located depicting state distance requirements.

Community Development Director Kempenaar responded to questions.

By majority consensus, the City Council directed staff to conduct further public outreach and continue to explore allowing retail cannabis businesses within the City and report back to the City Council.

12. SUBJECT: Adoption of Citywide Objective Design & Development Standards STAFF REPORT: C. Kempenaar / A. Bermudez
RECOMMENDATION: Adopt Resolution No. 2024-013, A Resolution of the City Council of the City of Citrus Heights, California, Adopting Objective Design Standards for the Review of Qualifying Multi-Family and Residential Mixed-Use Development within the City’s Commercial Corridors and Finding the Guidelines are Exempt from California Environmental Quality Act (CEQA) Under Section 15061 (B)(3)
Senior Planner Bermudez provided an overview of the objective design standards for qualifying multifamily and residential mixed-use housing projects in commercial planning zones.

City Council questions and comments followed.

Senior Planner Bermudez responded to questions.

City Clerk Van read the following written public comment submitted by Rick Hodgkins, “Other cities just like Sacramento and San Francisco have community models, that where there is mixed use Development combined with multifamily housing, all in one building! Support this and I would ask that the city council please do the same? Thank you.”
City Council questions and comments followed.

Community Development Director Kempenaar, Senior Planner Bermudez, and City Manager Feeney responded to questions.

ACTION: On a motion by Council Member Middleton, seconded by Council Member Lopez-Taff, the City Council adopted Resolution No. 2024-013, A Resolution of the City Council of the City of Citrus Heights, California, Adopting Objective Design Standards for the Review of Qualifying Multi-Family and Residential Mixed-Use Development within the City’s Commercial Corridors and Finding the Guidelines are Exempt from California Environmental Quality Act (CEQA) Under Section 15061 (B)(3).

AYES: Lopez-Taff, Middleton, Schaefer, Karpinski-Costa
NOES: Daniels
ITEM 4 Agenda Packet Page 9
Citrus Heights City Council Thursday, February 8, 2024

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ABSENT: None

DEPARTMENT REPORTS
None.

CITY MANAGER ITEMS
City Manager Feeney thanked the General Services Department and Police Department for their storm response. He announced that a Ballot Drop Box for the March 5 Presidential Primary Election is located in front of City Hall and open until 8:00 p.m. on Election Day and an In-Person Vote Center will be open at the Community Center from February 24 to March 5. He also announced the Community Workshop will take place February 10 at City Hall. He stated that City Hall will be closed February 19 in observation of Presidents’ Day.

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS Vice Mayor Karpinski-Costa requested a future agenda item to discuss changing City Council Meeting days. Council Member Middleton supported the request.

Mayor Daniels requested staff bring forward an informational report on traffic signal outages.

ADJOURNMENT
Mayor Daniels adjourned the regular meeting at 8:59 p.m., with a moment of silence in honor of Lauren Hammond, former Sacramento City Council Member, and Citrus Heights Water District employee, Jason Tupper who both recently passed away.

Respectfully submitted,
__________________________
Amy Van, City Clerk
ITEM 4 Agenda Packet Page 10
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CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: February 22, 2024
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Susan K. Talwar, Administrative Services Director Alberto Preciado, Finance Manager

SUBJECT: Quarterly Treasurer’s Report

Summary and Recommendation
Staff recommends the City Council receive and file the Quarterly Treasurer’s Report for the quarter ending December 31, 2023. 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
There is no fiscal impact associated with this action. The attached report is for informational purposes on the effects of current market conditions on the City’s investment portfolio.

Background and Analysis
The market value of cash and investments for all City funds on December 31, 2023, was $52,161,978, up from $51,789,270 on September 30, 2023. The increase is nominal and the result of City operations and higher than average grant reimbursements from CalTrans.

Significant deposits for the FY23-24 second quarter included:

Sales Tax received through December 31, 2023 $3,455,996 CalTrans Grant Reimbursements received through December 31, 2023 $2,800,418 Measure A revenues received through December 31, 2023 $834,968 The breakdown of the City’s investment portfolio and current rate of return is as follows:

ITEM 5 Agenda Packet Page 11
Subject: Quarterly Treasurer’s Report
Date: February 22, 2024

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Description Par Value
12/31/23
Cost Basis
12/31/23
Market
Value
12/31/23
Avg. Rate
of Return
12/31/23
% of
Total
Portfolio
Local Agency Investment Funds (LAIF) $39,455,365 $39,455,365 $39,200,607 3.93% 75.15% US Bank – General Account & Schwab $2,703,010 $2,703,010 $2,703,010 0.00% 5.18% Chandler Managed Account $10,335,184 $10,248,561 $10,258,361 4.66% 19.67% Total Portfolio $52,493,560 $52,406,937 $52,161,978 3.87% A portion of the City’s investments are under management by Chandler Asset Management as of March 2023. For more information regarding the City’s investments, see schedules included as an attachment.

The report includes all securities managed by the City and its Investment Manager (excluding bond proceeds) and provides information on the values (par, fair, and cost), term, and yield of each security. Please note that because the safe-keeping custodian and the Investment Manager may use different pricing sources to determine the market value of the securities, there can be minor differences in market values shown on the custodian’s monthly statement as compared to the Investment Manager’s monthly statement.

Fair Value of individual securities has been provided by Chandler Asset Management. The City uses US Bank as its third-party custodian for safekeeping of all investments except for the Local Agency Investment Fund (LAIF). LAIF is a money market fund administered by the State Treasurer that has many governmental agency participants and holds securities through its own administrator.

The value of fixed-income securities may fluctuate with changes in interest rates. As interest rates go up, the market value of the securities may go down, and the reverse is true; when interest rates go down, the market value of the securities may go up. The difference between the book and fair market value is considered an unrealized gain or loss. The unrealized gain for this reporting period is $9,800. It is important to note that a loss or gain is realized when an investment is redeemed or sold before its maturity date. The City’s investments are typically retained until the maturity date, at which point the City’s full investment is returned.

Nonetheless, the City may elect to sell an investment before its maturity and record a capital gain or loss to manage the portfolio’s quality, liquidity or yield in response to market conditions or the City’s risk preferences.

Compliance
All investment transactions were executed in accordance with the California Government Code and the City’s Investment Policy. In accordance with California Government Code section 53646(b)(3), staff believes that the investments and budgeted revenues for the City will provide sufficient cash flow to meet the anticipated cash flow requirements of each entity for the next six months.

Pooled cash and investments book balances are adjusted annually to reflect fair value as required by Generally Accepted Accounting Principles (GAAP). The term fair value was formerly known as market value and became effective with the mandatory implementation of the Governmental ITEM 5 Agenda Packet Page 12
Subject: Quarterly Treasurer’s Report
Date: February 22, 2024

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Accounting Standards Board (GASB) Statement No. 31 in fiscal year 1998. The attached investment schedules meet these requirements.

American Rescue Plan Act Summary
Included in the City’s investment portfolio are the uncommitted American Rescue Plan Act (ARPA) funds at $1,629,632 through December 31, 2023. The amount committed by Council through the same date is $14,047,340.

Amount received from US Treasury in May 2021 & 2022 $15,676,972 Expended Amount through December 31, 2023 $6,702,547
Committed Amount through December 31, 2023 $14,047,340
Remaining Uncommitted Amount through December 31, 2023 $1,629,632 Committed and proposed allocations through February 7, 2024 $0 Tentative Remaining Uncommitted Amount through December 31, 2023
$1,629,632
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 $2,541,434
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 $320,000
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 – Community Engagement+ $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 for Sunrise Tomorrow+ $40,000
1/26/23 Patriotic Event+ $80,000
2/23/23 CH Cares Community Beautification+ $47,000
3/23/23 Business Attraction Incentive Program+ $1,000,000 4/27/23 Sound Wall Beautification+ $155,000
ITEM 5 Agenda Packet Page 13
Subject: Quarterly Treasurer’s Report
Date: February 22, 2024

Printed on Recycled Paper
5/11/23 Proposed Grant Strategy+ $60,000
6/8/23 Community Project Grant Round 2*+ $22,400
7/1/23 Rehire Public Safety staff to pre-pandemic levels FY 23/24 $2,396,381
7/1/23 Fleet Replacement FY23/24 $400,000
Committed Amount through December 31, 2023 $14,047,340
+ City Council Strategic Objective
* Dependent on successful award of grant
Attachments

1. Chandler Asset Management Portfolio Summary, Statement of Compliance, and Holdings Report
ITEM 5 Agenda Packet Page 14

ACCOUNT SUMMARY
Beg. Values
as of 11/30/23
End Values
as of 12/31/23
Market Value 10,131,421 10,258,330
Accrued Interest 80,331 71,567
Total Market Value 10,211,752 10,329,897
Income Earned 39,073 39,741
Cont/WD -930
Par 10,298,821 10,335,153
Book Value 10,200,955 10,248,530
Cost Value 10,159,343 10,206,392

TOP ISSUERS
Government of United States 44.3%
Federal Home Loan Bank 8.4%
Federal Farm Credit Bank 8.1%
Federal Home Loan Mortgage Corp 5.4%
MUFG Bank Ltd/NY 2.4%
John Deere ABS 2.0%
Toyota ABS 1.9%
American Express ABS 1.7%
Total 74.2%

PORTFOLIO CHARACTERISTICS
Average Modified Duration 1.74
Average Coupon 3.98%
Average Purchase YTM 4.66%
Average Market YTM 4.60%
Average S&P/Moody Rating AA/Aa1
Average Final Maturity 2.13 yrs
Average Life 1.86 yrs

SECTOR ALLOCATION MATURITY DISTRIBUTION CREDIT QUALITY (S&P) Portfolio Summary
As of December 31, 2023
City of Citrus Heights
Account #11026

PERFORMANCE REVIEW
Annualized
TOTAL RATE OF RETURN 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS 3/31/2023 City of Citrus Heights 1.16% 2.64% N/A N/A N/A N/A N/A N/A N/A ICE BofA 1-3 Yr US Treasury & Agency Index 1.12% 2.49% N/A N/A N/A N/A N/A N/A N/A Chandler Asset Management - CONFIDENTIAL Page 1 Execution Time: 1/4/2024 1:37:00 AM ITEM 5 Agenda Packet Page 15
Compliance As of December 31, 2023
Category Standard Comment
U.S. Treasuries No limit; 5 years max maturity Complies Federal Agencies 30% max per Agency/GSE issuer; 20% max agency callable securities; 5 years max maturity Complies Supranational Obligations "AA" rating category or higher by a NRSRO; 30% max; 10% max per issuer; 5 years max maturity; USD denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by IBRD, IFC, or IADB Complies Municipal Securities (CA, Other States) "A" rating category or better by a NRSRO; 30% max; 5% max per issuer; 5 years max maturity Complies Corporate Medium Term Notes
"A" rating category or better by a NRSRO; 30% max; 5% max per issuer; 5 years max maturity; Issued by corporations organized and operating within the U.S. or by depository institutions licensed by the U.S. or any state and operating within the U.S.

Complies
Asset-Backed, Mortgage-Backed,
Mortgage Pass-Through Securities, and
Collateralized Mortgage Obligations
"AA" rating category or better by a NRSRO; 20% max (combined); 5% max per Asset-Backed or Commercial Mortgage security issuer; 5 years max maturity; From issuers not defined in US Treasuries and Federal Agencies sections of the Authorized Investments section of the policy
Complies
Negotiable Certificates of Deposit (NCD)
The amount of NCD insured up to the FDIC limit does not require any credit ratings; Any amount above FDIC insured limit must be issued by institutions with "A-1" short-term debt rating or better by a NRSRO; or "A" long-term rating category or better by a NRSRO; 30% max; 5% max per issuer; 5 years max maturity Complies
Non-Negotiable Certificates of Deposit 20% max; 5 years max maturity Complies Collateralized Bank Deposits No Limit; Deposits with financial institutions will be collateralized with pledged securities per California Government Code Complies
Banker’s Acceptances A-1 short-term debt rated or better by a NRSRO; or "A" long-term debt rating category or better by a NRSRO; 40% max; 5% max per issuer; 180 days max maturity Complies
Commercial Paper
25% max; 5% max per issuer; 270 days maturity; 10% max of the outstanding commercial paper of any single issuer; Issued by an entity that meets all of the following conditions in either (a) or (b): a. (i) organized and operating within the U.S. with assets > $500 million; (ii) "A-1" rated or better by a NRSRO; (iii) "A" rating or better by a NRSRO, if issuer has debt obligations; b. (i) organized within the U.S. as a special purpose corporation, trust, or limited liability company; (ii) must have program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond; (iii) rated "A-1" or better by a NRSRO Complies
Money Market Mutual Funds
20% max combined Money Market Mutual Funds and Mutual Funds; 20% max per MMMF; Meet either of the following criteria: (i) Attained highest rating by two NRSROs; or (ii) Retained an investment adviser registered or exempt from SEC registration with > 5 years experience managing MMMF with AUM >$500 million Complies
Mutual Funds
20% max combined Money Market Mutual Funds and Mutual Funds; 10% max per MF; Meet either of the following criteria: (i) Attained highest rating by two NRSROs; or (ii) Retained an investment adviser registered or exempt from SEC registration with > 5 years experience investing in securities authorized by CGC & with AUM >$500 million Complies
City of Citrus Heights
Assets managed by Chandler Asset Management are in full compliance with state law and the Client's investment policy. 16 ITEM 5 Agenda Packet Page 16
Compliance As of December 31, 2023
Category Standard Comment
Local Agency Investment Fund (LAIF) Maximum amount permitted by LAIF; Not used by investment adviser Complies Local Government Investment Pools
Issued by joint powers authority; Have retained an investment adviser that meets all of the following criteria: 1) registered or exempt form SEC Registration, 2) >5years experience, 3) has AUM >$500 million; Not used by investment adviser
Complies
Repurchase Agreements 1 year max maturity; 102% Collateralized; Not used by investment adviser Complies Max Per Issuer 5% max per issuer unless otherwise specified in the policy Complies Duration Approximately equal to the duration (typically +/-20%) of market benchmark selected by the City Complies Maximum Maturity 5 years max maturity, except as otherwise stated in the policy Complies City of Citrus Heights
Assets managed by Chandler Asset Management are in full compliance with state law and the Client's investment policy. 17 ITEM 5 Agenda Packet Page 17
Holdings Report
City of Citrus Heights - Account #11026
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
ABS
448979AD6 Hyundai Auto Receivables Trust 2023-A A3

4.580% Due 04/15/2027
50,000.00 04/04/2023

4.63%
49,995.12
49,996.40

99.44 5.00%
49,719.25
101.78

0.48%
(277.15)

NR / AAA
AAA

3.29 1.50
47800CAC0 John Deere Owner Trust 2023-A A3

5.010% Due 11/15/2027
100,000.00 04/17/2023

4.60%
101,019.53
100,862.73
100.19

4.95%
100,189.31
222.67

0.97%
(673.42)
Aaa / NR
AAA

3.88 1.66
891941AD8 Toyota Auto Receivables Owner 2023-B A3

4.710% Due 02/15/2028
200,000.00 10/03/2023

5.74%
196,039.06
196,345.62

99.85 4.84%
199,693.20
418.67

1.94%
3,347.58
Aaa / NR
AAA

4.13 1.88
362583AD8 GM Auto Receivable Trust 2023-2 A3

4.470% Due 02/16/2028
35,000.00 04/04/2023

4.51%
34,999.04
34,999.25

99.36 4.90%
34,774.81

65.19 0.34%
(224.44)
Aaa / AAA
NR

4.13 1.68
05522RDF2 Bank of America Credit Card Tr 2022-A2 A2

5.000% Due 04/15/2028
100,000.00 04/18/2023

4.59%
101,093.75
100,795.88
100.58

4.72%
100,577.00
222.22

0.98%
(218.88)
Aaa / AAA
NR

4.29 1.74
47787CAC7 John Deere Owner Trust 2023-C A3

5.480% Due 05/15/2028
100,000.00 09/12/2023

5.55%
99,993.13
99,993.68
101.55

4.78%
101,552.20
243.56

0.99%
1,558.52
Aaa / NR
AAA

4.38 2.03
438123AC5 Honda Auto Receivables OT 2023-4 A3

5.670% Due 06/21/2028
150,000.00 12/07/2023

5.09%
152,244.14
152,207.55
102.09

3.84%
153,134.25
236.25

1.48%
926.70
Aaa / NR
AAA

4.48 1.09
161571HT4 Chase Issuance Trust 23-A1 A

5.160% Due 09/15/2028
110,000.00 09/07/2023

5.23%
109,969.51
109,972.51
101.55

4.59%
111,701.26
252.27

1.08%
1,728.75

NR / AAA
AAA

4.71 2.46
02582JKD1 American Express Credit Trust 2023-3 A

5.230% Due 09/15/2028
175,000.00 09/12/2023

5.29%
174,992.18
174,992.92
101.62

4.64%
177,828.00
406.78

1.73%
2,835.08

NR / AAA
AAA

4.71 2.46
TOTAL ABS 1,020,000.00 5.17%
1,020,345.46
1,020,166.54 4.63%
1,029,169.28
2,169.39

9.98%
9,002.74
Aaa / AAA
AAA

4.32 1.88
Agency
3130AV7L0 FHLB Note

5.000% Due 02/28/2025
250,000.00 03/23/2023

4.16%
253,867.50
252,319.41
100.37

4.67%
250,917.50
4,270.83

2.47%
(1,401.91)
Aaa / AA+
NR

1.16 1.10
3130AWER7 FHLB Note

4.625% Due 06/06/2025
200,000.00 06/09/2023

4.67%
199,834.00
199,880.48
100.56

4.22%
201,116.00
642.36

1.95%
1,235.52
Aaa / AA+
NR

1.43 1.37
3133EPCR4 FFCB Note

4.750% Due 03/09/2026
375,000.00 Various

3.99%
382,886.25
380,819.92
101.18

4.18%
379,423.88
5,541.66

3.73%
(1,396.04)
Aaa / AA+
AA+

2.19 2.03
3133EPHH1 FFCB Note

4.000% Due 04/28/2026
200,000.00 05/15/2023

3.85%
200,814.00
200,640.33

99.59 4.18%
199,186.80
1,400.00

1.94%
(1,453.53)
Aaa / AA+
AA+

2.33 2.18
3133EPNG6 FFCB Note

4.375% Due 06/23/2026
250,000.00 06/22/2023

4.43%
249,630.00
249,694.82
100.44

4.18%
251,110.50
243.06

2.43%
1,415.68
Aaa / AA+
AA+

2.48 2.32
3130AXU63 Federal Home Loan Banks Note

4.625% Due 11/17/2026
200,000.00 12/18/2023

4.23%
202,130.00
202,103.98
101.41

4.10%
202,823.80
1,130.56

1.97%
719.82
Aaa / AA+
NR

2.88 2.66
As of December 31, 2023
26 ITEM 5 Agenda Packet Page 18
Holdings Report
City of Citrus Heights - Account #11026
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
3130ATUS4 FHLB Note

4.250% Due 12/10/2027
200,000.00 05/15/2023

3.66%
204,924.00
204,245.44
101.03

3.96%
202,058.40
495.83

1.96%
(2,187.04)
Aaa / AA+
NR

3.95 3.59
TOTAL Agency 1,675,000.00 4.13%
1,694,085.75
1,689,704.38 4.22%
1,686,636.88
13,724.30

16.46%
(3,067.50)
Aaa / AA+
AA+

2.30 2.14
CMO
3137BVZ82 FHLMC K063

3.430% Due 01/25/2027
150,000.00 06/07/2023

4.55%
144,544.92
145,381.94

97.17 4.42%
145,759.35
428.75

1.42%
377.41

NR / NR
AAA

3.07 2.72
3137FBBX3 FHLMC K068 A2

3.244% Due 08/25/2027
100,000.00 06/08/2023

4.38%
95,808.59
96,369.30

96.15 4.39%
96,146.70
270.33

0.93%
(222.60)
Aaa / NR
NR

3.65 3.31
3137FBU79 FHLMC K069 A2

3.187% Due 09/25/2027
150,000.00 06/09/2023

4.98%
142,980.47
143,882.60

95.94 4.38%
143,910.60
398.38

1.40%

28.00 NR / AAA
NR

3.74 3.33
3137FETN0 FHLMC K073 A2

3.350% Due 01/25/2028
75,000.00 05/24/2023

4.34%
72,082.03
72,452.57

96.17 4.38%
72,129.00

41.88 0.70%
(323.57)

NR / NR
AAA

4.07 3.64
3137FG6X8 FHLMC K077 A2

3.850% Due 05/25/2028
100,000.00 05/24/2023

4.65%
98,164.06
98,381.71

97.89 4.36%
97,893.50

64.17 0.95%
(488.21)

NR / NR
AAA

4.40 3.89
TOTAL CMO 575,000.00 4.62%
553,580.07
556,468.12 4.39%
555,839.15
1,203.51

5.39%
(628.97)
Aaa / AAA
AAA

3.71 3.31
Commercial Paper
62479LBC8 MUFG Bank Ltd Discount CP

5.530% Due 02/12/2024
250,000.00 06/12/2023

5.78%
240,591.32
248,387.08

99.35 5.78%
248,387.08

0.00 2.40%

0.00 P-1 / A-1
NR

0.12 0.11
TOTAL Commercial Paper 250,000.00 5.78%
240,591.32
248,387.08 5.78%
248,387.08

0.00 2.40%

0.00 P-1 / A-1
NR

0.12 0.11
Corporate
61761JVL0 Morgan Stanley Note

3.700% Due 10/23/2024
150,000.00 06/28/2023

5.57%
146,488.50
147,839.08

98.71 5.34%
148,062.75
1,048.33

1.44%
223.67
A1 / AA+0.81

0.78 89115A2A9 Toronto-Dominion Bank Note

3.766% Due 06/06/2025
150,000.00 Various

5.41%
145,459.00
146,697.57

98.39 4.95%
147,580.65
392.29

1.43%
883.08
A1 / A
NR

1.43 1.37
89236TKF1 Toyota Motor Credit Corp Note

3.650% Due 08/18/2025
125,000.00 06/12/2023

4.94%
121,710.00
122,540.77

98.36 4.71%
122,947.25
1,685.59

1.21%
406.48
A1 / A+
A+

1.63 1.54
46647PDM5 JP Morgan Chase & Co Callable Note Cont 12/15/2024

5.546% Due 12/15/2025
100,000.00 06/12/2023

6.01%
99,855.00
99,886.85
100.06

5.46%
100,063.70
246.49

0.97%
176.85
A1 / AAA1.96

0.92 As of December 31, 2023
27 ITEM 5 Agenda Packet Page 19
Holdings Report
City of Citrus Heights - Account #11026
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
24422EWP0 John Deere Capital Corp Note

4.800% Due 01/09/2026
35,000.00 03/17/2023

4.44%
35,322.35
35,232.41
100.53

4.52%
35,185.89
802.67

0.35%
(46.52)
A2 / A
A+

2.03 1.87
78016FZT4 Royal Bank of Canada Note

4.875% Due 01/12/2026
150,000.00 06/28/2023

5.25%
148,672.50
148,937.43
100.25

4.75%
150,368.25
3,432.81

1.49%
1,430.82
A1 / A
AA2.041.87
756109BQ6 Realty Income Corp Callable Note cont 1/13/2024

5.050% Due 01/13/2026
100,000.00 06/12/2023

5.49%
98,941.00
99,166.49

99.92 5.09%
99,917.00
2,356.67

0.99%
750.51
A3 / ANR2.04

1.87 037833BY5 Apple Inc Callable Note Cont 11/23/2025

3.250% Due 02/23/2026
125,000.00 03/23/2023

4.10%
122,103.75
122,865.92

97.57 4.45%
121,958.63
1,444.44

1.19%
(907.29)
Aaa / AA+
NR

2.15 2.02
00440EAV9 Chubb INA Holdings Inc Callable Note Cont 2/3/2026

3.350% Due 05/03/2026
125,000.00 10/19/2023

5.85%
117,758.75
118,307.92

97.29 4.58%
121,606.25
674.65

1.18%
3,298.33
A3 / A
A

2.34 2.21
341081GR2 Florida Power and Light Callable Note Cont 4/15/2026

4.450% Due 05/15/2026
125,000.00 05/18/2023

4.65%
124,325.00
124,463.84
100.09

4.40%
125,107.63
710.76

1.22%
643.79
A1 / A
A+

2.37 2.15
14913UAA8 Caterpillar Financial Services Note

4.350% Due 05/15/2026
100,000.00 06/12/2023

4.71%
99,031.00
99,213.71

99.79 4.44%
99,787.10
555.83

0.97%
573.39
A2 / A
A+

2.37 2.22
24422EWX3 John Deere Capital Corp Note

4.750% Due 06/08/2026
100,000.00 06/05/2023

4.72%
100,094.00
100,076.25
100.67

4.45%
100,671.10
303.47

0.98%
594.85
A2 / A
A+

2.44 2.27
69371RS56 Paccar Financial Corp Note

5.050% Due 08/10/2026
75,000.00 08/03/2023

5.07%
74,962.50
74,967.43
101.40

4.47%
76,053.30
1,483.44

0.75%
1,085.87
A1 / A+
NR

2.61 2.38
26442CAS3 Duke Energy Carolinas Callable Note Cont 9/1/2026

2.950% Due 12/01/2026
100,000.00 04/10/2023

4.43%
95,073.00
96,051.73

96.53 4.23%
96,528.80
245.83

0.94%
477.07
Aa3 / A
NR

2.92 2.75
06051GLE7 Bank of America Corp Callable Note 2X 1/20/2026

5.080% Due 01/20/2027
100,000.00 Various

5.90%
98,714.80
98,936.54

99.78 5.19%
99,779.70
2,271.89

0.99%
843.16
A1 / AAA3.06

1.89 06406RBQ9 Bank of NY Mellon Corp Callable Note Cont 4/26/2026

4.947% Due 04/26/2027
110,000.00 Various

5.29%
109,476.40
109,544.84
100.03

4.92%
110,032.78
982.53

1.07%
487.94
A1 / A
AA3.322.15
91324PEG3 United Health Group Inc Callable Note Cont 4/15/2027

3.700% Due 05/15/2027
100,000.00 03/23/2023

4.28%
97,802.00
98,209.58

97.93 4.37%
97,927.10
472.78

0.95%
(282.48)
A2 / A+
A

3.37 3.12
74456QBS4 Public Service El & Gas Callable Note Cont 2/15/2027

3.000% Due 05/15/2027
75,000.00 04/18/2023

4.48%
70,921.50
71,624.12

95.13 4.57%
71,347.12
287.50

0.69%
(277.00)
A1 / A
NR

3.37 3.14
As of December 31, 2023
28 ITEM 5 Agenda Packet Page 20
Holdings Report
City of Citrus Heights - Account #11026
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
22160KAM7 Costco Wholesale Corp Callable Note Cont 2/18/2027

3.000% Due 05/18/2027
40,000.00 03/17/2023

4.28%
38,067.20
38,431.11

96.29 4.19%
38,515.48
143.33

0.37%

84.37 Aa3 / A+
NR

3.38 3.16
06368LAQ9 Bank of Montreal Callable Note Cont 8/14/2027

4.700% Due 09/14/2027
125,000.00 11/14/2023

5.56%
121,346.25
121,466.47
100.27

4.61%
125,335.25
1,746.18

1.23%
3,868.78
A2 / AAA3.71

3.25 TOTAL Corporate 2,110,000.00 5.09%
2,066,124.50
2,074,460.06 4.73%
2,088,775.73
21,287.48

20.43%
14,315.67
A1 / A
A+

2.37 2.06
Money Market Fund
31846V203 First American Govt Obligation Fund Class Y 105,153.07 Various

4.98%
105,153.07
105,153.07

1.00 4.98%
105,153.07

0.00 1.02%

0.00 Aaa / AAA
AAA

0.00 0.00
TOTAL Money Market Fund 105,153.07 4.98%
105,153.07
105,153.07 4.98%
105,153.07

0.00 1.02%

0.00 Aaa / AAA
AAA

0.00 0.00
US Treasury
9128286G0 US Treasury Note

2.375% Due 02/29/2024
250,000.00 06/28/2023

5.38%
245,107.42
248,821.79

99.53 5.22%
248,822.50
2,006.35

2.43%

0.71 Aaa / AA+
AA+

0.16 0.16
91282CEG2 US Treasury Note

2.250% Due 03/31/2024
250,000.00 04/12/2023

4.68%
244,335.94
248,555.91

99.25 5.26%
248,134.75
1,429.30

2.42%
(421.16)
Aaa / AA+
AA+

0.25 0.25
91282CEK3 US Treasury Note

2.500% Due 04/30/2024
250,000.00 06/28/2023

5.41%
244,111.33
247,690.72

99.09 5.28%
247,714.75
1,064.56

2.41%

24.03 Aaa / AA+
AA+

0.33 0.33
91282CEX5 US Treasury Note

3.000% Due 06/30/2024
250,000.00 06/12/2023

5.22%
244,404.30
247,355.56

98.95 5.15%
247,382.75

20.60 2.40%

27.19 Aaa / AA+
AA+

0.50 0.49
91282CFA4 US Treasury Note

3.000% Due 07/31/2024
250,000.00 06/12/2023

5.16%
244,130.86
246,994.55

98.82 5.07%
247,050.75
3,138.59

2.42%

56.20 Aaa / AA+
AA+

0.58 0.56
91282CFG1 US Treasury Note

3.250% Due 08/31/2024
200,000.00 06/28/2023

5.27%
195,453.13
197,424.50

98.82 5.08%
197,632.80
2,196.43

1.93%
208.30
Aaa / AA+
AA+

0.67 0.64
91282CFN6 US Treasury Note

4.250% Due 09/30/2024
250,000.00 04/12/2023

4.33%
249,707.03
249,850.78

99.49 4.95%
248,720.75
2,699.80

2.43%
(1,130.03)
Aaa / AA+
AA+

0.75 0.72
91282CGD7 US Treasury Note

4.250% Due 12/31/2024
250,000.00 05/18/2023

4.48%
249,111.33
249,452.09

99.47 4.80%
248,665.75

29.19 2.41%
(786.34)
Aaa / AA+
AA+

1.00 0.97
91282CGN5 US Treasury Note

4.625% Due 02/28/2025
250,000.00 04/12/2023

4.07%
252,460.94
251,518.83

99.94 4.67%
249,853.50
3,907.11

2.46%
(1,665.33)
Aaa / AA+
AA+

1.16 1.11
91282CGX3 US Treasury Note

3.875% Due 04/30/2025
250,000.00 06/08/2023

4.55%
246,962.89
247,868.31

99.10 4.57%
247,754.00
1,650.07

2.41%
(114.31)
Aaa / AA+
AA+

1.33 1.27
As of December 31, 2023
29 ITEM 5 Agenda Packet Page 21
Holdings Report
City of Citrus Heights - Account #11026
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
91282CEU1 US Treasury Note

2.875% Due 06/15/2025
250,000.00 05/18/2023

4.19%
243,544.92
245,478.04

97.73 4.50%
244,336.00
333.85

2.37%
(1,142.04)
Aaa / AA+
AA+

1.46 1.40
91282CFK2 US Treasury Note

3.500% Due 09/15/2025
250,000.00 06/08/2023

4.35%
245,439.45
246,572.71

98.53 4.40%
246,318.25
2,596.15

2.41%
(254.46)
Aaa / AA+
AA+

1.71 1.62
91282CFW6 US Treasury Note

4.500% Due 11/15/2025
250,000.00 05/18/2023

4.05%
252,646.48
251,987.04
100.34

4.31%
250,839.75
1,452.61

2.44%
(1,147.29)
Aaa / AA+
AA+

1.88 1.77
91282CGL9 US Treasury Note

4.000% Due 02/15/2026
250,000.00 06/08/2023

4.22%
248,613.28
248,904.18

99.54 4.23%
248,857.50
3,777.17

2.45%
(46.68)
Aaa / AA+
AA+

2.13 1.99
91282CGV7 US Treasury Note

3.750% Due 04/15/2026
250,000.00 04/12/2023

3.75%
250,029.30
250,022.36

99.07 4.18%
247,675.75
1,997.95

2.42%
(2,346.61)
Aaa / AA+
AA+

2.29 2.15
91282CHB0 US Treasury Note

3.625% Due 05/15/2026
250,000.00 06/08/2023

4.15%
246,435.55
247,121.15

98.84 4.14%
247,099.50
1,170.16

2.40%
(21.65)
Aaa / AA+
AA+

2.37 2.24
91282CJC6 US Treasury Note

4.625% Due 10/15/2026
150,000.00 10/19/2023

5.05%
148,265.63
148,381.68
101.48

4.05%
152,226.60
1,478.48

1.49%
3,844.92
Aaa / AA+
AA+

2.79 2.57
912828U24 US Treasury Note

2.000% Due 11/15/2026
250,000.00 05/18/2023

3.83%
235,195.31
237,829.06

94.54 4.03%
236,347.75
645.60

2.29%
(1,481.31)
Aaa / AA+
AA+

2.88 2.74
91282CEF4 US Treasury Note

2.500% Due 03/31/2027
250,000.00 03/24/2023

3.52%
240,556.64
242,361.51

95.57 3.96%
238,935.50
1,588.11

2.33%
(3,426.01)
Aaa / AA+
AA+

3.25 3.06
TOTAL US Treasury 4,600,000.00 4.49%
4,526,511.73
4,554,190.77 4.63%
4,544,368.90
33,182.08

44.31%
(9,821.87)
Aaa / AA+
AA+

1.42 1.35
TOTAL PORTFOLIO 10,335,153.07 4.66%
10,206,391.90
10,248,530.02 4.60%
10,258,330.09
71,566.76
100.00%
9,800.07
Aa1 / AA
AA+

2.13 1.74
TOTAL MARKET VALUE PLUS ACCRUALS 10,329,896.85
As of December 31, 2023
30 ITEM 5 Agenda Packet Page 22
Printed on Recycled Paper

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: February 22, 2024
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Susan K. Talwar, Administrative Services Director Alberto Preciado, Finance Manager

SUBJECT: Annual Comprehensive Financial Report

Summary and Recommendation
Staff recommends the City Council receive and file the City of Citrus Heights Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2023, the City of Citrus Heights Popular Annual Financial Report for the Fiscal Year Ended June 30, 2023, the Audit Communication Letter, and the Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters.

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, 2023. 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:
• Property Tax Revenue of $7 million, representing the City’s first distribution of property tax following the expiration of the 25-year revenue neutrality agreement with the County of Sacramento;
• An increase of Sales Tax Revenue of $130,000;
• An increase in State Vehicle In-Lieu tax of $825,000; ITEM 6 Agenda Packet Page 23
Subject: Annual Comprehensive Financial Report
Date: February 22, 2024

Printed on Recycled Paper
• Higher than expected revenues in investment revenue and building, planning, and engineering fees received;
• Savings in the General Fund of approximately $3 million due primarily to salary savings and lower than anticipated operating expenses;
• An increase in the General Fund balance of approximately $12 million.

The format of the ACFR remains largely unchanged except for:
• A change in accounting standards for the Governmental Accounting Standards Board (GASB) Statement No. 96 changed how the City records and reports its software subscriptions in a manner similar to the lease accounting rules enacted in Fiscal Year 2021-2022.

The City has also completed its third 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, 2023 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 2022 ACFR and its 2022 PAFR, and the 2023 reports have been submitted for consideration of the awards.

Communications from LSL
The City’s audit firm, LSL is required by auditing standards to provide communication to the Council in the form of an Audit Communication Letter and an Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters.

The purpose of the Audit Communication Letter (Attachment 3) is to communicate significant audit matters (if any) to the City Council. No significant audit matters were identified as a result of the audit procedures.

The purpose of the Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters is to communicate any deficiencies in internal control or instances of noncompliance with certain provisions of laws, regulations, contracts, and grant agreements. LSL reports that they did not identify any deficiencies in internal control or instances of noncompliance.

Attachment

1. City of Citrus Heights Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2023.

ITEM 6 Agenda Packet Page 24
Subject: Annual Comprehensive Financial Report
Date: February 22, 2024

Printed on Recycled Paper

2. City of Citrus Heights Popular Annual Financial Report for the Fiscal Year Ended June 30, 2023.

3. Audit Communication Letter.

4. Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters.

ITEM 6 Agenda Packet Page 25
Prepared By:

Finance,
A Division of the
Administrative Services
Department
Citrus HeightT,
California
Annual
Comprehensive
Financial Report
For the Fiscal Year
Ended
June 30, 2023
ITEM 6 Agenda Packet Page 26
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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, 2022
Executive Director/CEO
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